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 811-2720
Fidelity Municipal Trust
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Eric D. Roiter, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | December 31 |
Date of reporting period: | December 31, 2004 |
Item 1. Reports to Stockholders
Spartan®
Michigan Municipal Income
Fund
and
Fidelity®
Michigan Municipal Money
Market Fund
Annual Report
December 31, 2004
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Spartan 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, | |
Fidelity Michigan Municipal Money Market Fund | ||
Investment Changes | A summary of major shifts in the fund's investments over the past six months and one year. | |
Investments | A complete list of the fund's investments. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the Financial Statements | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
Proxy Voting Results |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Spartan Michigan Municipal Income Fund
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. 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. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2004 | Past 1 | Past 5 | Past 10 |
Spartan MI Municipal Income Fund | 3.90% | 7.06% | 6.54% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Spartan® Michigan Municipal Income Fund on December 31, 1994. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Spartan Michigan Municipal Income Fund
Comments from Doug McGinley, Portfolio Manager of Spartan® Michigan Municipal Income Fund
Despite persistent inflation concerns and the Federal Reserve Board raising interest rates multiple times in the second half of the year, the municipal bond market registered positive performance for the year ending December 31, 2004. In that time, the Lehman Brothers® Municipal Bond Index rose 4.48%. In comparison, the Lehman Brothers Aggregate Bond Index - a proxy of the overall investment-grade taxable debt market - returned 4.34%. This marks the second consecutive year in which tax-free munis outperformed taxable bonds on an absolute basis. Demand for munis generally was strong in 2004, except for a rough patch in the spring when strong labor markets fueled expectations of rising inflation. Shortly thereafter, the Fed began a series of five 0.25 percentage-point interest rate hikes between June 30 and December 14. While munis typically don't react well to such actions, they responded with positive returns in each of the year's final six months, partly due to reassurances by the Fed that it intended to raise rates in a "measured fashion."
The fund was up 3.90% during the past year, while the LipperSM Michigan Municipal Debt Funds Average rose 3.30% and the Lehman Brothers Michigan Enhanced Municipal Bond Index returned 4.13%. Michigan munis performed in line with most state muni markets, although continued low interest rates muted bond returns during the past year. Likely aiding the fund's outperformance of its Lipper peer group average was its large weighting in health care bonds, as well as security selection within that group. Health care bonds were helped by the ability of many Michigan hospitals to pass along price increases and enjoy decent reimbursement payments. In terms of security selection, Fidelity's credit analysis was valuable in positioning the fund in some of the better-performing hospitals and avoiding those that suffered the most. Also contributing to performance was the prerefunding of some of the fund's holdings, a process that generally boosted the prices of these securities. In addition, I continued to avoid positioning the fund to benefit from a specific interest rate outlook during the period, a strategy that helped performance given the volatility that characterized the past 12 months. In contrast, my decision to limit the fund's stake in lower-quality investment-grade muni bonds detracted from performance, as they generally outpaced higher-quality securities due to strong demand and improving business prospects for many of the sectors that dominate the group.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2004 to December 31, 2004).
Actual Expenses
The first line of the table below for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below 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.
Annual Report
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.
Beginning | Ending | Expenses Paid | |
Spartan Michigan Municipal Income Fund | |||
Actual | $ 1,000.00 | $ 1,048.40 | $ 2.52 |
HypotheticalA | $ 1,000.00 | $ 1,022.67 | $ 2.49 |
Fidelity Michigan Municipal Money Market Fund | |||
Actual | $ 1,000.00 | $ 1,004.70 | $ 2.82 |
HypotheticalA | $ 1,000.00 | $ 1,022.32 | $ 2.85 |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Annualized | |
Spartan Michigan Municipal Income Fund | .49% |
Fidelity Michigan Municipal Money Market Fund | .56% |
Annual Report
Spartan Michigan Municipal Income Fund
Investment Changes
Top Five Sectors as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
General Obligations | 50.7 | 49.2 |
Water & Sewer | 11.6 | 11.1 |
Escrowed/Pre-Refunded | 10.4 | 10.3 |
Health Care | 8.6 | 9.1 |
Special Tax | 5.7 | 5.7 |
Average Years to Maturity as of December 31, 2004 | ||
6 months ago | ||
Years | 12.2 | 12.5 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2004 | ||
6 months ago | ||
Years | 6.5 | 7.0 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2004 | As of June 30, 2004 | ||||||
![]() | AAA 65.9% | ![]() | AAA 68.7% | ||||
![]() | AA,A 31.0% | ![]() | AA,A 28.5% | ||||
![]() | BBB 0.9% | ![]() | BBB 1.0% | ||||
![]() | Not Rated 0.2% | ![]() | Not Rated 0.0% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
Annual Report
Spartan Michigan Municipal Income Fund
Investments December 31, 2004
Showing Percentage of Net Assets
Municipal Bonds - 98.0% | |||
Principal | Value | ||
Michigan - 97.1% | |||
Anchor Bay School District 2000 School Bldg. & Site Series III, 5.25% 5/1/31 | $ 9,300,000 | $ 9,723,894 | |
Ann Arbor Econ. Dev. Corp. Ltd. Oblig. Rev. (Glacier Hills, Inc. Proj.) 8.375% 1/15/19 (Escrowed to Maturity) (d) | 3,106,000 | 4,121,289 | |
Bay City Gen. Oblig. 0% 6/1/15 (AMBAC Insured) | 1,725,000 | 1,121,595 | |
Birmingham County School District Series II, 5.25% 11/1/19 | 1,200,000 | 1,307,712 | |
Brighton Area School District Livingston County Series II, 0% 5/1/15 (AMBAC Insured) | 10,000,000 | 6,524,500 | |
Byron Ctr. Pub. Schools 5.5% 5/1/16 | 1,055,000 | 1,174,563 | |
Caladonia Cmnty. Schools Counties of Kent, Allegan and Barry: | |||
5.25% 5/1/17 | 1,370,000 | 1,516,700 | |
5.25% 5/1/18 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,100,000 | 1,212,827 | |
5.5% 5/1/26 (FGIC Insured) | 3,000,000 | 3,238,980 | |
Carman-Ainsworth Cmnty. School District: | |||
5.5% 5/1/14 (FGIC Insured) | 1,755,000 | 1,989,591 | |
5.5% 5/1/15 (FGIC Insured) | 1,850,000 | 2,094,737 | |
5.5% 5/1/16 (FGIC Insured) | 1,000,000 | 1,122,660 | |
5.5% 5/1/17 (FGIC Insured) | 2,060,000 | 2,307,035 | |
5.5% 5/1/20 (FGIC Insured) | 2,000,000 | 2,223,540 | |
Chippewa Valley Schools: | |||
Series I, 5.375% 5/1/17 | 1,000,000 | 1,100,110 | |
5.5% 5/1/17 | 1,125,000 | 1,262,216 | |
Clarkston Cmnty. Schools: | |||
5.375% 5/1/21 | 1,950,000 | 2,176,103 | |
5.375% 5/1/22 | 1,150,000 | 1,278,996 | |
Clintondale Cmnty. Schools 5.5% 5/1/15 | 2,205,000 | 2,261,183 | |
Constantine Pub. Schools: | |||
5% 5/1/25 | 2,250,000 | 2,352,038 | |
5.5% 5/1/18 | 1,220,000 | 1,376,733 | |
5.5% 5/1/19 | 1,245,000 | 1,410,398 | |
5.5% 5/1/20 | 1,245,000 | 1,406,763 | |
5.5% 5/1/21 | 1,250,000 | 1,405,150 | |
Crawford Ausable School District (School Bldg. & Site Proj.) Series 2001, 5.625% 5/1/18 | 1,100,000 | 1,228,183 | |
Detroit City School District: | |||
Series A: | |||
5.5% 5/1/11 (FSA Insured) | 2,000,000 | 2,264,980 | |
5.5% 5/1/16 (FSA Insured) | 1,500,000 | 1,678,860 | |
Municipal Bonds - continued | |||
Principal | Value | ||
Michigan - continued | |||
Detroit City School District: - continued | |||
Series A: | |||
5.5% 5/1/17 (FGIC Insured) | $ 2,900,000 | $ 3,244,375 | |
5.5% 5/1/18 (FGIC Insured) | 2,000,000 | 2,220,940 | |
5.5% 5/1/18 (FSA Insured) | 1,000,000 | 1,109,060 | |
5.5% 5/1/20 (FSA Insured) | 3,000,000 | 3,329,220 | |
Series B, 5.25% 5/1/15 (FGIC Insured) | 3,085,000 | 3,427,003 | |
Detroit Convention Facilities Rev. (Cobo Hall Expansion Proj.): | |||
5% 9/30/10 (MBIA Insured) | 4,000,000 | 4,418,520 | |
5% 9/30/11 (MBIA Insured) | 3,000,000 | 3,320,910 | |
5% 9/30/12 (MBIA Insured) | 3,000,000 | 3,326,100 | |
Detroit Gen. Oblig.: | |||
(Distributable State Aid Proj.) 5.25% 5/1/09 | 4,525,000 | 4,988,677 | |
Series 2003 A, 5% 4/1/11 (XL Cap. Assurance, Inc. Insured) | 1,430,000 | 1,572,757 | |
Series A, 5% 4/1/09 (FSA Insured) (a) | 3,000,000 | 3,253,200 | |
Series B1, 5% 4/1/13 (AMBAC Insured) | 2,000,000 | 2,200,980 | |
5.5% 4/1/17 (MBIA Insured) | 2,615,000 | 2,899,512 | |
5.5% 4/1/19 (MBIA Insured) | 1,500,000 | 1,679,235 | |
5.5% 4/1/20 (MBIA Insured) | 1,250,000 | 1,394,888 | |
Detroit Swr. Disp. Rev.: | |||
Series 2001 D1, 5.5%, tender 7/1/08 (MBIA Insured) (b) | 10,000,000 | 10,905,400 | |
Series A: | |||
0% 7/1/14 (FGIC Insured) | 6,730,000 | 4,591,744 | |
5.125% 7/1/31 (FGIC Insured) | 8,020,000 | 8,285,622 | |
Detroit Wtr. Supply Sys. Rev.: | |||
Series 2001 A, 5.25% 7/1/33 (FGIC Insured) | 6,390,000 | 6,675,377 | |
Series A: | |||
5.5% 7/1/15 (FGIC Insured) | 3,675,000 | 4,048,564 | |
5.75% 7/1/11 (MBIA Insured) | 3,025,000 | 3,479,476 | |
5.875% 7/1/29 (Pre-Refunded to 1/1/10 @ 101) (d) | 3,085,000 | 3,553,797 | |
Series B, 5.5% 7/1/33 (FGIC Insured) | 10,000,000 | 10,897,200 | |
6.5% 7/1/15 (FGIC Insured) | 6,025,000 | 7,421,475 | |
Dexter Cmnty. Schools 5% 5/1/18 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,955,000 | 2,107,920 | |
Dundee Cmnty. School District: | |||
Series 2000, 5.375% 5/1/27 | 1,170,000 | 1,246,366 | |
5.375% 5/1/19 | 1,000,000 | 1,092,310 | |
East China School District 5.5% 5/1/17 | 1,775,000 | 1,972,771 | |
Municipal Bonds - continued | |||
Principal | Value | ||
Michigan - continued | |||
East Grand Rapids Pub. School District: | |||
5% 5/1/16 (FSA Insured) | $ 1,425,000 | $ 1,548,776 | |
5% 5/1/17 (FSA Insured) | 1,985,000 | 2,142,907 | |
5.5% 5/1/17 | 1,690,000 | 1,871,033 | |
Eastern Michigan Univ. Revs. Series 2000 B: | |||
5.5% 6/1/20 (FGIC Insured) | 2,230,000 | 2,446,689 | |
5.625% 6/1/30 (FGIC Insured) | 1,250,000 | 1,369,425 | |
Ecorse Pub. School District 5.5% 5/1/27 (FGIC Insured) | 430,000 | 455,830 | |
Flushing Cmnty. Schools 5.25% 5/1/18 | 1,030,000 | 1,131,795 | |
Gibraltar School District: | |||
5.5% 5/1/18 | 1,200,000 | 1,354,164 | |
5.5% 5/1/21 | 1,200,000 | 1,348,944 | |
Grand Blanc Cmnty. Schools 5.5% 5/1/13 (FGIC Insured) | 1,000,000 | 1,127,500 | |
Grand Rapids Downtown Dev. Auth. Tax Increment Rev. 0% 6/1/11 (MBIA Insured) | 3,160,000 | 2,503,320 | |
Grand Rapids Wtr. Supply Sys. 5.75% 1/1/11 (FGIC Insured) | 2,000,000 | 2,279,440 | |
Hamilton Cmnty. Schools District 5% 5/1/24 (FGIC Insured) | 1,500,000 | 1,540,980 | |
Howell Pub. Schools: | |||
0% 5/1/10 (AMBAC Insured) | 1,130,000 | 941,426 | |
5% 5/1/11 | 2,250,000 | 2,480,063 | |
Huron School District 5.625% 5/1/16 (FSA Insured) | 1,050,000 | 1,170,467 | |
Huron Valley School District: | |||
0% 5/1/10 (FGIC Insured) | 2,500,000 | 2,082,800 | |
0% 5/1/11 (FGIC Insured) | 5,830,000 | 4,635,375 | |
0% 5/1/12 (FGIC Insured) | 1,420,000 | 1,070,964 | |
5.25% 5/1/16 | 2,450,000 | 2,719,745 | |
5.5% 5/1/18 | 2,525,000 | 2,809,542 | |
Imlay City Cmnty. School District (School Bldg. and Site Proj.) 0% 5/1/06 (FGIC Insured) | 1,375,000 | 1,332,650 | |
Ingham, Eaton and Clinton Counties Lansing School District: | |||
5% 5/1/19 | 4,450,000 | 4,768,131 | |
5% 5/1/20 | 1,000,000 | 1,066,690 | |
Jonesville Cmnty. Schools 5.75% 5/1/17 (FGIC Insured) | 1,150,000 | 1,278,237 | |
Kent Hosp. Fin. Auth. Hosp. Facilities Rev.: | |||
(Butterworth Hosp. Proj.) Series A, 7.25% 1/15/13 | 3,685,000 | 4,395,726 | |
(Spectrum Health Proj.) Series A: | |||
5.375% 1/15/11 | 2,420,000 | 2,587,416 | |
5.375% 1/15/12 | 2,505,000 | 2,674,864 | |
Municipal Bonds - continued | |||
Principal | Value | ||
Michigan - continued | |||
L'Anse Creuse Pub. Schools: | |||
5.375% 5/1/18 | $ 1,000,000 | $ 1,116,410 | |
5.375% 5/1/20 | 1,000,000 | 1,118,570 | |
Lake Orion Cmnty. School District 5.25% 5/1/27 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,150,000 | 1,215,711 | |
Lansing Bldg. Auth. Rev. 0% 6/1/12 (AMBAC Insured) | 3,000,000 | 2,253,690 | |
Lansing Cmnty. College 5.5% 5/1/14 (FGIC Insured) | 3,400,000 | 3,842,748 | |
Lansing Swr. Disp. Sys. Rev. 5% 5/1/11 (FGIC Insured) | 1,050,000 | 1,159,253 | |
Lawton Cmnty. Schools 5.5% 5/1/19 | 1,050,000 | 1,166,991 | |
Livonia Muni. Bldg. Auth. 5% 5/1/17 (FGIC Insured) | 1,100,000 | 1,156,507 | |
Livonia Pub. School District 5.875% 5/1/25 (Pre-Refunded to 5/1/10 @ 100) (d) | 7,000,000 | 8,031,030 | |
Marquette City Hosp. Fin. Auth. Rev. (Marquette Gen. | 2,750,000 | 2,930,153 | |
Michigan Bldg. Auth. Rev. (Facilities Prog.): | |||
Series I, 5.25% 10/15/11 (FSA Insured) | 3,000,000 | 3,368,040 | |
Series III, 5% 10/15/10 (MBIA Insured) | 1,000,000 | 1,102,540 | |
Michigan Comprehensive Trans. Rev. Series B: | |||
5.25% 5/15/11 (FSA Insured) | 1,475,000 | 1,650,422 | |
5.25% 5/15/16 (FSA Insured) | 3,850,000 | 4,249,553 | |
Michigan Ctfs. of Prtn. 5.75% 6/1/17 (AMBAC Insured) | 3,000,000 | 3,370,530 | |
Michigan Gen. Oblig. (Envir. Protection Prog.) 6.25% 11/1/12 | 2,015,000 | 2,346,568 | |
Michigan Higher Ed. Student Ln. Auth. Rev. Series XII W, 4.875% 9/1/10 (AMBAC Insured) (c) | 3,000,000 | 3,184,560 | |
Michigan Hosp. Fin. Auth. Hosp. Rev.: | |||
(Ascension Health Cr. Group Proj.) Series A: | |||
6% 11/15/19 (Pre-Refunded to 11/15/09 @ 101) (d) | 10,000,000 | 11,566,385 | |
6.125% 11/15/26 (Pre-Refunded to 11/15/09 @ 101) (d) | 3,070,000 | 3,568,261 | |
(Crittenton Hosp. Proj.) Series A: | |||
5.5% 3/1/13 | 455,000 | 496,350 | |
5.5% 3/1/14 | 1,300,000 | 1,412,255 | |
5.5% 3/1/15 | 1,985,000 | 2,139,810 | |
(Daughters of Charity Health Sys. Proj.) 5.5% 11/1/05 (Escrowed to Maturity) (d) | 520,000 | 534,711 | |
(Genesys Reg'l. Med. Hosp. Proj.) Series A, 5.3% 10/1/11 (Escrowed to Maturity) (d) | 1,000,000 | 1,086,710 | |
(Henry Ford Health Sys. Proj.): | |||
Series 2003 A, 5.5% 3/1/14 | 2,000,000 | 2,180,740 | |
Series A, 6% 11/15/19 | 1,945,000 | 2,071,756 | |
Municipal Bonds - continued | |||
Principal | Value | ||
Michigan - continued | |||
Michigan Hosp. Fin. Auth. Hosp. Rev.: - continued | |||
(McLaren Oblig. Group Proj.) Series A, 5.375% 10/15/13 | $ 9,250,000 | $ 9,371,730 | |
(Mercy Health Svcs. Proj.): | |||
Series 1996 R, 5.375% 8/15/26 (Escrowed to Maturity) (d) | 2,500,000 | 2,607,175 | |
Series Q: | |||
5.25% 8/15/10 (Escrowed to Maturity) (d) | 2,195,000 | 2,301,545 | |
5.375% 8/15/26 (Escrowed to Maturity) (d) | 2,450,000 | 2,555,032 | |
6% 8/15/08 (Escrowed to Maturity) (d) | 1,130,000 | 1,209,609 | |
6% 8/15/10 (Escrowed to Maturity) (d) | 1,265,000 | 1,352,854 | |
Series R, 5.375% 8/15/16 (Escrowed to Maturity) (d) | 2,500,000 | 2,611,200 | |
(MidMichigan Health Obligated Group Prog.) | 2,000,000 | 2,200,940 | |
(Oakwood Obligated Group Proj.) 5.5% 11/1/11 | 3,000,000 | 3,311,370 | |
(Saint John Hosp. & Med. Ctr. Proj.) Series A, 6% 5/15/09 (Escrowed to Maturity) (d) | 1,710,000 | 1,953,487 | |
(Sisters of Mercy Health Corp. Proj.) Series P, 5.375% 8/15/14 (Escrowed to Maturity) (d) | 570,000 | 619,220 | |
(Sparrow Hosp. Obligated Group Proj.): | |||
5.5% 11/15/21 | 1,435,000 | 1,495,270 | |
5.625% 11/15/31 | 4,500,000 | 4,671,765 | |
(Trinity Health Sys. Proj.) Series 2000 A, 6% 12/1/27 | 1,535,000 | 1,686,750 | |
Michigan Muni. Bond Auth. Rev.: | |||
(Local Govt. Ln. Prog.): | |||
Series A: | |||
0% 12/1/07 (FGIC Insured) | 5,340,000 | 4,935,442 | |
4.75% 12/1/09 (FGIC Insured) | 6,000,000 | 6,016,020 | |
Series CA: | |||
0% 6/15/07 (FSA Insured) | 5,165,000 | 4,838,417 | |
0% 6/15/13 (FSA Insured) | 3,850,000 | 2,760,142 | |
Series G, 0% 5/1/19 (AMBAC Insured) | 1,865,000 | 986,007 | |
7.5% 11/1/09 (AMBAC Insured) | 20,000 | 20,081 | |
Series C: | |||
5% 5/1/10 | 5,500,000 | 6,039,990 | |
5% 5/1/11 | 2,075,000 | 2,284,658 | |
5% 10/1/23 | 5,000,000 | 5,232,350 | |
5.375% 10/1/19 | 1,980,000 | 2,206,948 | |
Michigan Pub. Pwr. Agcy. Rev. (Belle River Proj.) | 2,000,000 | 2,194,020 | |
Municipal Bonds - continued | |||
Principal | Value | ||
Michigan - continued | |||
Michigan Strategic Fund Exempt Facilities Rev. (Waste Mgmt., Inc. Proj.) 3.75%, tender 8/1/07 (b)(c) | $ 3,000,000 | $ 3,031,500 | |
Michigan Strategic Fund Ltd. Oblig. Rev. | |||
Series A, 5.55% 9/1/29 (MBIA Insured) (c) | 1,000,000 | 1,059,750 | |
Series AA, 6.4% 9/1/25 (MBIA Insured) | 5,000,000 | 5,234,650 | |
Series BB: | |||
7% 7/15/08 (MBIA Insured) | 2,200,000 | 2,519,462 | |
7% 5/1/21 (AMBAC Insured) | 8,520,000 | 11,269,148 | |
Michigan Strategic Fund Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.2%, tender 12/1/05 (b)(c) | 2,080,000 | 2,098,741 | |
Michigan Trunk Line: | |||
Series A: | |||
0% 10/1/11 (AMBAC Insured) | 3,630,000 | 2,833,505 | |
5.5% 11/1/16 | 3,000,000 | 3,475,680 | |
5.25% 10/1/16 (FSA Insured) | 3,000,000 | 3,325,170 | |
Mona Shores School District 6.75% 5/1/10 (FGIC Insured) | 2,220,000 | 2,614,627 | |
Montague Pub. School District: | |||
5.5% 5/1/16 | 1,005,000 | 1,118,897 | |
5.5% 5/1/17 | 1,005,000 | 1,116,977 | |
5.5% 5/1/19 | 1,090,000 | 1,207,971 | |
Morenci Area Schools 5.25% 5/1/21 (MBIA Insured) | 1,410,000 | 1,534,841 | |
Mount Clemens Cmnty. School District: | |||
0% 5/1/17 | 5,000,000 | 2,382,100 | |
5.5% 5/1/16 | 1,000,000 | 1,113,330 | |
Muskegon Heights Wtr. Sys. Rev. Series 2000 A: | |||
5.625% 11/1/20 (MBIA Insured) | 2,075,000 | 2,315,742 | |
5.625% 11/1/30 (MBIA Insured) | 1,550,000 | 1,695,576 | |
New Haven Cmnty. Schools 5.25% 5/1/18 | 1,175,000 | 1,285,133 | |
Oakland Univ. Rev. 5% 5/15/12 (AMBAC Insured) | 1,020,000 | 1,126,151 | |
Okemos Pub. School District: | |||
0% 5/1/12 (MBIA Insured) | 2,500,000 | 1,885,500 | |
0% 5/1/13 (MBIA Insured) | 1,700,000 | 1,224,646 | |
Ovid-Elsie Area Schools Counties of Clinton, Shawassee, Saginaw and Gratiot 5% 5/1/18 | 1,515,000 | 1,625,277 | |
Paw Paw Pub. School District 5.25% 5/1/25 | 4,100,000 | 4,340,834 | |
Pinckney Cmnty. Schools Livingston & Washtenaw Counties: | |||
5.5% 5/1/10 (Pre-Refunded to 5/1/07 @ 100) (d) | 2,175,000 | 2,333,993 | |
5.5% 5/1/11 (Pre-Refunded to 5/1/07 @ 100) (d) | 2,350,000 | 2,521,785 | |
Municipal Bonds - continued | |||
Principal | Value | ||
Michigan - continued | |||
Plainwell Cmnty. School District: | |||
5.5% 5/1/14 | $ 1,000,000 | $ 1,132,850 | |
5.5% 5/1/16 | 1,000,000 | 1,129,200 | |
Port Huron Area School District County of Saint Clair: | |||
0% 5/1/08 (Liquidity Facility Michigan School Bond Ln. Fund) | 1,975,000 | 1,797,191 | |
5.25% 5/1/16 | 1,175,000 | 1,301,865 | |
5.25% 5/1/17 | 2,125,000 | 2,348,359 | |
5.25% 5/1/18 | 2,175,000 | 2,378,863 | |
Reese Pub. Schools School District (School Bldg. & Site Proj.) 5.5% 5/1/30 (MBIA Insured) | 2,140,000 | 2,301,934 | |
River Rouge School District 5% 5/1/19 (FGIC Insured) | 7,690,000 | 8,196,387 | |
Riverview Cmnty. School District: | |||
5% 5/1/14 | 905,000 | 1,000,007 | |
5% 5/1/15 | 955,000 | 1,044,990 | |
5% 5/1/17 | 1,000,000 | 1,086,040 | |
5% 5/1/18 | 1,000,000 | 1,080,360 | |
Rochester Cmnty. School District: | |||
Series II, 5.5% 5/1/16 | 1,125,000 | 1,252,496 | |
5% 5/1/19 (MBIA Insured) | 1,000,000 | 1,108,170 | |
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Proj.): | |||
Series M, 5.25% 11/15/31 (MBIA Insured) | 2,000,000 | 2,087,580 | |
5.5% 1/1/14 | 4,000,000 | 4,137,680 | |
Saint Clair County Gen. Oblig.: | |||
5% 4/1/17 (AMBAC Insured) | 1,380,000 | 1,494,512 | |
5% 4/1/19 (AMBAC Insured) | 1,475,000 | 1,586,731 | |
Saint Joseph School District 5.5% 5/1/18 | 1,065,000 | 1,185,015 | |
South Haven Pub. Schools: | |||
5% 5/1/21 (FSA Insured) | 1,450,000 | 1,538,001 | |
5% 5/1/22 (FSA Insured) | 1,350,000 | 1,426,086 | |
South Lyon Cmnty. Schools (School Bldg. and Site Prog.) 5.25% 5/1/15 (FGIC Insured) | 1,000,000 | 1,112,290 | |
Southfield Library Bldg. Auth. 5.5% 5/1/21 (MBIA Insured) | 1,425,000 | 1,562,228 | |
Southfield Pub. Schools: | |||
Series A: | |||
5.25% 5/1/17 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,025,000 | 1,134,757 | |
5.25% 5/1/18 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,025,000 | 1,130,134 | |
Municipal Bonds - continued | |||
Principal | Value | ||
Michigan - continued | |||
Southfield Pub. Schools: - continued | |||
Series A: | |||
5.25% 5/1/19 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | $ 1,025,000 | $ 1,135,536 | |
5.25% 5/1/20 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,025,000 | 1,136,305 | |
Series B: | |||
5.125% 5/1/16 (FSA Insured) | 2,780,000 | 3,071,344 | |
5.25% 5/1/25 (FSA Insured) | 2,000,000 | 2,158,900 | |
Standish Sterling Cmnty. Schools 5.15% 5/1/28 | 4,900,000 | 4,974,284 | |
Stockbridge Cmnty. Schools 5.625% 5/1/26 | 1,415,000 | 1,546,850 | |
Sturgis Pub. School District 5.625% 5/1/30 | 3,000,000 | 3,267,420 | |
Taylor City Bldg. Auth. County of Wayne Bldg. Auth. Pub. Facilities: | |||
5% 10/1/21 (MBIA Insured) | 1,735,000 | 1,844,687 | |
5% 10/1/23 (MBIA Insured) | 1,920,000 | 2,026,944 | |
Tecumseh Pub. Schools 5.5% 5/1/30 (FGIC Insured) | 1,250,000 | 1,341,488 | |
Troy School District 5% 5/1/15 | 2,135,000 | 2,336,181 | |
Utica Cmnty. Schools: | |||
5% 5/1/17 | 3,000,000 | 3,244,170 | |
5.25% 5/1/15 | 725,000 | 810,884 | |
5.375% 5/1/16 | 2,250,000 | 2,528,010 | |
5.5% 5/1/17 | 1,000,000 | 1,135,530 | |
Warren Consolidated School District 5.375% 5/1/16 | 2,350,000 | 2,603,213 | |
Waverly Cmnty. School District: | |||
5% 5/1/11 (FSA Insured) (a) | 1,000,000 | 1,104,050 | |
5.75% 5/1/14 (Pre-Refunded to 5/1/10 @ 100) (d) | 1,000,000 | 1,141,160 | |
5.75% 5/1/16 (Pre-Refunded to 5/1/10 @ 100) (d) | 1,000,000 | 1,141,160 | |
Wayne Charter County Arpt. Rev. (Detroit Metropolitan Wayne County Arpt. Proj.) Series A, 5.25% 12/1/12 (MBIA Insured) (c) | 2,500,000 | 2,676,375 | |
Wayne Charter County Gen. Oblig. Series 2001 A, 5.5% 12/1/17 (MBIA Insured) | 1,000,000 | 1,104,310 | |
Wayne-Westland Cmnty. Schools 5% 5/1/10 (FSA Insured) | 3,000,000 | 3,292,980 | |
West Ottawa Pub. School District 5.25% 5/1/10 (FGIC Insured) | 850,000 | 899,623 | |
Whitehall District Schools 5.5% 5/1/15 | 1,000,000 | 1,115,890 | |
Willow Run Cmnty. Schools County of Washtenaw 5.5% 5/1/16 | 1,630,000 | 1,807,523 | |
Municipal Bonds - continued | |||
Principal | Value | ||
Michigan - continued | |||
Woodhaven-Brownstown School District County of Wayne: | |||
5.375% 5/1/16 | $ 1,710,000 | $ 1,900,272 | |
5.375% 5/1/18 (FSA Insured) | 1,875,000 | 2,062,106 | |
Wyandotte City School District 5.375% 5/1/20 | 1,050,000 | 1,167,548 | |
Wyandotte Elec. Rev.: | |||
5.375% 10/1/14 (MBIA Insured) | 3,485,000 | 3,819,665 | |
5.375% 10/1/15 (MBIA Insured) | 1,670,000 | 1,830,370 | |
Zeeland Pub. Schools 5.25% 5/1/16 (MBIA Insured) | 1,050,000 | 1,170,267 | |
543,701,667 | |||
Puerto Rico - 0.9% | |||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. Series 1996 Y, 5% 7/1/36 (MBIA Insured) | 2,500,000 | 2,613,450 | |
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A, 5.5% 10/1/32 (Escrowed to Maturity) (d) | 900,000 | 983,322 | |
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series QQ, 5.5% 7/1/18 (XL Cap. Assurance, Inc. Insured) (a) | 1,000,000 | 1,144,100 | |
4,740,872 | |||
TOTAL INVESTMENT PORTFOLIO - 98.0% (Cost $518,696,234) | 548,442,539 | ||
NET OTHER ASSETS - 2.0% | 11,440,826 | ||
NET ASSETS - 100% | $ 559,883,365 |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(d) Security collateralized by an amount sufficient to pay interest and principal. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 50.7% |
Water & Sewer | 11.6% |
Escrowed/Pre-Refunded | 10.4% |
Health Care | 8.6% |
Special Tax | 5.7% |
Electric Utilities | 5.1% |
Others* (individually less than 5%) | 7.9% |
100.0% |
*Includes net other assets |
Income Tax Information |
The fund hereby designates as capital gain dividends: For dividends with respect to the taxable year ended December 31, 2004, $5,726,000 or, if different, the net capital gain of such year. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Spartan Michigan Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
December 31, 2004 | ||
Assets | ||
Investment in securities, at value (cost $518,696,234) - See accompanying schedule | $ 548,442,539 | |
Cash | 12,523,196 | |
Receivable for fund shares sold | 99,567 | |
Interest receivable | 5,891,718 | |
Prepaid expenses | 2,146 | |
Other affiliated receivables | 15 | |
Other receivables | 13,650 | |
Total assets | 566,972,831 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 5,363,000 | |
Payable for fund shares redeemed | 844,074 | |
Distributions payable | 612,578 | |
Accrued management fee | 174,129 | |
Other affiliated payables | 51,000 | |
Other payables and accrued expenses | 44,685 | |
Total liabilities | 7,089,466 | |
Net Assets | $ 559,883,365 | |
Net Assets consist of: | ||
Paid in capital | $ 528,325,162 | |
Undistributed net investment income | 106,864 | |
Accumulated undistributed net realized gain (loss) on investments | 1,705,034 | |
Net unrealized appreciation (depreciation) on investments | 29,746,305 | |
Net Assets, for 46,249,207 shares outstanding | $ 559,883,365 | |
Net Asset Value, offering price and redemption price per share ($559,883,365 ÷ 46,249,207 shares) | $ 12.11 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Spartan Michigan Municipal Income Fund
Financial Statements - continued
Statement of Operations
Year ended December 31, 2004 | ||
Investment Income | ||
Interest | $ 25,274,775 | |
Expenses | ||
Management fee | $ 2,095,551 | |
Transfer agent fees | 441,643 | |
Accounting fees and expenses | 136,462 | |
Non-interested trustees' compensation | 3,187 | |
Custodian fees and expenses | 9,773 | |
Registration fees | 27,927 | |
Audit | 42,128 | |
Legal | 6,114 | |
Miscellaneous | 16,348 | |
Total expenses before reductions | 2,779,133 | |
Expense reductions | (89,297) | 2,689,836 |
Net investment income | 22,584,939 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on investment securities | 6,019,576 | |
Change in net unrealized appreciation (depreciation) on investment securities | (7,701,308) | |
Net gain (loss) | (1,681,732) | |
Net increase (decrease) in net assets resulting from operations | $ 20,903,207 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 22,584,939 | $ 24,192,521 |
Net realized gain (loss) | 6,019,576 | 9,472,392 |
Change in net unrealized appreciation (depreciation) | (7,701,308) | (1,715,675) |
Net increase (decrease) in net assets resulting | 20,903,207 | 31,949,238 |
Distributions to shareholders from net investment income | (22,507,564) | (24,202,901) |
Distributions to shareholders from net realized gain | (3,899,782) | - |
Total distributions | (26,407,346) | (24,202,901) |
Share transactions | 72,884,467 | 83,885,105 |
Reinvestment of distributions | 18,252,560 | 16,889,514 |
Cost of shares redeemed | (87,145,890) | (119,376,217) |
Net increase (decrease) in net assets resulting from share transactions | 3,991,137 | (18,601,598) |
Redemption fees | 2,127 | 7,727 |
Total increase (decrease) in net assets | (1,510,875) | (10,847,534) |
Net Assets | ||
Beginning of period | 561,394,240 | 572,241,774 |
End of period (including undistributed net investment income of $106,864 and undistributed net investment income of $429,486, respectively) | $ 559,883,365 | $ 561,394,240 |
Other Information Shares | ||
Sold | 5,988,507 | 6,902,116 |
Issued in reinvestment of distributions | 1,506,099 | 1,391,625 |
Redeemed | (7,198,143) | (9,851,451) |
Net increase (decrease) | 296,463 | (1,557,710) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000 |
Selected Per-Share Data | |||||
Net asset value, | $ 12.22 | $ 12.04 | $ 11.47 | $ 11.48 | $ 10.87 |
Income from Investment Operations | |||||
Net investment income B | .491 | .513 | .532 | .552 D | .570 |
Net realized and unrealized gain (loss) | (.026) | .180 | .568 | (.010) D | .610 |
Total from investment operations | .465 | .693 | 1.100 | .542 | 1.180 |
Distributions from net investment income | (.490) | (.513) | (.530) | (.552) | (.570) |
Distributions from net realized gain | (.085) | - | - | - | - |
Total distributions | (.575) | (.513) | (.530) | (.552) | (.570) |
Redemption fees added to paid in capital | - B, E | - B, E | - B, E | - B, E | - |
Net asset value, | $ 12.11 | $ 12.22 | $ 12.04 | $ 11.47 | $ 11.48 |
Total Return A | 3.90% | 5.87% | 9.78% | 4.77% | 11.19% |
Ratios to Average Net Assets C | |||||
Expenses before expense reductions | .50% | .50% | .50% | .50% | .51% |
Expenses net of voluntary waivers, if any | .50% | .50% | .50% | .50% | .51% |
Expenses net of all reductions | .48% | .49% | .48% | .44% | .45% |
Net investment income | 4.05% | 4.22% | 4.51% | 4.76% D | 5.17% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 559,883 | $ 561,394 | $ 572,242 | $ 505,534 | $ 458,910 |
Portfolio turnover rate | 12% | 23% | 17% | 19% | 18% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary 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 fund.
D Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.
E 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
Maturity Diversification | |||
Days | % of fund's investments 12/31/04 | % of fund's investments 6/30/04 | % of fund's investments 12/31/03 |
0 - 30 | 92.5 | 85.4 | 81.2 |
31 - 90 | 0.9 | 7.9 | 1.9 |
91 - 180 | 2.7 | 5.7 | 2.6 |
181 - 397 | 3.9 | 1.0 | 14.3 |
Weighted Average Maturity | |||
12/31/04 | 6/30/04 | 12/31/03 | |
Fidelity Michigan Municipal Money | 21 Days | 20 Days | 44 Days |
All Tax-Free Money Market | 33 Days | 33 Days | 45 Days |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2004 | As of June 30, 2004 | ||||||
![]() | Variable Rate Demand Notes (VRDNs) 85.7% | ![]() | Variable Rate Demand Notes (VRDNs) 79.4% | ||||
![]() | Commercial Paper (including CP Mode) 3.1% | ![]() | Commercial Paper (including CP Mode) 2.2% | ||||
![]() | Tender Bonds 0.9% | ![]() | Tender Bonds 8.3% | ||||
![]() | Municipal Notes 2.8% | ![]() | Municipal Notes 3.2% | ||||
![]() | Fidelity Municipal | ![]() | Fidelity Municipal | ||||
![]() | Other Investments 1.4% | ![]() | Other Investments 6.3% | ||||
![]() | Net Other Assets 2.3% | ![]() | Net Other Assets 0.6% |
Current and Historical Seven-Day Yields
1/3/05 | 9/27/04 | 6/28/04 | 3/29/04 | 12/29/03 | |
Fidelity Michigan Municipal Money Market Fund | 1.42% | 0.95% | 0.57% | 0.51% | 0.68% |
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it is possible to lose money by investing in the fund.
*Source: iMoneyNet, Inc.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Investments December 31, 2004
Showing Percentage of Net Assets
Municipal Securities - 97.7% | |||
Principal | Value | ||
Michigan - 93.0% | |||
Allen Park Pub. School District Participating VRDN Series ROC II R4007, 2.04% (Liquidity Facility Citigroup Global Markets Hldgs., Inc.) (a)(f) | $ 5,145,000 | $ 5,145,000 | |
Charlotte Hosp. Fin. Auth. Ltd. Oblig. Rev. (Hayes Green Beach Proj.) 2.07%, LOC Fifth Third Bank, Cincinnati, VRDN (a) | 13,675,000 | 13,675,000 | |
Clinton Econ. Dev. Corp. Rev. (Clinton Area Care Ctr. Proj.) 2.09%, LOC Northern Trust Co., Chicago, VRDN (a) | 5,130,000 | 5,130,000 | |
Delta County Econ. Dev. Corp. Envir. Impt. Rev. Participating VRDN Series PT 2371, 2.06% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 3,115,000 | 3,115,000 | |
Detroit City School District Participating VRDN: | |||
ROC II R1033, 2.04% (Liquidity Facility Citigroup Global Markets Hldgs., Inc.) (a)(f) | 3,675,000 | 3,675,000 | |
Series AAB 04 39, 2.04% (Liquidity Facility ABN-AMRO Bank NV) (a)(f) | 5,800,000 | 5,800,000 | |
Series PT 2158, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 1,000,000 | 1,000,000 | |
Series ROC II R4004, 2.04% (Liquidity Facility Citigroup Global Markets Hldgs., Inc.) (a)(f) | 5,770,000 | 5,770,000 | |
Detroit Econ. Dev. Corp. Resource Recovery Rev. Participating VRDN Series Merlots 01 A90, 2.11% (Liquidity Facility Wachovia Bank NA) (a)(d)(f) | 2,500,000 | 2,500,000 | |
Detroit Swr. Disp. Rev. Participating VRDN: | |||
Series 2002 G, 2.07% (Liquidity Facility Bank of America NA) (a)(f) | 8,520,000 | 8,520,000 | |
Series Merlots 00 I, 2.06% (Liquidity Facility Wachovia Bank NA) (a)(f) | 9,300,000 | 9,300,000 | |
Series Merlots 01 A103, 2.06% (Liquidity Facility Wachovia Bank NA) (a)(f) | 10,010,000 | 10,010,000 | |
Series Merlots 01 A112, 2.06% (Liquidity Facility Wachovia Bank NA) (a)(f) | 5,095,000 | 5,095,000 | |
Series Merlots 04 B2, 2.06% (Liquidity Facility Wachovia Bank NA) (a)(f) | 5,800,000 | 5,800,000 | |
Series Merlots B41, 2.06% (Liquidity Facility Wachovia Bank NA) (a)(f) | 2,255,000 | 2,255,000 | |
Series PA 1183, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 6,000,000 | 6,000,000 | |
Series SGB 47, 2.04% (Liquidity Facility Societe Generale) (a)(f) | 5,800,000 | 5,800,000 | |
Detroit Wtr. Supply Sys. Rev. Participating VRDN: | |||
Series Merlots 00 D, 2.06% (Liquidity Facility Wachovia Bank NA) (a)(f) | 4,500,000 | 4,500,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Michigan - continued | |||
Detroit Wtr. Supply Sys. Rev. Participating VRDN: - continued | |||
Series PA 1151, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | $ 5,405,000 | $ 5,405,000 | |
Series Putters 200, 2.03% (Liquidity Facility JPMorgan Chase Bank) (a)(f) | 5,370,000 | 5,370,000 | |
Series Putters 345, 2.03% (Liquidity Facility JPMorgan Chase Bank) (a)(f) | 8,495,000 | 8,495,000 | |
Series SG 64, 2.02% (Liquidity Facility Societe Generale) (a)(f) | 3,500,000 | 3,500,000 | |
Series SGB 6, 2.04% (Liquidity Facility Societe Generale) (a)(f) | 9,570,000 | 9,570,000 | |
Detroit Wtr. Sys. Rev. Participating VRDN Series EGL 99 2202, 2.04% (Liquidity Facility Citibank NA, New York) (a)(f) | 8,200,000 | 8,200,000 | |
Dickinson County Econ. Dev. Corp. Poll. Cont. Rev. Participating VRDN Series LB 04 F14, 2.05% (Lehman Brothers Hldgs., Inc. Guaranteed) (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(f) | 4,750,000 | 4,750,000 | |
East China School District TAN 2% 3/1/05 | 5,200,000 | 5,202,601 | |
East Lansing School District Participating VRDN Series SGA 114, 2.02% (Liquidity Facility Societe Generale) (a)(f) | 6,000,000 | 6,000,000 | |
Fitzgerald Pub. School District Participating VRDN Series Putters 561, 2.03% (Liquidity Facility JPMorgan Chase Bank) (a)(f) | 6,020,000 | 6,020,000 | |
Genesee County Econ. Dev. Corp. (Creative Foam Corp. Proj.) Series 1994, 2.15%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 1,000,000 | 1,000,000 | |
Grand Rapids Economic Dev. Corp. (Cornerstone Univ. Proj.) 2.03%, LOC Nat'l. City Bank, VRDN (a) | 2,000,000 | 2,000,000 | |
Grand Rapids San. Swr. Sys. Rev. Participating VRDN Series PT 2466, 2.02% (Liquidity Facility WestLB AG) (a)(f) | 5,175,000 | 5,175,000 | |
Hartland Consolidated School District Participating VRDN Series MSTC 01 127 Class A, 2.02% (Liquidity Facility Bear Stearns Companies, Inc.) (a)(f) | 6,655,000 | 6,655,000 | |
Holland Charter Township Econ. Dev. Corp. Rev. (Chicago Mission Proj.) 2.09%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 2,435,000 | 2,435,000 | |
Jackson Pub. Schools RAN Series B, 2.45% 5/23/05, LOC Comerica Bank, Detroit | 1,500,000 | 1,504,798 | |
Kentwood Pub. Schools Participating VRDN Series EGL 03 24, 2.04% (Liquidity Facility Citibank NA, New York) (a)(f) | 3,195,000 | 3,195,000 | |
Lowell Area Schools Bonds: | |||
0% 5/1/15 (Pre-Refunded to 5/1/05 @ 49.0888) (e) | 9,375,000 | 4,569,584 | |
0% 5/1/20 (Pre-Refunded to 5/1/05 @ 33.6439) (e) | 10,000,000 | 3,340,643 | |
Municipal Securities - continued | |||
Principal | Value | ||
Michigan - continued | |||
Macomb County Hosp. Fin. Auth. Rev. (Mount Clemens Gen. Hosp. Proj.) Series 2003 A1, 2.3%, LOC Comerica Bank, Detroit, VRDN (a) | $ 6,000,000 | $ 6,000,000 | |
Michigan Bldg. Auth. Rev.: | |||
Bonds (Facilities Prog.) Series I, 5% 4/15/05 | 1,000,000 | 1,009,492 | |
Participating VRDN: | |||
Series EGL 01 2202, 2.04% (Liquidity Facility Citibank NA, New York) (a)(f) | 3,000,000 | 3,000,000 | |
Series Merlots 04 B10, 2.06% (Liquidity Facility Wachovia Bank NA) (a)(f) | 5,115,000 | 5,115,000 | |
Series MS 00 481X, 2.03% (Liquidity Facility Morgan Stanley) (a)(f) | 2,670,000 | 2,670,000 | |
Series MS 886, 2.03% (Liquidity Facility Morgan Stanley) (a)(f) | 1,700,000 | 1,700,000 | |
Series PT 2177, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 6,155,000 | 6,155,000 | |
Series PT 2234, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 5,880,000 | 5,880,000 | |
Series ROC II R 4551, 2.04% (Liquidity Facility Citigroup Global Markets Hldgs., Inc.) (a)(f) | 5,205,000 | 5,205,000 | |
Series ROC II R2064, 2.04% (Liquidity Facility Citigroup Global Markets Hldgs., Inc.) (a)(f) | 2,755,000 | 2,755,000 | |
Series ROC II R4057, 2.04% (Liquidity Facility Citigroup Global Markets Hldgs., Inc.) (a)(f) | 2,210,000 | 2,210,000 | |
Series Stars 101, 2.02% (Liquidity Facility BNP Paribas SA) (a)(f) | 5,890,000 | 5,890,000 | |
Michigan Gen. Oblig.: | |||
Bonds: | |||
(Multi-Modal Envir. Prog.) Series A, 1.95% tender 10/19/05 (Liquidity Facility DEPFA BANK PLC), CP mode | 10,000,000 | 10,000,000 | |
(Multi-Modal School Ln. Prog.) Series B, 2.2% tender 10/5/05, CP mode | 3,250,000 | 3,250,000 | |
Series 2002 D, 1.95% (FSA Insured), VRDN (a) | 19,600,000 | 19,599,999 | |
Michigan Higher Ed. Student Ln. Auth. Rev.: | |||
Participating VRDN Series PA 1064, 2.07% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d)(f) | 7,420,000 | 7,420,000 | |
2.03% (AMBAC Insured), VRDN (a)(d) | 4,000,000 | 4,000,000 | |
Michigan Hosp. Fin. Auth. Hosp. Rev.: | |||
(Health Care Equip. Ln. Prog.) Series B, 1.96%, LOC Standard Fed. Bank, VRDN (a) | 4,000,000 | 4,000,000 | |
(United Memorial Hosp. Assoc. Proj.) Series 1999, 2.01%, LOC Fifth Third Bank, Cincinnati, VRDN (a)(d) | 8,970,000 | 8,970,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Michigan - continued | |||
Michigan Hosp. Fin. Auth. Rev. Series B: | |||
1.96%, LOC Standard Fed. Bank, VRDN (a) | $ 2,100,000 | $ 2,100,000 | |
1.96%, LOC Standard Fed. Bank, VRDN (a) | 3,600,000 | 3,600,000 | |
Michigan Hsg. Dev. Auth. Multi-family Hsg. Rev. (Hunt Club Apts. Proj.) 2.03%, LOC Fannie Mae, VRDN (a)(d) | 5,600,000 | 5,600,000 | |
Michigan Hsg. Dev. Auth. Rental Hsg. Rev. Series 2000 A, 2.02% (MBIA Insured), VRDN (a)(d) | 3,400,000 | 3,400,000 | |
Michigan Hsg. Dev. Auth. Single Family Mtg. Rev.: | |||
Participating VRDN Series PT 01 556, 2.07% (Liquidity Facility Landesbank Hessen-Thuringen) (a)(d)(f) | 3,630,000 | 3,630,000 | |
Series 1999 B2, 2.05% (MBIA Insured), VRDN (a)(d) | 5,700,000 | 5,700,000 | |
Series 2002 A, 2.05% (MBIA Insured), VRDN (a)(d) | 5,000,000 | 5,000,000 | |
Series 2003 C, 2.01% (FSA Insured), VRDN (a)(d) | 3,000,000 | 3,000,000 | |
Michigan Muni. Bond Auth. Rev.: | |||
Participating VRDN: | |||
Series EGL 00 2201, 2.04% (Liquidity Facility Citibank NA, New York) (a)(f) | 9,500,000 | 9,500,000 | |
Series MS 718, 2.03% (Liquidity Facility Morgan Stanley) (a)(f) | 12,946,000 | 12,946,000 | |
Series MSTC 02 204, 2.02% (Liquidity Facility Bear Stearns Companies, Inc.) (a)(f) | 10,395,000 | 10,395,000 | |
Series TOC 04 C, 2.02% (Liquidity Facility Goldman Sachs Group, Inc.) (a)(f) | 5,900,000 | 5,900,000 | |
RAN Series B1, 3% 8/19/05 | 10,000,000 | 10,086,773 | |
Michigan Strategic Fund Indl. Dev. Rev. (Althaus Family Investors II Proj.) Series 1997, 2.19%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a) | 2,055,000 | 2,055,000 | |
Michigan Strategic Fund Ltd. Oblig. Rev.: | |||
Bonds (Dow Chemical Co. Proj.) Series 2003 A1, 2.03% tender 1/5/05, CP mode (d) | 5,900,000 | 5,900,000 | |
Participating VRDN Series MS 00 382, 2.03% (Liquidity Facility Morgan Stanley) (a)(f) | 2,000,000 | 2,000,000 | |
(BC&C Proj.) 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 1,560,000 | 1,560,000 | |
(Biewer of Lansing LLC Proj.) Series 1999, 2.14%, LOC Standard Fed. Bank, VRDN (a)(d) | 1,245,000 | 1,245,000 | |
(Bosal Ind. Proj.) Series 1998, 2.1%, LOC Bank of New York, New York, VRDN (a)(d) | 7,500,000 | 7,500,000 | |
(CJS Properties LLC Proj.) 2.15%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 1,900,000 | 1,900,000 | |
(Conti Properties LLC Proj.) Series 1997, 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 2,560,000 | 2,560,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Michigan - continued | |||
Michigan Strategic Fund Ltd. Oblig. Rev.: - continued | |||
(Creative Foam Corp. Proj.) 2.13%, LOC JPMorgan Chase Bank, VRDN (a)(d) | $ 1,000,000 | $ 1,000,000 | |
(Doss Ind. Dev. Co. Proj.) 2.15%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 2,200,000 | 2,200,000 | |
(Fintex LLC Proj.) Series 2000, 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 2,020,000 | 2,020,000 | |
(Future Fence Co. Proj.) 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 2,450,000 | 2,450,000 | |
(Grandview Plaza Riverview Assoc. One LP Proj.) 2.12%, LOC Nat'l. City Bank, VRDN (a)(d) | 1,675,000 | 1,675,000 | |
(HP Pelzer Automotive Sys. Sterling Heights Proj.) 2.03%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 2,050,000 | 2,050,000 | |
(John H. Dekker & Sons Proj.) Series 1998, 2.19%, LOC Standard Fed. Bank, VRDN (a)(d) | 1,110,000 | 1,110,000 | |
(K&M Engineering, Inc. Proj.) 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 1,720,000 | 1,720,000 | |
(LPB LLC Proj.) 2.13%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 2,800,000 | 2,800,000 | |
(Majestic Ind., Inc. Proj.) 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 2,275,000 | 2,275,000 | |
(Mans Proj.) Series 1998, 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 1,820,000 | 1,820,000 | |
(Mid-American Products, Inc. Proj.) Series 1998 2.13%, LOC Standard Fed. Bank, VRDN (a)(d) | 1,635,000 | 1,635,000 | |
(Orchestra Place Renewal Proj.) Series 2000, 2.03%, LOC ABN-AMRO Bank NV, VRDN (a) | 5,800,000 | 5,800,000 | |
(PBL Enterprises, Inc. Proj.) Series 1997, 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 2,175,000 | 2,175,000 | |
(Pioneer Laboratories, Inc. Proj.) 2.05%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 1,300,000 | 1,300,000 | |
(S&S LLC Proj.) Series 2000, 2.18%, LOC Standard Fed. Bank, VRDN (a)(d) | 2,700,000 | 2,700,000 | |
(SBC Ventures LLC Proj.) 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 4,000,000 | 4,000,000 | |
(TEI Invts. LLC Proj.) Series 1997, 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 600,000 | 600,000 | |
(Temperance Enterprise Proj.) Series 1996, 2.12%, LOC Nat'l. City Bank, VRDN (a)(d) | 2,160,000 | 2,160,000 | |
(The Monarch Press, Inc. Proj.) Series 2000, 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 1,900,000 | 1,900,000 | |
(The Spiratex Co. Proj.) Series 1994, 2.15%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 1,000,000 | 1,000,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Michigan - continued | |||
Michigan Strategic Fund Ltd. Oblig. Rev.: - continued | |||
(Trilan LLC Proj.) 2.13%, LOC JPMorgan Chase Bank, VRDN (a)(d) | $ 3,500,000 | $ 3,500,000 | |
(Unified-Boring Co., Inc. Proj.) Series 1992, 2.25%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 600,000 | 600,000 | |
(Vent-Rite Valve Corp. Proj.) 2.09%, LOC Fleet Nat'l. Bank, VRDN (a)(d) | 705,000 | 705,000 | |
(W.H. Porter, Inc. Proj.) Series 2001, 2.15%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 3,550,000 | 3,550,000 | |
(Windcrest Properties LLC Proj.) 2.08%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 4,300,000 | 4,300,000 | |
(YMCA Metropolitan Detroit Proj.) Series 2001, 2.09%, LOC JPMorgan Chase Bank, VRDN (a) | 12,740,000 | 12,740,000 | |
Michigan Strategic Fund Poll. Cont. Rev. (Gen. Motors Corp. Proj.): | |||
Series 1988 A, 2.45%, VRDN (a) | 2,700,000 | 2,700,000 | |
2.5%, VRDN (a) | 3,100,000 | 3,100,000 | |
Michigan Strategic Fund Rev. (Rest Haven Christian Services Proj.) Series A, 2.03%, LOC KBC Bank NV, VRDN (a) | 3,195,000 | 3,195,000 | |
Oakland County Econ. Dev. Corp. Ltd. Oblig. Rev. (Osmic, Inc. Proj.) Series 2001 A, 2.14%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 6,300,000 | 6,300,000 | |
Rockford Pub. Schools Participating VRDN Series MS 01 589, 2.03% (Liquidity Facility Morgan Stanley) (a)(f) | 2,135,000 | 2,135,000 | |
Saint Clair County Econ. Dev. Corp. Poll. Cont. Rev. Participating VRDN Series MS 00 282, 2.03% (Liquidity Facility Morgan Stanley) (a)(f) | 11,895,000 | 11,895,000 | |
Sanilac County Econ. Dev. Corp. (Marlette Cmnty. Hosp. Proj.) Series 2001, 2.09%, LOC JPMorgan Chase Bank, VRDN (a) | 12,565,000 | 12,565,000 | |
Van Buren Township Local Dev. Fin. Auth. Participating VRDN Series ROC 4518, 2.04% (Liquidity Facility Citigroup Global Markets Hldgs., Inc.) (a)(f) | 7,700,000 | 7,700,000 | |
Wayne Charter County Arpt. Rev. Participating VRDN Series PT 2128, 2.08% (Liquidity Facility WestLB AG) (a)(d)(f) | 1,260,000 | 1,260,000 | |
Wayne-Westland Cmnty. Schools Participating VRDN: | |||
Series MS 98 56, 2.03% (Liquidity Facility Morgan Stanley) (a)(f) | 7,465,000 | 7,465,000 | |
Series MS 98 67, 2.03% (Liquidity Facility Morgan Stanley) (a)(f) | 10,895,000 | 10,895,000 | |
Western Townships Utils. Auth. County of Wayne Swr. Disp. Sys. Bonds Series Merlots A96, 1.45%, tender 4/27/05 (Liquidity Facility Wachovia Bank NA) (a)(f)(g) | 5,700,000 | 5,700,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Michigan - continued | |||
Whitmore Lake Pub. School District Participating VRDN | $ 3,895,000 | $ 3,895,000 | |
Zeeland Hosp. Fin. Auth. Rev. (Zeeland Cmnty. Hosp. Proj.) 2.04%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a) | 11,000,000 | 11,000,000 | |
565,474,890 | |||
New York - 0.9% | |||
Bank of New York Muni. Ctfs. trust various states Participating VRDN Series BNY 02 3, 2.15% (Liquidity Facility Bank of New York, New York) (a)(d)(f) | 5,500,000 | 5,500,000 | |
Shares | |||
Other - 3.8% | |||
Fidelity Municipal Cash Central Fund, 1.99% (b)(c) | 23,236,900 | 23,236,900 | |
TOTAL INVESTMENT PORTFOLIO - 97.7% | 594,211,790 | ||
NET OTHER ASSETS - 2.3% | 13,909,411 | ||
NET ASSETS - 100% | $ 608,121,201 |
Total Cost for Federal Income Tax Purposes $ 594,211,790 |
Security Type Abbreviations |
CP - COMMERCIAL PAPER |
RAN - REVENUE ANTICIPATION NOTE |
TAN - TAX ANTICIPATION NOTE |
VRDN - VARIABLE RATE DEMAND NOTE |
Legend |
(a) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(b) 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 listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(e) Security collateralized by an amount sufficient to pay interest and principal. |
(f) Provides evidence of ownership in one or more underlying municipal bonds. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,700,000 or 0.9% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition | Cost |
Western Townships Utils. Auth. County of Wayne Swr. Disp. Sys. Bonds Series Merlots A96, 1.45%, tender 4/27/05 (Liquidity Facility Wachovia Bank NA) | 11/2/01 | $ 5,700,000 |
Income Tax Information |
The fund hereby designates as capital gain dividends: For dividends with respect to the taxable year ended December 31, 2004, $101,000 or, if different, the net capital gain of such year, and for dividends with respect to the taxable year ended December 31, 2003, $113,000 or, if different, the excess of (a) the net capital gain of such year, over (b) amounts previously designated as capital gain dividends with respect to such year. |
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, 2004 | ||
Assets | ||
Investment in securities, at value (cost $594,211,790) - See accompanying schedule | $ 594,211,790 | |
Cash | 6,053,020 | |
Receivable for fund shares sold | 9,924,457 | |
Interest receivable | 2,116,548 | |
Prepaid expenses | 2,297 | |
Other receivables | 46,805 | |
Total assets | 612,354,917 | |
Liabilities | ||
Payable for fund shares redeemed | $ 3,900,077 | |
Distributions payable | 30,813 | |
Accrued management fee | 187,807 | |
Other affiliated payables | 86,159 | |
Other payables and accrued expenses | 28,860 | |
Total liabilities | 4,233,716 | |
Net Assets | $ 608,121,201 | |
Net Assets consist of: | ||
Paid in capital | $ 607,853,254 | |
Undistributed net investment income | 5,885 | |
Accumulated undistributed net realized gain (loss) on investments | 262,062 | |
Net Assets, for 607,619,085 shares outstanding | $ 608,121,201 | |
Net Asset Value, offering price and redemption price per share ($608,121,201 ÷ 607,619,085 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, 2004 | ||
Investment Income | ||
Interest | $ 7,505,362 | |
Expenses | ||
Management fee | $ 2,218,743 | |
Transfer agent fees | 926,788 | |
Accounting fees and expenses | 84,946 | |
Non-interested trustees' compensation | 3,269 | |
Custodian fees and expenses | 10,371 | |
Registration fees | 34,940 | |
Audit | 32,444 | |
Legal | 5,523 | |
Miscellaneous | 43,852 | |
Total expenses before reductions | 3,360,876 | |
Expense reductions | (101,864) | 3,259,012 |
Net investment income | 4,246,350 | |
Net realized gain (loss) on investment securities | 149,538 | |
Net increase in net assets resulting from operations | $ 4,395,888 |
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 | $ 4,246,350 | $ 3,565,354 |
Net realized gain (loss) | 149,538 | 144,635 |
Net increase in net assets resulting | 4,395,888 | 3,709,989 |
Distributions to shareholders from net investment income | (4,272,226) | (3,565,354) |
Distributions to shareholders from net realized gain | - | (115,393) |
Total distributions | (4,272,226) | (3,680,747) |
Share transactions at net asset value of $1.00 per share | 1,467,990,554 | 1,271,889,015 |
Reinvestment of distributions | 4,200,190 | 3,578,138 |
Cost of shares redeemed | (1,452,485,643) | (1,255,965,674) |
Net increase (decrease) in net assets and shares resulting from share transactions | 19,705,101 | 19,501,479 |
Total increase (decrease) in net assets | 19,828,763 | 19,530,721 |
Net Assets | ||
Beginning of period | 588,292,438 | 568,761,717 |
End of period (including undistributed net investment income of $5,885 and $0, respectively) | $ 608,121,201 | $ 588,292,438 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000 |
Selected Per-Share Data | |||||
Net asset value, | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations | |||||
Net investment income | .007 | .006 | .010 | .023 | .036 |
Net realized and unrealized gain (loss)C | - | - | - | - | - |
Total from investment operations | .007 | .006 | .010 | .023 | .036 |
Distributions from net investment income | (.007) | (.006) | (.010) | (.023) | (.036) |
Distributions from net | - | - C | - | - | - |
Total distributions | (.007) | (.006) | (.010) | (.023) | (.036) |
Net asset value, | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return A | .73% | .63% | 1.03% | 2.35% | 3.69% |
Ratios to Average Net Assets B | |||||
Expenses before expense reductions | .57% | .56% | .56% | .56% | .57% |
Expenses net of voluntary waivers, if any | .57% | .56% | .56% | .56% | .57% |
Expenses net of all reductions | .55% | .55% | .52% | .52% | .57% |
Net investment income | .72% | .61% | 1.02% | 2.32% | 3.63% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 608,121 | $ 588,292 | $ 568,762 | $ 542,017 | $ 507,223 |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary 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 fund.
C 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, 2004
1. Significant Accounting Policies.
Spartan 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. Each fund is authorized to issue an unlimited number of shares. Each fund may be affected by economic and political developments in the state of Michigan. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the income fund and the money market fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities, including restricted securities, are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
As permitted under Rule 2a-7 of the 1940 Act, and certain conditions therein, securities owned by the money market fund are valued initially at cost and thereafter assume a constant amortization to maturity of any discount or premium.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
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Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, each fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the income fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes. There were no significant book-to-tax differences during the period for the money market fund.
Capital accounts within the income fund's financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount and losses deferred due to futures transactions.
The funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost for the income fund as of period end were as follows:
Unrealized appreciation | $ 29,943,810 | |
Unrealized depreciation | (205,632) | |
Net unrealized appreciation (depreciation) | 29,738,178 | |
Undistributed long-term capital gain | 1,385,619 | |
Cost for federal income tax purposes | $ 518,704,361 |
The tax character of distributions paid for the income fund was as follows:
December 31, 2004 | December 31, 2003 | |
Tax-exempt Income | 22,507,564 | 24,202,901 |
Long-term Capital Gains | 3,899,782 | - |
Total | $ 26,407,346 | $ 24,202,901 |
Annual Report
1. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held in the income fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. Each fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable fund's Schedule of Investments. Each fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each 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. Certain funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, for the income fund aggregated $67,849,005 and $72,519,006, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide Spartan Michigan Municipal Income Fund and Fidelity Michigan Municipal Money Market Fund with investment management related services for which the funds pay a monthly management fee. The management fee
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Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
is the sum of an individual fund fee rate and a group fee rate. The individual fund fee rate is applied to each fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, each fund's annual management fee rate expressed as a percentage of each fund's average net assets was as follows:
Individual | Group | Total | |
Spartan Michigan Municipal Income Fund | .25% | .13% | .38% |
Fidelity Michigan Municipal Money Market Fund | .25% | .13% | .38% |
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the funds. Citibank has entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the funds' transfer and shareholder servicing agent and accounting functions. The funds pay account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period, the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Spartan Michigan Municipal Income Fund | .08% | | |
Fidelity Michigan Municipal Money Market Fund | .16% |
Central Funds. The funds may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the funds are recorded as income in the accompanying financial statements. Distributions from the Central Funds are noted in the table below:
Income Distributions | |
Fidelity Michigan Municipal Money Market Fund | $ 147,974 |
Annual Report
5. Committed Line of Credit.
The income fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
Through arrangements with each applicable fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce each applicable fund's expenses. All of the applicable expense reductions are noted in the table below.
Custody | Transfer | |
Spartan Michigan Municipal Income Fund | $ 9,258 | $ 80,039 |
Fidelity Michigan Municipal Money Market Fund | 10,268 | 91,596 |
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 Spartan 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 Spartan 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, 2004 and the results of their operations, the changes in their net assets and the financial highlights for 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 Municipal Trust's and Fidelity Municipal Trust II's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2005
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trusts and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except for William O. McCoy, Dennis J. Dirks, and Kenneth L. Wolfe, each of the Trustees oversees 301 funds advised by FMR or an affiliate. Mr. McCoy oversees 303 funds advised by FMR or an affiliate. Mr. Dirks and Mr. Wolfe oversee 233 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
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" (as defined in the 1940 Act) may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (74)** | |
Year of Election or Appointment: 1984 or 1991 Trustee of Fidelity Municipal Trust (1984) and Fidelity Municipal Trust II (1991). Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (43)** | |
Year of Election or Appointment: 2001 Senior Vice President of Michigan Municipal Money Market (2001) and Spartan Michigan Municipal Income (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (50) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (52) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* 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.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (56) | |
Year of Election or Appointment: 2005 Mr. Dirks also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). | |
Robert M. Gates (61) | |
Year of Election or Appointment: 1997 Dr. Gates is Vice Chairman of the non-interested Trustees (2005). Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001), and Brinker International (restaurant management, 2003). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
George H. Heilmeier (68) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001), Teletech Holdings (customer management services), and HRL Laboratories (private research and development, 2004). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE) (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), and Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002). | |
Marie L. Knowles (58) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (60) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Co-Chairman and a Director of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Italtel Holding S.p.A. (telecommunications (Milan, Italy), 2004) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (71) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals), where he served as CEO until April 1998, retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. He is a member of the Executive Committee of the Independent Director's Council of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (71) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), and Progress Energy, Inc. (electric utility). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
Cornelia M. Small (60) | |
Year of Election or Appointment: 2005 Trustee of Fidelity Municipal Trust and Fidelity Municipal Trust II. Ms. Small is a member (2000) and Chairperson (2002) of the Investment Committee, and a member (2002) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1998). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (65) | |
Year of Election or Appointment: 2001 or 2002 Trustee of Fidelity Municipal Trust II (2001) and Fidelity Municipal Trust (2002). Mr. Stavropoulos is Chairman of the Board (2000), CEO (2002), a position he previously held from 1995-2000, Chairman of the Executive Committee (2000), and a Member of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (65) | |
Year of Election or Appointment: 2005 Mr. Wolfe also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003), Bausch & Lomb, Inc., and Revlon Inc. (2004). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (61) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust and Fidelity Municipal Trust II. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Dwight D. Churchill (51) | |
Year of Election or Appointment: 1997 or 2000 Vice President of Michigan Municipal Money Market (2000) and Spartan Michigan Municipal Income (1997). He serves as Head of Fidelity's Fixed-Income Division (2000), Vice President of Fidelity's Money Market Funds (2000), Vice President of Fidelity's Bond Funds (1997), and Senior Vice President of FIMM (2000) and FMR (1997). Mr. Churchill joined Fidelity in 1993 as Vice President and Group Leader of Taxable Fixed-Income Investments. | |
Charles S. Morrison (44) | |
Year of Election or Appointment: 2002 Vice President of Spartan Michigan Municipal Income. Mr. Morrison also serves as Vice President of Fidelity's Bond Funds (2002), and Vice President of certain Asset Allocation and Balanced Funds (2002). He serves as Vice President (2002) and Bond Group Leader (2002) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002) and FMR (2002). Mr. Morrison joined Fidelity in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
David L. Murphy (56) | |
Year of Election or Appointment: 2002 Vice President of Michigan Municipal Money Market. Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002) and Vice President of certain Asset Allocation Funds (2003). He serves as Senior Vice President (2000) and Money Market Group Leader (2002) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of FIMM (2003) and a Vice President of FMR (2000). Previously, Mr. Murphy served as Bond Group Leader (2000-2002) and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002). Mr. Murphy joined Fidelity in 1989 as a portfolio manager in the Bond Group. | |
Michael Widrig (41) | |
Year of Election or Appointment: 2004 Vice President of Michigan Municipal Money Market. Mr. Widrig also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Widrig worked as an analyst and manager. | |
Douglas T. McGinley (39) | |
Year of Election or Appointment: 2004 Vice President of Spartan Michigan Municipal Income. Mr. McGinley also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. McGinley worked as an analyst and manager. | |
Eric D. Roiter (56) | |
Year of Election or Appointment: 1998 Secretary of Michigan Municipal Money Market and Spartan Michigan Municipal Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Vice President and Secretary of FDC; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present) and Fidelity Management & Research (Far East) Inc. (2001-present); and Assistant Secretary of Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). | |
Stuart Fross (45) | |
Year of Election or Appointment: 2003 Assistant Secretary of Michigan Municipal Money Market and Spartan Michigan Municipal Income. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Christine Reynolds (46) | |
Year of Election or Appointment: 2004 President, Treasurer, and Anti-Money Laundering (AML) officer of Michigan Municipal Money Market and Spartan Michigan Municipal Income. Ms. Reynolds also serves as President, Treasurer, and AML officer of other Fidelity funds (2004) and is a Vice President (2003) and an employee (2002) of FMR. Before joining Fidelity Investments, Ms. Reynolds worked at PricewaterhouseCoopers LLP (PwC) (1980-2002), where she was most recently an audit partner with PwC's investment management practice. | |
Timothy F. Hayes (54) | |
Year of Election or Appointment: 2002 Chief Financial Officer of Michigan Municipal Money Market and Spartan Michigan Municipal Income. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
Kenneth A. Rathgeber (57) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Michigan Municipal Money Market and Spartan Michigan Municipal Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004) and Executive Vice President of Risk Oversight for Fidelity Investments (2002). Previously, he served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
John R. Hebble (46) | |
Year of Election or Appointment: 2003 Deputy Treasurer of Michigan Municipal Money Market and Spartan Michigan Municipal Income. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
Kimberley H. Monasterio (41) | |
Year of Election or Appointment: 2004 Deputy Treasurer of Michigan Municipal Money Market and Spartan Michigan Municipal Income. Ms. Monasterio also serves as Deputy Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
John H. Costello (58) | |
Year of Election or Appointment: 1986 or 1990 Assistant Treasurer of Michigan Municipal Money Market (1990) and Spartan Michigan Municipal Income (1986). Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (50) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Michigan Municipal Money Market and Spartan Michigan Municipal Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (49) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Michigan Municipal Money Market and Spartan Michigan Municipal Income. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Kenneth B. Robins (35) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Michigan Municipal Money Market and Spartan Michigan Municipal Income. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Annual Report
Distributions
The Board of Trustees of Spartan Michigan Municipal Income Fund voted to pay on February 7, 2005, to shareholders of record at the opening of business on February 4, 2005, a distribution of $.035 per share derived from capital gains realized from sales of portfolio securities.
During fiscal year ended 2004, 100% and 100% of Spartan Michigan Municipal Income Fund and Fidelity Michigan Municipal Money Market Fund's income dividends were free from federal income tax, and 2.51% and 26.86% of Spartan Michigan Municipal Income Fund and Fidelity Michigan Municipal Money Market Fund's income dividends were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2005 of amounts for use in preparing 2004 income tax returns.
Annual Report
Spartan Michigan Municipal Income Fund
Proxy Voting Results
A special meeting of Spartan Michigan Municipal Income Fund's shareholders was held on April 14, 2004. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* | ||
# of | % of | |
Affirmative | 3,415,899,540.41 | 73.098 |
Against | 857,186,718.73 | 18.343 |
Abstain | 194,806,370.40 | 4.169 |
Broker | 205,155,704.48 | 4.390 |
TOTAL | 4,673,048,334.02 | 100.000 |
PROPOSAL 2 | ||
To elect a Board of Trustees.* | ||
# of | % of | |
J. Michael Cook | ||
Affirmative | 4,338,349,812.56 | 92.838 |
Withheld | 334,698,521.46 | 7.162 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ralph F. Cox | ||
Affirmative | 4,334,671,421.01 | 92.759 |
Withheld | 338,376,913.01 | 7.241 |
TOTAL | 4,673,048,334.02 | 100.000 |
Laura B. Cronin | ||
Affirmative | 4,332,816,177.06 | 92.719 |
Withheld | 340,232,156.96 | 7.281 |
TOTAL | 4,673,048,334.02 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,336,851,658.96 | 92.806 |
Withheld | 336,196,675.06 | 7.194 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
George H. Heilmeier | ||
Affirmative | 4,334,549,149.07 | 92.756 |
Withheld | 338,499,184.95 | 7.244 |
TOTAL | 4,673,048,334.02 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 4,327,320,608.55 | 92.602 |
Withheld | 345,727,725.47 | 7.398 |
TOTAL | 4,673,048,334.02 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 4,322,104,507.32 | 92.490 |
Withheld | 350,943,826.70 | 7.510 |
TOTAL | 4,673,048,334.02 | 100.000 |
Donald J. Kirk | ||
Affirmative | 4,335,814,201.97 | 92.783 |
Withheld | 337,234,132.05 | 7.217 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marie L. Knowles | ||
Affirmative | 4,333,892,089.64 | 92.742 |
Withheld | 339,156,244.38 | 7.258 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,340,856,926.26 | 92.891 |
Withheld | 332,191,407.76 | 7.109 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marvin L. Mann | ||
Affirmative | 4,336,736,818.96 | 92.803 |
Withheld | 336,311,515.06 | 7.197 |
TOTAL | 4,673,048,334.02 | 100.000 |
William O. McCoy | ||
Affirmative | 4,338,426,324.60 | 92.839 |
Withheld | 334,622,009.42 | 7.161 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
Robert L. Reynolds | ||
Affirmative | 4,339,017,198.22 | 92.852 |
Withheld | 334,031,135.80 | 7.148 |
TOTAL | 4,673,048,334.02 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,338,546,239.15 | 92.842 |
Withheld | 334,502,094.87 | 7.158 |
TOTAL | 4,673,048,334.02 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Annual Report
Fidelity Michigan Municipal Money Market Fund
Proxy Voting Results
A special meeting of Fidelity Michigan Municipal Money Market Fund's shareholders was held on April 14, 2004. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To amend the Trust Instrument to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* | ||
# of | % of | |
Affirmative | 636,855,022.09 | 76.849 |
Against | 150,887,633.15 | 18.208 |
Abstain | 40,713,763.86 | 4.912 |
Broker | 253,332.00 | .031 |
TOTAL | 828,709,751.10 | 100.000 |
PROPOSAL 2 | ||
To elect a Board of Trustees.* | ||
# of | % of | |
J. Michael Cook | ||
Affirmative | 767,157,627.90 | 92.573 |
Withheld | 61,552,123.20 | 7.427 |
TOTAL | 828,709,751.10 | 100.000 |
Ralph F. Cox | ||
Affirmative | 766,126,728.93 | 92.448 |
Withheld | 62,583,022.17 | 7.552 |
TOTAL | 828,709,751.10 | 100.000 |
Laura B. Cronin | ||
Affirmative | 767,351,050.02 | 92.596 |
Withheld | 61,358,701.08 | 7.404 |
TOTAL | 828,709,751.10 | 100.000 |
Robert M. Gates | ||
Affirmative | 767,532,295.68 | 92.618 |
Withheld | 61,177,455.42 | 7.382 |
TOTAL | 828,709,751.10 | 100.000 |
# of | % of | |
George H. Heilmeier | ||
Affirmative | 766,078,246.56 | 92.442 |
Withheld | 62,631,504.54 | 7.558 |
TOTAL | 828,709,751.10 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 765,060,384.36 | 92.319 |
Withheld | 63,649,366.74 | 7.681 |
TOTAL | 828,709,751.10 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 764,319,910.03 | 92.230 |
Withheld | 64,389,841.07 | 7.770 |
TOTAL | 828,709,751.10 | 100.000 |
Donald J. Kirk | ||
Affirmative | 765,953,858.04 | 92.427 |
Withheld | 62,755,893.06 | 7.573 |
TOTAL | 828,709,751.10 | 100.000 |
Marie L. Knowles | ||
Affirmative | 767,230,609.26 | 92.581 |
Withheld | 61,479,141.84 | 7.419 |
TOTAL | 828,709,751.10 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 767,065,754.21 | 92.561 |
Withheld | 61,643,996.89 | 7.439 |
TOTAL | 828,709,751.10 | 100.000 |
Marvin L. Mann | ||
Affirmative | 765,939,293.51 | 92.426 |
Withheld | 62,770,457.59 | 7.574 |
TOTAL | 828,709,751.10 | 100.000 |
William O. McCoy | ||
Affirmative | 765,995,462.29 | 92.432 |
Withheld | 62,714,288.81 | 7.568 |
TOTAL | 828,709,751.10 | 100.000 |
# of | % of | |
Robert L. Reynolds | ||
Affirmative | 767,275,847.55 | 92.587 |
Withheld | 61,433,903.55 | 7.413 |
TOTAL | 828,709,751.10 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 766,682,881.97 | 92.515 |
Withheld | 62,026,869.13 | 7.485 |
TOTAL | 828,709,751.10 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Annual Report
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Annual Report
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Spartan®
Minnesota Municipal Income
Fund
Annual Report
December 31, 2004
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
Proxy Voting Results |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2004 | Past 1 | Past 5 | Past 10 |
Spartan® MN Municipal Income Fund | 3.92% | 6.57% | 6.37% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Spartan® Minnesota Municipal Income Fund on December 31, 1994. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Christine Thompson, Portfolio Manager of Spartan® Minnesota Municipal Income Fund
Despite persistent inflation concerns and the Federal Reserve Board raising interest rates multiple times in the second half of the year, the municipal bond market registered positive performance for the year ending December 31, 2004. In that time, the Lehman Brothers® Municipal Bond Index rose 4.48%. In comparison, the Lehman Brothers Aggregate Bond Index - a proxy of the overall investment-grade taxable debt market - returned 4.34%. This marks the second consecutive year in which tax-free munis outperformed taxable bonds on an absolute basis. Demand for munis generally was strong in 2004, except for a rough patch in the spring when strong labor markets fueled expectations of rising inflation. Shortly thereafter, the Fed began a series of five 0.25 percentage-point interest rate hikes between June 30 and December 14. Despite fears that munis might not react well to such actions, they responded with positive returns in each of the year's final six months, partly due to reassurances by the Fed that it intended to raise rates in a "measured fashion."
For the year ending December 31, 2004, the fund returned 3.92%, while the LipperSM Minnesota Municipal Debt Funds Average rose 3.87% and the Lehman Brothers Minnesota Enhanced Municipal Bond Index gained 4.22%. Minnesota municipal bonds performed in line with the national muni market, as stronger economic conditions both nationally and within the state helped boost revenues for many municipal issuers, but detracted from bond returns as interest rates rose. I believe the fund's outperformance of its Lipper peer group average was aided by my approach to managing the fund's interest rate sensitivity. I avoided positioning the fund to benefit from a specific interest rate outlook, a strategy that was particularly advantageous given the uncertainty surrounding the future level of interest rates. Also aiding performance were my decisions about when to own bonds of various maturities at various times. Detracting from performance was my emphasis on higher-quality bonds in a year when lower-quality investment-grade and non-investment-grade munis outperformed due to strong investor demand for their higher yields, which helped cushion the price declines munis experienced at times. The fund also held some bonds issued in Puerto Rico, which are free from taxes in all 50 states and were, at times, attractive alternatives to Minnesota bonds due to their structural characteristics - such as their coupons or call features - as well as their prices.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover 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, 2004 to December 31, 2004).
