UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02628
Fidelity Municipal Trust
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Scott C. Goebel, 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 |
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Date of reporting period: | December 31, 2011 |
Item 1. Reports to Stockholders
Fidelity®
Michigan Municipal
Income Fund
and
Fidelity
Michigan Municipal Money Market Fund
Annual Report
December 31, 2011
Contents
Chairman's Message | The Chairman's message to shareholders | |
Shareholder Expense Example | An example of shareholder expenses. | |
Fidelity Michigan Municipal Income Fund | ||
Performance | How the fund has done over time. | |
Management's | The Portfolio Manager's review of fundperformance and strategy. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Fidelity Michigan Municipal Money Market Fund | ||
Investment Changes/ | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the Financial Statements | |
Report of Independent Registered Public Accounting Firm |
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Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
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To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
The investment environment in 2011 was characterized by a number of headline events, most notably the early-August decision by Standard & Poor's to lower the long-term sovereign credit rating of the United States. The historic downgrade followed a stalemate in which Congress struggled to address the debt ceiling, heightening investor anxiety and within a matter of days wiping out a solid first-half advance that was largely driven by encouraging corporate earnings and economic activity. At the same time, investors were becoming increasingly concerned about the sovereign debt crisis in Europe and its potential to derail the U.S. economy, as well as persistently high unemployment. The combination of these factors set off a wave of unusually high volatility that lasted until late in the year, with wide weekly, and even daily, swings fueled largely by the latest developments coming out of the eurozone.
Against this backdrop, equities struggled to gain any significant momentum in the second half, and finished 2011 with only a modest gain, due in part to a strong October. High-grade bonds, meanwhile, benefited from periodic flights to quality and turned in a solid performance, paced by municipal issues and Treasuries.
Financial markets are difficult to predict, of course, but you can help put the odds in your favor by following these time-tested investment principles. One of the basic tenets is to invest according to your time horizon. For long-term investors, riding out the markets' inevitable ups and downs has proven much more effective than making decisions based on short-term developments. If your goal is approaching, you can also benefit from patience and restraint, rather than attempting to time the market.
Asset allocation is another principle to manage risk. As you spread your portfolio among the asset classes, be sure to consider your time horizon, risk tolerance and investment objectives. After deciding on a suitable allocation strategy, make sure your portfolio is adequately diversified, with exposure to stocks of small-, mid- and large-cap companies in a range of sectors, for example.
Lastly, investing a certain amount of money on a regular basis - a principle known as dollar-cost averaging - can help lower the average cost of your purchases, while also giving you the discipline to avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to learn more by visiting us on the Internet, dropping by one of our Investor Centers or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Abigail P. Johnson
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, 2011 to December 31, 2011).
Actual Expenses
The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annual Report
| Annualized | Beginning | Ending | Expenses Paid |
Fidelity Michigan Municipal Income Fund | .48% |
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Actual |
| $ 1,000.00 | $ 1,056.40 | $ 2.49 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Fidelity Michigan Municipal Money Market Fund | .17% |
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|
|
Actual |
| $ 1,000.00 | $ 1,000.10 | $ .86** |
HypotheticalA |
| $ 1,000.00 | $ 1,024.35 | $ .87** |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
** If certain fees were not voluntarily waived by FMR or its affiliates during the period, the annualized expense ratio for the Michigan Municipal Money Market Fund would have been .54% and the expenses paid in the actual and hypothetical examples above would have been $2.72 and $2.75, respectively.
Annual Report
Fidelity® Michigan Municipal Income Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2011 | Past 1 | Past 5 | Past 10 |
Fidelity® Michigan Municipal Income Fund | 9.20% | 4.83% | 5.06% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Michigan Municipal Income Fund on December 31, 2001. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital® Municipal Bond Index performed over the same period.
Annual Report
Fidelity Michigan Municipal Income Fund
Management's Discussion of Fund Performance
Market Recap: Municipal bonds generated a low double-digit return for the 12 months ending December 31, 2011, ranking them as one of the year's best-performing asset classes. The Barclays Capital® Municipal Bond Index - a measure of more than 46,000 tax-exempt investment-grade fixed-rate bonds - advanced 10.70%, significantly outpacing the 7.84% gain of the taxable investment-grade debt market, as measured by the Barclays Capital® U.S. Aggregate Bond Index. In early 2011, muni prices fell due to inflation concern, uncertain tax policy, anticipated heavy supply and the lingering effects of late-2010 headlines forecasting an unprecedented wave of issuer defaults. But in February, munis began what amounted to a virtually uninterrupted rally, as demand surged, supply was muted, widespread defaults didn't materialize and the fiscal health of issuers improved. During the summer, a dimming U.S. economic outlook, unresolved debt woes in Europe and legislative wrangling over the U.S. debt ceiling fueled further demand for munis, as U.S. investors sought haven against global economic uncertainty. The muni sector lost modest ground in October, due in part to the ongoing challenging credit environment and various proposals out of Washington, D.C., that could potentially limit munis' tax-free benefits. However, those losses were quickly erased in November, and munis posted a strong gain in December.
Comments from Jamie Pagliocco, Portfolio Manager of Fidelity® Michigan Municipal Income Fund: For the year, the fund returned 9.20%, while the Barclays Capital Michigan Enhanced Municipal Bond Index rose 10.73%. The fund's underweighted exposure to health care and transportation bonds was the main detractor from relative performance. Health care bonds were some one of the market's best-performing securities, due to investors' surging appetite for higher-yielding, tax-free bonds. Transportation bonds outpaced the index, as demand for them was strong throughout much of the period. In contrast, out-of-benchmark holdings in Puerto Rico bonds bolstered relative performance, because they generally outperformed as market participants gravitated to their comparatively high yields and triple-tax-exempt status as a U.S. territory, especially in light of various actions taken by the government there to stabilize its fiscal situation. The fund's performance also got a modest boost from its overweighting in local general obligation bonds (GOs), which fared better than state-backed bonds, an area in which the fund was underweighted.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Michigan Municipal Income Fund
Investment Changes (Unaudited)
Top Five Sectors as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
General Obligations | 44.3 | 45.8 |
Water & Sewer | 19.4 | 20.7 |
Health Care | 15.4 | 15.8 |
Special Tax | 5.5 | 6.0 |
Education | 5.1 | 5.0 |
Weighted Average Maturity as of December 31, 2011 | ||
|
| 6 months ago |
Years | 6.0 | 6.3 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2011 | ||
|
| 6 months ago |
Years | 6.7 | 6.9 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-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. Duration takes into account any call or put option embedded in the bonds. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2011 | As of June 30, 2011 | ||||||
![]() | AAA 6.9% |
| ![]() | AAA 7.7% |
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![]() | AA,A 84.3% |
| ![]() | AA,A 85.8% |
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![]() | BBB 2.4% |
| ![]() | BBB 2.7% |
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![]() | BB and Below 1.3% |
| ![]() | BB and Below 1.3% |
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![]() | Not Rated 1.7% |
| ![]() | Not Rated 1.7% |
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![]() | Short-Term |
| ![]() | Short-Term |
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We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Fidelity Michigan Municipal Income Fund
Investments December 31, 2011
Showing Percentage of Net Assets
Municipal Bonds - 96.6% | ||||
| Principal Amount | Value | ||
Guam - 0.3% | ||||
Guam Ed. Fing. Foundation Ctfs. of Prtn.: | ||||
(Guam Pub. School Facilities Proj.) Series 2006 A, 5% 10/1/16 | $ 1,045,000 | $ 1,105,359 | ||
Series 2006 A, 5% 10/1/23 | 1,000,000 | 997,290 | ||
| 2,102,649 | |||
Michigan - 94.0% | ||||
Algonac Cmnty. Schools Series 2008, 5.25% 5/1/28 (FSA Insured) | 1,575,000 | 1,718,829 | ||
Allegan Pub. School District Series 2008: | ||||
5% 5/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,570,000 | 1,708,097 | ||
5% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,545,000 | 1,777,461 | ||
Ann Arbor Bldg. Auth. Series 2005 A: | ||||
5% 3/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,405,000 | 1,566,575 | ||
5% 3/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,440,000 | 1,605,600 | ||