Actual Expenses
The first line of the table below 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 table below 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.
Annual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | |
Actual | $ 1,000.00 | $ 1,046.00 | $ 2.57 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,022.62 | $ 2.54 |
* Expenses are equal to the Fund's annualized expense ratio of .50%; multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Annual Report
Investment Changes
Top Five Sectors as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
General Obligations | 51.7 | 50.2 |
Electric Utilities | 13.9 | 12.9 |
Health Care | 12.3 | 10.9 |
Transportation | 5.3 | 4.6 |
Special Tax | 4.7 | 4.3 |
Average Years to Maturity as of December 31, 2004 | ||
6 months ago | ||
Years | 12.8 | 13.2 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2004 | ||
6 months ago | ||
Years | 6.2 | 6.7 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2004 | As of June 30, 2004 | ||||||
![]() | AAA 60.8% | ![]() | AAA 56.8% | ||||
![]() | AA,A 34.4% | ![]() | AA,A 36.3% | ||||
![]() | BBB 3.5% | ![]() | BBB 2.8% | ||||
![]() | BB and Below 0.0% | ![]() | BB and Below 1.1% | ||||
![]() | Not Rated 0.2% | ![]() | Not Rated 0.0% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
Annual Report
Investments December 31, 2004
Showing Percentage of Net Assets
Municipal Bonds - 98.9% | ||||
Principal | Value | |||
Minnesota - 94.2% | ||||
Anoka-Hennepin Independent School District #11: | ||||
Series 2004 B, 5% 2/1/20 | $ 1,880,000 | $ 1,998,327 | ||
Series A, 5.75% 2/1/20 (Pre-Refunded to | 3,950,000 | 4,452,559 | ||
Brainerd Independent School District #181 Series A: | ||||
5.375% 2/1/17 (FGIC Insured) | 4,705,000 | 5,264,001 | ||
5.375% 2/1/19 (FGIC Insured) | 2,700,000 | 2,994,327 | ||
Brooklyn Ctr. Independent School District #286 5.1% 2/1/31 (FGIC Insured) | 6,000,000 | 6,223,140 | ||
Centennial Independent School District #12: | ||||
Series 1996 A, 5.625% 2/1/16 | 1,000,000 | 1,083,200 | ||
Series A, 5% 2/1/19 (FSA Insured) | 580,000 | 621,308 | ||
Elk River Independent School District #728 Series A, 5% 2/1/17 (FGIC Insured) | 2,000,000 | 2,187,660 | ||
Hastings Independent School District #200 Series A, 5% 2/1/22 | 4,750,000 | 4,917,865 | ||
Hopkins Independent School District #270: | ||||
5% 2/1/11 | 1,250,000 | 1,380,513 | ||
5% 2/1/16 (FGIC Insured) | 1,350,000 | 1,463,535 | ||
5.125% 2/1/17 (FGIC Insured) | 1,015,000 | 1,106,228 | ||
Jackson County Central Independent School District #2895 5% 2/1/21 (FSA Insured) | 1,220,000 | 1,299,886 | ||
Lake Superior Independent School District #381 | ||||
5% 4/1/15 (FSA Insured) | 1,970,000 | 2,165,010 | ||
5% 4/1/16 (FSA Insured) | 2,065,000 | 2,255,558 | ||
5% 4/1/17 (FSA Insured) | 2,165,000 | 2,351,969 | ||
5% 4/1/18 (FSA Insured) | 1,260,000 | 1,363,244 | ||
Lakeville Independent School District #194 Series A, 5% 2/1/22 (FGIC Insured) | 1,000,000 | 1,065,540 | ||
Mankato Independent School District #77 Series A, 5% 2/1/12 (FSA Insured) | 1,605,000 | 1,726,515 | ||
Maple Grove Gen. Oblig. Impt. Series A, 5.2% 2/1/17 | 1,120,000 | 1,163,400 | ||
Metropolitan Council Minneapolis-Saint Paul Metropolitan Area Series 2004 A: | ||||
5% 9/1/07 (a) | 1,350,000 | 1,419,107 | ||
5% 9/1/12 (a) | 875,000 | 956,366 | ||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev.: | ||||
(Health Partners Oblig. Group Proj.): | ||||
5.875% 12/1/29 | 800,000 | 835,736 | ||
6% 12/1/19 | 2,415,000 | 2,635,683 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Minnesota - continued | ||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev.: - continued | ||||
(Healthspan Corp. Proj.) Series A, 4.75% 11/15/18 (AMBAC Insured) | $ 4,500,000 | $ 4,578,750 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Series 13, 5.25% 1/1/11 (b) | 2,840,000 | 3,070,324 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.: | ||||
Series 1999 A, 5.125% 1/1/31 (FGIC Insured) | 3,375,000 | 3,473,246 | ||
Series 2000 A, 5.75% 1/1/32 (FGIC Insured) | 1,000,000 | 1,097,100 | ||
Series 2001 C: | ||||
5.25% 1/1/32 (FGIC Insured) | 1,000,000 | 1,044,320 | ||
5.5% 1/1/16 (FGIC Insured) | 2,500,000 | 2,775,150 | ||
Series A, 5% 1/1/19 (AMBAC Insured) | 4,000,000 | 4,208,400 | ||
Series B: | ||||
5.25% 1/1/11 (AMBAC Insured) (b) | 3,475,000 | 3,709,146 | ||
5.4% 1/1/09 (FGIC Insured) (b) | 1,375,000 | 1,493,333 | ||
5.625% 1/1/13 (FGIC Insured) (b) | 1,000,000 | 1,096,180 | ||
Minneapolis Art Ctr. Facilities Rev. (Walker Art Ctr. Proj.) 5.125% 7/1/21 | 1,250,000 | 1,322,350 | ||
Minneapolis Cmnty. Dev. Agcy. Tax Increment Rev.: | ||||
0% 9/1/07 (MBIA Insured) | 2,860,000 | 2,662,689 | ||
0% 9/1/08 (MBIA Insured) | 4,600,000 | 4,153,892 | ||
Minneapolis Gen. Oblig.: | ||||
(Sports Arena Proj.) 5.125% 10/1/20 | 2,565,000 | 2,701,099 | ||
Series B, 5.1% 9/1/08 | 2,000,000 | 2,037,620 | ||
Minneapolis Health Care Sys. Rev. (Allina Health Sys. Proj.) Series 2002 A, 6% 11/15/18 | 2,655,000 | 2,932,713 | ||
Minneapolis Rev. (Univ. of Minnesota Gateway Proj.) Series 1997 A, 5.25% 12/1/24 | 1,900,000 | 1,971,858 | ||
Minneapolis Spl. School District #1: | ||||
5% 2/1/15 (MBIA Insured) | 1,020,000 | 1,108,434 | ||
5.3% 2/1/14 (Pre-Refunded to 2/1/08 @ 100) (c) | 3,275,000 | 3,523,343 | ||
Minneapolis Spl. School District #1 Ctfs. of Prtn.: | ||||
Series B, 5% 2/1/13 | 2,575,000 | 2,700,428 | ||
5.5% 2/1/21 (MBIA Insured) | 1,305,000 | 1,415,077 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Health Care Sys. Proj.) Series A, 6.375% 11/15/29 | 3,000,000 | 3,277,470 | ||
Minnesota Gen. Oblig.: | ||||
(Duluth Arpt. Proj.) Series B, 6.25% 8/1/14 (b) | 1,000,000 | 1,022,940 | ||
5% 8/1/16 | 3,500,000 | 3,824,590 | ||
5% 8/1/18 | 10,775,000 | 11,713,170 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Minnesota - continued | ||||
Minnesota Gen. Oblig.: - continued | ||||
5.2% 5/1/07 | $ 3,750,000 | $ 3,892,688 | ||
5.25% 8/1/13 | 755,000 | 829,428 | ||
5.5% 6/1/17 | 2,150,000 | 2,383,469 | ||
Minnesota Higher Ed. Facilities Auth. Rev.: | ||||
(Carleton College Proj.): | ||||
Series 3L 1, 5.75% 11/1/12 | 2,000,000 | 2,085,000 | ||
Series 4N, 5% 11/1/18 | 2,000,000 | 2,099,080 | ||
(Hamline Univ. Proj.): | ||||
Series 4I, 6% 10/1/12 | 2,000,000 | 2,098,040 | ||
Series 5B, 5.95% 10/1/19 | 600,000 | 642,522 | ||
(Saint Johns Univ. Proj.) Series 4L, 5.4% 10/1/22 | 3,500,000 | 3,657,115 | ||
(Saint Thomas Univ. Proj.) Series 4M, 5.35% 4/1/17 | 1,500,000 | 1,572,720 | ||
Minnesota Hsg. Fin. Agcy. (Single Family Mtg. Prog.) Series H, 6.5% 1/1/26 (b) | 1,410,000 | 1,416,260 | ||
Minnesota Pub. Facilities Auth. Drinking Wtr. Rev. | 2,500,000 | 2,698,700 | ||
Minnesota Pub. Facilities Auth. Wtr. Poll. Cont. Rev.: | ||||
Series A: | ||||
5% 3/1/16 | 1,000,000 | 1,046,530 | ||
6% 3/1/07 | 2,605,000 | 2,807,044 | ||
Series B: | ||||
5.125% 3/1/13 (Pre-Refunded to 3/1/09 @ 100) (c) | 1,000,000 | 1,103,800 | ||
5.125% 3/1/15 (Pre-Refunded to 3/1/09 @ 100) (c) | 5,000,000 | 5,519,000 | ||
Minnesota Retirement Sys. Bldg. Rev.: | ||||
5.55% 6/1/14 | 590,000 | 654,593 | ||
5.6% 6/1/15 | 590,000 | 659,756 | ||
5.65% 6/1/16 | 625,000 | 693,556 | ||
5.7% 6/1/17 | 900,000 | 1,010,367 | ||
5.75% 6/1/18 | 975,000 | 1,098,513 | ||
5.75% 6/1/19 | 1,050,000 | 1,182,458 | ||
5.8% 6/1/20 | 1,000,000 | 1,127,560 | ||
5.875% 6/1/22 | 2,425,000 | 2,749,732 | ||
Mounds View Independent School District #621 | 3,000,000 | 3,336,180 | ||
Northeast Metropolitan Intermediate School District #916 Ctfs. of Prtn. 5% 1/1/13 | 1,000,000 | 1,077,010 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev.: | ||||
Series B, 4.75% 1/1/20 (AMBAC Insured) | 3,500,000 | 3,611,265 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Minnesota - continued | ||||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev.: - continued | ||||
5.25% 1/1/13 (FSA Insured) | $ 1,500,000 | $ 1,642,500 | ||
5.375% 1/1/14 (FSA Insured) | 8,500,000 | 9,363,940 | ||
Osseo Independent School District #279: | ||||
(School Bldg. Proj.): | ||||
Series 2000 A, 5.25% 2/1/21 | 2,625,000 | 2,826,731 | ||
Series A: | ||||
5.75% 2/1/11 | 2,420,000 | 2,751,129 | ||
5.75% 2/1/12 | 3,100,000 | 3,500,427 | ||
Series A, 5.25% 2/1/14 (FSA Insured) | 2,705,000 | 3,008,176 | ||
Series B, 5% 2/1/13 | 2,000,000 | 2,159,500 | ||
Owatonna Pub. Utils. Commission Pub. Utils. Rev.: | ||||
5% 1/1/11 (AMBAC Insured) | 720,000 | 794,246 | ||
5% 1/1/13 (AMBAC Insured) | 800,000 | 887,704 | ||
5% 1/1/15 (AMBAC Insured) | 715,000 | 780,330 | ||
Prior Lake Ind. School District #719 Series 2000, 5.5% 2/1/15 (FSA Insured) | 1,500,000 | 1,658,835 | ||
Ramsey County Gen. Oblig. Series A, 5% 2/1/18 | 1,530,000 | 1,653,242 | ||
Robbinsdale Independent School District #281: | ||||
5% 2/1/09 | 2,035,000 | 2,218,415 | ||
5% 2/1/16 (FSA Insured) | 3,425,000 | 3,713,043 | ||
5% 2/1/17 (FSA Insured) | 2,535,000 | 2,735,088 | ||
5% 2/1/18 (FSA Insured) | 2,520,000 | 2,709,151 | ||
Rochester Health Care Facilities Rev.: | ||||
(Mayo Foundation Proj.) Series A, 5.5% 11/15/27 | 4,750,000 | 5,031,818 | ||
(Mayo Foundation/Mayo Med. Ctr. Proj.) Series I: | ||||
5.875% 11/15/08 | 1,000,000 | 1,126,990 | ||
5.9% 11/15/09 | 1,000,000 | 1,141,400 | ||
Roseville Independent School District #623 (School District Cr. Enhancement Prog.) Series A, 5% 2/1/15 (FSA Insured) | 1,015,000 | 1,097,611 | ||
Saint Cloud Health Care Rev. (Saint Cloud Hosp. Group Oblig. Proj.) Series A: | ||||
5.75% 5/1/26 (FSA Insured) | 7,020,000 | 7,781,179 | ||
5.875% 5/1/30 (FSA Insured) | 4,000,000 | 4,467,960 | ||
6.25% 5/1/20 (FSA Insured) | 2,760,000 | 3,167,266 | ||
Saint Cloud Hosp. Facilities Rev. (Saint Cloud Hosp. Proj.) Series B, 5% 7/1/20 (AMBAC Insured) | 1,000,000 | 1,027,980 | ||
Saint Louis Park Health Care Facilities Rev. (Park Nicollet Health Services Proj.) Series B, 5.5% 7/1/25 | 2,000,000 | 2,113,500 | ||
Saint Louis Park Independent School District #283: | ||||
5.65% 2/1/16 | 2,630,000 | 2,894,157 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Minnesota - continued | ||||
Saint Louis Park Independent School District #283: - continued | ||||
5.75% 2/1/20 | $ 3,765,000 | $ 4,152,946 | ||
Saint Michael Independent School District #885 5% 2/1/27 (FSA Insured) | 7,000,000 | 7,269,920 | ||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Regions Hosp. Proj.) 5.3% 5/15/28 | 1,250,000 | 1,265,913 | ||
Saint Paul Independent School District #625: | ||||
Series 2000 A, 5.5% 2/1/21 | 1,060,000 | 1,164,951 | ||
Series A, 5% 2/1/17 (FSA Insured) | 220,000 | 238,676 | ||
Series B: | ||||
5% 2/1/16 (FSA Insured) | 1,025,000 | 1,128,013 | ||
5% 2/1/17 (FSA Insured) | 1,300,000 | 1,421,537 | ||
5% 2/1/18 (FSA Insured) | 395,000 | 426,817 | ||
5.8% 2/1/12 | 1,200,000 | 1,203,432 | ||
Series C, 5% 2/1/21 | 1,000,000 | 1,060,410 | ||
Saint Paul Port Auth. Energy Park Tax Increment Rev. 5% 2/1/08 (FSA Insured) | 2,500,000 | 2,682,150 | ||
Saint Paul Port Auth. Lease Rev.: | ||||
Series 2003 11, 5.25% 12/1/20 | 3,000,000 | 3,292,650 | ||
Series 2003 12, 5.25% 12/1/18 | 3,185,000 | 3,528,502 | ||
Shakopee Health Care Facilities Rev. (Saint Francis Reg'l. Med. Ctr. Proj.) 5.25% 9/1/34 | 2,500,000 | 2,524,350 | ||
South Washington County Independent School District #833 Series A: | ||||
5.4% 2/1/15 | 3,925,000 | 4,280,173 | ||
5.5% 2/1/19 (MBIA Insured) | 1,000,000 | 1,098,520 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev.: | ||||
Series 2002 A: | ||||
5% 1/1/10 (AMBAC Insured) | 1,615,000 | 1,770,686 | ||
5% 1/1/12 (AMBAC Insured) | 2,660,000 | 2,943,689 | ||
Series A: | ||||
0% 1/1/19 (MBIA Insured) | 5,210,000 | 2,803,293 | ||
5% 1/1/10 (MBIA Insured) | 2,720,000 | 2,982,208 | ||
5.25% 1/1/16 (AMBAC Insured) | 3,360,000 | 3,800,798 | ||
5% 1/1/07 (AMBAC Insured) | 2,815,000 | 2,964,167 | ||
Spring Lake Park Ind. School District #16 Series B: | ||||
5% 2/1/15 (MBIA Insured) | 2,085,000 | 2,280,219 | ||
5% 2/1/16 (MBIA Insured) | 2,230,000 | 2,432,283 | ||
5% 2/1/17 (MBIA Insured) | 2,400,000 | 2,603,736 | ||
Suburban Hennepin Reg'l. Park District 5% 2/1/12 | 1,000,000 | 1,068,980 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Minnesota - continued | ||||
Waconia Independent School District #110 Series A: | ||||
5% 2/1/08 (FSA Insured) | $ 800,000 | $ 862,464 | ||
5% 2/1/09 (FSA Insured) | 850,000 | 927,639 | ||
5% 2/1/10 (FSA Insured) | 900,000 | 988,983 | ||
Washington County Gen. Oblig. 5.5% 2/1/21 | 1,450,000 | 1,593,565 | ||
Wayzata Ind. School District #284: | ||||
Series 2002 A, 4.5% 2/1/08 | 1,920,000 | 2,038,118 | ||
Series B, 5% 2/1/16 (FSA Insured) | 1,005,000 | 1,106,003 | ||
Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Rev. Series A: | ||||
5% 1/1/30 (MBIA Insured) | 1,000,000 | 1,033,920 | ||
5.375% 1/1/08 (AMBAC Insured) | 3,900,000 | 4,090,476 | ||
5.4% 1/1/09 (AMBAC Insured) | 4,325,000 | 4,535,974 | ||
5.5% 1/1/11 (AMBAC Insured) | 1,000,000 | 1,049,750 | ||
5.5% 1/1/12 (AMBAC Insured) | 1,000,000 | 1,049,750 | ||
6.375% 1/1/16 (Escrowed to Maturity) (c) | 1,505,000 | 1,750,180 | ||
Western Minnesota Muni. Pwr. Agcy. Transmission Rev.: | ||||
Series 2001 A, 5.5% 1/1/08 (AMBAC Insured) | 1,125,000 | 1,226,025 | ||
Series A, 5.5% 1/1/09 (AMBAC Insured) | 1,000,000 | 1,107,600 | ||
334,898,469 | ||||
Puerto Rico - 4.7% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev.: | ||||
Series 1998 AA, 5.5% 7/1/19 (MBIA Insured) | 1,200,000 | 1,416,840 | ||
Series Y, 5.5% 7/1/36 (FSA Insured) | 2,680,000 | 2,979,436 | ||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev. Series D, 5.25% 7/1/38 | 2,500,000 | 2,584,350 | ||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A: | ||||
5.5% 10/1/32 (Escrowed to Maturity) (c) | 3,700,000 | 4,042,546 | ||
5.5% 10/1/40 (Escrowed to Maturity) (c) | 1,500,000 | 1,632,390 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Puerto Rico - continued | ||||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.: | ||||
Series HH, 5.25% 7/1/29 (FSA Insured) | $ 3,000,000 | $ 3,173,790 | ||
Series QQ, 5.5% 7/1/18 (XL Cap. Assurance, Inc. Insured) (a) | 600,000 | 686,460 | ||
16,515,812 |
TOTAL INVESTMENT PORTFOLIO - 98.9% (Cost $333,075,691) | 351,414,281 | ||
NET OTHER ASSETS - 1.1% | 4,046,939 | ||
NET ASSETS - 100% | $ 355,461,220 |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(c) Security collateralized by an amount sufficient to pay interest and principal. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 51.7% |
Electric Utilities | 13.9% |
Health Care | 12.3% |
Transportation | 5.3% |
Others* (individually less than 5%) | 16.8% |
100.0% |
* Includes net other assets |
Income Tax Information |
The fund hereby designates as capital gain dividends: For dividends with respect to the taxable year ended December 31, 2004, $906,000, or, if different, the net capital gain of such year; and for dividends with respect to the taxable year ended December 31, 2003, $889,000, or, if different, the excess of: (a) the net capital gain of such year, over (b) amounts previously designated as capital gain dividends with respect to such year. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
December 31, 2004 | ||
Assets | ||
Investment in securities, at value (cost $333,075,691) - See accompanying schedule | $ 351,414,281 | |
Cash | 1,925,661 | |
Receivable for fund shares sold | 71,096 | |
Interest receivable | 5,854,233 | |
Prepaid expenses | 1,340 | |
Other affiliated receivables | 3 | |
Other receivables | 6,192 | |
Total assets | 359,272,806 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 3,060,798 | |
Payable for fund shares redeemed | 221,448 | |
Distributions payable | 345,648 | |
Accrued management fee | 110,260 | |
Other affiliated payables | 32,723 | |
Other payables and accrued expenses | 40,709 | |
Total liabilities | 3,811,586 | |
Net Assets | $ 355,461,220 | |
Net Assets consist of: | ||
Paid in capital | $ 337,217,275 | |
Undistributed net investment income | 93,606 | |
Accumulated undistributed net realized gain (loss) on investments | (188,251) | |
Net unrealized appreciation (depreciation) on investments | 18,338,590 | |
Net Assets, for 30,601,659 shares outstanding | $ 355,461,220 | |
Net Asset Value, offering price and redemption price per share ($355,461,220 ÷ 30,601,659 shares) | $ 11.62 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Year ended December 31, 2004 | ||
Investment Income | ||
Interest | $ 15,449,644 | |
Expenses | ||
Management fee | $ 1,305,462 | |
Transfer agent fees | 277,757 | |
Accounting fees and expenses | 88,986 | |
Non-interested trustees' compensation | 1,978 | |
Custodian fees and expenses | 6,553 | |
Registration fees | 22,946 | |
Audit | 41,183 | |
Legal | 7,958 | |
Miscellaneous | 10,237 | |
Total expenses before reductions | 1,763,060 | |
Expense reductions | (57,275) | 1,705,785 |
Net investment income | 13,743,859 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on investment securities | 902,606 | |
Change in net unrealized appreciation (depreciation) on investment securities | (1,632,305) | |
Net gain (loss) | (729,699) | |
Net increase (decrease) in net assets resulting from operations | $ 13,014,160 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 13,743,859 | $ 13,771,276 |
Net realized gain (loss) | 902,606 | 2,512,792 |
Change in net unrealized appreciation (depreciation) | (1,632,305) | 1,291,690 |
Net increase (decrease) in net assets resulting | 13,014,160 | 17,575,758 |
Distributions to shareholders from net investment income | (13,769,100) | (13,684,949) |
Distributions to shareholders from net realized gain | (1,709,461) | (1,935,603) |
Total distributions | (15,478,561) | (15,620,552) |
Share transactions | 59,618,414 | 47,539,027 |
Reinvestment of distributions | 11,248,140 | 11,834,902 |
Cost of shares redeemed | (56,824,374) | (61,886,380) |
Net increase (decrease) in net assets resulting from share transactions | 14,042,180 | (2,512,451) |
Redemption fees | 3,041 | 2,193 |
Total increase (decrease) in net assets | 11,580,820 | (555,052) |
Net Assets | ||
Beginning of period | 343,880,400 | 344,435,452 |
End of period (including undistributed net investment income of $93,606 and undistributed net investment income of $247,426, respectively) | $ 355,461,220 | $ 343,880,400 |
Other Information Shares | ||
Sold | 5,142,342 | 4,073,369 |
Issued in reinvestment of distributions | 970,372 | 1,014,251 |
Redeemed | (4,926,194) | (5,316,888) |
Net increase (decrease) | 1,186,520 | (229,268) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000 |
Selected Per-Share Data | |||||
Net asset value, | $ 11.69 | $ 11.62 | $ 11.19 | $ 11.20 | $ 10.63 |
Income from Investment Operations | |||||
Net investment income B | .458 | .467 | .509 | .529 D | .529 |
Net realized and unrealized gain (loss) | (.012) | .133 | .431 | (.016) D | .568 |
Total from investment operations | .446 | .600 | .940 | .513 | 1.097 |
Distributions from net investment income | (.459) | (.464) | (.510) | (.523) | (.527) |
Distributions from net realized gain | (.057) | (.066) | - | - | - |
Total distributions | (.516) | (.530) | (.510) | (.523) | (.527) |
Redemption fees added to paid in capital | - B, E | - B, E | - B, E | - B, E | - |
Net asset value, | $ 11.62 | $ 11.69 | $ 11.62 | $ 11.19 | $ 11.20 |
Total Return A | 3.92% | 5.27% | 8.57% | 4.64% | 10.62% |
Ratios to Average Net Assets C | |||||
Expenses before expense reductions | .51% | .51% | .51% | .51% | .52% |
Expenses net of voluntary waivers, if any | .51% | .51% | .51% | .51% | .52% |
Expenses net of all reductions | .49% | .49% | .49% | .46% | .46% |
Net investment income | 3.95% | 4.00% | 4.45% | 4.69% D | 4.90% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 355,461 | $ 343,880 | $ 344,435 | $ 316,371 | $ 293,666 |
Portfolio turnover rate | 12% | 15% | 25% | 7% | 18% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary 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 fund.
D Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.
E 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, 2004
1. Significant Accounting Policies.
Spartan Minnesota Municipal Income Fund (the fund) is a fund of Fidelity Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The fund may be affected by economic and political developments in the state of Minnesota.The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities, including restricted securities, are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount and losses deferred due to futures transactions.
The fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 18,303,021 |
Unrealized depreciation | (192,138) |
Net unrealized appreciation (depreciation) | 18,110,883 |
Undistributed ordinary income | 10,062 |
Undistributed long-term capital gain | 38,451 |
Cost for federal income tax purposes | $ 333,303,398 |
The tax character of distributions paid was as follows:
December 31, 2004 | December 31, 2003 | |
Tax-exempt Income | $ 13,769,100 | $ 13,684,949 |
Ordinary Income | - | 469,237 |
Long-term Capital Gains | 1,709,461 | 1,466,366 |
Total | $ 15,478,561 | $ 15,620,552 |
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
Annual Report
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of 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.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $60,276,784 and $41,316,986, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the fund's average net assets and a group fee rate that averaged .13% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .38% of the fund's average net assets.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the fund. Citibank has entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the fund's transfer and shareholder servicing agent and accounting functions. The fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period, the transfer agent fees were equivalent to an annual rate of .08% of average net assets.
Annual Report
Notes to Financial Statements - continued
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
Through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and transfer agent expenses by $6,096 and $51,179, respectively.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Spartan 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 Spartan Minnesota Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2004 and the results of its operations, the changes in its net assets and the financial highlights for 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 Spartan 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, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2005
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for William O. McCoy, Dennis J. Dirks, and Kenneth L. Wolfe, each of the Trustees oversees 301 funds advised by FMR or an affiliate. Mr. McCoy oversees 303 funds advised by FMR or an affiliate. Mr. Dirks and Mr. Wolfe oversee 233 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (74)** | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (43)** | |
Year of Election or Appointment: 2001 Senior Vice President of Spartan Minnesota Municipal Income (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (50) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (52) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* 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.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (56) | |
Year of Election or Appointment: 2005 Mr. Dirks also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). | |
Robert M. Gates (61) | |
Year of Election or Appointment: 1997 Dr. Gates is Vice Chairman of the non-interested Trustees (2005). Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001), and Brinker International (restaurant management, 2003). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
George H. Heilmeier (68) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001), Teletech Holdings (customer management services), and HRL Laboratories (private research and development, 2004). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE) (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), and Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002). | |
Marie L. Knowles (58) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (60) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Co-Chairman and a Director of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Italtel Holding S.p.A. (telecommunications (Milan, Italy), 2004) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (71) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals), where he served as CEO until April 1998, retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. He is a member of the Executive Committee of the Independent Director's Council of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (71) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), and Progress Energy, Inc. (electric utility). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
Cornelia M. Small (60) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000) and Chairperson (2002) of the Investment Committee, and a member (2002) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1998). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (65) | |
Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman of the Board (2000), CEO (2002), a position he previously held from 1995-2000, Chairman of the Executive Committee (2000), and a Member of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (65) | |
Year of Election or Appointment: 2005 Mr. Wolfe also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003), Bausch & Lomb, Inc., and Revlon Inc. (2004). |
Annual Report
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (61) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Dwight D. Churchill (51) | |
Year of Election or Appointment: 1997 Vice President of Spartan Minnesota Municipal Income. He serves as Head of Fidelity's Fixed-Income Division (2000), Vice President of Fidelity's Money Market Funds (2000), Vice President of Fidelity's Bond Funds (1997), and Senior Vice President of FIMM (2000) and FMR (1997). Mr. Churchill joined Fidelity in 1993 as Vice President and Group Leader of Taxable Fixed-Income Investments. | |
Charles S. Morrison (44) | |
Year of Election or Appointment: 2002 Vice President of Spartan Minnesota Municipal Income. Mr. Morrison also serves as Vice President of Fidelity's Bond Funds (2002), and Vice President of certain Asset Allocation and Balanced Funds (2002). He serves as Vice President (2002) and Bond Group Leader (2002) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002) and FMR (2002). Mr. Morrison joined Fidelity in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
Christine J. Thompson (46) | |
Year of Election or Appointment: 1998 Vice President of Spartan Minnesota Municipal Income. Ms. Thompson is also Vice President of other funds advised by FMR. | |
Eric D. Roiter (56) | |
Year of Election or Appointment: 1998 Secretary of Spartan Minnesota Municipal Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Vice President and Secretary of FDC; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Management & Research (Far East) Inc. (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). | |
Stuart Fross (45) | |
Year of Election or Appointment: 2003 Assistant Secretary of Spartan Minnesota Municipal Income. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Christine Reynolds (46) | |
Year of Election or Appointment: 2004 President, Treasurer, and Anti-Money Laundering (AML) officer of Spartan Minnesota Municipal Income. Ms. Reynolds also serves as President, Treasurer, and AML officer of other Fidelity funds (2004) and is a Vice President (2003) and an employee (2002) of FMR. Before joining Fidelity Investments, Ms. Reynolds worked at PricewaterhouseCoopers LLP (PwC) (1980-2002), where she was most recently an audit partner with PwC's investment management practice. | |
Timothy F. Hayes (54) | |
Year of Election or Appointment: 2002 Chief Financial Officer of Spartan Minnesota Municipal Income. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
Kenneth A. Rathgeber (57) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Spartan Minnesota Municipal Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004) and Executive Vice President of Risk Oversight for Fidelity Investments (2002). Previously, he served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
John R. Hebble (46) | |
Year of Election or Appointment: 2003 Deputy Treasurer of Spartan Minnesota Municipal Income. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
Kimberley H. Monasterio (41) | |
Year of Election or Appointment: 2004 Deputy Treasurer of Spartan Minnesota Municipal Income. Ms. Monasterio also serves as Deputy Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
John H. Costello (58) | |
Year of Election or Appointment: 1986 Assistant Treasurer of Spartan Minnesota Municipal Income. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (50) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Spartan Minnesota Municipal Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (49) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Spartan Minnesota Municipal Income. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Kenneth B. Robins (35) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Spartan Minnesota Municipal Income. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Annual Report
Distributions
The Board of Trustees of Spartan Minnesota Municipal Income Fund voted to pay on February 7, 2005, to shareholders of record at the opening of business on February 4, 2005, a distribution of $.003 per share derived from capital gains realized from sales of portfolio securities.
During fiscal year ended 2004, 100% of the fund's income dividends was free from federal income tax, and 3.95% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2005 of amounts for use in preparing 2004 income tax returns.
Annual Report
Proxy Voting Results
A special meeting of the fund's shareholders was held on April 14, 2004. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* | ||
# of | % of | |
Affirmative | 3,415,899,540.41 | 73.098 |
Against | 857,186,718.73 | 18.343 |
Abstain | 194,806,370.40 | 4.169 |
Broker | 205,155,704.48 | 4.390 |
TOTAL | 4,673,048,334.02 | 100.000 |
PROPOSAL 2 | ||
To elect a Board of Trustees.* | ||
# of | % of | |
J. Michael Cook | ||
Affirmative | 4,338,349,812.56 | 92.838 |
Withheld | 334,698,521.46 | 7.162 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ralph F. Cox | ||
Affirmative | 4,334,671,421.01 | 92.759 |
Withheld | 338,376,913.01 | 7.241 |
TOTAL | 4,673,048,334.02 | 100.000 |
Laura B. Cronin | ||
Affirmative | 4,332,816,177.06 | 92.719 |
Withheld | 340,232,156.96 | 7.281 |
TOTAL | 4,673,048,334.02 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,336,851,658.96 | 92.806 |
Withheld | 336,196,675.06 | 7.194 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
George H. Heilmeier | ||
Affirmative | 4,334,549,149.07 | 92.756 |
Withheld | 338,499,184.95 | 7.244 |
TOTAL | 4,673,048,334.02 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 4,327,320,608.55 | 92.602 |
Withheld | 345,727,725.47 | 7.398 |
TOTAL | 4,673,048,334.02 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 4,322,104,507.32 | 92.490 |
Withheld | 350,943,826.70 | 7.510 |
TOTAL | 4,673,048,334.02 | 100.000 |
Donald J. Kirk | ||
Affirmative | 4,335,814,201.97 | 92.783 |
Withheld | 337,234,132.05 | 7.217 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marie L. Knowles | ||
Affirmative | 4,333,892,089.64 | 92.742 |
Withheld | 339,156,244.38 | 7.258 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,340,856,926.26 | 92.891 |
Withheld | 332,191,407.76 | 7.109 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marvin L. Mann | ||
Affirmative | 4,336,736,818.96 | 92.803 |
Withheld | 336,311,515.06 | 7.197 |
TOTAL | 4,673,048,334.02 | 100.000 |
William O. McCoy | ||
Affirmative | 4,338,426,324.60 | 92.839 |
Withheld | 334,622,009.42 | 7.161 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
Robert L. Reynolds | ||
Affirmative | 4,339,017,198.22 | 92.852 |
Withheld | 334,031,135.80 | 7.148 |
TOTAL | 4,673,048,334.02 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,338,546,239.15 | 92.842 |
Withheld | 334,502,094.87 | 7.158 |
TOTAL | 4,673,048,334.02 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
Fidelity Investments Money
Management Inc.
Fidelity International
Investment Advisors
Fidelity International
Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Citibank, N.A.
New York, NY
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
MNF-UANN-0205
1.787738.101
Spartan®
Municipal Income
Fund
Annual Report
December 31, 2004
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
Proxy Voting Results |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2004 | Past 1 | Past 5 | Past 10 |
Spartan® Municipal Income Fund | 4.73% | 7.62% | 7.11% |
$10,000 Over 10 Years
Let's say, hypothetically, that $10,000 was invested in Spartan® Municipal Income Fund on December 31, 1994. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Christine Thompson, Portfolio Manager of Spartan® Municipal Income Fund
Despite persistent inflation concerns and the Federal Reserve Board raising interest rates multiple times in the second half of the year, the municipal bond market registered positive performance for the year ending December 31, 2004. In that time, the Lehman Brothers® Municipal Bond Index rose 4.48%. In comparison, the Lehman Brothers Aggregate Bond Index - a proxy of the overall investment-grade taxable debt market - returned 4.34%. This marks the second consecutive year in which tax-free munis outperformed taxable bonds on an absolute basis. Demand for munis generally was strong in 2004, except for a rough patch in the spring when strong labor markets fueled expectations of rising inflation. Shortly thereafter, the Fed began a series of five 0.25 percentage-point interest rate hikes between June 30 and December 14. While munis typically don't react well to such actions, they responded with positive returns in each of the year's final six months, partly due to reassurances by the Fed that it intended to raise rates in a "measured fashion."
For the 12 months ending December 31, 2004, the fund returned 4.73%. During the same period, the LipperSM General Municipal Debt Funds Average was up 3.70% and the Lehman Brothers 3 Plus Year Municipal Bond Index gained 4.83%. Better economic conditions both helped and hurt municipal bonds, boosting revenues and creditworthiness for many muni issuers, but also resulting in higher short-term interest rates, which pushed short-term bond yields higher and their prices lower. I believe the fund's outperformance of its Lipper peer group average was aided by my approach to managing the fund's interest rate sensitivity. I avoided positioning the fund to benefit from a specific interest rate outlook, a strategy that was particularly advantageous given the uncertainty surrounding the future level of interest rates. Also aiding performance were my decisions about when to own bonds of various maturities at various times. The prerefunding of some of the fund's holdings also worked in its favor. As these bonds were prerefunded, they generally rose in price because their maturities shortened and their credit quality improved. Detracting from performance was my emphasis on higher-quality bonds in a year when lower-quality investment-grade and non-investment-grade munis outperformed due to strong investor demand for their higher yields, which helped cushion the price declines munis experienced at times.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover 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, 2004 to December 31, 2004).
Actual Expenses
The first line of the table below 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 table below 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.
Annual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | |
Actual | $ 1,000.00 | $ 1,056.60 | $ 2.43 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,022.77 | $ 2.39 |
* Expenses are equal to the Fund's annualized expense ratio of .47%; multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Annual Report
Investment Changes
Top Five States as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
Illinois | 15.4 | 15.8 |
Texas | 12.4 | 12.8 |
New York | 10.2 | 10.4 |
California | 9.0 | 8.7 |
Massachusetts | 6.7 | 7.3 |
Top Five Sectors as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
General Obligations | 32.9 | 32.8 |
Electric Utilities | 15.0 | 15.6 |
Health Care | 11.2 | 12.3 |
Transportation | 10.7 | 10.2 |
Water & Sewer | 9.8 | 10.1 |
Average Years to Maturity as of December 31, 2004 | ||
6 months ago | ||
Years | 15.9 | 15.8 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2004 | ||
6 months ago | ||
Years | 7.3 | 7.5 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2004 | As of June 30, 2004 | ||||||
![]() | AAA 70.2% | ![]() | AAA 69.4% | ||||
![]() | AA,A 22.7% | ![]() | AA,A 23.0% | ||||
![]() | BBB 6.3% | ![]() | BBB 6.8% | ||||
![]() | Not Rated 0.7% | ![]() | Not Rated 0.3% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. Percentages are adjusted for the effect of futures contracts, if applicable. |
Annual Report
Investments December 31, 2004
Showing Percentage of Net Assets
Municipal Bonds - 99.9% | |||||
Principal | Value (Note 1) | ||||
Alabama - 0.2% | |||||
Alabama Pub. School & College Auth. Rev. Series 1999 C, 5.75% 7/1/18 | $ 2,000 | $ 2,244 | |||
Cullman Med. Park South Med. Clinic Board Rev. (Cullman Reg'l. Med. Ctr. Proj.) Series A, 6.5% 2/15/23 | 4,000 | 4,004 | |||
Jefferson County Ltd. Oblig. School Warrants Series A, 5.5% 1/1/22 | 2,900 | 3,126 | |||
Jefferson County Swr. Rev. Series 1997 D, 5.7% 2/1/18 (Pre-Refunded to 2/1/07 @ 101) (g) | 100 | 108 | |||
9,482 | |||||
Alaska - 0.1% | |||||
North Slope Borough Gen. Oblig. Series 2000 B, 0% 6/30/09 (MBIA Insured) | 5,000 | 4,342 | |||
Arizona - 0.6% | |||||
Arizona School Facilities Board Ctfs. of Prtn. Series C: | |||||
5% 9/1/14 (FSA Insured) | 2,000 | 2,228 | |||
5% 9/1/15 (FSA Insured) | 1,815 | 1,997 | |||
Arizona School Facilities Board State School Impt. Rev. 5.25% 7/1/20 | 1,000 | 1,088 | |||
Arizona Student Ln. Acquisition Auth. Student Ln. Rev. Sr. Series A1, 5.9% 5/1/24 (f) | 2,000 | 2,124 | |||
Maricopa County Hosp. Rev. (Sun Health Corp. Proj.): | |||||
5.4% 4/1/05 | 2,935 | 2,951 | |||
5.65% 4/1/06 | 3,625 | 3,719 | |||
Maricopa County Indl. Dev. Auth. Hosp. Facilities Rev. (Samaritan Health Svcs. Proj.) Series A, 7% 12/1/16 (Escrowed to Maturity) (g) | 2,000 | 2,507 | |||
Scottsdale Indl. Dev. Auth. Hosp. Rev. (Scottsdale Health Care Proj.) 5.8% 12/1/31 | 3,250 | 3,422 | |||
Tucson Gen. Oblig. Series 2002, 5% 7/1/10 | 2,645 | 2,908 | |||
Yavapai County Indl. Dev. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.625%, tender 6/1/05 (c)(f) | 5,500 | 5,529 | |||
28,473 | |||||
Arkansas - 0.2% | |||||
Little Rock School District Series 2001 C, 5.25% 2/1/33 (FSA Insured) | 6,500 | 6,781 | |||
North Little Rock Elec. Rev. Series A, 6.5% 7/1/10 (MBIA Insured) | 3,840 | 4,471 | |||
11,252 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
California - 9.0% | |||||
ABC Unified School District 0% 8/1/28 (FGIC Insured) | $ 3,925 | $ 1,141 | |||
Cabrillo Unified School District Series A, 0% 8/1/20 (AMBAC Insured) | 4,275 | 2,039 | |||
California Dept. of Wtr. Resources Pwr. Supply Rev.: | |||||
Series 2002 A: | |||||
5.125% 5/1/18 (FGIC Insured) | 7,500 | 8,177 | |||
5.75% 5/1/17 | 4,900 | 5,533 | |||
Series A: | |||||
5.5% 5/1/15 (AMBAC Insured) | 8,800 | 9,929 | |||
5.875% 5/1/16 | 7,500 | 8,574 | |||
6% 5/1/14 (MBIA Insured) | 3,500 | 4,088 | |||
6% 5/1/15 | 9,300 | 10,706 | |||
California Econ. Recovery: | |||||
Series 2004 A, 5% 7/1/16 | 10,700 | 11,432 | |||
Series A: | |||||
5.25% 7/1/13 (MBIA Insured) | 5,300 | 6,001 | |||
5.25% 7/1/14 (FGIC Insured) | 2,800 | 3,178 | |||
California Edl. Facilities Auth. Rev. (Loyola Marymount Univ. Proj.): | |||||
0% 10/1/16 (MBIA Insured) | 2,140 | 1,281 | |||
0% 10/1/17 (MBIA Insured) | 2,050 | 1,156 | |||
0% 10/1/18 (MBIA Insured) | 1,675 | 888 | |||
0% 10/1/22 (MBIA Insured) | 5,000 | 2,108 | |||
California Gen. Oblig.: | |||||
Series 1999, 5.75% 12/1/12 (FGIC Insured) | 5,000 | 5,738 | |||
4.5% 2/1/09 | 5,825 | 6,213 | |||
5% 2/1/09 | 1,435 | 1,558 | |||
5% 2/1/11 | 8,000 | 8,761 | |||
5.125% 9/1/12 | 2,000 | 2,175 | |||
5.25% 2/1/11 | 1,000 | 1,109 | |||
5.25% 3/1/12 | 2,300 | 2,571 | |||
5.25% 3/1/13 | 3,530 | 3,946 | |||
5.25% 2/1/14 | 7,600 | 8,470 | |||
5.25% 2/1/15 | 10,000 | 11,098 | |||
5.25% 2/1/15 | 8,300 | 9,212 | |||
5.25% 2/1/16 | 4,300 | 4,772 | |||
5.25% 2/1/19 | 5,620 | 6,096 | |||
5.5% 2/1/12 | 8,000 | 9,032 | |||
5.5% 3/1/12 | 2,000 | 2,234 | |||
5.5% 4/1/30 | 3,800 | 4,085 | |||
5.5% 11/1/33 | 7,900 | 8,458 | |||
5.75% 12/1/24 | 4,000 | 4,436 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
California - continued | |||||
California Hsg. Fin. Agcy. Home Mtg. Rev.: | |||||
Series 1983 A, 0% 2/1/15 (MBIA Insured) | $ 187 | $ 83 | |||
Series B, 5.2% 8/1/26 (MBIA Insured) (f) | 125 | 125 | |||
Series G: | |||||
5.9% 2/1/09 (MBIA Insured) (f) | 1,000 | 1,030 | |||
5.9% 8/1/09 (MBIA Insured) (f) | 2,000 | 2,060 | |||
California Poll. Cont. Fing. Auth. Ctfs. of Prtn. (Pacific Gas & Elec. Co. Proj.) Series 2004 B, 3.5%, tender 6/1/07 (FGIC Insured) (c)(f) | 8,800 | 8,899 | |||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series A, 5%, tender 5/1/13 (c)(f) | 10,000 | 10,283 | |||
California Pub. Works Board Lease Rev. (Various California State Univ. Projs.) Series A, 5.25% 12/1/13 | 5,000 | 5,064 | |||
California State Univ. Rev. & Colleges Series 1999 AY, 5.875% 11/1/30 (FGIC Insured) | 9,775 | 10,884 | |||
California Statewide Cmntys. Dev. Auth. Rev. (Kaiser Permanente Health Sys. Proj.) Series 2004 G, 2.3%, tender 5/1/07 (c) | 4,000 | 3,970 | |||
Compton Cmnty. Redev. Agcy. (Tax Allocation-Compton Redev. Proj.) Series A, 6.5% 8/1/13 (FSA Insured) | 4,000 | 4,178 | |||
Encinitas Union School District 0% 8/1/20 (MBIA Insured) | 3,500 | 1,670 | |||
Foothill/Eastern Trans. Corridor Agcy. Toll Road Rev.: | |||||
Series A, 5% 1/1/35 (MBIA Insured) | 5,070 | 5,137 | |||
0% 1/15/27 (a) | 2,500 | 2,001 | |||
5% 1/15/16 (MBIA Insured) | 2,800 | 2,988 | |||
5.75% 1/15/40 | 6,300 | 6,399 | |||
Golden State Tobacco Securitization Corp.: | |||||
Series 2003 A1: | |||||
5% 6/1/21 | 1,645 | 1,653 | |||
6.75% 6/1/39 | 8,800 | 8,827 | |||
Series 2003 B: | |||||
5% 6/1/08 | 1,400 | 1,490 | |||
5% 6/1/10 | 2,000 | 2,154 | |||
5% 6/1/12 | 2,255 | 2,413 | |||
5.75% 6/1/21 | 10,000 | 10,578 | |||
5.75% 6/1/23 | 3,400 | 3,565 | |||
Laguna Salada Union School District Series C, 0% 8/1/30 (FGIC Insured) | 2,095 | 548 | |||
Los Angeles Dept. of Wtr. & Pwr. Wtrwks. Rev.: | |||||
Series 2001 A, 5.125% 7/1/41 | 5,000 | 5,104 | |||
Series A, 5.125% 7/1/41 (MBIA Insured) | 9,985 | 10,220 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
California - continued | |||||
Los Angeles Unified School District: | |||||
Series A: | |||||
5.375% 7/1/17 (MBIA Insured) | $ 9,400 | $ 10,589 | |||
5.375% 7/1/18 (MBIA Insured) | 14,600 | 16,379 | |||
5.5% 7/1/15 (MBIA Insured) | 6,140 | 7,050 | |||
Series F, 5% 7/1/18 (FSA Insured) | 10,000 | 10,803 | |||
Modesto Irrigation District Elec. Rev. Series A, 9.625% 1/1/11 (Escrowed to Maturity) (g) | 3,460 | 4,192 | |||
Monrovia Unified School District Series B, 0% 8/1/29 (FGIC Insured) | 4,525 | 1,239 | |||
Placer County Wtr. Agcy. Rev. (Middle Fork Proj.) | 5,820 | 5,860 | |||
Sacramento Cogeneration Auth. Cogeneration Proj. Rev. (Procter & Gamble Proj.) 6.375% 7/1/10 | 700 | 727 | |||
Sacramento Pwr. Auth. Cogeneration Proj. Rev.: | |||||
6.5% 7/1/07 | 1,000 | 1,072 | |||
6.5% 7/1/09 | 2,200 | 2,360 | |||
San Francisco City & County Arpts. Commission Int'l. Arpt. Rev.: | |||||
Second Series 10A, 5.55% 5/1/14 | 5,875 | 6,223 | |||
Second Series 27A, 5.5% 5/1/09 | 4,330 | 4,767 | |||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A: | |||||
0% 1/15/12 (MBIA Insured) | 9,900 | 7,630 | |||
0% 1/15/34 (MBIA Insured) | 10,000 | 2,106 | |||
5.25% 1/15/30 (MBIA Insured) | 3,600 | 3,770 | |||
San Mateo County Cmnty. College District Series A, 0% 9/1/26 (FGIC Insured) | 5,430 | 1,786 | |||
Sulphur Springs Union School District Ctfs. of Prtn. | 1,500 | 1,523 | |||
Torrance Ctfs. of Prtn. (Refing. & Pub. Impt. Proj.) | 1,000 | 1,051 | |||
Univ. of California Revs. (UCLA Med. Ctr. Proj.): | |||||
Series A: | |||||
5.5% 5/15/15 (AMBAC Insured) | 2,990 | 3,382 | |||
5.5% 5/15/16 (AMBAC Insured) | 3,155 | 3,566 | |||
5.5% 5/15/17 (AMBAC Insured) | 3,325 | 3,737 | |||
5.5% 5/15/19 (AMBAC Insured) | 3,700 | 4,123 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
California - continued | |||||
Univ. of California Revs. (UCLA Med. Ctr. Proj.): - continued | |||||
Series A: | |||||
5.5% 5/15/22 (AMBAC Insured) | $ 1,000 | $ 1,105 | |||
5.5% 5/15/23 (AMBAC Insured) | 1,000 | 1,100 | |||
Series B: | |||||
5.5% 5/15/15 (AMBAC Insured) | 5,105 | 5,835 | |||
5.5% 5/15/16 (AMBAC Insured) | 6,500 | 7,396 | |||
5.5% 5/15/17 (AMBAC Insured) | 6,860 | 7,754 | |||
414,643 | |||||
Colorado - 1.8% | |||||
Arapahoe County Cherry Creek School District #5 5.5% 12/15/19 | 3,500 | 3,864 | |||
Colorado Health Facilities Auth. Rev. Series 2001: | |||||
6.5% 11/15/31 | 5,040 | 5,547 | |||
6.625% 11/15/26 | 2,700 | 2,993 | |||
Colorado Springs Arpt. Rev. Series C: | |||||
0% 1/1/09 (MBIA Insured) | 1,655 | 1,456 | |||
0% 1/1/10 (MBIA Insured) | 1,500 | 1,257 | |||
Colorado Wtr. Resources and Pwr. Dev. Auth. Wtr. Resources Rev. (Parker Wtr. and Sanitation District Proj.) Series D, 5.25% 9/1/43 (MBIA Insured) | 33,385 | 34,927 | |||
Dawson Ridge Metropolitan District # 1 Series 1992 A, 0% 10/1/22 (Escrowed to Maturity) (g) | 30,000 | 12,652 | |||
Denver Health & Hosp. Auth. Health Care Rev. Series A, 6.25% 12/1/33 | 2,000 | 2,118 | |||
Douglas and Elbert Counties School District #RE1 5.75% 12/15/20 (FGIC Insured) | 1,500 | 1,732 | |||
E-470 Pub. Hwy. Auth. Rev. Series 2000 A, 5.75% 9/1/29 (MBIA Insured) | 10,000 | 11,221 | |||
Longmont Sales & Use Tax Rev. 5.7% 11/15/18 | 2,280 | 2,572 | |||
Northwest Pkwy Pub. Hwy. Auth. Sr. Series A: | |||||
5.5% 6/15/15 (AMBAC Insured) | 1,000 | 1,123 | |||
5.5% 6/15/19 (AMBAC Insured) | 1,000 | 1,116 | |||
82,578 | |||||
Connecticut - 0.2% | |||||
Connecticut Gen. Oblig.: | |||||
Series 2002 B, 5.5% 6/15/18 | 4,300 | 4,808 | |||
Series D, 5.375% 11/15/18 | 4,000 | 4,433 | |||
9,241 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
District Of Columbia - 1.1% | |||||
District of Columbia Gen. Oblig. Series 1998 A, 5.25% 6/1/27 (MBIA Insured) | $ 17,330 | $ 18,102 | |||
District of Columbia Rev.: | |||||
(George Washington Univ. Proj.) Series A, 5.75% 9/15/20 (MBIA Insured) | 12,600 | 14,163 | |||
(Georgetown Univ. Proj.) Series A: | |||||
5.95% 4/1/14 (MBIA Insured) | 2,000 | 2,226 | |||
6% 4/1/18 (MBIA Insured) | 13,835 | 15,421 | |||
49,912 | |||||
Florida - 1.9% | |||||
Boynton Beach Util. Sys. Rev. 5.5% 11/1/19 | 3,300 | 3,865 | |||
Dade County Aviation Rev. (Miami Int'l. Arpt. Proj.) Series B, 6% 10/1/24 (MBIA Insured) (f) | 3,750 | 3,895 | |||
Florida Board of Ed. Lottery Rev. Series B: | |||||
6% 7/1/14 (FGIC Insured) | 1,000 | 1,151 | |||
6% 7/1/15 (FGIC Insured) | 3,300 | 3,793 | |||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt Obligated Group Proj.): | |||||
5.25% 11/15/12 | 3,935 | 4,178 | |||
5.25% 11/15/13 | 3,140 | 3,317 | |||
Jacksonville Elec. Auth. Rev.: | |||||
(Saint Johns River Proj.) Series 13 Issue 2, 5.375% 10/1/16 (MBIA Insured) | 4,535 | 4,734 | |||
(Third Installment Proj.) Series 73, 6.8% 7/1/12 (Escrowed to Maturity) (g) | 2,465 | 2,829 | |||
Jacksonville Port Auth. Rev.: | |||||
5.5% 11/1/06 (MBIA Insured) (f) | 2,840 | 2,943 | |||
5.75% 11/1/09 (MBIA Insured) (f) | 1,000 | 1,072 | |||
Miami-Dade County Edl. Facilities Auth. Rev. 5.75% 4/1/29 (AMBAC Insured) | 5,000 | 5,558 | |||
Miami-Dade County School Board Ctfs. of Prtn. 5%, tender 5/1/11 (MBIA Insured) (c) | 3,600 | 3,923 | |||
Orange County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt Obligated Group Proj.) 5.625% 11/15/32 | 2,000 | 2,119 | |||
Palm Beach County School Board Ctfs. of Prtn. Series A: | |||||
5.5% 8/1/21 (AMBAC Insured) | 6,135 | 6,818 | |||
5.5% 8/1/22 (AMBAC Insured) | 8,210 | 9,109 | |||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev.: | |||||
6% 4/1/08 (AMBAC Insured) (f) | 5,000 | 5,492 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Florida - continued | |||||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev.: - continued | |||||
6% 4/1/09 (AMBAC Insured) (f) | $ 8,090 | $ 9,028 | |||
Seminole County School Board Ctfs. of Prtn. Series A: | |||||
5% 7/1/16 (MBIA Insured) (b) | 1,645 | 1,778 | |||
5% 7/1/20 (MBIA Insured) (b) | 1,745 | 1,841 | |||
South Broward Hosp. District Rev. 5.625% 5/1/32 (MBIA Insured) | 2,630 | 2,883 | |||
Tampa Wtr. & Swr. Rev. 6% 10/1/17 (FSA Insured) | 1,000 | 1,217 | |||
Volusia County School Board Ctfs. of Prtn. (School Board of Volusia County Master Lease Prog.) 5% 8/1/08 (FSA Insured) (b) | 4,325 | 4,629 | |||
86,172 | |||||
Georgia - 1.2% | |||||
Atlanta & Fulton County Resource Auth. Rev. (Downtown Area Pub. Impt. Proj.) Series A, 5.375% 12/1/21 (MBIA Insured) | 6,000 | 6,478 | |||
Atlanta Wtr. & Wastewtr. Rev. 5% 11/1/43 (FSA Insured) | 8,000 | 8,161 | |||
Augusta Wtr. & Swr. Rev. 5.25% 10/1/39 (FSA Insured) | 3,000 | 3,193 | |||
College Park Bus. & Indl. Dev. Auth. Civic Ctr. Proj. Rev. Series 2000, 5.75% 9/1/20 (AMBAC Insured) | 5,800 | 6,572 | |||
Fulton County Wtr. & Swr. Rev. 6.375% 1/1/14 | 140 | 166 | |||
Fulton DeKalb Hosp. Auth. Hosp. Rev. 5% 1/1/11 | 3,100 | 3,404 | |||
Gainesville & Hall County Hosp. Auth. Rev. Anticipation Ctfs. (Northeast Georgia Health Sys., Inc. Proj.) 5.5% 5/15/31 | 4,500 | 4,631 | |||
Georgia Gen. Oblig. Series D, 5.8% 11/1/13 | 15,350 | 17,772 | |||
Private Colleges & Univs. Auth. Rev. (Emory Univ. Proj.) Series A, 5.5% 11/1/24 | 5,000 | 5,488 | |||
55,865 | |||||
Hawaii - 0.8% | |||||
Hawaii Arpts. Sys. Rev.: | |||||
Series 2000 A, 5.75% 7/1/21 (FGIC Insured) | 2,640 | 2,945 | |||
Series 2000 B, 8% 7/1/11 (FGIC Insured) (f) | 9,250 | 11,532 | |||
Hawaii Gen. Oblig.: | |||||
Series CN, 5.25% 3/1/12 (FGIC Insured) | 17,300 | 18,555 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Hawaii - continued | |||||
Hawaii Gen. Oblig.: - continued | |||||
Series CU, 5.75% 10/1/12 (MBIA Insured) | $ 2,130 | $ 2,410 | |||
Honolulu City and County Wastewtr. Sys. Sr. Series 2001 5.5% 7/1/18 (AMBAC Insured) | 1,090 | 1,208 | |||
36,650 | |||||
Idaho - 0.2% | |||||
Boise City Urban Renewal Agcy. Lease Rev. 5.9% 8/15/29 (AMBAC Insured) | 6,950 | 7,773 | |||
Illinois - 15.4% | |||||
Chicago Board of Ed.: | |||||
Series A: | |||||
0% 12/1/16 (FGIC Insured) | 3,200 | 1,880 | |||
5.5% 12/1/28 (MBIA Insured) | 4,960 | 5,371 | |||
5.75% 12/1/27 (AMBAC Insured) | 5,255 | 5,789 | |||
Chicago Gen. Oblig.: | |||||
(City Colleges Proj.): | |||||
0% 1/1/14 (FGIC Insured) | 17,000 | 11,690 | |||
0% 1/1/15 (FGIC Insured) | 20,000 | 13,025 | |||
0% 1/1/26 (FGIC Insured) | 16,000 | 5,583 | |||
0% 1/1/28 (FGIC Insured) | 23,555 | 7,045 | |||
0% 1/1/30 (FGIC Insured) | 18,670 | 4,954 | |||
(Neighborhoods Alive 21 Prog.): | |||||
Series 2000 A, 6% 1/1/28 (FGIC Insured) | 8,400 | 9,474 | |||
Series A, 5.75% 1/1/40 (FGIC Insured) | 18,500 | 20,317 | |||
Series 2000 C, 5.5% 1/1/40 (FGIC Insured) | 14,750 | 15,866 | |||
Series 2000 D, 5.5% 1/1/35 (FGIC Insured) | 15,000 | 16,082 | |||
Series A: | |||||
5% 1/1/41 (MBIA Insured) | 1,300 | 1,317 | |||
5% 1/1/42 (AMBAC Insured) | 18,955 | 19,203 | |||
5.25% 1/1/22 (MBIA Insured) | 2,085 | 2,254 | |||
5.5% 1/1/38 (MBIA Insured) | 21,500 | 23,193 | |||
Series C, 5.7% 1/1/30 (FGIC Insured) | 15,415 | 16,899 | |||
Chicago Midway Arpt. Rev.: | |||||
Series A, 5.5% 1/1/29 (MBIA Insured) | 24,825 | 25,818 | |||
Series B: | |||||
5.25% 1/1/13 (MBIA Insured) (f) | 2,910 | 3,028 | |||
5.25% 1/1/14 (MBIA Insured) (f) | 3,060 | 3,179 | |||
6% 1/1/08 (MBIA Insured) (f) | 2,170 | 2,324 | |||
6% 1/1/10 (MBIA Insured) (f) | 2,435 | 2,609 | |||
6.125% 1/1/11 (MBIA Insured) (f) | 2,580 | 2,770 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Illinois - continued | |||||
Chicago Motor Fuel Tax Rev. Series A, 5.25% 1/1/19 (AMBAC Insured) | $ 1,780 | $ 1,954 | |||
Chicago O'Hare Int'l. Arpt. Rev.: | |||||
Series 1999, 5.5% 1/1/11 (AMBAC Insured) (f) | 10,000 | 10,916 | |||
Series A: | |||||
5.5% 1/1/16 (AMBAC Insured) (f) | 12,000 | 12,586 | |||
5.6% 1/1/10 (AMBAC Insured) | 4,500 | 4,721 | |||
6.25% 1/1/09 (AMBAC Insured) (f) | 6,730 | 7,306 | |||
6.375% 1/1/12 (MBIA Insured) | 4,500 | 4,591 | |||
6.375% 1/1/15 (MBIA Insured) | 14,900 | 15,200 | |||
Series B, 5.75% 1/1/30 (AMBAC Insured) | 13,420 | 14,735 | |||
Chicago Park District: | |||||
Series 2001 A: | |||||
5.5% 1/1/19 (FGIC Insured) | 3,100 | 3,399 | |||
5.5% 1/1/20 (FGIC Insured) | 3,200 | 3,530 | |||
Series A: | |||||
5.25% 1/1/18 (FGIC Insured) | 4,690 | 5,172 | |||
5.25% 1/1/19 (FGIC Insured) | 3,000 | 3,293 | |||
5.25% 1/1/20 (FGIC Insured) | 2,195 | 2,397 | |||
Chicago Spl. Trans. Rev. Series 2001: | |||||
5.25% 1/1/31 (AMBAC Insured) | 11,670 | 12,197 | |||
5.5% 1/1/17 (AMBAC Insured) | 1,135 | 1,261 | |||
Chicago Transit Auth. Cap. Grant Receipts Rev. (Douglas Branch Proj.) Series 2003 B, 5% 6/1/07 (AMBAC Insured) | 9,950 | 10,064 | |||
Chicago Wtr. Rev. 0% 11/1/16 (AMBAC Insured) | 7,555 | 4,469 | |||
Cicero Gen. Oblig. 5.25% 12/1/26 (MBIA Insured) | 3,010 | 3,220 | |||
Cook County Gen. Oblig. Series C, 5.5% 11/15/26 (AMBAC Insured) | 5,020 | 5,488 | |||
Evanston Gen. Oblig. Series C: | |||||
5.25% 1/1/16 | 1,000 | 1,099 | |||
5.25% 1/1/22 | 2,000 | 2,163 | |||
Franklin Park Village Cook County Gen. Oblig. Series B: | |||||
5% 7/1/17 (AMBAC Insured) | 1,380 | 1,493 | |||
5% 7/1/18 (AMBAC Insured) | 1,450 | 1,562 | |||
Illinois Dev. Fin. Auth. Poll. Cont. Rev. (Commonwealth Edison Co. Proj.) Series D, 6.75% 3/1/15 (AMBAC Insured) | 7,000 | 7,189 | |||
Illinois Dev. Fin. Auth. Rev.: | |||||
(DePaul Univ. Proj.) Series 2004 C, 5.625% 10/1/17 | 2,800 | 3,104 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Illinois - continued | |||||
Illinois Dev. Fin. Auth. Rev.: - continued | |||||
(Revolving Fund-Master Trust Prog.): | |||||
5.5% 9/1/18 | $ 5,365 | $ 6,015 | |||
5.5% 9/1/19 | 4,405 | 4,920 | |||
Illinois Edl. Facilities Auth. Revs. (Univ. of Chicago Proj.): | |||||
Series 2004 B1, 3.45%, tender 7/1/08 (c) | 3,350 | 3,427 | |||
Series A: | |||||
5.125% 7/1/38 | 1,585 | 1,616 | |||
5.25% 7/1/41 | 1,060 | 1,102 | |||
5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (g) | 13,030 | 14,723 | |||
Illinois Gen. Oblig.: | |||||
First Series: | |||||
5.25% 12/1/17 (FSA Insured) | 2,260 | 2,475 | |||
5.25% 12/1/20 (FSA Insured) | 2,000 | 2,179 | |||
5.375% 12/1/14 (FSA Insured) | 5,000 | 5,620 | |||
5.375% 7/1/15 (MBIA Insured) | 3,700 | 4,107 | |||
5.5% 4/1/16 (FSA Insured) | 1,300 | 1,449 | |||
5.5% 8/1/16 (MBIA Insured) | 13,000 | 14,551 | |||
5.5% 8/1/17 (MBIA Insured) | 7,500 | 8,400 | |||
5.5% 2/1/18 (FGIC Insured) | 1,000 | 1,109 | |||
5.5% 8/1/18 (MBIA Insured) | 5,000 | 5,579 | |||
5.75% 12/1/18 (MBIA Insured) | 1,200 | 1,354 | |||
5.5% 4/1/17 (MBIA Insured) | 7,065 | 7,764 | |||
5.6% 4/1/21 (MBIA Insured) | 7,500 | 8,244 | |||
5.7% 4/1/16 (MBIA Insured) | 7,350 | 8,192 | |||
Illinois Health Facilities Auth. Rev.: | |||||
(Condell Med. Ctr. Proj.): | |||||
6.5% 5/15/30 | 9,000 | 9,592 | |||
7% 5/15/22 | 5,000 | 5,570 | |||
(Lake Forest Hosp. Proj.): | |||||
Series A, 6.25% 7/1/22 | 4,200 | 4,626 | |||
6% 7/1/33 | 3,775 | 3,993 | |||
(Lutheran Gen. Health Care Sys. Proj.) Series C: | |||||
6% 4/1/18 | 3,000 | 3,390 | |||
7% 4/1/14 | 1,500 | 1,820 | |||
(Riverside Health Sys. Proj.) 6.85% 11/15/29 (Pre-Refunded to 11/15/10 @ 101) (g) | 5,025 | 6,106 | |||
(Swedish American Hosp. Proj.): | |||||
5.375% 11/15/13 (AMBAC Insured) | 3,000 | 3,034 | |||
6.875% 11/15/30 | 6,975 | 7,558 | |||
6.75% 2/15/15 | 1,000 | 1,129 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Illinois - continued | |||||
Illinois Reg'l. Trans. Auth. Series A, 8% 6/1/17 | $ 4,500 | $ 6,188 | |||
Illinois Sales Tax Rev. 6% 6/15/20 | 4,600 | 5,229 | |||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A: | |||||
5.5% 1/1/15 (FSA Insured) | 5,210 | 5,831 | |||
5.5% 1/1/16 (FSA Insured) | 5,680 | 6,334 | |||
5.5% 1/1/17 (FSA Insured) | 3,230 | 3,594 | |||
Kane County School District #129, Aurora West Side: | |||||
Series A: | |||||
5.75% 2/1/17 (FGIC Insured) | 3,655 | 4,142 | |||
5.75% 2/1/20 (FGIC Insured) | 7,360 | 8,281 | |||
6% 2/1/23 (FGIC Insured) | 1,335 | 1,530 | |||
Kane, Cook & DuPage Counties School District #46 Elgin 6.375% 1/1/18 (FSA Insured) | 1,850 | 2,165 | |||
Kane, McHenry, Cook & DeKalb Counties Cmnty. Unit School District #300, Carpentersville: | |||||
5.5% 12/1/16 (MBIA Insured) | 2,500 | 2,795 | |||
5.5% 12/1/17 (MBIA Insured) | 4,000 | 4,463 | |||
Lake County Cmnty. Consolidated School District #50, Woodland Series 2000 A, 6% 12/1/20 (FGIC Insured) | 6,000 | 6,666 | |||
Lake County Warren Township High School District #121, Gurnee Series C: | |||||
5.5% 3/1/24 (AMBAC Insured) | 2,945 | 3,282 | |||
5.625% 3/1/21 (AMBAC Insured) | 2,505 | 2,857 | |||
5.75% 3/1/19 (AMBAC Insured) | 2,240 | 2,602 | |||
McHenry County Conservation District Series A, 5.625% 2/1/21 (FGIC Insured) | 5,730 | 6,282 | |||
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev.: | |||||
(McCormick Place Expansion Proj.): | |||||
Series 2002 A: | |||||
0% 12/15/32 (MBIA Insured) | 15,000 | 3,468 | |||
0% 6/15/41 (MBIA Insured) | 3,950 | 575 | |||
5.75% 6/15/41 (MBIA Insured) | 26,420 | 29,531 | |||
Series 2002 B, 0% 6/15/20 (MBIA Insured) (a) | 2,000 | 1,509 | |||
Series A: | |||||
0% 6/15/08 (Escrowed to Maturity) (g) | 3,335 | 3,042 | |||
0% 6/15/08 (MBIA Insured) | 3,820 | 3,459 | |||
0% 6/15/11 (Escrowed to Maturity) (g) | 6,000 | 4,780 | |||
0% 6/15/15 (FGIC Insured) | 15,000 | 9,599 | |||
0% 6/15/31 (MBIA Insured) | 13,300 | 3,335 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Illinois - continued | |||||
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev.: - continued | |||||
(McCormick Place Expansion Proj.): | |||||
Series A: | |||||
0% 6/15/36 (MBIA Insured) | $ 25,190 | $ 4,833 | |||
0% 6/15/37 (MBIA Insured) | 23,600 | 4,283 | |||
0% 12/15/37 (MBIA Insured) | 20,980 | 3,708 | |||
0% 6/15/40 (MBIA Insured) | 42,600 | 6,534 | |||
5.25% 12/15/10 (AMBAC Insured) | 12,950 | 13,704 | |||
6.65% 6/15/12 (FGIC Insured) | 250 | 253 | |||
Series 2002: | |||||
0% 6/15/10 (Escrowed to Maturity) (g) | 16,640 | 13,829 | |||
0% 6/15/10 (FGIC Insured) | 260 | 214 | |||
0% 6/15/13 (Escrowed to Maturity) (g) | 4,155 | 2,996 | |||
0% 6/15/13 (FGIC Insured) | 5,430 | 3,861 | |||
Moline Gen. Oblig. Series A, 5.5% 2/1/17 (FGIC Insured) | 1,000 | 1,114 | |||
Univ. of Illinois Auxiliary Facilities Sys. Rev.: | |||||
Series A, 0% 4/1/21 (MBIA Insured) | 4,965 | 2,280 | |||
0% 4/1/17 (MBIA Insured) | 16,270 | 9,381 | |||
0% 4/1/20 (MBIA Insured) | 8,000 | 3,906 | |||
714,858 | |||||
Indiana - 1.9% | |||||
Anderson Ind. School Bldg. Corp.: | |||||
5.5% 7/15/18 (FSA Insured) | 1,780 | 2,014 | |||
5.5% 7/15/19 (FSA Insured) | 1,855 | 2,083 | |||
5.5% 7/15/24 (FSA Insured) | 1,460 | 1,610 | |||
5.5% 1/15/28 (FSA Insured) | 2,500 | 2,720 | |||
Hamilton Southeastern Cumberland Campus School Bldg. Corp. 5.125% 1/15/23 (AMBAC Insured) | 1,250 | 1,322 | |||
Hammond School Bldg. Corp. 5% 7/15/16 | 1,845 | 2,015 | |||
Indiana Bond Bank Rev. Series B: | |||||
5% 2/1/19 (MBIA Insured) | 1,940 | 2,081 | |||
5% 2/1/20 (MBIA Insured) | 1,635 | 1,749 | |||
Indiana Dev. Fin. Auth. Rev. 5.95% 8/1/30 (f) | 7,350 | 7,654 | |||
Indiana Health Facilities Fing. Auth. Hosp. Rev.: | |||||
(Columbus Reg'l. Hosp. Proj.) 7% 8/15/15 | 2,500 | 3,119 | |||
5.5% 2/15/30 (MBIA Insured) | 5,295 | 5,663 | |||
Indiana Trans. Fin. Auth. Hwy. Series 1993 A, 0% 6/1/18 (AMBAC Insured) | 1,700 | 922 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Indiana - continued | |||||
Indianapolis Arpt. Auth. Rev. Series A, 5.6% 7/1/15 (FGIC Insured) | $ 1,000 | $ 1,064 | |||
Indianapolis Local Pub. Impt. Bond Bank (Wtrwks. Proj.) Series 2002 A: | |||||
5.25% 7/1/33 (MBIA Insured) | 35,240 | 36,813 | |||
5.5% 1/1/18 (MBIA Insured) | 1,250 | 1,393 | |||
Petersburg Poll. Cont. Rev.: | |||||
(Indianapolis Pwr. & Lt. Co. Proj.) 5.9% 12/1/24 (f) | 10,000 | 10,531 | |||
5.95% 12/1/29 (f) | 2,000 | 2,097 | |||
Southmont School Bldg. Corp. 5% 7/15/15 | 2,000 | 2,169 | |||
87,019 | |||||
Iowa - 0.7% | |||||
Iowa Fin. Auth. Hosp. Facilities Rev.: | |||||
5.875% 2/15/30 (AMBAC Insured) | 15,000 | 16,535 | |||
6.625% 2/15/12 | 2,000 | 2,269 | |||
6.75% 2/15/13 | 1,000 | 1,128 | |||
6.75% 2/15/14 | 1,280 | 1,439 | |||
6.75% 2/15/15 | 1,000 | 1,117 | |||
6.75% 2/15/17 | 1,000 | 1,110 | |||
Tobacco Settlement Auth. Tobacco Settlement Rev. 5.3% 6/1/25 | 10,000 | 8,713 | |||
32,311 | |||||
Kansas - 0.5% | |||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.): | |||||
Series A, 4.75%, tender 10/1/07 (c) | 7,800 | 8,160 | |||
Series C, 2.38%, tender 9/1/05 (c) | 9,800 | 9,764 | |||
Kansas Dev. Fin. Auth. Health Facilities Rev. (Sisters of Charity of Leavenworth Health Services Corp. Proj.) Series J, 6.25% 12/1/28 | 4,500 | 4,971 | |||
22,895 | |||||
Kentucky - 2.1% | |||||
Jefferson County Cap. Projs. Corp. Rev. (Lease Prog.) Series A, 0% 8/15/11 | 5,250 | 4,101 | |||
Louisville & Jefferson County Metropolitan Swr. District Swr. & Drain Sys. Rev. Series A: | |||||
5.25% 5/15/37 (FGIC Insured) | 9,450 | 10,078 | |||
5.75% 5/15/33 (FGIC Insured) | 65,000 | 72,312 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Kentucky - continued | |||||
Louisville & Jefferson County Reg'l. Arpt. Auth. Arpt. Sys. Rev. Series 2001 A: | |||||
5.25% 7/1/09 (FSA Insured) (f) | $ 1,545 | $ 1,678 | |||
5.5% 7/1/10 (FSA Insured) (f) | 3,800 | 4,181 | |||
Owensboro Elec. Lt. & Pwr. Rev. Series B, 0% 1/1/10 (AMBAC Insured) | 7,440 | 6,294 | |||
98,644 | |||||
Louisiana - 0.6% | |||||
Louisiana Gas & Fuel Tax Rev. Series A, 5.375% 6/1/20 (AMBAC Insured) | 3,000 | 3,282 | |||
Monroe-West Monroe Pub. Trust Fing. Auth. Mtg. Rev. Series C, 0% 8/20/14 | 8,625 | 5,500 | |||
New Orleans Gen. Oblig.: | |||||
0% 9/1/09 (AMBAC Insured) | 16,500 | 14,357 | |||
0% 9/1/11 (AMBAC Insured) | 3,665 | 2,871 | |||
0% 9/1/14 (AMBAC Insured) | 3,500 | 2,339 | |||
28,349 | |||||
Maine - 0.1% | |||||
Maine Tpk. Auth. Tpk. Rev. 5.25% 7/1/30 (FSA Insured) | 3,000 | 3,203 | |||
Maryland - 0.4% | |||||
Maryland Cmnty. Dev. Administration Dept. of Hsg. & Cmnty. Dev. (Residential Proj.) Series B, 5.05% 9/1/19 (f) | 495 | 496 | |||
Maryland Health & Higher Edl. Facilities Auth. Rev.: | |||||
(Good Samaritan Hosp. Proj.): | |||||
5.75% 7/1/13 (Escrowed to Maturity) (g) | 1,605 | 1,835 | |||
5.75% 7/1/13 (Escrowed to Maturity) (g) | 995 | 1,137 | |||
(Univ. of Maryland Med. Sys. Proj.) 6.75% 7/1/30 | 10,415 | 11,810 | |||
Prince Georges County Gen. Oblig. Series 2004 E, 5% 12/1/11 | 4,780 | 5,300 | |||
20,578 | |||||
Massachusetts - 6.7% | |||||
Massachusetts Bay Trans. Auth.: | |||||
Series 2000 A, 5.25% 7/1/30 | 7,105 | 7,435 | |||
Series A, 5.75% 3/1/26 | 17,795 | 19,542 | |||
Series B, 6.2% 3/1/16 | 3,800 | 4,521 | |||
Massachusetts Bay Trans. Auth. Sales Tax Rev. Sr. | 3,270 | 3,508 | |||
Massachusetts Ed. Ln. Auth. Ed. Ln. Rev.: | |||||