Ann Arbor Econ. Dev. Corp. Ltd. Oblig. Rev. (Glacier Hills, Inc. Proj.) 8.375% 1/15/19 (Escrowed to Maturity) | 2,220,000 | 2,779,773 | ||
Bay City Gen. Oblig. Series 1991, 0% 6/1/15 (AMBAC Insured) | 1,725,000 | 1,567,042 | ||
Brighton Area School District Livingston County Series II, 0% 5/1/15 (AMBAC Insured) | 10,000,000 | 9,305,000 | ||
Caledonia Cmnty. Schools Counties of Kent, Allegan and Barry Series 2003: | ||||
5.25% 5/1/17 | 1,370,000 | 1,444,035 | ||
5.25% 5/1/18 | 1,100,000 | 1,158,542 | ||
Carman-Ainsworth Cmnty. School District Series 2005: | ||||
5% 5/1/16 (FSA Insured) | 1,000,000 | 1,109,210 | ||
5% 5/1/17 (FSA Insured) | 2,065,000 | 2,279,925 | ||
Carrier Creek Drainage District #326 Series 2005: | ||||
5% 6/1/16 (AMBAC Insured) | 1,620,000 | 1,811,549 | ||
5% 6/1/25 (AMBAC Insured) | 1,775,000 | 1,910,539 | ||
Charles Stewart Mott Cmnty. College Series 2005, 5% 5/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,675,000 | 1,852,198 | ||
Charter Township of Commerce Gen. Oblig. Series 2009 B, 5.125% 12/1/38 | 970,000 | 1,038,259 | ||
Chelsea School District Series 2008: | ||||
5% 5/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,720,000 | 1,903,730 | ||
5% 5/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,675,000 | 1,961,140 | ||
Clarkston Cmnty. Schools Series 2008: | ||||
5% 5/1/15 (FSA Insured) | 1,905,000 | 2,081,327 | ||
5% 5/1/16 (FSA Insured) | 1,855,000 | 2,072,851 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Comstock Park Pub. Schools Series 2005, 5% 5/1/16 (FSA Insured) | $ 1,000,000 | $ 1,101,700 | ||
Constantine Pub. Schools Series 2002, 5% 5/1/25 | 1,130,000 | 1,174,251 | ||
Detroit City School District: | ||||
(School Bldg. & Site Impt. Proj.) Series 2003, 5% 5/1/33 | 1,800,000 | 1,802,844 | ||
Series 2003 B, 5% 5/1/24 (FGIC Insured) | 5,000,000 | 5,089,350 | ||
Series 2003, 5.25% 5/1/15 (FGIC Insured) | 3,085,000 | 3,211,794 | ||
Series 2005 A, 5.25% 5/1/30 | 5,000,000 | 5,185,100 | ||
Detroit Convention Facilities Rev. (Cobo Hall Expansion Proj.) Series 2003, 5% 9/30/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,765,000 | 4,881,885 | ||
Detroit Gen. Oblig.: | ||||
Series 2004 B1, 5% 4/1/13 (AMBAC Insured) | 2,000,000 | 1,990,140 | ||
Series 2004, 5% 4/1/15 (AMBAC Insured) | 3,800,000 | 3,691,472 | ||
Series 2005 B, 5% 4/1/13 (FSA Insured) | 1,830,000 | 1,870,955 | ||
Series 2005 C, 5% 4/1/13 (FSA Insured) | 1,995,000 | 2,039,648 | ||
Detroit Swr. Disp. Rev.: | ||||
Series 1998, 5.5% 7/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,050,000 | 3,443,115 | ||
Series 2001 E, 5.75% 7/1/31 (Berkshire Hathaway Assurance Corp. Insured) (FGIC Insured) | 2,700,000 | 2,967,678 | ||
Series 2003 B, 7.5% 7/1/33 (FSA Insured) | 2,600,000 | 3,144,570 | ||
Series 2003, 5% 7/1/32 (FSA Insured) | 535,000 | 538,499 | ||
Series 2006: | ||||
5% 7/1/15 (FGIC Insured) | 1,085,000 | 1,170,563 | ||
5% 7/1/36 | 7,800,000 | 7,713,108 | ||
Series A, 0% 7/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,730,000 | 6,247,728 | ||
Detroit Wtr. Supply Sys. Rev.: | ||||
Series 1993, 6.5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,340,000 | 7,018,507 | ||
Series 2003 A, 5% 7/1/34 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000,000 | 4,986,600 | ||
Series 2004: | ||||
5% 7/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000,000 | 5,373,550 | ||
5.25% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,108,460 | ||
5.25% 7/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000,000 | 2,201,800 | ||
5.25% 7/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,035,000 | 6,403,195 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Detroit Wtr. Supply Sys. Rev.: - continued | ||||
Series 2005 B, 5.5% 7/1/35 (Berkshire Hathaway Assurance Corp. Insured) (FGIC Insured) | $ 2,800,000 | $ 2,935,184 | ||
Series 2006 B, 7% 7/1/36 (FSA Insured) | 2,700,000 | 3,206,250 | ||
Series 2006, 5% 7/1/33 (FSA Insured) | 5,000,000 | 4,922,300 | ||
DeWitt Pub. Schools Gen. Oblig. Series 2008: | ||||
5% 5/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,475,000 | 1,644,212 | ||
5% 5/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,550,000 | 1,809,191 | ||
Dexter Cmnty. Schools: | ||||
(School Bldg. and Site Proj.) Series 1998, 5.1% 5/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,139,220 | ||
Series 2003, 5% 5/1/18 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,955,000 | 2,061,157 | ||
Durand Area Schools Gen. Oblig. Series 2006: | ||||
5% 5/1/27 (FSA Insured) | 1,225,000 | 1,318,933 | ||
5% 5/1/28 (FSA Insured) | 1,250,000 | 1,340,625 | ||
5% 5/1/29 (FSA Insured) | 1,275,000 | 1,361,585 | ||
East Grand Rapids Pub. School District Gen. Oblig. Series 2004: | ||||
5% 5/1/16 (FSA Insured) | 1,425,000 | 1,574,611 | ||
5% 5/1/17 (FSA Insured) | 1,985,000 | 2,188,522 | ||
East Lansing School District Gen. Oblig. Series 2005, 5% 5/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,530,000 | 3,708,124 | ||
Farmington Pub. School District Gen. Oblig. Series 2005, 5% 5/1/18 (FSA Insured) | 4,500,000 | 4,993,020 | ||
Fenton Area Pub. Schools Gen. Oblig. Series 2005, 5% 5/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,775,000 | 1,916,219 | ||
Ferris State Univ. Rev. Series 2005: | ||||
5% 10/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,255,000 | 1,355,174 | ||
5% 10/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,320,000 | 1,416,584 | ||
Fraser Pub. School District Series 2005: | ||||
5% 5/1/16 (FSA Insured) | 1,055,000 | 1,168,054 | ||
5% 5/1/17 (FSA Insured) | 1,615,000 | 1,783,654 | ||
Garden City School District: | ||||
Series 2005: | ||||
5% 5/1/14 (FSA Insured) | 1,210,000 | 1,309,740 | ||
5% 5/1/17 (FSA Insured) | 1,390,000 | 1,524,761 | ||
Series 2006, 5% 5/1/19 (FSA Insured) | 1,205,000 | 1,331,296 | ||
Genesee County Gen. Oblig. Series 2005: | ||||
5% 5/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,355,000 | 1,490,039 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Genesee County Gen. Oblig. Series 2005: - continued | ||||
5% 5/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,505,000 | $ 1,646,846 | ||
Gibraltar School District Series 2005: | ||||
5% 5/1/16 (FSA Insured) | 1,230,000 | 1,352,582 | ||
5% 5/1/17 (FSA Insured) | 1,230,000 | 1,348,830 | ||
Grand Ledge Pub. Schools District (School Bldg. & Site Proj.) Series 2007: | ||||
5% 5/1/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,175,000 | 1,293,405 | ||
5% 5/1/24 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,300,000 | 1,418,937 | ||
5% 5/1/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,300,000 | 4,554,818 | ||
Grand Rapids Cmnty. College Series 2008: | ||||
5% 5/1/17 (FSA Insured) | 1,315,000 | 1,531,975 | ||
5% 5/1/19 (FSA Insured) | 1,315,000 | 1,546,453 | ||
Grand Rapids San. Swr. Sys. Rev.: | ||||
Series 2004, 5% 1/1/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,500,000 | 2,582,000 | ||
Series 2005: | ||||
5% 1/1/34 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000,000 | 3,086,940 | ||
5.125% 1/1/25 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000,000 | 2,150,780 | ||
Series 2008, 5% 1/1/38 | 3,320,000 | 3,506,119 | ||
Series 2010, 5% 1/1/28 | 3,000,000 | 3,515,190 | ||
Grand Rapids Wtr. Supply Sys. Series 2005, 5% 1/1/35 (FGIC Insured) | 5,000,000 | 5,267,450 | ||
Grand Traverse County Hosp. Series 2011 A, 5.375% 7/1/35 | 2,000,000 | 2,051,540 | ||
Grand Valley Michigan State Univ. Rev.: | ||||
Series 2007, 5% 12/1/19 (AMBAC Insured) | 500,000 | 574,435 | ||
Series 2008, 5% 12/1/33 (FSA Insured) | 5,000,000 | 5,248,200 | ||
Series 2009, 5.625% 12/1/29 | 2,400,000 | 2,608,800 | ||
Grosse Ile Township School District Unltd. Tax Gen. Oblig. Series 2006: | ||||
5% 5/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,950,000 | 2,078,388 | ||
5% 5/1/32 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,950,000 | 2,056,685 | ||
Harper Creek Cmnty. School District (School Bldg. & Site Proj.) Series 2008: | ||||
4.75% 5/1/27 (FSA Insured) | 500,000 | 539,270 | ||
5.25% 5/1/21 (FSA Insured) | 2,000,000 | 2,355,560 | ||
5.25% 5/1/24 (FSA Insured) | 2,100,000 | 2,398,746 | ||
Haslett Pub. Schools Series 2005, 5% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,100,000 | 1,221,264 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Hudsonville Pub. Schools: | ||||
Series 2005, 5% 5/1/16 (FSA Insured) | $ 1,000,000 | $ 1,118,170 | ||
5.25% 5/1/41 | 1,750,000 | 1,875,090 | ||
Huron Valley School District Series 2003, 5.25% 5/1/16 | 2,450,000 | 2,597,784 | ||
Jackson County Hosp. Fin. Auth. Hosp. Rev. (Allegiance Health Proj.) Series 2010 A, 5% 6/1/37 (FSA Insured) | 2,250,000 | 2,321,550 | ||
Kalamazoo Hosp. Fin. Auth. Hosp. Facilities Rev. (Bronson Methodist Hosp. Proj.) Series 2003 B, 5.25% 5/15/14 (FSA Insured) | 1,200,000 | 1,287,168 | ||
Kalamazoo Pub. Schools Series 2006: | ||||
5% 5/1/17 (FSA Insured) | 3,165,000 | 3,601,232 | ||
5.25% 5/1/16 (FSA Insured) | 1,500,000 | 1,730,445 | ||
Kent County Arpt. Rev. (Gerald R. Ford Int'l. Arpt. Proj.) Series 2007, 5% 1/1/37 | 4,180,000 | 4,334,785 | ||
Kent County Bldg. Auth. Series 2005, 5.5% 6/1/21 | 3,025,000 | 3,883,707 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev.: | ||||
(Butterworth Hosp. Proj.) Series A, 7.25% 1/15/13 (Escrowed to Maturity) | 1,080,000 | 1,100,920 | ||
(Spectrum Health Sys. Proj.): | ||||
Series 1998 A, 5.375% 1/15/12 | 2,505,000 | 2,508,407 | ||
Series 2011 A, 5.5% 11/15/25 | 5,000,000 | 5,658,200 | ||
Series 2011 C, 5% 1/15/42 | 5,000,000 | 5,062,900 | ||
L'Anse Creuse Pub. Schools Series 2005, 5% 5/1/24 (FSA Insured) | 1,350,000 | 1,434,281 | ||
Lansing Board Wtr. & Lt. Rev. 5.5% 7/1/41 | 5,000,000 | 5,529,100 | ||
Lapeer Cmnty. Schools Series 2007: | ||||
5% 5/1/19 (FSA Insured) | 1,350,000 | 1,536,030 | ||
5% 5/1/20 (FSA Insured) | 1,425,000 | 1,614,269 | ||
5% 5/1/22 (FSA Insured) | 1,395,000 | 1,569,054 | ||
Lenawee Co. Hosp. Fin. Auth. Hosp. Rev. (ProMedica Heathcare Oblig. Group Proj.) Series 2011 B, 6% 11/15/35 | 3,000,000 | 3,355,020 | ||
Lincoln Consolidated School District Series 2008: | ||||
5% 5/1/14 (FSA Insured) | 1,460,000 | 1,573,734 | ||
5% 5/1/16 (FSA Insured) | 1,425,000 | 1,614,411 | ||
Michigan Bldg. Auth. Rev.: | ||||