Series A Issue E, 4.9% 7/1/13 (AMBAC Insured) (f) | 3,805 | 3,967 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Massachusetts - continued | |||||
Massachusetts Ed. Ln. Auth. Ed. Ln. Rev.: - continued | |||||
Series B Issue E: | |||||
5.75% 7/1/05 (AMBAC Insured) (f) | $ 860 | $ 872 | |||
5.85% 7/1/06 (AMBAC Insured) (f) | 1,025 | 1,046 | |||
5.95% 7/1/07 (AMBAC Insured) (f) | 1,105 | 1,129 | |||
6.05% 7/1/08 (AMBAC Insured) (f) | 1,135 | 1,160 | |||
6.15% 7/1/10 (AMBAC Insured) (f) | 455 | 465 | |||
6.25% 7/1/11 (AMBAC Insured) (f) | 275 | 281 | |||
6.3% 7/1/12 (AMBAC Insured) (f) | 280 | 286 | |||
Massachusetts Fed. Hwy.: | |||||
Series 2000 A: | |||||
5.75% 6/15/11 | 10,000 | 11,318 | |||
5.75% 6/15/12 | 5,000 | 5,608 | |||
5.75% 6/15/13 | 5,000 | 5,633 | |||
Series B, 5.125% 12/15/09 (Pre-Refunded to 12/15/08 @ 101) (g) | 2,005 | 2,182 | |||
Massachusetts Gen. Oblig. Series D, 5.25% 10/1/21 (Pre-Refunded to 10/1/13 @ 100) (g) | 9,000 | 10,133 | |||
Massachusetts Health & Edl. Facilities Auth. Rev.: | |||||
(Blood Research Institute Proj.) Series A, 6.5% 2/1/22 | 4,095 | 4,110 | |||
(Massachusetts Gen. Hosp. Proj.) Series F, 6.25% 7/1/12 (AMBAC Insured) | 2,000 | 2,268 | |||
(New England Med. Ctr. Hosp. Proj.) Series G, 5.375% 7/1/24 (MBIA Insured) | 3,800 | 3,890 | |||
(South Shore Hosp. Proj.) Series F, 5.75% 7/1/29 | 11,930 | 12,352 | |||
(Tufts Univ. Proj.) Series I, 5.5% 2/15/36 | 10,000 | 10,738 | |||
(Univ. of Massachusetts Proj.) Series A, 5.875% 10/1/29 (FGIC Insured) | 10,000 | 11,268 | |||
(Wellesley College Proj.) Series F, 5.125% 7/1/39 | 5,705 | 5,874 | |||
Massachusetts Indl. Fin. Agcy. Resource Recovery Rev. (Ogden Haverhill Proj.): | |||||
Series 1992 A, 4.95% 12/1/06 | 2,000 | 2,054 | |||
Series A, 4.85% 12/1/05 | 2,200 | 2,233 | |||
Massachusetts Indl. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series A2: | |||||
0% 8/1/06 | 30,800 | 29,510 | |||
0% 8/1/08 | 5,000 | 4,502 | |||
0% 8/1/09 | 21,800 | 18,661 | |||
0% 8/1/10 | 2,000 | 1,626 | |||
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys. Rev. Series A, 5% 7/1/10 (Escrowed to Maturity) (g) | 3,010 | 3,145 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Massachusetts - continued | |||||
Massachusetts Port Auth. Rev. Series 1999 C, 5.75% 7/1/29 (FSA Insured) | $ 15,845 | $ 17,475 | |||
Massachusetts Spl. Oblig. Dedicated Tax Rev. 5.75% 1/1/32 (FGIC Insured) | 15,000 | 16,929 | |||
Massachusetts Tpk. Auth. Metropolitan Hwy. Sys. Rev.: | |||||
Series 1999 A, 5.25% 1/1/29 (AMBAC Insured) | 14,400 | 15,137 | |||
Sr. Series A, 5.125% 1/1/23 (MBIA Insured) | 7,950 | 8,223 | |||
Massachusetts Tpk. Auth. Western Tpk. Rev. Series A, 5.55% 1/1/17 (MBIA Insured) | 17,365 | 17,405 | |||
Massachusetts Wtr. Poll. Abatement Trust Wtr. Poll. Abatement Rev. (MWRA Ln. Prog.) Series A, 5.25% 8/1/13 | 90 | 97 | |||
Massachusetts Wtr. Resources Auth. Series A, 5.75% 8/1/39 (FGIC Insured) | 33,000 | 36,929 | |||
Route 3 North Trans. Impt. Assoc. Lease Rev. 5.75% 6/15/16 (MBIA Insured) | 4,850 | 5,469 | |||
308,981 | |||||
Michigan - 2.1% | |||||
Caladonia Cmnty. Schools Counties of Kent, Allegan and Barry 5.5% 5/1/26 (FGIC Insured) | 7,000 | 7,558 | |||
Clarkston Cmnty. Schools 5.375% 5/1/20 | 1,775 | 1,990 | |||
Detroit Gen. Oblig. Series A: | |||||
5% 4/1/06 (FSA Insured) (b) | 5,700 | 5,871 | |||
5% 4/1/07 (FSA Insured) (b) | 14,000 | 14,769 | |||
5% 4/1/10 (FSA Insured) (b) | 3,870 | 4,213 | |||
Detroit Wtr. Supply Sys. Rev. Series 2001 A, 5.25% 7/1/33 (FGIC Insured) | 4,520 | 4,722 | |||
Fowlerville Cmnty. School District 5.25% 5/1/17 | 1,425 | 1,578 | |||
Michigan Ctfs. of Prtn. 5.75% 6/1/17 (AMBAC Insured) | 1,460 | 1,640 | |||
Michigan Hosp. Fin. Auth. Hosp. Rev.: | |||||
(Mercy Health Svcs. Proj.): | |||||
Series Q, 5.375% 8/15/26 (Escrowed to Maturity) (g) | 4,750 | 4,954 | |||
Series W, 5.25% 8/15/27 (Escrowed to Maturity) (g) | 4,000 | 4,115 | |||
Series X, 6% 8/15/34 (MBIA Insured) | 10,675 | 11,907 | |||
(Sisters of Mercy Health Corp. Proj.) Series P, 5.375% 8/15/14 (Escrowed to Maturity) (g) | 420 | 456 | |||
(Trinity Health Sys. Proj.) Series 2000 A, 6% 12/1/27 | 2,000 | 2,198 | |||
Michigan Muni. Bond Auth. Rev. (State Revolving Fund Prog.) 5.125% 10/1/20 | 18,300 | 19,339 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Michigan - continued | |||||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. | |||||
Series M, 5.25% 11/15/31 (MBIA Insured) | $ 7,000 | $ 7,307 | |||
5.5% 1/1/14 | 3,695 | 3,822 | |||
6.25% 1/1/09 | 400 | 446 | |||
96,885 | |||||
Minnesota - 1.0% | |||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev.: | |||||
(Health Partners Oblig. Group Proj.) 6% 12/1/18 | 1,000 | 1,099 | |||
(Healthspan Corp. Proj.) Series A, 4.75% 11/15/18 (AMBAC Insured) | 9,700 | 9,870 | |||
Minneapolis Health Care Sys. Rev. (Allina Health Sys. Proj.) Series 2002 A, 6% 11/15/23 | 6,000 | 6,487 | |||
Minnesota Agric. & Econ. Dev. Board Rev. (Health Care Sys. Proj.) Series A, 6.375% 11/15/29 | 12,000 | 13,110 | |||
Saint Cloud Health Care Rev. (Saint Cloud Hosp. Group Oblig. Proj.) Series A, 5.875% 5/1/30 (FSA Insured) | 8,500 | 9,494 | |||
Saint Cloud Hosp. Facilities Rev. (Saint Cloud Hosp. Proj.) Series C, 5.25% 10/1/13 (AMBAC Insured) | 2,000 | 2,027 | |||
Saint Paul Port Auth. Lease Rev. Series 2003 11: | |||||
5.25% 12/1/18 | 1,710 | 1,894 | |||
5.25% 12/1/19 | 2,850 | 3,142 | |||
Waconia Independent School District #110 Series A, 5% 2/1/15 (FSA Insured) | 1,155 | 1,249 | |||
48,372 | |||||
Mississippi - 0.1% | |||||
Hinds County Rev. (Mississippi Methodist Hosp. & Rehabilitation Proj.) 5.6% 5/1/12 (AMBAC Insured) | 4,000 | 4,365 | |||
Missouri - 0.2% | |||||
Missouri Envir. Impt. & Energy Resources Auth. Wtr. Poll. Cont. & Drinking Wtr. Rev. (State Revolving Fund Prog.): | |||||
Series 2002 B, 5.5% 7/1/17 | 1,780 | 2,013 | |||
Series 2003 A: | |||||
5.125% 1/1/19 | 5,000 | 5,446 | |||
5.25% 1/1/18 | 1,280 | 1,406 | |||
Missouri Hsg. Dev. Commission Single Family Mtg. Rev. Series C, 5.5% 3/1/16 (f) | 235 | 236 | |||
9,101 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Montana - 0.4% | |||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Projs.) Series A, 5.2%, tender 5/1/09 (c) | $ 7,700 | $ 8,192 | |||
Montana Board of Invt. (Payroll Tax Workers Compensation Prog.): | |||||
Series 1996: | |||||
6.875% 6/1/20 (Escrowed to Maturity) (g) | 1,255 | 1,410 | |||
6.875% 6/1/20 (Escrowed to Maturity) (g) | 3,870 | 4,347 | |||
6.875% 6/1/20 (Escrowed to Maturity) (g) | 2,005 | 2,252 | |||
Montana Board of Regents Higher Ed. Rev. (Montana State Univ. Proj.) 5% 11/15/34 (AMBAC Insured) | 2,000 | 2,055 | |||
18,256 | |||||
Nevada - 1.3% | |||||
Clark County Arpt. Rev. Series C: | |||||
5.375% 7/1/17 (AMBAC Insured) (f) | 4,310 | 4,675 | |||
5.375% 7/1/19 (AMBAC Insured) (f) | 1,100 | 1,182 | |||
5.375% 7/1/21 (AMBAC Insured) (f) | 1,600 | 1,704 | |||
Clark County Gen. Oblig.: | |||||
Series 2000, 5.5% 7/1/30 (MBIA Insured) | 4,500 | 4,837 | |||
5.5% 7/1/21 (MBIA Insured) | 1,100 | 1,206 | |||
Clark County School District Series F, 5.5% 6/15/16 (FSA Insured) | 3,600 | 4,015 | |||
Las Vegas Valley Wtr. District Series B, 5.25% 6/1/17 (MBIA Insured) | 6,285 | 6,916 | |||
Nevada Gen. Oblig. (Cap. Impt. Proj.) Series B, 5.25% 6/1/11 | 5,025 | 5,431 | |||
Truckee Meadows Wtr. Auth. Wtr. Rev. 5.25% 7/1/34 (FSA Insured) | 18,840 | 19,746 | |||
Washoe County Gen. Oblig. (Reno Sparks Proj.) Series B: | |||||
0% 7/1/12 (FSA Insured) | 4,605 | 3,428 | |||
0% 7/1/13 (FSA Insured) | 4,590 | 3,247 | |||
0% 7/1/14 (FSA Insured) | 3,000 | 2,018 | |||
58,405 | |||||
New Hampshire - 0.0% | |||||
Nashua Gen. Oblig. 5.25% 9/15/18 | 1,000 | 1,091 | |||
New Jersey - 2.3% | |||||
Elizabeth Gen. Oblig.: | |||||
5% 8/15/07 (MBIA Insured) (b) | 1,935 | 2,025 | |||
5.25% 8/15/08 (MBIA Insured) (b) | 1,000 | 1,070 | |||
Evesham Township Muni. Utils. Auth. Rev. Series 2003 A, 5.125% 7/1/14 (AMBAC Insured) | 2,440 | 2,686 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New Jersey - continued | |||||
New Jersey Health Care Facilities Fing. Auth. Rev. (Christ Hosp. Group Issue Proj.) 7% 7/1/06 (Escrowed to Maturity) (g) | $ 1,635 | $ 1,708 | |||
New Jersey Tpk. Auth. Tpk. Rev.: | |||||
Series 2004 A, 3.15%, tender 1/1/10 | 10,900 | 10,940 | |||
Series A, 5.625% 1/1/15 (MBIA Insured) | 1,475 | 1,626 | |||
New Jersey Trans. Trust Fund Auth.: | |||||
Series 2003 C: | |||||
5.5% 6/15/16 (FSA Insured) | 2,000 | 2,241 | |||
5.5% 6/15/17 | 5,785 | 6,494 | |||
5.5% 6/15/24 | 2,000 | 2,204 | |||
Series A, 5.25% 6/15/17 (FGIC Insured) | 8,300 | 9,144 | |||
Series C: | |||||
5.5% 6/15/19 | 6,200 | 6,903 | |||
5.5% 6/15/21 | 23,700 | 26,226 | |||
North Hudson Swr. Auth. Swr. Rev. Series A: | |||||
5.25% 8/1/18 (FGIC Insured) | 3,235 | 3,568 | |||
5.25% 8/1/19 (FGIC Insured) | 2,735 | 2,992 | |||
Ocean County Utils. Auth. Wastewtr. Rev. 5.25% 1/1/07 | 1,850 | 1,901 | |||
Tobacco Settlement Fing. Corp.: | |||||
4.375% 6/1/19 | 4,200 | 4,191 | |||
5.75% 6/1/32 | 9,415 | 9,003 | |||
6.125% 6/1/24 | 8,500 | 8,474 | |||
6.125% 6/1/42 | 4,500 | 4,152 | |||
Warren County Poll. Cont. Fing. Auth. Resource Recovery Rev. 6.55% 12/1/06 (MBIA Insured) | 1,000 | 1,018 | |||
108,566 | |||||
New Mexico - 0.6% | |||||
Albuquerque Arpt. Rev.: | |||||
6.5% 7/1/08 (AMBAC Insured) (f) | 1,500 | 1,674 | |||
6.7% 7/1/18 (AMBAC Insured) (f) | 2,500 | 2,769 | |||
6.75% 7/1/09 (AMBAC Insured) (f) | 1,150 | 1,322 | |||
6.75% 7/1/10 (AMBAC Insured) (f) | 1,700 | 1,969 | |||
6.75% 7/1/12 (AMBAC Insured) (f) | 1,935 | 2,298 | |||
Bernalillo County Gross Receipt Tax Rev. 5.25% 10/1/26 | 5,790 | 6,066 | |||
New Mexico Edl. Assistance Foundation Sr. Series A3, 4.95% 3/1/09 (f) | 5,000 | 5,334 | |||
Univ. of New Mexico Univ. Revs. Series A, 6% 6/1/21 | 5,340 | 6,397 | |||
27,829 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New York - 10.2% | |||||
Erie County Indl. Dev. Agcy. School Facility Rev. (Buffalo City School District Proj.): | |||||
5.75% 5/1/14 (FSA Insured) | $ 3,500 | $ 4,075 | |||
5.75% 5/1/15 (FSA Insured) | 7,870 | 9,102 | |||
5.75% 5/1/16 (FSA Insured) | 7,120 | 8,225 | |||
5.75% 5/1/18 (FSA Insured) | 12,680 | 14,560 | |||
5.75% 5/1/20 (FSA Insured) | 8,000 | 9,228 | |||
5.75% 5/1/21 (FSA Insured) | 5,420 | 6,206 | |||
5.75% 5/1/22 (FSA Insured) | 1,000 | 1,145 | |||
5.75% 5/1/23 (FSA Insured) | 1,750 | 1,982 | |||
5.75% 5/1/25 (FSA Insured) | 3,000 | 3,415 | |||
5.75% 5/1/26 (FSA Insured) | 4,200 | 4,757 | |||
Metropolitan Trans. Auth. Dedicated Tax Fund Series A, 5.5% 11/15/26 (FSA Insured) | 2,200 | 2,408 | |||
Metropolitan Trans. Auth. Rev.: | |||||
Series 2002 A, 5% 11/15/30 (FSA Insured) | 10,000 | 10,281 | |||
Series F, 5.25% 11/15/27 (MBIA Insured) | 3,400 | 3,625 | |||
Metropolitan Trans. Auth. Svc. Contract Rev.: | |||||
Series 2002 A, 5.75% 7/1/31 (AMBAC Insured) | 3,800 | 4,274 | |||
Series A, 5.5% 1/1/20 (MBIA Insured) | 4,200 | 4,717 | |||
Series B, 5.5% 7/1/19 (MBIA Insured) | 2,000 | 2,246 | |||
Series O, 5.75% 7/1/13 (Escrowed to Maturity) (g) | 14,250 | 16,305 | |||
Nassau County Gen. Oblig. Series Z: | |||||
5% 9/1/11 (FGIC Insured) | 2,300 | 2,499 | |||
5% 9/1/12 (FGIC Insured) | 4,500 | 5,000 | |||
Nassau County Interim Fin. Auth. Series 2000 A, 5.75% 11/15/11 (MBIA Insured) | 1,000 | 1,138 | |||
New York City Gen. Oblig.: | |||||
Series 2000 A, 6.5% 5/15/11 | 6,300 | 7,295 | |||
Series 2003 A, 5.5% 8/1/20 (MBIA Insured) | 8,000 | 8,925 | |||
Series A: | |||||
5.25% 11/1/14 (MBIA Insured) | 1,850 | 2,046 | |||
6% 8/1/18 (Escrowed to Maturity) (g) | 4,900 | 4,914 | |||
Series C, 5.75% 3/15/27 (FSA Insured) | 4,000 | 4,476 | |||
Series E, 6% 8/1/11 | 165 | 176 | |||
Series G, 5.25% 8/1/14 (AMBAC Insured) | 2,500 | 2,749 | |||
New York City Indl. Dev. Agcy. Indl. Dev. Rev. (Japan Airlines Co. Ltd. Proj.) Series 1991, 6% 11/1/15 | 1,485 | 1,536 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New York - continued | |||||
New York City Indl. Dev. Agcy. Spl. Facilities Rev. (Term. One Group Assoc. Proj.) 6% 1/1/08 (f) | $ 500 | $ 506 | |||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.: | |||||
Series A: | |||||
5.125% 6/15/34 (MBIA Insured) | 13,800 | 14,340 | |||
5.75% 6/15/31 (FGIC Insured) | 2,725 | 3,001 | |||
6% 6/15/28 | 12,500 | 14,321 | |||
Series B: | |||||
5.125% 6/15/31 | 10,545 | 10,850 | |||
5.75% 6/15/26 | 6,845 | 7,406 | |||
5.75% 6/15/26 (AMBAC Insured) | 10,000 | 10,860 | |||
New York City Trust Cultural Resources Rev.: | |||||
(American Museum of Natural History Proj.) Series A, 5.65% 4/1/27 (MBIA Insured) | 6,500 | 6,991 | |||
(Museum of Modern Art Proj.) Series 2001 D, 5.125% 7/1/31 (AMBAC Insured) | 6,000 | 6,244 | |||
New York Local Govt. Assistance Corp. Series C, 5.5% 4/1/17 | 21,915 | 25,208 | |||
New York State Dorm. Auth. Revs.: | |||||
(City Univ. Sys. Consolidation Proj.): | |||||
Series A: | |||||
5.75% 7/1/09 | 4,370 | 4,850 | |||
5.75% 7/1/13 | 8,750 | 9,897 | |||
Series C, 7.5% 7/1/10 (FGIC Insured) | 24,650 | 28,038 | |||
(Long Island Jewish Med. Ctr. Proj.) 5.25% 7/1/11 (MBIA Insured) | 3,770 | 4,109 | |||
(State Univ. Edl. Facilities Proj.) Series A, 5.875% 5/15/17 (FGIC Insured) | 6,865 | 8,229 | |||
(Suffolk County Judicial Facilities Proj.) Series A, 9.5% 4/15/14 | 690 | 924 | |||
Series 2002 A, 5.75% 10/1/17 (MBIA Insured) | 3,000 | 3,445 | |||
New York State Envir. Facilities Corp. Clean Wtr. & Drinking Wtr. Rev. Series F: | |||||
4.875% 6/15/18 | 4,205 | 4,388 | |||
4.875% 6/15/20 | 8,500 | 8,836 | |||
5% 6/15/15 | 3,015 | 3,260 | |||
New York State Med. Care Facilities Fin. Agcy. Rev. (Homeowner Mtg. Prog.) Series E, 6.2% 2/15/15 | 1,445 | 1,507 | |||
New York State Thruway Auth. State Personal Income Tax Rev. Series A, 5.5% 3/15/17 | 3,500 | 3,897 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New York - continued | |||||
New York State Thruway Auth. Svc. Contract Rev. 5.5% 4/1/16 | $ 2,350 | $ 2,599 | |||
New York State Urban Dev. Corp. Rev.: | |||||
Series 2004 A2, 5.5% 3/15/21 (MBIA Insured) | 14,360 | 16,628 | |||
Series C1: | |||||
5.5% 3/15/18 (Pre-Refunded to 3/15/13 | 1,045 | 1,209 | |||
5.5% 3/15/20 (Pre-Refunded to 3/15/13 | 2,795 | 3,233 | |||
New York Thruway Auth. Second Gen. Hwy. & Bridge Trust Fund Series A, 5.25% 4/1/22 (MBIA Insured) | 2,190 | 2,384 | |||
New York Transitional Fin. Auth. Rev. Series A, 5.75% 2/15/16 | 2,800 | 3,145 | |||
Niagara Falls City Niagara County Pub. Impt. (Pub. Impt. Proj.) 7.5% 3/1/18 (MBIA Insured) | 500 | 686 | |||
Sales Tax Asset Receivables Corp. Series A, 5.25% 10/15/27 (AMBAC Insured) | 10,500 | 11,332 | |||
Tobacco Settlement Fing. Corp.: | |||||
Series A1: | |||||
5.25% 6/1/21 (AMBAC Insured) | 5,645 | 6,094 | |||
5.25% 6/1/22 (AMBAC Insured) | 3,850 | 4,139 | |||
5.5% 6/1/15 | 33,500 | 36,480 | |||
Series C1: | |||||
5.5% 6/1/14 | 7,300 | 7,916 | |||
5.5% 6/1/20 | 2,200 | 2,420 | |||
Triborough Bridge & Tunnel Auth. (Convention Ctr. Proj.) Series E, 7.25% 1/1/10 (XL Cap. Assurance, Inc. Insured) | 8,520 | 9,480 | |||
Triborough Bridge & Tunnel Auth. Revs.: | |||||
Series A, 5.25% 1/1/28 (Pre-Refunded to 7/1/22 | 13,315 | 15,264 | |||
Series B, 5.2% 1/1/27 (Pre-Refunded to 1/1/22 | 2,000 | 2,281 | |||
Series SR, 5.5% 1/1/12 (Escrowed to Maturity) (g) | 10,025 | 11,166 | |||
Series Y, 5.5% 1/1/17 (Escrowed to Maturity) (g) | 7,200 | 8,325 | |||
473,193 | |||||
New York & New Jersey - 0.1% | |||||
Port Auth. of New York & New Jersey 124th Series, 5% 8/1/13 (FGIC Insured) (f) | 3,400 | 3,581 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
North Carolina - 4.9% | |||||
Catawba County Ctfs. of Prtn. (Pub. School and Cmnty. College Proj.) 5.25% 6/1/20 (MBIA Insured) | $ 1,800 | $ 1,979 | |||
Dare County Ctfs. of Prtn.: | |||||
5.25% 6/1/17 (AMBAC Insured) | 1,620 | 1,788 | |||
5.25% 6/1/18 (AMBAC Insured) | 1,620 | 1,772 | |||
5.25% 6/1/19 (AMBAC Insured) | 1,540 | 1,693 | |||
5.25% 6/1/22 (AMBAC Insured) | 1,620 | 1,756 | |||
5.25% 6/1/23 (AMBAC Insured) | 1,620 | 1,754 | |||
North Carolina Cap. Facilities Fin. Agcy. Rev. (Duke Univ. Proj.) Series A: | |||||
5.125% 10/1/41 | 6,380 | 6,512 | |||
5.125% 7/1/42 | 32,200 | 32,951 | |||
5.25% 7/1/42 | 9,805 | 10,177 | |||
North Carolina Ctfs. of Prtn. (Repair and Renovation Proj.) Series B, 5.25% 6/1/17 | 3,600 | 3,982 | |||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | |||||
Series A: | |||||
5.5% 1/1/11 | 8,675 | 9,483 | |||
5.75% 1/1/26 | 4,000 | 4,217 | |||
Series B: | |||||
5.875% 1/1/21 (MBIA Insured) | 22,725 | 24,585 | |||
7% 1/1/08 | 9,650 | 10,746 | |||
7.25% 1/1/07 | 8,375 | 9,071 | |||
Series C: | |||||
5.25% 1/1/09 | 2,500 | 2,690 | |||
5.5% 1/1/07 | 5,950 | 6,245 | |||
7% 1/1/07 | 15,715 | 16,945 | |||
Series D: | |||||
5.375% 1/1/10 | 4,500 | 4,868 | |||
6.7% 1/1/19 | 5,000 | 5,605 | |||
6.75% 1/1/26 | 7,000 | 7,803 | |||
North Carolina Infrastructure Fin. Corp. Ctfs. of Prtn. (North Carolina Correctional Facilities Proj.) Series A: | |||||
5% 2/1/19 | 2,945 | 3,151 | |||
5% 2/1/20 | 1,500 | 1,597 | |||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.: | |||||
Series 1992, 7.25% 1/1/07 | 5,200 | 5,637 | |||
Series 1999 B, 6.375% 1/1/08 | 7,000 | 7,671 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
North Carolina - continued | |||||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.: - continued | |||||
Series A: | |||||
5.125% 1/1/15 (MBIA Insured) | $ 6,860 | $ 7,222 | |||
5.125% 1/1/17 (MBIA Insured) | 31,350 | 33,108 | |||
225,008 | |||||
North Dakota - 0.8% | |||||
Mercer County Poll. Cont. Rev.: | |||||
(Antelope Valley Station/Basin Elec. Pwr. Coop. Proj.) 7.2% 6/30/13 (AMBAC Insured) | 26,000 | 31,791 | |||
(Montana-Dakota Utils. Co. Proj.) 6.65% 6/1/22 (FGIC Insured) | 3,750 | 3,763 | |||
35,554 | |||||
Ohio - 1.3% | |||||
Cincinnati Gen. Oblig. (Police & Firemen's Disability Proj.) 6% 12/1/35 | 11,000 | 12,588 | |||
Franklin County Hosp. Rev. 5.5% 5/1/28 (AMBAC Insured) | 4,265 | 4,605 | |||
Hilliard School District 5.75% 12/1/24 (FGIC Insured) | 4,725 | 5,345 | |||
Lake Local School District Stark County Series 2000, 5.75% 12/1/26 (FGIC Insured) | 2,760 | 3,092 | |||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.) 5.5% 2/15/08 | 1,225 | 1,312 | |||
Montgomery County Rev. (Catholic Health Initiatives Proj.) Series A: | |||||
6% 12/1/19 | 4,905 | 5,573 | |||
6% 12/1/19 (Escrowed to Maturity) (g) | 5,095 | 5,856 | |||
6% 12/1/26 (Escrowed to Maturity) (g) | 10,000 | 11,392 | |||
Ohio Solid Waste Rev. (Waste Mgmt., Inc. Proj.) 4.85%, tender 11/1/07 (c)(f) | 5,000 | 5,204 | |||
Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B, 6.375% 11/15/30 | 3,000 | 3,186 | |||
Univ. of Cincinnati Ctfs. of Prtn. 5.125% 6/1/28 (MBIA Insured) | 3,750 | 3,876 | |||
62,029 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Oklahoma - 0.8% | |||||
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) 6% 2/15/29 | $ 15,000 | $ 16,379 | |||
Oklahoma Industries Auth. Rev. (Health Sys. Oblig. Group Proj.) Series A, 5.75% 8/15/29 (MBIA Insured) | 19,750 | 21,574 | |||
37,953 | |||||
Oregon - 0.6% | |||||
Clackamas County School District #62C, Oregon City Series 2004: | |||||
5% 6/15/18 (FSA Insured) | 1,325 | 1,428 | |||
5% 6/15/19 (FSA Insured) | 3,395 | 3,671 | |||
Port Morrow Poll. Cont. Rev. (Pacific Northwest Proj.) Series A: | |||||
8% 7/15/06 | 385 | 400 | |||
8% 7/15/07 | 430 | 447 | |||
8% 7/15/08 | 480 | 499 | |||
8% 7/15/09 | 540 | 561 | |||
8% 7/15/10 | 605 | 629 | |||
8% 7/15/11 | 385 | 400 | |||
Portland Swr. Sys. Rev.: | |||||
Series 2000 A, 5.75% 8/1/18 (FGIC Insured) | 3,000 | 3,389 | |||
5.75% 8/1/20 (FGIC Insured) | 14,390 | 16,202 | |||
27,626 | |||||
Pennsylvania - 1.6% | |||||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/07 (MBIA Insured) (f) | 6,500 | 6,850 | |||
Canon McMillan School District Series 2001 B, 5.75% 12/1/33 (FGIC Insured) | 3,000 | 3,344 | |||
Chester County Health & Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series B, 5.25% 5/15/22 (AMBAC Insured) | 4,400 | 4,630 | |||
Delaware County Auth. Hosp. Rev. (Crozer-Chester Med. Ctr. Proj.) 6% 12/15/20 | 2,900 | 2,921 | |||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A: | |||||
6% 6/1/22 (AMBAC Insured) | 2,000 | 2,414 | |||
6.1% 6/1/12 (AMBAC Insured) | 3,000 | 3,507 | |||
6.125% 6/1/14 (AMBAC Insured) | 5,230 | 6,216 | |||
Northumberland County Auth. Commonwealth Lease Rev. (State Correctional Facilities Proj.) 0% 10/15/13 (Escrowed to Maturity) (g) | 11,455 | 8,189 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Pennsylvania - continued | |||||
Pennsylvania Convention Ctr. Auth. Rev. Series A: | |||||
6.6% 9/1/09 (MBIA Insured) | $ 3,000 | $ 3,084 | |||
6.7% 9/1/14 (MBIA Insured) | 1,500 | 1,542 | |||
6.7% 9/1/16 (Escrowed to Maturity) (g) | 2,000 | 2,436 | |||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Amtrak Proj.) Series 2001 A, 6.375% 11/1/41 (f) | 8,700 | 9,089 | |||
Pennsylvania Econ. Dev. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series 2004 A, 3.95%, tender 11/1/09 (c)(f) | 5,000 | 5,016 | |||
Pennsylvania Hsg. Fin. Agcy.: | |||||
Series 54A, 5.375% 10/1/28 (f) | 555 | 563 | |||
Series C, 8.1% 7/1/13 | 1,435 | 1,444 | |||
Philadelphia Arpt. Rev. Series 1998, 5.375% 6/15/10 (FGIC Insured) (f) | 4,425 | 4,814 | |||
Philadelphia Gen. Oblig. Series 2003 A: | |||||
5% 2/15/10 (XL Cap. Assurance, Inc. Insured) | 2,000 | 2,183 | |||
5% 2/15/12 (XL Cap. Assurance, Inc. Insured) | 1,000 | 1,101 | |||
Quaker Valley School District 5.5% 4/1/24 | 1,405 | 1,562 | |||
West Allegheny School District Series B, 5.25% 2/1/14 (FGIC Insured) | 2,010 | 2,268 | |||
73,173 | |||||
Puerto Rico - 0.4% | |||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev.: | |||||
Series 1998, 5.75% 7/1/22 (CIFG North America Insured) | 2,300 | 2,635 | |||
5.75% 7/1/19 (FGIC Insured) | 3,240 | 3,730 | |||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A: | |||||
5.5% 10/1/32 (Escrowed to Maturity) (g) | 6,900 | 7,539 | |||
5.5% 10/1/40 (Escrowed to Maturity) (g) | 1,200 | 1,306 | |||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series 2002 KK, 5.5% 7/1/15 (MBIA Insured) | 3,885 | 4,529 | |||
19,739 | |||||
Rhode Island - 0.3% | |||||
Providence Redev. Agcy. Rev. Series A, 5.75% 4/1/29 (AMBAC Insured) | 6,400 | 7,059 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Rhode Island - continued | |||||
Rhode Island Health & Edl. Bldg. Corp. Rev. (Univ. of Rhode Island Univ. Revs. Proj.) Series A: | |||||
5.25% 9/15/15 (AMBAC Insured) | $ 1,725 | $ 1,928 | |||
5.25% 9/15/16 (AMBAC Insured) | 1,815 | 2,030 | |||
5.25% 9/15/18 (AMBAC Insured) | 1,005 | 1,103 | |||
5.5% 9/15/24 (AMBAC Insured) | 2,000 | 2,212 | |||
14,332 | |||||
South Carolina - 0.9% | |||||
Charleston County Gen. Oblig. 6% 6/1/13 | 2,500 | 2,635 | |||
Lexington County Health Svcs. District, Inc. Hosp. Rev. 6% 11/1/18 | 3,500 | 3,919 | |||
Piedmont Muni. Pwr. Agcy. Elec. Rev. Series B, 5.25% 1/1/11 (MBIA Insured) | 8,625 | 9,186 | |||
Richland County Hosp. Facilities Rev. (Cmnty. Provider Pooled Ln. Prog.) Series A, 7.125% 7/1/17 | 1,500 | 1,852 | |||
Rock Hill Util. Sys. Rev. Series 2003 A: | |||||
5.375% 1/1/17 (FSA Insured) | 2,100 | 2,331 | |||
5.375% 1/1/23 (FSA Insured) | 1,025 | 1,120 | |||
South Carolina Jobs Econ. Dev. Auth. Hosp. Facilities Rev. (Palmetto Health Alliance Proj.) Series A, 7.375% 12/15/21 (Pre-Refunded to 12/15/10 @ 102) (g) | 4,000 | 4,932 | |||
South Carolina Ports Auth. Ports Rev. 5.5% 7/1/08 | 3,515 | 3,839 | |||
South Carolina Pub. Svc. Auth. Rev. Series A: | |||||
5.5% 1/1/15 (FGIC Insured) (b) | 5,000 | 5,534 | |||
5.75% 1/1/10 (MBIA Insured) | 4,705 | 4,951 | |||
York County Wtr. & Swr. Rev. 5.25% 12/1/30 | 1,120 | 1,189 | |||
41,488 | |||||
South Dakota - 0.0% | |||||
South Dakota Lease Rev. Series A, 6.625% 9/1/12 | 1,000 | 1,209 | |||
Tennessee - 1.4% | |||||
Knox County Health Edl. & Hsg. Facilities Board Hosp. Facilities Rev. (Fort Sanders Alliance Proj.) Series C: | |||||
5.25% 1/1/15 (MBIA Insured) | 3,300 | 3,680 | |||
5.75% 1/1/14 (MBIA Insured) | 2,000 | 2,314 | |||
7.25% 1/1/10 (MBIA Insured) | 2,660 | 3,160 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Tennessee - continued | |||||
Memphis-Shelby County Arpt. Auth. Arpt. Rev.: | |||||
Series A: | |||||
6.25% 2/15/09 (MBIA Insured) (f) | $ 1,500 | $ 1,675 | |||
6.25% 2/15/10 (MBIA Insured) (f) | 1,000 | 1,128 | |||
6.25% 2/15/11 (MBIA Insured) (f) | 1,415 | 1,611 | |||
Series B, 6.5% 2/15/09 (MBIA Insured) (f) | 500 | 563 | |||
Metropolitan Govt. Nashville & Davidson County Health & Edl. Facilities Board Rev. (Ascension Health Cr. Group Proj.) Series A: | |||||
5.875% 11/15/28 (Pre-Refunded to 11/15/09 | 3,100 | 3,568 | |||
6% 11/15/30 (Pre-Refunded to 11/15/09 @ 101) (g) | 4,400 | 5,089 | |||
Metropolitan Govt. Nashville & Davidson County Sports Auth. Rev. (Stadium Proj.) 5.875% 7/1/21 (AMBAC Insured) | 6,455 | 6,867 | |||
Metropolitan Govt. Nashville & Davidson County Wtr. & Swr. Sys. Rev. 7.7% 1/1/12 (FGIC Insured) | 5,600 | 6,882 | |||
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Hosp. Proj.): | |||||
6.5% 9/1/26 (Escrowed to Maturity) (g) | 8,410 | 9,993 | |||
6.5% 9/1/26 (Pre-Refunded to 9/1/12 @ 100) (g) | 14,090 | 17,075 | |||
63,605 | |||||
Texas - 12.4% | |||||
Argyle Independent School District 5.25% 8/15/40 (FSA Insured) (b) | 1,745 | 1,821 | |||
Arlington Gen. Oblig. 5% 8/15/18 (FGIC Insured) | 1,215 | 1,309 | |||
Austin Util. Sys. Rev. 0% 5/15/10 (MBIA Insured) | 7,970 | 6,666 | |||
Austin Wtr. & Wastewtr. Sys. Rev. 5.5% 5/15/16 | 2,200 | 2,425 | |||
Bexar Metropolitan Wtr. District Wtrwks. Sys. Rev. 5.375% 5/1/20 (FSA Insured) | 1,660 | 1,821 | |||
Birdville Independent School District: | |||||
0% 2/15/11 | 8,665 | 6,947 | |||
0% 2/15/13 | 13,690 | 9,897 | |||
Brazos River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series 1995 B, 5.05%, tender 6/19/06 (c)(f) | 4,815 | 4,957 | |||
Canyon Independent School District Series A, 5.5% 2/15/21 | 1,855 | 2,056 | |||
Cedar Hill Independent School District 0% 8/15/09 | 1,575 | 1,333 | |||
Clint Independent School District: | |||||
5.5% 8/15/19 | 1,055 | 1,172 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
Clint Independent School District: - continued | |||||
5.5% 8/15/20 | $ 1,110 | $ 1,228 | |||
5.5% 8/15/21 | 1,175 | 1,295 | |||
Conroe Independent School District: | |||||
Series B, 0% 2/15/10 | 2,805 | 2,367 | |||
0% 2/15/11 | 1,500 | 1,203 | |||
Corpus Christi Gen. Oblig. 5% 3/1/11 (AMBAC Insured) | 1,660 | 1,828 | |||
Cypress-Fairbanks Independent School District: | |||||
Series A: | |||||
0% 2/15/12 | 20,900 | 15,880 | |||
0% 2/15/13 | 6,425 | 4,645 | |||
0% 2/15/14 | 11,465 | 7,844 | |||
0% 2/15/16 | 9,700 | 5,942 | |||
5.25% 2/15/22 | 3,500 | 3,709 | |||
5.75% 2/15/19 | 4,400 | 4,965 | |||
5.75% 2/15/21 | 1,000 | 1,126 | |||
Dallas Independent School District: | |||||
Series 2005, 5.25% 8/15/10 (b) | 2,810 | 3,062 | |||
Series 5, 5.25% 8/15/13 (b) | 1,000 | 1,100 | |||
Denton County Lewisville Independent School District Series 2004, 5% 8/15/16 | 3,465 | 3,729 | |||
Duncanville Independent School District 5.65% 2/15/28 | 5,550 | 6,046 | |||
Edinburg Consolidated Independent School District 5.5% 2/15/30 | 5,025 | 5,363 | |||
Elgin Independent School District 5.25% 10/1/24 | 2,000 | 2,105 | |||
Fort Worth Wtr. & Swr. Rev. 5% 2/15/16 (FSA Insured) (b) | 6,000 | 6,535 | |||
Frisco Independent School District 5.375% 8/15/17 | 2,715 | 3,010 | |||
Garland Independent School District Series A, 4% 2/15/17 | 5,000 | 5,003 | |||
Guadalupe-Blanco River Auth. Contract Rev. (Western Canyon Reg'l. Wtr. Supply Proj.): | |||||
5.25% 4/15/15 (MBIA Insured) | 1,570 | 1,743 | |||
5.25% 4/15/16 (MBIA Insured) | 1,680 | 1,855 | |||
5.25% 4/15/17 (MBIA Insured) | 2,295 | 2,519 | |||
5.25% 4/15/18 (MBIA Insured) | 1,915 | 2,084 | |||
5.25% 4/15/19 (MBIA Insured) | 1,000 | 1,098 | |||
5.25% 4/15/20 (MBIA Insured) | 1,565 | 1,711 | |||
Harlandale Independent School District: | |||||
5.5% 8/15/35 | 3,625 | 3,894 | |||
5.7% 8/15/30 | 6,290 | 6,905 | |||
6% 8/15/16 | 35 | 40 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
Harris County Gen. Oblig.: | |||||
0% 10/1/13 (MBIA Insured) | $ 5,550 | $ 3,889 | |||
0% 10/1/14 (MBIA Insured) | 11,000 | 7,331 | |||
0% 8/15/25 (MBIA Insured) | 3,000 | 1,069 | |||
0% 8/15/28 (MBIA Insured) | 5,000 | 1,461 | |||
Harris County Health Facilities Dev. Corp. Rev. (Saint Luke's Episcopal Hosp. Proj.) Series 2001 A: | |||||
5.375% 2/15/26 | 3,000 | 3,088 | |||
5.625% 2/15/13 | 4,625 | 5,097 | |||
Harris County Hosp. District Mtg. Rev.: | |||||
7.4% 2/15/10 (AMBAC Insured) | 1,545 | 1,729 | |||
7.4% 2/15/10 (Escrowed to Maturity) (g) | 1,035 | 1,114 | |||
Houston Area Wtr. Corp. Contract Rev. (Northeast Wtr. Purification Proj.) 5.5% 3/1/15 (FGIC Insured) | 1,985 | 2,222 | |||
Houston Arpt. Sys. Rev.: | |||||
Series A: | |||||
5.625% 7/1/20 (FSA Insured) (f) | 2,000 | 2,177 | |||
5.625% 7/1/21 (FSA Insured) (f) | 3,350 | 3,636 | |||
6% 7/1/08 (FGIC Insured) (f) | 1,000 | 1,100 | |||
Series B, 5.5% 7/1/30 (FSA Insured) | 10,645 | 11,360 | |||
Houston Independent School District: | |||||
Series A, 0% 8/15/11 | 6,400 | 5,016 | |||
0% 8/15/13 | 9,835 | 6,905 | |||
Hurst Euless Bedford Independent School District: | |||||
0% 8/15/11 | 3,620 | 2,837 | |||
0% 8/15/12 | 5,105 | 3,788 | |||
0% 8/15/13 | 3,610 | 2,545 | |||
Katy Independent School District: | |||||
Series A, 5% 2/15/16 | 2,500 | 2,709 | |||
0% 8/15/11 | 4,170 | 3,268 | |||
Keller Independent School District: | |||||
Series 1996 A, 0% 8/15/17 | 2,000 | 1,135 | |||
Series A, 5.125% 8/15/25 | 3,000 | 3,053 | |||
Kennedale Independent School District 5.5% 2/15/29 | 3,335 | 3,618 | |||
Killeen Independent School District: | |||||
5.25% 2/15/17 | 2,105 | 2,298 | |||
5.25% 2/15/18 | 1,325 | 1,440 | |||
La Joya Independent School District: | |||||
5.25% 2/15/23 | 2,940 | 3,181 | |||
5.5% 2/15/22 | 8,140 | 8,864 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
Little Elm Independent School District 5.5% 8/15/21 | $ 2,540 | $ 2,804 | |||
Lower Colorado River Auth. Rev.: | |||||
0% 1/1/09 (Escrowed to Maturity) (g) | 3,000 | 2,682 | |||
5.25% 1/1/15 (Escrowed to Maturity) (g) | 6,260 | 7,103 | |||
5.25% 5/15/18 (AMBAC Insured) | 2,020 | 2,199 | |||
Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission Services Corp. Proj.) Series C: | |||||
5.25% 5/15/18 (AMBAC Insured) | 1,000 | 1,089 | |||
5.25% 5/15/19 (AMBAC Insured) | 1,000 | 1,099 | |||
5.25% 5/15/20 (AMBAC Insured) | 2,000 | 2,188 | |||
Mansfield Independent School District 5.5% 2/15/18 | 3,855 | 4,262 | |||
Mesquite Independent School District 5.375% 8/15/11 | 1,385 | 1,507 | |||
Midlothian Independent School District 0% 2/15/10 | 1,525 | 1,287 | |||
Midway Independent School District 0% 8/15/19 | 3,600 | 1,826 | |||
Montgomery County Gen. Oblig. Series A, 5.625% 3/1/20 (FSA Insured) | 3,800 | 4,226 | |||
North Central Health Facilities Dev. Corp. Rev. | 5,215 | 6,022 | |||
Northside Independent School District 5.5% 2/15/12 | 3,715 | 4,173 | |||
Pflugerville Gen. Oblig. 5.5% 8/1/22 (AMBAC Insured) | 1,000 | 1,104 | |||
Prosper Independent School District 5.75% 8/15/29 | 1,250 | 1,397 | |||
Robstown Independent School District 5.25% 2/15/29 | 3,165 | 3,338 | |||
Rockwall Independent School District: | |||||
5.375% 2/15/19 | 1,450 | 1,585 | |||
5.375% 2/15/20 | 1,230 | 1,340 | |||
5.375% 2/15/21 | 1,560 | 1,699 | |||
5.625% 2/15/12 | 4,090 | 4,622 | |||
5.625% 2/15/13 | 1,190 | 1,338 | |||
5.625% 2/15/14 | 1,160 | 1,302 | |||
Round Rock Independent School District: | |||||
Series 2001 A, 5.5% 8/1/16 | 2,305 | 2,572 | |||
0% 8/15/11 (MBIA Insured) | 4,300 | 3,381 | |||
4.5% 8/1/17 | 5,575 | 5,682 | |||
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series B, 5.75%, tender 11/1/11 (c)(f) | 16,000 | 17,456 | |||
San Antonio Elec. & Gas Systems Rev.: | |||||
Series B: | |||||
0% 2/1/09 (Escrowed to Maturity) (g) | 7,000 | 6,243 | |||
0% 2/1/10 (Escrowed to Maturity) (g) | 19,000 | 15,894 | |||
0% 2/1/12 (Escrowed to Maturity) (g) | 7,000 | 5,355 | |||
5.375% 2/1/18 | 5,000 | 5,484 | |||
5.375% 2/1/19 | 6,000 | 6,558 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
San Antonio Gen. Oblig.: | |||||
5.5% 2/1/15 | $ 1,975 | $ 2,207 | |||
5.5% 2/1/15 (Pre-Refunded to 2/1/12 @ 100) (g) | 25 | 29 | |||
San Antonio Independent School District Series A, 5.375% 8/15/16 | 1,000 | 1,104 | |||
San Antonio Wtr. Sys. Rev.: | |||||
5.875% 5/15/19 | 3,000 | 3,371 | |||
6.5% 5/15/10 (Escrowed to Maturity) (g) | 440 | 519 | |||
San Benito Consolidated Independent School District 6% 2/15/25 | 6,200 | 7,039 | |||
Socorro Independent School District 5.375% 8/15/18 | 1,090 | 1,193 | |||
South San Antonio Independent School District 5% 8/15/17 | 1,025 | 1,104 | |||
Southlake Gen. Oblig. Series 2000 D, 5.75% 2/15/21 (AMBAC Insured) | 2,345 | 2,595 | |||
Southwest Higher Ed. Auth. Rev. (Southern Methodist Univ. Proj.) 5.5% 10/1/17 (AMBAC Insured) | 3,825 | 4,282 | |||
Spring Branch Independent School District: | |||||
Series 2001: | |||||
5.375% 2/1/12 | 2,000 | 2,225 | |||
5.375% 2/1/13 | 3,130 | 3,476 | |||
5.375% 2/1/18 | 3,600 | 3,927 | |||
Tarrant County Health Facilities Dev. Corp. Hosp. Rev. 5.375% 11/15/20 | 5,750 | 5,956 | |||
Texas Gen. Oblig.: | |||||
(College Student Ln. Prog.) 5% 8/1/12 (f) | 6,655 | 7,086 | |||
5.25% 10/1/11 | 7,150 | 7,698 | |||
5.75% 8/1/26 | 5,000 | 5,575 | |||
Texas Pub. Fin. Auth. Bldg. Rev.: | |||||
Series 1990: | |||||
0% 2/1/12 (MBIA Insured) | 4,400 | 3,348 | |||
0% 2/1/14 (MBIA Insured) | 6,900 | 4,728 | |||
0% 2/1/09 (MBIA Insured) | 2,000 | 1,767 | |||
Texas Tpk. Auth. Central Tpk. Sys. Rev.: | |||||
5.5% 8/15/39 (AMBAC Insured) | 37,550 | 40,497 | |||
5.75% 8/15/38 (AMBAC Insured) | 27,550 | 30,724 | |||
Texas Tpk. Auth. Dallas North Tollway Rev.: | |||||
0% 1/1/10 (Escrowed to Maturity) (g) | 3,000 | 2,569 | |||
5.25% 1/1/23 (FGIC Insured) | 18,775 | 19,654 | |||
Texas Wtr. Dev. Board Rev. Series B, 5.625% 7/15/21 | 1,000 | 1,100 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
Trinity River Auth. Rev. (Tarrant County Wtr. Proj.): | |||||
5.5% 2/1/19 (MBIA Insured) | $ 1,665 | $ 1,859 | |||
5.5% 2/1/22 (MBIA Insured) | 2,000 | 2,196 | |||
Tyler Health Facilities Dev. Corp. Hosp. Rev. | |||||
5.75% 7/1/27 | 1,000 | 1,026 | |||
6% 7/1/31 | 6,225 | 6,468 | |||
United Independent School District 5.25% 8/15/22 | 4,340 | 4,663 | |||
Weatherford Independent School District: | |||||
Series 2000, 0% 2/15/25 (Pre-Refunded to 2/15/10 @ 36.782) (g) | 6,155 | 1,932 | |||
0% 2/15/22 (Pre-Refunded to 2/15/10 @ 45.084) (g) | 2,980 | 1,146 | |||
0% 2/15/26 (Pre-Refunded to 2/15/10 @ 34.41) (g) | 2,985 | 876 | |||
0% 2/15/33 | 6,985 | 1,541 | |||
White Settlement Independent School District 5.75% 8/15/30 | 2,890 | 3,225 | |||
Wichita Falls Wtr. & Swr. Rev. Series 2001, 5.375% 8/1/24 (AMBAC Insured) | 3,000 | 3,220 | |||
Williamson County Gen. Oblig.: | |||||
5.5% 2/15/18 (FSA Insured) | 4,005 | 4,437 | |||
5.5% 2/15/20 (FSA Insured) | 4,520 | 4,995 | |||
576,342 | |||||
Utah - 2.5% | |||||
Intermountain Pwr. Agcy. Pwr. Supply Rev.: | |||||
Series A: | |||||
6% 7/1/16 (AMBAC Insured) | 5,640 | 6,198 | |||
6% 7/1/16 (Escrowed to Maturity) (g) | 9,205 | 9,980 | |||
Series B: | |||||
5.75% 7/1/16 (MBIA Insured) | 30,260 | 33,072 | |||
6% 7/1/16 (MBIA Insured) | 29,500 | 31,595 | |||
Series D, 5% 7/1/21 (MBIA Insured) | 12,100 | 12,514 | |||
Salt Lake City Hosp. Rev. (Intermountain Health Care Hosp., Inc. Proj.) Series A, 8.125% 5/15/15 (Escrowed to Maturity) (g) | 2,975 | 3,804 | |||
Salt Lake County Hosp. Rev. (IHC Health Svcs., Inc. Proj.) 5.5% 5/15/11 (AMBAC Insured) | 9,000 | 10,116 | |||
Utah Associated Muni. Pwr. Sys. Rev. (Payson Pwr. Proj.) Series A: | |||||
5.25% 4/1/16 (FSA Insured) | 3,590 | 3,960 | |||
5.25% 4/1/17 (FSA Insured) | 4,335 | 4,753 | |||
115,992 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Vermont - 0.3% | |||||
Vermont Edl. & Health Bldgs. Fing. Agcy. Rev. (Fletcher Allen Health Care, Inc. Proj.): | |||||
Series 2000 A, 6.125% 12/1/27 (AMBAC Insured) | $ 8,600 | $ 9,781 | |||
Series A, 5.75% 12/1/18 (AMBAC Insured) | 3,100 | 3,507 | |||
13,288 | |||||
Virginia - 0.2% | |||||
Peninsula Ports Auth. Hosp. Facilities Rev. (Whittaker Memorial Hosp. Proj.) 8.7% 8/1/23 | 1,475 | 1,793 | |||
Virginia Beach Dev. Auth. Hosp. Facilities Rev. (Virginia Beach Gen. Hosp. Proj.): | |||||
6% 2/15/12 (AMBAC Insured) | 2,150 | 2,494 | |||
6% 2/15/13 (AMBAC Insured) | 1,460 | 1,707 | |||
Virginia Hsg. Dev. Auth. Multi-family Hsg. Rev. Series I, 5.95% 5/1/09 (f) | 1,890 | 1,964 | |||
7,958 | |||||
Washington - 5.9% | |||||
Chelan County Pub. Util. District #1 Rev. Series 2005 A, 5.125%, tender 7/1/15 (FGIC Insured) (b)(c)(f) | 2,430 | 2,584 | |||
Chelan County School District #246, Wenatchee 5.5% 12/1/19 (FSA Insured) | 3,535 | 3,927 | |||
Clark County School District #37, Vancouver Series C, 0% 12/1/19 (FGIC Insured) | 2,000 | 999 | |||
Douglas County Pub. Util. District #1 Wells Hydroelectric Rev. Series A, 8.75% 9/1/18 | 2,790 | 3,228 | |||
Energy Northwest Elec. Rev.: | |||||
(#1 Proj.) Series 2001 A, 5.5% 7/1/12 | 5,000 | 5,638 | |||
(#3 Proj.) Series B, 6% 7/1/16 (AMBAC Insured) | 28,000 | 32,377 | |||
King County Swr. Rev. Series B, 5.125% 1/1/33 | 22,390 | 23,126 | |||
Mead School District #354, Spokane County 5.375% 12/1/19 (FSA Insured) | 2,575 | 2,869 | |||
Port of Seattle Rev.: | |||||
Series B: | |||||
5.5% 9/1/09 (FGIC Insured) (f) | 3,800 | 4,024 | |||
5.6% 9/1/10 (FGIC Insured) (f) | 4,005 | 4,246 | |||
5.6% 9/1/10 (Pre-Refunded to 9/1/06 | 225 | 239 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Washington - continued | |||||
Port of Seattle Rev.: - continued | |||||
Series D: | |||||
5.75% 11/1/13 (FGIC Insured) (f) | $ 1,500 | $ 1,692 | |||
5.75% 11/1/14 (FGIC Insured) (f) | 3,055 | 3,435 | |||
5.75% 11/1/16 (FGIC Insured) (f) | 2,250 | 2,522 | |||
Seattle Wtr. Sys. Rev. Series B, 5.75% 7/1/23 (FGIC Insured) | 3,175 | 3,546 | |||
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.) 4.5% 12/1/11 (FGIC Insured) | 1,155 | 1,235 | |||
Snohomish County School District #2, Everett 5.5% 12/1/16 (FSA Insured) | 1,475 | 1,654 | |||
Spokane Pub. Facilities District Hotel & Motel Tax & Sales Use Tax Rev. 5.75% 12/1/19 (MBIA Insured) | 2,000 | 2,323 | |||
Tacoma Elec. Sys. Rev.: | |||||
Series 2001 A, 5.75% 1/1/20 (FSA Insured) | 6,500 | 7,322 | |||
Series A, 5.625% 1/1/21 (FSA Insured) | 10,000 | 11,117 | |||
Thurston & Pierce Counties Cmnty. Schools 5.25% 12/1/17 (FSA Insured) | 2,000 | 2,198 | |||
Washington Gen. Oblig.: | |||||
Series 2000 A, 5.625% 7/1/24 | 5,185 | 5,652 | |||
Series 2001 C, 5.25% 1/1/16 | 7,070 | 7,705 | |||
Series C, 5.25% 1/1/26 (FSA Insured) | 15,800 | 16,748 | |||
Series R 97A: | |||||
0% 7/1/17 | 7,015 | 3,966 | |||
0% 7/1/19 (MBIA Insured) | 9,100 | 4,636 | |||
Washington Health Care Facilities Auth. Rev. (Providence Health Systems Proj.) Series A, 5.5% 10/1/12 (MBIA Insured) | 5,455 | 6,091 | |||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #1 Rev.: | |||||
(Bonneville Pwr. Administration Proj.) Series B, 7% 7/1/08 | 1,000 | 1,144 | |||
Series A: | |||||
5.75% 7/1/10 (MBIA Insured) | 5,000 | 5,333 | |||
7% 7/1/08 | 310 | 355 | |||
Series B, 5.125% 7/1/13 | 14,600 | 15,720 | |||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev.: | |||||
Series A: | |||||
0% 7/1/11 (Escrowed to Maturity) (g) | 1,350 | 1,057 | |||
5.125% 7/1/11 (FSA Insured) | 10,420 | 11,219 | |||
5.4% 7/1/12 | 56,550 | 63,070 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Washington - continued | |||||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #3 Rev.: | |||||
Series A, 0% 7/1/12 (MBIA Insured) | $ 4,000 | $ 2,937 | |||
0% 7/1/08 (MBIA Insured) | 3,000 | 2,700 | |||
0% 7/1/10 (MBIA Insured) | 2,800 | 2,301 | |||
270,935 | |||||
West Virginia - 0.6% | |||||
Marshall County Poll. Cont. Rev. (Ohio Pwr. Co./Kammer Plant Proj.) Series B, 5.45% 7/1/14 (MBIA Insured) | 22,650 | 22,927 | |||
West Virginia Wtr. Dev. Auth. Infrastructure Rev. | 5,000 | 5,504 | |||
28,431 | |||||
Wisconsin - 0.9% | |||||
Badger Tobacco Asset Securitization Corp. 6.125% 6/1/27 | 6,190 | 6,148 | |||
Douglas County Gen. Oblig. 5.5% 2/1/19 (FGIC Insured) | 3,155 | 3,491 | |||
Menomonee Falls Wtr. Sys. Mtg. Rev. 5.875% 12/1/16 (FSA Insured) | 3,375 | 3,588 | |||
Wisconsin Gen. Oblig. Series 2002 F, 5.5% 5/1/15 (FSA Insured) | 3,755 | 4,195 | |||
Wisconsin Health & Edl. Facilities Auth. Rev. (Wheaton Franciscan Svcs., Inc. Proj.): | |||||
Series A: | |||||
5.5% 8/15/15 | 1,480 | 1,608 | |||
5.5% 8/15/16 | 1,545 | 1,663 | |||
5.75% 8/15/30 | 14,250 | 15,013 | |||
6.25% 8/15/22 | 4,300 | 4,721 | |||
Wisconsin Hsg. & Econ. Dev. Auth. Home Ownership Rev. Series F, 5.2% 9/1/26 (f) | 155 | 157 | |||
40,584 | |||||
Wyoming - 0.1% | |||||
Gillette Spl. Purp. Wtr. & Swr. Utils. Sys. Rev. 7.7% 12/1/10 (Escrowed to Maturity) (g) | 5,080 | 6,181 | |||
TOTAL MUNICIPAL BONDS (Cost $4,341,596) | 4,624,292 | ||||
Money Market Funds - 0.0% | |||||
Shares | Value (Note 1) | ||||
Fidelity Municipal Cash Central Fund, 1.99% (d)(e) | 100,000 | $ 100 | |||
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $4,341,696) | 4,624,392 | ||||
NET OTHER ASSETS - 0.1% | 5,671 | ||||
NET ASSETS - 100% | $ 4,630,063 |
Legend |
(a) Debt obligation 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 or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(d) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(f) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(g) Security collateralized by an amount sufficient to pay interest and principal. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 32.9% |
Electric Utilities | 15.0% |
Health Care | 11.2% |
Transportation | 10.7% |
Water & Sewer | 9.8% |
Escrowed/Pre-Refunded | 6.7% |
Special Tax | 6.2% |
Others* (individually less than 5%) | 7.5% |
100.0% |
* Includes net other assets |
Income Tax Information |
The fund hereby designates as capital gain dividends: For dividends with respect to the taxable year ended December 31, 2004, $56,317,000 or, if different, the net capital gain of such year, and for dividends with respect to the taxable year ended December 31, 2003, $4,569,000 or, if different, the excess of (a) the net capital gain of such year, over (b) amounts previously designated as capital gain dividends with respect to such year. |
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, 2004 | |
Assets | ||
Investment in securities, at value (cost $4,341,696) - See accompanying schedule | $ 4,624,392 | |
Cash | 3,782 | |
Receivable for fund shares sold | 1,608 | |
Interest receivable | 67,280 | |
Prepaid expenses | 18 | |
Other receivables | 30 | |
Total assets | 4,697,110 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 57,331 | |
Payable for fund shares redeemed | 2,114 | |
Distributions payable | 5,641 | |
Accrued management fee | 1,444 | |
Other affiliated payables | 384 | |
Other payables and accrued expenses | 133 | |
Total liabilities | 67,047 | |
Net Assets | $ 4,630,063 | |
Net Assets consist of: | ||
Paid in capital | $ 4,332,613 | |
Undistributed net investment income | 1,539 | |
Accumulated undistributed net realized gain (loss) on investments | 13,215 | |
Net unrealized appreciation (depreciation) on investments | 282,696 | |
Net Assets, for 353,812 shares outstanding | $ 4,630,063 | |
Net Asset Value, offering price and redemption price per share ($4,630,063 ÷ 353,812 shares) | $ 13.09 |
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, 2004 | |
Investment Income | ||
Interest | $ 227,495 | |
Expenses | ||
Management fee | $ 17,668 | |
Transfer agent fees | 3,601 | |
Accounting fees and expenses | 636 | |
Non-interested trustees' compensation | 28 | |
Custodian fees and expenses | 73 | |
Registration fees | 83 | |
Audit | 72 | |
Legal | 16 | |
Miscellaneous | 134 | |
Total expenses before reductions | 22,311 | |
Expense reductions | (96) | 22,215 |
Net investment income | 205,280 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 58,460 | |
Futures contracts | 608 | |
Total net realized gain (loss) | 59,068 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (56,914) | |
Futures contracts | (107) | |
Total change in net unrealized appreciation (depreciation) | (57,021) | |
Net gain (loss) | 2,047 | |
Net increase (decrease) in net assets resulting from operations | $ 207,327 |
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 | $ 205,280 | $ 211,567 |
Net realized gain (loss) | 59,068 | 79,676 |
Change in net unrealized appreciation (depreciation) | (57,021) | (23,742) |
Net increase (decrease) in net assets resulting | 207,327 | 267,501 |
Distributions to shareholders from net investment income | (205,071) | (211,728) |
Distributions to shareholders from net realized gain | (44,159) | (72,466) |
Total distributions | (249,230) | (284,194) |
Share transactions | 596,717 | 715,293 |
Reinvestment of distributions | 167,758 | 196,844 |
Cost of shares redeemed | (876,891) | (911,880) |
Net increase (decrease) in net assets resulting from share transactions | (112,416) | 257 |
Redemption fees | 39 | 76 |
Total increase (decrease) in net assets | (154,280) | (16,360) |
Net Assets | ||
Beginning of period | 4,784,343 | 4,800,703 |
End of period (including undistributed net investment income of $1,539 and undistributed net investment income of $2,625, respectively) | $ 4,630,063 | $ 4,784,343 |
Other Information Shares | ||
Sold | 45,363 | 54,068 |
Issued in reinvestment of distributions | 12,826 | 14,891 |
Redeemed | (67,381) | (69,173) |
Net increase (decrease) | (9,192) | (214) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000 I | 2000 F |
Selected Per-Share Data | ||||||
Net asset value, | $ 13.18 | $ 13.22 | $ 12.68 | $ 12.70 | $ 12.40 | $ 12.07 |
Income from Investment Operations | ||||||
Net investment income D | .571 | .585 | .603 | .617 G | .053 | .626 |
Net realized and unrealized gain (loss) | .035 | .162 | .697 | .011 G | .303 | .337 |
Total from investment operations | .606 | .747 | 1.300 | .628 | .356 | .963 |
Distributions from net investment income | (.571) | (.585) | (.600) | (.613) | (.053) | (.627) |
Distributions from net realized gain | (.125) | (.202) | (.160) | (.035) | (.003) | (.006) |
Total distributions | (.696) | (.787) | (.760) | (.648) | (.056) | (.633) |
Redemption fees added to paid in capital | - D, H | - D, H | - D, H | - D, H | - | - |
Net asset value, | $ 13.09 | $ 13.18 | $ 13.22 | $ 12.68 | $ 12.70 | $ 12.40 |
Total Return B, C | 4.73% | 5.80% | 10.48% | 5.00% | 2.87% | 8.24% |
Ratios to Average Net Assets E | ||||||
Expenses before expense reductions | .47% | .48% | .48% | .47% | .47% A | .48% |
Expenses net of voluntary waivers, if any | .47% | .48% | .48% | .47% | .47% A | .48% |
Expenses net of all reductions | .47% | .47% | .46% | .43% | .42% A | .48% |
Net investment income | 4.36% | 4.42% | 4.62% | 4.80% G | 4.98% A | 5.17% |
Supplemental Data | ||||||
Net assets, | $ 4,630 | $ 4,784 | $ 4,801 | $ 4,527 | $ 4,464 | $ 4,313 |
Portfolio turnover rate | 20% | 23% | 23% | 27% | 4% A | 26% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary 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 fund.
F For the year ended November 30.
G Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.
H Amount represents less than $.001 per share.
I For the one month ended December 31, 2000.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2004
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Spartan 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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities, including restricted securities, are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period. Book-tax differences are primarily due to futures transactions, market discount and losses deferred due to wash sales and futures transactions.
The fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 284,755 | |
Unrealized depreciation | (3,825) | |
Net unrealized appreciation (depreciation) | 280,930 | |
Undistributed long-term capital gain | 14,808 | |
Cost for federal income tax purposes | $ 4,343,462 |
The tax character of distributions paid was as follows:
December 31, | December 31, | |
Tax-exempt Income | $ 205,071 | $ 211,728 |
Ordinary Income | 0 | 3,582 |
Long-term Capital Gains | 44,159 | 68,884 |
Total | $ 249,230 | $ 284,194 |
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 30 days will be subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
Annual Report
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Futures Contracts. The fund may use futures contracts to manage its exposure to the bond market and to fluctuations in interest rates. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. Losses may arise from changes in the value of the underlying instruments or if the counter-parties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $945,244 and $1,108,124, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the fund's average net assets and a group fee rate that averaged .13% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .38% of the fund's average net assets.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the fund. Citibank has entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the fund's transfer and shareholder servicing agent and accounting functions. The fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period, the transfer agent fees were equivalent to an annual rate of .08% of average net assets.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $135 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
Through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and transfer agent expenses by $73 and $23, respectively.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Spartan 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 Spartan Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2004 and the results of its operations, the changes in its net assets and the financial highlights for 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 Spartan 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, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2005
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for William O. McCoy, Dennis J. Dirks, and Kenneth L. Wolfe, each of the Trustees oversees 301 funds advised by FMR or an affiliate. Mr. McCoy oversees 303 funds advised by FMR or an affiliate. Mr. Dirks and Mr. Wolfe oversee 233 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
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" (as defined in the 1940 Act) may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (74)** | |
Year of Election or Appointment: 1984 Trustee of Fidelity Municipal Trust. Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (43)** | |
Year of Election or Appointment: 2001 Senior Vice President of Spartan Municipal Income (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (50) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (52) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* 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.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (56) | |
Year of Election or Appointment: 2005 Mr. Dirks also serves as Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). | |
Robert M. Gates (61) | |
Year of Election or Appointment: 1997 Dr. Gates is Vice Chairman of the non-interested Trustees (2005). Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001), and Brinker International (restaurant management, 2003). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
George H. Heilmeier (68) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001), Teletech Holdings (customer management services), and HRL Laboratories (private research and development, 2004). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE) (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), and Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002). | |
Marie L. Knowles (58) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (60) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Co-Chairman and a Director of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Italtel Holding S.p.A. (telecommunications (Milan, Italy), 2004) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (71) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals), where he served as CEO until April 1998, retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. He is a member of the Executive Committee of the Independent Director's Council of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (71) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), and Progress Energy, Inc. (electric utility). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
Cornelia M. Small (60) | |
Year of Election or Appointment: 2004 Ms. Small is a member (2000) and Chairperson (2002) of the Investment Committee, and a member (2002) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1998). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (65) | |
Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman of the Board (2000), CEO (2002), a position he previously held from 1995-2000, Chairman of the Executive Committee (2000), and a Member of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (65) | |
Year of Election or Appointment: 2004 Mr. Wolfe also serves as Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003), Bausch & Lomb, Inc., and Revlon Inc. (2004). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (61) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Dwight D. Churchill (51) | |
Year of Election or Appointment: 1997 Vice President of Spartan Municipal Income. He serves as Head of Fidelity's Fixed-Income Division (2000), Vice President of Fidelity's Money Market Funds (2000), Vice President of Fidelity's Bond Funds (1997), and Senior Vice President of FIMM (2000) and FMR (1997). Mr. Churchill joined Fidelity in 1993 as Vice President and Group Leader of Taxable Fixed-Income Investments. | |
Charles S. Morrison (44) | |
Year of Election or Appointment: 2002 Vice President of Spartan Municipal Income. Mr. Morrison also serves as Vice President of Fidelity's Bond Funds (2002), and Vice President of certain Asset Allocation and Balanced Funds (2002). He serves as Vice President (2002) and Bond Group Leader (2002) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002) and FMR (2002). Mr. Morrison joined Fidelity in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
Christine J. Thompson (46) | |
Year of Election or Appointment: 2002 | |
Eric D. Roiter (56) | |
Year of Election or Appointment: 1998 Secretary of Spartan Municipal Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Vice President and Secretary of FDC; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Management & Research (Far East) Inc. (2001-present) and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). | |
Stuart Fross (45) | |
Year of Election or Appointment: 2003 Assistant Secretary of Spartan Municipal Income. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Christine Reynolds (46) | |
Year of Election or Appointment: 2004 President, Treasurer, and Anti-Money Laundering (AML) officer of Spartan Municipal Income. Ms. Reynolds also serves as President, Treasurer, and AML officer of other Fidelity funds (2004) and is a Vice President (2003) and an employee (2002) of FMR. Before joining Fidelity Investments, Ms. Reynolds worked at PricewaterhouseCoopers LLP (PwC) (1980-2002), where she was most recently an audit partner with PwC's investment management practice. | |
Timothy F. Hayes (54) | |
Year of Election or Appointment: 2002 Chief Financial Officer of Spartan Municipal Income. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
Kenneth A. Rathgeber (57) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Spartan Municipal Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004) and Executive Vice President of Risk Oversight for Fidelity Investments (2002). Previously, he served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
John R. Hebble (46) | |
Year of Election or Appointment: 2003 Deputy Treasurer of Spartan Municipal Income. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
Kimberley H. Monasterio (41) | |
Year of Election or Appointment: 2004 Deputy Treasurer of Spartan Municipal Income. Ms. Monasterio also serves as Deputy Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
John H. Costello (58) | |
Year of Election or Appointment: 1986 Assistant Treasurer of Spartan Municipal Income. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (50) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Spartan Municipal Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (49) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Spartan Municipal Income. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Kenneth B. Robins (35) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Spartan Municipal Income. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Annual Report
Distributions
The Board of Trustees of Spartan Municipal Income Fund voted to pay on February 7, 2005, to shareholders of record at the opening of business on February 4, 2005, a distribution of $.042 per share derived from capital gains realized from sales of portfolio securities.
During fiscal year ended 2004, 100% of the fund's income dividends were free from federal income tax, and 6.71% of the fund's income dividends were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2005 of amounts for use in preparing 2004 income tax returns.
Annual Report
Proxy Voting Results
A special meeting of the fund's shareholders was held on April 14, 2004. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* | ||
# of | % of | |
Affirmative | 3,415,899,540.41 | 73.098 |
Against | 857,186,718.73 | 18.343 |
Abstain | 194,806,370.40 | 4.169 |
Broker | 205,155,704.48 | 4.390 |
TOTAL | 4,673,048,334.02 | 100.000 |
PROPOSAL 2 | ||
To elect a Board of Trustees.* | ||
# of | % of | |
J. Michael Cook | ||
Affirmative | 4,338,349,812.56 | 92.838 |
Withheld | 334,698,521.46 | 7.162 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ralph F. Cox | ||
Affirmative | 4,334,671,421.01 | 92.759 |
Withheld | 338,376,913.01 | 7.241 |
TOTAL | 4,673,048,334.02 | 100.000 |
Laura B. Cronin | ||
Affirmative | 4,332,816,177.06 | 92.719 |
Withheld | 340,232,156.96 | 7.281 |
TOTAL | 4,673,048,334.02 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,336,851,658.96 | 92.806 |
Withheld | 336,196,675.06 | 7.194 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
George H. Heilmeier | ||
Affirmative | 4,334,549,149.07 | 92.756 |
Withheld | 338,499,184.95 | 7.244 |
TOTAL | 4,673,048,334.02 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 4,327,320,608.55 | 92.602 |
Withheld | 345,727,725.47 | 7.398 |
TOTAL | 4,673,048,334.02 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 4,322,104,507.32 | 92.490 |
Withheld | 350,943,826.70 | 7.510 |
TOTAL | 4,673,048,334.02 | 100.000 |
Donald J. Kirk | ||
Affirmative | 4,335,814,201.97 | 92.783 |
Withheld | 337,234,132.05 | 7.217 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marie L. Knowles | ||
Affirmative | 4,333,892,089.64 | 92.742 |
Withheld | 339,156,244.38 | 7.258 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,340,856,926.26 | 92.891 |
Withheld | 332,191,407.76 | 7.109 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marvin L. Mann | ||
Affirmative | 4,336,736,818.96 | 92.803 |
Withheld | 336,311,515.06 | 7.197 |
TOTAL | 4,673,048,334.02 | 100.000 |
William O. McCoy | ||
Affirmative | 4,338,426,324.60 | 92.839 |
Withheld | 334,622,009.42 | 7.161 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
Robert L. Reynolds | ||
Affirmative | 4,339,017,198.22 | 92.852 |
Withheld | 334,031,135.80 | 7.148 |
TOTAL | 4,673,048,334.02 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,338,546,239.15 | 92.842 |
Withheld | 334,502,094.87 | 7.158 |
TOTAL | 4,673,048,334.02 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
To Visit Fidelity
For directions and hours,
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Annual Report
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Annual Report
Investment Adviser
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Spartan®
Ohio Municipal Income
Fund
and
Fidelity ®
Ohio Municipal Money Market
Fund
Annual Report
December 31, 2004
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Spartan 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, | |
Fidelity Ohio Municipal Money Market Fund | ||
Investment Changes/ | A summary of major shifts in the fund's investments over the past six months and one year. | |
Investments | A complete list of the fund's investments. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the Financial Statements | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
Proxy Voting Results |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Spartan Ohio Municipal Income Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2004 | Past 1 | Past 5 | Past 10 |
Spartan® OH Municipal Income Fund | 4.44% | 7.21% | 6.74% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Spartan® Ohio Municipal Income Fund on December 31, 1994. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Spartan Ohio Municipal Income Fund
Comments from Doug McGinley, Portfolio Manager of Spartan® Ohio Municipal Income Fund
Despite persistent inflation concerns and the Federal Reserve Board raising interest rates multiple times in the second half of the year, the municipal bond market registered positive performance for the year ending December 31, 2004. In that time, the Lehman Brothers® Municipal Bond Index rose 4.48%. In comparison, the Lehman Brothers Aggregate Bond Index - a proxy of the overall investment-grade taxable debt market - returned 4.34%. This marks the second consecutive year in which tax-free munis outperformed taxable bonds on an absolute basis. Demand for munis generally was strong in 2004, except for a rough patch in the spring when strong labor markets fueled expectations of rising inflation. Shortly thereafter, the Fed began a series of five 0.25 percentage-point interest rate hikes between June 30 and December 14. While munis typically don't react well to such actions, they responded with positive returns in each of the year's final six months, partly due to reassurances by the Fed that it intended to raise rates in a "measured fashion."
For the 12 months ending December 31, 2004, the fund returned 4.44%. During the same period, the LipperSM Ohio Municipal Debt Funds Average returned 3.62% and the Lehman Brothers Ohio 4 Plus Year Enhanced Municipal Bond Index returned 4.58%. Ohio munis performed in line with most state muni markets, although continued low interest rates muted bond returns during the past year. Likely aiding the fund's outperformance of its Lipper peer group average was its slight overweighting in lower-quality investment-grade muni bonds, particularly in the health care, utility and corporate-backed sectors. Demand for these bonds generally was quite strong, as each sector was helped by advantageous developments. Security selection within each group also generally was favorable. However, I suspect performance was curtailed by not owning even more lower-quality bonds given how well they performed. I continued to avoid positioning the fund to benefit from a specific interest rate outlook during the period, a strategy that was helpful during most of the year given the uncertainty surrounding the pace of economic growth, the rate of inflation and the direction of interest rates.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2004 to December 31, 2004).
Actual Expenses
The first line of the table below for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below 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.