(Facilities Prog.) Series 2008 I, 6% 10/15/38 | 5,000,000 | 5,560,000 | ||
Series 1, 5.25% 10/15/16 (FSA Insured) | 5,000,000 | 5,337,650 | ||
Series 2009 I, 5.25% 10/15/25 (Assured Guaranty Corp. Insured) | 2,000,000 | 2,249,440 | ||
Series IA 5.375% 10/15/41 | 3,000,000 | 3,245,070 | ||
Michigan Fin. Auth. Rev. (Trinity Health Sys. Proj.): | ||||
Series 2010 A, 5% 12/1/27 | 1,100,000 | 1,189,397 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Michigan Fin. Auth. Rev. (Trinity Health Sys. Proj.): - continued | ||||
Series 2011 MI, 5% 12/1/39 | $ 7,000,000 | $ 7,131,180 | ||
Michigan Gen. Oblig.: | ||||
(Envir. Protection Prog.) Series 1992, 6.25% 11/1/12 | 1,335,000 | 1,399,494 | ||
Series 2007, 5.25% 9/15/21 (FSA Insured) | 5,000,000 | 5,739,700 | ||
Michigan Hosp. Fin. Auth. Rev.: | ||||
(Ascension Health Sr. Cr. Group Proj.) Series 2010 F, 5% 11/15/23 | 7,500,000 | 8,414,850 | ||
(Crittenton Hosp. Proj.) Series 2002: | ||||
5.5% 3/1/13 | 455,000 | 461,288 | ||
5.5% 3/1/14 | 1,300,000 | 1,317,485 | ||
5.5% 3/1/15 | 1,985,000 | 2,011,242 | ||
(Henry Ford Health Sys. Proj.): | ||||
Series 2006 A: | ||||
5% 11/15/12 | 1,485,000 | 1,533,960 | ||
5% 11/15/14 | 1,000,000 | 1,085,620 | ||
5% 11/15/17 | 1,000,000 | 1,102,170 | ||
Series 2009, 5.25% 11/15/24 | 3,000,000 | 3,210,960 | ||
(McLaren Health Care Corp. Proj.) Series 2008 A: | ||||
5.25% 5/15/15 | 1,615,000 | 1,790,874 | ||
5.75% 5/15/38 | 6,880,000 | 7,268,926 | ||
(Mercy Health Svcs. Proj.): | ||||
Series 1996 R, 5.375% 8/15/26 (Escrowed to Maturity) | 2,500,000 | 2,504,850 | ||
Series 1996: | ||||
5.375% 8/15/16 (Escrowed to Maturity) | 2,135,000 | 2,141,149 | ||
5.375% 8/15/26 (Escrowed to Maturity) | 2,450,000 | 2,454,753 | ||
(MidMichigan Obligated Group Proj.): | ||||
Series 2002 A, 5.5% 4/15/18 (AMBAC Insured) | 2,000,000 | 2,015,140 | ||
Series 2009 A, 6.125% 6/1/39 | 3,740,000 | 4,028,691 | ||
(Oakwood Hosp. Proj.) Series 2007, 5% 7/15/17 | 1,000,000 | 1,102,240 | ||
(Sisters of Mercy Health Corp. Proj.) Series 1993, 5.375% 8/15/14 (Escrowed to Maturity) | 195,000 | 203,319 | ||
(Sparrow Hosp. Obligated Group Proj.) Series 2007: | ||||
5% 11/15/17 | 535,000 | 589,682 | ||
5% 11/15/18 | 725,000 | 792,186 | ||
5% 11/15/19 | 1,000,000 | 1,074,430 | ||
5% 11/15/20 | 2,000,000 | 2,131,440 | ||
5% 11/15/31 | 5,000,000 | 5,032,500 | ||
(Trinity Health Sys. Proj.): | ||||
Series 2008 A, 6.5% 12/1/33 | 5,000,000 | 5,657,350 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Michigan Hosp. Fin. Auth. Rev.: - continued | ||||
(Trinity Health Sys. Proj.): | ||||
5% 12/1/26 | $ 3,725,000 | $ 3,921,494 | ||
5% 12/1/26 (Pre-Refunded to 12/1/16 @ 100) | 830,000 | 993,377 | ||
5.375% 12/1/30 | 1,000,000 | 1,010,200 | ||
5.375% 12/1/30 (Pre-Refunded to 12/1/12 @ 100) | 95,000 | 99,357 | ||
Michigan Muni. Bond Auth. Rev.: | ||||
(Clean Wtr. Pooled Proj.) Series 2010, 5% 10/1/30 | 4,850,000 | 5,428,266 | ||
(Clean Wtr. Proj.) Series 2004, 5% 10/1/26 | 4,925,000 | 5,311,268 | ||
(Detroit School District Proj.) Series B, 5% 6/1/12 (FSA Insured) | 7,300,000 | 7,403,076 | ||
(Local Govt. Ln. Prog.): | ||||
Series 2007, 5% 12/1/21 (AMBAC Insured) | 1,155,000 | 1,169,126 | ||
Series G, 0% 5/1/19 (AMBAC Insured) | 1,865,000 | 1,401,548 | ||
(State Clean Wtr. Revolving Fund Proj.) Series 2006, 5% 10/1/27 | 4,225,000 | 4,708,129 | ||
Series 2002, 5.375% 10/1/19 (Pre-Refunded to 10/1/12 @ 100) | 2,005,000 | 2,081,872 | ||
Series 2005, 5% 10/1/23 | 385,000 | 459,498 | ||
Series 2009, 5% 10/1/26 | 5,000,000 | 5,767,900 | ||
Series C, 0% 6/15/15 (FSA Insured) | 3,000,000 | 2,820,420 | ||
Michigan Strategic Fund Ltd. Oblig. Rev.: | ||||
(Cadillac Place Office Bldg. Proj.) Series 2011, 5.25% 10/15/26 | 3,585,000 | 3,962,823 | ||
(Detroit Edison Co. Proj.) Series BB, 7% 5/1/21 (AMBAC Insured) | 8,520,000 | 11,151,480 | ||
Michigan Technological Univ. Series 2008, 5.25% 10/1/17 (Assured Guaranty Corp. Insured) | 1,875,000 | 2,239,706 | ||
Michigan Tobacco Settlement Fin. Auth. Tobacco Settlement Asset Rev. Series 2007, 6% 6/1/34 | 3,000,000 | 2,270,910 | ||
Michigan Trunk Line Fund Rev.: | ||||
Series 1998 A, 5.5% 11/1/16 | 3,000,000 | 3,593,250 | ||
Series 2002 B, 5.25% 10/1/16 (FSA Insured) | 3,000,000 | 3,094,950 | ||
Series 2005, 5.5% 11/1/20 (FSA Insured) | 2,500,000 | 3,160,475 | ||
Series 2006, 5.25% 11/1/15 (FGIC Insured) | 5,000,000 | 5,768,400 | ||
Series 2011, 5% 11/15/36 | 2,000,000 | 2,182,000 | ||
North Kent Swr. Auth. Wtr. & Swr. Rev. Series 2006: | ||||
5% 11/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 420,000 | 475,159 | ||
5% 11/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 490,000 | 551,956 | ||
5% 11/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,645,000 | 1,837,021 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
North Kent Swr. Auth. Wtr. & Swr. Rev. Series 2006: - continued | ||||
5% 11/1/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,290,000 | $ 1,429,423 | ||
Northview Pub. Schools District Series 2008, 5% 5/1/21 (FSA Insured) | 1,070,000 | 1,224,155 | ||
Northville Pub. Schools Series 2005: | ||||
5% 5/1/15 (FSA Insured) | 1,525,000 | 1,712,102 | ||
5% 5/1/16 (FSA Insured) | 1,475,000 | 1,638,120 | ||
5% 5/1/17 (FSA Insured) | 3,675,000 | 4,023,721 | ||
Okemos Pub. School District Series 1993, 0% 5/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,700,000 | 1,664,113 | ||
Olivet Cmnty. School District (School Bldg. & Site Proj.) Series 2008: | ||||
5.25% 5/1/23 (FSA Insured) | 1,010,000 | 1,157,470 | ||
5.25% 5/1/27 (FSA Insured) | 1,135,000 | 1,258,261 | ||
Ottawa County Wtr. Supply Sys. Rev. Series 2010: | ||||
4.5% 5/1/33 | 2,680,000 | 2,877,945 | ||
5% 5/1/37 | 1,100,000 | 1,203,224 | ||
Petoskey Pub. School District Series 2005: | ||||
5% 5/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,430,000 | 1,544,114 | ||
5% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,175,000 | 1,308,175 | ||
Plainwell Cmnty. School District: | ||||
(School Bldg. & Site Proj.): | ||||
Series 2002, 5.5% 5/1/14 | 1,000,000 | 1,040,200 | ||
Series 2008: | ||||
5% 5/1/23 (Assured Guaranty Corp. Insured) | 1,885,000 | 2,122,529 | ||
5% 5/1/28 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,087,320 | ||
Series 2005: | ||||
5% 5/1/15 (FSA Insured) | 1,030,000 | 1,146,380 | ||
5% 5/1/16 (FSA Insured) | 1,025,000 | 1,122,642 | ||
Plymouth-Canton Cmnty. School District Series 2008, 5% 5/1/20 (FSA Insured) | 5,000,000 | 5,701,500 | ||
Portage Pub. Schools Series 2008, 5% 5/1/22 (FSA Insured) | 4,300,000 | 4,847,132 | ||
Ravenna Pub. Schools Gen. Oblig. (2008 School Bldg. and Site Proj.) Series 2008: | ||||
5% 5/1/31 (FSA Insured) | 2,080,000 | 2,212,995 | ||
5% 5/1/38 (FSA Insured) | 1,000,000 | 1,045,090 | ||
Riverview Cmnty. School District Series 2004: | ||||
5% 5/1/14 | 630,000 | 680,274 | ||
5% 5/1/15 | 955,000 | 1,036,013 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Riverview Cmnty. School District Series 2004: - continued | ||||
5% 5/1/17 | $ 1,000,000 | $ 1,085,070 | ||
5% 5/1/18 | 1,000,000 | 1,083,150 | ||
Rochester Cmnty. School District 5% 5/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,475,000 | 1,711,723 | ||
Rockford Pub. Schools Gen. Oblig. (2008 School Bldg. and Site Proj.) 5% 5/1/30 (FSA Insured) | 3,975,000 | 4,266,050 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Proj.) Series 2009 V: | ||||
8% 9/1/29 | 1,750,000 | 2,081,013 | ||
8.25% 9/1/39 | 3,100,000 | 3,706,763 | ||
Saginaw Hosp. Fin. Auth. Hosp. Rev. (Covenant Med. Ctr., Inc.) Series 2010 H, 5% 7/1/30 | 5,000,000 | 4,958,300 | ||
Saint Clair County Gen. Oblig. Series 2004: | ||||
5% 4/1/17 (AMBAC Insured) | 1,380,000 | 1,498,997 | ||
5% 4/1/19 (AMBAC Insured) | 1,475,000 | 1,595,006 | ||
Shepherd Pub. Schools Series 2008, 5% 5/1/17 (FSA Insured) | 1,025,000 | 1,195,837 | ||
South Haven Gen. Oblig. Series 2009: | ||||
4.875% 12/1/28 (Assured Guaranty Corp. Insured) | 2,500,000 | 2,764,625 | ||
5.125% 12/1/33 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,096,150 | ||
South Redford School District Series 2005, 5% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,125,000 | 1,253,284 | ||
Three Rivers Cmnty. Schools Series 2008: | ||||
5% 5/1/14 (FSA Insured) | 1,765,000 | 1,909,218 | ||
5% 5/1/16 (FSA Insured) | 1,750,000 | 1,990,415 | ||
Troy School District: | ||||
Series 2006: | ||||
5% 5/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,115,410 | ||
5% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,144,120 | ||
5% 5/1/15 | 2,135,000 | 2,308,447 | ||
Univ. of Michigan Univ. Rev. Series 2010 C, 5% 4/1/26 | 6,085,000 | 7,112,391 | ||
Utica Cmnty. Schools: | ||||
Series 2004, 5% 5/1/17 | 3,000,000 | 3,226,320 | ||
Series 2007: | ||||
5% 5/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,119,560 | ||
5% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000,000 | 2,282,840 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Waverly Cmnty. School District Series 2005, 5% 5/1/17 (FSA Insured) | $ 3,090,000 | $ 3,486,354 | ||
Wayne Charter County Gen. Oblig. Series 2001 A, 5.5% 12/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,011,410 | ||
Wayne County Arpt. Auth. Rev. Series 2011 A, 5% 12/1/21 (b) | 5,000,000 | 5,409,700 | ||
Western Michigan Univ. Rev.: | ||||
Series 2005, 5% 11/15/35 (FGIC Insured) | 5,435,000 | 5,538,972 | ||
Series 2008, 5% 11/15/20 (FSA Insured) | 5,280,000 | 6,041,693 | ||
Williamston Cmnty. Schools Gen. Oblig. Series 2005, 5% 5/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,108,190 | ||
Willow Run Cmnty. Schools County of Washtenaw Series 2005, 5% 5/1/17 (FSA Insured) | 1,875,000 | 2,059,950 | ||
Wyoming Sewage Disp. Sys. Rev. Series 2005, 5% 6/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,000,000 | 4,101,680 | ||
Zeeland Pub. Schools: | ||||
Series 2004, 5.25% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,050,000 | 1,139,261 | ||
Series 2005: | ||||
5% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,035,000 | 2,244,727 | ||
5% 5/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 245,000 | 270,585 | ||
| 584,388,925 | |||
Puerto Rico - 1.9% | ||||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series QQ, 5.5% 7/1/18 (XL Cap. Assurance, Inc. Insured) | 1,000,000 | 1,153,420 | ||
Puerto Rico Pub. Bldg. Auth. Rev. Bonds Series M2, 5.75%, tender 7/1/17 (a) | 2,000,000 | 2,196,760 | ||
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev.: | ||||
Series 2007 A: | ||||
0% 8/1/41 (FGIC Insured) | 12,000,000 | 1,989,480 | ||
0% 8/1/47 (AMBAC Insured) | 1,000,000 | 113,950 | ||
Series 2009 A: | ||||
6% 8/1/42 | 4,000,000 | 4,381,280 | ||
6.5% 8/1/44 | 1,500,000 | 1,695,780 | ||
| 11,530,670 | |||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Virgin Islands - 0.4% | ||||
Virgin Islands Pub. Fin. Auth.: | ||||
(Cruzan Proj.) Series 2009 A, 6% 10/1/39 | $ 1,500,000 | $ 1,572,600 | ||
Series 2009 B, 5% 10/1/25 | 1,200,000 | 1,244,316 | ||
| 2,816,916 |
TOTAL INVESTMENT PORTFOLIO - 96.6% (Cost $566,978,682) | 600,839,160 | ||
NET OTHER ASSETS (LIABILITIES) - 3.4% | 21,155,081 | ||
NET ASSETS - 100% | $ 621,994,241 |
Legend |
(a) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 44.3% |
Water & Sewer | 19.4% |
Health Care | 15.4% |
Special Tax | 5.5% |
Education | 5.1% |
Others* (Individually Less Than 5%) | 10.3% |
| 100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2011 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $566,978,682) |
| $ 600,839,160 |
Cash |
| 15,780,388 |
Receivable for fund shares sold | 422,368 | |
Interest receivable | 6,585,064 | |
Prepaid expenses | 1,326 | |
Other receivables | 692 | |
Total assets | 623,628,998 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 553,811 | |
Distributions payable | 744,696 | |
Accrued management fee | 188,208 | |
Transfer agent fee payable | 82,862 | |
Other affiliated payables | 25,064 | |
Other payables and accrued expenses | 40,116 | |
Total liabilities | 1,634,757 | |
|
|
|
Net Assets | $ 621,994,241 | |
Net Assets consist of: |
| |
Paid in capital | $ 588,158,942 | |
Undistributed net investment income | 45,485 | |
Accumulated undistributed net realized gain (loss) on investments | (70,664) | |
Net unrealized appreciation (depreciation) on investments | 33,860,478 | |
Net Assets, for 50,806,726 shares outstanding | $ 621,994,241 | |
Net Asset Value, offering price and redemption price per share ($621,994,241 ÷ 50,806,726 shares) | $ 12.24 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended December 31, 2011 | |
Investment Income |
|
|
Interest |
| $ 26,127,421 |
|
|
|
Expenses | ||
Management fee | $ 2,178,267 | |
Transfer agent fees | 485,287 | |
Accounting fees and expenses | 144,456 | |
Custodian fees and expenses | 7,167 | |
Independent trustees' compensation | 2,245 | |
Registration fees | 19,696 | |
Audit | 48,439 | |
Legal | 6,748 | |
Miscellaneous | 6,411 | |
Total expenses before reductions | 2,898,716 | |
Expense reductions | (2,497) | 2,896,219 |
Net investment income (loss) | 23,231,202 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| (1,334) |
Change in net unrealized appreciation (depreciation) on investment securities | 28,932,158 | |
Net gain (loss) | 28,930,824 | |
Net increase (decrease) in net assets resulting from operations | $ 52,162,026 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Income Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 23,231,202 | $ 25,546,192 |
Net realized gain (loss) | (1,334) | 814,536 |
Change in net unrealized appreciation (depreciation) | 28,932,158 | (11,101,701) |
Net increase (decrease) in net assets resulting | 52,162,026 | 15,259,027 |
Distributions to shareholders from net investment income | (23,214,211) | (25,524,718) |
Distributions to shareholders from net realized gain | (352,543) | (378,580) |
Total distributions | (23,566,754) | (25,903,298) |
Share transactions | 71,220,723 | 98,472,500 |
Reinvestment of distributions | 14,650,857 | 16,035,129 |
Cost of shares redeemed | (119,227,678) | (122,308,020) |
Net increase (decrease) in net assets resulting from share transactions | (33,356,098) | (7,800,391) |
Redemption fees | 2,805 | 2,123 |
Total increase (decrease) in net assets | (4,758,021) | (18,442,539) |
|
|
|
Net Assets | ||
Beginning of period | 626,752,262 | 645,194,801 |
End of period (including undistributed net investment income of $45,485 and undistributed net investment income of $71,454, respectively) | $ 621,994,241 | $ 626,752,262 |
Other Information Shares | ||
Sold | 6,005,757 | 8,226,552 |
Issued in reinvestment of distributions | 1,233,872 | 1,340,660 |
Redeemed | (10,174,511) | (10,280,828) |
Net increase (decrease) | (2,934,882) | (713,616) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 11.66 | $ 11.85 | $ 11.29 | $ 11.76 | $ 11.82 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .463 | .462 | .460 | .457 | .461 |
Net realized and unrealized gain (loss) | .586 | (.184) | .575 | (.465) | (.031) |
Total from investment operations | 1.049 | .278 | 1.035 | (.008) | .430 |
Distributions from net investment income | (.462) | (.461) | (.460) | (.457) | (.462) |
Distributions from net realized gain | (.007) | (.007) | (.015) | (.005) | (.028) |
Total distributions | (.469) | (.468) | (.475) | (.462) | (.490) |
Redemption fees added to paid in capital B, D | - | - | - | - | - |
Net asset value, end of period | $ 12.24 | $ 11.66 | $ 11.85 | $ 11.29 | $ 11.76 |
Total Return A | 9.20% | 2.32% | 9.30% | (.06)% | 3.73% |
Ratios to Average Net Assets C |
|
|
|
|
|
Expenses before reductions | .49% | .49% | .50% | .49% | .49% |
Expenses net of fee waivers, if any | .49% | .49% | .50% | .49% | .49% |
Expenses net of all reductions | .49% | .49% | .50% | .47% | .44% |
Net investment income (loss) | 3.90% | 3.86% | 3.94% | 3.96% | 3.94% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period | $ 621,994 | $ 626,752 | $ 645,195 | $ 568,852 | $ 592,633 |
Portfolio turnover rate | 9% | 7% | 6% | 19% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Investment Changes/Performance (Unaudited)
Effective Maturity Diversification | |||
Days | % of fund's investments 12/31/11 | % of fund's investments 6/30/11 | % of fund's investments 12/31/10 |
1 - 7 | 75.0 | 70.2 | 82.5 |
8 - 30 | 4.7 | 9.0 | 0.7 |
31 - 60 | 4.6 | 10.3 | 5.8 |
61 - 90 | 2.7 | 0.1 | 1.8 |
91 - 180 | 7.0 | 4.5 | 2.0 |
> 180 | 6.0 | 5.9 | 7.2 |
Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940. |
Weighted Average Maturity | |||
| 12/31/11 | 6/30/11 | 12/31/10 |
Fidelity Michigan Municipal Money Market Fund | 34 Days | 29 Days | 28 Days |
All Tax-Free Money Market Funds Average* | 32 Days | 26 Days | 31 Days |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Weighted Average Life | |||
| 12/31/11 | 6/30/11 | 12/31/10 |
Fidelity Michigan Municipal Money Market Fund | 34 Days | 29 Days | 28 Days |
Weighted Average Life (WAL) is the weighted average of the life of the securities held in a fund or portfolio and can be used as a measure of sensitivity to changes in liquidity and/or credit risk. Generally, the higher the value, the greater the sensitivity. WAL is based on the dollar-weighted average length of time until principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. The difference between WAM and WAL is that WAM takes into account interest rate resets and WAL does not. WAL for money market funds is not the same as WAL of a mortgage- or asset-backed security. |
*Source: iMoneyNet, Inc.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Investment Changes/Performance (Unaudited) - continued
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2011 | As of June 30, 2011 | ||||||
![]() | Variable Rate |
| ![]() | Variable Rate |
| ||
![]() | Commercial |
| ![]() | Commercial |
| ||
![]() | Tender Bonds 6.4% |
| ![]() | Tender Bonds 5.3% |
| ||
![]() | Municipal Notes 1.0% |
| ![]() | Municipal Notes 4.0% |
| ||
![]() | Fidelity Municipal |
| ![]() | Fidelity Municipal |
| ||
![]() | Other Investments 4.3% |
| ![]() | Other Investments 3.6% |
| ||
![]() | Net Other Assets 0.3% |
| ![]() | Net Other Assets 4.4% |
|
Current and Historical Seven-Day Yields
| 1/2/12 | 10/3/11 | 6/27/11 | 3/28/11 | 1/3/11 |
Fidelity Michigan Municipal Money Market Fund | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it's possible to lose money by investing in the Fund. A portion of the Fund's expenses was reimbursed and/or waived. Absent such reimbursements and/or waivers the yield for the period ending January 2, 2012, the most recent period shown in the table, would have been -0.38%.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Investments December 31, 2011
Showing Percentage of Net Assets
Municipal Securities - 99.7% | |||
Principal Amount | Value | ||
Colorado - 0.1% | |||
Colorado Hsg. & Fin. Auth. Series 2003 A2, 0.09% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (a) | $ 900,000 | $ 900,000 | |
Delaware - 0.3% | |||
Delaware Econ. Dev. Auth. Rev. (Delmarva Pwr. & Lt. Co. Proj.) Series 1987, 0.5% 1/3/12, VRDN (a)(d) | 2,300,000 | 2,300,000 | |
Idaho - 0.1% | |||
Idaho Hsg. & Fin. Assoc. Single Family Mtg. Series C, 0.11% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (a) | 945,000 | 945,000 | |
Illinois - 0.5% | |||
Chicago Wtr. Rev. Series 2004 A2, 0.13% 1/6/12, LOC California Pub. Employees Retirement Sys., VRDN (a) | 1,370,000 | 1,370,000 | |
Illinois Dev. Fin. Auth. Rev. (Lyric Opera of Chicago Proj.) 0.08% 1/6/12, LOC JPMorgan Chase Bank, LOC BMO Harris Bank NA, VRDN (a) | 2,700,000 | 2,700,000 | |
| 4,070,000 | ||
Kentucky - 0.2% | |||
Trimble County Poll. Cont. Rev. Bonds (Louisville Gas & Elec. Co. Proj.) Series A2, 0.45% tender 1/12/12, CP mode (d) | 1,400,000 | 1,400,000 | |
Louisiana - 0.7% | |||
Louisiana Pub. Facilities Auth. Rev. (Air Products & Chemicals, Inc. Proj.): | |||
Series 2002, 0.14% 1/6/12, VRDN (a)(d) | 3,300,000 | 3,300,000 | |
Series 2003, 0.14% 1/6/12, VRDN (a)(d) | 3,000,000 | 3,000,000 | |
| 6,300,000 | ||
Massachusetts - 0.2% | |||
Massachusetts Indl. Fin. Agcy. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.) Series 1993 B, 0.6% tender 1/26/12, CP mode | 2,000,000 | 2,000,000 | |
Michigan - 90.7% | |||
Dearborn School District Bonds: | |||
Series 2010 A1, 5% 5/1/12 (Pre-Refunded to 5/1/12 @ 100) | 1,800,000 | 1,828,533 | |
Series II, 5% 5/1/12 (Pre-Refunded to 5/1/12 @ 100) | 3,525,000 | 3,581,039 | |
5% 5/1/12 (Pre-Refunded to 5/1/12 @ 100) | 4,600,000 | 4,672,291 | |