Annual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | |
Spartan Ohio Municipal Income Fund | |||
Actual | $ 1,000.00 | $ 1,056.00 | $ 2.53 |
HypotheticalA | $ 1,000.00 | $ 1,022.67 | $ 2.49 |
Fidelity Ohio Municipal Money Market Fund | |||
Actual | $ 1,000.00 | $ 1,004.90 | $ 2.72 |
HypotheticalA | $ 1,000.00 | $ 1,022.42 | $ 2.75 |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Annualized | |
Spartan Ohio Municipal Income Fund | .49% |
Fidelity Ohio Municipal Money Market Fund | .54% |
Annual Report
Spartan Ohio Municipal Income Fund
Investment Changes
Top Five Sectors as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
General Obligations | 49.4 | 49.9 |
Education | 13.9 | 11.6 |
Water & Sewer | 9.1 | 10.9 |
Health Care | 7.6 | 7.6 |
Escrowed/Pre-Refunded | 4.2 | 2.0 |
Average Years to Maturity as of December 31, 2004 | ||
6 months ago | ||
Years | 14.3 | 14.0 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2004 | ||
6 months ago | ||
Years | 7.1 | 7.5 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2004 | As of June 30, 2004 | ||||||
![]() | AAA 57.9% | ![]() | AAA 52.3% | ||||
![]() | AA,A 37.9% | ![]() | AA,A 42.1% | ||||
![]() | BBB 3.0% | ![]() | BBB 2.7% | ||||
![]() | BB and Below 0.0% | ![]() | BB and Below 1.7% | ||||
![]() | Not Rated 0.7% | ![]() | Not Rated 1.5% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
* Short-Term Investments and Net Other Assets are not included in the pie chart. |
Annual Report
Spartan Ohio Municipal Income Fund
Investments December 31, 2004
Showing Percentage of Net Assets
Municipal Bonds - 99.5% | ||||
Principal | Value | |||
Ohio - 96.9% | ||||
Adams County Valley Local School District (Adams & Highland County Proj.) 5.25% 12/1/21 (MBIA Insured) | $ 2,000,000 | $ 2,092,820 | ||
Akron City Nontax Rev. Econ. Dev. Series 1997, 6% 12/1/12 (MBIA Insured) | 1,250,000 | 1,474,550 | ||
Akron Gen. Oblig. 5.5% 12/1/21 | 2,000,000 | 2,213,300 | ||
Akron Wtrwks. Rev. 5.25% 12/1/19 (MBIA Insured) | 1,630,000 | 1,794,712 | ||
Avon Lake City School District 5.5% 12/1/26 (FGIC Insured) | 2,205,000 | 2,406,868 | ||
Bowling Green Univ. Gen. Receipts: | ||||
5.75% 6/1/11 (FGIC Insured) | 1,455,000 | 1,656,779 | ||
5.75% 6/1/14 (FGIC Insured) | 1,190,000 | 1,350,150 | ||
5.75% 6/1/16 (FGIC Insured) | 1,250,000 | 1,415,563 | ||
Brookville Local School District 5.25% 12/1/20 (FSA Insured) | 1,875,000 | 2,068,275 | ||
Buckeye Valley Local School District Delaware County Series A, 6.85% 12/1/15 (MBIA Insured) | 2,500,000 | 3,065,375 | ||
Butler County Gen. Oblig. 5.25% 12/1/16 | 1,820,000 | 2,029,391 | ||
Butler County Trans. Impt. District Series 1997 A, 6% 4/1/10 (FSA Insured) | 2,325,000 | 2,601,629 | ||
Chagrin Falls Exempted Village School District 5.25% 12/1/19 (MBIA Insured) (a) | 1,915,000 | 2,115,711 | ||
Cincinnati City School District: | ||||
5.25% 6/1/16 (FSA Insured) | 1,500,000 | 1,661,310 | ||
5.25% 12/1/17 (FSA Insured) | 2,000,000 | 2,207,760 | ||
Cincinnati Gen. Oblig.: | ||||
(Police & Firemen's Disability Proj.) 6% 12/1/35 | 5,000,000 | 5,721,700 | ||
5.375% 12/1/20 | 2,000,000 | 2,198,440 | ||
Cincinnati Student Ln. Fdg. Corp. Student Ln. Rev. | 4,000,000 | 4,016,600 | ||
Cincinnati Wtr. Sys. Rev. Series 2001, 5.5% 12/1/17 | 2,000,000 | 2,222,840 | ||
Cleveland Arpt. Sys. Rev. Series A, 5.5% 1/1/08 | 1,500,000 | 1,614,900 | ||
Cleveland Gen. Oblig.: | ||||
5.25% 12/1/17 (FGIC Insured) | 1,355,000 | 1,468,115 | ||
5.5% 9/1/16 (AMBAC Insured) | 2,000,000 | 2,136,720 | ||
Cleveland Muni. School District: | ||||
5% 12/1/19 (FGIC Insured) | 1,000,000 | 1,067,870 | ||
5.25% 12/1/17 (FSA Insured) | 2,215,000 | 2,455,837 | ||
5.25% 12/1/19 (FSA Insured) | 1,000,000 | 1,109,560 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Ohio - continued | ||||
Cleveland Pub. Pwr. Sys. Rev. (First Mtg. Prog.) Series A: | ||||
0% 11/15/10 (MBIA Insured) | $ 2,685,000 | $ 2,185,859 | ||
0% 11/15/11 (MBIA Insured) | 2,685,000 | 2,085,037 | ||
Cleveland State Univ. Gen. Receipts Series 2003 A, 5% 6/1/18 (FGIC Insured) | 2,490,000 | 2,660,665 | ||
Cleveland Wtrwks. Rev.: | ||||
(First Mtg. Prog.): | ||||
Series G, 5.5% 1/1/13 (MBIA Insured) | 2,450,000 | 2,755,540 | ||
Series H, 5.75% 1/1/16 (MBIA Insured) | 45,000 | 47,348 | ||
Series I: | ||||
5% 1/1/28 (FSA Insured) | 25,000 | 25,656 | ||
5% 1/1/28 (Pre-Refunded to 1/1/08 @ 101) (d) | 25,000 | 27,150 | ||
Columbus City School District 5.25% 12/1/25 (FSA Insured) | 3,780,000 | 4,127,609 | ||
Cuyahoga County Gen. Oblig.: | ||||
Series A: | ||||
0% 10/1/09 (MBIA Insured) | 4,200,000 | 3,626,868 | ||
0% 10/1/11 (MBIA Insured) | 2,400,000 | 1,885,824 | ||
0% 10/1/12 (MBIA Insured) | 1,505,000 | 1,128,073 | ||
5.75% 12/1/11 | 3,600,000 | 4,100,688 | ||
5.75% 12/1/12 | 1,950,000 | 2,199,912 | ||
5.75% 12/1/13 | 2,210,000 | 2,509,720 | ||
5.75% 12/1/14 | 1,460,000 | 1,655,479 | ||
Dublin Gen. Oblig. Series 2000 B, 6% 12/1/15 | 3,140,000 | 3,659,168 | ||
Erie County Gen. Oblig. 5.5% 12/1/18 (FSA Insured) | 1,265,000 | 1,419,861 | ||
Fairborn City School District (School Impt. Proj.) 5.75% 12/1/26 (FSA Insured) | 2,200,000 | 2,469,852 | ||
Fairfield City School District 7.45% 12/1/14 (FGIC Insured) | 1,000,000 | 1,272,530 | ||
Franklin County Gen. Oblig.: | ||||
5.375% 12/1/20 | 2,000,000 | 2,193,020 | ||
5.5% 12/1/15 | 1,225,000 | 1,305,336 | ||
5.5% 12/1/16 | 1,290,000 | 1,374,598 | ||
Franklin County Hosp. Rev.: | ||||
(Holy Cross Health Sys. Corp. Proj.) 5.875% 6/1/21 | 1,000,000 | 1,039,210 | ||
5.5% 5/1/13 (AMBAC Insured) | 1,130,000 | 1,266,877 | ||
Franklin County Rev. (OCLC Online Computer Library Ctr., Inc. Proj.) 5% 4/15/12 | 2,505,000 | 2,669,804 | ||
Gallia County Hosp. Facilities Rev. (Holzer Med. Ctr. Proj.) 5.125% 10/1/13 (AMBAC Insured) | 3,000,000 | 3,215,310 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Ohio - continued | ||||
Greene County Swr. Sys. Rev. 0% 12/1/09 (AMBAC Insured) | $ 775,000 | $ 665,159 | ||
Hamilton County Convention Facilities Auth. Rev.: | ||||
5% 12/1/17 (FGIC Insured) | 1,985,000 | 2,160,355 | ||
5% 12/1/18 (FGIC Insured) | 1,075,000 | 1,160,291 | ||
5% 12/1/19 (FGIC Insured) | 2,190,000 | 2,353,067 | ||
5% 12/1/19 (FGIC Insured) | 1,130,000 | 1,214,140 | ||
Hamilton County Gen. Oblig.: | ||||
5.25% 12/1/16 | 1,900,000 | 2,035,470 | ||
5.25% 12/1/17 | 2,005,000 | 2,144,488 | ||
Hamilton County Hosp. Facilities Rev. (Childrens Hosp. Med. Ctr. Proj.) Series J: | ||||
5.25% 5/15/15 (FGIC Insured) | 1,835,000 | 2,044,392 | ||
5.25% 5/15/17 (FGIC Insured) | 2,585,000 | 2,843,603 | ||
5.25% 5/15/18 (FGIC Insured) | 2,720,000 | 2,965,426 | ||
Hamilton County Sales Tax Series B, 5.25% 12/1/32 (AMBAC Insured) | 4,745,000 | 5,010,625 | ||
Hamilton County Swr. Sys. Rev. (Metropolitan Swr. District Proj.) Series A, 5.75% 12/1/25 (MBIA Insured) | 6,000,000 | 6,756,540 | ||
Hamilton Wtrwks. Rev. 5% 10/15/16 (MBIA Insured) | 1,000,000 | 1,089,670 | ||
Hilliard School District: | ||||
Series A, 5% 12/1/20 (FGIC Insured) | 1,000,000 | 1,033,880 | ||
0% 12/1/11 (FGIC Insured) | 3,720,000 | 2,901,712 | ||
5.75% 12/1/28 (FGIC Insured) | 3,005,000 | 3,365,089 | ||
Kent City School District Series 2004, 5% 12/1/20 (FGIC Insured) | 1,400,000 | 1,501,682 | ||
Kings Local School District 6.1% 12/1/25 | 6,800,000 | 7,897,656 | ||
Lake Local School District Stark County Series 2000, 5.75% 12/1/26 (FGIC Insured) | 2,780,000 | 3,114,156 | ||
Lakewood City School District 5.25% 12/1/15 (FSA Insured) | 1,000,000 | 1,128,420 | ||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.): | ||||
5.5% 2/15/10 | 1,000,000 | 1,090,380 | ||
5.5% 2/15/11 | 1,875,000 | 2,052,638 | ||
5.5% 2/15/12 | 1,000,000 | 1,097,840 | ||
Licking Heights Local School District (Facilities Construction & Impt. Proj.) Series A, 5.5% 12/1/24 (FGIC Insured) | 2,400,000 | 2,636,544 | ||
Lorain County 5.5% 12/1/22 (FGIC Insured) | 2,985,000 | 3,304,962 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Ohio - continued | ||||
Lucas County Hosp. Rev. (Promedia Health Care Oblig. Group Proj.): | ||||
5.375% 11/15/23 (AMBAC Insured) | $ 5,000,000 | $ 5,362,600 | ||
5.625% 11/15/12 (AMBAC Insured) | 2,000,000 | 2,235,720 | ||
5.625% 11/15/13 (AMBAC Insured) | 1,200,000 | 1,337,400 | ||
Marion County Hosp. Impt. Rev. (Cmnty. Hosp. Proj.) 6.1% 5/15/06 | 1,000,000 | 1,033,940 | ||
Medina City School District 5.25% 12/1/28 (FGIC Insured) | 11,175,000 | 11,723,916 | ||
Middletown City School District: | ||||
5% 12/1/17 (FGIC Insured) | 1,175,000 | 1,265,910 | ||
5% 12/1/19 (FGIC Insured) | 1,110,000 | 1,193,294 | ||
Milford Exempt Villlage School District 5.125% 12/1/30 (FSA Insured) | 5,335,000 | 5,533,996 | ||
Montgomery County Gen. Oblig. 5.5% 12/1/25 | 2,235,000 | 2,452,108 | ||
Montgomery County Rev. (Catholic Health Initiatives Proj.) Series A: | ||||
6% 12/1/19 | 1,470,000 | 1,670,258 | ||
6% 12/1/19 (Escrowed to Maturity) (d) | 1,530,000 | 1,758,613 | ||
6% 12/1/26 (Escrowed to Maturity) (d) | 3,000,000 | 3,417,690 | ||
Montgomery County Wtr. Sys. Rev. Series 2002, 5.375% 11/15/16 (AMBAC Insured) | 2,200,000 | 2,446,092 | ||
Ohio Air Quality Dev. Auth. Rev.: | ||||
(Ohio Edison Co. Proj.) Series A, 3.25%, tender 2/1/08 (AMBAC Insured) (b) | 2,000,000 | 2,019,980 | ||
(Pennsylvania Pwr. Co. Proj.) 3.375%, tender 7/1/05 (b) | 3,000,000 | 2,993,670 | ||
Ohio Bldg. Auth.: | ||||
(Administration Bldg. Fund Prog.) Series A: | ||||
4.75% 10/1/17 | 1,000,000 | 1,035,520 | ||
5% 4/1/11 (FSA Insured) | 1,425,000 | 1,571,504 | ||
(Adult Correctional Bldg. Fund Prog.): | ||||
Series 1999 A, 5.5% 10/1/11 | 3,370,000 | 3,819,861 | ||
Series 2001 A: | ||||
5.5% 10/1/11 (FSA Insured) | 1,930,000 | 2,194,564 | ||
5.5% 10/1/12 (FSA Insured) | 1,000,000 | 1,129,970 | ||
Series A, 5% 4/1/20 (MBIA Insured) | 1,000,000 | 1,072,550 | ||
(Juvenile Correctional Bldg. Fund Prog.): | ||||
Series A, 5.5% 4/1/12 | 2,960,000 | 3,315,466 | ||
5% 4/1/17 (MBIA Insured) | 2,485,000 | 2,674,084 | ||
(Sports Facilities Bldg. Fund Prog.) Series 1999 A, 5.25% 10/1/12 | 2,940,000 | 3,233,412 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Ohio - continued | ||||
Ohio Bldg. Auth.: - continued | ||||
(William Green Bldg. Proj.) Series A, 5% 4/1/11 (FGIC Insured) | $ 2,000,000 | $ 2,205,620 | ||
Ohio Gen. Oblig.: | ||||
(College Savings Prog.): | ||||
0% 8/1/09 | 2,290,000 | 1,974,369 | ||
0% 8/1/10 | 2,000,000 | 1,641,200 | ||
0% 8/1/14 | 1,375,000 | 933,226 | ||
(Higher Ed. Cap. Facilities Proj.) Series A, 5.375% 8/1/16 | 5,980,000 | 6,621,654 | ||
(Mental Health Cap. Facilities Proj.): | ||||
Series IIA, 5.25% 6/1/17 | 2,670,000 | 2,914,172 | ||
Series IIB, 5.5% 6/1/15 | 2,265,000 | 2,515,985 | ||
Series 2001 IIA, 5.5% 12/1/13 | 2,020,000 | 2,262,380 | ||
Series 2002 B, 5.25% 11/1/20 | 2,520,000 | 2,761,542 | ||
Series A, 5.5% 9/15/16 | 11,060,000 | 12,383,879 | ||
Ohio Higher Edl. Facility Commission Rev.: | ||||
(Case Western Reserve Univ. 2002 Proj.): | ||||
Series B: | ||||
5.5% 10/1/21 | 2,000,000 | 2,213,280 | ||
6.5% 10/1/20 | 2,335,000 | 2,906,958 | ||
Series C, 5.125% 10/1/17 | 2,985,000 | 3,182,040 | ||
6.125% 10/1/15 | 2,000,000 | 2,408,720 | ||
6.25% 10/1/16 | 2,500,000 | 3,054,250 | ||
(Denison Univ. Proj.) 5.5% 11/1/14 | 1,000,000 | 1,126,340 | ||
(Univ. of Dayton Proj.): | ||||
5% 12/1/17 (AMBAC Insured) | 2,170,000 | 2,370,096 | ||
5.5% 12/1/20 (AMBAC Insured) | 1,300,000 | 1,443,767 | ||
Ohio Hsg. Fin. Agcy. Mtg. Rev. (Residential Proj.): | ||||
Series B2, 5.375% 9/1/19 (c) | 720,000 | 720,230 | ||
Series C, 4.9% 9/1/26 (c) | 360,000 | 362,531 | ||
Ohio Muni. Elec. Gen. Agcy. (Belleville Hydroelectric Proj.) 5% 2/15/17 (AMBAC Insured) | 1,215,000 | 1,310,815 | ||
Ohio Poll. Cont. Rev. (Standard Oil Co. Proj.) 6.75% 12/1/15 | 3,100,000 | 3,900,637 | ||
Ohio Pub. Facilities Commission Rev. (Mental Health Cap. Facilities Proj.) Series 2000 IIA, 5.375% 6/1/14 | 2,200,000 | 2,419,670 | ||
Ohio Solid Waste Rev. (Waste Mgmt., Inc. Proj.) 4.85%, tender 11/1/07 (b)(c) | 3,000,000 | 3,122,550 | ||
Ohio State Univ. Gen. Receipts: | ||||
Series 2002 A, 5.125% 12/1/31 | 5,000,000 | 5,182,200 | ||
Series A, 5.8% 12/1/29 | 3,300,000 | 3,667,125 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Ohio - continued | ||||
Ohio State Univ. Gen. Receipts: - continued | ||||
Series B, 5.25% 6/1/16 | $ 5,000,000 | $ 5,524,900 | ||
Ohio Tpk. Commission Tpk. Rev.: | ||||
Series A, 5.5% 2/15/21 (FGIC Insured) | 5,000,000 | 5,825,700 | ||
5.5% 2/15/26 | 3,700,000 | 4,006,434 | ||
Ohio Univ. Gen. Receipts Athens 5% 12/1/18 (MBIA Insured) | 1,980,000 | 2,129,054 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. (Toledo Edison Co. Proj.) Series B, 4.5%, tender 9/1/05 (b) | 2,000,000 | 2,013,020 | ||
Ohio Wtr. Dev. Auth. Rev.: | ||||
(Drinking Wtr. Fund Prog.) Series 2002, 5.5% 12/1/21 | 4,040,000 | 4,537,324 | ||
(Fresh Wtr. Impt. Proj.): | ||||
Series B, 5.5% 6/1/16 (FSA Insured) | 1,560,000 | 1,805,123 | ||
5.25% 12/1/15 | 2,200,000 | 2,482,524 | ||
5.375% 12/1/17 | 285,000 | 316,250 | ||
5.375% 12/1/19 | 3,000,000 | 3,333,060 | ||
(Pure Wtr. Proj.): | ||||
Series I, 6% 12/1/16 (Escrowed to Maturity) (d) | 1,685,000 | 1,968,249 | ||
5.5% 12/1/18 (AMBAC Insured) | 240,000 | 240,722 | ||
5% 12/1/17 | 3,765,000 | 4,097,600 | ||
Ohio Wtr. Dev. Auth. Solid Waste Disp. Rev. (North Star BHP Steel/Cargill Proj.) 6.3% 9/1/20 (c) | 6,350,000 | 6,641,338 | ||
Ohio Wtr. Dev. Auth. Wtr. Poll. Cont. Rev. 5% 6/1/18 | 2,000,000 | 2,165,200 | ||
Olentangy Local School District (School Facilities Construction & Impt. Proj.) Series A: | ||||
5.25% 12/1/17 | 1,335,000 | 1,473,747 | ||
5.5% 12/1/15 (FGIC Insured) | 1,055,000 | 1,216,932 | ||
Otsego Local School District Wood, Henry & Lucas Counties 5.375% 12/1/32 (FSA Insured) | 1,000,000 | 1,083,410 | ||
Penta Career Ctr. Ctfs. of Prtn.: | ||||
(Ohio School Facilities Proj.) 5.25% 4/1/17 | 1,755,000 | 1,935,783 | ||
(Wood, Lucas, Sandusky, Fulton, Ottawa, Henry and Hancock Counties, Ohio School Facilities Proj.) 5.25% 4/1/19 (FGIC Insured) | 1,940,000 | 2,139,839 | ||
Pickerington Local School District 5.25% 12/1/20 | 5,000,000 | 5,493,850 | ||
Plain Local School District 6% 12/1/25 (FGIC Insured) | 990,000 | 1,132,718 | ||
Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B: | ||||
6.375% 11/15/22 | 1,500,000 | 1,598,265 | ||
6.375% 11/15/30 | 1,000,000 | 1,061,870 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Ohio - continued | ||||
Rocky River Gen. Oblig. 5% 12/1/19 (AMBAC Insured) | $ 2,125,000 | $ 2,290,091 | ||
Scioto County Marine Term. Facilities Rev. (Norfolk Southern Corp. Proj.) 5.3% 8/15/13 | 3,000,000 | 3,115,230 | ||
Sharonville Gen. Oblig. 5.25% 6/1/16 (FGIC Insured) | 1,410,000 | 1,563,380 | ||
Sugarcreek Local School District 5.25% 12/1/22 | 1,800,000 | 1,958,670 | ||
Summit County Gen. Oblig.: | ||||
5.25% 12/1/20 | 1,645,000 | 1,825,045 | ||
5.25% 12/1/21 | 1,740,000 | 1,924,892 | ||
Swanton Local School District 5.25% 12/1/21 | 3,415,000 | 3,706,983 | ||
Toledo Wtrwks. Rev. 5% 11/15/16 (AMBAC Insured) | 1,110,000 | 1,211,987 | ||
Univ. of Akron Gen. Receipts Series B, 5% 1/1/27 (FGIC Insured) | 1,405,000 | 1,460,680 | ||
Univ. of Cincinnati Ctfs. of Prtn.: | ||||
5.5% 6/1/11 (MBIA Insured) | 1,045,000 | 1,175,656 | ||
5.5% 6/1/12 (MBIA Insured) | 1,315,000 | 1,474,141 | ||
5.5% 6/1/15 (MBIA Insured) | 1,000,000 | 1,114,300 | ||
Univ. of Cincinnati Gen. Receipts Series 2004 A: | ||||
5% 6/1/18 (AMBAC Insured) | 1,445,000 | 1,559,646 | ||
5% 6/1/19 (AMBAC Insured) | 1,520,000 | 1,639,350 | ||
Warren County Gen. Oblig.: | ||||
Swr. Impt. (P&G Co./Lower Miami Proj.) 5.5% 12/1/16 | 1,455,000 | 1,510,174 | ||
6.1% 12/1/12 | 500,000 | 565,500 | ||
6.65% 12/1/11 | 380,000 | 426,550 | ||
Wright State Univ. Gen. Receipts: | ||||
5% 5/1/17 (MBIA Insured) | 1,375,000 | 1,495,546 | ||
5% 5/1/18 (MBIA Insured) | 1,440,000 | 1,553,386 | ||
5% 5/1/19 (MBIA Insured) | 1,515,000 | 1,633,064 | ||
410,166,491 | ||||
Puerto Rico - 2.5% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. Series Y, 5.5% 7/1/36 (FSA Insured) | 1,000,000 | 1,111,730 | ||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev. Series E, 5.5% 7/1/22 (FSA Insured) | 1,500,000 | 1,768,590 | ||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A: | ||||
5.5% 10/1/32 (Escrowed to Maturity) (d) | 1,600,000 | 1,748,128 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Puerto Rico - continued | ||||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A: - continued | ||||
5.5% 10/1/40 (Escrowed to Maturity) (d) | $ 4,700,000 | $ 5,114,822 | ||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series QQ, 5.5% 7/1/18 (XL Cap. Assurance, Inc. Insured) (a) | 800,000 | 915,280 | ||
10,658,550 | ||||
Virgin Islands - 0.1% | ||||
Virgin Islands Pub. Fin. Auth. Rev. Series A, 5% 10/1/09 | 500,000 | 538,800 |
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $394,922,321) | 421,363,841 | ||
NET OTHER ASSETS - 0.5% | 2,233,532 | ||
NET ASSETS - 100% | $ 423,597,373 |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(d) Security collateralized by an amount sufficient to pay interest and principal. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 49.4% |
Education | 13.9% |
Water & Sewer | 9.1% |
Health Care | 7.6% |
Others* (individually less than 5%) | 20.0% |
100.0% |
*Includes net other assets |
Income Tax Information |
The fund hereby designates as capital gain dividends: For dividends with respect to the taxable year ended December 31, 2004, $4,455,000, or, if different, the net capital gain of such year; and for dividends with respect to the taxable year ended December 31, 2003, $874,000, or, if different, the excess of: (a) the net capital gain of such year, over (b) amounts previously designated as capital gain dividends with respect to such year. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Spartan Ohio Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
December 31, 2004 | ||
Assets | ||
Investment in securities, at value (cost $394,922,321) - See accompanying schedule | $ 421,363,841 | |
Cash | 2,775,735 | |
Receivable for fund shares sold | 111,307 | |
Interest receivable | 3,170,140 | |
Prepaid expenses | 1,607 | |
Other affiliated receivables | 2 | |
Other receivables | 7,894 | |
Total assets | 427,430,526 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 3,000,874 | |
Payable for fund shares redeemed | 198,296 | |
Distributions payable | 421,603 | |
Accrued management fee | 131,841 | |
Other affiliated payables | 38,477 | |
Other payables and accrued expenses | 42,062 | |
Total liabilities | 3,833,153 | |
Net Assets | $ 423,597,373 | |
Net Assets consist of: | ||
Paid in capital | $ 396,452,461 | |
Distributions in excess of net investment income | (48,762) | |
Accumulated undistributed net realized gain (loss) on investments | 752,154 | |
Net unrealized appreciation (depreciation) on investments | 26,441,520 | |
Net Assets, for 35,366,667 shares outstanding | $ 423,597,373 | |
Net Asset Value, offering price and redemption price per share ($423,597,373 ÷ 35,366,667 shares) | $ 11.98 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Spartan Ohio Municipal Income Fund
Financial Statements - continued
Statement of Operations
Year ended December 31, 2004 | ||
Investment Income | ||
Interest | $ 19,541,370 | |
Expenses | ||
Management fee | $ 1,587,080 | |
Transfer agent fees | 328,715 | |
Accounting fees and expenses | 108,551 | |
Non-interested trustees' compensation | 2,435 | |
Custodian fees and expenses | 8,043 | |
Registration fees | 22,993 | |
Audit | 41,529 | |
Legal | 8,474 | |
Miscellaneous | 12,434 | |
Total expenses before reductions | 2,120,254 | |
Expense reductions | (29,447) | 2,090,807 |
Net investment income | 17,450,563 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 5,067,699 | |
Futures contracts | 41,851 | |
Swap agreements | 238,000 | |
Total net realized gain (loss) | 5,347,550 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (4,761,754) | |
Futures contracts | (44,815) | |
Swap agreements | 15,601 | |
Total change in net unrealized appreciation (depreciation) | (4,790,968) | |
Net gain (loss) | 556,582 | |
Net increase (decrease) in net assets resulting from operations | $ 18,007,145 |
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 | $ 17,450,563 | $ 18,267,673 |
Net realized gain (loss) | 5,347,550 | 4,269,224 |
Change in net unrealized appreciation (depreciation) | (4,790,968) | 1,221,341 |
Net increase (decrease) in net assets resulting | 18,007,145 | 23,758,238 |
Distributions to shareholders from net investment income | (17,502,945) | (18,304,425) |
Distributions to shareholders from net realized gain | (5,096,645) | (3,358,167) |
Total distributions | (22,599,590) | (21,662,592) |
Share transactions | 45,167,492 | 47,985,138 |
Reinvestment of distributions | 16,402,646 | 15,661,112 |
Cost of shares redeemed | (64,421,289) | (69,763,780) |
Net increase (decrease) in net assets resulting from share transactions | (2,851,151) | (6,117,530) |
Redemption fees | 2,423 | 3,031 |
Total increase (decrease) in net assets | (7,441,173) | (4,018,853) |
Net Assets | ||
Beginning of period | 431,038,546 | 435,057,399 |
End of period (including distributions in excess of net investment income of $48,762 and undistributed net investment income of $196,860, respectively) | $ 423,597,373 | $ 431,038,546 |
Other Information Shares | ||
Sold | 3,749,160 | 3,964,572 |
Issued in reinvestment of distributions | 1,368,296 | 1,296,316 |
Redeemed | (5,378,568) | (5,793,188) |
Net increase (decrease) | (261,112) | (532,300) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000 |
Selected Per-Share Data | |||||
Net asset value, | $ 12.10 | $ 12.03 | $ 11.54 | $ 11.54 | $ 10.86 |
Income from Investment Operations | |||||
Net investment income B | .496 | .507 | .527 | .542 D | .552 |
Net realized and unrealized gain (loss) | .026 | .166 | .568 | (.002) D | .681 |
Total from investment operations | .522 | .673 | 1.095 | .540 | 1.233 |
Distributions from net investment income | (.497) | (.508) | (.525) | (.540) | (.553) |
Distributions from net realized gain | (.145) | (.095) | (.080) | - | - |
Total distributions | (.642) | (.603) | (.605) | (.540) | (.553) |
Redemption fees added to paid in capital | - B, E | - B, E | - B, E | - B, E | - |
Net asset value, | $ 11.98 | $ 12.10 | $ 12.03 | $ 11.54 | $ 11.54 |
Total Return A | 4.44% | 5.72% | 9.68% | 4.73% | 11.68% |
Ratios to Average Net AssetsC | |||||
Expenses before expense reductions | .50% | .51% | .51% | .51% | .52% |
Expenses net of voluntary waivers, if any | .50% | .51% | .51% | .51% | .52% |
Expenses net of all reductions | .49% | .50% | .49% | .46% | .46% |
Net investment income | 4.13% | 4.20% | 4.45% | 4.64% D | 4.99% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 423,597 | $ 431,039 | $ 435,057 | $ 399,353 | $ 381,052 |
Portfolio turnover rate | 26% | 22% | 19% | 17% | 28% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary 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 fund.
D Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.
E Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Investment Changes/Performance
Maturity Diversification | |||
Days | % of fund's | % of fund's | % of fund's |
0 - 30 | 85.4 | 84.8 | 77.0 |
31 - 90 | 5.0 | 6.7 | 3.4 |
91 - 180 | 2.5 | 5.4 | 11.0 |
181 - 397 | 7.1 | 3.1 | 8.6 |
Weighted Average Maturity | |||
12/31/04 | 6/30/04 | 12/31/03 | |
Fidelity Ohio Municipal Money | 34 Days | 26 Days | 44 Days |
Ohio Tax-Free Money Market | 42 Days | 41 Days | 53 Days |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2004 | As of June 30, 2004 | ||||||
![]() | Variable Rate | ![]() | Variable Rate | ||||
![]() | Commercial Paper (including | ![]() | Commercial Paper (including | ||||
![]() | Tender Bonds 4.0% | ![]() | Tender Bonds 2.1% | ||||
![]() | Municipal Notes 8.0% | ![]() | Municipal Notes 14.7% | ||||
![]() | Fidelity Municipal | ![]() | Fidelity Municipal | ||||
![]() | Other Investments 0.0% | ![]() | Other Investments 1.2% | ||||
![]() | Net Other Assets 0.7% | ![]() | Net Other Assets** (0.9)% |
**Net Other Assets are not included in the pie chart.
Current and Historical Seven-Day Yields
1/3/05 | 9/27/04 | 6/28/04 | 3/29/04 | 12/29/03 | |
Fidelity Ohio Municipal Money Market Fund | 1.46% | 0.99% | 0.65% | 0.54% | 0.69% |
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it is possible to lose money by investing in the fund.
*Source: iMoneyNet, Inc.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Investments December 31, 2004
Showing Percentage of Net Assets
Municipal Securities - 99.3% | |||
Principal | Value | ||
Ohio - 99.0% | |||
Akron Bath Copley Hosp. District Rev. Series B, 2.01%, LOC JPMorgan Chase Bank, VRDN (b) | $ 7,500,000 | $ 7,500,000 | |
Akron Gen. Oblig. BAN 2.75% 11/3/05 | 9,133,000 | 9,196,857 | |
Akron Income Tax Rev. Participating VRDN: | |||
Series ROC II R2137, 2.03% (Liquidity Facility Citigroup Global Markets Hldgs., Inc.) (b)(e) | 1,390,000 | 1,390,000 | |
Series ROC II R259, 2.03% (Liquidity Facility Citibank NA) (b)(e) | 2,210,000 | 2,210,000 | |
American Muni. Pwr. Bonds (Omega Joint Venture 6 Proj.) 1.45%, tender 2/14/05 (b) | 9,861,000 | 9,861,000 | |
Ashtabula County Indl. Dev. Rev. (Plasticolors, Inc. Proj.) | 1,820,000 | 1,820,000 | |
Blue Ash Gen. Oblig. BAN: | |||
1.25% 2/4/05 | 1,700,000 | 1,700,000 | |
2.35% 11/15/05 | 3,000,000 | 3,000,000 | |
Butler County Gen. Oblig. BAN: | |||
Series C, 2.5% 6/9/05 | 4,005,000 | 4,019,240 | |
2.5% 3/11/05 | 1,750,000 | 1,753,279 | |
Cambridge Hosp. Facilities Rev. (Southeastern Reg'l. Med. Ctr. Proj.) 2.05%, LOC Nat'l. City Bank, VRDN (b) | 4,525,000 | 4,525,000 | |
Cincinnati City School District Participating VRDN Series EGL 04 0034, 2.03% (Liquidity Facility Citibank NA) (b)(e) | 1,295,000 | 1,295,000 | |
Cincinnati Student Ln. Fdg. Corp. Student Ln. Rev.: | |||
Series 1998 A1, 2.03% (Liquidity Facility Sallie Mae), VRDN (b)(d) | 7,700,000 | 7,700,000 | |
Series 1998 A2, 2.03% (Liquidity Facility Sallie Mae), VRDN (b)(d) | 19,800,000 | 19,800,000 | |
Clark County Health Care Facilities Rev. (The Ohio Masonic Home Proj.) 2.09% (AMBAC Insured), VRDN (b) | 5,400,000 | 5,400,000 | |
Clermont County Indl. Dev. Rev. (American Micro Products Proj.) 2.14%, LOC U.S. Bank NA, Minnesota, VRDN (b)(d) | 2,040,000 | 2,040,000 | |
Cleveland Arpt. Sys. Rev.: | |||
Participating VRDN: | |||
Series PT 799, 2.08% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d)(e) | 1,500,000 | 1,500,000 | |
Series SGA 126, 2% (Liquidity Facility Societe Generale) (b)(e) | 10,685,000 | 10,685,000 | |
Series Stars 81, 2.08% (Liquidity Facility BNP Paribas SA) (b)(d)(e) | 5,635,000 | 5,635,000 | |
1.98% (FSA Insured), VRDN (b) | 17,450,000 | 17,450,000 | |
Cleveland Gen. Oblig. Participating VRDN Series PT 2032, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e) | 3,065,000 | 3,065,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Ohio - continued | |||
Cleveland Wtrwks. Rev. Bonds Series Merlots 01 A24, 2.11%, tender 11/10/05 (Liquidity Facility Wachovia Bank NA) (b)(e)(f) | $ 4,020,000 | $ 4,020,000 | |
Cleveland-Cuyahoga County Port Auth. Rev. (Euclid/93rd Garage & Office LLC Proj.) Series 2003, 2%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 100,000 | 100,000 | |
Columbus City School District Participating VRDN: | |||
Series PT 2278, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e) | 2,755,000 | 2,755,000 | |
Series TOC 04 H, 2.02% (Liquidity Facility Goldman Sachs Group, Inc.) (b)(e) | 8,300,000 | 8,300,000 | |
Columbus Gen. Oblig. Participating VRDN Series MS 01 585, 2.02% (Liquidity Facility Morgan Stanley) (b)(e) | 5,175,000 | 5,175,000 | |
Cuyahoga County Civic Facilities Rev. (Fairfax Dev. Corp. Proj.) 2.07%, LOC Key Bank NA, VRDN (b) | 4,575,000 | 4,575,000 | |
Cuyahoga County Econ. Dev. Rev. (Cleveland Botanical Garden Proj.) 2.03%, LOC Allied Irish Banks PLC, VRDN (b) | 10,000,000 | 10,000,000 | |
Cuyahoga County Health Care Facilities Rev.: | |||
(Althenheim Proj.) 2.14%, LOC U.S. Bank NA, Minnesota, VRDN (b) | 6,475,000 | 6,475,000 | |
(The A.M. McGregor Home Proj.) 2.03%, LOC Key Bank NA, VRDN (b) | 4,425,000 | 4,425,000 | |
Cuyahoga County Indl. Dev. Rev.: | |||
(Progressive Plastics, Inc. Proj.) 2.15%, LOC JPMorgan Chase Bank, VRDN (b)(d) | 1,365,000 | 1,365,000 | |
(Pubco Corp. Proj.) Series 2001, 2.12%, LOC Nat'l. City Bank, VRDN (b)(d) | 2,990,000 | 2,990,000 | |
(The Great Lakes Brewing Co. Proj.) Series 1997, 2.19%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b)(d) | 4,125,000 | 4,125,000 | |
Cuyahoga County Rev. (Cleveland Clinic Health Sys. Obligated Group Prog.): | |||
Sub Series B1, 2.27%, VRDN (b) | 7,600,000 | 7,600,000 | |
Sub Series B3, 2.27%, VRDN (b) | 7,600,000 | 7,600,000 | |
Darke County Health Care Facilities Rev. (Brethren Retirement Cmnty. Proj.) 2.07%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 7,015,000 | 7,015,000 | |
Dayton Gen. Oblig. BAN 3% 7/7/05 (d) | 2,650,000 | 2,663,305 | |
Dayton School District Participating VRDN Series SG 173, 2.02% (Liquidity Facility Societe Generale) (b)(e) | 5,500,000 | 5,500,000 | |
Delaware County Health Care Facilities (Willow Brook Christian Cmnty. Proj.) Series 1999, 2.05%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b) | 3,855,000 | 3,855,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Ohio - continued | |||
Erie County Multi-family Hsg. Rev. (Providence Residential Comnty. Corp. Proj.) Series 1999 A, 2.14%, LOC JPMorgan Chase Bank, VRDN (b) | $ 10,060,000 | $ 10,060,000 | |
Franklin County Multi-family Rev.: | |||
(Golf Pointe Apts. Proj.) Series 2000 A, 2.06%, LOC Lasalle Bank NA, VRDN (b)(d) | 6,750,000 | 6,750,000 | |
(Hanover Ridge Apts. Proj. 2.08%, LOC Fannie Mae, VRDN (b)(d) | 4,350,000 | 4,350,000 | |
Geauga County Health Care Facilities Rev. (Montefiore Hsg. Corp. Proj.) Series 2001, 2.07%, LOC Key Bank NA, VRDN (b) | 5,710,000 | 5,710,000 | |
Grove City Gen. Oblig. BAN 3% 8/25/05 | 8,044,000 | 8,089,354 | |
Hamilton County Health Care Facilities Rev. 2.06%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 4,145,000 | 4,145,000 | |
Hamilton Gen. Oblig. BAN 3% 5/5/05 | 2,975,000 | 2,986,612 | |
Independence Gen. Oblig. BAN 2.25% 5/11/05 | 8,400,000 | 8,407,029 | |
Jackson Local School District Stark & Summit Counties Participating VRDN Series PT 2334, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e) | 4,005,000 | 4,005,000 | |
Kettering Indl. Dev. Rev. (Millat Industries Corp. Proj.) 2.12%, LOC Nat'l. City Bank, VRDN (b)(d) | 3,120,000 | 3,120,000 | |
Lake County Indl. Dev. Rev.: | |||
(American Bus. Co. Proj.) 2.19%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b)(d) | 950,000 | 950,000 | |
(Norshar Co. Proj.) 2.15%, LOC JPMorgan Chase Bank, VRDN (b)(d) | 2,925,000 | 2,925,000 | |
Lima Hosp. Rev. (Lima Memorial Hosp. Proj.) 2.1%, LOC JPMorgan Chase Bank, VRDN (b) | 2,400,000 | 2,400,000 | |
Lucas County Multi-family Rev. (Lakewoods Proj.) 2.14%, LOC Key Bank NA, VRDN (b)(d) | 4,000,000 | 4,000,000 | |
Medina County Indl. Dev. Rev.: | |||
(Firedex, Inc. Proj.) Series 1997, 2.14%, LOC Key Bank NA, VRDN (b)(d) | 875,000 | 875,000 | |
(Rembond Proj.) Series 1996, 2.15%, LOC JPMorgan Chase Bank, VRDN (b)(d) | 1,845,000 | 1,845,000 | |
Montgomery County Health Care Facilities Rev.: | |||
(Eastway Corp. & Property Resource Proj.) Series 1997, 2.19%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b)(d) | 2,640,000 | 2,640,000 | |
(Kettering Affiliated Proj.) 2.1%, LOC JPMorgan Chase Bank, VRDN (b) | 2,400,000 | 2,400,000 | |
Montgomery County Multi-family Hsg. Dev. Rev. (Pedcor Invts.-Lyons Gate Proj.) 2.05%, LOC Fed. Home Ln. Bank, Cincinnati, VRDN (b)(d) | 4,315,000 | 4,315,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Ohio - continued | |||
North Ridgeville Gen. Oblig. BAN 2.48% 12/15/05 | $ 8,965,000 | $ 8,979,999 | |
Ohio Air Quality Dev. Auth. Rev.: | |||
Participating VRDN Series PA 769R, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e) | 4,180,000 | 4,180,000 | |
(AK Steel Corp. Proj.) Series A, 2.05%, LOC ABN-AMRO Bank NV, VRDN (b)(d) | 7,100,000 | 7,100,000 | |
Ohio Bldg. Auth. Participating VRDN: | |||
Series FRRI 02 L 31J, 2.05% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (b)(e) | 5,375,000 | 5,375,000 | |
Series LB 04 L21J, 2.05% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (b)(e) | 7,100,000 | 7,100,000 | |
Series PT 1824, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e) | 6,400,000 | 6,400,000 | |
Ohio Gen. Oblig. Participating VRDN: | |||
Series PT 1823, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e) | 6,500,000 | 6,500,000 | |
Series PT 1831, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e) | 5,620,000 | 5,620,000 | |
Series PT 2046, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e) | 2,575,000 | 2,575,000 | |
Series PT 2125, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e) | 6,155,000 | 6,155,000 | |
Series PT 2137, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e) | 5,610,000 | 5,610,000 | |
Series PT 2139, 2.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e) | 4,315,000 | 4,315,000 | |
Series Putters 389, 2.01% (Liquidity Facility JPMorgan Chase Bank) (b)(e) | 1,990,000 | 1,990,000 | |
Series Putters 511, 2.01% (Liquidity Facility PNC Bank NA, Pittsburgh) (b)(e) | 6,900,000 | 6,900,000 | |
Series Putters 608, 2.01% (Liquidity Facility JPMorgan Chase Bank) (b)(e) | 5,840,000 | 5,840,000 | |
Ohio Higher Edl. Facility Commission Rev.: | |||
Participating VRDN Series MS 98 116, 2.02% (Liquidity Facility Morgan Stanley) (b)(e) | 10,120,000 | 10,120,000 | |
(Ashland Univ. Proj.) 2.04%, LOC Key Bank NA, VRDN (b) | 9,000,000 | 9,000,000 | |
(Pooled Fing. Prog.): | |||
Series 1996, 2.05%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 2,095,000 | 2,095,000 | |
Series 1998, 2.05%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 10,225,000 | 10,225,000 | |
Series 1999, 2.05%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 12,595,000 | 12,595,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Ohio - continued | |||
Ohio Hsg. Fin. Agcy. Mtg. Rev.: | |||
Bonds Series Merlots 00 A1, 2.17%, tender 11/10/05 (Liquidity Facility Wachovia Bank NA) (b)(d)(e)(f) | $ 6,705,000 | $ 6,705,000 | |
Participating VRDN: | |||
Series BA 00 Q, 2.14% (Liquidity Facility Bank of America NA) (b)(d)(e) | 320,000 | 320,000 | |
Series BA 01 I, 2.11% (Liquidity Facility Bank of America NA) (b)(d)(e) | 4,375,000 | 4,375,000 | |
Series BA 98 B, 2.14% (Liquidity Facility Bank of America NA) (b)(d)(e) | 14,695,000 | 14,695,000 | |
Series BA 98 Q, 2.14% (Liquidity Facility Bank of America NA) (b)(d)(e) | 4,600,000 | 4,600,000 | |
Series BA 99 Q, 2.14% (Liquidity Facility Bank of America NA) (b)(d)(e) | 1,260,000 | 1,260,000 | |
Series FRRI 25, 2.1% (Liquidity Facility Bank of New York, New York) (b)(d)(e) | 1,460,000 | 1,460,000 | |
Series LB 03 L46J, 2.1% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (b)(d)(e) | 6,560,000 | 6,560,000 | |
Series Merlots 01 A78, 2.11% (Liquidity Facility Wachovia Bank NA) (b)(d)(e) | 2,300,000 | 2,300,000 | |
Series Merlots 02 A34, 2.11% (Liquidity Facility Wachovia Bank NA) (b)(d)(e) | 2,395,000 | 2,395,000 | |
Series PT 1334, 2.07% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d)(e) | 5,080,000 | 5,080,000 | |
Series PT 228, 2.08% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d)(e) | 4,695,000 | 4,695,000 | |
Series PT 241, 2.07% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d)(e) | 3,565,000 | 3,565,000 | |
Series PT 567, 2.07% (Liquidity Facility Danske Bank AS) (b)(d)(e) | 3,975,000 | 3,975,000 | |
Series PT 582, 2.07% (Liquidity Facility Svenska Handelsbanken AB) (b)(d)(e) | 2,400,000 | 2,400,000 | |
Series B, 2.05% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (b)(d) | 11,990,000 | 11,990,000 | |
Series F, 2.01% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (b)(d) | 6,400,000 | 6,400,000 | |
Ohio Hsg. Fin. Agcy. Multi-family Hsg. Rev.: | |||
(Club at Spring Valley Apts. Proj.) Series 1996 A, 2.05%, LOC Key Bank NA, VRDN (b)(d) | 5,700,000 | 5,700,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Ohio - continued | |||
Ohio Hsg. Fin. Agcy. Multi-family Hsg. Rev.: - continued | |||
(Pedcor Invt. Willowlake Apts. Proj.): | |||
Series A, 2.05%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(d) | $ 2,930,000 | $ 2,930,000 | |
Series B, 2.15%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(d) | 480,000 | 480,000 | |
Series C, 2.15%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(d) | 625,000 | 625,000 | |
Series D, 2.15%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(d) | 625,000 | 625,000 | |
(Pine Crossing Apts. Proj.) 2.06%, LOC Lasalle Bank NA, VRDN (b)(d) | 5,670,000 | 5,670,000 | |
(Shannon Glenn Apts. Proj.) 2.03%, LOC Fannie Mae, VRDN (b)(d) | 11,800,000 | 11,800,000 | |
(Wingate at Belle Meadows Proj.) 2.03%, LOC Fed. Home Ln. Bank, Cincinnati, VRDN (b)(d) | 8,750,000 | 8,750,000 | |
Ohio Indl. Dev. Rev.: | |||
(K&S Realty Proj.) Series 1989 I, 2.07%, LOC Nat'l. City Bank, VRDN (b)(d) | 105,000 | 105,000 | |
(K&S Realty/Starr Fabricating, Inc. Proj.) Series 1989 III, 2.07%, LOC Nat'l. City Bank, VRDN (b)(d) | 135,000 | 135,000 | |
(Midwest Acoust-A-Fiber, Inc. Proj.) Series 1989 I, 2.07%, LOC Nat'l. City Bank, VRDN (b)(d) | 50,000 | 50,000 | |
(Standby Screw & Machine Proj.) Series 1991 IA, 2.07%, LOC Nat'l. City Bank, VRDN (b)(d) | 100,000 | 100,000 | |
Ohio Poll. Cont. Rev.: | |||
(Gen. Motors Corp. Proj.) Series 1985, 3%, VRDN (b) | 4,350,000 | 4,350,000 | |
(Sohio Air Proj.) Series 1995, 2.19%, VRDN (b) | 3,400,000 | 3,400,000 | |
Ohio Solid Waste Rev.: | |||
(BP Amoco Chemical Co. Proj.) 2.23% (BP PLC Guaranteed), VRDN (b)(d) | 3,950,000 | 3,950,000 | |
(BP Exploration & Oil, Inc. Proj.): | |||
Series 1998, 2.23%, VRDN (b)(d) | 17,425,000 | 17,425,000 | |
Series 1999, 2.23% (BP PLC Guaranteed), VRDN (b)(d) | 1,500,000 | 1,500,000 | |
Series 2000, 2.23% (BP PLC Guaranteed), VRDN (b)(d) | 1,000,000 | 1,000,000 | |
2.23% (BP PLC Guaranteed), VRDN (b)(d) | 6,400,000 | 6,400,000 | |
(BP Products NA, Inc. Proj.): | |||
2.23% (BP PLC Guaranteed), VRDN (b)(d) | 3,700,000 | 3,700,000 | |
2.23% (BP PLC Guaranteed), VRDN (b)(d) | 3,690,000 | 3,690,000 | |
Ohio State Univ. Gen. Receipts Participating VRDN Series MS 851, 2.02% (Liquidity Facility Morgan Stanley) (b)(e) | 8,260,000 | 8,260,000 | |
Ohio Tpk. Commission Tpk. Rev. Participating VRDN Series MS 98 71, 2.02% (Liquidity Facility Morgan Stanley) (b)(e) | 11,790,000 | 11,790,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Ohio - continued | |||
Ohio Univ. Gen. Receipts Rev. Bonds (Ohio State Univ. Proj.) Series 2003 C, 1.78% tender 3/10/05, CP mode | $ 19,650,000 | $ 19,650,000 | |
Ohio Wtr. Dev. Auth. (Waste Mgmt., Inc. Proj.) Series B, 2.09%, LOC Fleet Bank NA, VRDN (b)(d) | 4,700,000 | 4,700,000 | |
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev.: | |||
(Cleveland Elec. Illuminating Co. Proj.) Series A, 2%, LOC Barclays Bank PLC, VRDN (b)(d) | 6,000,000 | 6,000,000 | |
(Toledo Edison Co. Proj.) Series A, 2%, LOC Barclays Bank PLC, VRDN (b)(d) | 3,800,000 | 3,800,000 | |
Ohio Wtr. Dev. Auth. Rev. Bonds (Premcor Refining Group Proj.) 2.38%, tender 12/1/05, LOC Fleet Nat'l. Bank (b)(d) | 10,000,000 | 10,000,000 | |
Ohio Wtr. Dev. Auth. Solid Waste Disp. Rev. (Timken Co. Proj.) Series 1997, 2.02%, LOC Wachovia Bank NA, VRDN (b)(d) | 24,000,000 | 24,000,000 | |
Perrysburg Gen. Oblig. BAN 2.2% 8/11/05 | 1,955,000 | 1,959,662 | |
Port of Greater Cincinnati Dev. Auth. Rev. (Nat'l. Underground Railroad Freedom Ctr., Inc. Proj.) Series 2003 A, 2.05%, LOC JPMorgan Chase Bank, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 6,500,000 | 6,500,000 | |
Portage County Indl. Dev. Rev. (Mantaline Corp. Proj.) 2.12%, LOC Nat'l. City Bank, VRDN (b)(d) | 2,695,000 | 2,695,000 | |
Richland County Health Care Facilities Rev. (Mansfield Memorial Homes Proj.) Series 2002, 2.09%, LOC Key Bank NA, VRDN (b) | 4,870,000 | 4,870,000 | |
Richland County Indl. Dev. Rev. (Sabin Robbins Paper Co. Proj.) Series 1997, 2.14%, LOC Standard Fed. Bank, VRDN (b)(d) | 1,800,000 | 1,800,000 | |
Rickenbacker Port Auth. Indl. Dev. (Micro Industries Corp. Proj.) Series 2000, 2.15%, LOC JPMorgan Chase Bank, VRDN (b)(d) | 2,590,000 | 2,590,000 | |
Salem City Hosp. Facilities Rev. Series 2000, 2.1%, LOC PNC Bank NA, Pittsburgh, VRDN (b) | 5,600,000 | 5,600,000 | |
Stark County Indl. Dev. Rev.: | |||
(H-P Products, Inc. Proj.) 2.14%, LOC Key Bank NA, VRDN (b)(d) | 2,390,000 | 2,390,000 | |
(Kidd Dev. Proj.) 2.15%, LOC JPMorgan Chase Bank, VRDN (b)(d) | 2,870,000 | 2,870,000 | |
Summit County Indl. Dev. Rev.: | |||
(Commercial Alloys Corp. Proj.): | |||
2.17%, LOC Nat'l. City Bank, VRDN (b)(d) | 1,700,000 | 1,700,000 | |
2.2%, LOC Nat'l. City Bank, VRDN (b)(d) | 2,575,000 | 2,575,000 | |
(Kaiser Dev. Proj.) 2.15%, LOC Nat'l. City Bank, VRDN (b)(d) | 650,000 | 650,000 | |
(Keltec, Inc. Proj.) Series 1987, 2.13%, LOC Nat'l. City Bank, VRDN (b)(d) | 150,000 | 150,000 | |
(Mannix Co. Proj.) Series 1987, 2.13%, LOC JPMorgan Chase Bank, VRDN (b)(d) | 805,000 | 805,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Ohio - continued | |||
Summit County Indl. Dev. Rev.: - continued | |||
(Sigma Properties Proj.) Series 2000 B, 2.17%, LOC Nat'l. City Bank, VRDN (b)(d) | $ 1,910,000 | $ 1,910,000 | |
(Summit Plastic Co. Proj.) 2.17%, LOC Nat'l. City Bank, VRDN (b)(d) | 1,015,000 | 1,015,000 | |
(Triumph Hldgs. Proj.) 2.22%, LOC Nat'l. City Bank, VRDN (b)(d) | 1,355,000 | 1,355,000 | |
Toledo City School District Participating VRDN: | |||
Series MS 889, 2.02% (Liquidity Facility Morgan Stanley) (b)(e) | 1,807,500 | 1,807,500 | |
Series Putters 655, 2.03% (Liquidity Facility JPMorgan Chase Bank) (b)(e) | 1,695,000 | 1,695,000 | |
Toledo Lucas County Port Auth. Rev. Series 2004 C, 2%, LOC Bank of Nova Scotia New York Agcy., VRDN (b) | 10,700,000 | 10,700,000 | |
Toledo-Lucas County Port Auth. Rev. (P&G Industries Proj.) 2.12%, LOC Nat'l. City Bank, VRDN (b)(d) | 2,065,000 | 2,065,000 | |
Union County Gen. Oblig. BAN 2.5% 6/9/05 | 4,020,000 | 4,032,907 | |
Univ. of Cincinnati Gen. Receipts BAN 2.75% 3/28/05 | 4,860,000 | 4,870,145 | |
Warren County Health Care Facilities Rev. (Otterbein Homes Proj.) Series 1998 B, 2.03%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 12,119,000 | 12,119,000 | |
Wood County Indl. Dev. Rev.: | |||
(CMC Group Proj.) Series 2001, 2.12%, LOC Nat'l. City Bank, VRDN (b)(d) | 2,210,000 | 2,210,000 | |
(Dowa THT America, Inc. Proj.) Series 1999, 2.1%, LOC Comerica Bank, Detroit, VRDN (b)(d) | 3,800,000 | 3,800,000 | |
Zanesville-Muskingum Port Auth. Indl. Dev. Rev. (Almana II LLC Proj.) Series 2000, 2.19%, LOC JPMorgan Chase Bank, VRDN (b)(d) | 5,900,000 | 5,900,000 | |
762,725,889 | |||
Municipal Securities - continued | |||
Shares | Value | ||
Other - 0.3% | |||
Fidelity Municipal Cash Central Fund, 1.99% (a)(c) | 1,955,900 | $ 1,955,900 | |
TOTAL INVESTMENT PORTFOLIO - 99.3% | 764,681,789 | ||
NET OTHER ASSETS - 0.7% | 5,376,437 | ||
NET ASSETS - 100% | $ 770,058,226 |
Total Cost for Federal Income Tax Purposes $ 764,681,789 |
Security Type Abbreviations |
BAN - BOND ANTICIPATION NOTE |
CP - COMMERCIAL PAPER |
VRDN - VARIABLE RATE DEMAND NOTE |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(b) The coupon rate shown on floating or adjustable rate securities represents the rate 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) 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 $10,725,000 or 1.4% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition | Cost |
Cleveland Wtrwks. Rev. Bonds Series Merlots 01 A24, 2.11%, tender 11/10/05 (Liquidity Facility Wachovia Bank NA) | 3/16/01 | $ 4,020,000 |
Ohio Hsg. Fin. Agcy. Mtg. Rev. Bonds Series Merlots 00 A1, 2.17%, tender 11/10/05 (Liquidity Facility Wachovia Bank NA) | 9/25/00 - 11/12/03 | $ 6,705,000 |
Income Tax Information |
At December 31, 2004, the fund had a capital loss carryforward of approximately $25,000 all of which will expire on December 31, 2012. |
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, 2004 | ||
Assets | ||
Investment in securities, at value (cost $764,681,789) - See accompanying schedule | $ 764,681,789 | |
Cash | 8,175,638 | |
Receivable for fund shares sold | 9,462,305 | |
Interest receivable | 2,408,315 | |
Prepaid expenses | 2,727 | |
Other receivables | 45,233 | |
Total assets | 784,776,007 | |
Liabilities | ||
Payable for investments purchased | $ 5,840,000 | |
Payable for fund shares redeemed | 8,497,807 | |
Distributions payable | 12,053 | |
Accrued management fee | 236,254 | |
Other affiliated payables | 93,667 | |
Other payables and accrued expenses | 38,000 | |
Total liabilities | 14,717,781 | |
Net Assets | $ 770,058,226 | |
Net Assets consist of: | ||
Paid in capital | $ 770,012,766 | |
Undistributed net investment income | 70,820 | |
Accumulated undistributed net realized gain (loss) on investments | (25,360) | |
Net Assets, for 770,031,617 shares outstanding | $ 770,058,226 | |
Net Asset Value, offering price and redemption price per share ($770,058,226 ÷ 770,031,617 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, 2004 | ||
Investment Income | ||
Interest | $ 9,038,220 | |
Expenses | ||
Management fee | $ 2,621,911 | |
Transfer agent fees | 956,388 | |
Accounting fees and expenses | 93,854 | |
Non-interested trustees' compensation | 3,846 | |
Custodian fees and expenses | 12,337 | |
Registration fees | 44,393 | |
Audit | 32,873 | |
Miscellaneous | 29,013 | |
Total expenses before reductions | 3,794,615 | |
Expense reductions | (121,300) | 3,673,315 |
Net investment income | 5,364,905 | |
Net realized gain (loss) on investment securities | (25,360) | |
Net increase in net assets resulting from operations | $ 5,339,545 |
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 | $ 5,364,905 | $ 4,187,255 |
Net realized gain (loss) | (25,360) | 101,248 |
Net increase in net assets resulting | 5,339,545 | 4,288,503 |
Distributions to shareholders from net investment income | (5,369,246) | (4,187,255) |
Share transactions at net asset value of $1.00 per share | 1,700,320,832 | 1,299,484,550 |
Reinvestment of distributions | 5,288,351 | 4,082,891 |
Cost of shares redeemed | (1,623,280,855) | (1,267,981,040) |
Net increase (decrease) in net assets and shares resulting from share transactions | 82,328,328 | 35,586,401 |
Total increase (decrease) in net assets | 82,298,627 | 35,687,649 |
Net Assets | ||
Beginning of period | 687,759,599 | 652,071,950 |
End of period (including undistributed net investment income of $70,820 and $0, respectively) | $ 770,058,226 | $ 687,759,599 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000 |
Selected Per-Share Data | |||||
Net asset value, | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations | |||||
Net investment income | .008 | .006 | .011 | .025 | .036 |
Distributions from net investment income | (.008) | (.006) | (.011) | (.025) | (.036) |
Net asset value, | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return A | .76% | .64% | 1.13% | 2.52% | 3.71% |
Ratios to Average Net Assets B | |||||
Expenses before expense reductions | .54% | .54% | .54% | .55% | .56% |
Expenses net of voluntary waivers, if any | .54% | .54% | .54% | .55% | .56% |
Expenses net of all reductions | .53% | .53% | .51% | .51% | .55% |
Net investment income | .77% | .64% | 1.12% | 2.47% | 3.64% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 770,058 | $ 687,760 | $ 652,072 | $ 622,602 | $ 516,018 |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary 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 fund.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2004
1. Significant Accounting Policies.
Spartan Ohio Municipal Income Fund (the income fund) is a fund of Fidelity Municipal Trust. Fidelity Ohio Municipal Money Market Fund (the money market fund) is a fund of Fidelity Municipal Trust II. Each trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Fidelity Municipal Trust and Fidelity Municipal Trust II (the trusts) are organized as a Massachusetts business trust and a Delaware statutory trust, respectively. Each fund is authorized to issue an unlimited number of shares. Each fund may be affected by economic and political developments in the state of Ohio. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the income fund and the money market fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities, including restricted securities, are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
As permitted under Rule 2a-7 of the 1940 Act, and certain conditions therein, securities owned by the money market fund are valued initially at cost and thereafter assume a constant amortization to maturity of any discount or premium.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, each fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the income fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes. There were no significant book-to-tax differences during the period for the money market fund.
Capital accounts within the income fund's financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, market discount and losses deferred due to futures transactions.
The funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost for the income fund as of period end were as follows:
Unrealized appreciation | $ 26,464,998 | |
Unrealized depreciation | (289,617) | |
Net unrealized appreciation (depreciation) | 26,175,381 | |
Undistributed long-term capital gain | 607,572 | |
Cost for federal income tax purposes | $ 395,188,460 |
Annual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid for the income fund was as follows:
December 31, 2004 | December 31, 2003 | |
Tax-exempt Income | $ 17,922,650 | $ 18,304,425 |
Long-term Capital Gains | 4,676,940 | 3,358,167 |
Total | $ 22,599,590 | $ 21,662,592 |
Short-Term Trading (Redemption) Fees. Shares held in the income fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. Each fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable fund's Schedule of Investments. Each fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Futures Contracts. The income fund may use futures contracts to manage its exposure to the bond market and to fluctuations in interest rates. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Annual Report
Notes to Financial Statements - continued
2. Operating Policies - continued
Restricted Securities. Certain funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable fund's Schedule of Investments.
Swap Agreements. The income fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.
Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact the fund.
Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the fund's custodian in compliance with swap contracts.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, for the income fund aggregated $107,961,489 and $113,246,989, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the funds with investment management related services for which the funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and a group fee rate. The individual fund fee rate is applied to each fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, each fund's annual management fee rate expressed as a percentage of each fund's average net assets was as follows:
Individual | Group | Total | |
Spartan Ohio Municipal Income Fund | .25% | .13% | .38% |
Fidelity Ohio Municipal Money Market Fund | .25% | .13% | .38% |
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the funds. Citibank has entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the funds' transfer and shareholder servicing agent and accounting functions. The funds pay account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period, the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Spartan Ohio Municipal Income Fund | .08% | | |
Fidelity Ohio Municipal Money Market Fund | .14% |
Central Funds. The funds may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the funds are recorded as income in the accompanying financial statements. Distributions from the Central Funds are noted in the table below:
Income | |
Fidelity Ohio Municipal Money Market Fund | $ 172,750 |
5. Committed Line of Credit.
The income fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
Annual Report
Notes to Financial Statements - continued
6. Expense Reductions.
Through arrangements with each applicable fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce each applicable fund's expenses. All of the applicable expense reductions are noted in the table below.
Brokerage | Custody | Transfer | Accounting | |
Spartan Ohio Municipal Income Fund | $ - | $ 7,269 | $ 22,178 | $ - |
Fidelity Ohio Municipal Money Market Fund | - | 12,251 | 109,049 | - |
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 Spartan 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 Spartan 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, 2004 and the results of their operations, the changes in their net assets and the financial highlights for 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 Municipal Trust's and Fidelity Municipal Trust II's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2005
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trusts and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except for William O. McCoy, Dennis J. Dirks, and Kenneth L. Wolfe each of the Trustees oversees 301 funds advised by FMR or an affiliate. Mr. McCoy oversees 303 funds advised by FMR or an affiliate. Mr. Dirks and Mr. Wolfe oversee 233 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (74)** | |
Year of Election or Appointment: 1984 or 1991 Trustee of Fidelity Municipal Trust (1984) and Fidelity Municipal Trust II (1991). Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (43)** | |
Year of Election or Appointment: 2001 Senior Vice President of Ohio Municipal Money Market (2001) and Spartan Ohio Municipal Income (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (50) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (52) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* 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.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (56) | |
Year of Election or Appointment: 2005 Mr. Dirks also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). | |
Robert M. Gates (61) | |
Year of Election or Appointment: 1997 Dr. Gates is Vice Chairman of the non-interested Trustees (2005). Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001), and Brinker International (restaurant management, 2003). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
George H. Heilmeier (68) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001), Teletech Holdings (customer management services), and HRL Laboratories (private research and development, 2004). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE) (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), and Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002). | |
Marie L. Knowles (58) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (60) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Co-Chairman and a Director of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Italtel Holding S.p.A. (telecommunications (Milan, Italy), 2004) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (71) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals), where he served as CEO until April 1998, retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. He is a member of the Executive Committee of the Independent Director's Council of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (71) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), and Progress Energy, Inc. (electric utility). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
Cornelia M. Small (60) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000) and Chairperson (2002) of the Investment Committee, and a member (2002) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1998). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (65) | |
Year of Election or Appointment: 2001 or 2002 Trustee of Fidelity Municipal Trust II (2001) and Fidelity Municipal Trust (2002). Mr. Stavropoulos is Chairman of the Board (2000), CEO (2002), a position he previously held from 1995-2000, Chairman of the Executive Committee (2000), and a Member of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (65) | |
Year of Election or Appointment: 2005 Mr. Wolfe also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003), Bausch & Lomb, Inc., and Revlon Inc. (2004). |
Annual Report
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (61) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust and Fidelity Municipal Trust II. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Dwight D. Churchill (51) | |
Year of Election or Appointment: 1997 or 2000 Vice President of Ohio Municipal Money Market (2000) and Spartan Ohio Municipal Income (1997). He serves as Head of Fidelity's Fixed-Income Division (2000), Vice President of Fidelity's Money Market Funds (2000), Vice President of Fidelity's Bond Funds (1997), and Senior Vice President of FIMM (2000) and FMR (1997). Mr. Churchill joined Fidelity in 1993 as Vice President and Group Leader of Taxable Fixed-Income Investments. | |
Charles S. Morrison (44) | |
Year of Election or Appointment: 2002 Vice President of Spartan Ohio Municipal Income. Mr. Morrison also serves as Vice President of Fidelity's Bond Funds (2002), and Vice President of certain Asset Allocation and Balanced Funds (2002). He serves as Vice President (2002) and Bond Group Leader (2002) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002) and FMR (2002). Mr. Morrison joined Fidelity in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
David L. Murphy (56) | |
Year of Election or Appointment: 2002 Vice President of Ohio Municipal Money Market. Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002) and Vice President of certain Asset Allocation Funds (2003). He serves as Senior Vice President (2000) and Money Market Group Leader (2002) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of FIMM (2003) and a Vice President of FMR (2000). Previously, Mr. Murphy served as Bond Group Leader (2000-2002) and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002). Mr. Murphy joined Fidelity in 1989 as a portfolio manager in the Bond Group. | |
Michael J. Marchese (47) | |
Year of Election or Appointment: 2004 Vice President of Ohio Municipal Money Market. Mr. Marchese also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Marchese worked as a director of research and portfolio manager. | |
Douglas T. McGinley (39) | |
Year of Election or Appointment: 2004 Vice President of Spartan Ohio Municipal Income. Mr. McGinley also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. McGinley worked as an analyst and manager. | |
Eric D. Roiter (56) | |
Year of Election or Appointment: 1998 Secretary of Ohio Municipal Money Market and Spartan Ohio Municipal Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Vice President and Secretary of FDC; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Management & Research (Far East) Inc. (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). | |
Stuart Fross (45) | |
Year of Election or Appointment: 2003 Assistant Secretary of Ohio Municipal Money Market and Spartan Ohio Municipal Income. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Christine Reynolds (46) | |
Year of Election or Appointment: 2004 President, Treasurer, and Anti-Money Laundering (AML) officer of Ohio Municipal Money Market and Spartan Ohio Municipal Income. Ms. Reynolds also serves as President, Treasurer, and AML officer of other Fidelity funds (2004) and is a Vice President (2003) and an employee (2002) of FMR. Before joining Fidelity Investments, Ms. Reynolds worked at PricewaterhouseCoopers LLP (PwC) (1980-2002), where she was most recently an audit partner with PwC's investment management practice. | |
Timothy F. Hayes (54) | |
Year of Election or Appointment: 2002 Chief Financial Officer of Ohio Municipal Money Market and Spartan Ohio Municipal Income. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
Kenneth A. Rathgeber (57) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Ohio Municipal Money Market and Spartan Ohio Municipal Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004) and Executive Vice President of Risk Oversight for Fidelity Investments (2002). Previously, he served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
John R. Hebble (46) | |
Year of Election or Appointment: 2003 Deputy Treasurer of Ohio Municipal Money Market and Spartan Ohio Municipal Income. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
Kimberley H. Monasterio (41) | |
Year of Election or Appointment: 2004 Deputy Treasurer of Ohio Municipal Money Market and Spartan Ohio Municipal Income. Ms. Monasterio also serves as Deputy Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
John H. Costello (58) | |
Year of Election or Appointment: 1986 or 1989 Assistant Treasurer of Ohio Municipal Money Market (1989) and Spartan Ohio Municipal Income (1986). Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (50) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Ohio Municipal Money Market and Spartan Ohio Municipal Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (49) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Ohio Municipal Money Market and Spartan Ohio Municipal Income. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Kenneth B. Robins (35) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Ohio Municipal Money Market and Spartan Ohio Municipal Income. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Annual Report
Distributions
The Board of Trustees of Spartan Ohio Municipal Income Fund voted to pay on February 7, 2005, to shareholders of record at the opening of business on February 4, 2005, a distribution of $.02 per share derived from capital gains realized from sales of portfolio securities.
During fiscal year ended 2004, 100% of Spartan Ohio Municipal Income Fund and Fidelity Ohio Municipal Money Market Fund's income dividends were free from federal income tax, and 6.30% and 43.08% of Spartan Ohio Municipal Income Fund and Fidelity Ohio Municipal Money Market Fund's income dividends were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2005 of amounts for use in preparing 2004 income tax returns.
Annual Report
Spartan Ohio Municipal Income Fund
Proxy Voting Results
A special meeting of Spartan Ohio Municipal Income Fund's shareholders was held on April 14, 2004. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* | ||
# of | % of | |
Affirmative | 3,415,899,540.41 | 73.098 |
Against | 857,186,718.73 | 18.343 |
Abstain | 194,806,370.40 | 4.169 |
Broker | 205,155,704.48 | 4.390 |
TOTAL | 4,673,048,334.02 | 100.000 |
PROPOSAL 2 | ||
To elect a Board of Trustees.* | ||
# of | % of | |
J. Michael Cook | ||
Affirmative | 4,338,349,812.56 | 92.838 |
Withheld | 334,698,521.46 | 7.162 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ralph F. Cox | ||
Affirmative | 4,334,671,421.01 | 92.759 |
Withheld | 338,376,913.01 | 7.241 |
TOTAL | 4,673,048,334.02 | 100.000 |
Laura B. Cronin | ||
Affirmative | 4,332,816,177.06 | 92.719 |
Withheld | 340,232,156.96 | 7.281 |
TOTAL | 4,673,048,334.02 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,336,851,658.96 | 92.806 |
Withheld | 336,196,675.06 | 7.194 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
George H. Heilmeier | ||
Affirmative | 4,334,549,149.07 | 92.756 |
Withheld | 338,499,184.95 | 7.244 |
TOTAL | 4,673,048,334.02 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 4,327,320,608.55 | 92.602 |
Withheld | 345,727,725.47 | 7.398 |
TOTAL | 4,673,048,334.02 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 4,322,104,507.32 | 92.490 |
Withheld | 350,943,826.70 | 7.510 |
TOTAL | 4,673,048,334.02 | 100.000 |
Donald J. Kirk | ||
Affirmative | 4,335,814,201.97 | 92.783 |
Withheld | 337,234,132.05 | 7.217 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marie L. Knowles | ||
Affirmative | 4,333,892,089.64 | 92.742 |
Withheld | 339,156,244.38 | 7.258 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,340,856,926.26 | 92.891 |
Withheld | 332,191,407.76 | 7.109 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marvin L. Mann | ||
Affirmative | 4,336,736,818.96 | 92.803 |
Withheld | 336,311,515.06 | 7.197 |
TOTAL | 4,673,048,334.02 | 100.000 |
William O. McCoy | ||
Affirmative | 4,338,426,324.60 | 92.839 |
Withheld | 334,622,009.42 | 7.161 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
Robert L. Reynolds | ||
Affirmative | 4,339,017,198.22 | 92.852 |
Withheld | 334,031,135.80 | 7.148 |
TOTAL | 4,673,048,334.02 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,338,546,239.15 | 92.842 |
Withheld | 334,502,094.87 | 7.158 |
TOTAL | 4,673,048,334.02 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Annual Report
Fidelity Ohio Municipal Money Market Fund
Proxy Voting Results
A special meeting of Fidelity Ohio Municipal Money Market Fund's shareholders was held on April 14, 2004. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To amend the Trust Instrument to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* | ||
# of | % of | |
Affirmative | 636,855,022.09 | 76.849 |
Against | 150,887,633.15 | 18.208 |
Abstain | 40,713,763.86 | 4.912 |
Broker | 253,332.00 | .031 |
TOTAL | 828,709,751.10 | 100.000 |
PROPOSAL 2 | ||
To elect a Board of Trustees.* | ||
# of | % of | |
J. Michael Cook | ||
Affirmative | 767,157,627.90 | 92.573 |
Withheld | 61,552,123.20 | 7.427 |
TOTAL | 828,709,751.10 | 100.000 |
Ralph F. Cox | ||
Affirmative | 766,126,728.93 | 92.448 |
Withheld | 62,583,022.17 | 7.552 |
TOTAL | 828,709,751.10 | 100.000 |
Laura B. Cronin | ||
Affirmative | 767,351,050.02 | 92.596 |
Withheld | 61,358,701.08 | 7.404 |
TOTAL | 828,709,751.10 | 100.000 |
Robert M. Gates | ||
Affirmative | 767,532,295.68 | 92.618 |
Withheld | 61,177,455.42 | 7.382 |
TOTAL | 828,709,751.10 | 100.000 |
# of | % of | |
George H. Heilmeier | ||
Affirmative | 766,078,246.56 | 92.442 |
Withheld | 62,631,504.54 | 7.558 |
TOTAL | 828,709,751.10 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 765,060,384.36 | 92.319 |
Withheld | 63,649,366.74 | 7.681 |
TOTAL | 828,709,751.10 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 764,319,910.03 | 92.230 |
Withheld | 64,389,841.07 | 7.770 |
TOTAL | 828,709,751.10 | 100.000 |
Donald J. Kirk | ||
Affirmative | 765,953,858.04 | 92.427 |
Withheld | 62,755,893.06 | 7.573 |
TOTAL | 828,709,751.10 | 100.000 |
Marie L. Knowles | ||
Affirmative | 767,230,609.26 | 92.581 |
Withheld | 61,479,141.84 | 7.419 |
TOTAL | 828,709,751.10 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 767,065,754.21 | 92.561 |
Withheld | 61,643,996.89 | 7.439 |
TOTAL | 828,709,751.10 | 100.000 |
Marvin L. Mann | ||
Affirmative | 765,939,293.51 | 92.426 |
Withheld | 62,770,457.59 | 7.574 |
TOTAL | 828,709,751.10 | 100.000 |
William O. McCoy | ||
Affirmative | 765,995,462.29 | 92.432 |
Withheld | 62,714,288.81 | 7.568 |
TOTAL | 828,709,751.10 | 100.000 |
# of | % of | |
Robert L. Reynolds | ||
Affirmative | 767,275,847.55 | 92.587 |
Withheld | 61,433,903.55 | 7.413 |
TOTAL | 828,709,751.10 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 766,682,881.97 | 92.515 |
Withheld | 62,026,869.13 | 7.485 |
TOTAL | 828,709,751.10 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Annual Report
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Spartan®
Pennsylvania Municipal
Income Fund
and
Fidelity®
Pennsylvania Municipal
Money Market Fund
Annual Report
December 31, 2004
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Spartan Pennsylvania Municipal Income Fund | ||
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Fidelity Pennsylvania Municipal Money Market Fund | ||
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the Financial Statements | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Proxy Voting Results |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Spartan Pennsylvania Municipal Income Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2004 | Past 1 | Past 5 | Past 10 |
Spartan® PA Municipal Income Fund | 4.28% | 6.87% | 6.68% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Spartan® Pennsylvania Municipal Income Fund on December 31, 1994. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Spartan Pennsylvania Municipal Income Fund
Management's Discussion of Fund Performance
Comments from Mark Sommer, Portfolio Manager of Spartan® Pennsylvania Municipal Income Fund
Despite persistent inflation concerns and the Federal Reserve Board raising interest rates multiple times in the second half of the year, the municipal bond market registered positive performance for the year ending December 31, 2004. In that time, the Lehman Brothers® Municipal Bond Index rose 4.48%. In comparison, the Lehman Brothers Aggregate Bond Index - a proxy of the overall investment-grade taxable debt market - returned 4.34%. This marks the second consecutive year in which tax-free munis outperformed taxable bonds on an absolute basis. Demand for munis generally was strong in 2004, except for a rough patch in the spring when strong labor markets fueled expectations of rising inflation. Shortly thereafter, the Fed began a series of five 0.25 percentage-point interest rate hikes between June 30 and December 14. While munis typically don't react well to such actions, they responded with positive returns in each of the year's final six months, partly due to reassurances by the Fed that it intended to raise rates in a "measured fashion."
For the 12 months ending December 31, 2004, the fund returned 4.28%. During the same period, the LipperSM Pennsylvania Municipal Debt Funds Average returned 3.55% and the Lehman Brothers Pennsylvania Enhanced Municipal Bond Index returned 4.26%. Pennsylvania munis performed in line with most state muni markets, responding to improving economic conditions and rising interest rates. The fund's outperformance of its benchmarks likely was aided by its stake in bonds that were prerefunded during the period, a process that generally resulted in higher prices for these securities. I believe my approach to managing the fund's interest rate sensitivity - which involved keeping it in line with the Lehman Brothers index - also benefited performance given the volatility that characterized the year. Detracting from performance relative to the index was my decision to underweight hospital bonds, which were some of the Pennsylvania muni market's best performers. These securities were buoyed by a combination of strong demand for the high levels of income they offer, as well as the improved financial stability of the hospitals themselves, aided by their ability to pass on price increases to insurers and patients in the form of higher premiums and co-payments.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2004 to December 31, 2004).
Actual Expenses
The first line of the table below for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below 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.