Detroit City School District Participating VRDN Series Solar 06 01, 0.09% 1/6/12 (Liquidity Facility U.S. Bank NA, Minnesota) (a)(e) | 14,820,000 | 14,820,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Eastern Michigan Univ. Revs.: | |||
Series 2009 A, 0.11% 1/3/12, LOC JPMorgan Chase Bank, VRDN (a) | $ 7,125,000 | $ 7,125,000 | |
Series 2009 B, 0.11% 1/3/12, LOC JPMorgan Chase Bank, VRDN (a) | 8,300,000 | 8,300,000 | |
Grand Rapids Econ. Dev. Corp. (Cornerstone Univ. Proj.) 0.09% 1/6/12, LOC PNC Bank NA, VRDN (a) | 6,785,000 | 6,785,000 | |
Grand Rapids Wtr. Supply Sys. Bonds Series 2010, 2% 1/1/12 | 1,000,000 | 1,000,000 | |
Grand Traverse County Hosp. Series 2011 B, 0.11% 1/6/12, LOC JPMorgan Chase Bank, VRDN (a) | 12,825,000 | 12,825,000 | |
Grand Valley Michigan State Univ. Rev.: | |||
Series 2005, 0.07% 1/6/12, LOC PNC Bank NA, VRDN (a) | 24,300,000 | 24,300,000 | |
Series 2008 B, 0.06% 1/6/12, LOC U.S. Bank NA, Minnesota, VRDN (a) | 13,940,000 | 13,940,000 | |
Kent Hosp. Fin. Auth. Hosp. Facilities Rev.: | |||
(Spectrum Health Sys. Proj.): | |||
Series 2008 B3, 0.08% 1/6/12 (Liquidity Facility Wells Fargo Bank NA), VRDN (a) | 15,900,000 | 15,900,000 | |
Series 2008 C, 0.08% 1/6/12, LOC Bank of New York, New York, VRDN (a) | 37,200,000 | 37,200,000 | |
Bonds (Spectrum Health Sys. Proj.) Series 2008 A, 5%, tender 1/15/12 (a) | 7,000,000 | 7,012,288 | |
Michigan Bldg. Auth. Rev.: | |||
Participating VRDN Series Solar 06 21, 0.09% 1/6/12 (Liquidity Facility U.S. Bank NA, Minnesota) (a)(e) | 3,800,000 | 3,800,000 | |
Series 2011 IIB, 0.08% 1/6/12, LOC JPMorgan Chase Bank, VRDN (a) | 8,700,000 | 8,700,000 | |
Series 6: | |||
0.16% 1/12/12, LOC State Street Bank & Trust Co., Boston, LOC U.S. Bank NA, Minnesota, CP | 8,400,000 | 8,400,000 | |
0.16% 1/12/12, LOC State Street Bank & Trust Co., Boston, LOC U.S. Bank NA, Minnesota, CP | 16,960,000 | 16,960,000 | |
Michigan Fin. Auth. Rev.: | |||
Bonds Series 2011: | |||
2% 10/1/12 | 8,400,000 | 8,509,965 | |
2% 10/1/12 | 4,150,000 | 4,204,328 | |
RAN Series 2011 C3, 2% 8/20/12, LOC Bank of Nova Scotia New York Branch | 8,400,000 | 8,490,212 | |
Series 2011 L, 0.24% 1/6/12, LOC Citibank NA, VRDN (a) | 15,700,000 | 15,700,000 | |
Michigan Hosp. Fin. Auth. Rev.: | |||
(Henry Ford Health Sys. Proj.) Series 2007, 0.09% 1/6/12, LOC JPMorgan Chase Bank, VRDN (a) | 9,665,000 | 9,665,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Michigan Hosp. Fin. Auth. Rev.: - continued | |||
(McLaren Health Care Corp. Proj.) Series 2008 B3, 0.09% 1/6/12, LOC JPMorgan Chase Bank, VRDN (a) | $ 2,000,000 | $ 2,000,000 | |
Bonds: | |||
(Ascension Health Cr. Group Proj.): | |||
Series 1999 B, 3.75%, tender 3/15/12 (a) | 8,700,000 | 8,758,232 | |
Series 2010 F1, 1.5%, tender 6/1/12 (a) | 7,600,000 | 7,637,228 | |
Series 2010 F5, 0.45%, tender 3/15/12 (a) | 8,000,000 | 8,000,000 | |
(Ascension Health Sr. Cr. Group Proj.) Series 2010 F: | |||
0.19%, tender 7/27/12 (a) | 8,800,000 | 8,800,000 | |
0.19%, tender 7/27/12 (a) | 7,100,000 | 7,100,000 | |
0.2%, tender 7/27/12 (a) | 8,800,000 | 8,800,000 | |
(McLaren Health Care Corp. Proj.) Series 2008 A, 5% 5/15/12 | 1,225,000 | 1,245,583 | |
(Trinity Health Sys. Proj.): | |||
Series 2008 C: | |||
0.11% tender 2/14/12, CP mode | 11,000,000 | 11,000,000 | |
0.13% tender 2/14/12, CP mode | 12,000,000 | 12,000,000 | |
0.16% tender 3/6/12, CP mode | 4,000,000 | 4,000,000 | |
0.16% tender 6/6/12, CP mode | 36,000,000 | 36,000,000 | |
Series B, 0.16% tender 3/6/12, CP mode | 3,000,000 | 3,000,000 | |
Series C, 0.18% tender 2/8/12, CP mode | 17,000,000 | 17,000,000 | |
Michigan Hsg. Dev. Auth. Ltd.: | |||
(Sand Creek Apts., Phase I Proj.) Series 2007 A, 0.13% 1/6/12, LOC Citibank NA, VRDN (a)(d) | 3,700,000 | 3,700,000 | |
(Sand Creek II Apts. Proj.) Series 2007 A, 0.13% 1/6/12, LOC Citibank NA, VRDN (a)(d) | 5,495,000 | 5,495,000 | |
(Teal Run I Apts. Proj.) Series 2007 A, 0.13% 1/6/12, LOC Citibank NA, VRDN (a)(d) | 6,350,000 | 6,350,000 | |
Michigan Hsg. Dev. Auth. Multi-family Hsg. Rev.: | |||
(Canton Club East Apts. Proj.) Series 1998 A, 0.12% 1/6/12, LOC Fannie Mae Guaranteed Mtg. pass-thru certificates, VRDN (a)(d) | 3,900,000 | 3,900,000 | |
(Hunt Club Apts. Proj.) 0.12% 1/6/12, LOC Fannie Mae Guaranteed Mtg. pass-thru certificates, VRDN (a)(d) | 6,695,000 | 6,695,000 | |
Michigan Hsg. Dev. Auth. Single Family Mtg. Rev.: | |||
Series 2007 B, 0.11% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (a)(d) | 71,500,000 | 71,500,000 | |
Series 2009 D, 0.09% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (a) | 34,900,000 | 34,900,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Michigan Hsg. Dev. Ltd. Oblig. Rev. (JAS Non-Profit Hsg. Corp. VI Proj.) Series 2000, 0.1% 1/6/12, LOC JPMorgan Chase Bank, VRDN (a) | $ 6,300,000 | $ 6,300,000 | |
Michigan Muni. Bond Auth. Rev. Bonds: | |||
Series 2002, 5.25% 10/1/12 | 1,000,000 | 1,037,493 | |
Series 2003 A, 5.25% 6/1/12 | 3,545,000 | 3,617,256 | |
Michigan State Univ. Revs.: | |||
Participating VRDN Series WF 11 33 C, 0.11% 1/6/12 (Liquidity Facility Wells Fargo Bank NA) (a)(e) | 5,500,000 | 5,500,000 | |
Series 2000 A, 0.06% 1/6/12 (Liquidity Facility Northern Trust Co.), VRDN (a) | 2,100,000 | 2,100,000 | |
Michigan Strategic Fund Indl. Dev. Rev. (Lapeer Industries, Inc. Proj.) Series 2007, 0.44% 1/6/12, LOC Bank of America NA, VRDN (a)(d) | 1,100,000 | 1,100,000 | |
Michigan Strategic Fund Ltd. Oblig. Rev.: | |||
(Almond Products, Inc. Proj.) 0.4% 1/6/12, LOC Bank of America NA, VRDN (a)(d) | 7,335,000 | 7,335,000 | |
(BC & C Proj.) 0.2% 1/6/12, LOC Comerica Bank, VRDN (a)(d) | 535,000 | 535,000 | |
(Consumers Energy Co. Proj.) 0.11% 1/6/12, LOC Bank of Nova Scotia New York Branch, VRDN (a)(d) | 35,000,000 | 35,000,000 | |
(Evangelical Homes of Michigan Proj.) Series 2008, 0.1% 1/6/12, LOC JPMorgan Chase & Co., VRDN (a) | 6,900,000 | 6,900,000 | |
(Greenpath, Inc. Proj.) Series 2011, 0.09% 1/6/12, LOC PNC Bank NA, VRDN (a) | 7,000,000 | 7,000,000 | |
(Henry Ford Museum & Greenfield Village Projs.) Series 2002, 0.07% 1/3/12, LOC Comerica Bank, VRDN (a) | 10,550,000 | 10,550,000 | |
(PBL Enterprises, Inc. Proj.) Series 1997, 0.2% 1/6/12, LOC Comerica Bank, VRDN (a)(d) | 160,000 | 160,000 | |
(Pioneer Laboratories, Inc. Proj.) 0.2% 1/6/12, LOC JPMorgan Chase Bank, VRDN (a)(d) | 700,000 | 700,000 | |
(S & S LLC Proj.) Series 2000, 0.39% 1/6/12, LOC U.S. Bank NA, Minnesota, VRDN (a)(d) | 1,105,000 | 1,105,000 | |
(The Kroger Co. Recovery Zone Facilities Bond Proj.) Series 2010, 0.1% 1/6/12, LOC Bank of Tokyo-Mitsubishi UFJ Ltd., VRDN (a) | 19,000,000 | 19,000,000 | |
(The YMCA of Greater Grand Rapids Proj.) Series 2010, 0.11% 1/6/12, LOC Comerica Bank, VRDN (a) | 11,350,000 | 11,350,000 | |
(Van Andel Research Institute Proj.) Series 2008, 0.16% 1/6/12, LOC Bank of America NA, VRDN (a) | 91,000,000 | 91,000,001 | |
(W.H. Porter, Inc. Proj.) Series 2001, 0.84% 1/6/12, LOC Bank of America NA, VRDN (a)(d) | 1,850,000 | 1,850,000 | |
(YMCA Metropolitan Detroit Proj.) Series 2001, 0.1% 1/6/12, LOC JPMorgan Chase Bank, VRDN (a) | 10,715,000 | 10,715,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Michigan Strategic Fund Ltd. Oblig. Rev.: - continued | |||
(YMCA Metropolitan Lansing Proj.) Series 2002, 0.25% 1/6/12, LOC Bank of America NA, VRDN (a) | $ 8,100,000 | $ 8,100,000 | |
Michigan Strategic Fund Solid Waste Disp. Rev. (Grayling Gen. Station Proj.) Series 1990, 0.13% 1/6/12, LOC Barclays Bank PLC, VRDN (a)(d) | 3,345,000 | 3,345,000 | |
Michigan Trunk Line Fund Rev. Bonds Series 2005 B, 5% 9/1/12 | 5,000,000 | 5,156,057 | |
Oakland County Econ. Dev. Corp. Ltd. Oblig. Rev.: | |||
(Osmic, Inc. Proj.) Series 2001 A, 0.15% 1/6/12, LOC JPMorgan Chase Bank, VRDN (a)(d) | 4,800,000 | 4,800,000 | |
(Pratt & Miller Engineering & Fabrication, Inc. Proj.) Series 2004, 0.4% 1/6/12, LOC Bank of America NA, VRDN (a)(d) | 2,380,000 | 2,380,000 | |
(Progressive Metal Manufacturing Co. Proj.) 0.2% 1/6/12, LOC Comerica Bank, VRDN (a)(d) | 440,000 | 440,000 | |
Three Rivers Cmnty. Schools Bonds 5% 5/1/12 (Michigan Gen. Oblig. Guaranteed) | 1,420,000 | 1,441,379 | |
Univ. of Michigan Univ. Rev. Bonds Series C, 2% 4/1/12 | 1,450,000 | 1,456,549 | |
Waterford Econ. Dev. Corp. Ltd. Oblig. Rev. (Canterbury Health Care, Inc. Proj.) Series 2009, 0.1% 1/6/12, LOC Fed. Home Ln. Bank of Boston, VRDN (a) | 5,865,000 | 5,865,000 | |
Wayne County Arpt. Auth. Rev.: | |||
0.09% 1/6/12, LOC JPMorgan Chase Bank, VRDN (a) | 8,600,000 | 8,600,000 | |
0.1% 1/6/12, LOC PNC Bank NA, VRDN (a)(d) | 9,000,000 | 9,000,000 | |
0.11% 1/6/12, LOC JPMorgan Chase Bank, VRDN (a)(d) | 9,000,000 | 9,000,000 | |
| 794,038,434 | ||
Nebraska - 0.1% | |||
Douglas County Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series A, 0.17% 1/6/12, LOC Bank of America NA, VRDN (a)(d) | 1,000,000 | 1,000,000 | |
New Hampshire - 0.2% | |||
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.): | |||
Series 1990 A, 0.6% tender 1/10/12, CP mode (d) | 1,700,000 | 1,700,000 | |
Series A1, 0.53% tender 1/12/12, CP mode (d) | 300,000 | 300,000 | |
| 2,000,000 | ||
New York - 0.9% | |||
New York Dorm. Auth. Revs. Participating VRDN Series PT 4623, 0.3% 1/6/12 (Liquidity Facility Deutsche Postbank AG) (a)(e) | 8,000,000 | 8,000,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - 0.1% | |||
Ohio Higher Edl. Facility Commission Rev. (Univ. Hosp. Health Sys. Proj.) Series 2008 B, 0.16% 1/6/12, LOC RBS Citizens NA, VRDN (a) | $ 1,000,000 | $ 1,000,000 | |
Pennsylvania - 0.1% | |||
Chester County Indl. Dev. Auth. Student Hsg. Rev. Series 2008 A, 0.1% 1/6/12, LOC Citizens Bank of Pennsylvania, VRDN (a) | 895,000 | 895,000 | |
Texas - 0.5% | |||
Harris County Cultural Ed. Facilities Fin. Corp. Rev. (Memorial Hermann Healthcare Sys. Proj.) Series 2008 C, 0.08% 1/6/12, LOC Wells Fargo Bank NA, VRDN (a) | 3,500,000 | 3,500,000 | |
Port Arthur Navigation District Indl. Dev. Corp. Exempt Facilities Rev. (Air Products Proj.) Series 2000, 0.14% 1/6/12, VRDN (a)(d) | 1,000,000 | 1,000,000 | |
| 4,500,000 | ||
Virginia - 0.6% | |||
Halifax County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. & Pwr. Co. Proj.) Series 1992, 1.25% tender 1/20/12, CP mode (d) | 3,200,000 | 3,200,000 | |
Newport News Indl. Dev. Auth. (CNU Warwick LLC Student Apts. Proj.) 0.18% 1/6/12, LOC Bank of America NA, VRDN (a) | 1,070,000 | 1,070,000 | |