Annual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | |
Spartan Pennsylvania Municipal Income Fund | |||
Actual | $ 1,000.00 | $ 1,055.20 | $ 2.53 |
HypotheticalA | $ 1,000.00 | $ 1,022.67 | $ 2.49 |
Fidelity Pennsylvania Municipal Money Market Fund | |||
Actual | $ 1,000.00 | $ 1,005.00 | $ 2.52 |
HypotheticalA | $ 1,000.00 | $ 1,022.62 | $ 2.54 |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Annualized | |
Spartan Pennsylvania Municipal Income Fund | .49% |
Fidelity Pennsylvania Municipal Money Market Fund | .50% |
Annual Report
Spartan Pennsylvania Municipal Income Fund
Investment Changes
Top Five Sectors as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
General Obligations | 29.3 | 44.5 |
Escrowed/Pre-Refunded | 18.7 | 5.1 |
Education | 12.0 | 10.9 |
Transportation | 11.6 | 12.4 |
Health Care | 10.3 | 10.4 |
Average Years to Maturity as of December 31, 2004 | ||
6 months ago | ||
Years | 12.6 | 13.8 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2004 | ||
6 months ago | ||
Years | 6.1 | 6.9 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2004 | As of June 30, 2004 | ||||||
![]() | AAA 79.9% | ![]() | AAA 81.4% | ||||
![]() | AA,A 14.6% | ![]() | AA,A 13.6% | ||||
![]() | BBB 2.2% | ![]() | BBB 3.1% | ||||
![]() | Not Rated 1.1% | ![]() | Not Rated 1.0% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
Annual Report
Spartan Pennsylvania Municipal Income Fund
Investments December 31, 2004
Showing Percentage of Net Assets
Municipal Bonds - 97.8% | ||||
Principal | Value | |||
New Jersey/Pennsylvania - 1.4% | ||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5.25% 7/1/19 | $ 1,000,000 | $ 1,088,470 | ||
Delaware River Port Auth. Pennsylvania & New Jersey Rev.: | ||||
(Port District Proj.) Series A, 5.5% 1/1/18 (FSA Insured) | 2,000,000 | 2,222,520 | ||
Series 1999, 6% 1/1/18 (FSA Insured) | 700,000 | 794,892 | ||
4,105,882 | ||||
Pennsylvania - 94.7% | ||||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1: | ||||
5.75% 1/1/07 (MBIA Insured) (c) | 1,500,000 | 1,580,850 | ||
5.75% 1/1/08 (MBIA Insured) (c) | 1,000,000 | 1,071,840 | ||
5.75% 1/1/11 (MBIA Insured) (c) | 2,000,000 | 2,185,860 | ||
5.75% 1/1/14 (MBIA Insured) (c) | 3,000,000 | 3,312,060 | ||
Allegheny County Higher Ed. Bldg. Auth. Univ. Rev.: | ||||
(Carnegie Mellon Univ. Proj.) 5.25% 3/1/32 | 2,000,000 | 2,085,800 | ||
(Duquesne Univ. Proj.) 6.5% 3/1/10 (AMBAC Insured) | 400,000 | 465,356 | ||
Allegheny County Hosp. Dev. Auth. Rev. (Health Ctr.-UPMC Health Sys. Proj.) Series A: | ||||
4.625% 8/1/12 (MBIA Insured) | 1,000,000 | 1,050,410 | ||
4.625% 8/1/14 (MBIA Insured) | 3,560,000 | 3,701,830 | ||
5.55% 4/1/12 (MBIA Insured) | 2,845,000 | 3,051,462 | ||
Allegheny County San. Auth. Swr. Rev.: | ||||
0% 12/1/12 (Escrowed to Maturity) (d) | 2,260,000 | 1,683,293 | ||
5.5% 12/1/30 (MBIA Insured) | 2,000,000 | 2,168,860 | ||
Bucks County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania Suburban Wtr. Co. Proj.) Series 2002, 5.55% 9/1/32 (FGIC Insured) (c) | 1,870,000 | 1,978,310 | ||
Butler Area School District: | ||||
Series A: | ||||
0% 10/1/27 (FGIC Insured) | 1,500,000 | 475,155 | ||
0% 9/15/28 (FGIC Insured) | 1,000,000 | 297,680 | ||
0% 9/15/29 (FGIC Insured) | 2,705,000 | 757,752 | ||
0% 11/15/19 (Pre-Refunded to 11/15/07 @ 50.177) (d) | 5,650,000 | 2,631,601 | ||
Canon McMillan School District: | ||||
Series 2001 B, 5.75% 12/1/33 (FGIC Insured) | 8,995,000 | 10,025,377 | ||
Series 2002 B, 5.75% 12/1/35 (FGIC Insured) | 2,500,000 | 2,802,925 | ||
Central York School District 5.5% 6/1/16 (FGIC Insured) | 2,000,000 | 2,242,260 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Pennsylvania - continued | ||||
Chester County Health & Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series B: | ||||
5% 5/15/08 (AMBAC Insured) | $ 600,000 | $ 644,838 | ||
5.25% 5/15/22 (AMBAC Insured) | 1,450,000 | 1,525,647 | ||
Cumberland County Muni. Auth. College Rev. (Dickerson College Proj.) Series A, 5.5% 11/1/30 (AMBAC Insured) | 4,200,000 | 4,539,948 | ||
Delaware County Auth. College Rev. (Haverford College Proj.): | ||||
5.75% 11/15/29 | 5,000,000 | 5,556,200 | ||
6% 11/15/30 | 3,620,000 | 4,114,854 | ||
Delaware County Auth. Hosp. Rev. (Crozer-Chester Med. Ctr. Proj.): | ||||
6% 12/15/09 | 1,500,000 | 1,518,930 | ||
6% 12/15/20 | 2,300,000 | 2,316,652 | ||
Delaware County Indl. Dev. Auth. Rev. (Philadelphia Suburban Wtr. Co. Proj.) 6% 6/1/29 (FGIC Insured) (c) | 2,500,000 | 2,774,475 | ||
Delaware County Reg'l. Wtr. Quality Cont. Auth. Swr. Rev. Series 2001, 5.25% 5/1/12 (FGIC Insured) | 2,165,000 | 2,423,718 | ||
Erie School District 0% 9/1/30 (AMBAC Insured) | 4,000,000 | 1,074,400 | ||
Harrisburg Auth. Dauphin County School Rev. (Harrisburg School District Rfdg. Proj.) 5.5% 4/1/14 (FGIC Insured) | 1,655,000 | 1,862,703 | ||
Harrisburg Auth. Rev. (Pooled Bond Prog.) Series I, 5.625% 4/1/15 (Pre-Refunded to 4/1/06 @ 102) (d) | 445,000 | 472,799 | ||
Harrisburg Auth. Wtr. Rev. 5.75% 7/15/12 (FGIC Insured) | 1,115,000 | 1,271,423 | ||
Kennett Consolidated School District Series A, 5.25% 2/15/15 (FGIC Insured) | 1,310,000 | 1,456,930 | ||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (b)(c) | 2,000,000 | 2,020,600 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A: | ||||
6% 6/1/09 (AMBAC Insured) | 2,365,000 | 2,669,234 | ||
6% 6/1/16 (AMBAC Insured) | 1,000,000 | 1,187,750 | ||
Montgomery County Higher Ed. & Health Auth. Rev. (Health Care-Holy Redeemer Health Proj.) Series A: | ||||
5.5% 10/1/05 (AMBAC Insured) | 2,240,000 | 2,295,306 | ||
5.5% 10/1/08 (AMBAC Insured) | 1,000,000 | 1,082,970 | ||
Muhlenberg School District Series AA, 5.375% 9/1/15 (FGIC Insured) | 1,055,000 | 1,183,773 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Pennsylvania - continued | ||||
Northumberland County Auth. Commonwealth Lease Rev. (State Correctional Facilities Proj.) 0% 10/15/10 (Escrowed to Maturity) (d) | $ 1,000,000 | $ 828,640 | ||
Owen J. Roberts School District 5.5% 8/15/19 (FSA Insured) | 1,525,000 | 1,704,508 | ||
Pennsbury School District 5.5% 1/15/17 (FGIC Insured) | 2,160,000 | 2,411,899 | ||
Pennsylvania Convention Ctr. Auth. Rev. Series A: | ||||
6.6% 9/1/09 (MBIA Insured) | 9,150,000 | 9,405,285 | ||
6.7% 9/1/14 (MBIA Insured) | 3,965,000 | 4,076,218 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Amtrak Proj.) Series 2001 A: | ||||
6.25% 11/1/31 (c) | 3,300,000 | 3,437,115 | ||
6.375% 11/1/41 (c) | 1,300,000 | 1,358,123 | ||
Pennsylvania Gen. Oblig.: | ||||
First Series: | ||||
5% 6/1/13 (Pre-Refunded to 6/1/09 @ 101) (d) | 750,000 | 831,810 | ||
5% 6/1/14 (Pre-Refunded to 6/1/09 @ 101) (d) | 1,280,000 | 1,419,622 | ||
5% 6/1/19 (Pre-Refunded to 6/1/09 @ 101) (d) | 7,275,000 | 8,068,557 | ||
5.25% 2/1/14 | 125,000 | 138,431 | ||
5.25% 2/1/16 (Pre-Refunded to 2/1/12 @ 100) (d) | 2,100,000 | 2,371,908 | ||
5.25% 2/1/18 (Pre-Refunded to 2/1/12 @ 100) (d) | 1,250,000 | 1,411,850 | ||
Second Series: | ||||
0% 7/1/07 (AMBAC Insured) | 1,770,000 | 1,654,083 | ||
5% 8/1/17 (Pre-Refunded to 8/1/08 @ 101) (d) | 2,450,000 | 2,690,174 | ||
5% 5/1/20 (Pre-Refunded to 5/1/12 @ 100) (d) | 1,175,000 | 1,307,975 | ||
5.25% 10/15/13 (Pre-Refunded to 10/15/10 @ 101) (d) | 1,000,000 | 1,130,900 | ||
5.5% 5/1/17 (Pre-Refunded to 5/1/12 @ 100) (d) | 6,000,000 | 6,873,120 | ||
5.75% 10/1/16 (Pre-Refunded to 10/1/09 @ 101) (d) | 475,000 | 543,657 | ||
Pennsylvania Higher Edl. Facilities Auth. College & Univ. Revs.: | ||||
(Trustees Univ. Proj.) 5.5% 7/15/38 | 4,380,000 | 4,659,970 | ||
(Univ. of Pennsylvania Proj.) Series A, 5.9% 9/1/15 | 1,200,000 | 1,227,984 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Drexel Univ. Proj.): | ||||
6% 5/1/24 | 4,075,000 | 4,469,827 | ||
6% 5/1/29 | 3,470,000 | 3,764,221 | ||
(Lafayette College Proj.) 6% 5/1/30 | 2,500,000 | 2,820,375 | ||
(Temple Univ. Proj.) 5.375% 7/15/19 (MBIA Insured) | 1,000,000 | 1,100,540 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Pennsylvania - continued | ||||
Pennsylvania Higher Edl. Facilities Auth. Rev.: - continued | ||||
(UPMC Health Sys. Proj.): | ||||
Series 1999 A: | ||||
5.25% 8/1/10 (FSA Insured) | $ 1,000,000 | $ 1,097,870 | ||
5.25% 8/1/11 (FSA Insured) | 1,000,000 | 1,103,820 | ||
Series 2001 A: | ||||
6% 1/15/22 | 400,000 | 441,100 | ||
6% 1/15/31 | 1,000,000 | 1,094,360 | ||
Series 2000 S, 5.5% 6/15/15 (AMBAC Insured) | 500,000 | 552,985 | ||
Pennsylvania Hsg. Fin. Agcy.: | ||||
Series 52B, 5.55% 10/1/12 (c) | 235,000 | 235,545 | ||
Series 54A, 5.375% 10/1/28 (c) | 565,000 | 573,639 | ||
Pennsylvania Indl. Dev. Auth. Rev.: | ||||
5.5% 7/1/16 (AMBAC Insured) | 1,080,000 | 1,220,400 | ||
7% 1/1/07 (AMBAC Insured) | 1,000,000 | 1,088,610 | ||
Pennsylvania Pub. School Bldg. Auth. School Rev. (Northwestern School District Proj.) Series E, 5.75% 1/15/19 (FGIC Insured) | 500,000 | 554,400 | ||
Pennsylvania Tpk. Commission Registration Fee Rev.: | ||||
Series 2001, 5.5% 7/15/33 (AMBAC Insured) | 1,000,000 | 1,090,730 | ||
5% 7/15/41 (AMBAC Insured) | 4,500,000 | 4,603,410 | ||
5.25% 7/15/41 (AMBAC Insured) | 1,800,000 | 1,886,976 | ||
Pennsylvania Tpk. Commission Tpk. Rev. Series S, 5.625% 6/1/12 (FGIC Insured) | 2,000,000 | 2,285,160 | ||
Philadelphia Arpt. Rev.: | ||||
Series 1998, 5.375% 6/15/10 (FGIC Insured) (c) | 2,000,000 | 2,175,940 | ||
5.375% 6/15/11 (FGIC Insured) (c) | 3,770,000 | 4,096,482 | ||
6% 6/15/08 (FGIC Insured) (c) | 3,000,000 | 3,301,680 | ||
Philadelphia Gas Works Rev.: | ||||
(1975 Gen. Ordinance Proj.) 17th Series, 5% 7/1/07 (FSA Insured) | 4,000,000 | 4,238,840 | ||
Third Series, 5% 8/1/06 (FSA Insured) | 1,000,000 | 1,038,130 | ||
Philadelphia Gen. Oblig. 5.25% 9/15/12 (FSA Insured) | 2,455,000 | 2,716,752 | ||
Philadelphia Hosp. & Higher Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series A: | ||||
5% 5/15/09 | 1,000,000 | 1,072,170 | ||
5.5% 5/15/08 | 1,000,000 | 1,090,030 | ||
Philadelphia Hosps. & Higher Ed. Facilities Auth. Hosp. Rev. (Pennsylvania Hosp. Proj.) 6.25% 7/1/06 (Escrowed to Maturity) (d) | 2,600,000 | 2,751,034 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Pennsylvania - continued | ||||
Philadelphia Muni. Auth. Rev.: | ||||
(Muni. Svcs. Bldg. Lease Prog.) 0% 3/15/11 (FSA Insured) | $ 1,000,000 | $ 798,300 | ||
Series B, 5.25% 11/15/11 (FSA Insured) | 2,000,000 | 2,235,020 | ||
Philadelphia School District: | ||||
Series 2000 A, 5.75% 2/1/13 (Pre-Refunded to 2/1/11 @ 100) (d) | 365,000 | 419,243 | ||
Series 2002 A: | ||||
5.5% 2/1/26 (Pre-Refunded to 2/1/12 @ 100) (d) | 3,565,000 | 4,070,517 | ||
5.5% 2/1/31 (Pre-Refunded to 2/1/12 @ 100) (d) | 1,000,000 | 1,141,800 | ||
Series A, 5.75% 2/1/16 (Pre-Refunded to 2/1/11 @ 100) (d) | 500,000 | 574,305 | ||
Series B: | ||||
5.375% 4/1/27 (Pre-Refunded to 4/1/07 @ 100) (d) | 4,000,000 | 4,266,760 | ||
5.625% 8/1/15 (FGIC Insured) | 1,500,000 | 1,690,185 | ||
Series D, 5.125% 6/1/34 (FGIC Insured) | 1,800,000 | 1,885,428 | ||
Philadelphia Wtr. & Wastewtr. Rev.: | ||||
Series 14, 0% 10/1/08 (MBIA Insured) | 5,300,000 | 4,764,382 | ||
Series A, 5.375% 11/1/19 (FGIC Insured) | 3,000,000 | 3,325,530 | ||
Pittsburgh Gen. Oblig.: | ||||
Series 2003 A: | ||||
5.5% 9/1/16 (AMBAC Insured) | 5,000,000 | 5,537,800 | ||
5.75% 9/1/22 (Pre-Refunded to 9/1/09 @ 100) (d) | 800,000 | 903,056 | ||
Series 2003 D, 5% 9/1/06 (FGIC Insured) | 250,000 | 261,063 | ||
Series A, 6% 3/1/07 (MBIA Insured) | 2,735,000 | 2,944,118 | ||
5.5% 9/1/12 (AMBAC Insured) | 1,065,000 | 1,137,495 | ||
Pittsburgh School District Series C: | ||||
0% 8/1/07 (AMBAC Insured) | 2,610,000 | 2,432,938 | ||
0% 8/1/08 (AMBAC Insured) | 2,000,000 | 1,807,700 | ||
Pittsburgh Wtr. & Swr. Auth. Wtr. & Swr. Sys. Rev. | 10,000,000 | 11,988,295 | ||
Quaker Valley School District 5.5% 4/1/25 (FSA Insured) | 1,020,000 | 1,133,812 | ||
Scranton-Lackawanna Health & Welfare Auth. Rev. (Cmnty. Med. Ctr. Proj.) 5.5% 7/1/12 (MBIA Insured) | 3,375,000 | 3,697,043 | ||
Spring-Ford Area School District: | ||||
5.375% 4/1/16 (FSA Insured) | 790,000 | 877,556 | ||
5.375% 4/1/17 (FSA Insured) | 830,000 | 914,212 | ||
5.375% 4/1/18 (FSA Insured) | 875,000 | 959,709 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Pennsylvania - continued | ||||
Tredyffrin-Easttown School District: | ||||
5.5% 2/15/13 | $ 1,015,000 | $ 1,132,344 | ||
5.5% 2/15/16 | 2,140,000 | 2,373,495 | ||
Upper Saint Clair Township School District 5.375% 7/15/16 (FSA Insured) | 1,855,000 | 2,067,824 | ||
West Allegheny School District Series B: | ||||
5% 2/1/11 (FGIC Insured) | 1,225,000 | 1,347,917 | ||
5.25% 2/1/12 (FGIC Insured) | 1,850,000 | 2,070,890 | ||
Westmoreland County Gen. Oblig.: | ||||
0% 8/1/15 (Escrowed to Maturity) (d) | 4,290,000 | 2,784,596 | ||
0% 8/1/16 (Escrowed to Maturity) (d) | 2,955,000 | 1,824,594 | ||
Westmoreland County Indl. Dev. Auth. Rev. (Nat'l. Waste & Energy Corp./Valley Landfill Expansion Proj.) 5.1%, tender 5/1/09 (b)(c) | 2,700,000 | 2,829,600 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev.: | ||||
Series A: | ||||
0% 8/15/19 (FGIC Insured) | 5,000,000 | 2,598,500 | ||
0% 8/15/20 (FGIC Insured) | 2,500,000 | 1,225,400 | ||
Series C, 0% 8/15/17 (Escrowed to Maturity) (d) | 2,500,000 | 1,426,300 | ||
York City Swr. Auth. Swr. Rev. 0% 12/1/12 (MBIA Insured) | 3,235,000 | 2,387,462 | ||
York County Solid Waste & Refuse Auth. Solid Waste Sys. Rev. 5.25% 12/1/05 (FGIC Insured) | 2,500,000 | 2,570,675 | ||
281,984,550 | ||||
Puerto Rico - 1.7% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. Series Y, 5.5% 7/1/36 (FSA Insured) | 400,000 | 444,692 | ||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A, 5.5% 10/1/32 (Escrowed to Maturity) (d) | 2,600,000 | 2,840,708 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Puerto Rico - continued | ||||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.: | ||||
Series II, 5.375% 7/1/16 (MBIA Insured) | $ 1,000,000 | $ 1,127,470 | ||
Series QQ, 5.25% 7/1/13 (XL Cap. Assurance, Inc. Insured) (a) | 500,000 | 552,720 | ||
4,965,590 |
TOTAL INVESTMENT PORTFOLIO - 97.8% (Cost $273,818,608) | 291,056,022 | ||
NET OTHER ASSETS - 2.2% | 6,565,371 | ||
NET ASSETS - 100% | $ 297,621,393 |
Swap Agreements | |||||
Expiration | Notional | Value | |||
Interest Rate Swap | |||||
Receive quarterly a fixed rate equal to 4.1395% and pay quarterly a floating rate based on BMA Municipal Swap Index with Morgan Stanley, Inc. | May 2025 | $ 2,000,000 | $ 5,042 |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(d) Security collateralized by an amount sufficient to pay interest and principal. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 29.3% |
Escrowed/Pre-Refunded | 18.7% |
Education | 12.0% |
Transportation | 11.6% |
Health Care | 10.3% |
Water & Sewer | 9.5% |
Others* (individually less than 5%) | 8.6% |
100.0% |
*Includes net other assets |
Income Tax Information |
The fund hereby designates as capital gain dividends: For dividends with respect to the taxable year ended December 31, 2004, $1,131,000 or, if different, the net capital gain of such year, and for dividends with respect to the taxable year ended December 31, 2003, $186,000 or, if different, the excess of (a) the net capital gain of such year, over (b) amounts previously designated as capital gain dividends with respect to such year. |
During the fiscal year ended December 31, 2004, 100.00% of the fund's income dividends was free from federal income tax, and 12.60% of the fund's income dividends was subject to the federal alternative minimum tax (unaudited). The fund will notify shareholders in January 2005 of amounts for use in preparing 2004 income tax returns. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Spartan Pennsylvania Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
December 31, 2004 | ||
Assets | ||
Investment in securities, at value (cost $273,818,608) - See accompanying schedule | $ 291,056,022 | |
Cash | 4,715,909 | |
Receivable for fund shares sold | 121,755 | |
Interest receivable | 3,563,262 | |
Swap agreements, at value | 5,042 | |
Prepaid expenses | 1,095 | |
Other receivables | 7,029 | |
Total assets | 299,470,114 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 546,415 | |
Payable for fund shares redeemed | 861,013 | |
Distributions payable | 284,447 | |
Accrued management fee | 92,124 | |
Other affiliated payables | 25,703 | |
Other payables and accrued expenses | 39,019 | |
Total liabilities | 1,848,721 | |
Net Assets | $ 297,621,393 | |
Net Assets consist of: | ||
Paid in capital | $ 281,034,881 | |
Distributions in excess of net investment income | (2,166) | |
Accumulated undistributed net realized gain (loss) on investments | (653,778) | |
Net unrealized appreciation (depreciation) on investments | 17,242,456 | |
Net Assets, for 27,007,273 shares outstanding | $ 297,621,393 | |
Net Asset Value, offering price and redemption price per share ($297,621,393 ÷ 27,007,273 shares) | $ 11.02 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Spartan Pennsylvania Municipal Income Fund
Financial Statements - continued
Statement of Operations
Year ended December 31, 2004 | ||
Investment Income | ||
Interest | $ 13,378,890 | |
Expenses | ||
Management fee | $ 1,085,476 | |
Transfer agent fees | 214,224 | |
Accounting fees and expenses | 74,157 | |
Non-interested trustees' compensation | 1,659 | |
Custodian fees and expenses | 5,786 | |
Registration fees | 22,556 | |
Audit | 40,927 | |
Legal | 3,683 | |
Miscellaneous | 7,952 | |
Total expenses before reductions | 1,456,420 | |
Expense reductions | (30,894) | 1,425,526 |
Net investment income | 11,953,364 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 1,135,566 | |
Swap agreements | (4,381) | |
Total net realized gain (loss) | 1,131,185 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,391,275) | |
Swap agreements | 5,042 | |
Total change in net unrealized appreciation (depreciation) | (1,386,233) | |
Net gain (loss) | (255,048) | |
Net increase (decrease) in net assets resulting from operations | $ 11,698,316 |
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 | $ 11,953,364 | $ 12,411,615 |
Net realized gain (loss) | 1,131,185 | 3,115,200 |
Change in net unrealized appreciation (depreciation) | (1,386,233) | (684,686) |
Net increase (decrease) in net assets resulting | 11,698,316 | 14,842,129 |
Distributions to shareholders from net investment income | (11,909,386) | (12,386,124) |
Distributions to shareholders from net realized gain | (1,280,619) | (2,676,206) |
Total distributions | (13,190,005) | (15,062,330) |
Share transactions | 41,546,733 | 33,102,566 |
Reinvestment of distributions | 9,672,228 | 11,095,137 |
Cost of shares redeemed | (44,125,799) | (51,986,017) |
Net increase (decrease) in net assets resulting from share transactions | 7,093,162 | (7,788,314) |
Redemption fees | 1,146 | 1,591 |
Total increase (decrease) in net assets | 5,602,619 | (8,006,924) |
Net Assets | ||
Beginning of period | 292,018,774 | 300,025,698 |
End of period (including distributions in excess of net investment income of $2,166 and undistributed net investment income of $23,804, respectively) | $ 297,621,393 | $ 292,018,774 |
Other Information Shares | ||
Sold | 3,770,208 | 2,987,477 |
Issued in reinvestment of distributions | 881,647 | 1,001,950 |
Redeemed | (4,041,514) | (4,706,471) |
Net increase (decrease) | 610,341 | (717,044) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000 |
Selected Per-Share Data | |||||
Net asset value, | $ 11.06 | $ 11.07 | $ 10.64 | $ 10.64 | $ 10.06 |
Income from Investment Operations | |||||
Net investment income B | .454 | .463 | .482 | .494 E | .494 |
Net realized and unrealized gain (loss) | .006 C | .091 | .471 | .030 E | .581 |
Total from investment operations | .460 | .554 | .953 | .524 | 1.075 |
Distributions from net investment income | (.452) | (.462) | (.482) | (.493) | (.495) |
Distributions from net realized gain | (.048) | (.102) | (.041) | (.031) | - |
Total distributions | (.500) | (.564) | (.523) | (.524) | (.495) |
Redemption fees added to paid | - | - | - | - | - |
Net asset value, | $ 11.02 | $ 11.06 | $ 11.07 | $ 10.64 | $ 10.64 |
Total Return A | 4.28% | 5.11% | 9.14% | 4.97% | 10.99% |
Ratios to Average Net Assets D | |||||
Expenses before expense reductions | .50% | .51% | .51% | .51% | .52% |
Expenses net of voluntary waivers, if any | .50% | .51% | .51% | .51% | .52% |
Expenses net of all reductions | .49% | .50% | .49% | .45% | .44% |
Net investment income | 4.14% | 4.18% | 4.42% | 4.59% E | 4.84% |
Supplemental Data | |||||
Net assets, end of period | $ 297,621 | $ 292,019 | $ 300,026 | $ 269,262 | $ 243,369 |
Portfolio turnover rate | 14% | 18% | 9% | 22% | 26% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the fund.
D Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary 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 fund.
E Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.
F 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
Maturity Diversification | |||
Days | % of fund's investments 12/31/04 | % of fund's investments 6/30/04 | % of fund's |
0 - 30 | 87.7 | 79.2 | 74.0 |
31 - 90 | 3.2 | 13.2 | 2.2 |
91 - 180 | 1.4 | 3.0 | 17.5 |
181 - 397 | 7.7 | 4.6 | 6.3 |
Weighted Average Maturity | |||
12/31/04 | 6/30/04 | 12/31/03 | |
Fidelity Pennsylvania Municipal Money Market Fund | 27 Days | 30 Days | 41 Days |
Pennsylvania Tax-Free Money Market Funds Average * | 32 Days | 32 Days | 36 Days |
*Source: iMoneyNet, Inc.
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2004 | As of June 30, 2004 | ||||||
![]() | Variable Rate Demand Notes (VRDNs) 79.5% | ![]() | Variable Rate Demand Notes (VRDNs) 66.9% | ||||
![]() | Commercial Paper (including | ![]() | Commercial Paper (including | ||||
![]() | Tender Bonds 4.0% | ![]() | Tender Bonds 3.9% | ||||
![]() | Municipal Notes 3.3% | ![]() | Municipal Notes 1.3% | ||||
![]() | Fidelity Municipal Cash Central Fund 0.0% | ![]() | Fidelity Municipal Cash Central Fund 0.1% | ||||
![]() | Other Investments 4.7% | ![]() | Other Investments 10.9% | ||||
![]() | Net Other Assets 2.5% | ![]() | Net Other Assets 3.8% |
Current and Historical Seven-Day Yields
1/3/05 | 9/27/04 | 6/28/04 | 3/29/04 | 12/29/03 | |
Fidelity Pennsylvania Municipal Money Market Fund | 1.48% | 1.02% | 0.64% | 0.60% | 0.84% |
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it is possible to lose money by investing in the fund.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Investments December 31, 2004
Showing Percentage of Net Assets
Municipal Securities - 97.5% | |||
Principal | Value | ||
New Jersey/Pennsylvania - 1.0% | |||
Delaware River Port Auth. Pennsylvania & New Jersey Rev. Participating VRDN: | |||
Series Merlots 00 B4, 2.02% (Liquidity Facility Wachovia Bank NA) (a)(c) | $ 2,300,000 | $ 2,300,000 | |
Series PA 606, 2.03% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(c) | 1,200,000 | 1,200,000 | |
3,500,000 | |||
Pennsylvania - 96.5% | |||
Allegheny County Arpt. Rev.: | |||
Bonds (Pittsburgh Int'l. Arpt. Proj.) 5.5% 1/1/05 (MBIA Insured) (b) | 7,400,000 | 7,400,000 | |
Participating VRDN Series PA 567, 2.08% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(c) | 2,000,000 | 2,000,000 | |
Allegheny County Gen. Oblig. Bonds Series C56, 4% 10/1/05 (FSA Insured) | 6,595,000 | 6,689,336 | |
Allegheny County Hosp. Dev. Auth. Rev.: | |||
Bonds (South Hills Health Sys. Proj.) Series 2000 A, 1.71%, tender 6/1/05, LOC PNC Bank NA, Pittsburgh (a) | 3,900,000 | 3,900,000 | |
Participating VRDN Series PT 762, 2.01% (Liquidity Facility Landesbank Hessen-Thuringen) (a)(c) | 2,720,000 | 2,720,000 | |
Allegheny County Indl. Dev. Auth. Econ. Dev. Rev. (Glassport Realty Ltd. Proj.) 2.2%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)(b) | 1,730,000 | 1,730,000 | |
Allegheny County Indl. Dev. Auth. Rev.: | |||
Bonds (Children's Museum of Pittsburgh Proj.) 1.85%, tender 10/1/05, LOC PNC Bank NA, Pittsburgh (a) | 4,230,000 | 4,230,000 | |
Participating VRDN Series Merlots A48, 2.06% (Liquidity Facility Wachovia Bank NA) (a)(c) | 3,000,000 | 3,000,000 | |
(Doren, Inc. Proj.) Series 1997 C, 2.12%, LOC Nat'l. City Bank, PA, VRDN (a)(b) | 1,600,000 | 1,600,000 | |
(R.I. Lampus Co. Proj.) Series 1997 A, 2.12%, LOC Nat'l. City Bank, PA, VRDN (a)(b) | 2,560,000 | 2,560,000 | |
(Sacred Heart High School Proj.) 2.06%, LOC PNC Bank NA, Pittsburgh, VRDN (a) | 1,000,000 | 1,000,000 | |
(Union Elec. Steel Co. Proj.) Series 1996 A, 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | 3,120,000 | 3,120,000 | |
(UPMC Children's Hosp. Proj.) Series 2004 A, 2.1%, VRDN (a) | 3,200,000 | 3,200,000 | |
(UPMC Health Sys. Proj.) Series 2002 C, 2.01%, LOC Comerica Bank, Detroit, VRDN (a) | 1,740,000 | 1,740,000 | |
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Participating VRDN Series EGL 95 3503, 2.03% (Liquidity Facility Citibank NA, New York) (a)(c) | 2,700,000 | 2,700,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Pennsylvania - continued | |||
Berks County Indl. Dev. Auth. Rev. (Grafika Commercial Printing, Inc. Proj.) Series 1995, 2.09%, LOC Wachovia Bank NA, VRDN (a)(b) | $ 695,000 | $ 695,000 | |
Blair County Indl. Dev. Auth. Rev. (Homewood at Martinsburg Proj.) 1.98%, LOC Manufacturers & Traders Trust Co., VRDN (a) | 3,200,000 | 3,200,000 | |
Bucks County Indl. Dev. Auth. Rev.: | |||
(Double H Plastics, Inc. Proj.) Series 1993, 2.09%, LOC Wachovia Bank NA, VRDN (a)(b) | 1,020,000 | 1,020,000 | |
(Snowball Real Estate LP Proj.) 2.14%, LOC Wachovia Bank NA, VRDN (a)(b) | 2,375,000 | 2,375,000 | |
Butler County Indl. Dev. Auth. Rev. (Armco, Inc. Proj.) | 1,500,000 | 1,500,000 | |
Cambria County Ind. Dev. Auth. (Cambria Cogen Co. Proj.) Series 1998 A1, 2%, LOC Bayerische Hypo-und Vereinsbank AG, VRDN (a)(b) | 2,525,000 | 2,525,000 | |
Central Bucks School District Series 2000 A, 2.04% | 4,330,000 | 4,330,000 | |
Chester County Inter Unit 2.09%, LOC PNC Bank NA, Pittsburgh, VRDN (a) | 1,660,000 | 1,660,000 | |
Delaware County Indl. Dev. Auth. Poll. Cont. Rev.: | |||
Bonds (Exelon Generation Co. Proj.) Series 2001 A, 1.75% tender 2/3/05, LOC Wachovia Bank NA, CP mode | 6,000,000 | 6,000,000 | |
(PECO Energy Co. Proj.) Series 1999 A, 2.25%, LOC Wachovia Bank NA, VRDN (a) | 3,300,000 | 3,300,000 | |
Harrisburg Auth. Wtr. Rev. Series A, 2.04% (FGIC Insured), VRDN (a) | 2,800,000 | 2,800,000 | |
Hatfield Township Indl. Dev. Auth. Exempt Facilities Rev. (Hatfield Quality Meats Proj.) 2.05%, LOC Bank of America NA, VRDN (a)(b) | 2,500,000 | 2,500,000 | |
Lackawanna County Gen. Oblig. Series 2004 B, 2.01% | 3,300,000 | 3,300,000 | |
Lancaster County Hosp. Auth. Rev. (Health Ctr. Willow Valley Proj.) Series B, 2.09% (MBIA Insured), VRDN (a) | 2,295,000 | 2,295,000 | |
Lancaster Higher Ed. Auth. College Rev. (Franklin & Marshall College Proj.) Series 1997, 2.09%, VRDN (a) | 2,880,000 | 2,880,000 | |
Lawrence County Indl. Dev. Auth. Indl. Dev. Rev. (Atlantic States Materials Proj.) Series 1999, 2.09%, LOC Wachovia Bank NA, VRDN (a)(b) | 1,400,000 | 1,400,000 | |
Lycoming County Indl. Dev. Auth. (FXD-Brodart Co. Proj.): | |||
Series A, 2.14%, LOC Manufacturers & Traders Trust Co., VRDN (a)(b) | 1,905,000 | 1,905,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Pennsylvania - continued | |||
Lycoming County Indl. Dev. Auth. (FXD-Brodart Co. Proj.): - continued | |||
Series C, 2.14%, LOC Manufacturers & Traders Trust Co., VRDN (a)(b) | $ 1,000,000 | $ 1,000,000 | |
Montgomery County Higher Ed. & Health Auth. Rev. (Liberty Lutheran Svcs. Proj.) 2%, LOC Fleet Nat'l. Bank, VRDN (a) | 3,300,000 | 3,300,000 | |
Montgomery County Indl. Dev. Auth. Poll. Cont. Rev.: | |||
(Peco Energy Co. Proj.) Series 1999 A, 2%, LOC Wachovia Bank NA, VRDN (a) | 3,200,000 | 3,200,000 | |
(RJI LP Proj.) Series 1992, 2.15%, LOC Nat'l. City Bank, VRDN (a)(b) | 190,000 | 190,000 | |
Northampton County Indl. Dev. Auth. Rev.: | |||
Bonds (American Wtr. Cap. Corp. Proj.) Series 1991, 1.78% tender 2/11/05, CP mode (b) | 2,500,000 | 2,500,000 | |
(Binney & Smith, Inc. Proj.) Series 1997 A, 2.04%, LOC JPMorgan Chase Bank, VRDN (a)(b) | 2,350,000 | 2,350,000 | |
Northampton Indl. Dev. Auth. Rev. (Ultra-Poly Corp./Portland Ind. Park Proj.) 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | 2,600,000 | 2,600,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev.: | |||
(Merck & Co. Proj.) Series 2000, 2.11%, VRDN (a)(b) | 7,200,000 | 7,200,000 | |
(York Wtr. Co. Proj.) Series B, 2.08% (XL Cap. Assurance, Inc. Insured), VRDN (a)(b) | 3,500,000 | 3,500,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Indl. Dev. Rev.: | |||
(Dodge-Regupol, Inc. Proj.) Series D4, 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | 200,000 | 200,000 | |
Series 1996 A2, 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | 700,000 | 700,000 | |
Series 1996 A7, 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | 425,000 | 425,000 | |
Series 1999 C4, 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | 900,000 | 900,000 | |
Series 2002 B6, 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | 900,000 | 900,000 | |
Series 2004 D2, 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | 2,900,000 | 2,900,000 | |
Series 2004 D3, 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | 1,500,000 | 1,500,000 | |
Series 2004 D6, 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | 2,800,000 | 2,800,000 | |
Series 2004 E1, 2.01%, LOC PNC Bank NA, Pittsburgh, VRDN (a) | 2,000,000 | 2,000,000 | |
Series B3, 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | 1,700,000 | 1,700,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Pennsylvania - continued | |||
Pennsylvania Econ. Dev. Fing. Auth. Indl. Dev. Rev.: - continued | |||
Series B5, 2.08%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b) | $ 1,100,000 | $ 1,100,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Rev. (Westrum Hanover, L.P. Proj.) 2.05%, VRDN (a)(b) | 2,500,000 | 2,500,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Solid Waste Disp. Rev. Participating VRDN Series MT 47, 2.06%, LOC Lloyds TSB Bank PLC (a)(b)(c) | 4,500,000 | 4,500,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Wastewtr. Treatment Rev. (Sunoco, Inc. (R&M) Proj.): | |||
Series A, 2.155% (Sunoco, Inc. Guaranteed), VRDN (a)(b) | 1,600,000 | 1,600,000 | |
Series B, 2.19% (Sunoco, Inc. Guaranteed), VRDN (a)(b) | 1,600,000 | 1,600,000 | |
Pennsylvania Gen. Oblig. Participating VRDN: | |||
Series Merlots 04 B15, 2.06% (Liquidity Facility Wachovia Bank NA) (a)(c) | 3,100,000 | 3,100,000 | |
Series MS 01 465, 2.03% (Liquidity Facility Morgan Stanley) (a)(c) | 6,995,000 | 6,995,000 | |
Pennsylvania Higher Ed. Assistance Agcy. Student Ln. Rev.: | |||
Series 1988 C, 1.93%, LOC Sallie Mae, VRDN (a)(b) | 17,800,000 | 17,800,000 | |
Series 1997 A, 2.05% (AMBAC Insured), VRDN (a)(b) | 2,900,000 | 2,900,000 | |
Series 1999 A, 2.01% (AMBAC Insured), VRDN (a)(b) | 4,000,000 | 4,000,000 | |
Series 2000 A, 2.05% (AMBAC Insured), VRDN (a)(b) | 4,000,000 | 4,000,000 | |
Series 2001 B, 2.05% (FSA Insured), VRDN (a)(b) | 800,000 | 800,000 | |
Series 2002 B, 2.05% (FSA Insured), VRDN (a)(b) | 2,800,000 | 2,800,000 | |
Series A, 2.05% (FSA Insured), VRDN (a)(b) | 5,600,000 | 5,600,000 | |
Series A1, 2.05% (AMBAC Insured), VRDN (a)(b) | 5,600,000 | 5,600,000 | |
Pennsylvania Higher Edl. Facilities Auth. Health Svcs. Rev. Bonds Series 1996 A, 6% 1/1/05 | 1,000,000 | 1,000,000 | |
Pennsylvania Higher Edl. Facilities Auth. Hosp. Rev. Participating VRDN Series MT 42, 2.05%, LOC Lloyds TSB Bank PLC (a)(c) | 3,290,000 | 3,290,000 | |
Pennsylvania Higher Edl. Facilities Auth. Rev. (Mount Aloysius College Proj.) Series L3, 2.03%, LOC Allied Irish Banks PLC, VRDN (a) | 2,600,000 | 2,600,000 | |
Pennsylvania Hsg. Fin. Agcy.: | |||
Bonds Series 2004 81A, 1.25% 4/1/05 (b) | 510,000 | 510,000 | |
Participating VRDN: | |||
Series PA 1235, 2.06% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(c) | 2,280,000 | 2,280,000 | |
Series PA 930, 2.04% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(c) | 5,995,000 | 5,995,000 | |
Series PT 2068, 2.06% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(c) | 1,820,000 | 1,820,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Pennsylvania - continued | |||
Pennsylvania Hsg. Fin. Agcy.: - continued | |||
Participating VRDN: | |||
Series PT 2190, 2.06% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(c) | $ 5,440,000 | $ 5,440,000 | |
Series PT 890, 2.06% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(c) | 1,795,000 | 1,795,000 | |
Series 2004 82B, 2.03% (Liquidity Facility Landesbank Hessen-Thuringen), VRDN (a)(b) | 23,175,000 | 23,175,000 | |
Series 86 C, 1.99% (Liquidity Facility DEPFA BANK PLC), VRDN (a)(b) | 3,300,000 | 3,300,000 | |
Pennsylvania Pub. School Bldg. Auth. School Rev.: | |||
Bonds Series Merlots 03 A42, 1.8%, tender 7/28/05 (Liquidity Facility Wachovia Bank NA) (a)(c)(d) | 2,895,000 | 2,895,000 | |
Participating VRDN Series MS 958, 2.03% (Liquidity Facility Morgan Stanley) (a)(c) | 3,100,000 | 3,100,000 | |
Pennsylvania Tpk. Commission Oil Franchise Tax Rev. Participating VRDN: | |||
Series PT 2467, 2.01% (Liquidity Facility WestLB AG) (a)(c) | 3,300,000 | 3,300,000 | |
Series ROC II R1005, 2.03% (Liquidity Facility Citigroup Global Markets Hldgs., Inc.) (a)(c) | 2,470,000 | 2,470,000 | |
Pennsylvania Tpk. Commission Tpk. Rev. Bonds Series AAB 04 9, 2.04%, tender 1/7/05 (Liquidity Facility ABN-AMRO Bank NV) (a)(c) | 3,100,000 | 3,100,000 | |
Philadelphia Arpt. Rev. Participating VRDN Series SG 118, 2.08% (Liquidity Facility Societe Generale) (a)(b)(c) | 2,600,000 | 2,600,000 | |
Philadelphia Auth. for Indl. Dev. Arpt. Rev. Participating VRDN: | |||
Series LB 04 L17, 2.1% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(b)(c) | 3,385,000 | 3,385,000 | |
Series PA 882, 2.08% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(c) | 2,200,000 | 2,200,000 | |
Series Putters 217, 2.04% (Liquidity Facility JPMorgan Chase Bank) (a)(b)(c) | 7,715,000 | 7,715,000 | |
Philadelphia Gas Works Rev. Participating VRDN: | |||
Series 1998 104, 2.03% (Liquidity Facility Morgan Stanley) (a)(c) | 2,195,000 | 2,195,000 | |
Series MS 906, 2.03% (Liquidity Facility Morgan Stanley) (a)(c) | 3,000,000 | 3,000,000 | |
Philadelphia Gen. Oblig. TRAN 3% 6/30/05 | 5,000,000 | 5,031,815 | |
Philadelphia School District TRAN 3% 6/30/05 | 6,000,000 | 6,040,469 | |
Philadelphia Wtr. & Wastewtr. Rev. Bonds Series MS 773, 1.1%, tender 3/31/05 (Liquidity Facility Morgan Stanley) (a)(c)(d) | 2,000,000 | 2,000,000 | |
Municipal Securities - continued | |||
Principal | Value | ||
Pennsylvania - continued | |||
Pittsburgh Urban Redev. Auth. Single Family Mortgage Rev. Participating VRDN Series PT 996, 2.06% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(c) | $ 3,100,000 | $ 3,100,000 | |
Schuylkill County Indl. Dev. Auth. Resource Recovery Rev. (Northeastern Pwr. Co. Proj.) Series 1997 B, 2.25%, LOC Dexia Cr. Local de France, VRDN (a)(b) | 6,400,000 | 6,400,000 | |
Schuylkill County Indl. Dev. Auth. Rev. (Metal Sales Manufacturing Corp.) Series 1995, 2.13%, LOC U.S. Bank NA, Minnesota, VRDN (a)(b) | 150,000 | 150,000 | |
Scranton-Lackawanna Health & Welfare Auth. Rev. Participating VRDN Series Merlots 02 A18, 2.06% (Liquidity Facility Wachovia Bank NA) (a)(c) | 2,875,000 | 2,875,000 | |
Venango Indl. Dev. Auth. Resource Recovery Rev. Bonds (Scrubgrass Generating Co. LP Proj.): | |||
Series 1990 B: | |||
1.76% tender 1/14/05, LOC Dexia Cr. Local de France, CP mode (b) | 5,000,000 | 5,000,000 | |
1.9% tender 1/21/05, LOC Dexia Cr. Local de France, CP mode (b) | 3,200,000 | 3,200,000 | |
Series 1993, 1.83% tender 1/13/05, LOC Dexia Cr. Local de France, CP mode (b) | 3,100,000 | 3,100,000 | |
320,096,620 | |||
TOTAL INVESTMENT PORTFOLIO - 97.5% | 323,596,620 | ||
NET OTHER ASSETS - 2.5% | 8,239,000 | ||
NET ASSETS - 100% | $ 331,835,620 |
Total Cost for Federal Income Tax Purposes $ 323,596,620 |
Security Type Abbreviations |
CP - COMMERCIAL PAPER |
TRAN - TAX AND REVENUE |
VRDN - VARIABLE RATE DEMAND NOTE |
Legend |
(a) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(c) Provides evidence of ownership in one or more underlying municipal bonds. |
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $4,895,000 or 1.5% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition | Cost |
Pennsylvania Pub. School Bldg. Auth. School Rev. Bonds Series Merlots 03 A42, 1.8%, tender 7/28/05 (Liquidity Facility Wachovia Bank NA) | 9/18/03 | $ 2,895,000 |
Philadelphia Wtr. & Wastewtr. Rev. Bonds Series MS 773, 1.1%, tender 3/31/05 (Liquidity Facility Morgan Stanley) | 4/2/03 | $ 2,000,000 |
Income Tax Information |
At December 31, 2004, the fund had a capital loss carryforward of approximately $23,000 all of which will expire on December 31, 2012. |
During the fiscal year ended December 31, 2004, 100.00% of the fund's income dividends was free from federal income tax, and 59.76% of the fund's income dividends was subject to the federal alternative minimum tax (unaudited). The fund will notify shareholders in January 2005 of amounts for use in preparing 2004 income tax returns. |
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, 2004 | ||
Assets | ||
Investment in securities, at value (cost $323,596,620) - See accompanying schedule | $ 323,596,620 | |
Cash | 7,763,321 | |
Receivable for investments sold | 353 | |
Receivable for fund shares sold | 1,820,969 | |
Interest receivable | 1,317,740 | |
Other receivables | 15,850 | |
Total assets | 334,514,853 | |
Liabilities | ||
Payable for fund shares redeemed | $ 2,495,528 | |
Distributions payable | 43,930 | |
Accrued management fee | 138,272 | |
Other affiliated payables | 1,503 | |
Total liabilities | 2,679,233 | |
Net Assets | $ 331,835,620 | |
Net Assets consist of: | ||
Paid in capital | $ 331,818,568 | |
Undistributed net investment income | 40,289 | |
Accumulated undistributed net realized gain (loss) on investments | (23,237) | |
Net Assets, for 331,861,386 shares outstanding | $ 331,835,620 | |
Net Asset Value, offering price and redemption price per share ($331,835,620 ÷ 331,861,386 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Financial Statements - continued
Statement of Operations
Year ended December 31, 2004 | ||
Investment Income | ||
Interest | $ 3,973,167 | |
Expenses | ||
Management fee | $ 1,541,124 | |
Non-interested trustees' compensation | 1,715 | |
Total expenses before reductions | 1,542,839 | |
Expense reductions | (46,883) | 1,495,956 |
Net investment income | 2,477,211 | |
Net realized gain (loss) on investment securities | (23,237) | |
Net increase in net assets resulting from operations | $ 2,453,974 |
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 | $ 2,477,211 | $ 1,887,328 |
Net realized gain (loss) | (23,237) | 34,964 |
Net increase in net assets resulting | 2,453,974 | 1,922,292 |
Distributions to shareholders from net investment income | (2,515,303) | (1,887,328) |
Share transactions at net asset value of $1.00 per share | 592,486,036 | 400,930,209 |
Reinvestment of distributions | 2,473,422 | 1,808,695 |
Cost of shares redeemed | (557,374,245) | (386,784,374) |
Net increase (decrease) in net assets and shares resulting from share transactions | 37,585,213 | 15,954,530 |
Total increase (decrease) in net assets | 37,523,884 | 15,989,494 |
Net Assets | ||
Beginning of period | 294,311,736 | 278,322,242 |
End of period (including undistributed net investment income of $40,289 and $0, respectively) | $ 331,835,620 | $ 294,311,736 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000 |
Selected Per-Share Data | |||||
Net asset value, | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations | |||||
Net investment income | .008 | .006 | .011 | .025 | .037 |
Distributions from net investment income | (.008) | (.006) | (.011) | (.025) | (.037) |
Net asset value, | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return A | .81% | .65% | 1.09% | 2.50% B | 3.80% B |
Ratios to Average Net Assets C | |||||
Expenses before expense reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of voluntary waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .48% | .49% | .46% | .47% | .50% |
Net investment income | .80% | .66% | 1.09% | 2.45% | 3.74% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 331,836 | $ 294,312 | $ 278,322 | $ 240,705 | $ 213,847 |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Total returns do not include the effect of the former account closeout fee.
C Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary 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 fund.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2004
1. Significant Accounting Policies.
Spartan 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. Each fund may be affected by economic and political developments in the state of Pennsylvania. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the income fund and the money market fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities, including restricted securities, are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
As permitted under Rule 2a-7 of the 1940 Act, and certain conditions therein, securities owned by the money market funds are valued initially at cost and thereafter assume a constant amortization to maturity of any discount or premium.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
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Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, each fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the income fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes. There were no significant book-to-tax differences during the period for the money market fund.
Capital accounts within the income fund's financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period. Book-tax differences are primarily due to market discount and losses deferred due to wash sales.
The funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost for the income fund as of period end were as follows:
Unrealized appreciation | $ 16,609,558 | |
Unrealized depreciation | (66,962) | |
Net unrealized appreciation (depreciation) | 16,542,596 | |
Cost for federal income tax purposes | $ 274,513,426 |
The tax character of distributions paid for the income fund was as follows:
December 31, 2004 | December 31, 2003 | |
Tax-exempt Income | $ 11,909,386 | $ 12,386,124 |
Ordinary Income | 9,602 | 54,127 |
Long-term Capital Gains | 1,271,017 | 2,622,079 |
Total | $ 13,190,005 | $ 15,062,330 |
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1. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held in the income fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. Each fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable fund's Schedule of Investments. Each fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each 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. Certain funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable fund's Schedule of Investments.
Swap Agreements. The income fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.
Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact the fund.
Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or
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Notes to Financial Statements - continued
2. Operating Policies - continued
Swap Agreements - continued
securities, may be required to be held in segregated accounts with the fund's custodian in compliance with swap contracts. Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in the fund's Schedule of Investments under the caption "Swap Agreements."
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, for the income fund aggregated $45,005,402 and $40,902,364, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the income fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of.25% of the fund's average net assets and a group fee rate that averaged ..13% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was.38% of the fund's average net assets.
FMR and its affiliates provide the money market fund with investment management related services for which the fund pays a monthly management fee that is based on an annual rate of .50% of the fund's average net assets. FMR pays all other expenses, except the compensation of the non-interested Trustees and certain exceptions such as interest expense. The management fee paid to FMR by the fund is reduced by an amount equal to the fees and expenses paid by the fund to the non-interested Trustees.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the income fund. Citibank has entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the fund's transfer and shareholder servicing agent and accounting functions. The fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period,
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4. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees - continued
the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Spartan Pennsylvania Municipal Income Fund | .07% | | |
Central Funds. The funds may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the funds are recorded as income in the accompanying financial statements. Distributions from the Central Funds are noted in the table below:
Income | |
Fidelity Pennsylvania Municipal Money Market Fund | $ 64,934 |
5. Committed Line of Credit.
The income fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
Through arrangements with the income fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce fund expenses. These expense reductions are noted in the table below.
Custody | Transfer | |
Spartan Pennsylvania Municipal Income Fund | $ 5,374 | $ 25,520 |
In addition, through an arrangement with the money market fund's custodian and transfer agent, $46,883 of credits realized as a result of uninvested cash balances were used to reduce the fund's expenses.
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Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and Fidelity Municipal Trust II and the Shareholders of Spartan 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 Spartan 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, 2004 and the results of their operations, the changes in their net assets and the financial highlights for 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 Municipal Trust's and Fidelity Municipal Trust II's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 16, 2005
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trusts and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except for William O. McCoy, Dennis J. Dirks, and Kenneth L. Wolfe, each of the Trustees oversees 301 funds advised by FMR or an affiliate. Mr. McCoy oversees 303 funds advised by FMR or an affiliate. Mr. Dirks and Mr. Wolfe oversee 223 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (74)** | |
Year of Election or Appointment: 1984 or 1991 Trustee of Fidelity Municipal Trust (1984) and Fidelity Municipal Trust II (1991). Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (43)** | |
Year of Election or Appointment: 2001 Senior Vice President of Pennsylvania Municipal Money Market (2001) and Spartan Pennsylvania Municipal Income (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (50) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (52) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* 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.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (56) | |
Year of Election or Appointment: 2005 Mr. Dirks also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). | |
Robert M. Gates (61) | |
Year of Election or Appointment: 1997 Dr. Gates is Vice Chairman of the non-interested Trustees (2005). Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001), and Brinker International (restaurant management, 2003). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
George H. Heilmeier (68) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001), Teletech Holdings (customer management services), and HRL Laboratories (private research and development, 2004). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE) (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), and Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002). | |
Marie L. Knowles (58) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (60) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Co-Chairman and a Director of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Italtel Holding S.p.A. (telecommunications (Milan, Italy), 2004) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (71) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals), where he served as CEO until April 1998, retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. He is a member of the Executive Committee of the Independent Director's Council of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (71) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), and Progress Energy, Inc. (electric utility). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
Cornelia M. Small (60) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000) and Chairperson (2002) of the Investment Committee, and a member (2002) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1998). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (65) | |
Year of Election or Appointment: 2001 or 2002 Trustee of Fidelity Municipal Trust (2002) and Fidelity Municipal Trust II (2001). Mr. Stavropoulos is Chairman of the Board (2000), CEO (2002), a position he previously held from 1995-2000, Chairman of the Executive Committee (2000), and a Member of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (65) | |
Year of Election or Appointment: 2005 Mr. Wolfe also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003), Bausch & Lomb, Inc., and Revlon Inc. (2004). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (61) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust and Fidelity Municipal Trust II. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Dwight D. Churchill (51) | |
Year of Election or Appointment: 1997 or 2000 Vice President of Pennsylvania Municipal Money Market (2000) and Spartan Pennsylvania Municipal Income (1997). He serves as Head of Fidelity's Fixed-Income Division (2000), Vice President of Fidelity's Money Market Funds (2000), Vice President of Fidelity's Bond Funds (1997), and Senior Vice President of FIMM (2000) and FMR (1997). Mr. Churchill joined Fidelity in 1993 as Vice President and Group Leader of Taxable Fixed-Income Investments. | |
Charles S. Morrison (44) | |
Year of Election or Appointment: 2002 Vice President of Spartan Pennsylvania Municipal Income. Mr. Morrison also serves as Vice President of Fidelity's Bond Funds (2002), and Vice President of certain Asset Allocation and Balanced Funds (2002). He serves as Vice President (2002) and Bond Group Leader (2002) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002) and FMR (2002). Mr. Morrison joined Fidelity in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
David L. Murphy (56) | |
Year of Election or Appointment: 2002 Vice President of Pennsylvania Municipal Money Market. Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002) and Vice President of certain Asset Allocation Funds (2003). He serves as Senior Vice President (2000) and Money Market Group Leader (2002) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of FIMM (2003) and a Vice President of FMR (2000). Previously, Mr. Murphy served as Bond Group Leader (2000-2002) and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002). Mr. Murphy joined Fidelity in 1989 as a portfolio manager in the Bond Group. | |
Mark Sommer (44) | |
Year of Election or Appointment: 2004 Vice President of Spartan Pennsylvania Municipal Income. Mr. Sommer also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Sommer worked as an analyst and manager. | |
Michael Widrig (41) | |
Year of Election or Appointment: 2004 Vice President of Pennsylvania Municipal Money Market. Mr. Widrig also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Widrig worked as an analyst and manager. | |
Eric D. Roiter (56) | |
Year of Election or Appointment: 1998 Secretary of Pennsylvania Municipal Money Market and Spartan Pennsylvania Municipal Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Vice President and Secretary of FDC; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Management & Research (Far East) Inc. (2001-present), of Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). | |
Stuart Fross (45) | |
Year of Election or Appointment: 2003 Assistant Secretary of Pennsylvania Municipal Money Market and Spartan Pennsylvania Municipal Income. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Christine Reynolds (46) | |
Year of Election or Appointment: 2004 President, Treasurer, and Anti-Money Laundering (AML) officer of Pennsylvania Municipal Money Market and Spartan Pennsylvania Municipal Income. Ms. Reynolds also serves as President, Treasurer, and AML officer of other Fidelity funds (2004) and is a Vice President (2003) and an employee (2002) of FMR. Before joining Fidelity Investments, Ms. Reynolds worked at PricewaterhouseCoopers LLP (PwC) (1980-2002), where she was most recently an audit partner with PwC's investment management practice. | |
Timothy F. Hayes (54) | |
Year of Election or Appointment: 2002 Chief Financial Officer of Pennsylvania Municipal Money Market and Spartan Pennsylvania Municipal Income. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
Kenneth A. Rathgeber (57) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Pennsylvania Municipal Money Market and Spartan Pennsylvania Municipal Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004) and Executive Vice President of Risk Oversight for Fidelity Investments (2002). Previously, he served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
John R. Hebble (46) | |
Year of Election or Appointment: 2003 Deputy Treasurer of Pennsylvania Municipal Money Market and Spartan Pennsylvania Municipal Income. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
Kimberley H. Monasterio (41) | |
Year of Election or Appointment: 2004 Deputy Treasurer of Pennsylvania Municipal Money Market and Spartan Pennsylvania Municipal Income. Ms. Monasterio also serves as Deputy Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
John H. Costello (58) | |
Year of Election or Appointment: 1986 Assistant Treasurer of Pennsylvania Municipal Money Market and Spartan Pennsylvania Municipal Income. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (50) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Pennsylvania Municipal Money Market and Spartan Pennsylvania Municipal Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (49) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Pennsylvania Municipal Money Market and Spartan Pennsylvania Municipal Income. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Kenneth B. Robins (35) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Pennsylvania Municipal Money Market and Spartan Pennsylvania Municipal Income. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Annual Report
Spartan Pennsylvania Municipal Income Fund
Proxy Voting Results
A special meeting of the fund's shareholders was held on April 14, 2004 The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* | ||
# of | % of | |
Affirmative | 3,415,899,540.41 | 73.098 |
Against | 857,186,718.73 | 18.343 |
Abstain | 194,806,370.40 | 4.169 |
Broker | 205,155,704.48 | 4.390 |
TOTAL | 4,673,048,334.02 | 100.000 |
PROPOSAL 2 | ||
To elect a Board of Trustees.* | ||
# of | % of | |
J. Michael Cook | ||
Affirmative | 4,338,349,812.56 | 92.838 |
Withheld | 334,698,521.46 | 7.162 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ralph F. Cox | ||
Affirmative | 4,334,671,421.01 | 92.759 |
Withheld | 338,376,913.01 | 7.241 |
TOTAL | 4,673,048,334.02 | 100.000 |
Laura B. Cronin | ||
Affirmative | 4,332,816,177.06 | 92.719 |
Withheld | 340,232,156.96 | 7.281 |
TOTAL | 4,673,048,334.02 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,336,851,658.96 | 92.806 |
Withheld | 336,196,675.06 | 7.194 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
George H. Heilmeier | ||
Affirmative | 4,334,549,149.07 | 92.756 |
Withheld | 338,499,184.95 | 7.244 |
TOTAL | 4,673,048,334.02 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 4,327,320,608.55 | 92.602 |
Withheld | 345,727,725.47 | 7.398 |
TOTAL | 4,673,048,334.02 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 4,322,104,507.32 | 92.490 |
Withheld | 350,943,826.70 | 7.510 |
TOTAL | 4,673,048,334.02 | 100.000 |
Donald J. Kirk | ||
Affirmative | 4,335,814,201.97 | 92.783 |
Withheld | 337,234,132.05 | 7.217 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marie L. Knowles | ||
Affirmative | 4,333,892,089.64 | 92.742 |
Withheld | 339,156,244.38 | 7.258 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,340,856,926.26 | 92.891 |
Withheld | 332,191,407.76 | 7.109 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marvin L. Mann | ||
Affirmative | 4,336,736,818.96 | 92.803 |
Withheld | 336,311,515.06 | 7.197 |
TOTAL | 4,673,048,334.02 | 100.000 |
William O. McCoy | ||
Affirmative | 4,338,426,324.60 | 92.839 |
Withheld | 334,622,009.42 | 7.161 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
Robert L. Reynolds | ||
Affirmative | 4,339,017,198.22 | 92.852 |
Withheld | 334,031,135.80 | 7.148 |
TOTAL | 4,673,048,334.02 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,338,546,239.15 | 92.842 |
Withheld | 334,502,094.87 | 7.158 |
TOTAL | 4,673,048,334.02 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Proxy Voting Results
A special meeting of the fund's shareholders was held on April 14, 2004. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To amend the Trust Instrument to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* | ||
# of | % of | |
Affirmative | 636,855,022.09 | 76.849 |
Against | 150,887,633.15 | 18.208 |
Abstain | 40,713,763.86 | 4.912 |
Broker | 253,332.00 | .031 |
TOTAL | 828,709,751.10 | 100.000 |
PROPOSAL 2 | ||
To elect a Board of Trustees.* | ||
# of | % of | |
J. Michael Cook | ||
Affirmative | 767,157,627.90 | 92.573 |
Withheld | 61,552,123.20 | 7.427 |
TOTAL | 828,709,751.10 | 100.000 |
Ralph F. Cox | ||
Affirmative | 766,126,728.93 | 92.448 |
Withheld | 62,583,022.17 | 7.552 |
TOTAL | 828,709,751.10 | 100.000 |
Laura B. Cronin | ||
Affirmative | 767,351,050.02 | 92.596 |
Withheld | 61,358,701.08 | 7.404 |
TOTAL | 828,709,751.10 | 100.000 |
Robert M. Gates | ||
Affirmative | 767,532,295.68 | 92.618 |
Withheld | 61,177,455.42 | 7.382 |
TOTAL | 828,709,751.10 | 100.000 |
# of | % of | |
George H. Heilmeier | ||
Affirmative | 766,078,246.56 | 92.442 |
Withheld | 62,631,504.54 | 7.558 |
TOTAL | 828,709,751.10 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 765,060,384.36 | 92.319 |
Withheld | 63,649,366.74 | 7.681 |
TOTAL | 828,709,751.10 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 764,319,910.03 | 92.230 |
Withheld | 64,389,841.07 | 7.770 |
TOTAL | 828,709,751.10 | 100.000 |
Donald J. Kirk | ||
Affirmative | 765,953,858.04 | 92.427 |
Withheld | 62,755,893.06 | 7.573 |
TOTAL | 828,709,751.10 | 100.000 |
Marie L. Knowles | ||
Affirmative | 767,230,609.26 | 92.581 |
Withheld | 61,479,141.84 | 7.419 |
TOTAL | 828,709,751.10 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 767,065,754.21 | 92.561 |
Withheld | 61,643,996.89 | 7.439 |
TOTAL | 828,709,751.10 | 100.000 |
Marvin L. Mann | ||
Affirmative | 765,939,293.51 | 92.426 |
Withheld | 62,770,457.59 | 7.574 |
TOTAL | 828,709,751.10 | 100.000 |
William O. McCoy | ||
Affirmative | 765,995,462.29 | 92.432 |
Withheld | 62,714,288.81 | 7.568 |
TOTAL | 828,709,751.10 | 100.000 |
# of | % of | |
Robert L. Reynolds | ||
Affirmative | 767,275,847.55 | 92.587 |
Withheld | 61,433,903.55 | 7.413 |
TOTAL | 828,709,751.10 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 766,682,881.97 | 92.515 |
Withheld | 62,026,869.13 | 7.485 |
TOTAL | 828,709,751.10 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Annual Report
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Spartan®
Short-Intermediate
Municipal Income
Fund
Annual Report
December 31, 2004
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Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
Proxy Voting Results |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
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Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of Spartan Short-Intermediate Municipal Income's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2004 | Past 1 | Past 5 | Past 10 |
Spartan® Short-Intermediate Municipal Income | 1.82% | 4.62% | 4.71% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Spartan® Short-Intermediate Municipal Income on December 31, 1994. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Mark Sommer, Portfolio Manager of Spartan® Short-Intermediate Municipal Income Fund
Despite persistent inflation concerns and the Federal Reserve Board raising interest rates multiple times in the second half of the year, the municipal bond market registered positive performance for the year ending December 31, 2004. In that time, the Lehman Brothers® Municipal Bond Index rose 4.48%. In comparison, the Lehman Brothers Aggregate Bond Index - a proxy of the overall investment-grade taxable debt market - returned 4.34%. This marks the second consecutive year in which tax-free munis outperformed taxable bonds on an absolute basis. Demand for munis generally was strong in 2004, except for a rough patch in the spring when strong labor markets fueled expectations of rising inflation. Shortly thereafter, the Fed began a series of five 0.25 percentage-point interest rate hikes between June 30 and December 14. While munis typically don't react well to such actions, they responded with positive returns in each of the year's final six months, partly due to reassurances by the Fed that it intended to raise rates in a "measured fashion."
For the 12 months ending December 31, 2004, Spartan Short-Intermediate Municipal Income returned 1.82%. During the same period, the LipperSM Short-Intermediate Municipal Debt Funds Average returned 1.63% and the Lehman Brothers 1-6 Year Municipal Bond Index returned 2.04%. Short-intermediate municipal bond prices came under some pressure as short-term interest rates and bond yields moved higher. In this environment, I believe my approach to managing the fund's interest rate sensitivity - - which involved keeping it in line with the Lehman Brothers index - helped performance given that both the fund and the index had less interest rate sensitivity than the Lipper peer group average. Also aiding performance was our stake in lower-quality investment-grade muni bonds, which performed quite well as investors sought out their high yields, which in turn helped cushion their prices from rising interest rates. However, my decision to avoid non-investment-grade muni bonds likely detracted from performance because they generally outpaced higher-quality munis. Throughout the period, I kept the fund's investments tilted toward bonds issued from states that don't give their own bonds preferential tax treatment, as these securities tended to be more attractively valued. Specifically, I preferred bonds issued in states such as Texas, where there's no state income tax, and Illinois, where all bonds are subject to Illinois state income tax.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover 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, 2004 to December 31, 2004).
Actual Expenses
The first line of the table below for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,022.00 | $ 3.25 |
HypotheticalA | $ 1,000.00 | $ 1,021.92 | $ 3.25 |
Class T | |||
Actual | $ 1,000.00 | $ 1,020.50 | $ 3.81 |
HypotheticalA | $ 1,000.00 | $ 1,021.37 | $ 3.81 |
Beginning | Ending | Expenses Paid | |
Class B | |||
Actual | $ 1,000.00 | $ 1,018.20 | $ 7.05 |
HypotheticalA | $ 1,000.00 | $ 1,018.15 | $ 7.05 |
Class C | |||
Actual | $ 1,000.00 | $ 1,017.60 | $ 7.66 |
HypotheticalA | $ 1,000.00 | $ 1,017.55 | $ 7.66 |
Spartan Short-Intermediate Municipal Income | |||
Actual | $ 1,000.00 | $ 1,022.90 | $ 2.44 |
HypotheticalA | $ 1,000.00 | $ 1,022.72 | $ 2.44 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,022.90 | $ 2.44 |
HypotheticalA | $ 1,000.00 | $ 1,022.72 | $ 2.44 |
A 5% return per year before expenses
*Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Annualized | |
Class A | .64% |
Class T | .75% |
Class B | 1.39% |
Class C | 1.51% |
Spartan Short-Intermediate Municipal Income | .48% |
Institutional Class | .48% |
Annual Report
Investment Changes
Top Five States as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
Texas | 13.6 | 12.6 |
Illinois | 9.7 | 8.8 |
California | 8.2 | 8.5 |
New York | 6.9 | 7.6 |
Washington | 6.3 | 8.6 |
Top Five Sectors as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
General Obligations | 47.3 | 43.2 |
Electric Utilities | 14.3 | 15.5 |
Escrowed/Pre-Refunded | 9.5 | 10.3 |
Transportation | 7.1 | 7.1 |
Health Care | 5.9 | 6.7 |
Average Years to Maturity as of December 31, 2004 | ||
6 months ago | ||
Years | 3.3 | 3.2 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2004 | ||
6 months ago | ||
Years | 3.0 | 2.8 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2004 | As of June 30, 2004 | ||||||
![]() | AAA 61.3% | ![]() | AAA 59.6% | ||||
![]() | AA,A 32.9% | ![]() | AA,A 31.7% | ||||
![]() | BBB 5.8% | ![]() | BBB 6.4% | ||||
![]() | BB and Below 0.0% | ![]() | BB and Below 0.3% | ||||
![]() | Not Rated 1.9% | ![]() | Not Rated 1.5% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
* Short-Term Investments and Net Other Assets are not included in the pie chart.