Virginia Hsg. Dev. Auth. Commonwealth Mtg. Rev. Participating VRDN Series BA 1046, 0.23% 1/6/12 (Liquidity Facility Bank of America NA) (a)(d)(e) | 1,000,000 | 1,000,000 | |
| 5,270,000 |
| Shares | |||||
Other - 4.4% |
|
Fidelity Municipal Cash Central Fund, 0.10% (b)(c) | 38,349,000 | 38,349,000 | |
TOTAL INVESTMENT PORTFOLIO - 99.7% (Cost $872,967,434) | 872,967,434 | ||
NET OTHER ASSETS (LIABILITIES) - 0.3% | 2,668,611 | ||
NET ASSETS - 100% | $ 875,636,045 |
Security Type Abbreviations | ||
CP | - | COMMERCIAL PAPER |
RAN | - | REVENUE ANTICIPATION NOTE |
VRDN | - | VARIABLE RATE DEMAND NOTE (A debt instrument that is payable upon demand, either daily, weekly or monthly) |
Legend |
(a) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(b) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(c) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(e) Provides evidence of ownership in one or more underlying municipal bonds. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Municipal Cash Central Fund | $ 66,305 |
Other Information |
The date shown for securities represents the date when principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2011 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $834,618,434) | $ 834,618,434 |
|
Fidelity Central Funds (cost $38,349,000) | 38,349,000 |
|
Total Investments (cost $872,967,434) |
| $ 872,967,434 |
Cash |
| 61,527 |
Receivable for fund shares sold | 11,066,660 | |
Interest receivable | 664,512 | |
Distributions receivable from Fidelity Central Funds | 2,883 | |
Prepaid expenses | 2,081 | |
Other receivables | 204 | |
Total assets | 884,765,301 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 8,874,272 | |
Distributions payable | 128 | |
Accrued management fee | 94,515 | |
Other affiliated payables | 127,999 | |
Other payables and accrued expenses | 32,342 | |
Total liabilities | 9,129,256 | |
|
|
|
Net Assets | $ 875,636,045 | |
Net Assets consist of: |
| |
Paid in capital | $ 875,631,329 | |
Accumulated undistributed net realized gain (loss) on investments | 4,716 | |
Net Assets, for 874,679,136 shares outstanding | $ 875,636,045 | |
Net Asset Value, offering price and redemption price per share ($875,636,045 ÷ 874,679,136 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended December 31, 2011 | |
Investment Income |
|
|
Interest |
| $ 1,886,345 |
Income from Fidelity Central Funds |
| 66,305 |
Total income |
| 1,952,650 |
|
|
|
Expenses | ||
Management fee | $ 3,150,430 | |
Transfer agent fees | 1,352,868 | |
Accounting fees and expenses | 106,235 | |
Custodian fees and expenses | 12,821 | |
Independent trustees' compensation | 3,172 | |
Registration fees | 30,469 | |
Audit | 37,424 | |
Legal | 9,743 | |
Miscellaneous | 6,530 | |
Total expenses before reductions | 4,709,692 | |
Expense reductions | (2,843,257) | 1,866,435 |
Net investment income (loss) | 86,215 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| (10) |
Net increase in net assets resulting from operations | $ 86,205 |
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 Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 86,215 | $ 87,907 |
Net realized gain (loss) | (10) | (49) |
Net increase in net assets resulting | 86,205 | 87,858 |
Distributions to shareholders from net investment income | (86,008) | (88,062) |
Share transactions at net asset value of $1.00 per share | 2,427,760,562 | 2,466,684,976 |
Reinvestment of distributions | 85,070 | 87,186 |
Cost of shares redeemed | (2,442,465,101) | (2,479,002,606) |
Net increase (decrease) in net assets and shares resulting from share transactions | (14,619,469) | (12,230,444) |
Total increase (decrease) in net assets | (14,619,272) | (12,230,648) |
|
|
|
Net Assets | ||
Beginning of period | 890,255,317 | 902,485,965 |
End of period | $ 875,636,045 | $ 890,255,317 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) | - D | - D | - D | .017 | .032 |
Net realized and unrealized gain (loss) D | - | - | - | - | - |
Total from investment operations | - D | - D | - D | .017 | .032 |
Distributions from net investment income | - D | - D | - D | (.017) | (.032) |
Distributions from net realized gain | - | - | - D | - | - D |
Total distributions | - D | - D | - D | (.017) | (.032) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return A | .01% | .01% | .02% | 1.68% | 3.21% |
Ratios to Average Net Assets B,C | |||||
Expenses before reductions | .55% | .55% | .60% | .54% | .54% |
Expenses net of fee waivers, if any | .22% | .30% | .48% | .54% | .54% |
Expenses net of all reductions | .22% | .30% | .48% | .48% | .42% |
Net investment income (loss) | .01% | .01% | .02% | 1.66% | 3.15% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 875,636 | $ 890,255 | $ 902,486 | $ 1,121,825 | $ 1,087,587 |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed or waived or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements, waivers or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement and waivers but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2011
1. Organization.
Fidelity Michigan Municipal Income Fund (the Income Fund) is a fund of Fidelity Municipal Trust. Fidelity Michigan Municipal Money Market Fund (the Money Market Fund) is a fund of Fidelity Municipal Trust II. Each Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Fidelity Municipal Trust and Fidelity Municipal Trust II (the Trusts) are organized as a Massachusetts business trust and a Delaware statutory trust, respectively. The Income Fund is a non-diversified fund. Each Fund is authorized to issue an unlimited number of shares. Each Fund may be affected by economic and political developments in the state of Michigan.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Annual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Income Fund uses independent pricing services approved by the Board of Trustees to value their investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
Each Fund categorizes the inputs to valuation techniques used to value their investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
For the Income Fund, changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value each Fund's investments by major category are as follows:
For the Income Fund, debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For municipal securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
For the Money Market Fund, as permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities are valued at amortized cost, which approximates fair value. The amortized cost of an instrument is determined by valuing it at its original cost and thereafter amortizing any discount or premium from its face value at a constant rate until maturity. Securities held by a money market fund are generally high quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value are not quoted prices in an active market.
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day for the Income Fund and trades executed through the end of the current business day for the Money Market Fund. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company, including distributing substantially 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. As of December 31, 2011, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to futures transactions and excise tax regulations.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The Funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the IRS will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation |
Fidelity Michigan Municipal Income | $ 566,932,629 | $ 36,100,763 | $ (2,194,232) | $ 33,906,531 |
Fidelity Michigan Municipal Money Market Fund | 872,967,434 | - | - | - |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed tax-exempt income | Capital | Net unrealized appreciation (depreciation) |
Fidelity Michigan Municipal Income Fund | $ - | $ (70,644) | $ 33,906,531 |
Fidelity Michigan Municipal Money Market Fund | 4,920 | (46) | - |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. Capital loss carryforwards were as follows:
| Fiscal Year of Expiration 2018 |
Fidelity Michigan Municipal Money Market Fund | $ (39) |
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
| No expiration |
| |
| Short-term | Long-term | Total capital loss carryfoward |
Fidelity Michigan Municipal Income Fund | $ (30,263) | $ (40,401) | $ (70,664) |
Fidelity Michigan Municipal Money Market Fund | (7) | (-) | (46) |
The tax character of distributions paid was as follows:
December 31, 2011 |
|
|
|
|
| Tax-Exempt | Ordinary | Long-term | Total |
Fidelity Michigan Municipal Income | $ 23,214,211 | $ - | $ 352,543 | $ 23,566,754 |
Fidelity Michigan Municipal Money Market Fund | 86,008 | - | - | 86,008 |
December 31, 2010 |
|
|
|
|
| Tax-Exempt | Ordinary | Long-term | Total |
Fidelity Michigan Municipal Income | $ 25,524,718 | $ 162,248 | $ 216,332 | $ 25,903,298 |
Fidelity Michigan Municipal Money Market Fund | 88,062 | - | - | 88,062 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Income Fund less than 30 days are subject to a redemption fee equal to ..50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $51,488,134 and $98,733,688, respectively.
5. 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
Annual Report
5. Fees and Other Transactions with Affiliates -continued
Management Fee - continued
management fee is the sum of an individual fund fee rate and an annualized group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by 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 Rate | Group Rate | Total |
Fidelity Michigan Municipal Income Fund | .25% | .12% | .37% |
Fidelity Michigan Municipal Money Market Fund | .25% | .12% | .37% |
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, under which FIIOC performs the activities associated with the Funds' transfer agency, dividend disbursing and shareholder servicing functions. The Funds pay account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Fidelity Michigan Municipal Income Fund | .08% |
Fidelity Michigan Municipal Money Market Fund | .16% |
During the period, FMR or its affiliates waived a portion of these fees for the Money Market Fund.