Annual Report
Investments December 31, 2004
Showing Percentage of Net Assets
Municipal Bonds - 101.9% | |||||
Principal | Value (Note 1) | ||||
Alabama - 2.5% | |||||
Alabama Agric. & Mechanical Univ. Revs. 6.5% 11/1/25 (Pre-Refunded to 11/1/05 @ 102) (f) | $ 2,000 | $ 2,112 | |||
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev.: | |||||
5.25% 10/1/07 (MBIA Insured) (e) | 1,750 | 1,853 | |||
5.25% 10/1/08 (MBIA Insured) (e) | 2,900 | 3,113 | |||
5.75% 10/1/09 (MBIA Insured) (e) | 4,000 | 4,406 | |||
Jefferson County Gen. Oblig. Series 2003 A, 5% 4/1/07 (MBIA Insured) | 3,000 | 3,174 | |||
Jefferson County Ltd. Oblig. School Warrants Series A, 5% 1/1/07 | 2,210 | 2,310 | |||
Jefferson County Swr. Rev.: | |||||
Series 1999 A, 5.75% 2/1/38 (Pre-Refunded to 2/1/09 @ 101) (f) | 5,000 | 5,675 | |||
Series A: | |||||
5% 2/1/33 (Pre-Refunded to 2/1/09 @ 101) (f) | 13,460 | 14,805 | |||
5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (f) | 3,900 | 4,470 | |||
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (f) | 2,025 | 2,240 | |||
Mobile County Gen. Oblig.: | |||||
5% 2/1/07 (MBIA Insured) | 1,000 | 1,054 | |||
5% 2/1/08 (MBIA Insured) | 1,475 | 1,589 | |||
46,801 | |||||
Alaska - 1.6% | |||||
Alaska Student Ln. Corp. Student Ln. Rev. Series A: | |||||
5.15% 7/1/05 (AMBAC Insured) (e) | 1,950 | 1,980 | |||
5.85% 7/1/13 (AMBAC Insured) (e) | 3,285 | 3,616 | |||
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 | 2,500 | 2,880 | |||
North Slope Borough Gen. Oblig.: | |||||
Series 1996 B, 0% 6/30/07 (MBIA Insured) | 3,100 | 2,895 | |||
Series A, 0% 6/30/07 (MBIA Insured) | 5,000 | 4,669 | |||
Series B: | |||||
0% 6/30/06 (MBIA Insured) | 3,500 | 3,378 | |||
0% 6/30/07 (MBIA Insured) | 7,050 | 6,584 | |||
0% 6/30/08 (MBIA Insured) | 4,240 | 3,834 | |||
29,836 | |||||
Arizona - 0.9% | |||||
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured) | 1,115 | 1,221 | |||
Maricopa County Unified School District #48 Scottsdale 7.4% 7/1/10 | 3,750 | 4,562 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Arizona - continued | |||||
Pima County Unified School District #1 Tucson 7.5% 7/1/08 (FGIC Insured) | $ 7,060 | $ 8,220 | |||
Salt River Proj. Agric. Impt. & Pwr. District Elec. Sys. Rev. Series B, 7% 1/1/05 | 760 | 760 | |||
Tucson Wtr. Rev. Series 2002, 5.5% 7/1/06 (FGIC Insured) | 980 | 1,027 | |||
Univ. of Arizona Ctfs. of Prtn. (Univ. of Arizona Parking & Student Hsg. Proj.) Series A, 5% 6/1/09 (AMBAC Insured) | 2,000 | 2,185 | |||
17,975 | |||||
Arkansas - 0.3% | |||||
Arkansas Dev. Fin. Auth. Wastewtr. Sys. Rev. | 1,060 | 1,086 | |||
Little Rock Gen. Oblig. 4% 4/1/07 (FSA Insured) | 1,000 | 1,037 | |||
Rogers Sales & Use Tax Rev. Series A: | |||||
4.25% 9/1/06 (FGIC Insured) | 1,000 | 1,032 | |||
4.25% 9/1/07 (FGIC Insured) | 2,175 | 2,280 | |||
5,435 | |||||
California - 8.2% | |||||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A: | |||||
5.25% 5/1/07 (MBIA Insured) | 27,455 | 29,269 | |||
5.25% 5/1/10 (MBIA Insured) | 1,200 | 1,342 | |||
California Gen. Oblig.: | |||||
5% 2/1/09 | 1,640 | 1,779 | |||
5% 2/1/10 | 2,000 | 2,185 | |||
5% 12/1/11 (MBIA Insured) | 8,000 | 8,933 | |||
5.125% 9/1/12 | 1,000 | 1,088 | |||
5.25% 2/1/10 (FSA Insured) | 7,265 | 8,105 | |||
5.25% 2/1/11 | 5,775 | 6,403 | |||
5.5% 3/1/11 (FGIC Insured) | 3,210 | 3,646 | |||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,525 | 3,994 | |||
5.75% 10/1/08 | 1,085 | 1,206 | |||
6.4% 9/1/08 | 3,075 | 3,473 | |||
6.5% 9/1/10 | 1,740 | 2,033 | |||
8% 11/1/07 (FGIC Insured) | 7,000 | 7,675 | |||
California Poll. Cont. Fing. Auth. Ctfs. of Prtn. (Pacific Gas & Elec. Co. Proj.) Series 2004 B, 3.5%, tender 6/1/07 (FGIC Insured) (c)(e) | 15,000 | 15,169 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
California - continued | |||||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series A, 3.125%, tender 5/1/06 (c)(e) | $ 5,000 | $ 4,978 | |||
California Pub. Works Board Lease Rev.: | |||||
(California State Univ. Proj.) Series 1997 A, 5.5% 10/1/07 | 1,075 | 1,157 | |||
(Coalinga State Hosp. Proj.) Series 2004 A: | |||||
5% 6/1/07 | 4,000 | 4,219 | |||
5% 6/1/08 | 6,000 | 6,434 | |||
California Statewide Cmntys. Dev. Auth. Rev.: | |||||
(Kaiser Fund Hosp./Health Place, Inc. Proj.) | 10,000 | 10,060 | |||
(Kaiser Permanente Health Sys. Proj.) Series 2004 G, 2.3%, tender 5/1/07 (c) | 8,000 | 7,941 | |||
Commerce Refuse To Energy Auth. Rev.: | |||||
5% 7/1/07 (MBIA Insured) (b) | 1,770 | 1,839 | |||
5.25% 7/1/08 (MBIA Insured) (b) | 855 | 907 | |||
Golden State Tobacco Securitization Corp. Series 2003 B, 5% 6/1/08 | 1,300 | 1,384 | |||
Long Beach Hbr. Rev. Series 2000 A: | |||||
5.5% 5/15/05 (e) | 3,490 | 3,529 | |||
5.5% 5/15/06 (e) | 3,000 | 3,116 | |||
Los Angeles Hbr. Dept. Rev. Series A, 5.5% 8/1/06 (AMBAC Insured) (e) | 1,495 | 1,567 | |||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured) | 3,600 | 2,775 | |||
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (g) | 8,955 | 9,390 | |||
155,596 | |||||
Colorado - 0.5% | |||||
Arapahoe County Cap. Impt. Trust Fund Hwy. Rev. | 4,500 | 3,681 | |||
E-470 Pub. Hwy. Auth. Rev. Series 2000 B: | |||||
0% 9/1/06 (Escrowed to Maturity) (f) | 2,200 | 2,111 | |||
0% 9/1/07 (Escrowed to Maturity) (f) | 3,200 | 2,977 | |||
8,769 | |||||
Connecticut - 0.7% | |||||
Connecticut Gen. Oblig. Series 2002 C, 5% 12/15/08 | 1,930 | 2,107 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Connecticut - continued | |||||
Connecticut Health & Edl. Facilities Auth. Rev. (Connecticut Children's Med. Ctr. Proj.) Series B: | |||||
4% 7/1/07 (MBIA Insured) | $ 1,275 | $ 1,324 | |||
4.5% 7/1/08 (MBIA Insured) | 1,045 | 1,113 | |||
5% 7/1/09 (MBIA Insured) | 1,000 | 1,093 | |||
Connecticut Spl. Oblig. Series 2004 A: | |||||
4% 12/30/05 | 3,205 | 3,264 | |||
5% 12/30/07 | 4,535 | 4,874 | |||
13,775 | |||||
District Of Columbia - 1.9% | |||||
District of Columbia Ctfs. of Prtn.: | |||||
(District's Pub. Safety and Emergency Preparedness Communications Ctr. and Related Technology Proj.) Series 2003, 3% 1/1/06 (AMBAC Insured) | 1,305 | 1,315 | |||
5% 1/1/06 (AMBAC Insured) | 1,000 | 1,027 | |||
5% 1/1/07 (AMBAC Insured) | 1,000 | 1,049 | |||
5.25% 1/1/08 (AMBAC Insured) | 935 | 1,009 | |||
District of Columbia Gen. Oblig.: | |||||
Series 1993 B2, 5.5% 6/1/07 (FSA Insured) | 1,830 | 1,958 | |||
Series 2001 B, 5.5% 6/1/07 (FSA Insured) | 1,345 | 1,439 | |||
Series A: | |||||
5% 6/1/06 | 3,480 | 3,602 | |||
5% 6/1/07 | 2,810 | 2,963 | |||
5.25% 6/1/09 (FSA Insured) | 1,000 | 1,101 | |||
District of Columbia Rev. (Medstar Univ. Hosp. Proj.) Series D, 6.875%, tender 2/16/07 (c)(f) | 9,000 | 9,854 | |||
Metropolitan Washington Arpts. Auth. Gen. Arpt. Rev. Series B, 5.5% 10/1/08 (FGIC Insured) (e) | 6,460 | 6,966 | |||
Metropolitan Washington Arpts. Auth. Sys. Rev. Series D: | |||||
4% 10/1/06 (FSA Insured) (e) | 1,750 | 1,795 | |||
4% 10/1/07 (FSA Insured) (e) | 1,000 | 1,033 | |||
35,111 | |||||
Florida - 6.2% | |||||
Brevard County Util. Rev. 5% 3/1/06 (FGIC Insured) | 530 | 547 | |||
Broward County School District Series A, 5% 2/15/08 | 5,810 | 6,256 | |||
Coral Gables Health Facilities Hosp. (Baptist Health South Florida Obligated Group Proj.) 5% 8/15/06 | 1,000 | 1,039 | |||
Dade County School District: | |||||
5% 8/1/07 (MBIA Insured) | 1,500 | 1,599 | |||
5.2% 7/15/07 (AMBAC Insured) | 8,000 | 8,560 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Florida - continued | |||||
Florida Board of Ed. Lottery Rev. Series B: | |||||
6% 7/1/14 (FGIC Insured) | $ 500 | $ 575 | |||
6% 7/1/15 (FGIC Insured) | 1,200 | 1,379 | |||
Florida Dept. of Envir. Protection Preservation Rev. | 19,020 | 20,246 | |||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt Obligated Group Proj.) 3.35%, tender 9/1/05 (c) | 20,300 | 20,441 | |||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.): | |||||
4%, tender 8/1/07 (c) | 11,000 | 11,229 | |||
4.25%, tender 8/1/07 (c)(e) | 6,000 | 6,124 | |||
Indian River County School District 4% 4/1/06 (FSA Insured) | 1,470 | 1,503 | |||
Miami-Dade County Cap. Asset Acquisition Fixed Rate Spl. Oblig. Series 2002 A: | |||||
5% 4/1/06 (AMBAC Insured) | 3,365 | 3,481 | |||
5% 4/1/08 (AMBAC Insured) | 2,825 | 3,052 | |||
Miami-Dade County School Board Ctfs. of Prtn. 5%, tender 5/1/11 (MBIA Insured) (c) | 1,500 | 1,635 | |||
Miami-Dade County School District Series 1994 A, 5.65% 6/1/06 (MBIA Insured) | 1,545 | 1,617 | |||
Orlando Utils. Commission Util. Sys. Rev. 5.25% 7/1/09 | 6,000 | 6,635 | |||
Palm Beach County Rev. (Cmnty. Foundation Palm Beach Proj.) 2%, tender 9/1/05, LOC Northern Trust Co., Chicago (c) | 2,910 | 2,908 | |||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev. 5.75% 4/1/06 (AMBAC Insured) (e) | 1,500 | 1,558 | |||
Polk County Cap. Impt. Rev. Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c) | 9,000 | 10,024 | |||
Seminole County School Board Ctfs. of Prtn. Series A: | |||||
4.5% 7/1/06 (MBIA Insured) (b) | 1,150 | 1,177 | |||
4.5% 7/1/08 (MBIA Insured) (b) | 1,250 | 1,317 | |||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. | 2,000 | 1,996 | |||
Volusia County School Board Ctfs. of Prtn. (School Board of Volusia County Master Lease Prog.) 4.5% 8/1/07 (FSA Insured) (b) | 2,135 | 2,223 | |||
117,121 | |||||
Georgia - 1.3% | |||||
Atlanta Arpt. Facilities Rev. 6.5% 1/1/06 (Escrowed to Maturity) (f) | 6,000 | 6,249 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Georgia - continued | |||||
Columbia County Gen. Oblig. 5% 1/1/09 (FSA Insured) | $ 1,505 | $ 1,641 | |||
Fulton DeKalb Hosp. Auth. Hosp. Rev. 5% 1/1/08 (FSA Insured) | 2,250 | 2,415 | |||
Georgia Gen. Oblig.: | |||||
Series B, 6.25% 4/1/06 | 1,750 | 1,837 | |||
Series C, 6.5% 7/1/07 | 2,185 | 2,406 | |||
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1993 CC, 4.8% 1/1/06 (MBIA Insured) | 7,100 | 7,281 | |||
Gwinnett County Gen. Oblig. 4% 1/1/06 | 1,035 | 1,054 | |||
Henry County Wtr. & Swr. Auth. Rev. 5% 2/1/08 (MBIA Insured) | 1,095 | 1,181 | |||
24,064 | |||||
Hawaii - 2.3% | |||||
Hawaii Arpts. Sys. Rev. Series 2000 B, 8% 7/1/10 (FGIC Insured) (e) | 3,850 | 4,700 | |||
Hawaii Gen. Oblig.: | |||||
Series CS, 5% 4/1/08 (MBIA Insured) | 2,200 | 2,374 | |||
Series CU, 5.75% 10/1/11 (MBIA Insured) | 3,210 | 3,643 | |||
Honolulu City & County Gen. Oblig. Series B, 8% 10/1/09 | 26,940 | 33,021 | |||
43,738 | |||||
Illinois - 9.7% | |||||
Chicago Gen. Oblig.: | |||||
(Neighborhoods Alive 21 Prog.): | |||||
5% 1/1/07 (MBIA Insured) | 1,360 | 1,430 | |||
5% 1/1/08 (MBIA Insured) | 1,190 | 1,279 | |||
Series A, 5.25% 1/1/12 (FSA Insured) | 1,000 | 1,119 | |||
5% 1/1/07 (FGIC Insured) | 1,000 | 1,052 | |||
Chicago Midway Arpt. Rev.: | |||||
Series 2001 B, 5% 1/1/07 (FSA Insured) | 1,000 | 1,051 | |||
Series B: | |||||
5% 1/1/10 (AMBAC Insured) | 1,225 | 1,334 | |||
5% 1/1/11 (AMBAC Insured) | 3,625 | 3,955 | |||
Chicago O'Hare Int'l. Arpt. Rev.: | |||||
Series 2001 C, 5% 1/1/07 (AMBAC Insured) (e) | 2,670 | 2,793 | |||
Series A, 5.5% 1/1/08 (AMBAC Insured) | 5,000 | 5,253 | |||
5.5% 1/1/10 (AMBAC Insured) (e) | 5,000 | 5,464 | |||
Chicago Park District: | |||||
Series B, 5% 1/1/11 (AMBAC Insured) | 5,750 | 6,326 | |||
Series C, 5% 1/1/11 (AMBAC Insured) | 2,515 | 2,767 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Illinois - continued | |||||
Chicago School Fin. Auth. Series B, 5% 6/1/09 (FSA Insured) | $ 12,825 | $ 14,003 | |||
Chicago Tax Increment Rev.: | |||||
Series 2000 A, 0% 12/1/08 (AMBAC Insured) | 10,000 | 8,919 | |||
Series A, 0% 12/1/05 (AMBAC Insured) | 3,000 | 2,941 | |||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | |||||
(Fed. Transit Administration Section 5307 Formula Funds Proj.) Series A, 5.25% 6/1/10 (AMBAC Insured) | 4,785 | 5,311 | |||
Series A: | |||||
4% 6/1/06 (AMBAC Insured) | 1,050 | 1,055 | |||
4.25% 6/1/08 (AMBAC Insured) | 3,600 | 3,702 | |||
Chicago Wastewtr. Transmission Rev. 5.5% 1/1/09 (FGIC Insured) | 2,975 | 3,292 | |||
Cook County Cmnty. College District #508 Ctfs. of Prtn. 8.75% 1/1/07 (FGIC Insured) | 8,000 | 8,984 | |||
Du Page Wtr. Commission Wtr. Rev. 5% 5/1/08 (AMBAC Insured) | 4,525 | 4,876 | |||
Illinois Dev. Fin. Auth. Gas Supply Rev. (The Peoples Gas Lt. & Coke Co. Proj.) Series 2003 B, 3.05%, tender 2/1/08 (AMBAC Insured) (c) | 6,100 | 6,158 | |||
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) | 1,900 | 2,098 | |||
Illinois Edl. Facilities Auth. Revs.: | |||||
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c) | 12,800 | 12,827 | |||
(Univ. of Chicago Proj.): | |||||
Series 2004 B1, 3.45%, tender 7/1/08 (c) | 6,100 | 6,241 | |||
Series B, 3.1%, tender 7/1/07 (c) | 3,900 | 3,946 | |||
5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (f) | 2,640 | 2,983 | |||
Illinois Fin. Auth. Solid Waste Rev. (Republic Services, Inc. Proj.) 3.65%, tender 5/1/07 (c)(e) | 6,100 | 6,139 | |||
Illinois Gen. Oblig.: | |||||
First Series: | |||||
5% 8/1/06 | 8,160 | 8,499 | |||
5.25% 4/1/08 (MBIA Insured) | 1,035 | 1,124 | |||
5.25% 4/1/10 (MBIA Insured) | 2,600 | 2,886 | |||
5.5% 8/1/10 | 1,415 | 1,588 | |||
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (f) | 7,075 | 8,129 | |||
Series A, 5% 10/1/09 | 2,600 | 2,847 | |||
5% 6/1/07 | 6,265 | 6,639 | |||
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (f) | 1,000 | 1,144 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Illinois - continued | |||||
Illinois Health Facilities Auth. Rev. (Condell Med. Ctr. Proj.): | |||||
5% 5/15/07 | $ 500 | $ 518 | |||
5% 5/15/08 | 700 | 727 | |||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 (FSA Insured) | 2,270 | 2,575 | |||
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (FGIC Insured) | 1,600 | 1,831 | |||
Kane, McHenry, Cook & DeKalb Counties Cmnty. Unit School District #300, Carpentersville 5.5% 12/1/13 (MBIA Insured) | 5,000 | 5,631 | |||
Kendall, Kane & Will Counties Cmnty. Unit School District #308: | |||||
5.25% 10/1/05 (FGIC Insured) | 560 | 573 | |||
5.25% 10/1/06 (FGIC Insured) | 695 | 730 | |||
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11 | 2,365 | 2,598 | |||
Rosemont Gen. Oblig. Series 3: | |||||
0% 12/1/07 (Escrowed to Maturity) (f) | 2,375 | 2,202 | |||
0% 12/1/07 (FGIC Insured) | 625 | 576 | |||
Univ. of Illinois Auxiliary Facilities Sys. Rev. Series 2001 A, 5% 4/1/08 (AMBAC Insured) | 2,035 | 2,193 | |||
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Projs.) 5% 8/15/11 (AMBAC Insured) | 1,360 | 1,501 | |||
Will County School District #122 Series B, 0% 11/1/08 (FSA Insured) | 1,500 | 1,342 | |||
183,151 | |||||
Indiana - 1.6% | |||||
Hamilton Southeastern Consolidated School Bldg. Corp.: | |||||
5% 1/15/10 (FSA Insured) | 1,835 | 2,006 | |||
5% 1/15/11 (FSA Insured) | 1,910 | 2,096 | |||
5% 1/15/12 (FSA Insured) | 1,990 | 2,191 | |||
Indiana Health Facility Fing. Auth. Rev. (Ascension Health Cr. Group Prog.) Series 2002 F: | |||||
5.5% 11/15/05 | 1,000 | 1,029 | |||
5.5% 11/15/06 | 1,000 | 1,054 | |||
Indianapolis Local Pub. Impt. Bond Bank (Indianapolis Arpt. Auth. Proj.) Series I: | |||||
4% 1/1/06 (MBIA Insured) (e) | 1,325 | 1,343 | |||
5% 1/1/08 (MBIA Insured) (e) | 1,550 | 1,644 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Indiana - continued | |||||
Indianapolis Resource Recovery Rev. (Ogden Martin Sys., Inc. Proj.) 6.75% 12/1/07 (AMBAC Insured) | $ 3,000 | $ 3,304 | |||
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured) | 1,405 | 1,536 | |||
Rockport Poll. Cont. Rev. 4.9%, tender 6/1/07 (c) | 4,000 | 4,159 | |||
Saint Joseph County Ind. Edl. Facilities Rev. (Univ. of Notre Dame Du Lac Proj.) 2.5%, tender 12/3/07 (c) | 10,000 | 9,958 | |||
30,320 | |||||
Kansas - 0.5% | |||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.): | |||||
Series A, 4.75%, tender 10/1/07 (c) | 2,400 | 2,511 | |||
Series C, 2.38%, tender 9/1/05 (c) | 4,000 | 3,985 | |||
La Cygne Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.) Series 1994, 2.25%, tender 9/1/05 (c) | 2,500 | 2,491 | |||
8,987 | |||||
Kentucky - 0.7% | |||||
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (e) | 1,185 | 1,271 | |||
Owensboro Elec. Lt. & Pwr. Rev. Series B: | |||||
0% 1/1/07 (AMBAC Insured) | 10,000 | 9,490 | |||
0% 1/1/09 (AMBAC Insured) | 2,000 | 1,779 | |||
12,540 | |||||
Louisiana - 0.2% | |||||
New Orleans Gen. Oblig. 5% 3/1/07 (MBIA Insured) | 3,100 | 3,263 | |||
Maryland - 0.8% | |||||
Baltimore Gen. Oblig. Series A, 5.5% 10/15/18 | 1,700 | 1,959 | |||
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured) | 1,535 | 1,702 | |||
Prince Georges County Gen. Oblig.: | |||||
Series 2004 C, 5% 12/1/10 | 3,770 | 4,191 | |||
Series 2004 D, 5% 12/1/11 | 5,830 | 6,464 | |||
14,316 | |||||
Massachusetts - 5.0% | |||||
Massachusetts Bay Trans. Auth. Series A, 7% 3/1/09 | 6,880 | 8,018 | |||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C: | |||||
5.75% 8/1/06 | 1,200 | 1,251 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Massachusetts - continued | |||||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C: - continued | |||||
5.875% 8/1/08 | $ 1,630 | $ 1,778 | |||
Massachusetts Fed. Hwy. Series 2000 A, 5.75% 6/15/13 | 3,000 | 3,380 | |||
Massachusetts Gen. Oblig.: | |||||
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (f) | 2,570 | 2,916 | |||
Series 2001 A, 5.5% 1/1/11 | 5,000 | 5,628 | |||
Series 2002 B, 5% 2/1/06 | 40,000 | 41,181 | |||
Series 2003 A, 5.375% 8/1/08 | 5,165 | 5,660 | |||
Series 2003 C: | |||||
5% 12/1/06 (XL Cap. Assurance, Inc. Insured) | 1,900 | 1,994 | |||
5.5% 10/1/10 (MBIA Insured) | 1,130 | 1,276 | |||
Series A: | |||||
4.5% 1/1/09 (Pre-Refunded to 1/1/08 @ 101) (f) | 2,055 | 2,193 | |||
5.5% 2/1/07 (MBIA Insured) | 7,500 | 7,978 | |||
Series C, 5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (f) | 2,495 | 2,793 | |||
Massachusetts Health & Edl. Facilities Auth. Rev.: | |||||
(Caritas Christi Oblig. Group Proj.) 5.5% 7/1/05 | 1,000 | 1,006 | |||
(Dana Farber Cancer Proj.) Series G1, 6.25% 12/1/14 (Pre-Refunded to 12/1/05 @ 102) (f) | 3,000 | 3,170 | |||
New England Ed. Ln. Marketing Corp. Series A, 5.7% 7/1/05 (e) | 2,800 | 2,848 | |||
Springfield Gen. Oblig. 5% 1/15/06 (MBIA Insured) | 1,000 | 1,029 | |||
94,099 | |||||
Michigan - 3.6% | |||||
Battle Creek Downtown Dev. Auth. 6% 5/1/06 (MBIA Insured) | 2,000 | 2,101 | |||
Chippewa Valley Schools: | |||||
4% 5/1/06 | 1,000 | 1,023 | |||
4% 5/1/07 | 2,610 | 2,704 | |||
5% 5/1/08 | 1,260 | 1,360 | |||
Detroit City School District 5.05% 5/1/06 | 4,845 | 5,016 | |||
Detroit Gen. Oblig.: | |||||
Series 2004 A, 5% 4/1/08 (FSA Insured) | 7,275 | 7,835 | |||
Series 2004 B, 5% 4/1/07 (FSA Insured) | 4,055 | 4,292 | |||
Series A: | |||||
5% 4/1/06 (FSA Insured) (b) | 2,200 | 2,266 | |||
5% 4/1/07 (FSA Insured) (b) | 6,910 | 7,290 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Michigan - continued | |||||
Detroit Gen. Oblig.: - continued | |||||
5% 4/1/08 (MBIA Insured) | $ 14,545 | $ 15,664 | |||
5% 4/1/09 (MBIA Insured) | 10,620 | 11,583 | |||
Detroit Swr. Disp. Rev. Series A, 5.75% 7/1/26 | 2,000 | 2,292 | |||
Ferndale Gen. Oblig. 3.5% 4/1/06 (FGIC Insured) | 1,960 | 1,990 | |||
Hazel Park School District 5% 5/1/08 | 1,275 | 1,376 | |||
Wayne-Westland Cmnty. Schools 5% 5/1/10 (FSA Insured) | 1,225 | 1,345 | |||
68,137 | |||||
Minnesota - 0.7% | |||||
Hopkins Independent School District #270 Series B, 4% 2/1/06 | 2,575 | 2,625 | |||
Mankato Independent School District #77 Series A, 4% 2/1/06 (FSA Insured) | 1,420 | 1,448 | |||
Metropolitan Council Minneapolis-Saint Paul Metropolitan Area Series 2005 A, 5% 9/1/06 (b) | 2,340 | 2,413 | |||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): | |||||
5.25% 12/1/08 | 1,200 | 1,280 | |||
5.25% 12/1/10 | 500 | 533 | |||
Minnesota Pub. Facilities Auth. Wtr. Poll. Cont. Rev. Series A, 4.5% 3/1/07 | 2,240 | 2,346 | |||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. 5% 1/1/08 (AMBAC Insured) | 2,410 | 2,592 | |||
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured) | 940 | 1,039 | |||
14,276 | |||||
Mississippi - 0.5% | |||||
Jackson Wtr. & Swr. Sys. Rev. Series 2003, 5% 9/1/07 (FSA Insured) | 5,825 | 6,203 | |||
Mississippi Gen. Oblig. 5.25% 9/1/07 | 1,750 | 1,877 | |||
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (e) | 1,190 | 1,271 | |||
9,351 | |||||
Missouri - 0.6% | |||||
Kansas City School District Bldg. Corp. Rev.: | |||||
(School District Elementary School Proj.): | |||||
Series 2003 B, 5% 2/1/12 (FGIC Insured) | 3,100 | 3,424 | |||
Series B, 5% 2/1/11 (FGIC Insured) | 1,850 | 2,030 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Missouri - continued | |||||
Kansas City School District Bldg. Corp. Rev.: - continued | |||||
Series A: | |||||
5% 2/1/07 (FGIC Insured) | $ 1,020 | $ 1,075 | |||
5% 2/1/08 (FGIC Insured) | 2,000 | 2,144 | |||
Saint Louis Muni. Fin. Corp. Leasehold Rev.: | |||||
(Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (FGIC Insured) | 1,050 | 1,193 | |||
(Civil Courts Bldg. Proj.) Series 2003 A, 5% 8/1/06 (FSA Insured) | 1,635 | 1,704 | |||
11,570 | |||||
Montana - 0.2% | |||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Projs.) Series A, 5.2%, tender 5/1/09 (c) | 2,900 | 3,085 | |||
Nebraska - 2.0% | |||||
Lancaster County School District #1 (Lincoln Pub. Schools Proj.) 4% 1/15/06 | 1,000 | 1,019 | |||
Nebraska Pub. Pwr. District Rev.: | |||||
Series 1998 A, 5.25% 1/1/06 (MBIA Insured) | 5,000 | 5,149 | |||
Series A: | |||||
0% 1/1/06 (MBIA Insured) | 24,465 | 23,946 | |||
0% 1/1/07 (MBIA Insured) | 4,000 | 3,803 | |||
Omaha Pub. Pwr. District Elec. Rev. Series B, 4.5% 2/1/09 | 3,500 | 3,753 | |||
37,670 | |||||
Nevada - 1.6% | |||||
Clark County Arpt. Rev. Series C: | |||||
5% 7/1/05 (AMBAC Insured) (e) | 800 | 811 | |||
5% 7/1/06 (AMBAC Insured) (e) | 800 | 831 | |||
5% 7/1/08 (AMBAC Insured) (e) | 2,215 | 2,371 | |||
5% 7/1/09 (AMBAC Insured) (e) | 2,700 | 2,910 | |||
5% 7/1/10 (AMBAC Insured) (e) | 1,225 | 1,322 | |||
5% 7/1/11 (AMBAC Insured) (e) | 1,790 | 1,935 | |||
Clark County School District: | |||||
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (f) | 1,600 | 1,831 | |||
Series C, 5% 6/15/10 (MBIA Insured) | 1,000 | 1,097 | |||
Series D, 5% 6/15/09 (MBIA Insured) | 13,890 | 15,207 | |||
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured) | 2,410 | 2,649 | |||
30,964 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New Jersey - 4.2% | |||||
Casino Reinvestment Dev. Auth. Hotel Room Fee Rev.: | |||||
5% 1/1/08 (AMBAC Insured) | $ 920 | $ 986 | |||
5% 1/1/09 (AMBAC Insured) | 1,000 | 1,085 | |||
Elizabeth Gen. Oblig. 5.25% 8/15/09 (MBIA Insured) (b) | 1,225 | 1,322 | |||
Garden State Preservation Trust Open Space & Farmland Preservation Series B, 6.25% 11/1/09 (MBIA Insured) (b) | 4,000 | 4,425 | |||
New Jersey Econ. Dev. Auth. Rev. 5% 6/15/07 | 7,500 | 7,889 | |||
New Jersey Economic Dev. Auth. Solid Waste Rev. (Waste Mgmt. of New Jersey, Inc. Proj.) Series 2004 A, 2.85%, tender 6/1/05 (c)(e) | 5,000 | 4,991 | |||
New Jersey Tpk. Auth. Tpk. Rev. Series 2004 A, 3.15%, tender 1/1/10 (AMBAC Insured) (c) | 16,250 | 16,310 | |||
New Jersey Trans. Trust Fund Auth.: | |||||
Series 2001 A, 5% 6/15/06 | 6,300 | 6,544 | |||
Series 2005 A, 5% 12/15/07 (MBIA Insured) (b) | 5,000 | 5,317 | |||
Series A, 5.25% 12/15/08 (MBIA Insured) (b) | 15,000 | 16,343 | |||
Series B, 5.25% 12/15/10 (FGIC Insured) | 4,550 | 5,090 | |||
New Jersey Transit Corp. Series 2000 B, 5.5% 2/1/08 (AMBAC Insured) | 1,000 | 1,089 | |||
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (f) | 7,000 | 8,002 | |||
79,393 | |||||
New Jersey/Pennsylvania - 0.3% | |||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5% 7/1/09 | 5,170 | 5,581 | |||
New Mexico - 1.8% | |||||
Farmington Poll. Cont. Rev. (Pub. Svc. Co. of New Mexico San Juan and Four Corners Projs.) | 7,000 | 6,935 | |||
San Juan County Gross Receipts Tax Rev. Series B, 2.5% 8/15/05 | 13,600 | 13,624 | |||
Sandoval Co. Incentive Payment Rev. 4.25% 12/1/06 | 13,750 | 14,139 | |||
34,698 | |||||
New York - 6.9% | |||||
Grand Central District Mgmt. Assoc., Inc.: | |||||
5% 1/1/10 | 1,200 | 1,303 | |||
5% 1/1/12 | 1,175 | 1,286 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New York - continued | |||||
Metropolitan Trans. Auth. Commuter Facilities Rev. Series A: | |||||
5% 7/1/06 (Escrowed to Maturity) (f) | $ 270 | $ 281 | |||
5.375% 7/1/09 (Escrowed to Maturity) (f) | 3,635 | 4,071 | |||
Metropolitan Trans. Auth. Svc. Contract Rev. Series B, 5% 1/1/06 | 10,110 | 10,387 | |||
Nassau County Gen. Oblig. Series Z: | |||||
5% 9/1/11 (FGIC Insured) | 800 | 869 | |||
5% 9/1/12 (FGIC Insured) | 1,500 | 1,667 | |||
New York City Gen. Oblig.: | |||||
Series 2000 A, 6.5% 5/15/11 | 2,450 | 2,837 | |||
Series 2004 G, 5% 8/1/09 | 8,000 | 8,679 | |||
Series A, 5.25% 11/1/14 (MBIA Insured) | 600 | 664 | |||
Series E, 6% 8/1/11 | 60 | 64 | |||
Series G, 5.25% 8/1/14 (AMBAC Insured) | 1,000 | 1,100 | |||
Series H, 5.75% 3/15/11 (FGIC Insured) | 1,700 | 1,937 | |||
New York State Dorm. Auth. Revs.: | |||||
(City Univ. Sys. Consolidation Proj.): | |||||
Series 2000 A, 6.125% 7/1/12 (AMBAC Insured) | 5,540 | 6,393 | |||
Series A, 5.75% 7/1/13 | 3,500 | 3,959 | |||
Series 2003 A: | |||||
5% 1/1/06 | 1,250 | 1,284 | |||
5% 1/1/07 | 10,855 | 11,387 | |||
5% 3/15/08 | 2,000 | 2,151 | |||
New York State Urban Dev. Corp. Rev. (Correctional Facilities-Svc. Contract Proj.) Series B, 4.75% 1/1/28 (Pre-Refunded to 1/1/09 @ 101) (f) | 2,615 | 2,868 | |||
New York Transitional Fin. Auth. Rev. Series 2003 E: | |||||
4.5% 2/1/07 | 1,750 | 1,828 | |||
4.5% 2/1/08 | 1,500 | 1,594 | |||
5% 2/1/09 | 2,035 | 2,218 | |||
Tobacco Settlement Fing. Corp.: | |||||
Series 2004 B1, 5% 6/1/09 | 3,800 | 4,085 | |||
Series A1: | |||||
5.25% 6/1/12 | 5,000 | 5,183 | |||
5.25% 6/1/13 | 17,500 | 18,666 | |||
Series B1, 5% 6/1/06 | 17,815 | 18,398 | |||
Triborough Bridge & Tunnel Auth. Revs.: | |||||
Series A, 5.5% 1/1/14 (Pre-Refunded to 1/1/12 | 3,745 | 4,296 | |||
Series Y, 5.9% 1/1/08 (Escrowed to Maturity) (f) | 10,000 | 11,025 | |||
130,480 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New York & New Jersey - 0.3% | |||||
Port Auth. of New York & New Jersey: | |||||
124th Series, 5% 8/1/13 (FGIC Insured) (e) | $ 1,200 | $ 1,264 | |||
127th Series, 5% 12/15/08 (AMBAC Insured) (e) | 3,510 | 3,764 | |||
5,028 | |||||
North Carolina - 1.3% | |||||
Charlotte Ctfs. of Prtn. (FY 2004 Equip. Acquisition Proj.) Series 2004 C, 4% 3/1/08 | 4,940 | 5,171 | |||
North Carolina Ctfs. of Prtn. (Repair and Renovation Proj.) Series 2004 B, 4% 6/1/06 | 1,300 | 1,333 | |||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | |||||
Series 1993 B, 7% 1/1/08 (MBIA Insured) | 1,500 | 1,693 | |||
Series A, 5.5% 1/1/10 | 3,000 | 3,262 | |||
Series B: | |||||
6% 1/1/05 | 2,000 | 2,000 | |||
6% 1/1/06 | 5,995 | 6,190 | |||
Series C, 5% 1/1/08 | 1,190 | 1,259 | |||
Series D, 5.375% 1/1/10 | 3,715 | 4,019 | |||
24,927 | |||||
Ohio - 2.0% | |||||
Cleveland Pub. Pwr. Sys. Rev. (First Mtg. Prog.) | 2,250 | 1,930 | |||
Franklin County Rev. (OCLC Online Computer Library Ctr., Inc. Proj.) 5% 4/15/07 | 1,960 | 2,046 | |||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.) 5.5% 2/15/07 | 1,420 | 1,498 | |||
Ohio Air Quality Dev. Auth. Rev. (Pennsylvania Pwr. Co. Proj.) 3.375%, tender 7/1/05 (c) | 2,300 | 2,295 | |||
Ohio Bldg. Auth.: | |||||
(Administration Bldg. Fund Prog.) Series 2004 A, 5% 4/1/08 | 1,935 | 2,086 | |||
(Adult Correctional Bldg. Fund Prog.) Series A, 5.75% 4/1/08 | 3,555 | 3,914 | |||
Ohio Gen. Oblig.: | |||||
Series 2000 E, 5.5% 5/1/09 | 1,905 | 2,125 | |||
Series IIA, 5.25% 12/1/05 | 5,000 | 5,138 | |||
Ohio Rev. Series 2003 1, 5% 6/15/08 | 5,000 | 5,413 | |||
Ohio Univ. Gen. Receipts Athens: | |||||
5% 12/1/06 (FSA Insured) | 3,600 | 3,782 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Ohio - continued | |||||
Ohio Univ. Gen. Receipts Athens: - continued | |||||
5% 12/1/07 (FSA Insured) | $ 1,285 | $ 1,376 | |||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. (Toledo Edison Co. Proj.) Series B, 4.5%, tender 9/1/05 (c) | 7,000 | 7,046 | |||
38,649 | |||||
Oklahoma - 0.2% | |||||
Oklahoma Dev. Fin. Auth. Rev. (Samuel Roberts Noble, Inc. Proj.) 5% 5/1/06 | 3,200 | 3,314 | |||
Oregon - 0.7% | |||||
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured) | 1,210 | 1,333 | |||
Eugene Elec. Util. Rev. Series A: | |||||
5.25% 8/1/06 (FSA Insured) | 1,280 | 1,339 | |||
5.25% 8/1/07 (FSA Insured) | 1,350 | 1,447 | |||
5.25% 8/1/08 (FSA Insured) | 1,425 | 1,558 | |||
Oregon Dept. Administrative Services 5% 9/1/07 (FSA Insured) | 1,750 | 1,868 | |||
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B: | |||||
5% 5/1/09 (FSA Insured) | 1,000 | 1,090 | |||
5% 5/1/11 (FSA Insured) | 1,000 | 1,098 | |||
Oregon Gen. Oblig. 8.25% 1/1/07 | 1,000 | 1,113 | |||
Salem Gen. Oblig. 5% 5/1/10 (FSA Insured) | 2,550 | 2,806 | |||
13,652 | |||||
Pennsylvania - 3.8% | |||||
Allegheny County Hosp. Dev. Auth. Rev. (Univ. of Pittsburgh Med. Ctr. Proj.) Series B: | |||||
5.5% 6/15/05 | 2,545 | 2,579 | |||
5.5% 6/15/06 | 3,065 | 3,179 | |||
5.5% 6/15/07 | 2,000 | 2,135 | |||
Allegheny County San. Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured) | 1,495 | 1,734 | |||
Hazleton Area School District 6.5% 3/1/06 (FSA Insured) | 1,155 | 1,210 | |||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(e) | 10,000 | 10,103 | |||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A, 5% 6/1/06 (AMBAC Insured) | 3,750 | 3,880 | |||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 5%, tender 6/1/05 (c)(e) | 6,200 | 6,218 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Pennsylvania - continued | |||||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | |||||
(UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09 | $ 1,750 | $ 1,895 | |||
Series B: | |||||
5% 9/1/06 (b) | 4,510 | 4,643 | |||
5% 9/1/07 (b) | 5,570 | 5,852 | |||
5.25% 9/1/08 (b) | 5,860 | 6,304 | |||
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured) | 2,750 | 3,061 | |||
Philadelphia Muni. Auth. Rev.: | |||||
Series A: | |||||
5% 5/15/07 (FSA Insured) | 5,500 | 5,818 | |||
5% 5/15/08 (FSA Insured) | 5,000 | 5,374 | |||
Series B, 5.25% 11/15/11 (FSA Insured) | 3,400 | 3,800 | |||
Pittsburgh Gen. Oblig. Series A, 6% 3/1/07 (MBIA Insured) | 2,000 | 2,153 | |||
Wyoming Valley San. Auth. Swr. Rev. 5% 11/15/06 (MBIA Insured) | 1,865 | 1,957 | |||
71,895 | |||||
Puerto Rico - 0.1% | |||||
Puerto Rico Pub. Bldgs Auth. Rev. Series K, 4%, tender 7/1/07 (MBIA Insured) (c) | 2,000 | 2,077 | |||
Rhode Island - 0.2% | |||||
Rhode Island Health & Edl. Bldg. Corp. Rev. (Johnson & Wales Univ. Proj.): | |||||
5% 4/1/06 (XL Cap. Assurance, Inc. Insured) | 2,225 | 2,300 | |||
5% 4/1/08 (XL Cap. Assurance, Inc. Insured) | 1,700 | 1,828 | |||
4,128 | |||||
South Carolina - 1.9% | |||||
Berkeley County School District 7% 4/1/07 | 2,615 | 2,871 | |||
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A: | |||||
5% 8/15/06 | 1,000 | 1,036 | |||
5% 8/15/07 | 1,700 | 1,797 | |||
5% 8/15/08 | 1,690 | 1,803 | |||
Greenville County Pub. Facilities Corp. Certificate of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 (AMBAC Insured) (b) | 1,450 | 1,593 | |||
Piedmont Muni. Pwr. Agcy. Elec. Rev. 5.6% 1/1/09 (MBIA Insured) | 2,345 | 2,608 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
South Carolina - continued | |||||
Rock Hill Util. Sys. Rev. Series 2003 A: | |||||
5% 1/1/08 (FSA Insured) | $ 1,850 | $ 1,987 | |||
5% 1/1/09 (FSA Insured) | 1,945 | 2,119 | |||
South Carolina Pub. Svc. Auth. Rev.: | |||||
Series 2002 A: | |||||
5% 1/1/06 (FSA Insured) | 1,705 | 1,752 | |||
5% 1/1/07 (FSA Insured) | 4,105 | 4,322 | |||
Series A: | |||||
5.5% 1/1/11 (MBIA Insured) | 3,000 | 3,349 | |||
5.5% 1/1/14 (FGIC Insured) (b) | 1,335 | 1,476 | |||
Series D: | |||||
5% 1/1/06 | 2,750 | 2,825 | |||
5% 1/1/07 | 5,000 | 5,265 | |||
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured) | 1,000 | 1,094 | |||
35,897 | |||||
Tennessee - 1.8% | |||||
Elizabethton Health & Edl. Facilities Board Rev. (First Mtg. Prog.) 6% 7/1/11 (MBIA Insured) | 2,005 | 2,310 | |||
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured) | 2,000 | 2,187 | |||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A: | |||||
4% 9/1/06 (MBIA Insured) | 1,500 | 1,542 | |||
4.5% 9/1/08 (MBIA Insured) | 1,620 | 1,729 | |||
4.5% 9/1/09 (MBIA Insured) | 1,685 | 1,806 | |||
Metropolitan Nashville Arpt. Auth. Rev. Series C, 5% 7/1/06 (FGIC Insured) (e) | 1,675 | 1,740 | |||
Shelby County Gen. Oblig. Series A: | |||||
0% 5/1/10 (Pre-Refunded to 5/1/05 @ 74.444) (f) | 15,750 | 11,645 | |||
0% 5/1/12 (Pre-Refunded to 5/1/05 @ 65.1568) (f) | 15,130 | 9,791 | |||
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured) | 1,200 | 1,318 | |||
34,068 | |||||
Texas - 13.6% | |||||
Alief Independent School District Series 2004 B, 5% 2/15/10 | 1,500 | 1,643 | |||
Arlington Independent School District 0% 2/15/16 | 6,820 | 3,498 | |||
Austin Arpt. Sys. Rev. Series A: | |||||
6.5% 11/15/05 (Escrowed to Maturity) (e)(f) | 940 | 975 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
Austin Arpt. Sys. Rev. Series A: - continued | |||||
6.5% 11/15/05 (MBIA Insured) (e) | $ 6,870 | $ 7,123 | |||
Austin Util. Sys. Rev.: | |||||
Series 1992 A, 0% 11/15/09 (MBIA Insured) | 4,130 | 3,543 | |||
Series A, 0% 11/15/10 (MBIA Insured) | 5,300 | 4,340 | |||
Bexar County Series A: | |||||
5% 6/15/09 (FSA Insured) | 2,615 | 2,858 | |||
5% 6/15/10 (FSA Insured) | 1,000 | 1,098 | |||
Birdville Independent School District 5% 2/15/10 | 1,300 | 1,424 | |||
Brazos River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series 1995 B, 5.05%, tender 6/19/06 (c)(e) | 6,255 | 6,439 | |||
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured) | 1,500 | 1,699 | |||
College Station Independent School District 5% 2/15/10 | 1,000 | 1,095 | |||
Conroe Independent School District Lot B, 0% 2/15/08 | 3,000 | 2,748 | |||
Corpus Christi Gen. Oblig.: | |||||
4% 3/1/06 (FSA Insured) | 1,285 | 1,311 | |||
5% 3/1/06 (AMBAC Insured) | 3,365 | 3,464 | |||
5% 3/1/07 (FSA Insured) | 2,735 | 2,887 | |||
Cypress-Fairbanks Independent School District: | |||||
Series B, 0% 8/1/07 (AMBAC Insured) | 10,000 | 9,333 | |||
4.5% 2/15/06 | 2,245 | 2,302 | |||
5% 2/15/08 | 2,000 | 2,152 | |||
Dallas Independent School District Series 2005, 5.25% 8/15/08 (b) | 2,000 | 2,146 | |||
Del Valle Independent School District 5.5% 2/1/09 | 1,205 | 1,334 | |||
El Paso Wtr. & Swr. Rev.: | |||||
5% 3/1/06 (AMBAC Insured) | 1,000 | 1,031 | |||
5% 3/1/07 (AMBAC Insured) | 2,000 | 2,111 | |||
5% 3/1/08 (AMBAC Insured) | 2,770 | 2,978 | |||
Fort Worth Gen. Oblig. Series A, 5% 3/1/06 | 1,000 | 1,032 | |||
Frisco Gen. Oblig.: | |||||
Series 2003 A: | |||||
4% 2/15/07 (FSA Insured) | 1,320 | 1,365 | |||
4% 2/15/08 (FSA Insured) | 1,145 | 1,198 | |||
5% 2/15/10 (FSA Insured) | 1,710 | 1,873 | |||
4% 2/15/06 (FSA Insured) | 2,975 | 3,034 | |||
4% 2/15/07 (FSA Insured) | 3,115 | 3,222 | |||
Garland Independent School District 0% 2/15/07 | 1,610 | 1,521 | |||
Harris County Gen. Oblig. Series A, 0% 8/15/07 (FGIC Insured) | 4,400 | 4,102 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
Harris County Health Facilities Dev. Corp. Rev. (Saint Luke's Episcopal Hosp. Proj.) Series 2001 A, 5.5% 2/15/09 | $ 3,710 | $ 4,036 | |||
Houston Gen. Oblig.: | |||||
5.5% 3/1/06 | 2,580 | 2,675 | |||
5.5% 3/1/06 (Escrowed to Maturity) (f) | 120 | 124 | |||
Houston Wtr. & Swr. Sys. Rev. Series B, 5.5% 12/1/08 (Escrowed to Maturity) (f) | 6,000 | 6,677 | |||
Katy Independent School District Series A, 4% 2/15/06 | 1,335 | 1,361 | |||
Killeen Independent School District 4% 2/15/08 | 1,200 | 1,256 | |||
La Porte Independent School District 4% 2/15/08 | 2,000 | 2,093 | |||
Lewisville Gen. Oblig. 4% 2/15/06 (FSA Insured) | 1,300 | 1,326 | |||
Lower Colorado River Auth. Rev. 5.25% 1/1/15 | 5,000 | 5,598 | |||
Lubbock Gen. Oblig.: | |||||
5% 2/15/09 (MBIA Insured) | 1,615 | 1,758 | |||
5% 2/15/10 (MBIA Insured) | 1,845 | 2,020 | |||
Mesquite Independent School District Series A, 0% 8/15/06 | 1,115 | 1,072 | |||
New Braunfels Independent School District 0% 2/1/07 | 2,000 | 1,892 | |||
North East Texas Independent School District 7% 2/1/11 (Pre-Refunded to 2/1/10 @ 100) (f) | 3,600 | 4,314 | |||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C: | |||||
5% 1/1/09 (FSA Insured) | 2,000 | 2,171 | |||
5%, tender 7/1/08 (FSA Insured) (c) | 2,650 | 2,855 | |||
Northside Independent School District Series B, 2.45%, tender 8/1/06 (Liquidity Facility Dexia Cr. Local de France) (c) | 7,300 | 7,328 | |||
Port Houston Auth. Harris County 6% 10/1/06 (FGIC Insured) (e) | 2,000 | 2,118 | |||
Rockwall Independent School District: | |||||
4% 2/15/06 | 2,370 | 2,417 | |||
5% 2/15/07 | 3,510 | 3,700 | |||
5% 2/15/08 | 3,825 | 4,117 | |||
5% 2/15/09 | 4,690 | 5,105 | |||
San Angelo Wtrks & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured) | 1,630 | 1,783 | |||
San Antonio Elec. & Gas Systems Rev.: | |||||
Series 1991 A, 0% 2/1/05 (Escrowed to Maturity) (f) | 1,000 | 999 | |||
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (f) | 5,000 | 5,673 | |||
5.25% 2/1/07 | 2,500 | 2,647 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
San Antonio Elec. & Gas Systems Rev.: - continued | |||||
5.25% 2/1/08 | $ 1,000 | $ 1,083 | |||
San Antonio Independent School District 7% 8/15/08 | 5,000 | 5,765 | |||
San Antonio Wtr. Sys. Rev. 5% 5/15/10 (FGIC Insured) | 1,020 | 1,118 | |||
Socorro Independent School District 5% 8/15/09 | 2,070 | 2,269 | |||
Spring Branch Independent School District Series 2001, 5.375% 2/1/14 | 2,790 | 3,082 | |||
Spring Independent School District 5% 2/15/08 | 1,875 | 2,018 | |||
Texas Gen. Oblig.: | |||||
(College Student Ln. Prog.) 5% 8/1/11 (e) | 3,000 | 3,194 | |||
Series 1992 A, 8% 10/1/07 | 10,000 | 11,450 | |||
Series A, 6% 10/1/08 (MBIA Insured) | 10,750 | 12,101 | |||
Series C, 0% 4/1/08 (Escrowed to Maturity) (f) | 3,100 | 2,848 | |||
Texas Pub. Fin. Auth. Bldg. Rev.: | |||||
(Dept. of Criminal Justice Prog.) Series A, 5% 2/1/07 (FSA Insured) | 2,000 | 2,105 | |||
0% 2/1/05 (MBIA Insured) | 3,725 | 3,720 | |||
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Projs.) Series A, 5% 2/1/10 (AMBAC Insured) | 1,055 | 1,154 | |||
Texas Tech Univ. Revs. Ninth Series: | |||||
4% 2/15/09 (AMBAC Insured) | 1,460 | 1,532 | |||
5% 2/15/11 (AMBAC Insured) | 1,250 | 1,373 | |||
Trinity River Auth. Red Oak Creek Sys. Rev. 3.5% 2/1/06 (FSA Insured) | 1,270 | 1,288 | |||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.): | |||||
4% 7/1/05 | 1,800 | 1,811 | |||
4.5% 7/1/06 | 1,220 | 1,241 | |||
5% 7/1/07 | 1,000 | 1,046 | |||
Univ. of Houston Univ. Revs. Series A: | |||||
3.5% 2/15/06 (FSA Insured) | 4,955 | 5,026 | |||
4% 2/15/08 (FSA Insured) | 5,265 | 5,498 | |||
Univ. of Texas Univ. Revs.: | |||||
(Fing. Sys. Proj.) Series A, 5.5% 8/15/09 | 1,115 | 1,245 | |||
Series B, 5% 8/15/09 | 13,555 | 14,842 | |||
Webb County Gen. Oblig.: | |||||
5% 2/15/06 (FGIC Insured) | 1,055 | 1,087 | |||
5% 2/15/07 (FGIC Insured) | 1,110 | 1,171 | |||
5% 2/15/08 (FGIC Insured) | 1,170 | 1,259 | |||
Wichita Falls Independent School District 0% 2/1/10 | 2,325 | 1,964 | |||
256,284 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Utah - 0.5% | |||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | |||||
0% 10/1/11 (AMBAC Insured) | $ 3,800 | $ 2,958 | |||
0% 10/1/12 (AMBAC Insured) | 3,800 | 2,816 | |||
0% 10/1/13 (AMBAC Insured) | 3,760 | 2,660 | |||
Utah Bldg. Ownership Auth. Lease Rev. (State Facilities Master Lease Prog.) Series A, 5% 5/15/11 | 1,700 | 1,875 | |||
10,309 | |||||
Virginia - 0.1% | |||||
Virginia Commonwealth Trans. Board Trans. Rev. (U.S. Route 58 Corridor Dev. Prog.) Series B, 5.375% 5/15/12 (Pre-Refunded to 5/15/09 @ 101) (f) | 1,800 | 2,022 | |||
Washington - 6.3% | |||||
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured) (b) | 1,190 | 1,277 | |||
Clark County Pub. Util. District #1 Elec. Rev.: | |||||
Series B: | |||||
5% 1/1/06 (FSA Insured) | 1,375 | 1,412 | |||
5% 1/1/07 (FSA Insured) | 1,395 | 1,467 | |||
5.25% 1/1/08 (FSA Insured) | 1,515 | 1,634 | |||
5.25% 1/1/09 (FSA Insured) | 1,595 | 1,747 | |||
5% 1/1/11 (MBIA Insured) | 1,680 | 1,842 | |||
King & Snohomish Counties School District #417 Northshore: | |||||
5.5% 12/1/14 (FSA Insured) | 6,300 | 7,085 | |||
5.75% 12/1/15 (FSA Insured) | 2,500 | 2,864 | |||
King County Rural Library District 5% 12/1/06 (FSA Insured) | 1,045 | 1,092 | |||
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured) | 1,740 | 1,918 | |||
King County Swr. Rev. Series B: | |||||
5% 1/1/06 (FSA Insured) | 3,000 | 3,082 | |||
5% 1/1/07 (FSA Insured) | 5,000 | 5,258 | |||
5.25% 1/1/08 (FSA Insured) | 3,500 | 3,774 | |||
Port of Seattle Rev.: | |||||
Series B, 5.5% 2/1/07 (MBIA Insured) (e) | 5,775 | 6,112 | |||
Series D, 5.75% 11/1/15 (FGIC Insured) (e) | 3,640 | 4,085 | |||
Seattle Gen. Oblig. Series A, 5.75% 1/15/20 | 10,000 | 10,370 | |||
Seattle Muni. Lt. & Pwr. Rev. 5.25% 3/1/07 (FSA Insured) | 1,690 | 1,793 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Washington - continued | |||||
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.): | |||||
4% 12/1/05 (FGIC Insured) | $ 1,570 | $ 1,596 | |||
4.5% 12/1/09 (FGIC Insured) | 1,000 | 1,069 | |||
Snohomish County School District #2, Everett: | |||||
5% 6/1/09 (FSA Insured) | 1,045 | 1,141 | |||
5% 6/1/10 (FSA Insured) | 1,000 | 1,096 | |||
Washington Gen. Oblig.: | |||||
Series A: | |||||
4% 1/1/08 (MBIA Insured) | 33,175 | 34,677 | |||
5% 7/1/11 (FGIC Insured) | 1,000 | 1,104 | |||
5.5% 7/1/11 | 3,500 | 3,900 | |||
Series C, 5% 1/1/08 (FSA Insured) | 8,320 | 8,935 | |||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev. Series A, 5.75% 7/1/08 | 3,000 | 3,314 | |||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #3 Rev. Series C, 5% 7/1/06 (FSA Insured) | 5,000 | 5,197 | |||
118,841 | |||||
West Virginia - 0.2% | |||||
West Virginia Gen. Oblig. 5.5% 6/1/07 (FSA Insured) | 1,905 | 2,043 | |||
West Virginia School Bldg. Auth. 4% 1/1/06 (MBIA Insured) | 2,500 | 2,546 | |||
4,589 | |||||
Wisconsin - 1.6% | |||||
Franklin Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 2.5%, tender 5/1/05 (c)(e) | 5,000 | 4,988 | |||
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured) | 3,370 | 2,752 | |||
Wisconsin Health & Edl. Facilities Auth. Rev.: | |||||
(Hosp. Sisters Svcs., Inc. Proj.) Series 2003 B, 4%, tender 12/1/06 (FSA Insured) (c) | 15,000 | 15,374 | |||
(Wheaton Franciscan Svcs., Inc. Proj.) Series A: | |||||
5% 8/15/09 | 1,000 | 1,073 | |||
5% 8/15/10 | 1,870 | 2,004 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Wisconsin - continued | |||||
Wisconsin Trans. Rev.: | |||||
Series A, 5.7% 7/1/14 (Pre-Refunded to 7/1/06 | $ 2,230 | $ 2,345 | |||
5% 7/1/07 | 1,500 | 1,593 | |||
30,129 | |||||
TOTAL MUNICIPAL BONDS (Cost $1,904,915) | 1,925,911 | ||||
Money Market Funds - 0.4% | |||||
Shares | |||||
Fidelity Municipal Cash Central Fund, 1.99% (a)(d) | 8,422,800 | 8,423 | |||
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $1,913,338) | 1,934,334 | ||||
NET OTHER ASSETS - (2.3)% | (44,301) | ||||
NET ASSETS - 100% | $ 1,890,033 |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(d) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(f) Security collateralized by an amount sufficient to pay interest and principal. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $9,390,000 or 0.5% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition | Acquisition |
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 8,955 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 47.3% |
Electric Utilities | 14.3% |
Escrowed/Pre-Refunded | 9.5% |
Transportation | 7.1% |
Health Care | 5.9% |
Special Tax | 5.2% |
Education | 5.1% |
Others* (individually less than 5%) | 5.6% |
100.0% |
*Includes net other assets |
Income Tax Information |
The fund hereby designates as capital gain dividends: For dividends with respect to the taxable year ended December 31, 2004, $4,712,000 or, if different, the net capital gain of such year. |
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, 2004 | |
Assets | ||
Investment in securities, at value (cost $1,913,338) - See accompanying schedule | $ 1,934,334 | |
Cash | 4,734 | |
Receivable for fund shares sold | 1,308 | |
Interest receivable | 23,980 | |
Prepaid expenses | 7 | |
Other receivables | 77 | |
Total assets | 1,964,440 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 69,921 | |
Payable for fund shares redeemed | 2,485 | |
Distributions payable | 1,167 | |
Accrued management fee | 595 | |
Distribution fees payable | 18 | |
Other affiliated payables | 157 | |
Other payables and accrued expenses | 64 | |
Total liabilities | 74,407 | |
Net Assets | $ 1,890,033 | |
Net Assets consist of: | ||
Paid in capital | $ 1,867,621 | |
Undistributed net investment income | 190 | |
Accumulated undistributed net realized gain (loss) on investments | 1,226 | |
Net unrealized appreciation (depreciation) on investments | 20,996 | |
Net Assets | $ 1,890,033 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2004 | |
Calculation of Maximum Offering Price Class A: | $ 10.39 | |
Maximum offering price per share (100/96.25 of $10.39) | $ 10.79 | |
Class T: | $ 10.37 | |
Maximum offering price per share (100/97.25 of $10.37) | $ 10.66 | |
Class B: | $ 10.39 | |
Class C: | $ 10.38 | |
Spartan Short-Intermediate Municipal Income: | $ 10.38 | |
Institutional Class: | $ 10.38 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
Amounts in thousands | Year ended December 31, 2004 | |
Investment Income | ||
Interest | $ 56,396 | |
Expenses | ||
Management fee | $ 6,959 | |
Transfer agent fees | 1,406 | |
Distribution fees | 198 | |
Accounting fees and expenses | 367 | |
Non-interested trustees' compensation | 10 | |
Custodian fees and expenses | 31 | |
Registration fees | 155 | |
Audit | 49 | |
Legal | 6 | |
Miscellaneous | 47 | |
Total expenses before reductions | 9,228 | |
Expense reductions | (269) | 8,959 |
Net investment income | 47,437 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on investment securities | 4,712 | |
Change in net unrealized appreciation (depreciation) on investment securities | (22,609) | |
Net gain (loss) | (17,897) | |
Net increase (decrease) in net assets resulting from operations | $ 29,540 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 47,437 | $ 48,400 |
Net realized gain (loss) | 4,712 | 12,717 |
Change in net unrealized appreciation (depreciation) | (22,609) | (8,571) |
Net increase (decrease) in net assets resulting | 29,540 | 52,546 |
Distributions to shareholders from net investment income | (47,598) | (48,268) |
Distributions to shareholders from net realized gain | (3,486) | (12,396) |
Total distributions | (51,084) | (60,664) |
Share transactions - net increase (decrease) | 37,160 | 199,628 |
Redemption fees | 65 | 43 |
Total increase (decrease) in net assets | 15,681 | 191,553 |
Net Assets | ||
Beginning of period | 1,874,352 | 1,682,799 |
End of period (including undistributed net investment income of $190 and undistributed net investment income of $351, respectively) | $ 1,890,033 | $ 1,874,352 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.50 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .250 | .115 |
Net realized and unrealized gain (loss) | (.090) | .071 |
Total from investment operations | .160 | .186 |
Distributions from net investment income | (.251) | (.111) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.270) | (.176) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.39 | $ 10.50 |
Total ReturnB,C,D | 1.55% | 1.78% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | .65% | .65%A |
Expenses net of voluntary waivers, if any | .65% | .65%A |
Expenses net of all reductions | .64% | .64%A |
Net investment income | 2.41% | 2.52%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 12 | $ 9 |
Portfolio turnover rate | 45% | 34% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .238 | .110 |
Net realized and unrealized gain (loss) | (.089) | .050 |
Total from investment operations | .149 | .160 |
Distributions from net investment income | (.240) | (.105) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.259) | (.170) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.37 | $ 10.48 |
Total ReturnB,C,D | 1.44% | 1.54% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | .76% | .77%A |
Expenses net of voluntary waivers, if any | .76% | .77%A |
Expenses net of all reductions | .75% | .76%A |
Net investment income | 2.30% | 2.41%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 20 | $ 12 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .172 | .081 |
Net realized and unrealized gain (loss) | (.080) | .059 |
Total from investment operations | .092 | .140 |
Distributions from net investment income | (.173) | (.075) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.192) | (.140) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.39 | $ 10.49 |
Total ReturnB,C,D | .89% | 1.34% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | 1.40% | 1.40%A |
Expenses net of voluntary waivers, if any | 1.40% | 1.40%A |
Expenses net of all reductions | 1.39% | 1.39%A |
Net investment income | 1.65% | 1.78%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 4 | $ 2 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .159 | .077 |
Net realized and unrealized gain (loss) | (.080) | .048 |
Total from investment operations | .079 | .125 |
Distributions from net investment income | (.160) | (.070) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.179) | (.135) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.38 | $ 10.48 |
Total ReturnB,C,D | .77% | 1.20% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | 1.52% | 1.50%A |
Expenses net of voluntary waivers, if any | 1.52% | 1.50%A |
Expenses net of all reductions | 1.51% | 1.49%A |
Net investment income | 1.53% | 1.67%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 11 | $ 8 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Spartan Short-Intermediate Municipal Income
Years ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000F | 2000H |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 10.48 | $ 10.52 | $ 10.27 | $ 10.12 | $ 10.03 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment incomeD | .268 | .283 | .336 | .396G | .139 | .399 |
Net realized and unrealized gain (loss) | (.080) | .030 | .317 | .173G | .092 | .034 |
Total from investment operations | .188 | .313 | .653 | .569 | .231 | .433 |
Distributions from net investment income | (.269) | (.283) | (.339) | (.396) | (.140) | (.400) |
Distributions from net realized gain | (.019) | (.070) | (.064) | (.023) | (.001) | - |
Distributions in excess of net realized gain | - | - | - | - | - | (.003) |
Total distributions | (.288) | (.353) | (.403) | (.419) | (.141) | (.403) |
Redemption fees added to paid in capital | -D,I | -D,I | -D,I | -D,I | - | - |
Net asset value, end of period | $ 10.38 | $ 10.48 | $ 10.52 | $ 10.27 | $ 10.12 | $ 10.03 |
Total ReturnB,C | 1.82% | 3.01% | 6.47% | 5.70% | 2.32% | 4.45% |
Ratios to Average Net AssetsE | ||||||
Expenses before expense reductions | .49% | .49% | .49% | .49% | .49%A | .55% |
Expenses net of voluntary waivers, if any | .48% | .49% | .49% | .49% | .49%A | .54% |
Expenses net of all | .47% | .47% | .45% | .41% | .45%A | .54% |
Net investment income | 2.57% | 2.69% | 3.23% | 3.85%G | 4.17%A | 4.02% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 1,841 | $ 1,843 | $ 1,683 | $ 1,183 | $ 965 | $ 904 |
Portfolio turnover rate | 45% | 34% | 38% | 43% | 106%A | 53% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E 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 other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary 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 For the four months ended December 31.
G Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.
H For the year ended August 31.
I 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, | 2004 | 2003E |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeD | .265 | .125 |
Net realized and unrealized gain (loss) | (.088) | .059 |
Total from investment operations | .177 | .184 |
Distributions from net investment income | (.268) | (.119) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.287) | (.184) |
Redemption fees added to paid in capitalD | -G | -G |
Net asset value, end of period | $ 10.38 | $ 10.49 |
Total ReturnB,C | 1.71% | 1.77% |
Ratios to Average Net AssetsF | ||
Expenses before expense reductions | .49% | .48%A |
Expenses net of voluntary waivers, if any | .49% | .48%A |
Expenses net of all reductions | .48% | .47%A |
Net investment income | 2.57% | 2.69%A |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $ 1,253 | $ 414 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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
Notes to Financial Statements
For the period ended December 31, 2004
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Spartan Short-Intermediate Municipal Income Fund (the fund) is a fund of Fidelity Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, Spartan Short Intermediate Municipal Income and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of four years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities, including restricted securities, are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount.
The fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 24,516 | |
Unrealized depreciation | (3,520) | |
Net unrealized appreciation (depreciation) | 20,996 | |
Undistributed ordinary income | 194 | |
Undistributed long-term capital gain | 254 | |
Cost for federal income tax purposes | $ 1,913,338 |
Annual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
December 31, | December 31, | |
Tax-exempt Income | $ 47,598 | $ 48,268 |
Long-term Capital Gains | 3,486 | 12,396 |
Total | $ 51,084 | $ 60,664 |
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of 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.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $930,593 and $815,921, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the fund's average net assets and a group fee rate that averaged .13% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .38% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | 0% | .15% | $ 19 | $ - |
Class T | 0% | .25% | 44 | - |
Class B | .65% | .25% | 31 | 23 |
Class C | .75% | .25% | 104 | 78 |
$ 198 | $ 101 |
Sales Load. FDC receives a front-end sales charge of up to 3.75% for selling Class A shares, and 2.75% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Annual Report
4. 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 | $ 25 |
Class T | 12 |
Class B* | 8 |
Class C* | 17 |
$ 62 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the fund's Class A, Class T, Class B, Class C, Spartan Short-Intermediate Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the fund, except for Spartan Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. Citibank has also entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, with respect to Spartan Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC and FSC receive account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:
Amount | % of | |
Class A | $ 11 | .09 |
Class T | 17 | .10 |
Class B | 3 | .09 |
Class C | 11 | .11 |
Spartan Short-Intermediate Municipal Income | 1,363 | .08 |
Institutional Class | 1 | .08 |
$ 1,406 |
Citibank also has a sub-arrangement with FSC to maintain the fund's accounting records. The fee is based on the level of average net assets for the month.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $316 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Spartan Short-Intermediate Municipal Income operating expenses. During the period, this reimbursement reduced the class' expenses by $53.
In addition, through arrangements with the fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and accounting expenses by $17 and $165, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | |
Spartan Short-Intermediate Municipal Income | $ 34 |
7. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | ||
2004 | 2003A | |
From net investment income | ||
Class A | $ 303 | $ 41 |
Class T | 403 | 55 |
Class B | 58 | 11 |
Class C | 160 | 31 |
Spartan Short-Intermediate Municipal Income | 46,653 | 48,127 |
Institutional Class | 21 | 3 |
Total | $ 47,598 | $ 48,268 |
Annual Report
7. Distributions to Shareholders - continued
Years ended December 31, | ||
2004 | 2003A | |
From net realized gain | ||
Class A | $ 23 | $ 38 |
Class T | 36 | 64 |
Class B | 7 | 14 |
Class C | 20 | 44 |
Spartan Short-Intermediate Municipal Income | 3,398 | 12,233 |
Institutional Class | 2 | 3 |
Total | $ 3,486 | $ 12,396 |
A Distributions for Class A, Class T, Class B, Class C and Institutional Class are for the period July 23, 2003 (commencement of sale of shares)
to December 31, 2003.
8. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2004 | 2003A | 2004 | 2003A | |
Class A | ||||
Shares sold | 1,095 | 946 | $ 11,465 | $ 9,927 |
Reinvestment of distributions | 24 | 5 | 253 | 55 |
Shares redeemed | (785) | (84) | (8,128) | (882) |
Net increase (decrease) | 334 | 867 | $ 3,590 | $ 9,100 |
Class T | ||||
Shares sold | 1,569 | 1,169 | $ 16,393 | $ 12,269 |
Reinvestment of distributions | 30 | 8 | 309 | 80 |
Shares redeemed | (818) | (22) | (8,551) | (231) |
Net increase (decrease) | 781 | 1,155 | $ 8,151 | $ 12,118 |
Class B | ||||
Shares sold | 214 | 234 | $ 2,231 | $ 2,454 |
Reinvestment of distributions | 4 | 2 | 42 | 17 |
Shares redeemed | (84) | (2) | (870) | (16) |
Net increase (decrease) | 134 | 234 | $ 1,403 | $ 2,455 |
Class C | ||||
Shares sold | 658 | 777 | $ 6,848 | $ 8,150 |
Reinvestment of distributions | 10 | 3 | 103 | 36 |
Shares redeemed | (295) | (57) | (3,054) | (598) |
Net increase (decrease) | 373 | 723 | $ 3,897 | $ 7,588 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
8. Share Transactions - continued
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2004 | 2003A | 2004 | 2003A | |
Spartan Short-Intermediate Municipal Income | ||||
Shares sold | 75,115 | 89,461 | $ 784,282 | $ 942,790 |
Reinvestment of distributions | 3,669 | 4,591 | 38,189 | 48,317 |
Shares redeemed | (77,123) | (78,187) | (803,196) | (823,154) |
Net increase (decrease) | 1,661 | 15,865 | $ 19,275 | $ 167,953 |
Institutional Class | ||||
Shares sold | 110 | 41 | $ 1,153 | $ 434 |
Reinvestment of distributions | 1 | 1 | 8 | 4 |
Shares redeemed | (30) | (2) | (317) | (24) |
Net increase (decrease) | 81 | 40 | $ 844 | $ 414 |
A Share transactions for Class A, Class T, Class B, Class C and Institutional Class are for the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Spartan Short-Intermediate Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Spartan Short-Intermediate Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2004 and the results of its operations, the changes in its net assets and the financial highlights for 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 Spartan Short-Intermediate Municipal Income Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2005
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for William O. McCoy, Dennis J. Dirks, and Kenneth L. Wolfe, each of the Trustees oversees 301 funds advised by FMR or an affiliate. Mr. McCoy oversees 303 funds advised by FMR or an affiliate. Mr. Dirks and Mr. Wolfe oversee 233 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (74)** | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (43)** | |
Year of Election or Appointment: 2001 Senior Vice President of Spartan® Short-Intermediate Municipal Income (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (50) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (52) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* 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.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (56) | |
Year of Election or Appointment: 2005 Mr. Dirks also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). | |
Robert M. Gates (61) | |
Year of Election or Appointment: 1997 Dr. Gates is Vice Chairman of the non-interested Trustees (2005). Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001), and Brinker International (restaurant management, 2003). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
George H. Heilmeier (68) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001), Teletech Holdings (customer management services), and HRL Laboratories (private research and development, 2004). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE) (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), and Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002). | |
Marie L. Knowles (58) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (60) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Co-Chairman and a Director of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Italtel Holding S.p.A. (telecommunications (Milan, Italy), 2004) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (71) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals), where he served as CEO until April 1998, retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. He is a member of the Executive Committee of the Independent Director's Council of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (71) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), and Progress Energy, Inc. (electric utility). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
Cornelia M. Small (60) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000) and Chairperson (2002) of the Investment Committee, and a member (2002) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1998). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (65) | |
Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman of the Board (2000), CEO (2002), a position he previously held from 1995-2000, Chairman of the Executive Committee (2000), and a Member of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (65) | |
Year of Election or Appointment: 2005 Mr. Wolfe also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003), Bausch & Lomb, Inc., and Revlon Inc. (2004). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (61) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Dwight D. Churchill (51) | |
Year of Election or Appointment: 1997 Vice President of Spartan Short-Intermediate Municipal Income. He serves as Head of Fidelity's Fixed-Income Division (2000), Vice President of Fidelity's Money Market Funds (2000), Vice President of Fidelity's Bond Funds (1997), and Senior Vice President of FIMM (2000) and FMR (1997). Mr. Churchill joined Fidelity in 1993 as Vice President and Group Leader of Taxable Fixed-Income Investments. | |
Charles S. Morrison (44) | |
Year of Election or Appointment: 2002 Vice President of Spartan Short-Intermediate Municipal Income. Mr. Morrison also serves as Vice President of Fidelity's Bond Funds (2002), and Vice President of certain Asset Allocation and Balanced Funds (2002). He serves as Vice President (2002) and Bond Group Leader (2002) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002) and FMR (2002). Mr. Morrison joined Fidelity in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
Mark Sommer (44) | |
Year of Election or Appointment: 2004 Vice President of Spartan Short-Intermediate Municipal Income. Mr. Sommer also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Sommer worked as an analyst and manager. | |
Eric D. Roiter (56) | |
Year of Election or Appointment: 1998 Secretary of Spartan Short-Intermediate Municipal Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Vice President and Secretary of FDC; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Management & Research (Far East) Inc. (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). | |
Stuart Fross (45) | |
Year of Election or Appointment: 2003 Assistant Secretary of Spartan Short-Intermediate Municipal Income. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Christine Reynolds (46) | |
Year of Election or Appointment: 2004 President, Treasurer, and Anti-Money Laundering (AML) officer of Spartan Short-Intermediate Municipal Income. Ms. Reynolds also serves as President, Treasurer, and AML officer of other Fidelity funds (2004) and is a Vice President (2003) and an employee (2002) of FMR. Before joining Fidelity Investments, Ms. Reynolds worked at PricewaterhouseCoopers LLP (PwC) (1980-2002), where she was most recently an audit partner with PwC's investment management practice. | |
Timothy F. Hayes (54) | |
Year of Election or Appointment: 2002 Chief Financial Officer of Spartan Short-Intermediate Municipal Income. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
Kenneth A. Rathgeber (57) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Spartan Short-Intermediate Municipal Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004) and Executive Vice President of Risk Oversight for Fidelity Investments (2002). Previously, he served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
John R. Hebble (46) | |
Year of Election or Appointment: 2003 Deputy Treasurer of Spartan Short-Intermediate Municipal Income. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
Kimberley H. Monasterio (41) | |
Year of Election or Appointment: 2004 Deputy Treasurer of Spartan Short-Intermediate Municipal Income. Ms. Monasterio also serves as Deputy Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
John H. Costello (58) | |
Year of Election or Appointment: 1986 Assistant Treasurer of Spartan Short-Intermediate Municipal Income. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (50) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Spartan Short-Intermediate Municipal Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (49) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Spartan Short-Intermediate Municipal Income. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Kenneth B. Robins (35) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Spartan Short-Intermediate Municipal Income. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Annual Report
Distributions
The Board of Trustees of Advisor Short-Intermediate Municipal Income voted to pay on February 7, 2005, to shareholders of record at the opening of business on February 4, 2005, a distribution of $.003 per share derived from capital gains realized from sales of portfolio securities.
During fiscal year ended 2004, 100% of the fund's income dividends was free from federal income tax, and 11.57% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2005 of amounts for use in preparing 2004 income tax returns.
Annual Report
Proxy Voting Results
A special meeting of the fund's shareholders was held on April 14, 2004 The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* | ||
# of | % of | |
Affirmative | 3,415,899,540.41 | 73.098 |
Against | 857,186,718.73 | 18.343 |
Abstain | 194,806,370.40 | 4.169 |
Broker | 205,155,704.48 | 4.390 |
TOTAL | 4,673,048,334.02 | 100.000 |
PROPOSAL 2 | ||
To elect a Board of Trustees.* | ||
# of | % of | |
J. Michael Cook | ||
Affirmative | 4,338,349,812.56 | 92.838 |
Withheld | 334,698,521.46 | 7.162 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ralph F. Cox | ||
Affirmative | 4,334,671,421.01 | 92.759 |
Withheld | 338,376,913.01 | 7.241 |
TOTAL | 4,673,048,334.02 | 100.000 |
Laura B. Cronin | ||
Affirmative | 4,332,816,177.06 | 92.719 |
Withheld | 340,232,156.96 | 7.281 |
TOTAL | 4,673,048,334.02 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,336,851,658.96 | 92.806 |
Withheld | 336,196,675.06 | 7.194 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
George H. Heilmeier | ||
Affirmative | 4,334,549,149.07 | 92.756 |
Withheld | 338,499,184.95 | 7.244 |
TOTAL | 4,673,048,334.02 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 4,327,320,608.55 | 92.602 |
Withheld | 345,727,725.47 | 7.398 |
TOTAL | 4,673,048,334.02 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 4,322,104,507.32 | 92.490 |
Withheld | 350,943,826.70 | 7.510 |
TOTAL | 4,673,048,334.02 | 100.000 |
Donald J. Kirk | ||
Affirmative | 4,335,814,201.97 | 92.783 |
Withheld | 337,234,132.05 | 7.217 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marie L. Knowles | ||
Affirmative | 4,333,892,089.64 | 92.742 |
Withheld | 339,156,244.38 | 7.258 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,340,856,926.26 | 92.891 |
Withheld | 332,191,407.76 | 7.109 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marvin L. Mann | ||
Affirmative | 4,336,736,818.96 | 92.803 |
Withheld | 336,311,515.06 | 7.197 |
TOTAL | 4,673,048,334.02 | 100.000 |
William O. McCoy | ||
Affirmative | 4,338,426,324.60 | 92.839 |
Withheld | 334,622,009.42 | 7.161 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
Robert L. Reynolds | ||
Affirmative | 4,339,017,198.22 | 92.852 |
Withheld | 334,031,135.80 | 7.148 |
TOTAL | 4,673,048,334.02 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,338,546,239.15 | 92.842 |
Withheld | 334,502,094.87 | 7.158 |
TOTAL | 4,673,048,334.02 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
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5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
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Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
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Fidelity Advisor
Short-Intermediate
Municipal Income
Fund - Class A, Class T, Class B
and Class C
Annual Report
December 31, 2004
(2_fidelity_logos) (Registered_Trademark)
Class A, Class T, Class B, and Class C are classes of Spartan® Short-Intermediate Municipal Income Fund
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
Proxy Voting Results | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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Other third party marks appearing herein are the property of their respective owners.
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Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow. Returns may 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, 2004 | Past 1 | Past 5 | Past 10 |
Class A (incl. 3.75% sales charge) A | -2.26% | 3.79% | 4.29% |
Class T (incl. 2.75% sales charge) B | -1.35% | 3.94% | 4.37% |
Class B (incl. contingent deferred sales charge) C | -2.08% | 4.36% | 4.58% |
Class C (incl. contingent deferred sales charge) D | -0.22% | 4.31% | 4.55% |
A Class A shares bear a 0.15% 12b-1 fee. The initial offering of Class A shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Spartan Short-Intermediate Municipal Income Fund, the original retail class of the fund, which has no 12b-1 fee. Had Class A shares' 12b-1 fee been reflected, returns prior to July 23, 2003 would have been lower.
B Class T shares bear a 0.25% 12b-1 fee. The initial offering of Class T shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Spartan Short-Intermediate Municipal Income Fund, the original retail class of the fund, which has no 12b-1 fee. Had Class T shares' 12b-1 fee been reflected, returns prior to July 23, 2003 would have been lower.
C Class B shares bear a 0.90% 12b-1 fee. The initial offering of Class B shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Spartan Short-Intermediate Municipal Income Fund, the original retail class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to July 23, 2003 would have been lower. Class B shares' contingent deferred sales charges included in the past one year, past five year and past 10 year total return figures are 3%, 0% and 0%, respectively.
D Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Spartan Short-Intermediate Municipal Income Fund, the original retail class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to July 23, 2003 would have been lower. Class C shares' contingent deferred sales charge included in the past one year, past five year and past 10 year total return figures are 1%, 0% and 0%, respectively.
Annual Report
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Short-Intermediate Municipal Income - Class T on December 31, 1994, and the current 2.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Mark Sommer, Portfolio Manager of Fidelity Advisor Short-Intermediate Municipal Income Fund
Despite persistent inflation concerns and the Federal Reserve Board raising interest rates multiple times in the second half of the year, the municipal bond market registered positive performance for the year ending December 31, 2004. In that time, the Lehman Brothers® Municipal Bond Index rose 4.48%. In comparison, the Lehman Brothers Aggregate Bond Index - a proxy of the overall investment-grade taxable debt market - returned 4.34%. This marks the second consecutive year in which tax-free munis outperformed taxable bonds on an absolute basis. Demand for munis generally was strong in 2004, except for a rough patch in the spring when strong labor markets fueled expectations of rising inflation. Shortly thereafter, the Fed began a series of five 0.25 percentage-point interest rate hikes between June 30 and December 14. While munis typically don't react well to such actions, they responded with positive returns in each of the year's final six months, partly due to reassurances by the Fed that it intended to raise rates in a "measured fashion."
For the year ending December 31, 2004, the fund's Class A, Class T, Class B and Class C shares returned 1.55%, 1.44%, 0.89% and 0.77%, respectively. During the same period, the LipperSM Short-Intermediate Municipal Debt Funds Average rose 1.63% and the Lehman Brothers 1-6 Year Municipal Bond Index returned 2.04%. Short-intermediate municipal bond prices came under some pressure as short-term interest rates and bond yields moved higher. In this environment, I believe my approach to managing the fund's interest rate sensitivity - which involved keeping it in line with the Lehman Brothers index - helped performance given that both the fund and the index had less interest rate sensitivity than the Lipper peer group average. Also aiding performance was our stake in lower-quality investment-grade muni bonds, which performed quite well as investors sought out their high yields, which in turn helped cushion their prices from rising interest rates. However, my decision to avoid non-investment-grade muni bonds likely detracted from performance because they generally outpaced higher-quality munis. Throughout the period, I kept the fund's investments tilted toward bonds issued from states that don't give their own bonds preferential tax treatment, as these securities tended to be more attractively valued. Specifically, I preferred bonds issued in states such as Texas, where there's no state income tax, and Illinois, where all bonds are subject to Illinois state income tax.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover 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, 2004 to December 31, 2004).
Actual Expenses
The first line of the table below for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,022.00 | $ 3.25 |
HypotheticalA | $ 1,000.00 | $ 1,021.92 | $ 3.25 |
Class T | |||
Actual | $ 1,000.00 | $ 1,020.50 | $ 3.81 |
HypotheticalA | $ 1,000.00 | $ 1,021.37 | $ 3.81 |
Beginning | Ending | Expenses Paid | |
Class B | |||
Actual | $ 1,000.00 | $ 1,018.20 | $ 7.05 |
HypotheticalA | $ 1,000.00 | $ 1,018.15 | $ 7.05 |
Class C | |||
Actual | $ 1,000.00 | $ 1,017.60 | $ 7.66 |
HypotheticalA | $ 1,000.00 | $ 1,017.55 | $ 7.66 |
Spartan Short-Intermediate Municipal Income | |||
Actual | $ 1,000.00 | $ 1,022.90 | $ 2.44 |
HypotheticalA | $ 1,000.00 | $ 1,022.72 | $ 2.44 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,022.90 | $ 2.44 |
HypotheticalA | $ 1,000.00 | $ 1,022.72 | $ 2.44 |
A 5% return per year before expenses
*Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Annualized | |
Class A | .64% |
Class T | .75% |
Class B | 1.39% |
Class C | 1.51% |
Spartan Short-Intermediate Municipal Income | .48% |
Institutional Class | .48% |
Annual Report
Investment Changes
Top Five States as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
Texas | 13.6 | 12.6 |
Illinois | 9.7 | 8.8 |
California | 8.2 | 8.5 |
New York | 6.9 | 7.6 |
Washington | 6.3 | 8.6 |
Top Five Sectors as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
General Obligations | 47.3 | 43.2 |
Electric Utilities | 14.3 | 15.5 |
Escrowed/Pre-Refunded | 9.5 | 10.3 |
Transportation | 7.1 | 7.1 |
Health Care | 5.9 | 6.7 |
Average Years to Maturity as of December 31, 2004 | ||
6 months ago | ||
Years | 3.3 | 3.2 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2004 | ||
6 months ago | ||
Years | 3.0 | 2.8 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2004 | As of June 30, 2004 | ||||||
![]() | AAA 61.3% | ![]() | AAA 59.6% | ||||
![]() | AA,A 32.9% | ![]() | AA,A 31.7% | ||||
![]() | BBB 5.8% | ![]() | BBB 6.4% | ||||
![]() | BB and Below 0.0% | ![]() | BB and Below 0.3% | ||||
![]() | Not Rated 1.9% | ![]() | Not Rated 1.5% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
* Short-Term Investments and Net Other Assets are not included in the pie chart.
Annual Report
Investments December 31, 2004
Showing Percentage of Net Assets
Municipal Bonds - 101.9% | |||||
Principal | Value (Note 1) | ||||
Alabama - 2.5% | |||||
Alabama Agric. & Mechanical Univ. Revs. 6.5% 11/1/25 (Pre-Refunded to 11/1/05 @ 102) (f) | $ 2,000 | $ 2,112 | |||
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev.: | |||||
5.25% 10/1/07 (MBIA Insured) (e) | 1,750 | 1,853 | |||
5.25% 10/1/08 (MBIA Insured) (e) | 2,900 | 3,113 | |||
5.75% 10/1/09 (MBIA Insured) (e) | 4,000 | 4,406 | |||
Jefferson County Gen. Oblig. Series 2003 A, 5% 4/1/07 (MBIA Insured) | 3,000 | 3,174 | |||
Jefferson County Ltd. Oblig. School Warrants Series A, 5% 1/1/07 | 2,210 | 2,310 | |||
Jefferson County Swr. Rev.: | |||||
Series 1999 A, 5.75% 2/1/38 (Pre-Refunded to 2/1/09 @ 101) (f) | 5,000 | 5,675 | |||
Series A: | |||||
5% 2/1/33 (Pre-Refunded to 2/1/09 @ 101) (f) | 13,460 | 14,805 | |||
5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (f) | 3,900 | 4,470 | |||
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (f) | 2,025 | 2,240 | |||
Mobile County Gen. Oblig.: | |||||
5% 2/1/07 (MBIA Insured) | 1,000 | 1,054 | |||
5% 2/1/08 (MBIA Insured) | 1,475 | 1,589 | |||
46,801 | |||||
Alaska - 1.6% | |||||
Alaska Student Ln. Corp. Student Ln. Rev. Series A: | |||||
5.15% 7/1/05 (AMBAC Insured) (e) | 1,950 | 1,980 | |||
5.85% 7/1/13 (AMBAC Insured) (e) | 3,285 | 3,616 | |||
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 | 2,500 | 2,880 | |||
North Slope Borough Gen. Oblig.: | |||||
Series 1996 B, 0% 6/30/07 (MBIA Insured) | 3,100 | 2,895 | |||
Series A, 0% 6/30/07 (MBIA Insured) | 5,000 | 4,669 | |||
Series B: | |||||
0% 6/30/06 (MBIA Insured) | 3,500 | 3,378 | |||
0% 6/30/07 (MBIA Insured) | 7,050 | 6,584 | |||
0% 6/30/08 (MBIA Insured) | 4,240 | 3,834 | |||
29,836 | |||||
Arizona - 0.9% | |||||
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured) | 1,115 | 1,221 | |||
Maricopa County Unified School District #48 Scottsdale 7.4% 7/1/10 | 3,750 | 4,562 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Arizona - continued | |||||
Pima County Unified School District #1 Tucson 7.5% 7/1/08 (FGIC Insured) | $ 7,060 | $ 8,220 | |||
Salt River Proj. Agric. Impt. & Pwr. District Elec. Sys. Rev. Series B, 7% 1/1/05 | 760 | 760 | |||
Tucson Wtr. Rev. Series 2002, 5.5% 7/1/06 (FGIC Insured) | 980 | 1,027 | |||
Univ. of Arizona Ctfs. of Prtn. (Univ. of Arizona Parking & Student Hsg. Proj.) Series A, 5% 6/1/09 (AMBAC Insured) | 2,000 | 2,185 | |||
17,975 | |||||
Arkansas - 0.3% | |||||
Arkansas Dev. Fin. Auth. Wastewtr. Sys. Rev. | 1,060 | 1,086 | |||
Little Rock Gen. Oblig. 4% 4/1/07 (FSA Insured) | 1,000 | 1,037 | |||
Rogers Sales & Use Tax Rev. Series A: | |||||
4.25% 9/1/06 (FGIC Insured) | 1,000 | 1,032 | |||
4.25% 9/1/07 (FGIC Insured) | 2,175 | 2,280 | |||
5,435 | |||||
California - 8.2% | |||||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A: | |||||
5.25% 5/1/07 (MBIA Insured) | 27,455 | 29,269 | |||
5.25% 5/1/10 (MBIA Insured) | 1,200 | 1,342 | |||
California Gen. Oblig.: | |||||
5% 2/1/09 | 1,640 | 1,779 | |||
5% 2/1/10 | 2,000 | 2,185 | |||
5% 12/1/11 (MBIA Insured) | 8,000 | 8,933 | |||
5.125% 9/1/12 | 1,000 | 1,088 | |||
5.25% 2/1/10 (FSA Insured) | 7,265 | 8,105 | |||
5.25% 2/1/11 | 5,775 | 6,403 | |||
5.5% 3/1/11 (FGIC Insured) | 3,210 | 3,646 | |||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,525 | 3,994 | |||
5.75% 10/1/08 | 1,085 | 1,206 | |||
6.4% 9/1/08 | 3,075 | 3,473 | |||
6.5% 9/1/10 | 1,740 | 2,033 | |||
8% 11/1/07 (FGIC Insured) | 7,000 | 7,675 | |||
California Poll. Cont. Fing. Auth. Ctfs. of Prtn. (Pacific Gas & Elec. Co. Proj.) Series 2004 B, 3.5%, tender 6/1/07 (FGIC Insured) (c)(e) | 15,000 | 15,169 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
California - continued | |||||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series A, 3.125%, tender 5/1/06 (c)(e) | $ 5,000 | $ 4,978 | |||
California Pub. Works Board Lease Rev.: | |||||
(California State Univ. Proj.) Series 1997 A, 5.5% 10/1/07 | 1,075 | 1,157 | |||
(Coalinga State Hosp. Proj.) Series 2004 A: | |||||
5% 6/1/07 | 4,000 | 4,219 | |||
5% 6/1/08 | 6,000 | 6,434 | |||
California Statewide Cmntys. Dev. Auth. Rev.: | |||||
(Kaiser Fund Hosp./Health Place, Inc. Proj.) | 10,000 | 10,060 | |||
(Kaiser Permanente Health Sys. Proj.) Series 2004 G, 2.3%, tender 5/1/07 (c) | 8,000 | 7,941 | |||
Commerce Refuse To Energy Auth. Rev.: | |||||
5% 7/1/07 (MBIA Insured) (b) | 1,770 | 1,839 | |||
5.25% 7/1/08 (MBIA Insured) (b) | 855 | 907 | |||
Golden State Tobacco Securitization Corp. Series 2003 B, 5% 6/1/08 | 1,300 | 1,384 | |||
Long Beach Hbr. Rev. Series 2000 A: | |||||
5.5% 5/15/05 (e) | 3,490 | 3,529 | |||
5.5% 5/15/06 (e) | 3,000 | 3,116 | |||
Los Angeles Hbr. Dept. Rev. Series A, 5.5% 8/1/06 (AMBAC Insured) (e) | 1,495 | 1,567 | |||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured) | 3,600 | 2,775 | |||
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (g) | 8,955 | 9,390 | |||
155,596 | |||||
Colorado - 0.5% | |||||
Arapahoe County Cap. Impt. Trust Fund Hwy. Rev. | 4,500 | 3,681 | |||
E-470 Pub. Hwy. Auth. Rev. Series 2000 B: | |||||
0% 9/1/06 (Escrowed to Maturity) (f) | 2,200 | 2,111 | |||
0% 9/1/07 (Escrowed to Maturity) (f) | 3,200 | 2,977 | |||
8,769 | |||||
Connecticut - 0.7% | |||||
Connecticut Gen. Oblig. Series 2002 C, 5% 12/15/08 | 1,930 | 2,107 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Connecticut - continued | |||||
Connecticut Health & Edl. Facilities Auth. Rev. (Connecticut Children's Med. Ctr. Proj.) Series B: | |||||
4% 7/1/07 (MBIA Insured) | $ 1,275 | $ 1,324 | |||
4.5% 7/1/08 (MBIA Insured) | 1,045 | 1,113 | |||
5% 7/1/09 (MBIA Insured) | 1,000 | 1,093 | |||
Connecticut Spl. Oblig. Series 2004 A: | |||||
4% 12/30/05 | 3,205 | 3,264 | |||
5% 12/30/07 | 4,535 | 4,874 | |||
13,775 | |||||
District Of Columbia - 1.9% | |||||
District of Columbia Ctfs. of Prtn.: | |||||
(District's Pub. Safety and Emergency Preparedness Communications Ctr. and Related Technology Proj.) Series 2003, 3% 1/1/06 (AMBAC Insured) | 1,305 | 1,315 | |||
5% 1/1/06 (AMBAC Insured) | 1,000 | 1,027 | |||
5% 1/1/07 (AMBAC Insured) | 1,000 | 1,049 | |||
5.25% 1/1/08 (AMBAC Insured) | 935 | 1,009 | |||
District of Columbia Gen. Oblig.: | |||||
Series 1993 B2, 5.5% 6/1/07 (FSA Insured) | 1,830 | 1,958 | |||
Series 2001 B, 5.5% 6/1/07 (FSA Insured) | 1,345 | 1,439 | |||
Series A: | |||||
5% 6/1/06 | 3,480 | 3,602 | |||
5% 6/1/07 | 2,810 | 2,963 | |||
5.25% 6/1/09 (FSA Insured) | 1,000 | 1,101 | |||
District of Columbia Rev. (Medstar Univ. Hosp. Proj.) Series D, 6.875%, tender 2/16/07 (c)(f) | 9,000 | 9,854 | |||
Metropolitan Washington Arpts. Auth. Gen. Arpt. Rev. Series B, 5.5% 10/1/08 (FGIC Insured) (e) | 6,460 | 6,966 | |||
Metropolitan Washington Arpts. Auth. Sys. Rev. Series D: | |||||
4% 10/1/06 (FSA Insured) (e) | 1,750 | 1,795 | |||
4% 10/1/07 (FSA Insured) (e) | 1,000 | 1,033 | |||
35,111 | |||||
Florida - 6.2% | |||||
Brevard County Util. Rev. 5% 3/1/06 (FGIC Insured) | 530 | 547 | |||
Broward County School District Series A, 5% 2/15/08 | 5,810 | 6,256 | |||
Coral Gables Health Facilities Hosp. (Baptist Health South Florida Obligated Group Proj.) 5% 8/15/06 | 1,000 | 1,039 | |||
Dade County School District: | |||||
5% 8/1/07 (MBIA Insured) | 1,500 | 1,599 | |||
5.2% 7/15/07 (AMBAC Insured) | 8,000 | 8,560 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Florida - continued | |||||
Florida Board of Ed. Lottery Rev. Series B: | |||||
6% 7/1/14 (FGIC Insured) | $ 500 | $ 575 | |||
6% 7/1/15 (FGIC Insured) | 1,200 | 1,379 | |||
Florida Dept. of Envir. Protection Preservation Rev. | 19,020 | 20,246 | |||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt Obligated Group Proj.) 3.35%, tender 9/1/05 (c) | 20,300 | 20,441 | |||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.): | |||||
4%, tender 8/1/07 (c) | 11,000 | 11,229 | |||
4.25%, tender 8/1/07 (c)(e) | 6,000 | 6,124 | |||
Indian River County School District 4% 4/1/06 (FSA Insured) | 1,470 | 1,503 | |||
Miami-Dade County Cap. Asset Acquisition Fixed Rate Spl. Oblig. Series 2002 A: | |||||
5% 4/1/06 (AMBAC Insured) | 3,365 | 3,481 | |||
5% 4/1/08 (AMBAC Insured) | 2,825 | 3,052 | |||
Miami-Dade County School Board Ctfs. of Prtn. 5%, tender 5/1/11 (MBIA Insured) (c) | 1,500 | 1,635 | |||
Miami-Dade County School District Series 1994 A, 5.65% 6/1/06 (MBIA Insured) | 1,545 | 1,617 | |||
Orlando Utils. Commission Util. Sys. Rev. 5.25% 7/1/09 | 6,000 | 6,635 | |||
Palm Beach County Rev. (Cmnty. Foundation Palm Beach Proj.) 2%, tender 9/1/05, LOC Northern Trust Co., Chicago (c) | 2,910 | 2,908 | |||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev. 5.75% 4/1/06 (AMBAC Insured) (e) | 1,500 | 1,558 | |||
Polk County Cap. Impt. Rev. Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c) | 9,000 | 10,024 | |||
Seminole County School Board Ctfs. of Prtn. Series A: | |||||
4.5% 7/1/06 (MBIA Insured) (b) | 1,150 | 1,177 | |||
4.5% 7/1/08 (MBIA Insured) (b) | 1,250 | 1,317 | |||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. | 2,000 | 1,996 | |||
Volusia County School Board Ctfs. of Prtn. (School Board of Volusia County Master Lease Prog.) 4.5% 8/1/07 (FSA Insured) (b) | 2,135 | 2,223 | |||
117,121 | |||||
Georgia - 1.3% | |||||
Atlanta Arpt. Facilities Rev. 6.5% 1/1/06 (Escrowed to Maturity) (f) | 6,000 | 6,249 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Georgia - continued | |||||
Columbia County Gen. Oblig. 5% 1/1/09 (FSA Insured) | $ 1,505 | $ 1,641 | |||
Fulton DeKalb Hosp. Auth. Hosp. Rev. 5% 1/1/08 (FSA Insured) | 2,250 | 2,415 | |||
Georgia Gen. Oblig.: | |||||
Series B, 6.25% 4/1/06 | 1,750 | 1,837 | |||
Series C, 6.5% 7/1/07 | 2,185 | 2,406 | |||
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1993 CC, 4.8% 1/1/06 (MBIA Insured) | 7,100 | 7,281 | |||
Gwinnett County Gen. Oblig. 4% 1/1/06 | 1,035 | 1,054 | |||
Henry County Wtr. & Swr. Auth. Rev. 5% 2/1/08 (MBIA Insured) | 1,095 | 1,181 | |||
24,064 | |||||
Hawaii - 2.3% | |||||
Hawaii Arpts. Sys. Rev. Series 2000 B, 8% 7/1/10 (FGIC Insured) (e) | 3,850 | 4,700 | |||
Hawaii Gen. Oblig.: | |||||
Series CS, 5% 4/1/08 (MBIA Insured) | 2,200 | 2,374 | |||
Series CU, 5.75% 10/1/11 (MBIA Insured) | 3,210 | 3,643 | |||
Honolulu City & County Gen. Oblig. Series B, 8% 10/1/09 | 26,940 | 33,021 | |||
43,738 | |||||
Illinois - 9.7% | |||||
Chicago Gen. Oblig.: | |||||
(Neighborhoods Alive 21 Prog.): | |||||
5% 1/1/07 (MBIA Insured) | 1,360 | 1,430 | |||
5% 1/1/08 (MBIA Insured) | 1,190 | 1,279 | |||
Series A, 5.25% 1/1/12 (FSA Insured) | 1,000 | 1,119 | |||
5% 1/1/07 (FGIC Insured) | 1,000 | 1,052 | |||
Chicago Midway Arpt. Rev.: | |||||
Series 2001 B, 5% 1/1/07 (FSA Insured) | 1,000 | 1,051 | |||
Series B: | |||||
5% 1/1/10 (AMBAC Insured) | 1,225 | 1,334 | |||
5% 1/1/11 (AMBAC Insured) | 3,625 | 3,955 | |||
Chicago O'Hare Int'l. Arpt. Rev.: | |||||
Series 2001 C, 5% 1/1/07 (AMBAC Insured) (e) | 2,670 | 2,793 | |||
Series A, 5.5% 1/1/08 (AMBAC Insured) | 5,000 | 5,253 | |||
5.5% 1/1/10 (AMBAC Insured) (e) | 5,000 | 5,464 | |||
Chicago Park District: | |||||
Series B, 5% 1/1/11 (AMBAC Insured) | 5,750 | 6,326 | |||
Series C, 5% 1/1/11 (AMBAC Insured) | 2,515 | 2,767 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Illinois - continued | |||||
Chicago School Fin. Auth. Series B, 5% 6/1/09 (FSA Insured) | $ 12,825 | $ 14,003 | |||
Chicago Tax Increment Rev.: | |||||
Series 2000 A, 0% 12/1/08 (AMBAC Insured) | 10,000 | 8,919 | |||
Series A, 0% 12/1/05 (AMBAC Insured) | 3,000 | 2,941 | |||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | |||||
(Fed. Transit Administration Section 5307 Formula Funds Proj.) Series A, 5.25% 6/1/10 (AMBAC Insured) | 4,785 | 5,311 | |||
Series A: | |||||
4% 6/1/06 (AMBAC Insured) | 1,050 | 1,055 | |||
4.25% 6/1/08 (AMBAC Insured) | 3,600 | 3,702 | |||
Chicago Wastewtr. Transmission Rev. 5.5% 1/1/09 (FGIC Insured) | 2,975 | 3,292 | |||
Cook County Cmnty. College District #508 Ctfs. of Prtn. 8.75% 1/1/07 (FGIC Insured) | 8,000 | 8,984 | |||
Du Page Wtr. Commission Wtr. Rev. 5% 5/1/08 (AMBAC Insured) | 4,525 | 4,876 | |||
Illinois Dev. Fin. Auth. Gas Supply Rev. (The Peoples Gas Lt. & Coke Co. Proj.) Series 2003 B, 3.05%, tender 2/1/08 (AMBAC Insured) (c) | 6,100 | 6,158 | |||
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) | 1,900 | 2,098 | |||
Illinois Edl. Facilities Auth. Revs.: | |||||
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c) | 12,800 | 12,827 | |||
(Univ. of Chicago Proj.): | |||||
Series 2004 B1, 3.45%, tender 7/1/08 (c) | 6,100 | 6,241 | |||
Series B, 3.1%, tender 7/1/07 (c) | 3,900 | 3,946 | |||
5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (f) | 2,640 | 2,983 | |||
Illinois Fin. Auth. Solid Waste Rev. (Republic Services, Inc. Proj.) 3.65%, tender 5/1/07 (c)(e) | 6,100 | 6,139 | |||
Illinois Gen. Oblig.: | |||||
First Series: | |||||
5% 8/1/06 | 8,160 | 8,499 | |||
5.25% 4/1/08 (MBIA Insured) | 1,035 | 1,124 | |||
5.25% 4/1/10 (MBIA Insured) | 2,600 | 2,886 | |||
5.5% 8/1/10 | 1,415 | 1,588 | |||
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (f) | 7,075 | 8,129 | |||
Series A, 5% 10/1/09 | 2,600 | 2,847 | |||
5% 6/1/07 | 6,265 | 6,639 | |||
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (f) | 1,000 | 1,144 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Illinois - continued | |||||
Illinois Health Facilities Auth. Rev. (Condell Med. Ctr. Proj.): | |||||
5% 5/15/07 | $ 500 | $ 518 | |||
5% 5/15/08 | 700 | 727 | |||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 (FSA Insured) | 2,270 | 2,575 | |||
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (FGIC Insured) | 1,600 | 1,831 | |||
Kane, McHenry, Cook & DeKalb Counties Cmnty. Unit School District #300, Carpentersville 5.5% 12/1/13 (MBIA Insured) | 5,000 | 5,631 | |||
Kendall, Kane & Will Counties Cmnty. Unit School District #308: | |||||
5.25% 10/1/05 (FGIC Insured) | 560 | 573 | |||
5.25% 10/1/06 (FGIC Insured) | 695 | 730 | |||
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11 | 2,365 | 2,598 | |||
Rosemont Gen. Oblig. Series 3: | |||||
0% 12/1/07 (Escrowed to Maturity) (f) | 2,375 | 2,202 | |||
0% 12/1/07 (FGIC Insured) | 625 | 576 | |||
Univ. of Illinois Auxiliary Facilities Sys. Rev. Series 2001 A, 5% 4/1/08 (AMBAC Insured) | 2,035 | 2,193 | |||
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Projs.) 5% 8/15/11 (AMBAC Insured) | 1,360 | 1,501 | |||
Will County School District #122 Series B, 0% 11/1/08 (FSA Insured) | 1,500 | 1,342 | |||
183,151 | |||||
Indiana - 1.6% | |||||
Hamilton Southeastern Consolidated School Bldg. Corp.: | |||||
5% 1/15/10 (FSA Insured) | 1,835 | 2,006 | |||
5% 1/15/11 (FSA Insured) | 1,910 | 2,096 | |||
5% 1/15/12 (FSA Insured) | 1,990 | 2,191 | |||
Indiana Health Facility Fing. Auth. Rev. (Ascension Health Cr. Group Prog.) Series 2002 F: | |||||
5.5% 11/15/05 | 1,000 | 1,029 | |||
5.5% 11/15/06 | 1,000 | 1,054 | |||
Indianapolis Local Pub. Impt. Bond Bank (Indianapolis Arpt. Auth. Proj.) Series I: | |||||
4% 1/1/06 (MBIA Insured) (e) | 1,325 | 1,343 | |||
5% 1/1/08 (MBIA Insured) (e) | 1,550 | 1,644 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Indiana - continued | |||||
Indianapolis Resource Recovery Rev. (Ogden Martin Sys., Inc. Proj.) 6.75% 12/1/07 (AMBAC Insured) | $ 3,000 | $ 3,304 | |||
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured) | 1,405 | 1,536 | |||
Rockport Poll. Cont. Rev. 4.9%, tender 6/1/07 (c) | 4,000 | 4,159 | |||
Saint Joseph County Ind. Edl. Facilities Rev. (Univ. of Notre Dame Du Lac Proj.) 2.5%, tender 12/3/07 (c) | 10,000 | 9,958 | |||
30,320 | |||||
Kansas - 0.5% | |||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.): | |||||
Series A, 4.75%, tender 10/1/07 (c) | 2,400 | 2,511 | |||
Series C, 2.38%, tender 9/1/05 (c) | 4,000 | 3,985 | |||
La Cygne Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.) Series 1994, 2.25%, tender 9/1/05 (c) | 2,500 | 2,491 | |||
8,987 | |||||
Kentucky - 0.7% | |||||
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (e) | 1,185 | 1,271 | |||
Owensboro Elec. Lt. & Pwr. Rev. Series B: | |||||
0% 1/1/07 (AMBAC Insured) | 10,000 | 9,490 | |||
0% 1/1/09 (AMBAC Insured) | 2,000 | 1,779 | |||
12,540 | |||||
Louisiana - 0.2% | |||||
New Orleans Gen. Oblig. 5% 3/1/07 (MBIA Insured) | 3,100 | 3,263 | |||
Maryland - 0.8% | |||||
Baltimore Gen. Oblig. Series A, 5.5% 10/15/18 | 1,700 | 1,959 | |||
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured) | 1,535 | 1,702 | |||
Prince Georges County Gen. Oblig.: | |||||
Series 2004 C, 5% 12/1/10 | 3,770 | 4,191 | |||
Series 2004 D, 5% 12/1/11 | 5,830 | 6,464 | |||
14,316 | |||||
Massachusetts - 5.0% | |||||
Massachusetts Bay Trans. Auth. Series A, 7% 3/1/09 | 6,880 | 8,018 | |||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C: | |||||
5.75% 8/1/06 | 1,200 | 1,251 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Massachusetts - continued | |||||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C: - continued | |||||
5.875% 8/1/08 | $ 1,630 | $ 1,778 | |||
Massachusetts Fed. Hwy. Series 2000 A, 5.75% 6/15/13 | 3,000 | 3,380 | |||
Massachusetts Gen. Oblig.: | |||||
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (f) | 2,570 | 2,916 | |||
Series 2001 A, 5.5% 1/1/11 | 5,000 | 5,628 | |||
Series 2002 B, 5% 2/1/06 | 40,000 | 41,181 | |||
Series 2003 A, 5.375% 8/1/08 | 5,165 | 5,660 | |||
Series 2003 C: | |||||
5% 12/1/06 (XL Cap. Assurance, Inc. Insured) | 1,900 | 1,994 | |||
5.5% 10/1/10 (MBIA Insured) | 1,130 | 1,276 | |||
Series A: | |||||
4.5% 1/1/09 (Pre-Refunded to 1/1/08 @ 101) (f) | 2,055 | 2,193 | |||
5.5% 2/1/07 (MBIA Insured) | 7,500 | 7,978 | |||
Series C, 5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (f) | 2,495 | 2,793 | |||
Massachusetts Health & Edl. Facilities Auth. Rev.: | |||||
(Caritas Christi Oblig. Group Proj.) 5.5% 7/1/05 | 1,000 | 1,006 | |||
(Dana Farber Cancer Proj.) Series G1, 6.25% 12/1/14 (Pre-Refunded to 12/1/05 @ 102) (f) | 3,000 | 3,170 | |||
New England Ed. Ln. Marketing Corp. Series A, 5.7% 7/1/05 (e) | 2,800 | 2,848 | |||
Springfield Gen. Oblig. 5% 1/15/06 (MBIA Insured) | 1,000 | 1,029 | |||
94,099 | |||||
Michigan - 3.6% | |||||
Battle Creek Downtown Dev. Auth. 6% 5/1/06 (MBIA Insured) | 2,000 | 2,101 | |||
Chippewa Valley Schools: | |||||
4% 5/1/06 | 1,000 | 1,023 | |||
4% 5/1/07 | 2,610 | 2,704 | |||
5% 5/1/08 | 1,260 | 1,360 | |||
Detroit City School District 5.05% 5/1/06 | 4,845 | 5,016 | |||
Detroit Gen. Oblig.: | |||||
Series 2004 A, 5% 4/1/08 (FSA Insured) | 7,275 | 7,835 | |||
Series 2004 B, 5% 4/1/07 (FSA Insured) | 4,055 | 4,292 | |||
Series A: | |||||
5% 4/1/06 (FSA Insured) (b) | 2,200 | 2,266 | |||
5% 4/1/07 (FSA Insured) (b) | 6,910 | 7,290 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Michigan - continued | |||||
Detroit Gen. Oblig.: - continued | |||||
5% 4/1/08 (MBIA Insured) | $ 14,545 | $ 15,664 | |||
5% 4/1/09 (MBIA Insured) | 10,620 | 11,583 | |||
Detroit Swr. Disp. Rev. Series A, 5.75% 7/1/26 | 2,000 | 2,292 | |||
Ferndale Gen. Oblig. 3.5% 4/1/06 (FGIC Insured) | 1,960 | 1,990 | |||
Hazel Park School District 5% 5/1/08 | 1,275 | 1,376 | |||
Wayne-Westland Cmnty. Schools 5% 5/1/10 (FSA Insured) | 1,225 | 1,345 | |||
68,137 | |||||
Minnesota - 0.7% | |||||
Hopkins Independent School District #270 Series B, 4% 2/1/06 | 2,575 | 2,625 | |||
Mankato Independent School District #77 Series A, 4% 2/1/06 (FSA Insured) | 1,420 | 1,448 | |||
Metropolitan Council Minneapolis-Saint Paul Metropolitan Area Series 2005 A, 5% 9/1/06 (b) | 2,340 | 2,413 | |||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): | |||||
5.25% 12/1/08 | 1,200 | 1,280 | |||
5.25% 12/1/10 | 500 | 533 | |||
Minnesota Pub. Facilities Auth. Wtr. Poll. Cont. Rev. Series A, 4.5% 3/1/07 | 2,240 | 2,346 | |||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. 5% 1/1/08 (AMBAC Insured) | 2,410 | 2,592 | |||
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured) | 940 | 1,039 | |||
14,276 | |||||
Mississippi - 0.5% | |||||
Jackson Wtr. & Swr. Sys. Rev. Series 2003, 5% 9/1/07 (FSA Insured) | 5,825 | 6,203 | |||
Mississippi Gen. Oblig. 5.25% 9/1/07 | 1,750 | 1,877 | |||
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (e) | 1,190 | 1,271 | |||
9,351 | |||||
Missouri - 0.6% | |||||
Kansas City School District Bldg. Corp. Rev.: | |||||
(School District Elementary School Proj.): | |||||
Series 2003 B, 5% 2/1/12 (FGIC Insured) | 3,100 | 3,424 | |||
Series B, 5% 2/1/11 (FGIC Insured) | 1,850 | 2,030 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Missouri - continued | |||||
Kansas City School District Bldg. Corp. Rev.: - continued | |||||
Series A: | |||||
5% 2/1/07 (FGIC Insured) | $ 1,020 | $ 1,075 | |||
5% 2/1/08 (FGIC Insured) | 2,000 | 2,144 | |||
Saint Louis Muni. Fin. Corp. Leasehold Rev.: | |||||
(Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (FGIC Insured) | 1,050 | 1,193 | |||
(Civil Courts Bldg. Proj.) Series 2003 A, 5% 8/1/06 (FSA Insured) | 1,635 | 1,704 | |||
11,570 | |||||
Montana - 0.2% | |||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Projs.) Series A, 5.2%, tender 5/1/09 (c) | 2,900 | 3,085 | |||
Nebraska - 2.0% | |||||
Lancaster County School District #1 (Lincoln Pub. Schools Proj.) 4% 1/15/06 | 1,000 | 1,019 | |||
Nebraska Pub. Pwr. District Rev.: | |||||
Series 1998 A, 5.25% 1/1/06 (MBIA Insured) | 5,000 | 5,149 | |||
Series A: | |||||
0% 1/1/06 (MBIA Insured) | 24,465 | 23,946 | |||
0% 1/1/07 (MBIA Insured) | 4,000 | 3,803 | |||
Omaha Pub. Pwr. District Elec. Rev. Series B, 4.5% 2/1/09 | 3,500 | 3,753 | |||
37,670 | |||||
Nevada - 1.6% | |||||
Clark County Arpt. Rev. Series C: | |||||
5% 7/1/05 (AMBAC Insured) (e) | 800 | 811 | |||
5% 7/1/06 (AMBAC Insured) (e) | 800 | 831 | |||
5% 7/1/08 (AMBAC Insured) (e) | 2,215 | 2,371 | |||
5% 7/1/09 (AMBAC Insured) (e) | 2,700 | 2,910 | |||
5% 7/1/10 (AMBAC Insured) (e) | 1,225 | 1,322 | |||
5% 7/1/11 (AMBAC Insured) (e) | 1,790 | 1,935 | |||
Clark County School District: | |||||
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (f) | 1,600 | 1,831 | |||
Series C, 5% 6/15/10 (MBIA Insured) | 1,000 | 1,097 | |||
Series D, 5% 6/15/09 (MBIA Insured) | 13,890 | 15,207 | |||
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured) | 2,410 | 2,649 | |||
30,964 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New Jersey - 4.2% | |||||
Casino Reinvestment Dev. Auth. Hotel Room Fee Rev.: | |||||
5% 1/1/08 (AMBAC Insured) | $ 920 | $ 986 | |||
5% 1/1/09 (AMBAC Insured) | 1,000 | 1,085 | |||
Elizabeth Gen. Oblig. 5.25% 8/15/09 (MBIA Insured) (b) | 1,225 | 1,322 | |||
Garden State Preservation Trust Open Space & Farmland Preservation Series B, 6.25% 11/1/09 (MBIA Insured) (b) | 4,000 | 4,425 | |||
New Jersey Econ. Dev. Auth. Rev. 5% 6/15/07 | 7,500 | 7,889 | |||
New Jersey Economic Dev. Auth. Solid Waste Rev. (Waste Mgmt. of New Jersey, Inc. Proj.) Series 2004 A, 2.85%, tender 6/1/05 (c)(e) | 5,000 | 4,991 | |||
New Jersey Tpk. Auth. Tpk. Rev. Series 2004 A, 3.15%, tender 1/1/10 (AMBAC Insured) (c) | 16,250 | 16,310 | |||
New Jersey Trans. Trust Fund Auth.: | |||||
Series 2001 A, 5% 6/15/06 | 6,300 | 6,544 | |||
Series 2005 A, 5% 12/15/07 (MBIA Insured) (b) | 5,000 | 5,317 | |||
Series A, 5.25% 12/15/08 (MBIA Insured) (b) | 15,000 | 16,343 | |||
Series B, 5.25% 12/15/10 (FGIC Insured) | 4,550 | 5,090 | |||
New Jersey Transit Corp. Series 2000 B, 5.5% 2/1/08 (AMBAC Insured) | 1,000 | 1,089 | |||
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (f) | 7,000 | 8,002 | |||
79,393 | |||||
New Jersey/Pennsylvania - 0.3% | |||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5% 7/1/09 | 5,170 | 5,581 | |||
New Mexico - 1.8% | |||||
Farmington Poll. Cont. Rev. (Pub. Svc. Co. of New Mexico San Juan and Four Corners Projs.) | 7,000 | 6,935 | |||
San Juan County Gross Receipts Tax Rev. Series B, 2.5% 8/15/05 | 13,600 | 13,624 | |||
Sandoval Co. Incentive Payment Rev. 4.25% 12/1/06 | 13,750 | 14,139 | |||
34,698 | |||||
New York - 6.9% | |||||
Grand Central District Mgmt. Assoc., Inc.: | |||||
5% 1/1/10 | 1,200 | 1,303 | |||
5% 1/1/12 | 1,175 | 1,286 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New York - continued | |||||
Metropolitan Trans. Auth. Commuter Facilities Rev. Series A: | |||||
5% 7/1/06 (Escrowed to Maturity) (f) | $ 270 | $ 281 | |||
5.375% 7/1/09 (Escrowed to Maturity) (f) | 3,635 | 4,071 | |||
Metropolitan Trans. Auth. Svc. Contract Rev. Series B, 5% 1/1/06 | 10,110 | 10,387 | |||
Nassau County Gen. Oblig. Series Z: | |||||
5% 9/1/11 (FGIC Insured) | 800 | 869 | |||
5% 9/1/12 (FGIC Insured) | 1,500 | 1,667 | |||
New York City Gen. Oblig.: | |||||
Series 2000 A, 6.5% 5/15/11 | 2,450 | 2,837 | |||
Series 2004 G, 5% 8/1/09 | 8,000 | 8,679 | |||
Series A, 5.25% 11/1/14 (MBIA Insured) | 600 | 664 | |||
Series E, 6% 8/1/11 | 60 | 64 | |||
Series G, 5.25% 8/1/14 (AMBAC Insured) | 1,000 | 1,100 | |||
Series H, 5.75% 3/15/11 (FGIC Insured) | 1,700 | 1,937 | |||
New York State Dorm. Auth. Revs.: | |||||
(City Univ. Sys. Consolidation Proj.): | |||||
Series 2000 A, 6.125% 7/1/12 (AMBAC Insured) | 5,540 | 6,393 | |||
Series A, 5.75% 7/1/13 | 3,500 | 3,959 | |||
Series 2003 A: | |||||
5% 1/1/06 | 1,250 | 1,284 | |||
5% 1/1/07 | 10,855 | 11,387 | |||
5% 3/15/08 | 2,000 | 2,151 | |||
New York State Urban Dev. Corp. Rev. (Correctional Facilities-Svc. Contract Proj.) Series B, 4.75% 1/1/28 (Pre-Refunded to 1/1/09 @ 101) (f) | 2,615 | 2,868 | |||
New York Transitional Fin. Auth. Rev. Series 2003 E: | |||||
4.5% 2/1/07 | 1,750 | 1,828 | |||
4.5% 2/1/08 | 1,500 | 1,594 | |||
5% 2/1/09 | 2,035 | 2,218 | |||
Tobacco Settlement Fing. Corp.: | |||||
Series 2004 B1, 5% 6/1/09 | 3,800 | 4,085 | |||
Series A1: | |||||
5.25% 6/1/12 | 5,000 | 5,183 | |||
5.25% 6/1/13 | 17,500 | 18,666 | |||
Series B1, 5% 6/1/06 | 17,815 | 18,398 | |||
Triborough Bridge & Tunnel Auth. Revs.: | |||||
Series A, 5.5% 1/1/14 (Pre-Refunded to 1/1/12 | 3,745 | 4,296 | |||
Series Y, 5.9% 1/1/08 (Escrowed to Maturity) (f) | 10,000 | 11,025 | |||
130,480 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New York & New Jersey - 0.3% | |||||
Port Auth. of New York & New Jersey: | |||||
124th Series, 5% 8/1/13 (FGIC Insured) (e) | $ 1,200 | $ 1,264 | |||
127th Series, 5% 12/15/08 (AMBAC Insured) (e) | 3,510 | 3,764 | |||
5,028 | |||||
North Carolina - 1.3% | |||||
Charlotte Ctfs. of Prtn. (FY 2004 Equip. Acquisition Proj.) Series 2004 C, 4% 3/1/08 | 4,940 | 5,171 | |||
North Carolina Ctfs. of Prtn. (Repair and Renovation Proj.) Series 2004 B, 4% 6/1/06 | 1,300 | 1,333 | |||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | |||||
Series 1993 B, 7% 1/1/08 (MBIA Insured) | 1,500 | 1,693 | |||
Series A, 5.5% 1/1/10 | 3,000 | 3,262 | |||
Series B: | |||||
6% 1/1/05 | 2,000 | 2,000 | |||
6% 1/1/06 | 5,995 | 6,190 | |||
Series C, 5% 1/1/08 | 1,190 | 1,259 | |||
Series D, 5.375% 1/1/10 | 3,715 | 4,019 | |||
24,927 | |||||
Ohio - 2.0% | |||||
Cleveland Pub. Pwr. Sys. Rev. (First Mtg. Prog.) | 2,250 | 1,930 | |||
Franklin County Rev. (OCLC Online Computer Library Ctr., Inc. Proj.) 5% 4/15/07 | 1,960 | 2,046 | |||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.) 5.5% 2/15/07 | 1,420 | 1,498 | |||
Ohio Air Quality Dev. Auth. Rev. (Pennsylvania Pwr. Co. Proj.) 3.375%, tender 7/1/05 (c) | 2,300 | 2,295 | |||
Ohio Bldg. Auth.: | |||||
(Administration Bldg. Fund Prog.) Series 2004 A, 5% 4/1/08 | 1,935 | 2,086 | |||
(Adult Correctional Bldg. Fund Prog.) Series A, 5.75% 4/1/08 | 3,555 | 3,914 | |||
Ohio Gen. Oblig.: | |||||
Series 2000 E, 5.5% 5/1/09 | 1,905 | 2,125 | |||
Series IIA, 5.25% 12/1/05 | 5,000 | 5,138 | |||
Ohio Rev. Series 2003 1, 5% 6/15/08 | 5,000 | 5,413 | |||
Ohio Univ. Gen. Receipts Athens: | |||||
5% 12/1/06 (FSA Insured) | 3,600 | 3,782 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Ohio - continued | |||||
Ohio Univ. Gen. Receipts Athens: - continued | |||||
5% 12/1/07 (FSA Insured) | $ 1,285 | $ 1,376 | |||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. (Toledo Edison Co. Proj.) Series B, 4.5%, tender 9/1/05 (c) | 7,000 | 7,046 | |||
38,649 | |||||
Oklahoma - 0.2% | |||||
Oklahoma Dev. Fin. Auth. Rev. (Samuel Roberts Noble, Inc. Proj.) 5% 5/1/06 | 3,200 | 3,314 | |||
Oregon - 0.7% | |||||
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured) | 1,210 | 1,333 | |||
Eugene Elec. Util. Rev. Series A: | |||||
5.25% 8/1/06 (FSA Insured) | 1,280 | 1,339 | |||
5.25% 8/1/07 (FSA Insured) | 1,350 | 1,447 | |||
5.25% 8/1/08 (FSA Insured) | 1,425 | 1,558 | |||
Oregon Dept. Administrative Services 5% 9/1/07 (FSA Insured) | 1,750 | 1,868 | |||
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B: | |||||
5% 5/1/09 (FSA Insured) | 1,000 | 1,090 | |||
5% 5/1/11 (FSA Insured) | 1,000 | 1,098 | |||
Oregon Gen. Oblig. 8.25% 1/1/07 | 1,000 | 1,113 | |||
Salem Gen. Oblig. 5% 5/1/10 (FSA Insured) | 2,550 | 2,806 | |||
13,652 | |||||
Pennsylvania - 3.8% | |||||
Allegheny County Hosp. Dev. Auth. Rev. (Univ. of Pittsburgh Med. Ctr. Proj.) Series B: | |||||
5.5% 6/15/05 | 2,545 | 2,579 | |||
5.5% 6/15/06 | 3,065 | 3,179 | |||
5.5% 6/15/07 | 2,000 | 2,135 | |||
Allegheny County San. Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured) | 1,495 | 1,734 | |||
Hazleton Area School District 6.5% 3/1/06 (FSA Insured) | 1,155 | 1,210 | |||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(e) | 10,000 | 10,103 | |||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A, 5% 6/1/06 (AMBAC Insured) | 3,750 | 3,880 | |||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 5%, tender 6/1/05 (c)(e) | 6,200 | 6,218 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Pennsylvania - continued | |||||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | |||||
(UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09 | $ 1,750 | $ 1,895 | |||
Series B: | |||||
5% 9/1/06 (b) | 4,510 | 4,643 | |||
5% 9/1/07 (b) | 5,570 | 5,852 | |||
5.25% 9/1/08 (b) | 5,860 | 6,304 | |||
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured) | 2,750 | 3,061 | |||
Philadelphia Muni. Auth. Rev.: | |||||
Series A: | |||||
5% 5/15/07 (FSA Insured) | 5,500 | 5,818 | |||
5% 5/15/08 (FSA Insured) | 5,000 | 5,374 | |||
Series B, 5.25% 11/15/11 (FSA Insured) | 3,400 | 3,800 | |||
Pittsburgh Gen. Oblig. Series A, 6% 3/1/07 (MBIA Insured) | 2,000 | 2,153 | |||
Wyoming Valley San. Auth. Swr. Rev. 5% 11/15/06 (MBIA Insured) | 1,865 | 1,957 | |||
71,895 | |||||
Puerto Rico - 0.1% | |||||
Puerto Rico Pub. Bldgs Auth. Rev. Series K, 4%, tender 7/1/07 (MBIA Insured) (c) | 2,000 | 2,077 | |||
Rhode Island - 0.2% | |||||
Rhode Island Health & Edl. Bldg. Corp. Rev. (Johnson & Wales Univ. Proj.): | |||||
5% 4/1/06 (XL Cap. Assurance, Inc. Insured) | 2,225 | 2,300 | |||
5% 4/1/08 (XL Cap. Assurance, Inc. Insured) | 1,700 | 1,828 | |||
4,128 | |||||
South Carolina - 1.9% | |||||
Berkeley County School District 7% 4/1/07 | 2,615 | 2,871 | |||
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A: | |||||
5% 8/15/06 | 1,000 | 1,036 | |||
5% 8/15/07 | 1,700 | 1,797 | |||
5% 8/15/08 | 1,690 | 1,803 | |||
Greenville County Pub. Facilities Corp. Certificate of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 (AMBAC Insured) (b) | 1,450 | 1,593 | |||
Piedmont Muni. Pwr. Agcy. Elec. Rev. 5.6% 1/1/09 (MBIA Insured) | 2,345 | 2,608 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
South Carolina - continued | |||||
Rock Hill Util. Sys. Rev. Series 2003 A: | |||||
5% 1/1/08 (FSA Insured) | $ 1,850 | $ 1,987 | |||
5% 1/1/09 (FSA Insured) | 1,945 | 2,119 | |||
South Carolina Pub. Svc. Auth. Rev.: | |||||
Series 2002 A: | |||||
5% 1/1/06 (FSA Insured) | 1,705 | 1,752 | |||
5% 1/1/07 (FSA Insured) | 4,105 | 4,322 | |||
Series A: | |||||
5.5% 1/1/11 (MBIA Insured) | 3,000 | 3,349 | |||
5.5% 1/1/14 (FGIC Insured) (b) | 1,335 | 1,476 | |||
Series D: | |||||
5% 1/1/06 | 2,750 | 2,825 | |||
5% 1/1/07 | 5,000 | 5,265 | |||
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured) | 1,000 | 1,094 | |||
35,897 | |||||
Tennessee - 1.8% | |||||
Elizabethton Health & Edl. Facilities Board Rev. (First Mtg. Prog.) 6% 7/1/11 (MBIA Insured) | 2,005 | 2,310 | |||
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured) | 2,000 | 2,187 | |||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A: | |||||
4% 9/1/06 (MBIA Insured) | 1,500 | 1,542 | |||
4.5% 9/1/08 (MBIA Insured) | 1,620 | 1,729 | |||
4.5% 9/1/09 (MBIA Insured) | 1,685 | 1,806 | |||
Metropolitan Nashville Arpt. Auth. Rev. Series C, 5% 7/1/06 (FGIC Insured) (e) | 1,675 | 1,740 | |||
Shelby County Gen. Oblig. Series A: | |||||
0% 5/1/10 (Pre-Refunded to 5/1/05 @ 74.444) (f) | 15,750 | 11,645 | |||
0% 5/1/12 (Pre-Refunded to 5/1/05 @ 65.1568) (f) | 15,130 | 9,791 | |||
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured) | 1,200 | 1,318 | |||
34,068 | |||||
Texas - 13.6% | |||||
Alief Independent School District Series 2004 B, 5% 2/15/10 | 1,500 | 1,643 | |||
Arlington Independent School District 0% 2/15/16 | 6,820 | 3,498 | |||
Austin Arpt. Sys. Rev. Series A: | |||||
6.5% 11/15/05 (Escrowed to Maturity) (e)(f) | 940 | 975 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
Austin Arpt. Sys. Rev. Series A: - continued | |||||
6.5% 11/15/05 (MBIA Insured) (e) | $ 6,870 | $ 7,123 | |||
Austin Util. Sys. Rev.: | |||||
Series 1992 A, 0% 11/15/09 (MBIA Insured) | 4,130 | 3,543 | |||
Series A, 0% 11/15/10 (MBIA Insured) | 5,300 | 4,340 | |||
Bexar County Series A: | |||||
5% 6/15/09 (FSA Insured) | 2,615 | 2,858 | |||
5% 6/15/10 (FSA Insured) | 1,000 | 1,098 | |||
Birdville Independent School District 5% 2/15/10 | 1,300 | 1,424 | |||
Brazos River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series 1995 B, 5.05%, tender 6/19/06 (c)(e) | 6,255 | 6,439 | |||
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured) | 1,500 | 1,699 | |||
College Station Independent School District 5% 2/15/10 | 1,000 | 1,095 | |||
Conroe Independent School District Lot B, 0% 2/15/08 | 3,000 | 2,748 | |||
Corpus Christi Gen. Oblig.: | |||||
4% 3/1/06 (FSA Insured) | 1,285 | 1,311 | |||
5% 3/1/06 (AMBAC Insured) | 3,365 | 3,464 | |||
5% 3/1/07 (FSA Insured) | 2,735 | 2,887 | |||
Cypress-Fairbanks Independent School District: | |||||
Series B, 0% 8/1/07 (AMBAC Insured) | 10,000 | 9,333 | |||
4.5% 2/15/06 | 2,245 | 2,302 | |||
5% 2/15/08 | 2,000 | 2,152 | |||
Dallas Independent School District Series 2005, 5.25% 8/15/08 (b) | 2,000 | 2,146 | |||
Del Valle Independent School District 5.5% 2/1/09 | 1,205 | 1,334 | |||
El Paso Wtr. & Swr. Rev.: | |||||
5% 3/1/06 (AMBAC Insured) | 1,000 | 1,031 | |||
5% 3/1/07 (AMBAC Insured) | 2,000 | 2,111 | |||
5% 3/1/08 (AMBAC Insured) | 2,770 | 2,978 | |||
Fort Worth Gen. Oblig. Series A, 5% 3/1/06 | 1,000 | 1,032 | |||
Frisco Gen. Oblig.: | |||||
Series 2003 A: | |||||
4% 2/15/07 (FSA Insured) | 1,320 | 1,365 | |||
4% 2/15/08 (FSA Insured) | 1,145 | 1,198 | |||
5% 2/15/10 (FSA Insured) | 1,710 | 1,873 | |||
4% 2/15/06 (FSA Insured) | 2,975 | 3,034 | |||
4% 2/15/07 (FSA Insured) | 3,115 | 3,222 | |||
Garland Independent School District 0% 2/15/07 | 1,610 | 1,521 | |||
Harris County Gen. Oblig. Series A, 0% 8/15/07 (FGIC Insured) | 4,400 | 4,102 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
Harris County Health Facilities Dev. Corp. Rev. (Saint Luke's Episcopal Hosp. Proj.) Series 2001 A, 5.5% 2/15/09 | $ 3,710 | $ 4,036 | |||
Houston Gen. Oblig.: | |||||
5.5% 3/1/06 | 2,580 | 2,675 | |||
5.5% 3/1/06 (Escrowed to Maturity) (f) | 120 | 124 | |||
Houston Wtr. & Swr. Sys. Rev. Series B, 5.5% 12/1/08 (Escrowed to Maturity) (f) | 6,000 | 6,677 | |||
Katy Independent School District Series A, 4% 2/15/06 | 1,335 | 1,361 | |||
Killeen Independent School District 4% 2/15/08 | 1,200 | 1,256 | |||
La Porte Independent School District 4% 2/15/08 | 2,000 | 2,093 | |||
Lewisville Gen. Oblig. 4% 2/15/06 (FSA Insured) | 1,300 | 1,326 | |||
Lower Colorado River Auth. Rev. 5.25% 1/1/15 | 5,000 | 5,598 | |||
Lubbock Gen. Oblig.: | |||||
5% 2/15/09 (MBIA Insured) | 1,615 | 1,758 | |||
5% 2/15/10 (MBIA Insured) | 1,845 | 2,020 | |||
Mesquite Independent School District Series A, 0% 8/15/06 | 1,115 | 1,072 | |||
New Braunfels Independent School District 0% 2/1/07 | 2,000 | 1,892 | |||
North East Texas Independent School District 7% 2/1/11 (Pre-Refunded to 2/1/10 @ 100) (f) | 3,600 | 4,314 | |||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C: | |||||
5% 1/1/09 (FSA Insured) | 2,000 | 2,171 | |||
5%, tender 7/1/08 (FSA Insured) (c) | 2,650 | 2,855 | |||
Northside Independent School District Series B, 2.45%, tender 8/1/06 (Liquidity Facility Dexia Cr. Local de France) (c) | 7,300 | 7,328 | |||
Port Houston Auth. Harris County 6% 10/1/06 (FGIC Insured) (e) | 2,000 | 2,118 | |||
Rockwall Independent School District: | |||||
4% 2/15/06 | 2,370 | 2,417 | |||
5% 2/15/07 | 3,510 | 3,700 | |||
5% 2/15/08 | 3,825 | 4,117 | |||
5% 2/15/09 | 4,690 | 5,105 | |||
San Angelo Wtrks & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured) | 1,630 | 1,783 | |||
San Antonio Elec. & Gas Systems Rev.: | |||||
Series 1991 A, 0% 2/1/05 (Escrowed to Maturity) (f) | 1,000 | 999 | |||
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (f) | 5,000 | 5,673 | |||
5.25% 2/1/07 | 2,500 | 2,647 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
San Antonio Elec. & Gas Systems Rev.: - continued | |||||
5.25% 2/1/08 | $ 1,000 | $ 1,083 | |||
San Antonio Independent School District 7% 8/15/08 | 5,000 | 5,765 | |||
San Antonio Wtr. Sys. Rev. 5% 5/15/10 (FGIC Insured) | 1,020 | 1,118 | |||
Socorro Independent School District 5% 8/15/09 | 2,070 | 2,269 | |||
Spring Branch Independent School District Series 2001, 5.375% 2/1/14 | 2,790 | 3,082 | |||
Spring Independent School District 5% 2/15/08 | 1,875 | 2,018 | |||
Texas Gen. Oblig.: | |||||
(College Student Ln. Prog.) 5% 8/1/11 (e) | 3,000 | 3,194 | |||
Series 1992 A, 8% 10/1/07 | 10,000 | 11,450 | |||
Series A, 6% 10/1/08 (MBIA Insured) | 10,750 | 12,101 | |||
Series C, 0% 4/1/08 (Escrowed to Maturity) (f) | 3,100 | 2,848 | |||
Texas Pub. Fin. Auth. Bldg. Rev.: | |||||
(Dept. of Criminal Justice Prog.) Series A, 5% 2/1/07 (FSA Insured) | 2,000 | 2,105 | |||
0% 2/1/05 (MBIA Insured) | 3,725 | 3,720 | |||
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Projs.) Series A, 5% 2/1/10 (AMBAC Insured) | 1,055 | 1,154 | |||
Texas Tech Univ. Revs. Ninth Series: | |||||
4% 2/15/09 (AMBAC Insured) | 1,460 | 1,532 | |||
5% 2/15/11 (AMBAC Insured) | 1,250 | 1,373 | |||
Trinity River Auth. Red Oak Creek Sys. Rev. 3.5% 2/1/06 (FSA Insured) | 1,270 | 1,288 | |||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.): | |||||
4% 7/1/05 | 1,800 | 1,811 | |||
4.5% 7/1/06 | 1,220 | 1,241 | |||
5% 7/1/07 | 1,000 | 1,046 | |||
Univ. of Houston Univ. Revs. Series A: | |||||
3.5% 2/15/06 (FSA Insured) | 4,955 | 5,026 | |||
4% 2/15/08 (FSA Insured) | 5,265 | 5,498 | |||
Univ. of Texas Univ. Revs.: | |||||
(Fing. Sys. Proj.) Series A, 5.5% 8/15/09 | 1,115 | 1,245 | |||
Series B, 5% 8/15/09 | 13,555 | 14,842 | |||
Webb County Gen. Oblig.: | |||||
5% 2/15/06 (FGIC Insured) | 1,055 | 1,087 | |||
5% 2/15/07 (FGIC Insured) | 1,110 | 1,171 | |||
5% 2/15/08 (FGIC Insured) | 1,170 | 1,259 | |||
Wichita Falls Independent School District 0% 2/1/10 | 2,325 | 1,964 | |||
256,284 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Utah - 0.5% | |||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | |||||
0% 10/1/11 (AMBAC Insured) | $ 3,800 | $ 2,958 | |||
0% 10/1/12 (AMBAC Insured) | 3,800 | 2,816 | |||
0% 10/1/13 (AMBAC Insured) | 3,760 | 2,660 | |||
Utah Bldg. Ownership Auth. Lease Rev. (State Facilities Master Lease Prog.) Series A, 5% 5/15/11 | 1,700 | 1,875 | |||
10,309 | |||||
Virginia - 0.1% | |||||
Virginia Commonwealth Trans. Board Trans. Rev. (U.S. Route 58 Corridor Dev. Prog.) Series B, 5.375% 5/15/12 (Pre-Refunded to 5/15/09 @ 101) (f) | 1,800 | 2,022 | |||
Washington - 6.3% | |||||
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured) (b) | 1,190 | 1,277 | |||
Clark County Pub. Util. District #1 Elec. Rev.: | |||||
Series B: | |||||
5% 1/1/06 (FSA Insured) | 1,375 | 1,412 | |||
5% 1/1/07 (FSA Insured) | 1,395 | 1,467 | |||
5.25% 1/1/08 (FSA Insured) | 1,515 | 1,634 | |||
5.25% 1/1/09 (FSA Insured) | 1,595 | 1,747 | |||
5% 1/1/11 (MBIA Insured) | 1,680 | 1,842 | |||
King & Snohomish Counties School District #417 Northshore: | |||||
5.5% 12/1/14 (FSA Insured) | 6,300 | 7,085 | |||
5.75% 12/1/15 (FSA Insured) | 2,500 | 2,864 | |||
King County Rural Library District 5% 12/1/06 (FSA Insured) | 1,045 | 1,092 | |||
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured) | 1,740 | 1,918 | |||
King County Swr. Rev. Series B: | |||||
5% 1/1/06 (FSA Insured) | 3,000 | 3,082 | |||
5% 1/1/07 (FSA Insured) | 5,000 | 5,258 | |||
5.25% 1/1/08 (FSA Insured) | 3,500 | 3,774 | |||
Port of Seattle Rev.: | |||||
Series B, 5.5% 2/1/07 (MBIA Insured) (e) | 5,775 | 6,112 | |||
Series D, 5.75% 11/1/15 (FGIC Insured) (e) | 3,640 | 4,085 | |||
Seattle Gen. Oblig. Series A, 5.75% 1/15/20 | 10,000 | 10,370 | |||
Seattle Muni. Lt. & Pwr. Rev. 5.25% 3/1/07 (FSA Insured) | 1,690 | 1,793 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Washington - continued | |||||
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.): | |||||
4% 12/1/05 (FGIC Insured) | $ 1,570 | $ 1,596 | |||
4.5% 12/1/09 (FGIC Insured) | 1,000 | 1,069 | |||
Snohomish County School District #2, Everett: | |||||
5% 6/1/09 (FSA Insured) | 1,045 | 1,141 | |||
5% 6/1/10 (FSA Insured) | 1,000 | 1,096 | |||
Washington Gen. Oblig.: | |||||
Series A: | |||||
4% 1/1/08 (MBIA Insured) | 33,175 | 34,677 | |||
5% 7/1/11 (FGIC Insured) | 1,000 | 1,104 | |||
5.5% 7/1/11 | 3,500 | 3,900 | |||
Series C, 5% 1/1/08 (FSA Insured) | 8,320 | 8,935 | |||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev. Series A, 5.75% 7/1/08 | 3,000 | 3,314 | |||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #3 Rev. Series C, 5% 7/1/06 (FSA Insured) | 5,000 | 5,197 | |||
118,841 | |||||
West Virginia - 0.2% | |||||
West Virginia Gen. Oblig. 5.5% 6/1/07 (FSA Insured) | 1,905 | 2,043 | |||
West Virginia School Bldg. Auth. 4% 1/1/06 (MBIA Insured) | 2,500 | 2,546 | |||
4,589 | |||||
Wisconsin - 1.6% | |||||
Franklin Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 2.5%, tender 5/1/05 (c)(e) | 5,000 | 4,988 | |||
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured) | 3,370 | 2,752 | |||
Wisconsin Health & Edl. Facilities Auth. Rev.: | |||||
(Hosp. Sisters Svcs., Inc. Proj.) Series 2003 B, 4%, tender 12/1/06 (FSA Insured) (c) | 15,000 | 15,374 | |||
(Wheaton Franciscan Svcs., Inc. Proj.) Series A: | |||||
5% 8/15/09 | 1,000 | 1,073 | |||
5% 8/15/10 | 1,870 | 2,004 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Wisconsin - continued | |||||
Wisconsin Trans. Rev.: | |||||
Series A, 5.7% 7/1/14 (Pre-Refunded to 7/1/06 | $ 2,230 | $ 2,345 | |||
5% 7/1/07 | 1,500 | 1,593 | |||
30,129 | |||||
TOTAL MUNICIPAL BONDS (Cost $1,904,915) | 1,925,911 | ||||
Money Market Funds - 0.4% | |||||
Shares | |||||
Fidelity Municipal Cash Central Fund, 1.99% (a)(d) | 8,422,800 | 8,423 | |||
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $1,913,338) | 1,934,334 | ||||
NET OTHER ASSETS - (2.3)% | (44,301) | ||||
NET ASSETS - 100% | $ 1,890,033 |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(d) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(f) Security collateralized by an amount sufficient to pay interest and principal. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $9,390,000 or 0.5% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition | Acquisition |
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 8,955 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 47.3% |
Electric Utilities | 14.3% |
Escrowed/Pre-Refunded | 9.5% |
Transportation | 7.1% |
Health Care | 5.9% |
Special Tax | 5.2% |
Education | 5.1% |
Others* (individually less than 5%) | 5.6% |
100.0% |
*Includes net other assets |
Income Tax Information |
The fund hereby designates as capital gain dividends: For dividends with respect to the taxable year ended December 31, 2004, $4,712,000 or, if different, the net capital gain of such year. |
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, 2004 | |
Assets | ||
Investment in securities, at value (cost $1,913,338) - See accompanying schedule | $ 1,934,334 | |
Cash | 4,734 | |
Receivable for fund shares sold | 1,308 | |
Interest receivable | 23,980 | |
Prepaid expenses | 7 | |
Other receivables | 77 | |
Total assets | 1,964,440 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 69,921 | |
Payable for fund shares redeemed | 2,485 | |
Distributions payable | 1,167 | |
Accrued management fee | 595 | |
Distribution fees payable | 18 | |
Other affiliated payables | 157 | |
Other payables and accrued expenses | 64 | |
Total liabilities | 74,407 | |
Net Assets | $ 1,890,033 | |
Net Assets consist of: | ||
Paid in capital | $ 1,867,621 | |
Undistributed net investment income | 190 | |
Accumulated undistributed net realized gain (loss) on investments | 1,226 | |
Net unrealized appreciation (depreciation) on investments | 20,996 | |
Net Assets | $ 1,890,033 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2004 | |
Calculation of Maximum Offering Price Class A: | $ 10.39 | |
Maximum offering price per share (100/96.25 of $10.39) | $ 10.79 | |
Class T: | $ 10.37 | |
Maximum offering price per share (100/97.25 of $10.37) | $ 10.66 | |
Class B: | $ 10.39 | |
Class C: | $ 10.38 | |
Spartan Short-Intermediate Municipal Income: | $ 10.38 | |
Institutional Class: | $ 10.38 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
Amounts in thousands | Year ended December 31, 2004 | |
Investment Income | ||
Interest | $ 56,396 | |
Expenses | ||
Management fee | $ 6,959 | |
Transfer agent fees | 1,406 | |
Distribution fees | 198 | |
Accounting fees and expenses | 367 | |
Non-interested trustees' compensation | 10 | |
Custodian fees and expenses | 31 | |
Registration fees | 155 | |
Audit | 49 | |
Legal | 6 | |
Miscellaneous | 47 | |
Total expenses before reductions | 9,228 | |
Expense reductions | (269) | 8,959 |
Net investment income | 47,437 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on investment securities | 4,712 | |
Change in net unrealized appreciation (depreciation) on investment securities | (22,609) | |
Net gain (loss) | (17,897) | |
Net increase (decrease) in net assets resulting from operations | $ 29,540 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 47,437 | $ 48,400 |
Net realized gain (loss) | 4,712 | 12,717 |
Change in net unrealized appreciation (depreciation) | (22,609) | (8,571) |
Net increase (decrease) in net assets resulting | 29,540 | 52,546 |
Distributions to shareholders from net investment income | (47,598) | (48,268) |
Distributions to shareholders from net realized gain | (3,486) | (12,396) |
Total distributions | (51,084) | (60,664) |
Share transactions - net increase (decrease) | 37,160 | 199,628 |
Redemption fees | 65 | 43 |
Total increase (decrease) in net assets | 15,681 | 191,553 |
Net Assets | ||
Beginning of period | 1,874,352 | 1,682,799 |
End of period (including undistributed net investment income of $190 and undistributed net investment income of $351, respectively) | $ 1,890,033 | $ 1,874,352 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.50 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .250 | .115 |
Net realized and unrealized gain (loss) | (.090) | .071 |
Total from investment operations | .160 | .186 |
Distributions from net investment income | (.251) | (.111) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.270) | (.176) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.39 | $ 10.50 |
Total ReturnB,C,D | 1.55% | 1.78% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | .65% | .65%A |
Expenses net of voluntary waivers, if any | .65% | .65%A |
Expenses net of all reductions | .64% | .64%A |
Net investment income | 2.41% | 2.52%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 12 | $ 9 |
Portfolio turnover rate | 45% | 34% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .238 | .110 |
Net realized and unrealized gain (loss) | (.089) | .050 |
Total from investment operations | .149 | .160 |
Distributions from net investment income | (.240) | (.105) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.259) | (.170) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.37 | $ 10.48 |
Total ReturnB,C,D | 1.44% | 1.54% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | .76% | .77%A |
Expenses net of voluntary waivers, if any | .76% | .77%A |
Expenses net of all reductions | .75% | .76%A |
Net investment income | 2.30% | 2.41%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 20 | $ 12 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .172 | .081 |
Net realized and unrealized gain (loss) | (.080) | .059 |
Total from investment operations | .092 | .140 |
Distributions from net investment income | (.173) | (.075) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.192) | (.140) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.39 | $ 10.49 |
Total ReturnB,C,D | .89% | 1.34% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | 1.40% | 1.40%A |
Expenses net of voluntary waivers, if any | 1.40% | 1.40%A |
Expenses net of all reductions | 1.39% | 1.39%A |
Net investment income | 1.65% | 1.78%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 4 | $ 2 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .159 | .077 |
Net realized and unrealized gain (loss) | (.080) | .048 |
Total from investment operations | .079 | .125 |
Distributions from net investment income | (.160) | (.070) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.179) | (.135) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.38 | $ 10.48 |
Total ReturnB,C,D | .77% | 1.20% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | 1.52% | 1.50%A |
Expenses net of voluntary waivers, if any | 1.52% | 1.50%A |
Expenses net of all reductions | 1.51% | 1.49%A |
Net investment income | 1.53% | 1.67%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 11 | $ 8 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Spartan Short-Intermediate Municipal Income
Years ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000F | 2000H |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 10.48 | $ 10.52 | $ 10.27 | $ 10.12 | $ 10.03 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment incomeD | .268 | .283 | .336 | .396G | .139 | .399 |
Net realized and unrealized gain (loss) | (.080) | .030 | .317 | .173G | .092 | .034 |
Total from investment operations | .188 | .313 | .653 | .569 | .231 | .433 |
Distributions from net investment income | (.269) | (.283) | (.339) | (.396) | (.140) | (.400) |
Distributions from net realized gain | (.019) | (.070) | (.064) | (.023) | (.001) | - |
Distributions in excess of net realized gain | - | - | - | - | - | (.003) |
Total distributions | (.288) | (.353) | (.403) | (.419) | (.141) | (.403) |
Redemption fees added to paid in capital | -D,I | -D,I | -D,I | -D,I | - | - |
Net asset value, end of period | $ 10.38 | $ 10.48 | $ 10.52 | $ 10.27 | $ 10.12 | $ 10.03 |
Total ReturnB,C | 1.82% | 3.01% | 6.47% | 5.70% | 2.32% | 4.45% |
Ratios to Average Net AssetsE | ||||||
Expenses before expense reductions | .49% | .49% | .49% | .49% | .49%A | .55% |
Expenses net of voluntary waivers, if any | .48% | .49% | .49% | .49% | .49%A | .54% |
Expenses net of all | .47% | .47% | .45% | .41% | .45%A | .54% |
Net investment income | 2.57% | 2.69% | 3.23% | 3.85%G | 4.17%A | 4.02% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 1,841 | $ 1,843 | $ 1,683 | $ 1,183 | $ 965 | $ 904 |
Portfolio turnover rate | 45% | 34% | 38% | 43% | 106%A | 53% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E 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 other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary 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 For the four months ended December 31.
G Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.
H For the year ended August 31.
I 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, | 2004 | 2003E |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeD | .265 | .125 |
Net realized and unrealized gain (loss) | (.088) | .059 |
Total from investment operations | .177 | .184 |
Distributions from net investment income | (.268) | (.119) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.287) | (.184) |
Redemption fees added to paid in capitalD | -G | -G |
Net asset value, end of period | $ 10.38 | $ 10.49 |
Total ReturnB,C | 1.71% | 1.77% |
Ratios to Average Net AssetsF | ||
Expenses before expense reductions | .49% | .48%A |
Expenses net of voluntary waivers, if any | .49% | .48%A |
Expenses net of all reductions | .48% | .47%A |
Net investment income | 2.57% | 2.69%A |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $ 1,253 | $ 414 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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
Notes to Financial Statements
For the period ended December 31, 2004
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Spartan Short-Intermediate Municipal Income Fund (the fund) is a fund of Fidelity Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, Spartan Short Intermediate Municipal Income and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of four years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities, including restricted securities, are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount.
The fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 24,516 | |
Unrealized depreciation | (3,520) | |
Net unrealized appreciation (depreciation) | 20,996 | |
Undistributed ordinary income | 194 | |
Undistributed long-term capital gain | 254 | |
Cost for federal income tax purposes | $ 1,913,338 |
Annual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
December 31, | December 31, | |
Tax-exempt Income | $ 47,598 | $ 48,268 |
Long-term Capital Gains | 3,486 | 12,396 |
Total | $ 51,084 | $ 60,664 |
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of 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.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $930,593 and $815,921, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the fund's average net assets and a group fee rate that averaged .13% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .38% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | 0% | .15% | $ 19 | $ - |
Class T | 0% | .25% | 44 | - |
Class B | .65% | .25% | 31 | 23 |
Class C | .75% | .25% | 104 | 78 |
$ 198 | $ 101 |
Sales Load. FDC receives a front-end sales charge of up to 3.75% for selling Class A shares, and 2.75% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Annual Report
4. 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 | $ 25 |
Class T | 12 |
Class B* | 8 |
Class C* | 17 |
$ 62 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the fund's Class A, Class T, Class B, Class C, Spartan Short-Intermediate Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the fund, except for Spartan Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. Citibank has also entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, with respect to Spartan Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC and FSC receive account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:
Amount | % of | |
Class A | $ 11 | .09 |
Class T | 17 | .10 |
Class B | 3 | .09 |
Class C | 11 | .11 |
Spartan Short-Intermediate Municipal Income | 1,363 | .08 |
Institutional Class | 1 | .08 |
$ 1,406 |
Citibank also has a sub-arrangement with FSC to maintain the fund's accounting records. The fee is based on the level of average net assets for the month.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $316 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Spartan Short-Intermediate Municipal Income operating expenses. During the period, this reimbursement reduced the class' expenses by $53.
In addition, through arrangements with the fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and accounting expenses by $17 and $165, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | |
Spartan Short-Intermediate Municipal Income | $ 34 |
7. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | ||
2004 | 2003A | |
From net investment income | ||
Class A | $ 303 | $ 41 |
Class T | 403 | 55 |
Class B | 58 | 11 |
Class C | 160 | 31 |
Spartan Short-Intermediate Municipal Income | 46,653 | 48,127 |
Institutional Class | 21 | 3 |
Total | $ 47,598 | $ 48,268 |
Annual Report
7. Distributions to Shareholders - continued
Years ended December 31, | ||
2004 | 2003A | |
From net realized gain | ||
Class A | $ 23 | $ 38 |
Class T | 36 | 64 |
Class B | 7 | 14 |
Class C | 20 | 44 |
Spartan Short-Intermediate Municipal Income | 3,398 | 12,233 |
Institutional Class | 2 | 3 |
Total | $ 3,486 | $ 12,396 |
A Distributions for Class A, Class T, Class B, Class C and Institutional Class are for the period July 23, 2003 (commencement of sale of shares)
to December 31, 2003.
8. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2004 | 2003A | 2004 | 2003A | |
Class A | ||||
Shares sold | 1,095 | 946 | $ 11,465 | $ 9,927 |
Reinvestment of distributions | 24 | 5 | 253 | 55 |
Shares redeemed | (785) | (84) | (8,128) | (882) |
Net increase (decrease) | 334 | 867 | $ 3,590 | $ 9,100 |
Class T | ||||
Shares sold | 1,569 | 1,169 | $ 16,393 | $ 12,269 |
Reinvestment of distributions | 30 | 8 | 309 | 80 |
Shares redeemed | (818) | (22) | (8,551) | (231) |
Net increase (decrease) | 781 | 1,155 | $ 8,151 | $ 12,118 |
Class B | ||||
Shares sold | 214 | 234 | $ 2,231 | $ 2,454 |
Reinvestment of distributions | 4 | 2 | 42 | 17 |
Shares redeemed | (84) | (2) | (870) | (16) |
Net increase (decrease) | 134 | 234 | $ 1,403 | $ 2,455 |
Class C | ||||
Shares sold | 658 | 777 | $ 6,848 | $ 8,150 |
Reinvestment of distributions | 10 | 3 | 103 | 36 |
Shares redeemed | (295) | (57) | (3,054) | (598) |
Net increase (decrease) | 373 | 723 | $ 3,897 | $ 7,588 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
8. Share Transactions - continued
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2004 | 2003A | 2004 | 2003A | |
Spartan Short-Intermediate Municipal Income | ||||
Shares sold | 75,115 | 89,461 | $ 784,282 | $ 942,790 |
Reinvestment of distributions | 3,669 | 4,591 | 38,189 | 48,317 |
Shares redeemed | (77,123) | (78,187) | (803,196) | (823,154) |
Net increase (decrease) | 1,661 | 15,865 | $ 19,275 | $ 167,953 |
Institutional Class | ||||
Shares sold | 110 | 41 | $ 1,153 | $ 434 |
Reinvestment of distributions | 1 | 1 | 8 | 4 |
Shares redeemed | (30) | (2) | (317) | (24) |
Net increase (decrease) | 81 | 40 | $ 844 | $ 414 |
A Share transactions for Class A, Class T, Class B, Class C and Institutional Class are for the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Spartan Short-Intermediate Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Spartan Short-Intermediate Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2004 and the results of its operations, the changes in its net assets and the financial highlights for 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 Spartan Short-Intermediate Municipal Income Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2005
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for William O. McCoy, Dennis J. Dirks, and Kenneth L. Wolfe, each of the Trustees oversees 301 funds advised by FMR or an affiliate. Mr. McCoy oversees 303 funds advised by FMR or an affiliate. Mr. Dirks and Mr. Wolfe oversee 233 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (74)** | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (43)** | |
Year of Election or Appointment: 2001 Senior Vice President of the fund (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (50) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (52) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* 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.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (56) | |
Year of Election or Appointment: 2005 Mr. Dirks also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). | |
Robert M. Gates (61) | |
Year of Election or Appointment: 1997 Dr. Gates is Vice Chairman of the non-interested Trustees (2005). Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001), and Brinker International (restaurant management, 2003). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
George H. Heilmeier (68) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001), Teletech Holdings (customer management services), and HRL Laboratories (private research and development, 2004). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE) (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), and Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002). | |
Marie L. Knowles (58) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (60) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Co-Chairman and a Director of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Italtel Holding S.p.A. (telecommunications (Milan, Italy), 2004) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (71) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals), where he served as CEO until April 1998, retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. He is a member of the Executive Committee of the Independent Director's Council of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (71) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), and Progress Energy, Inc. (electric utility). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
Cornelia M. Small (60) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000) and Chairperson (2002) of the Investment Committee, and a member (2002) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1998). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (65) | |
Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman of the Board (2000), CEO (2002), a position he previously held from 1995-2000, Chairman of the Executive Committee (2000), and a Member of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (65) | |
Year of Election or Appointment: 2005 Mr. Wolfe also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003), Bausch & Lomb, Inc., and Revlon Inc. (2004). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (61) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Dwight D. Churchill (51) | |
Year of Election or Appointment: 1997 Vice President of the fund. He serves as Head of Fidelity's Fixed-Income Division (2000), Vice President of Fidelity's Money Market Funds (2000), Vice President of Fidelity's Bond Funds (1997), and Senior Vice President of FIMM (2000) and FMR (1997). Mr. Churchill joined Fidelity in 1993 as Vice President and Group Leader of Taxable Fixed-Income Investments. | |
Charles S. Morrison (44) | |
Year of Election or Appointment: 2002 Vice President of the fund. Mr. Morrison also serves as Vice President of Fidelity's Bond Funds (2002), and Vice President of certain Asset Allocation and Balanced Funds (2002). He serves as Vice President (2002) and Bond Group Leader (2002) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002) and FMR (2002). Mr. Morrison joined Fidelity in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
Mark Sommer (44) | |
Year of Election or Appointment: 2004 Vice President of the fund. Mr. Sommer also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Sommer worked as an analyst and manager. | |
Eric D. Roiter (56) | |
Year of Election or Appointment: 1998 Secretary of the fund. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Vice President and Secretary of FDC; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Management & Research (Far East) Inc. (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). | |
Stuart Fross (45) | |
Year of Election or Appointment: 2003 Assistant Secretary of the fund. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Christine Reynolds (46) | |
Year of Election or Appointment: 2004 President, Treasurer, and Anti-Money Laundering (AML) officer of the fund. Ms. Reynolds also serves as President, Treasurer, and AML officer of other Fidelity funds (2004) and is a Vice President (2003) and an employee (2002) of FMR. Before joining Fidelity Investments, Ms. Reynolds worked at PricewaterhouseCoopers LLP (PwC) (1980-2002), where she was most recently an audit partner with PwC's investment management practice. | |
Timothy F. Hayes (54) | |
Year of Election or Appointment: 2002 Chief Financial Officer of the fund. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
Kenneth A. Rathgeber (57) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of the fund. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004) and Executive Vice President of Risk Oversight for Fidelity Investments (2002). Previously, he served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
John R. Hebble (46) | |
Year of Election or Appointment: 2003 Deputy Treasurer of the fund. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
Kimberley H. Monasterio (41) | |
Year of Election or Appointment: 2004 Deputy Treasurer of the fund. Ms. Monasterio also serves as Deputy Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
John H. Costello (58) | |
Year of Election or Appointment: 1986 Assistant Treasurer of the fund. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (50) | |
Year of Election or Appointment: 2004 Assistant Treasurer of the fund. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (49) | |
Year of Election or Appointment: 2002 Assistant Treasurer of the fund. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Kenneth B. Robins (35) | |
Year of Election or Appointment: 2004 Assistant Treasurer of the fund. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Annual Report
Distributions
The Board of Trustees of Advisor Short-Intermediate Municipal Income 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 | 02/07/05 | 02/04/05 | $.003 |
Class T | 02/07/05 | 02/04/05 | $.003 |
Class B | 02/07/05 | 02/04/05 | $.003 |
Class C | 02/07/05 | 02/04/05 | $.003 |
During fiscal year ended 2004, 100% of the fund's income dividends was free from federal income tax, and 11.57% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2005 of amounts for use in preparing 2004 income tax returns.
Annual Report
Proxy Voting Results
A special meeting of the fund's shareholders was held on April 14, 2004 The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* | ||
# of | % of | |
Affirmative | 3,415,899,540.41 | 73.098 |
Against | 857,186,718.73 | 18.343 |
Abstain | 194,806,370.40 | 4.169 |
Broker | 205,155,704.48 | 4.390 |
TOTAL | 4,673,048,334.02 | 100.000 |
PROPOSAL 2 | ||
To elect a Board of Trustees.* | ||
# of | % of | |
J. Michael Cook | ||
Affirmative | 4,338,349,812.56 | 92.838 |
Withheld | 334,698,521.46 | 7.162 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ralph F. Cox | ||
Affirmative | 4,334,671,421.01 | 92.759 |
Withheld | 338,376,913.01 | 7.241 |
TOTAL | 4,673,048,334.02 | 100.000 |
Laura B. Cronin | ||
Affirmative | 4,332,816,177.06 | 92.719 |
Withheld | 340,232,156.96 | 7.281 |
TOTAL | 4,673,048,334.02 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,336,851,658.96 | 92.806 |
Withheld | 336,196,675.06 | 7.194 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
George H. Heilmeier | ||
Affirmative | 4,334,549,149.07 | 92.756 |
Withheld | 338,499,184.95 | 7.244 |
TOTAL | 4,673,048,334.02 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 4,327,320,608.55 | 92.602 |
Withheld | 345,727,725.47 | 7.398 |
TOTAL | 4,673,048,334.02 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 4,322,104,507.32 | 92.490 |
Withheld | 350,943,826.70 | 7.510 |
TOTAL | 4,673,048,334.02 | 100.000 |
Donald J. Kirk | ||
Affirmative | 4,335,814,201.97 | 92.783 |
Withheld | 337,234,132.05 | 7.217 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marie L. Knowles | ||
Affirmative | 4,333,892,089.64 | 92.742 |
Withheld | 339,156,244.38 | 7.258 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,340,856,926.26 | 92.891 |
Withheld | 332,191,407.76 | 7.109 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marvin L. Mann | ||
Affirmative | 4,336,736,818.96 | 92.803 |
Withheld | 336,311,515.06 | 7.197 |
TOTAL | 4,673,048,334.02 | 100.000 |
William O. McCoy | ||
Affirmative | 4,338,426,324.60 | 92.839 |
Withheld | 334,622,009.42 | 7.161 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
Robert L. Reynolds | ||
Affirmative | 4,339,017,198.22 | 92.852 |
Withheld | 334,031,135.80 | 7.148 |
TOTAL | 4,673,048,334.02 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,338,546,239.15 | 92.842 |
Withheld | 334,502,094.87 | 7.158 |
TOTAL | 4,673,048,334.02 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASTM-UANN-0205
1.796655.101
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Short-Intermediate
Municipal Income
Fund - Institutional Class
Annual Report
December 31, 2004
(2_fidelity_logos) (Registered_Trademark)
Institutional Class is a class of Spartan® Short-Intermediate
Municipal Income Fund
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
Proxy Voting Results | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2004 | Past 1 | Past 5 | Past 10 |
Institutional Class A | 1.71% | 4.62% | 4.71% |
A The initial offering of Institutional Class shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Spartan® Short-Intermediate Municipal Income Fund, the original retail class of the fund.
Annual Report
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Short-Intermediate Municipal Income - Institutional Class on December 31, 1994. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Mark Sommer, Portfolio Manager of Fidelity Advisor Short-Intermediate Municipal Income Fund
Despite persistent inflation concerns and the Federal Reserve Board raising interest rates multiple times in the second half of the year, the municipal bond market registered positive performance for the year ending December 31, 2004. In that time, the Lehman Brothers® Municipal Bond Index rose 4.48%. In comparison, the Lehman Brothers Aggregate Bond Index - a proxy of the overall investment-grade taxable debt market - returned 4.34%. This marks the second consecutive year in which tax-free munis outperformed taxable bonds on an absolute basis. Demand for munis generally was strong in 2004, except for a rough patch in the spring when strong labor markets fueled expectations of rising inflation. Shortly thereafter, the Fed began a series of five 0.25 percentage-point interest rate hikes between June 30 and December 14. While munis typically don't react well to such actions, they responded with positive returns in each of the year's final six months, partly due to reassurances by the Fed that it intended to raise rates in a "measured fashion."
For the year ending December 31, 2004, the fund's Institutional Class shares returned 1.71%. During the same period, the LipperSM Short-Intermediate Municipal Debt Funds Average rose 1.63% and the Lehman Brothers 1-6 Year Municipal Bond Index returned 2.04%. Short-intermediate municipal bond prices came under some pressure as short-term interest rates and bond yields moved higher. In this environment, I believe my approach to managing the fund's interest rate sensitivity - which involved keeping it in line with the Lehman Brothers index - helped performance given that both the fund and the index had less interest rate sensitivity than the Lipper peer group average. Also aiding performance was our stake in lower-quality investment-grade muni bonds, which performed quite well as investors sought out their high yields, which in turn helped cushion their prices from rising interest rates. However, my decision to avoid non-investment-grade muni bonds likely detracted from performance because they generally outpaced higher-quality munis. Throughout the period, I kept the fund's investments tilted toward bonds issued from states that don't give their own bonds preferential tax treatment, as these securities tended to be more attractively valued. Specifically, I preferred bonds issued in states such as Texas, where there's no state income tax, and Illinois, where all bonds are subject to Illinois state income tax.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover 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, 2004 to December 31, 2004).
Actual Expenses
The first line of the table below for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,022.00 | $ 3.25 |
HypotheticalA | $ 1,000.00 | $ 1,021.92 | $ 3.25 |
Class T | |||
Actual | $ 1,000.00 | $ 1,020.50 | $ 3.81 |
HypotheticalA | $ 1,000.00 | $ 1,021.37 | $ 3.81 |
Beginning | Ending | Expenses Paid | |
Class B | |||
Actual | $ 1,000.00 | $ 1,018.20 | $ 7.05 |
HypotheticalA | $ 1,000.00 | $ 1,018.15 | $ 7.05 |
Class C | |||
Actual | $ 1,000.00 | $ 1,017.60 | $ 7.66 |
HypotheticalA | $ 1,000.00 | $ 1,017.55 | $ 7.66 |
Spartan Short-Intermediate Municipal Income | |||
Actual | $ 1,000.00 | $ 1,022.90 | $ 2.44 |
HypotheticalA | $ 1,000.00 | $ 1,022.72 | $ 2.44 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,022.90 | $ 2.44 |
HypotheticalA | $ 1,000.00 | $ 1,022.72 | $ 2.44 |
A 5% return per year before expenses
*Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Annualized | |
Class A | .64% |
Class T | .75% |
Class B | 1.39% |
Class C | 1.51% |
Spartan Short-Intermediate Municipal Income | .48% |
Institutional Class | .48% |
Annual Report
Investment Changes
Top Five States as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
Texas | 13.6 | 12.6 |
Illinois | 9.7 | 8.8 |
California | 8.2 | 8.5 |
New York | 6.9 | 7.6 |
Washington | 6.3 | 8.6 |
Top Five Sectors as of December 31, 2004 | ||
% of fund's | % of fund's net assets | |
General Obligations | 47.3 | 43.2 |
Electric Utilities | 14.3 | 15.5 |
Escrowed/Pre-Refunded | 9.5 | 10.3 |
Transportation | 7.1 | 7.1 |
Health Care | 5.9 | 6.7 |
Average Years to Maturity as of December 31, 2004 | ||
6 months ago | ||
Years | 3.3 | 3.2 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2004 | ||
6 months ago | ||
Years | 3.0 | 2.8 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2004 | As of June 30, 2004 | ||||||
![]() | AAA 61.3% | ![]() | AAA 59.6% | ||||
![]() | AA,A 32.9% | ![]() | AA,A 31.7% | ||||
![]() | BBB 5.8% | ![]() | BBB 6.4% | ||||
![]() | BB and Below 0.0% | ![]() | BB and Below 0.3% | ||||
![]() | Not Rated 1.9% | ![]() | Not Rated 1.5% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
* Short-Term Investments and Net Other Assets are not included in the pie chart.