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.
6. Committed Line of Credit.
The Income Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Annual Report
Notes to Financial Statements - continued
6. Committed Line of Credit - continued
Fidelity Michigan Municipal Income Fund | $ 1,873 |
During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
FMR or its affiliates voluntarily agreed to waive certain fees for the Money Market Fund in order to maintain a minimum annualized yield of .01%. Such arrangements may be discontinued by FMR at any time. For the period, the amount of the waiver was $2,841,829.
In addition, through arrangements with each applicable Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Custody | Accounting |
Fidelity Michigan Municipal Income Fund | $ 2,497 | $ - |
Fidelity Michigan Municipal Money Market Fund | 1,415 | 13 |
8. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and Fidelity Municipal Trust II and the Shareholders of Fidelity Michigan Municipal Income Fund and Fidelity Michigan Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Michigan Municipal Income Fund (a fund of Fidelity Municipal Trust) and Fidelity Michigan Municipal Money Market Fund (a fund of Fidelity Municipal Trust II) at December 31, 2011 the results of each of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Municipal Trust's and Fidelity Municipal Trust II's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2012
Annual Report
Trustees and Officers
The Trustees 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, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for James C. Curvey, each of the Trustees oversees 203 funds advised by FMR or an affiliate. Mr. Curvey oversees 429 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Funds' Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Annual Report
Trustees and Officers - continued
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Kenneth L. Wolfe serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. The Operations Committee also worked and continues to work with FMR to enhance the stress tests required under SEC regulations for money market funds. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Funds' Trustees."
Annual Report
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Abigail P. Johnson (50) | |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (76) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of Fidelity Investments Money Management, Inc. (2009-present), Director of Fidelity Research & Analysis Co. (2009-present) and Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trusts or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Albert R. Gamper, Jr. (69) | |
| Year of Election or Appointment: 2006 Mr. Gamper is Vice Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2011-present). Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (60) | |
| Year of Election or Appointment: 2010 Mr. Gartland is a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-present) and is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (64) | |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Mr. Edward C. Johnson 3d or Ms. Abigail P. Johnson. |
Michael E. Kenneally (57) | |
| Year of Election or Appointment: 2009 Previously, Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity Fixed Income and Asset Allocation Funds (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of the Credit Suisse Funds (U.S. mutual funds, 2004-2008) and certain other closed-end funds (2004-2005) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (71) | |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, since 1998). Prior to his retirement, Mr. Keyes served as Chairman and Chief Executive Officer of Johnson Controls (automotive, building, and energy, 1998-2002) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (65) | |
| 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. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (72) | |
| Year of Election or Appointment: 2005 Mr. Wolfe is Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2008-present). Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Annual Report
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
John R. Hebble (53) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as President (2011-present), Treasurer, and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present), Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Christopher P. Sullivan (57) | |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Bond Funds. Mr. Sullivan also serves as President of Fidelity's Bond Division (2009-present). Mr. Sullivan is Executive Vice President of Fidelity Investments Money Management, Inc. (2009-present), and a Director of Fidelity Management & Research (U.K.) Inc. (2010-present). Previously, Mr. Sullivan served as Managing Director, Co-Head of U.S. Fixed Income at Goldman Sachs Asset Management (2001-2009). |
Christine J. Thompson (53) | |
| Year of Election or Appointment: 2010 Vice President of Fidelity's Bond Funds. Ms. Thompson also serves as Chief Investment Officer of FMR's Bond Group (2010-present) and is an employee of Fidelity Investments. Previously, Ms. Thompson served as Director of Municipal Bond Portfolio Managers (2002-2010). |
Robert P. Brown (48) | |
| Year of Election or Appointment: 2010 Vice President of Fidelity's Money Market Funds and Executive Vice President of Fidelity Investments Money Management, Inc. (2010-present). Mr. Brown also serves as President, Money Market Group of FMR (2010-present), Managing Director of Research, Director of Fidelity Management & Research (U.K.) Inc. (2008-present) and is an employee of Fidelity Investments. |
Scott C. Goebel (43) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as Secretary of Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); Secretary and CLO of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); employed by FMR LLC or an affiliate (2001-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
David J. Carter (38) | |
| Year of Election or Appointment: 2010 Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Carter also serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2005-present). |
Holly C. Laurent (57) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent also serves as AML Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present) and is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (53) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (44) | |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker also serves as Chief Compliance Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present). Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (50) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009). |
Joseph F. Zambello (54) | |
| Year of Election or Appointment: 2011 Deputy Treasurer of the Fidelity funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Stephanie J. Dorsey (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey also serves as Assistant Treasurer of other Fidelity funds (2010-present) and is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Adrien E. Deberghes (44) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Deberghes also serves as Vice President and Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II (2011-present), Deputy Treasurer of other Fidelity funds (2008-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Kenneth B. Robins (42) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds (2008-present; 2010-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Deputy Treasurer of the Fidelity funds (2005-2008) and Treasurer and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2006-2008). |
Gary W. Ryan (53) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Jonathan Davis (43) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of the Fidelity funds. Mr. Davis is also Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Annual Report
Distributions (Unaudited)
During fiscal year ended 2011, 100% of Fidelity Michigan Municipal Income Fund and Fidelity Michigan Municipal Money Market Fund's income dividends were free from federal income tax, and 0.30% of Fidelity Michigan Municipal Income Fund and 25.91% Fidelity Michigan Municipal Money Market Fund's income dividends were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2012 of amounts for use in preparing 2011 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Michigan Municipal Income Fund / Fidelity Michigan Municipal Money Market Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Nominating and Governance, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2011 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expense ratio; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that each fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Annual Report
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' investment personnel and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has devoted increased resources to non-U.S. offices. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities which allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and enhancers. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools which permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading capabilities and resources which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for each fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers, with 35 new branches opening since 2010.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) rationalizing product lines through the mergers of six funds into other funds; (iii) continuing to migrate the Freedom Funds to dedicated lower cost underlying funds; (iv) obtaining shareholder approval to broaden the investment strategies for Fidelity Consumer Finance Portfolio, Fidelity Emerging Asia Fund, and Fidelity Environment and Alternative Energy Portfolio; (v) contractually agreeing to reduce the management fees and impose other expense limitations on Spartan 500 Index Fund and U.S. Bond Index Fund in connection with launching new institutional classes of these funds; (vi) changing the name, primary and supplemental benchmarks, and investment policies of Fidelity Global Strategies Fund to support the fund's flexible investment mandate and global orientation; and (vii) reducing the transfer agency account fee rates on certain accounts.
Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance, as well as each fund's relative investment performance measured over multiple periods against (i) a broad-based securities market index (bond fund only, as money market funds are typically not compared against a market index), and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. For each fund, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2010, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark") (bond fund only), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Annual Report
Fidelity Michigan Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the fund was in the first quartile for all the periods shown. The Board also noted that the investment performance of the fund compared favorably to its benchmark for the three- and five-year periods, although the fund's one-year total return was lower than its benchmark. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Michigan Municipal Money Market Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the fund was in the second quartile for the one-year period and the third quartile for the three- and five-year periods. The Board considered that FMR had taken steps to provide shareholders with stability of principal and to enhance safety and liquidity. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should benefit each fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 36% would mean that 64% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.
Annual Report
Fidelity Michigan Municipal Income Fund
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Michigan Municipal Money Market Fund
The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2010.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each fund's total expense ratio, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current and historical total expense ratios of each fund compared to competitive fund median expenses. Each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that each fund's total expense ratio ranked below its competitive median for 2010. The Board considered that Fidelity has been voluntarily waiving part or all of the transfer agent fees and/or management fees to maintain a minimum yield for Fidelity Michigan Municipal Money Market Fund, and also noted that Fidelity retains the ability to be repaid by the fund in certain circumstances.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Annual Report
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that each fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes; (vi) the reasons why certain expenses affect various funds and classes differently; (vii) Fidelity's transfer agent fees, expenses, and services and how the benefits of decreased costs and new efficiencies can be shared across all of the Fidelity funds; (viii) the reasons for and consequences of changes to certain product lines compared to competitors; (ix) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (x) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Annual Report
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Annual Report
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.
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
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.
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 distributions, and the effects of any sales charges.
Annual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
15445 N. Scottsdale Road
Scottsdale, AZ
17550 North 75th Avenue
Glendale, AZ
5330 E. Broadway Blvd
Tucson, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
601 Larkspur Landing Circle
Larkspur, CA
2000 Avenue of the Stars
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16656 Bernardo Ctr. Drive
Rancho Bernardo, CA
1220 Roseville Parkway
Roseville, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
11943 El Camino Real
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
1200 Wilshire Boulevard
Santa Monica, CA
398 West El Camino Real
Sunnyvale, CA
111 South Westlake Blvd
Thousand Oaks, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6326 Canoga Avenue
Woodland Hills, CA
2211 Michelson Drive
Irvine, CA
Colorado
281 East Flatiron Circle
Broomfield, CO
1625 Broadway
Denver, CO
9185 Westview Road
Lone Tree, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
1261 Post Road
Fairfield, CT
Delaware
400 Delaware Avenue
Wilmington, DE
Florida
175 East Altamonte Drive
Altamonte Springs, FL
1400 Glades Road
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
4671 Town Center Parkway
Jacksonville, FL
8880 Tamiami Trail, North
Naples, FL
230 Royal Palm Way
Palm Beach, FL
3501 PGA Boulevard
Palm Beach Gardens, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
2465 State Road 7
Wellington, FL
Georgia
3242 Peachtree Road
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
401 North Michigan Avenue
Chicago, IL
One Skokie Valley Road
Highland Park, IL
1415 West 22nd Street
Oak Brook, IL
15105 S LaGrange Road
Orland Park, IL
1572 East Golf Road
Schaumburg, IL
1823 Freedom Drive
Naperville, IL
Indiana
8480 Keystone Crossing
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
610 York Road
Towson, MD
Massachusetts
801 Boylston Street
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Fidelity®
Minnesota Municipal Income
Fund
Annual Report
December 31, 2011
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fundperformance and strategy. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
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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 holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
The investment environment in 2011 was characterized by a number of headline events, most notably the early-August decision by Standard & Poor's to lower the long-term sovereign credit rating of the United States. The historic downgrade followed a stalemate in which Congress struggled to address the debt ceiling, heightening investor anxiety and within a matter of days wiping out a solid first-half advance that was largely driven by encouraging corporate earnings and economic activity. At the same time, investors were becoming increasingly concerned about the sovereign debt crisis in Europe and its potential to derail the U.S. economy, as well as persistently high unemployment. The combination of these factors set off a wave of unusually high volatility that lasted until late in the year, with wide weekly, and even daily, swings fueled largely by the latest developments coming out of the eurozone.
Against this backdrop, equities struggled to gain any significant momentum in the second half, and finished 2011 with only a modest gain, due in part to a strong October. High-grade bonds, meanwhile, benefited from periodic flights to quality and turned in a solid performance, paced by municipal issues and Treasuries.
Financial markets are difficult to predict, of course, but you can help put the odds in your favor by following these time-tested investment principles. One of the basic tenets is to invest according to your time horizon. For long-term investors, riding out the markets' inevitable ups and downs has proven much more effective than making decisions based on short-term developments. If your goal is approaching, you can also benefit from patience and restraint, rather than attempting to time the market.