Annual Report
Investments December 31, 2004
Showing Percentage of Net Assets
Municipal Bonds - 101.9% | |||||
Principal | Value (Note 1) | ||||
Alabama - 2.5% | |||||
Alabama Agric. & Mechanical Univ. Revs. 6.5% 11/1/25 (Pre-Refunded to 11/1/05 @ 102) (f) | $ 2,000 | $ 2,112 | |||
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev.: | |||||
5.25% 10/1/07 (MBIA Insured) (e) | 1,750 | 1,853 | |||
5.25% 10/1/08 (MBIA Insured) (e) | 2,900 | 3,113 | |||
5.75% 10/1/09 (MBIA Insured) (e) | 4,000 | 4,406 | |||
Jefferson County Gen. Oblig. Series 2003 A, 5% 4/1/07 (MBIA Insured) | 3,000 | 3,174 | |||
Jefferson County Ltd. Oblig. School Warrants Series A, 5% 1/1/07 | 2,210 | 2,310 | |||
Jefferson County Swr. Rev.: | |||||
Series 1999 A, 5.75% 2/1/38 (Pre-Refunded to 2/1/09 @ 101) (f) | 5,000 | 5,675 | |||
Series A: | |||||
5% 2/1/33 (Pre-Refunded to 2/1/09 @ 101) (f) | 13,460 | 14,805 | |||
5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (f) | 3,900 | 4,470 | |||
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (f) | 2,025 | 2,240 | |||
Mobile County Gen. Oblig.: | |||||
5% 2/1/07 (MBIA Insured) | 1,000 | 1,054 | |||
5% 2/1/08 (MBIA Insured) | 1,475 | 1,589 | |||
46,801 | |||||
Alaska - 1.6% | |||||
Alaska Student Ln. Corp. Student Ln. Rev. Series A: | |||||
5.15% 7/1/05 (AMBAC Insured) (e) | 1,950 | 1,980 | |||
5.85% 7/1/13 (AMBAC Insured) (e) | 3,285 | 3,616 | |||
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 | 2,500 | 2,880 | |||
North Slope Borough Gen. Oblig.: | |||||
Series 1996 B, 0% 6/30/07 (MBIA Insured) | 3,100 | 2,895 | |||
Series A, 0% 6/30/07 (MBIA Insured) | 5,000 | 4,669 | |||
Series B: | |||||
0% 6/30/06 (MBIA Insured) | 3,500 | 3,378 | |||
0% 6/30/07 (MBIA Insured) | 7,050 | 6,584 | |||
0% 6/30/08 (MBIA Insured) | 4,240 | 3,834 | |||
29,836 | |||||
Arizona - 0.9% | |||||
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured) | 1,115 | 1,221 | |||
Maricopa County Unified School District #48 Scottsdale 7.4% 7/1/10 | 3,750 | 4,562 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Arizona - continued | |||||
Pima County Unified School District #1 Tucson 7.5% 7/1/08 (FGIC Insured) | $ 7,060 | $ 8,220 | |||
Salt River Proj. Agric. Impt. & Pwr. District Elec. Sys. Rev. Series B, 7% 1/1/05 | 760 | 760 | |||
Tucson Wtr. Rev. Series 2002, 5.5% 7/1/06 (FGIC Insured) | 980 | 1,027 | |||
Univ. of Arizona Ctfs. of Prtn. (Univ. of Arizona Parking & Student Hsg. Proj.) Series A, 5% 6/1/09 (AMBAC Insured) | 2,000 | 2,185 | |||
17,975 | |||||
Arkansas - 0.3% | |||||
Arkansas Dev. Fin. Auth. Wastewtr. Sys. Rev. | 1,060 | 1,086 | |||
Little Rock Gen. Oblig. 4% 4/1/07 (FSA Insured) | 1,000 | 1,037 | |||
Rogers Sales & Use Tax Rev. Series A: | |||||
4.25% 9/1/06 (FGIC Insured) | 1,000 | 1,032 | |||
4.25% 9/1/07 (FGIC Insured) | 2,175 | 2,280 | |||
5,435 | |||||
California - 8.2% | |||||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A: | |||||
5.25% 5/1/07 (MBIA Insured) | 27,455 | 29,269 | |||
5.25% 5/1/10 (MBIA Insured) | 1,200 | 1,342 | |||
California Gen. Oblig.: | |||||
5% 2/1/09 | 1,640 | 1,779 | |||
5% 2/1/10 | 2,000 | 2,185 | |||
5% 12/1/11 (MBIA Insured) | 8,000 | 8,933 | |||
5.125% 9/1/12 | 1,000 | 1,088 | |||
5.25% 2/1/10 (FSA Insured) | 7,265 | 8,105 | |||
5.25% 2/1/11 | 5,775 | 6,403 | |||
5.5% 3/1/11 (FGIC Insured) | 3,210 | 3,646 | |||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,525 | 3,994 | |||
5.75% 10/1/08 | 1,085 | 1,206 | |||
6.4% 9/1/08 | 3,075 | 3,473 | |||
6.5% 9/1/10 | 1,740 | 2,033 | |||
8% 11/1/07 (FGIC Insured) | 7,000 | 7,675 | |||
California Poll. Cont. Fing. Auth. Ctfs. of Prtn. (Pacific Gas & Elec. Co. Proj.) Series 2004 B, 3.5%, tender 6/1/07 (FGIC Insured) (c)(e) | 15,000 | 15,169 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
California - continued | |||||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series A, 3.125%, tender 5/1/06 (c)(e) | $ 5,000 | $ 4,978 | |||
California Pub. Works Board Lease Rev.: | |||||
(California State Univ. Proj.) Series 1997 A, 5.5% 10/1/07 | 1,075 | 1,157 | |||
(Coalinga State Hosp. Proj.) Series 2004 A: | |||||
5% 6/1/07 | 4,000 | 4,219 | |||
5% 6/1/08 | 6,000 | 6,434 | |||
California Statewide Cmntys. Dev. Auth. Rev.: | |||||
(Kaiser Fund Hosp./Health Place, Inc. Proj.) | 10,000 | 10,060 | |||
(Kaiser Permanente Health Sys. Proj.) Series 2004 G, 2.3%, tender 5/1/07 (c) | 8,000 | 7,941 | |||
Commerce Refuse To Energy Auth. Rev.: | |||||
5% 7/1/07 (MBIA Insured) (b) | 1,770 | 1,839 | |||
5.25% 7/1/08 (MBIA Insured) (b) | 855 | 907 | |||
Golden State Tobacco Securitization Corp. Series 2003 B, 5% 6/1/08 | 1,300 | 1,384 | |||
Long Beach Hbr. Rev. Series 2000 A: | |||||
5.5% 5/15/05 (e) | 3,490 | 3,529 | |||
5.5% 5/15/06 (e) | 3,000 | 3,116 | |||
Los Angeles Hbr. Dept. Rev. Series A, 5.5% 8/1/06 (AMBAC Insured) (e) | 1,495 | 1,567 | |||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured) | 3,600 | 2,775 | |||
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (g) | 8,955 | 9,390 | |||
155,596 | |||||
Colorado - 0.5% | |||||
Arapahoe County Cap. Impt. Trust Fund Hwy. Rev. | 4,500 | 3,681 | |||
E-470 Pub. Hwy. Auth. Rev. Series 2000 B: | |||||
0% 9/1/06 (Escrowed to Maturity) (f) | 2,200 | 2,111 | |||
0% 9/1/07 (Escrowed to Maturity) (f) | 3,200 | 2,977 | |||
8,769 | |||||
Connecticut - 0.7% | |||||
Connecticut Gen. Oblig. Series 2002 C, 5% 12/15/08 | 1,930 | 2,107 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Connecticut - continued | |||||
Connecticut Health & Edl. Facilities Auth. Rev. (Connecticut Children's Med. Ctr. Proj.) Series B: | |||||
4% 7/1/07 (MBIA Insured) | $ 1,275 | $ 1,324 | |||
4.5% 7/1/08 (MBIA Insured) | 1,045 | 1,113 | |||
5% 7/1/09 (MBIA Insured) | 1,000 | 1,093 | |||
Connecticut Spl. Oblig. Series 2004 A: | |||||
4% 12/30/05 | 3,205 | 3,264 | |||
5% 12/30/07 | 4,535 | 4,874 | |||
13,775 | |||||
District Of Columbia - 1.9% | |||||
District of Columbia Ctfs. of Prtn.: | |||||
(District's Pub. Safety and Emergency Preparedness Communications Ctr. and Related Technology Proj.) Series 2003, 3% 1/1/06 (AMBAC Insured) | 1,305 | 1,315 | |||
5% 1/1/06 (AMBAC Insured) | 1,000 | 1,027 | |||
5% 1/1/07 (AMBAC Insured) | 1,000 | 1,049 | |||
5.25% 1/1/08 (AMBAC Insured) | 935 | 1,009 | |||
District of Columbia Gen. Oblig.: | |||||
Series 1993 B2, 5.5% 6/1/07 (FSA Insured) | 1,830 | 1,958 | |||
Series 2001 B, 5.5% 6/1/07 (FSA Insured) | 1,345 | 1,439 | |||
Series A: | |||||
5% 6/1/06 | 3,480 | 3,602 | |||
5% 6/1/07 | 2,810 | 2,963 | |||
5.25% 6/1/09 (FSA Insured) | 1,000 | 1,101 | |||
District of Columbia Rev. (Medstar Univ. Hosp. Proj.) Series D, 6.875%, tender 2/16/07 (c)(f) | 9,000 | 9,854 | |||
Metropolitan Washington Arpts. Auth. Gen. Arpt. Rev. Series B, 5.5% 10/1/08 (FGIC Insured) (e) | 6,460 | 6,966 | |||
Metropolitan Washington Arpts. Auth. Sys. Rev. Series D: | |||||
4% 10/1/06 (FSA Insured) (e) | 1,750 | 1,795 | |||
4% 10/1/07 (FSA Insured) (e) | 1,000 | 1,033 | |||
35,111 | |||||
Florida - 6.2% | |||||
Brevard County Util. Rev. 5% 3/1/06 (FGIC Insured) | 530 | 547 | |||
Broward County School District Series A, 5% 2/15/08 | 5,810 | 6,256 | |||
Coral Gables Health Facilities Hosp. (Baptist Health South Florida Obligated Group Proj.) 5% 8/15/06 | 1,000 | 1,039 | |||
Dade County School District: | |||||
5% 8/1/07 (MBIA Insured) | 1,500 | 1,599 | |||
5.2% 7/15/07 (AMBAC Insured) | 8,000 | 8,560 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Florida - continued | |||||
Florida Board of Ed. Lottery Rev. Series B: | |||||
6% 7/1/14 (FGIC Insured) | $ 500 | $ 575 | |||
6% 7/1/15 (FGIC Insured) | 1,200 | 1,379 | |||
Florida Dept. of Envir. Protection Preservation Rev. | 19,020 | 20,246 | |||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt Obligated Group Proj.) 3.35%, tender 9/1/05 (c) | 20,300 | 20,441 | |||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.): | |||||
4%, tender 8/1/07 (c) | 11,000 | 11,229 | |||
4.25%, tender 8/1/07 (c)(e) | 6,000 | 6,124 | |||
Indian River County School District 4% 4/1/06 (FSA Insured) | 1,470 | 1,503 | |||
Miami-Dade County Cap. Asset Acquisition Fixed Rate Spl. Oblig. Series 2002 A: | |||||
5% 4/1/06 (AMBAC Insured) | 3,365 | 3,481 | |||
5% 4/1/08 (AMBAC Insured) | 2,825 | 3,052 | |||
Miami-Dade County School Board Ctfs. of Prtn. 5%, tender 5/1/11 (MBIA Insured) (c) | 1,500 | 1,635 | |||
Miami-Dade County School District Series 1994 A, 5.65% 6/1/06 (MBIA Insured) | 1,545 | 1,617 | |||
Orlando Utils. Commission Util. Sys. Rev. 5.25% 7/1/09 | 6,000 | 6,635 | |||
Palm Beach County Rev. (Cmnty. Foundation Palm Beach Proj.) 2%, tender 9/1/05, LOC Northern Trust Co., Chicago (c) | 2,910 | 2,908 | |||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev. 5.75% 4/1/06 (AMBAC Insured) (e) | 1,500 | 1,558 | |||
Polk County Cap. Impt. Rev. Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c) | 9,000 | 10,024 | |||
Seminole County School Board Ctfs. of Prtn. Series A: | |||||
4.5% 7/1/06 (MBIA Insured) (b) | 1,150 | 1,177 | |||
4.5% 7/1/08 (MBIA Insured) (b) | 1,250 | 1,317 | |||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. | 2,000 | 1,996 | |||
Volusia County School Board Ctfs. of Prtn. (School Board of Volusia County Master Lease Prog.) 4.5% 8/1/07 (FSA Insured) (b) | 2,135 | 2,223 | |||
117,121 | |||||
Georgia - 1.3% | |||||
Atlanta Arpt. Facilities Rev. 6.5% 1/1/06 (Escrowed to Maturity) (f) | 6,000 | 6,249 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Georgia - continued | |||||
Columbia County Gen. Oblig. 5% 1/1/09 (FSA Insured) | $ 1,505 | $ 1,641 | |||
Fulton DeKalb Hosp. Auth. Hosp. Rev. 5% 1/1/08 (FSA Insured) | 2,250 | 2,415 | |||
Georgia Gen. Oblig.: | |||||
Series B, 6.25% 4/1/06 | 1,750 | 1,837 | |||
Series C, 6.5% 7/1/07 | 2,185 | 2,406 | |||
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1993 CC, 4.8% 1/1/06 (MBIA Insured) | 7,100 | 7,281 | |||
Gwinnett County Gen. Oblig. 4% 1/1/06 | 1,035 | 1,054 | |||
Henry County Wtr. & Swr. Auth. Rev. 5% 2/1/08 (MBIA Insured) | 1,095 | 1,181 | |||
24,064 | |||||
Hawaii - 2.3% | |||||
Hawaii Arpts. Sys. Rev. Series 2000 B, 8% 7/1/10 (FGIC Insured) (e) | 3,850 | 4,700 | |||
Hawaii Gen. Oblig.: | |||||
Series CS, 5% 4/1/08 (MBIA Insured) | 2,200 | 2,374 | |||
Series CU, 5.75% 10/1/11 (MBIA Insured) | 3,210 | 3,643 | |||
Honolulu City & County Gen. Oblig. Series B, 8% 10/1/09 | 26,940 | 33,021 | |||
43,738 | |||||
Illinois - 9.7% | |||||
Chicago Gen. Oblig.: | |||||
(Neighborhoods Alive 21 Prog.): | |||||
5% 1/1/07 (MBIA Insured) | 1,360 | 1,430 | |||
5% 1/1/08 (MBIA Insured) | 1,190 | 1,279 | |||
Series A, 5.25% 1/1/12 (FSA Insured) | 1,000 | 1,119 | |||
5% 1/1/07 (FGIC Insured) | 1,000 | 1,052 | |||
Chicago Midway Arpt. Rev.: | |||||
Series 2001 B, 5% 1/1/07 (FSA Insured) | 1,000 | 1,051 | |||
Series B: | |||||
5% 1/1/10 (AMBAC Insured) | 1,225 | 1,334 | |||
5% 1/1/11 (AMBAC Insured) | 3,625 | 3,955 | |||
Chicago O'Hare Int'l. Arpt. Rev.: | |||||
Series 2001 C, 5% 1/1/07 (AMBAC Insured) (e) | 2,670 | 2,793 | |||
Series A, 5.5% 1/1/08 (AMBAC Insured) | 5,000 | 5,253 | |||
5.5% 1/1/10 (AMBAC Insured) (e) | 5,000 | 5,464 | |||
Chicago Park District: | |||||
Series B, 5% 1/1/11 (AMBAC Insured) | 5,750 | 6,326 | |||
Series C, 5% 1/1/11 (AMBAC Insured) | 2,515 | 2,767 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Illinois - continued | |||||
Chicago School Fin. Auth. Series B, 5% 6/1/09 (FSA Insured) | $ 12,825 | $ 14,003 | |||
Chicago Tax Increment Rev.: | |||||
Series 2000 A, 0% 12/1/08 (AMBAC Insured) | 10,000 | 8,919 | |||
Series A, 0% 12/1/05 (AMBAC Insured) | 3,000 | 2,941 | |||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | |||||
(Fed. Transit Administration Section 5307 Formula Funds Proj.) Series A, 5.25% 6/1/10 (AMBAC Insured) | 4,785 | 5,311 | |||
Series A: | |||||
4% 6/1/06 (AMBAC Insured) | 1,050 | 1,055 | |||
4.25% 6/1/08 (AMBAC Insured) | 3,600 | 3,702 | |||
Chicago Wastewtr. Transmission Rev. 5.5% 1/1/09 (FGIC Insured) | 2,975 | 3,292 | |||
Cook County Cmnty. College District #508 Ctfs. of Prtn. 8.75% 1/1/07 (FGIC Insured) | 8,000 | 8,984 | |||
Du Page Wtr. Commission Wtr. Rev. 5% 5/1/08 (AMBAC Insured) | 4,525 | 4,876 | |||
Illinois Dev. Fin. Auth. Gas Supply Rev. (The Peoples Gas Lt. & Coke Co. Proj.) Series 2003 B, 3.05%, tender 2/1/08 (AMBAC Insured) (c) | 6,100 | 6,158 | |||
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) | 1,900 | 2,098 | |||
Illinois Edl. Facilities Auth. Revs.: | |||||
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c) | 12,800 | 12,827 | |||
(Univ. of Chicago Proj.): | |||||
Series 2004 B1, 3.45%, tender 7/1/08 (c) | 6,100 | 6,241 | |||
Series B, 3.1%, tender 7/1/07 (c) | 3,900 | 3,946 | |||
5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (f) | 2,640 | 2,983 | |||
Illinois Fin. Auth. Solid Waste Rev. (Republic Services, Inc. Proj.) 3.65%, tender 5/1/07 (c)(e) | 6,100 | 6,139 | |||
Illinois Gen. Oblig.: | |||||
First Series: | |||||
5% 8/1/06 | 8,160 | 8,499 | |||
5.25% 4/1/08 (MBIA Insured) | 1,035 | 1,124 | |||
5.25% 4/1/10 (MBIA Insured) | 2,600 | 2,886 | |||
5.5% 8/1/10 | 1,415 | 1,588 | |||
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (f) | 7,075 | 8,129 | |||
Series A, 5% 10/1/09 | 2,600 | 2,847 | |||
5% 6/1/07 | 6,265 | 6,639 | |||
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (f) | 1,000 | 1,144 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Illinois - continued | |||||
Illinois Health Facilities Auth. Rev. (Condell Med. Ctr. Proj.): | |||||
5% 5/15/07 | $ 500 | $ 518 | |||
5% 5/15/08 | 700 | 727 | |||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 (FSA Insured) | 2,270 | 2,575 | |||
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (FGIC Insured) | 1,600 | 1,831 | |||
Kane, McHenry, Cook & DeKalb Counties Cmnty. Unit School District #300, Carpentersville 5.5% 12/1/13 (MBIA Insured) | 5,000 | 5,631 | |||
Kendall, Kane & Will Counties Cmnty. Unit School District #308: | |||||
5.25% 10/1/05 (FGIC Insured) | 560 | 573 | |||
5.25% 10/1/06 (FGIC Insured) | 695 | 730 | |||
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11 | 2,365 | 2,598 | |||
Rosemont Gen. Oblig. Series 3: | |||||
0% 12/1/07 (Escrowed to Maturity) (f) | 2,375 | 2,202 | |||
0% 12/1/07 (FGIC Insured) | 625 | 576 | |||
Univ. of Illinois Auxiliary Facilities Sys. Rev. Series 2001 A, 5% 4/1/08 (AMBAC Insured) | 2,035 | 2,193 | |||
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Projs.) 5% 8/15/11 (AMBAC Insured) | 1,360 | 1,501 | |||
Will County School District #122 Series B, 0% 11/1/08 (FSA Insured) | 1,500 | 1,342 | |||
183,151 | |||||
Indiana - 1.6% | |||||
Hamilton Southeastern Consolidated School Bldg. Corp.: | |||||
5% 1/15/10 (FSA Insured) | 1,835 | 2,006 | |||
5% 1/15/11 (FSA Insured) | 1,910 | 2,096 | |||
5% 1/15/12 (FSA Insured) | 1,990 | 2,191 | |||
Indiana Health Facility Fing. Auth. Rev. (Ascension Health Cr. Group Prog.) Series 2002 F: | |||||
5.5% 11/15/05 | 1,000 | 1,029 | |||
5.5% 11/15/06 | 1,000 | 1,054 | |||
Indianapolis Local Pub. Impt. Bond Bank (Indianapolis Arpt. Auth. Proj.) Series I: | |||||
4% 1/1/06 (MBIA Insured) (e) | 1,325 | 1,343 | |||
5% 1/1/08 (MBIA Insured) (e) | 1,550 | 1,644 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Indiana - continued | |||||
Indianapolis Resource Recovery Rev. (Ogden Martin Sys., Inc. Proj.) 6.75% 12/1/07 (AMBAC Insured) | $ 3,000 | $ 3,304 | |||
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured) | 1,405 | 1,536 | |||
Rockport Poll. Cont. Rev. 4.9%, tender 6/1/07 (c) | 4,000 | 4,159 | |||
Saint Joseph County Ind. Edl. Facilities Rev. (Univ. of Notre Dame Du Lac Proj.) 2.5%, tender 12/3/07 (c) | 10,000 | 9,958 | |||
30,320 | |||||
Kansas - 0.5% | |||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.): | |||||
Series A, 4.75%, tender 10/1/07 (c) | 2,400 | 2,511 | |||
Series C, 2.38%, tender 9/1/05 (c) | 4,000 | 3,985 | |||
La Cygne Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.) Series 1994, 2.25%, tender 9/1/05 (c) | 2,500 | 2,491 | |||
8,987 | |||||
Kentucky - 0.7% | |||||
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (e) | 1,185 | 1,271 | |||
Owensboro Elec. Lt. & Pwr. Rev. Series B: | |||||
0% 1/1/07 (AMBAC Insured) | 10,000 | 9,490 | |||
0% 1/1/09 (AMBAC Insured) | 2,000 | 1,779 | |||
12,540 | |||||
Louisiana - 0.2% | |||||
New Orleans Gen. Oblig. 5% 3/1/07 (MBIA Insured) | 3,100 | 3,263 | |||
Maryland - 0.8% | |||||
Baltimore Gen. Oblig. Series A, 5.5% 10/15/18 | 1,700 | 1,959 | |||
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured) | 1,535 | 1,702 | |||
Prince Georges County Gen. Oblig.: | |||||
Series 2004 C, 5% 12/1/10 | 3,770 | 4,191 | |||
Series 2004 D, 5% 12/1/11 | 5,830 | 6,464 | |||
14,316 | |||||
Massachusetts - 5.0% | |||||
Massachusetts Bay Trans. Auth. Series A, 7% 3/1/09 | 6,880 | 8,018 | |||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C: | |||||
5.75% 8/1/06 | 1,200 | 1,251 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Massachusetts - continued | |||||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C: - continued | |||||
5.875% 8/1/08 | $ 1,630 | $ 1,778 | |||
Massachusetts Fed. Hwy. Series 2000 A, 5.75% 6/15/13 | 3,000 | 3,380 | |||
Massachusetts Gen. Oblig.: | |||||
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (f) | 2,570 | 2,916 | |||
Series 2001 A, 5.5% 1/1/11 | 5,000 | 5,628 | |||
Series 2002 B, 5% 2/1/06 | 40,000 | 41,181 | |||
Series 2003 A, 5.375% 8/1/08 | 5,165 | 5,660 | |||
Series 2003 C: | |||||
5% 12/1/06 (XL Cap. Assurance, Inc. Insured) | 1,900 | 1,994 | |||
5.5% 10/1/10 (MBIA Insured) | 1,130 | 1,276 | |||
Series A: | |||||
4.5% 1/1/09 (Pre-Refunded to 1/1/08 @ 101) (f) | 2,055 | 2,193 | |||
5.5% 2/1/07 (MBIA Insured) | 7,500 | 7,978 | |||
Series C, 5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (f) | 2,495 | 2,793 | |||
Massachusetts Health & Edl. Facilities Auth. Rev.: | |||||
(Caritas Christi Oblig. Group Proj.) 5.5% 7/1/05 | 1,000 | 1,006 | |||
(Dana Farber Cancer Proj.) Series G1, 6.25% 12/1/14 (Pre-Refunded to 12/1/05 @ 102) (f) | 3,000 | 3,170 | |||
New England Ed. Ln. Marketing Corp. Series A, 5.7% 7/1/05 (e) | 2,800 | 2,848 | |||
Springfield Gen. Oblig. 5% 1/15/06 (MBIA Insured) | 1,000 | 1,029 | |||
94,099 | |||||
Michigan - 3.6% | |||||
Battle Creek Downtown Dev. Auth. 6% 5/1/06 (MBIA Insured) | 2,000 | 2,101 | |||
Chippewa Valley Schools: | |||||
4% 5/1/06 | 1,000 | 1,023 | |||
4% 5/1/07 | 2,610 | 2,704 | |||
5% 5/1/08 | 1,260 | 1,360 | |||
Detroit City School District 5.05% 5/1/06 | 4,845 | 5,016 | |||
Detroit Gen. Oblig.: | |||||
Series 2004 A, 5% 4/1/08 (FSA Insured) | 7,275 | 7,835 | |||
Series 2004 B, 5% 4/1/07 (FSA Insured) | 4,055 | 4,292 | |||
Series A: | |||||
5% 4/1/06 (FSA Insured) (b) | 2,200 | 2,266 | |||
5% 4/1/07 (FSA Insured) (b) | 6,910 | 7,290 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Michigan - continued | |||||
Detroit Gen. Oblig.: - continued | |||||
5% 4/1/08 (MBIA Insured) | $ 14,545 | $ 15,664 | |||
5% 4/1/09 (MBIA Insured) | 10,620 | 11,583 | |||
Detroit Swr. Disp. Rev. Series A, 5.75% 7/1/26 | 2,000 | 2,292 | |||
Ferndale Gen. Oblig. 3.5% 4/1/06 (FGIC Insured) | 1,960 | 1,990 | |||
Hazel Park School District 5% 5/1/08 | 1,275 | 1,376 | |||
Wayne-Westland Cmnty. Schools 5% 5/1/10 (FSA Insured) | 1,225 | 1,345 | |||
68,137 | |||||
Minnesota - 0.7% | |||||
Hopkins Independent School District #270 Series B, 4% 2/1/06 | 2,575 | 2,625 | |||
Mankato Independent School District #77 Series A, 4% 2/1/06 (FSA Insured) | 1,420 | 1,448 | |||
Metropolitan Council Minneapolis-Saint Paul Metropolitan Area Series 2005 A, 5% 9/1/06 (b) | 2,340 | 2,413 | |||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): | |||||
5.25% 12/1/08 | 1,200 | 1,280 | |||
5.25% 12/1/10 | 500 | 533 | |||
Minnesota Pub. Facilities Auth. Wtr. Poll. Cont. Rev. Series A, 4.5% 3/1/07 | 2,240 | 2,346 | |||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. 5% 1/1/08 (AMBAC Insured) | 2,410 | 2,592 | |||
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured) | 940 | 1,039 | |||
14,276 | |||||
Mississippi - 0.5% | |||||
Jackson Wtr. & Swr. Sys. Rev. Series 2003, 5% 9/1/07 (FSA Insured) | 5,825 | 6,203 | |||
Mississippi Gen. Oblig. 5.25% 9/1/07 | 1,750 | 1,877 | |||
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (e) | 1,190 | 1,271 | |||
9,351 | |||||
Missouri - 0.6% | |||||
Kansas City School District Bldg. Corp. Rev.: | |||||
(School District Elementary School Proj.): | |||||
Series 2003 B, 5% 2/1/12 (FGIC Insured) | 3,100 | 3,424 | |||
Series B, 5% 2/1/11 (FGIC Insured) | 1,850 | 2,030 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Missouri - continued | |||||
Kansas City School District Bldg. Corp. Rev.: - continued | |||||
Series A: | |||||
5% 2/1/07 (FGIC Insured) | $ 1,020 | $ 1,075 | |||
5% 2/1/08 (FGIC Insured) | 2,000 | 2,144 | |||
Saint Louis Muni. Fin. Corp. Leasehold Rev.: | |||||
(Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (FGIC Insured) | 1,050 | 1,193 | |||
(Civil Courts Bldg. Proj.) Series 2003 A, 5% 8/1/06 (FSA Insured) | 1,635 | 1,704 | |||
11,570 | |||||
Montana - 0.2% | |||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Projs.) Series A, 5.2%, tender 5/1/09 (c) | 2,900 | 3,085 | |||
Nebraska - 2.0% | |||||
Lancaster County School District #1 (Lincoln Pub. Schools Proj.) 4% 1/15/06 | 1,000 | 1,019 | |||
Nebraska Pub. Pwr. District Rev.: | |||||
Series 1998 A, 5.25% 1/1/06 (MBIA Insured) | 5,000 | 5,149 | |||
Series A: | |||||
0% 1/1/06 (MBIA Insured) | 24,465 | 23,946 | |||
0% 1/1/07 (MBIA Insured) | 4,000 | 3,803 | |||
Omaha Pub. Pwr. District Elec. Rev. Series B, 4.5% 2/1/09 | 3,500 | 3,753 | |||
37,670 | |||||
Nevada - 1.6% | |||||
Clark County Arpt. Rev. Series C: | |||||
5% 7/1/05 (AMBAC Insured) (e) | 800 | 811 | |||
5% 7/1/06 (AMBAC Insured) (e) | 800 | 831 | |||
5% 7/1/08 (AMBAC Insured) (e) | 2,215 | 2,371 | |||
5% 7/1/09 (AMBAC Insured) (e) | 2,700 | 2,910 | |||
5% 7/1/10 (AMBAC Insured) (e) | 1,225 | 1,322 | |||
5% 7/1/11 (AMBAC Insured) (e) | 1,790 | 1,935 | |||
Clark County School District: | |||||
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (f) | 1,600 | 1,831 | |||
Series C, 5% 6/15/10 (MBIA Insured) | 1,000 | 1,097 | |||
Series D, 5% 6/15/09 (MBIA Insured) | 13,890 | 15,207 | |||
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured) | 2,410 | 2,649 | |||
30,964 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New Jersey - 4.2% | |||||
Casino Reinvestment Dev. Auth. Hotel Room Fee Rev.: | |||||
5% 1/1/08 (AMBAC Insured) | $ 920 | $ 986 | |||
5% 1/1/09 (AMBAC Insured) | 1,000 | 1,085 | |||
Elizabeth Gen. Oblig. 5.25% 8/15/09 (MBIA Insured) (b) | 1,225 | 1,322 | |||
Garden State Preservation Trust Open Space & Farmland Preservation Series B, 6.25% 11/1/09 (MBIA Insured) (b) | 4,000 | 4,425 | |||
New Jersey Econ. Dev. Auth. Rev. 5% 6/15/07 | 7,500 | 7,889 | |||
New Jersey Economic Dev. Auth. Solid Waste Rev. (Waste Mgmt. of New Jersey, Inc. Proj.) Series 2004 A, 2.85%, tender 6/1/05 (c)(e) | 5,000 | 4,991 | |||
New Jersey Tpk. Auth. Tpk. Rev. Series 2004 A, 3.15%, tender 1/1/10 (AMBAC Insured) (c) | 16,250 | 16,310 | |||
New Jersey Trans. Trust Fund Auth.: | |||||
Series 2001 A, 5% 6/15/06 | 6,300 | 6,544 | |||
Series 2005 A, 5% 12/15/07 (MBIA Insured) (b) | 5,000 | 5,317 | |||
Series A, 5.25% 12/15/08 (MBIA Insured) (b) | 15,000 | 16,343 | |||
Series B, 5.25% 12/15/10 (FGIC Insured) | 4,550 | 5,090 | |||
New Jersey Transit Corp. Series 2000 B, 5.5% 2/1/08 (AMBAC Insured) | 1,000 | 1,089 | |||
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (f) | 7,000 | 8,002 | |||
79,393 | |||||
New Jersey/Pennsylvania - 0.3% | |||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5% 7/1/09 | 5,170 | 5,581 | |||
New Mexico - 1.8% | |||||
Farmington Poll. Cont. Rev. (Pub. Svc. Co. of New Mexico San Juan and Four Corners Projs.) | 7,000 | 6,935 | |||
San Juan County Gross Receipts Tax Rev. Series B, 2.5% 8/15/05 | 13,600 | 13,624 | |||
Sandoval Co. Incentive Payment Rev. 4.25% 12/1/06 | 13,750 | 14,139 | |||
34,698 | |||||
New York - 6.9% | |||||
Grand Central District Mgmt. Assoc., Inc.: | |||||
5% 1/1/10 | 1,200 | 1,303 | |||
5% 1/1/12 | 1,175 | 1,286 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New York - continued | |||||
Metropolitan Trans. Auth. Commuter Facilities Rev. Series A: | |||||
5% 7/1/06 (Escrowed to Maturity) (f) | $ 270 | $ 281 | |||
5.375% 7/1/09 (Escrowed to Maturity) (f) | 3,635 | 4,071 | |||
Metropolitan Trans. Auth. Svc. Contract Rev. Series B, 5% 1/1/06 | 10,110 | 10,387 | |||
Nassau County Gen. Oblig. Series Z: | |||||
5% 9/1/11 (FGIC Insured) | 800 | 869 | |||
5% 9/1/12 (FGIC Insured) | 1,500 | 1,667 | |||
New York City Gen. Oblig.: | |||||
Series 2000 A, 6.5% 5/15/11 | 2,450 | 2,837 | |||
Series 2004 G, 5% 8/1/09 | 8,000 | 8,679 | |||
Series A, 5.25% 11/1/14 (MBIA Insured) | 600 | 664 | |||
Series E, 6% 8/1/11 | 60 | 64 | |||
Series G, 5.25% 8/1/14 (AMBAC Insured) | 1,000 | 1,100 | |||
Series H, 5.75% 3/15/11 (FGIC Insured) | 1,700 | 1,937 | |||
New York State Dorm. Auth. Revs.: | |||||
(City Univ. Sys. Consolidation Proj.): | |||||
Series 2000 A, 6.125% 7/1/12 (AMBAC Insured) | 5,540 | 6,393 | |||
Series A, 5.75% 7/1/13 | 3,500 | 3,959 | |||
Series 2003 A: | |||||
5% 1/1/06 | 1,250 | 1,284 | |||
5% 1/1/07 | 10,855 | 11,387 | |||
5% 3/15/08 | 2,000 | 2,151 | |||
New York State Urban Dev. Corp. Rev. (Correctional Facilities-Svc. Contract Proj.) Series B, 4.75% 1/1/28 (Pre-Refunded to 1/1/09 @ 101) (f) | 2,615 | 2,868 | |||
New York Transitional Fin. Auth. Rev. Series 2003 E: | |||||
4.5% 2/1/07 | 1,750 | 1,828 | |||
4.5% 2/1/08 | 1,500 | 1,594 | |||
5% 2/1/09 | 2,035 | 2,218 | |||
Tobacco Settlement Fing. Corp.: | |||||
Series 2004 B1, 5% 6/1/09 | 3,800 | 4,085 | |||
Series A1: | |||||
5.25% 6/1/12 | 5,000 | 5,183 | |||
5.25% 6/1/13 | 17,500 | 18,666 | |||
Series B1, 5% 6/1/06 | 17,815 | 18,398 | |||
Triborough Bridge & Tunnel Auth. Revs.: | |||||
Series A, 5.5% 1/1/14 (Pre-Refunded to 1/1/12 | 3,745 | 4,296 | |||
Series Y, 5.9% 1/1/08 (Escrowed to Maturity) (f) | 10,000 | 11,025 | |||
130,480 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
New York & New Jersey - 0.3% | |||||
Port Auth. of New York & New Jersey: | |||||
124th Series, 5% 8/1/13 (FGIC Insured) (e) | $ 1,200 | $ 1,264 | |||
127th Series, 5% 12/15/08 (AMBAC Insured) (e) | 3,510 | 3,764 | |||
5,028 | |||||
North Carolina - 1.3% | |||||
Charlotte Ctfs. of Prtn. (FY 2004 Equip. Acquisition Proj.) Series 2004 C, 4% 3/1/08 | 4,940 | 5,171 | |||
North Carolina Ctfs. of Prtn. (Repair and Renovation Proj.) Series 2004 B, 4% 6/1/06 | 1,300 | 1,333 | |||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | |||||
Series 1993 B, 7% 1/1/08 (MBIA Insured) | 1,500 | 1,693 | |||
Series A, 5.5% 1/1/10 | 3,000 | 3,262 | |||
Series B: | |||||
6% 1/1/05 | 2,000 | 2,000 | |||
6% 1/1/06 | 5,995 | 6,190 | |||
Series C, 5% 1/1/08 | 1,190 | 1,259 | |||
Series D, 5.375% 1/1/10 | 3,715 | 4,019 | |||
24,927 | |||||
Ohio - 2.0% | |||||
Cleveland Pub. Pwr. Sys. Rev. (First Mtg. Prog.) | 2,250 | 1,930 | |||
Franklin County Rev. (OCLC Online Computer Library Ctr., Inc. Proj.) 5% 4/15/07 | 1,960 | 2,046 | |||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.) 5.5% 2/15/07 | 1,420 | 1,498 | |||
Ohio Air Quality Dev. Auth. Rev. (Pennsylvania Pwr. Co. Proj.) 3.375%, tender 7/1/05 (c) | 2,300 | 2,295 | |||
Ohio Bldg. Auth.: | |||||
(Administration Bldg. Fund Prog.) Series 2004 A, 5% 4/1/08 | 1,935 | 2,086 | |||
(Adult Correctional Bldg. Fund Prog.) Series A, 5.75% 4/1/08 | 3,555 | 3,914 | |||
Ohio Gen. Oblig.: | |||||
Series 2000 E, 5.5% 5/1/09 | 1,905 | 2,125 | |||
Series IIA, 5.25% 12/1/05 | 5,000 | 5,138 | |||
Ohio Rev. Series 2003 1, 5% 6/15/08 | 5,000 | 5,413 | |||
Ohio Univ. Gen. Receipts Athens: | |||||
5% 12/1/06 (FSA Insured) | 3,600 | 3,782 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Ohio - continued | |||||
Ohio Univ. Gen. Receipts Athens: - continued | |||||
5% 12/1/07 (FSA Insured) | $ 1,285 | $ 1,376 | |||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. (Toledo Edison Co. Proj.) Series B, 4.5%, tender 9/1/05 (c) | 7,000 | 7,046 | |||
38,649 | |||||
Oklahoma - 0.2% | |||||
Oklahoma Dev. Fin. Auth. Rev. (Samuel Roberts Noble, Inc. Proj.) 5% 5/1/06 | 3,200 | 3,314 | |||
Oregon - 0.7% | |||||
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured) | 1,210 | 1,333 | |||
Eugene Elec. Util. Rev. Series A: | |||||
5.25% 8/1/06 (FSA Insured) | 1,280 | 1,339 | |||
5.25% 8/1/07 (FSA Insured) | 1,350 | 1,447 | |||
5.25% 8/1/08 (FSA Insured) | 1,425 | 1,558 | |||
Oregon Dept. Administrative Services 5% 9/1/07 (FSA Insured) | 1,750 | 1,868 | |||
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B: | |||||
5% 5/1/09 (FSA Insured) | 1,000 | 1,090 | |||
5% 5/1/11 (FSA Insured) | 1,000 | 1,098 | |||
Oregon Gen. Oblig. 8.25% 1/1/07 | 1,000 | 1,113 | |||
Salem Gen. Oblig. 5% 5/1/10 (FSA Insured) | 2,550 | 2,806 | |||
13,652 | |||||
Pennsylvania - 3.8% | |||||
Allegheny County Hosp. Dev. Auth. Rev. (Univ. of Pittsburgh Med. Ctr. Proj.) Series B: | |||||
5.5% 6/15/05 | 2,545 | 2,579 | |||
5.5% 6/15/06 | 3,065 | 3,179 | |||
5.5% 6/15/07 | 2,000 | 2,135 | |||
Allegheny County San. Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured) | 1,495 | 1,734 | |||
Hazleton Area School District 6.5% 3/1/06 (FSA Insured) | 1,155 | 1,210 | |||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(e) | 10,000 | 10,103 | |||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A, 5% 6/1/06 (AMBAC Insured) | 3,750 | 3,880 | |||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 5%, tender 6/1/05 (c)(e) | 6,200 | 6,218 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Pennsylvania - continued | |||||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | |||||
(UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09 | $ 1,750 | $ 1,895 | |||
Series B: | |||||
5% 9/1/06 (b) | 4,510 | 4,643 | |||
5% 9/1/07 (b) | 5,570 | 5,852 | |||
5.25% 9/1/08 (b) | 5,860 | 6,304 | |||
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured) | 2,750 | 3,061 | |||
Philadelphia Muni. Auth. Rev.: | |||||
Series A: | |||||
5% 5/15/07 (FSA Insured) | 5,500 | 5,818 | |||
5% 5/15/08 (FSA Insured) | 5,000 | 5,374 | |||
Series B, 5.25% 11/15/11 (FSA Insured) | 3,400 | 3,800 | |||
Pittsburgh Gen. Oblig. Series A, 6% 3/1/07 (MBIA Insured) | 2,000 | 2,153 | |||
Wyoming Valley San. Auth. Swr. Rev. 5% 11/15/06 (MBIA Insured) | 1,865 | 1,957 | |||
71,895 | |||||
Puerto Rico - 0.1% | |||||
Puerto Rico Pub. Bldgs Auth. Rev. Series K, 4%, tender 7/1/07 (MBIA Insured) (c) | 2,000 | 2,077 | |||
Rhode Island - 0.2% | |||||
Rhode Island Health & Edl. Bldg. Corp. Rev. (Johnson & Wales Univ. Proj.): | |||||
5% 4/1/06 (XL Cap. Assurance, Inc. Insured) | 2,225 | 2,300 | |||
5% 4/1/08 (XL Cap. Assurance, Inc. Insured) | 1,700 | 1,828 | |||
4,128 | |||||
South Carolina - 1.9% | |||||
Berkeley County School District 7% 4/1/07 | 2,615 | 2,871 | |||
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A: | |||||
5% 8/15/06 | 1,000 | 1,036 | |||
5% 8/15/07 | 1,700 | 1,797 | |||
5% 8/15/08 | 1,690 | 1,803 | |||
Greenville County Pub. Facilities Corp. Certificate of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 (AMBAC Insured) (b) | 1,450 | 1,593 | |||
Piedmont Muni. Pwr. Agcy. Elec. Rev. 5.6% 1/1/09 (MBIA Insured) | 2,345 | 2,608 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
South Carolina - continued | |||||
Rock Hill Util. Sys. Rev. Series 2003 A: | |||||
5% 1/1/08 (FSA Insured) | $ 1,850 | $ 1,987 | |||
5% 1/1/09 (FSA Insured) | 1,945 | 2,119 | |||
South Carolina Pub. Svc. Auth. Rev.: | |||||
Series 2002 A: | |||||
5% 1/1/06 (FSA Insured) | 1,705 | 1,752 | |||
5% 1/1/07 (FSA Insured) | 4,105 | 4,322 | |||
Series A: | |||||
5.5% 1/1/11 (MBIA Insured) | 3,000 | 3,349 | |||
5.5% 1/1/14 (FGIC Insured) (b) | 1,335 | 1,476 | |||
Series D: | |||||
5% 1/1/06 | 2,750 | 2,825 | |||
5% 1/1/07 | 5,000 | 5,265 | |||
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured) | 1,000 | 1,094 | |||
35,897 | |||||
Tennessee - 1.8% | |||||
Elizabethton Health & Edl. Facilities Board Rev. (First Mtg. Prog.) 6% 7/1/11 (MBIA Insured) | 2,005 | 2,310 | |||
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured) | 2,000 | 2,187 | |||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A: | |||||
4% 9/1/06 (MBIA Insured) | 1,500 | 1,542 | |||
4.5% 9/1/08 (MBIA Insured) | 1,620 | 1,729 | |||
4.5% 9/1/09 (MBIA Insured) | 1,685 | 1,806 | |||
Metropolitan Nashville Arpt. Auth. Rev. Series C, 5% 7/1/06 (FGIC Insured) (e) | 1,675 | 1,740 | |||
Shelby County Gen. Oblig. Series A: | |||||
0% 5/1/10 (Pre-Refunded to 5/1/05 @ 74.444) (f) | 15,750 | 11,645 | |||
0% 5/1/12 (Pre-Refunded to 5/1/05 @ 65.1568) (f) | 15,130 | 9,791 | |||
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured) | 1,200 | 1,318 | |||
34,068 | |||||
Texas - 13.6% | |||||
Alief Independent School District Series 2004 B, 5% 2/15/10 | 1,500 | 1,643 | |||
Arlington Independent School District 0% 2/15/16 | 6,820 | 3,498 | |||
Austin Arpt. Sys. Rev. Series A: | |||||
6.5% 11/15/05 (Escrowed to Maturity) (e)(f) | 940 | 975 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
Austin Arpt. Sys. Rev. Series A: - continued | |||||
6.5% 11/15/05 (MBIA Insured) (e) | $ 6,870 | $ 7,123 | |||
Austin Util. Sys. Rev.: | |||||
Series 1992 A, 0% 11/15/09 (MBIA Insured) | 4,130 | 3,543 | |||
Series A, 0% 11/15/10 (MBIA Insured) | 5,300 | 4,340 | |||
Bexar County Series A: | |||||
5% 6/15/09 (FSA Insured) | 2,615 | 2,858 | |||
5% 6/15/10 (FSA Insured) | 1,000 | 1,098 | |||
Birdville Independent School District 5% 2/15/10 | 1,300 | 1,424 | |||
Brazos River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series 1995 B, 5.05%, tender 6/19/06 (c)(e) | 6,255 | 6,439 | |||
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured) | 1,500 | 1,699 | |||
College Station Independent School District 5% 2/15/10 | 1,000 | 1,095 | |||
Conroe Independent School District Lot B, 0% 2/15/08 | 3,000 | 2,748 | |||
Corpus Christi Gen. Oblig.: | |||||
4% 3/1/06 (FSA Insured) | 1,285 | 1,311 | |||
5% 3/1/06 (AMBAC Insured) | 3,365 | 3,464 | |||
5% 3/1/07 (FSA Insured) | 2,735 | 2,887 | |||
Cypress-Fairbanks Independent School District: | |||||
Series B, 0% 8/1/07 (AMBAC Insured) | 10,000 | 9,333 | |||
4.5% 2/15/06 | 2,245 | 2,302 | |||
5% 2/15/08 | 2,000 | 2,152 | |||
Dallas Independent School District Series 2005, 5.25% 8/15/08 (b) | 2,000 | 2,146 | |||
Del Valle Independent School District 5.5% 2/1/09 | 1,205 | 1,334 | |||
El Paso Wtr. & Swr. Rev.: | |||||
5% 3/1/06 (AMBAC Insured) | 1,000 | 1,031 | |||
5% 3/1/07 (AMBAC Insured) | 2,000 | 2,111 | |||
5% 3/1/08 (AMBAC Insured) | 2,770 | 2,978 | |||
Fort Worth Gen. Oblig. Series A, 5% 3/1/06 | 1,000 | 1,032 | |||
Frisco Gen. Oblig.: | |||||
Series 2003 A: | |||||
4% 2/15/07 (FSA Insured) | 1,320 | 1,365 | |||
4% 2/15/08 (FSA Insured) | 1,145 | 1,198 | |||
5% 2/15/10 (FSA Insured) | 1,710 | 1,873 | |||
4% 2/15/06 (FSA Insured) | 2,975 | 3,034 | |||
4% 2/15/07 (FSA Insured) | 3,115 | 3,222 | |||
Garland Independent School District 0% 2/15/07 | 1,610 | 1,521 | |||
Harris County Gen. Oblig. Series A, 0% 8/15/07 (FGIC Insured) | 4,400 | 4,102 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
Harris County Health Facilities Dev. Corp. Rev. (Saint Luke's Episcopal Hosp. Proj.) Series 2001 A, 5.5% 2/15/09 | $ 3,710 | $ 4,036 | |||
Houston Gen. Oblig.: | |||||
5.5% 3/1/06 | 2,580 | 2,675 | |||
5.5% 3/1/06 (Escrowed to Maturity) (f) | 120 | 124 | |||
Houston Wtr. & Swr. Sys. Rev. Series B, 5.5% 12/1/08 (Escrowed to Maturity) (f) | 6,000 | 6,677 | |||
Katy Independent School District Series A, 4% 2/15/06 | 1,335 | 1,361 | |||
Killeen Independent School District 4% 2/15/08 | 1,200 | 1,256 | |||
La Porte Independent School District 4% 2/15/08 | 2,000 | 2,093 | |||
Lewisville Gen. Oblig. 4% 2/15/06 (FSA Insured) | 1,300 | 1,326 | |||
Lower Colorado River Auth. Rev. 5.25% 1/1/15 | 5,000 | 5,598 | |||
Lubbock Gen. Oblig.: | |||||
5% 2/15/09 (MBIA Insured) | 1,615 | 1,758 | |||
5% 2/15/10 (MBIA Insured) | 1,845 | 2,020 | |||
Mesquite Independent School District Series A, 0% 8/15/06 | 1,115 | 1,072 | |||
New Braunfels Independent School District 0% 2/1/07 | 2,000 | 1,892 | |||
North East Texas Independent School District 7% 2/1/11 (Pre-Refunded to 2/1/10 @ 100) (f) | 3,600 | 4,314 | |||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C: | |||||
5% 1/1/09 (FSA Insured) | 2,000 | 2,171 | |||
5%, tender 7/1/08 (FSA Insured) (c) | 2,650 | 2,855 | |||
Northside Independent School District Series B, 2.45%, tender 8/1/06 (Liquidity Facility Dexia Cr. Local de France) (c) | 7,300 | 7,328 | |||
Port Houston Auth. Harris County 6% 10/1/06 (FGIC Insured) (e) | 2,000 | 2,118 | |||
Rockwall Independent School District: | |||||
4% 2/15/06 | 2,370 | 2,417 | |||
5% 2/15/07 | 3,510 | 3,700 | |||
5% 2/15/08 | 3,825 | 4,117 | |||
5% 2/15/09 | 4,690 | 5,105 | |||
San Angelo Wtrks & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured) | 1,630 | 1,783 | |||
San Antonio Elec. & Gas Systems Rev.: | |||||
Series 1991 A, 0% 2/1/05 (Escrowed to Maturity) (f) | 1,000 | 999 | |||
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (f) | 5,000 | 5,673 | |||
5.25% 2/1/07 | 2,500 | 2,647 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Texas - continued | |||||
San Antonio Elec. & Gas Systems Rev.: - continued | |||||
5.25% 2/1/08 | $ 1,000 | $ 1,083 | |||
San Antonio Independent School District 7% 8/15/08 | 5,000 | 5,765 | |||
San Antonio Wtr. Sys. Rev. 5% 5/15/10 (FGIC Insured) | 1,020 | 1,118 | |||
Socorro Independent School District 5% 8/15/09 | 2,070 | 2,269 | |||
Spring Branch Independent School District Series 2001, 5.375% 2/1/14 | 2,790 | 3,082 | |||
Spring Independent School District 5% 2/15/08 | 1,875 | 2,018 | |||
Texas Gen. Oblig.: | |||||
(College Student Ln. Prog.) 5% 8/1/11 (e) | 3,000 | 3,194 | |||
Series 1992 A, 8% 10/1/07 | 10,000 | 11,450 | |||
Series A, 6% 10/1/08 (MBIA Insured) | 10,750 | 12,101 | |||
Series C, 0% 4/1/08 (Escrowed to Maturity) (f) | 3,100 | 2,848 | |||
Texas Pub. Fin. Auth. Bldg. Rev.: | |||||
(Dept. of Criminal Justice Prog.) Series A, 5% 2/1/07 (FSA Insured) | 2,000 | 2,105 | |||
0% 2/1/05 (MBIA Insured) | 3,725 | 3,720 | |||
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Projs.) Series A, 5% 2/1/10 (AMBAC Insured) | 1,055 | 1,154 | |||
Texas Tech Univ. Revs. Ninth Series: | |||||
4% 2/15/09 (AMBAC Insured) | 1,460 | 1,532 | |||
5% 2/15/11 (AMBAC Insured) | 1,250 | 1,373 | |||
Trinity River Auth. Red Oak Creek Sys. Rev. 3.5% 2/1/06 (FSA Insured) | 1,270 | 1,288 | |||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.): | |||||
4% 7/1/05 | 1,800 | 1,811 | |||
4.5% 7/1/06 | 1,220 | 1,241 | |||
5% 7/1/07 | 1,000 | 1,046 | |||
Univ. of Houston Univ. Revs. Series A: | |||||
3.5% 2/15/06 (FSA Insured) | 4,955 | 5,026 | |||
4% 2/15/08 (FSA Insured) | 5,265 | 5,498 | |||
Univ. of Texas Univ. Revs.: | |||||
(Fing. Sys. Proj.) Series A, 5.5% 8/15/09 | 1,115 | 1,245 | |||
Series B, 5% 8/15/09 | 13,555 | 14,842 | |||
Webb County Gen. Oblig.: | |||||
5% 2/15/06 (FGIC Insured) | 1,055 | 1,087 | |||
5% 2/15/07 (FGIC Insured) | 1,110 | 1,171 | |||
5% 2/15/08 (FGIC Insured) | 1,170 | 1,259 | |||
Wichita Falls Independent School District 0% 2/1/10 | 2,325 | 1,964 | |||
256,284 | |||||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Utah - 0.5% | |||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | |||||
0% 10/1/11 (AMBAC Insured) | $ 3,800 | $ 2,958 | |||
0% 10/1/12 (AMBAC Insured) | 3,800 | 2,816 | |||
0% 10/1/13 (AMBAC Insured) | 3,760 | 2,660 | |||
Utah Bldg. Ownership Auth. Lease Rev. (State Facilities Master Lease Prog.) Series A, 5% 5/15/11 | 1,700 | 1,875 | |||
10,309 | |||||
Virginia - 0.1% | |||||
Virginia Commonwealth Trans. Board Trans. Rev. (U.S. Route 58 Corridor Dev. Prog.) Series B, 5.375% 5/15/12 (Pre-Refunded to 5/15/09 @ 101) (f) | 1,800 | 2,022 | |||
Washington - 6.3% | |||||
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured) (b) | 1,190 | 1,277 | |||
Clark County Pub. Util. District #1 Elec. Rev.: | |||||
Series B: | |||||
5% 1/1/06 (FSA Insured) | 1,375 | 1,412 | |||
5% 1/1/07 (FSA Insured) | 1,395 | 1,467 | |||
5.25% 1/1/08 (FSA Insured) | 1,515 | 1,634 | |||
5.25% 1/1/09 (FSA Insured) | 1,595 | 1,747 | |||
5% 1/1/11 (MBIA Insured) | 1,680 | 1,842 | |||
King & Snohomish Counties School District #417 Northshore: | |||||
5.5% 12/1/14 (FSA Insured) | 6,300 | 7,085 | |||
5.75% 12/1/15 (FSA Insured) | 2,500 | 2,864 | |||
King County Rural Library District 5% 12/1/06 (FSA Insured) | 1,045 | 1,092 | |||
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured) | 1,740 | 1,918 | |||
King County Swr. Rev. Series B: | |||||
5% 1/1/06 (FSA Insured) | 3,000 | 3,082 | |||
5% 1/1/07 (FSA Insured) | 5,000 | 5,258 | |||
5.25% 1/1/08 (FSA Insured) | 3,500 | 3,774 | |||
Port of Seattle Rev.: | |||||
Series B, 5.5% 2/1/07 (MBIA Insured) (e) | 5,775 | 6,112 | |||
Series D, 5.75% 11/1/15 (FGIC Insured) (e) | 3,640 | 4,085 | |||
Seattle Gen. Oblig. Series A, 5.75% 1/15/20 | 10,000 | 10,370 | |||
Seattle Muni. Lt. & Pwr. Rev. 5.25% 3/1/07 (FSA Insured) | 1,690 | 1,793 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Washington - continued | |||||
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.): | |||||
4% 12/1/05 (FGIC Insured) | $ 1,570 | $ 1,596 | |||
4.5% 12/1/09 (FGIC Insured) | 1,000 | 1,069 | |||
Snohomish County School District #2, Everett: | |||||
5% 6/1/09 (FSA Insured) | 1,045 | 1,141 | |||
5% 6/1/10 (FSA Insured) | 1,000 | 1,096 | |||
Washington Gen. Oblig.: | |||||
Series A: | |||||
4% 1/1/08 (MBIA Insured) | 33,175 | 34,677 | |||
5% 7/1/11 (FGIC Insured) | 1,000 | 1,104 | |||
5.5% 7/1/11 | 3,500 | 3,900 | |||
Series C, 5% 1/1/08 (FSA Insured) | 8,320 | 8,935 | |||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev. Series A, 5.75% 7/1/08 | 3,000 | 3,314 | |||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #3 Rev. Series C, 5% 7/1/06 (FSA Insured) | 5,000 | 5,197 | |||
118,841 | |||||
West Virginia - 0.2% | |||||
West Virginia Gen. Oblig. 5.5% 6/1/07 (FSA Insured) | 1,905 | 2,043 | |||
West Virginia School Bldg. Auth. 4% 1/1/06 (MBIA Insured) | 2,500 | 2,546 | |||
4,589 | |||||
Wisconsin - 1.6% | |||||
Franklin Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 2.5%, tender 5/1/05 (c)(e) | 5,000 | 4,988 | |||
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured) | 3,370 | 2,752 | |||
Wisconsin Health & Edl. Facilities Auth. Rev.: | |||||
(Hosp. Sisters Svcs., Inc. Proj.) Series 2003 B, 4%, tender 12/1/06 (FSA Insured) (c) | 15,000 | 15,374 | |||
(Wheaton Franciscan Svcs., Inc. Proj.) Series A: | |||||
5% 8/15/09 | 1,000 | 1,073 | |||
5% 8/15/10 | 1,870 | 2,004 | |||
Municipal Bonds - continued | |||||
Principal | Value (Note 1) | ||||
Wisconsin - continued | |||||
Wisconsin Trans. Rev.: | |||||
Series A, 5.7% 7/1/14 (Pre-Refunded to 7/1/06 | $ 2,230 | $ 2,345 | |||
5% 7/1/07 | 1,500 | 1,593 | |||
30,129 | |||||
TOTAL MUNICIPAL BONDS (Cost $1,904,915) | 1,925,911 | ||||
Money Market Funds - 0.4% | |||||
Shares | |||||
Fidelity Municipal Cash Central Fund, 1.99% (a)(d) | 8,422,800 | 8,423 | |||
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $1,913,338) | 1,934,334 | ||||
NET OTHER ASSETS - (2.3)% | (44,301) | ||||
NET ASSETS - 100% | $ 1,890,033 |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(d) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(f) Security collateralized by an amount sufficient to pay interest and principal. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $9,390,000 or 0.5% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition | Acquisition |
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 8,955 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 47.3% |
Electric Utilities | 14.3% |
Escrowed/Pre-Refunded | 9.5% |
Transportation | 7.1% |
Health Care | 5.9% |
Special Tax | 5.2% |
Education | 5.1% |
Others* (individually less than 5%) | 5.6% |
100.0% |
*Includes net other assets |
Income Tax Information |
The fund hereby designates as capital gain dividends: For dividends with respect to the taxable year ended December 31, 2004, $4,712,000 or, if different, the net capital gain of such year. |
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, 2004 | |
Assets | ||
Investment in securities, at value (cost $1,913,338) - See accompanying schedule | $ 1,934,334 | |
Cash | 4,734 | |
Receivable for fund shares sold | 1,308 | |
Interest receivable | 23,980 | |
Prepaid expenses | 7 | |
Other receivables | 77 | |
Total assets | 1,964,440 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 69,921 | |
Payable for fund shares redeemed | 2,485 | |
Distributions payable | 1,167 | |
Accrued management fee | 595 | |
Distribution fees payable | 18 | |
Other affiliated payables | 157 | |
Other payables and accrued expenses | 64 | |
Total liabilities | 74,407 | |
Net Assets | $ 1,890,033 | |
Net Assets consist of: | ||
Paid in capital | $ 1,867,621 | |
Undistributed net investment income | 190 | |
Accumulated undistributed net realized gain (loss) on investments | 1,226 | |
Net unrealized appreciation (depreciation) on investments | 20,996 | |
Net Assets | $ 1,890,033 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2004 | |
Calculation of Maximum Offering Price Class A: | $ 10.39 | |
Maximum offering price per share (100/96.25 of $10.39) | $ 10.79 | |
Class T: | $ 10.37 | |
Maximum offering price per share (100/97.25 of $10.37) | $ 10.66 | |
Class B: | $ 10.39 | |
Class C: | $ 10.38 | |
Spartan Short-Intermediate Municipal Income: | $ 10.38 | |
Institutional Class: | $ 10.38 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
Amounts in thousands | Year ended December 31, 2004 | |
Investment Income | ||
Interest | $ 56,396 | |
Expenses | ||
Management fee | $ 6,959 | |
Transfer agent fees | 1,406 | |
Distribution fees | 198 | |
Accounting fees and expenses | 367 | |
Non-interested trustees' compensation | 10 | |
Custodian fees and expenses | 31 | |
Registration fees | 155 | |
Audit | 49 | |
Legal | 6 | |
Miscellaneous | 47 | |
Total expenses before reductions | 9,228 | |
Expense reductions | (269) | 8,959 |
Net investment income | 47,437 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on investment securities | 4,712 | |
Change in net unrealized appreciation (depreciation) on investment securities | (22,609) | |
Net gain (loss) | (17,897) | |
Net increase (decrease) in net assets resulting from operations | $ 29,540 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 47,437 | $ 48,400 |
Net realized gain (loss) | 4,712 | 12,717 |
Change in net unrealized appreciation (depreciation) | (22,609) | (8,571) |
Net increase (decrease) in net assets resulting | 29,540 | 52,546 |
Distributions to shareholders from net investment income | (47,598) | (48,268) |
Distributions to shareholders from net realized gain | (3,486) | (12,396) |
Total distributions | (51,084) | (60,664) |
Share transactions - net increase (decrease) | 37,160 | 199,628 |
Redemption fees | 65 | 43 |
Total increase (decrease) in net assets | 15,681 | 191,553 |
Net Assets | ||
Beginning of period | 1,874,352 | 1,682,799 |
End of period (including undistributed net investment income of $190 and undistributed net investment income of $351, respectively) | $ 1,890,033 | $ 1,874,352 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.50 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .250 | .115 |
Net realized and unrealized gain (loss) | (.090) | .071 |
Total from investment operations | .160 | .186 |
Distributions from net investment income | (.251) | (.111) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.270) | (.176) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.39 | $ 10.50 |
Total ReturnB,C,D | 1.55% | 1.78% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | .65% | .65%A |
Expenses net of voluntary waivers, if any | .65% | .65%A |
Expenses net of all reductions | .64% | .64%A |
Net investment income | 2.41% | 2.52%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 12 | $ 9 |
Portfolio turnover rate | 45% | 34% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .238 | .110 |
Net realized and unrealized gain (loss) | (.089) | .050 |
Total from investment operations | .149 | .160 |
Distributions from net investment income | (.240) | (.105) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.259) | (.170) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.37 | $ 10.48 |
Total ReturnB,C,D | 1.44% | 1.54% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | .76% | .77%A |
Expenses net of voluntary waivers, if any | .76% | .77%A |
Expenses net of all reductions | .75% | .76%A |
Net investment income | 2.30% | 2.41%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 20 | $ 12 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .172 | .081 |
Net realized and unrealized gain (loss) | (.080) | .059 |
Total from investment operations | .092 | .140 |
Distributions from net investment income | (.173) | (.075) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.192) | (.140) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.39 | $ 10.49 |
Total ReturnB,C,D | .89% | 1.34% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | 1.40% | 1.40%A |
Expenses net of voluntary waivers, if any | 1.40% | 1.40%A |
Expenses net of all reductions | 1.39% | 1.39%A |
Net investment income | 1.65% | 1.78%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 4 | $ 2 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2004 | 2003F |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeE | .159 | .077 |
Net realized and unrealized gain (loss) | (.080) | .048 |
Total from investment operations | .079 | .125 |
Distributions from net investment income | (.160) | (.070) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.179) | (.135) |
Redemption fees added to paid in capitalE | -H | -H |
Net asset value, end of period | $ 10.38 | $ 10.48 |
Total ReturnB,C,D | .77% | 1.20% |
Ratios to Average Net AssetsG | ||
Expenses before expense reductions | 1.52% | 1.50%A |
Expenses net of voluntary waivers, if any | 1.52% | 1.50%A |
Expenses net of all reductions | 1.51% | 1.49%A |
Net investment income | 1.53% | 1.67%A |
Supplemental Data | ||
Net assets, end of period (in millions) | $ 11 | $ 8 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Spartan Short-Intermediate Municipal Income
Years ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000F | 2000H |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 10.48 | $ 10.52 | $ 10.27 | $ 10.12 | $ 10.03 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment incomeD | .268 | .283 | .336 | .396G | .139 | .399 |
Net realized and unrealized gain (loss) | (.080) | .030 | .317 | .173G | .092 | .034 |
Total from investment operations | .188 | .313 | .653 | .569 | .231 | .433 |
Distributions from net investment income | (.269) | (.283) | (.339) | (.396) | (.140) | (.400) |
Distributions from net realized gain | (.019) | (.070) | (.064) | (.023) | (.001) | - |
Distributions in excess of net realized gain | - | - | - | - | - | (.003) |
Total distributions | (.288) | (.353) | (.403) | (.419) | (.141) | (.403) |
Redemption fees added to paid in capital | -D,I | -D,I | -D,I | -D,I | - | - |
Net asset value, end of period | $ 10.38 | $ 10.48 | $ 10.52 | $ 10.27 | $ 10.12 | $ 10.03 |
Total ReturnB,C | 1.82% | 3.01% | 6.47% | 5.70% | 2.32% | 4.45% |
Ratios to Average Net AssetsE | ||||||
Expenses before expense reductions | .49% | .49% | .49% | .49% | .49%A | .55% |
Expenses net of voluntary waivers, if any | .48% | .49% | .49% | .49% | .49%A | .54% |
Expenses net of all | .47% | .47% | .45% | .41% | .45%A | .54% |
Net investment income | 2.57% | 2.69% | 3.23% | 3.85%G | 4.17%A | 4.02% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 1,841 | $ 1,843 | $ 1,683 | $ 1,183 | $ 965 | $ 904 |
Portfolio turnover rate | 45% | 34% | 38% | 43% | 106%A | 53% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E 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 other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary 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 For the four months ended December 31.
G Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.
H For the year ended August 31.
I 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, | 2004 | 2003E |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||
Net investment incomeD | .265 | .125 |
Net realized and unrealized gain (loss) | (.088) | .059 |
Total from investment operations | .177 | .184 |
Distributions from net investment income | (.268) | (.119) |
Distributions from net realized gain | (.019) | (.065) |
Total distributions | (.287) | (.184) |
Redemption fees added to paid in capitalD | -G | -G |
Net asset value, end of period | $ 10.38 | $ 10.49 |
Total ReturnB,C | 1.71% | 1.77% |
Ratios to Average Net AssetsF | ||
Expenses before expense reductions | .49% | .48%A |
Expenses net of voluntary waivers, if any | .49% | .48%A |
Expenses net of all reductions | .48% | .47%A |
Net investment income | 2.57% | 2.69%A |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $ 1,253 | $ 414 |
Portfolio turnover rate | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 any voluntary 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
Notes to Financial Statements
For the period ended December 31, 2004
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Spartan Short-Intermediate Municipal Income Fund (the fund) is a fund of Fidelity Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, Spartan Short Intermediate Municipal Income and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of four years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities, including restricted securities, are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount.
The fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 24,516 | |
Unrealized depreciation | (3,520) | |
Net unrealized appreciation (depreciation) | 20,996 | |
Undistributed ordinary income | 194 | |
Undistributed long-term capital gain | 254 | |
Cost for federal income tax purposes | $ 1,913,338 |
Annual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
December 31, | December 31, | |
Tax-exempt Income | $ 47,598 | $ 48,268 |
Long-term Capital Gains | 3,486 | 12,396 |
Total | $ 51,084 | $ 60,664 |
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of 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.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $930,593 and $815,921, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the fund's average net assets and a group fee rate that averaged .13% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .38% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | 0% | .15% | $ 19 | $ - |
Class T | 0% | .25% | 44 | - |
Class B | .65% | .25% | 31 | 23 |
Class C | .75% | .25% | 104 | 78 |
$ 198 | $ 101 |
Sales Load. FDC receives a front-end sales charge of up to 3.75% for selling Class A shares, and 2.75% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Annual Report
4. 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 | $ 25 |
Class T | 12 |
Class B* | 8 |
Class C* | 17 |
$ 62 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the fund's Class A, Class T, Class B, Class C, Spartan Short-Intermediate Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the fund, except for Spartan Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. Citibank has also entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, with respect to Spartan Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC and FSC receive account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:
Amount | % of | |
Class A | $ 11 | .09 |
Class T | 17 | .10 |
Class B | 3 | .09 |
Class C | 11 | .11 |
Spartan Short-Intermediate Municipal Income | 1,363 | .08 |
Institutional Class | 1 | .08 |
$ 1,406 |
Citibank also has a sub-arrangement with FSC to maintain the fund's accounting records. The fee is based on the level of average net assets for the month.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $316 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Spartan Short-Intermediate Municipal Income operating expenses. During the period, this reimbursement reduced the class' expenses by $53.
In addition, through arrangements with the fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and accounting expenses by $17 and $165, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | |
Spartan Short-Intermediate Municipal Income | $ 34 |
7. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | ||
2004 | 2003A | |
From net investment income | ||
Class A | $ 303 | $ 41 |
Class T | 403 | 55 |
Class B | 58 | 11 |
Class C | 160 | 31 |
Spartan Short-Intermediate Municipal Income | 46,653 | 48,127 |
Institutional Class | 21 | 3 |
Total | $ 47,598 | $ 48,268 |
Annual Report
7. Distributions to Shareholders - continued
Years ended December 31, | ||
2004 | 2003A | |
From net realized gain | ||
Class A | $ 23 | $ 38 |
Class T | 36 | 64 |
Class B | 7 | 14 |
Class C | 20 | 44 |
Spartan Short-Intermediate Municipal Income | 3,398 | 12,233 |
Institutional Class | 2 | 3 |
Total | $ 3,486 | $ 12,396 |
A Distributions for Class A, Class T, Class B, Class C and Institutional Class are for the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
8. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2004 | 2003A | 2004 | 2003A | |
Class A | ||||
Shares sold | 1,095 | 946 | $ 11,465 | $ 9,927 |
Reinvestment of distributions | 24 | 5 | 253 | 55 |
Shares redeemed | (785) | (84) | (8,128) | (882) |
Net increase (decrease) | 334 | 867 | $ 3,590 | $ 9,100 |
Class T | ||||
Shares sold | 1,569 | 1,169 | $ 16,393 | $ 12,269 |
Reinvestment of distributions | 30 | 8 | 309 | 80 |
Shares redeemed | (818) | (22) | (8,551) | (231) |
Net increase (decrease) | 781 | 1,155 | $ 8,151 | $ 12,118 |
Class B | ||||
Shares sold | 214 | 234 | $ 2,231 | $ 2,454 |
Reinvestment of distributions | 4 | 2 | 42 | 17 |
Shares redeemed | (84) | (2) | (870) | (16) |
Net increase (decrease) | 134 | 234 | $ 1,403 | $ 2,455 |
Class C | ||||
Shares sold | 658 | 777 | $ 6,848 | $ 8,150 |
Reinvestment of distributions | 10 | 3 | 103 | 36 |
Shares redeemed | (295) | (57) | (3,054) | (598) |
Net increase (decrease) | 373 | 723 | $ 3,897 | $ 7,588 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
8. Share Transactions - continued
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2004 | 2003A | 2004 | 2003A | |
Spartan Short-Intermediate Municipal Income | ||||
Shares sold | 75,115 | 89,461 | $ 784,282 | $ 942,790 |
Reinvestment of distributions | 3,669 | 4,591 | 38,189 | 48,317 |
Shares redeemed | (77,123) | (78,187) | (803,196) | (823,154) |
Net increase (decrease) | 1,661 | 15,865 | $ 19,275 | $ 167,953 |
Institutional Class | ||||
Shares sold | 110 | 41 | $ 1,153 | $ 434 |
Reinvestment of distributions | 1 | 1 | 8 | 4 |
Shares redeemed | (30) | (2) | (317) | (24) |
Net increase (decrease) | 81 | 40 | $ 844 | $ 414 |
A Share transactions for Class A, Class T, Class B, Class C and Institutional Class are for the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Spartan Short-Intermediate Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Spartan Short-Intermediate Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2004 and the results of its operations, the changes in its net assets and the financial highlights for 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 Spartan Short-Intermediate Municipal Income Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2005
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for William O. McCoy, Dennis J. Dirks, and Kenneth L. Wolfe, each of the Trustees oversees 301 funds advised by FMR or an affiliate. Mr. McCoy oversees 303 funds advised by FMR or an affiliate. Mr. Dirks and Mr. Wolfe oversee 233 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (74)** | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (43)** | |
Year of Election or Appointment: 2001 Senior Vice President of the fund (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (50) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (52) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* 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.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (56) | |
Year of Election or Appointment: 2005 Mr. Dirks also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). | |
Robert M. Gates (61) | |
Year of Election or Appointment: 1997 Dr. Gates is Vice Chairman of the non-interested Trustees (2005). Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001), and Brinker International (restaurant management, 2003). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
George H. Heilmeier (68) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001), Teletech Holdings (customer management services), and HRL Laboratories (private research and development, 2004). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE) (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), and Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002). | |
Marie L. Knowles (58) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (60) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Co-Chairman and a Director of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Italtel Holding S.p.A. (telecommunications (Milan, Italy), 2004) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (71) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals), where he served as CEO until April 1998, retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. He is a member of the Executive Committee of the Independent Director's Council of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (71) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), and Progress Energy, Inc. (electric utility). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
Cornelia M. Small (60) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000) and Chairperson (2002) of the Investment Committee, and a member (2002) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1998). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (65) | |
Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman of the Board (2000), CEO (2002), a position he previously held from 1995-2000, Chairman of the Executive Committee (2000), and a Member of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (65) | |
Year of Election or Appointment: 2005 Mr. Wolfe also serves as a Trustee (2005) or Member of the Advisory Board (2004) of other investment companies advised by FMR. Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003), Bausch & Lomb, Inc., and Revlon Inc. (2004). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (61) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Dwight D. Churchill (51) | |
Year of Election or Appointment: 1997 Vice President of the fund. He serves as Head of Fidelity's Fixed-Income Division (2000), Vice President of Fidelity's Money Market Funds (2000), Vice President of Fidelity's Bond Funds (1997), and Senior Vice President of FIMM (2000) and FMR (1997). Mr. Churchill joined Fidelity in 1993 as Vice President and Group Leader of Taxable Fixed-Income Investments. | |
Charles S. Morrison (44) | |
Year of Election or Appointment: 2002 Vice President of the fund. Mr. Morrison also serves as Vice President of Fidelity's Bond Funds (2002), and Vice President of certain Asset Allocation and Balanced Funds (2002). He serves as Vice President (2002) and Bond Group Leader (2002) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002) and FMR (2002). Mr. Morrison joined Fidelity in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
Mark Sommer (44) | |
Year of Election or Appointment: 2004 Vice President of the fund. Mr. Sommer also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Sommer worked as an analyst and manager. | |
Eric D. Roiter (56) | |
Year of Election or Appointment: 1998 Secretary of the fund. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Vice President and Secretary of FDC; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Management & Research (Far East) Inc. (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). | |
Stuart Fross (45) | |
Year of Election or Appointment: 2003 Assistant Secretary of the fund. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Christine Reynolds (46) | |
Year of Election or Appointment: 2004 President, Treasurer, and Anti-Money Laundering (AML) officer of the fund. Ms. Reynolds also serves as President, Treasurer, and AML officer of other Fidelity funds (2004) and is a Vice President (2003) and an employee (2002) of FMR. Before joining Fidelity Investments, Ms. Reynolds worked at PricewaterhouseCoopers LLP (PwC) (1980-2002), where she was most recently an audit partner with PwC's investment management practice. | |
Timothy F. Hayes (54) | |
Year of Election or Appointment: 2002 Chief Financial Officer of the fund. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
Kenneth A. Rathgeber (57) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of the fund. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004) and Executive Vice President of Risk Oversight for Fidelity Investments (2002). Previously, he served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
John R. Hebble (46) | |
Year of Election or Appointment: 2003 Deputy Treasurer of the fund. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
Kimberley H. Monasterio (41) | |
Year of Election or Appointment: 2004 Deputy Treasurer of the fund. Ms. Monasterio also serves as Deputy Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
John H. Costello (58) | |
Year of Election or Appointment: 1986 Assistant Treasurer of the fund. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (50) | |
Year of Election or Appointment: 2004 Assistant Treasurer of the fund. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (49) | |
Year of Election or Appointment: 2002 Assistant Treasurer of the fund. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Kenneth B. Robins (35) | |
Year of Election or Appointment: 2004 Assistant Treasurer of the fund. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR (2004). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Annual Report
Distributions
The Board of Trustees of Advisor Short-Intermediate Municipal Income 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 | 02/07/05 | 02/04/05 | $.003 |
During fiscal year ended 2004, 100% of the fund's income dividends was free from federal income tax, and 11.57% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2005 of amounts for use in preparing 2004 income tax returns.
Annual Report
Proxy Voting Results
A special meeting of the fund's shareholders was held on April 14, 2004 The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* | ||
# of | % of | |
Affirmative | 3,415,899,540.41 | 73.098 |
Against | 857,186,718.73 | 18.343 |
Abstain | 194,806,370.40 | 4.169 |
Broker | 205,155,704.48 | 4.390 |
TOTAL | 4,673,048,334.02 | 100.000 |
PROPOSAL 2 | ||
To elect a Board of Trustees.* | ||
# of | % of | |
J. Michael Cook | ||
Affirmative | 4,338,349,812.56 | 92.838 |
Withheld | 334,698,521.46 | 7.162 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ralph F. Cox | ||
Affirmative | 4,334,671,421.01 | 92.759 |
Withheld | 338,376,913.01 | 7.241 |
TOTAL | 4,673,048,334.02 | 100.000 |
Laura B. Cronin | ||
Affirmative | 4,332,816,177.06 | 92.719 |
Withheld | 340,232,156.96 | 7.281 |
TOTAL | 4,673,048,334.02 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,336,851,658.96 | 92.806 |
Withheld | 336,196,675.06 | 7.194 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
George H. Heilmeier | ||
Affirmative | 4,334,549,149.07 | 92.756 |
Withheld | 338,499,184.95 | 7.244 |
TOTAL | 4,673,048,334.02 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 4,327,320,608.55 | 92.602 |
Withheld | 345,727,725.47 | 7.398 |
TOTAL | 4,673,048,334.02 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 4,322,104,507.32 | 92.490 |
Withheld | 350,943,826.70 | 7.510 |
TOTAL | 4,673,048,334.02 | 100.000 |
Donald J. Kirk | ||
Affirmative | 4,335,814,201.97 | 92.783 |
Withheld | 337,234,132.05 | 7.217 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marie L. Knowles | ||
Affirmative | 4,333,892,089.64 | 92.742 |
Withheld | 339,156,244.38 | 7.258 |
TOTAL | 4,673,048,334.02 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,340,856,926.26 | 92.891 |
Withheld | 332,191,407.76 | 7.109 |
TOTAL | 4,673,048,334.02 | 100.000 |
Marvin L. Mann | ||
Affirmative | 4,336,736,818.96 | 92.803 |
Withheld | 336,311,515.06 | 7.197 |
TOTAL | 4,673,048,334.02 | 100.000 |
William O. McCoy | ||
Affirmative | 4,338,426,324.60 | 92.839 |
Withheld | 334,622,009.42 | 7.161 |
TOTAL | 4,673,048,334.02 | 100.000 |
# of | % of | |
Robert L. Reynolds | ||
Affirmative | 4,339,017,198.22 | 92.852 |
Withheld | 334,031,135.80 | 7.148 |
TOTAL | 4,673,048,334.02 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,338,546,239.15 | 92.842 |
Withheld | 334,502,094.87 | 7.158 |
TOTAL | 4,673,048,334.02 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Annual Report
Annual Report
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASTMI-UANN-0205
1.796657.101
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Item 2. Code of Ethics
As of the end of the period, December 31, 2004, Fidelity Municipal Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Marie L. Knowles is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Knowles is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
(a) Audit Fees.
For the fiscal years ended December 31, 2004 and December 31, 2003, the aggregate Audit Fees billed by PricewaterhouseCoopers LLP (PwC) for professional services rendered for the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years, for the Spartan Michigan Municipal Income Fund, Spartan Minnesota Municipal Income Fund, Spartan Municipal Income Fund, Spartan Ohio Municipal Income Fund, Spartan Pennsylvania Municipal Income Fund, and Spartan Short-Intermediate Municipal Income Fund (the funds) and for all funds in the Fidelity Group of Funds are shown in the table below.
Fund | 2004A | 2003A |
Spartan Michigan Municipal Income Fund | $38,000 | $47,000 |
Spartan Minnesota Municipal Income Fund | $37,000 | $46,000 |
Spartan Municipal Income Fund | $60,000 | $66,000 |
Spartan Ohio Municipal Income Fund | $38,000 | $46,000 |
Spartan Pennsylvania Municipal Income Fund | $37,000 | $46,000 |
Spartan Short-Intermediate Municipal Income Fund | $41,000 | $50,000 |
All funds in the Fidelity Group of Funds audited by PwC | $10,800,000 | $10,600,000 |
A | Aggregate amounts may reflect rounding. |
(b) Audit-Related Fees.
In each of the fiscal years ended December 31, 2004 and December 31, 2003 the aggregate Audit-Related Fees billed by PwC for services rendered for assurance and related services to each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.
Fund | 2004A | 2003A,B |
Spartan Michigan Municipal Income Fund | $0 | $0 |
Spartan Minnesota Municipal Income Fund | $0 | $0 |
Spartan Municipal Income Fund | $0 | $0 |
Spartan Ohio Municipal Income Fund | $0 | $0 |
Spartan Pennsylvania Municipal Income Fund | $0 | $0 |
Spartan Short-Intermediate Municipal Income Fund | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
B | Includes amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time. |
In each of the fiscal years ended December 31, 2004 and December 31, 2003, the aggregate Audit-Related Fees that were billed by PwC that were required to be approved by the Audit Committee for services rendered on behalf of Fidelity Management & Research Company (FMR) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the funds ("Fund Service Providers") for assurance and related services that relate directly to the operations and financial reporting of each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.
Billed By | 2004A | 2003A,B |
PwC | $0 | $50,000 |
A | Aggregate amounts may reflect rounding. |
B | Includes amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time. |
Fees included in the audit-related category comprise assurance and related services (e.g., due diligence services) that are traditionally performed by the independent registered public accounting firm. These audit-related services include due diligence related to mergers and acquisitions, accounting consultations and audits in connection with acquisitions, internal control reviews, attest services that are not required by statute or regulation and consultation concerning financial accounting and reporting standards.
(c) Tax Fees.
In each of the fiscal years ended December 31, 2004 and December 31, 2003, the aggregate Tax Fees billed by PwC for professional services rendered for tax compliance, tax advice, and tax planning for each fund is shown in the table below.
Fund | 2004A | 2003A,B |
Spartan Michigan Municipal Income Fund | $2,400 | $2,200 |
Spartan Minnesota Municipal Income Fund | $2,400 | $2,200 |
Spartan Municipal Income Fund | $2,400 | $2,200 |
Spartan Ohio Municipal Income Fund | $2,400 | $2,200 |
Spartan Pennsylvania Municipal Income Fund | $2,400 | $2,200 |
Spartan Short-Intermediate Municipal Income Fund | $2,400 | $2,200 |
A | Aggregate amounts may reflect rounding. |
B | Includes amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time. |
In each of the fiscal years ended December 31, 2004 and December 31, 2003, the aggregate Tax Fees billed by PwC that were required to be approved by the Audit Committee for professional services rendered on behalf of the Fund Service Providers for tax compliance, tax advice, and tax planning that relate directly to the operations and financial reporting of each fund is shown in the table below.
Billed By | 2004A | 2003A,B |
PwC | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
B | Includes amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time. |
Fees included in the Tax Fees category comprise all services performed by professional staff in the independent registered public accounting firm's tax division except those services related to the audit. Typically, this category would include fees for tax compliance, tax planning, and tax advice. Tax compliance, tax advice, and tax planning services include preparation of original and amended tax returns, claims for refund and tax payment-planning services, assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.
(d) All Other Fees.
In each of the fiscal years ended December 31, 2004 and December 31, 2003, the aggregate Other Fees billed by PwC for all other non-audit services rendered to the funds is shown in the table below.
Fund | 2004A | 2003A,B |
Spartan Michigan Municipal Income Fund | $1,700 | $1,700 |
Spartan Minnesota Municipal Income Fund | $1,500 | $1,500 |
Spartan Municipal Income Fund | $5,300 | $5,500 |
Spartan Ohio Municipal Income Fund | $1,600 | $1,500 |
Spartan Pennsylvania Municipal Income Fund | $1,500 | $1,400 |
Spartan Short-Intermediate Municipal Income Fund | $2,800 | $2,700 |
A | Aggregate amounts may reflect rounding. |
B | Includes amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time. |
In each of the fiscal years ended December 31, 2004 and December 31, 2003, the aggregate Other Fees billed by PwC that were required to be approved by the Audit Committee for all other non-audit services rendered on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund is shown in the table below.
Billed By | 2004A | 2003A,B |
PwC | $490,000 | $190,000 |
A | Aggregate amounts may reflect rounding. |
B | Includes amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time. |
Fees included in the All Other Fees category include services related to internal control reviews, strategy and other consulting, financial information systems design and implementation, consulting on other information systems, and other tax services unrelated to the fund.
(e) (1) | Audit Committee Pre-Approval Policies and Procedures: |
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity Fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (Covered Service) are subject to approval by the Audit Committee before such service is provided. Non-audit services provided by a fund audit firm for a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund (Non-Covered Service) but that are expected to exceed $50,000 are also subject to pre-approval by the Audit Committee.
All Covered Services, as well as Non-Covered Services that are expected to exceed $50,000, must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee. Neither pre-approval nor advance notice of Non-Covered Service engagements for which fees are not expected to exceed $50,000 is required; such engagements are to be reported to the Audit Committee monthly.
(e) (2) | Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X: |
Audit-Related Fees:
There were no amounts, including amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time, that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2004 and December 31, 2003 on behalf of each fund.
There were no amounts, including amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time, that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2004 and December 31, 2003 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
Tax Fees:
There were no amounts, including amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time, that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2004 and December 31, 2003 on behalf of each fund.
There were no amounts, including amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time, that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2004 and December 31, 2003 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
All Other Fees:
There were no amounts, including amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time, that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2004 and December 31, 2003 on behalf of each fund.
There were no amounts, including amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time, that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2004 and December 31, 2003 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
(f) According to PwC for the fiscal year ended December 31, 2004, the percentage of hours spent on the audit of each fund's financial statements for the most recent fiscal year that were attributed to work performed by persons who are not full-time, permanent employees of PwC is as follows:
Fund | 2004 |
Spartan Michigan Municipal Income Fund | 0% |
Spartan Minnesota Municipal Income Fund | 0% |
Spartan Municipal Income Fund | 0% |
Spartan Ohio Municipal Income Fund | 0% |
Spartan Pennsylvania Municipal Income Fund | 0% |
Spartan Short-Intermediate Municipal Income Fund | 0% |
(g) For the fiscal years ended December 31, 2004 and December 31, 2003, the aggregate fees billed by PwC of $2,700,000A and $1,900,000A,B for non-audit services rendered on behalf of the funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Fund Service Providers relating to Covered Services and Non-Covered Services are shown in the table below.
2004A | 2003A,B | |
Covered Services | $550,000 | $250,000 |
Non-Covered Services | $2,150,000 | $1,650,000 |
A | Aggregate amounts may reflect rounding. |
B | Includes amounts related to non-audit services prior to May 6, 2003 that would have been subject to pre-approval if the SEC rules relating to the pre-approval of non-audit services had been in effect at that time. |
(h) The trust's Audit Committee has considered Non-Covered Services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the funds, taking into account representations from PwC, in accordance with Independence Standards Board Standard No.1, regarding its independence from the funds and their related entities.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Municipal Trust
By: | /s/Christine Reynolds |
Christine Reynolds | |
President and Treasurer | |
Date: | February 22, 2005 |
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/Christine Reynolds |
Christine Reynolds | |
President and Treasurer | |
Date: | February 22, 2005 |
By: | /s/Timothy F. Hayes |
Timothy F. Hayes | |
Chief Financial Officer | |
Date: | February 22, 2005 |