Asset allocation is another principle to manage risk. As you spread your portfolio among the asset classes, be sure to consider your time horizon, risk tolerance and investment objectives. After deciding on a suitable allocation strategy, make sure your portfolio is adequately diversified, with exposure to stocks of small-, mid- and large-cap companies in a range of sectors, for example.
Lastly, investing a certain amount of money on a regular basis - a principle known as dollar-cost averaging - can help lower the average cost of your purchases, while also giving you the discipline to avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to learn more by visiting us on the Internet, dropping by one of our Investor Centers or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Abigail P. Johnson
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2011 | Past 1 | Past 5 | Past 10 |
Fidelity® Minnesota Municipal Income Fund | 9.09% | 4.79% | 4.84% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Minnesota Municipal Income Fund on December 31, 2001. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds generated a low double-digit return for the 12 months ending December 31, 2011, ranking them as one of the year's best-performing asset classes. The Barclays Capital® Municipal Bond Index - a measure of more than 46,000 tax-exempt investment-grade fixed-rate bonds - advanced 10.70%, significantly outpacing the 7.84% gain of the taxable investment-grade debt market, as measured by the Barclays Capital® U.S. Aggregate Bond Index. In early 2011, muni prices fell due to inflation concern, uncertain tax policy, anticipated heavy supply and the lingering effects of late-2010 headlines forecasting an unprecedented wave of issuer defaults. But in February, munis began what amounted to a virtually uninterrupted rally, as demand surged, supply was muted, widespread defaults didn't materialize and the fiscal health of issuers improved. During the summer, a dimming U.S. economic outlook, unresolved debt woes in Europe and legislative wrangling over the U.S. debt ceiling fueled further demand for munis, as U.S. investors sought haven against global economic uncertainty. The muni sector lost modest ground in October, due in part to the ongoing challenging credit environment and various proposals out of Washington, D.C., that could potentially limit munis' tax-free benefits. However, those losses were quickly erased in November, and munis posted a strong gain in December.
Comments from Kevin Ramundo, Portfolio Manager of Fidelity® Minnesota Municipal Income Fund: For the year, the fund returned 9.09%, while the Barclays Capital Minnesota Enhanced Municipal Bond Index rose 9.26%. The fund's larger-than-benchmark exposure to hospital bonds and an underweighting in housing bonds and helped offset the negative impact of an overweighting in bonds that were to be crossover refunded and in premium callable bonds. Hospital bonds outpaced the index, thanks to the combination of their higher yields and better-than-average price appreciation. Housing bonds lagged the index, coming under pressure in part due to worries about weakness in the housing market. Crossover bonds are issued to redeem existing bonds. In this category, the fund was overweighted in bonds that were callable, meaning redeemable, by their issuers, in 2012 and at par, meaning their face value. Because of these two features, these securities tended to be more defensive, lagging the benchmark as the muni market advanced. Premium callable bonds, which sold above face value and could be redeemed by their issuers before maturity, also trailed the index, as those features reduced the bonds' interest rate sensitivity and, thereby, limited their upside as the muni market rallied.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2011 to December 31, 2011).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Actual | .48% | $ 1,000.00 | $ 1,051.60 | $ 2.48 |
Hypothetical (5% return per year before expenses) |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Five Sectors as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
General Obligations | 30.5 | 31.0 |
Health Care | 18.6 | 18.4 |
Escrowed/Pre-Refunded | 13.7 | 15.8 |
Electric Utilities | 12.3 | 12.2 |
Education | 9.7 | 8.4 |
Weighted Average Maturity as of December 31, 2011 | ||
|
| 6 months ago |
Years | 5.3 | 6.4 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2011 | ||
|
| 6 months ago |
Years | 6.3 | 6.3 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-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. Duration takes into account any call or put option embedded in the bonds. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2011 | As of June 30, 2011 | ||||||
![]() | AAA 7.0% |
| ![]() | AAA 7.9% |
| ||
![]() | AA,A 86.4% |
| ![]() | AA,A 83.5% |
| ||
![]() | BBB 3.7% |
| ![]() | BBB 3.6% |
| ||
![]() | BB and Below 0.6% |
| ![]() | BB and Below 0.6% |
| ||
![]() | Not Rated 0.5% |
| ![]() | Not Rated 2.6% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Investments December 31, 2011
Showing Percentage of Net Assets
Municipal Bonds - 98.2% | ||||
| Principal Amount | Value | ||
Guam - 0.3% | ||||
Guam Ed. Fing. Foundation Ctfs. of Prtn. Series 2006 A, 5% 10/1/23 | $ 1,500,000 | $ 1,495,935 | ||
Minnesota - 95.9% | ||||
Alexandria Independent School District #206 Gen. Oblig. (Minnesota School District Cr. Enhancement Prog.) Series 2008 A, 5% 2/1/17 (FSA Insured) | 1,000,000 | 1,186,440 | ||
Anoka-Hennepin Independent School District #11 Series 2004 B, 5% 2/1/20 (Pre-Refunded to 2/1/12 @ 100) | 1,880,000 | 1,886,505 | ||
Brainerd Independent School District #181 Series 2002 A: | ||||
5.375% 2/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (Pre-Refunded to 8/1/12 @ 100) | 3,285,000 | 3,373,301 | ||
5.375% 2/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (Pre-Refunded to 8/1/12 @ 100) | 4,100,000 | 4,210,208 | ||
5.375% 2/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (Pre-Refunded to 8/1/12 @ 100) | 2,200,000 | 2,259,136 | ||
Breckenridge Gen. Oblig. (Catholic Health Initiatives Proj.) Series 2004 A, 5% 5/1/30 | 4,575,000 | 4,655,932 | ||
Brooklyn Ctr. Independent School District #286 Series 2002, 5.1% 2/1/31 (FGIC Insured) (Pre-Refunded to 2/1/12 @ 100) | 6,000,000 | 6,020,280 | ||
Burnsville-Eagan-Savage Independent School District #191 Gen. Oblig. (Minnesota School Distric Cr. Enhancement Prog.) Series 2007 A, 5% 2/1/17 (FSA Insured) | 525,000 | 617,222 | ||
Cambridge Independent School District #911 Gen. Oblig. (Minnesota School District Prog.) Series 2005 C, 5% 4/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,200,000 | 1,305,708 | ||
Centennial Independent School District #12 Series 2002 A, 5% 2/1/19 (FSA Insured) | 230,000 | 230,761 | ||
Chaska Elec. Rev. (Generating Facilities Proj.) | ||||
5.25% 10/1/20 | 2,000,000 | 2,182,360 | ||
5.25% 10/1/25 | 1,955,000 | 2,080,882 | ||
Chaska Independent School District #112 Gen. Oblig.: | ||||
(School Bldg. Proj.) Series 2007 A, 5% 2/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 750,000 | 887,400 | ||
Series 2009 A: | ||||
4% 2/1/16 | 1,000,000 | 1,118,990 | ||
5% 2/1/17 | 1,000,000 | 1,194,610 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Duluth Independent School District #709 Ctfs. of Prtn. Series 2009 B: | ||||
4% 3/1/16 | $ 1,445,000 | $ 1,589,370 | ||
4% 3/1/17 | 1,495,000 | 1,673,428 | ||
4% 3/1/18 | 1,235,000 | 1,392,623 | ||
5% 3/1/30 | 2,770,000 | 2,996,254 | ||
Elk River Independent School District #728: | ||||
Series 2002 A: | ||||
5% 2/1/16 (FSA Insured) (Pre-Refunded to 2/1/13 @ 100) | 3,000,000 | 3,135,570 | ||
5.25% 2/1/18 (FSA Insured) (Pre-Refunded to 2/1/13 @ 100) | 3,600,000 | 3,772,260 | ||
Series 2004 A, 5% 2/1/17 (FGIC Insured) (Pre-Refunded to 8/1/14 @ 100) | 1,000,000 | 1,097,560 | ||
Series 2006 A, 5% 2/1/19 (FSA Insured) | 3,500,000 | 3,961,370 | ||
Hennepin County Gen. Oblig. Series 2010 E, 5% 12/15/20 | 4,945,000 | 6,173,684 | ||
Hennepin County Sales Tax Rev. (Ballpark Proj.) Series 2007 A, 5% 12/15/24 | 1,000,000 | 1,146,210 | ||
Hopkins Independent School District #270 Series 2002: | ||||
5% 2/1/16 (FGIC Insured) (Pre-Refunded to 2/1/12 @ 100) | 1,350,000 | 1,354,469 | ||
5.125% 2/1/17 (FGIC Insured) (Pre-Refunded to 2/1/12 @ 100) | 1,015,000 | 1,018,451 | ||
Jackson County Central Independent School District #2895 5% 2/1/21 (FSA Insured) | 1,220,000 | 1,224,038 | ||
Lake Superior Independent School District #381 Series 2002 A: | ||||
5% 4/1/15 (FSA Insured) (Pre-Refunded to 4/1/13 @ 100) | 1,970,000 | 2,072,775 | ||
5% 4/1/16 (FSA Insured) (Pre-Refunded to 4/1/13 @ 100) | 2,065,000 | 2,172,731 | ||
5% 4/1/17 (FSA Insured) (Pre-Refunded to 4/1/13 @ 100) | 2,165,000 | 2,277,948 | ||
5% 4/1/18 (FSA Insured) (Pre-Refunded to 4/1/13 @ 100) | 1,260,000 | 1,325,734 | ||
Lakeville Independent School District #194 Series 2002 A, 5% 2/1/22 (FGIC Insured) (Pre-Refunded to 2/1/13 @ 100) | 1,000,000 | 1,045,190 | ||
Maple Grove Health Care Sys. Rev. (Maple Grove Hosp. Corp. Proj.) Series 2007: | 1,000,000 | 1,074,590 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Maple Grove Health Care Sys. Rev. (Maple Grove Hosp. Corp. Proj.) Series 2007: - continued | ||||
5.25% 5/1/24 | $ 1,500,000 | $ 1,539,060 | ||
5.25% 5/1/25 | 2,000,000 | 2,042,640 | ||
5.25% 5/1/28 | 3,720,000 | 3,747,156 | ||
Metropolitan Council Gen. Oblig. Rev. (Wastewtr. Proj.) Series 2008 C, 5% 3/1/21 | 5,000,000 | 5,748,150 | ||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev.: | ||||
(Children's Health Care Proj.): | ||||
Series 1995 B, 5% 8/15/25 (FSA Insured) | 3,000,000 | 3,391,470 | ||
Series 2010 A, 5.25% 8/15/25 | 1,000,000 | 1,118,840 | ||
(Children's Hospitals and Clinics Proj.) Series 2004 A1, 5% 8/15/34 (FSA Insured) | 500,000 | 533,100 | ||
(HealthPartners Obligated Group Proj.) Series 2003: | ||||
5.875% 12/1/29 | 800,000 | 826,184 | ||
6% 12/1/19 | 2,815,000 | 3,014,021 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.: | ||||
Series 2005 A: | ||||
5% 1/1/15 (AMBAC Insured) | 2,000,000 | 2,210,040 | ||
5% 1/1/35 (AMBAC Insured) | 8,500,000 | 8,636,595 | ||
Series 2005 C, 5% 1/1/31 (FGIC Insured) | 2,090,000 | 2,140,035 | ||
Series 2007 A, 5% 1/1/21 | 5,000,000 | 5,597,800 | ||
Series 2007 B, 5% 1/1/18 (FGIC Insured) | 2,000,000 | 2,293,780 | ||
Series 2008 A: | ||||
5% 1/1/13 (b) | 655,000 | 683,375 | ||
5% 1/1/14 (b) | 3,000,000 | 3,240,660 | ||
Series 2010 D, 5% 1/1/17 (b) | 4,155,000 | 4,722,864 | ||
Series B, 5% 1/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,830,000 | 3,151,460 | ||
Minneapolis Gen. Oblig. Series 2009: | ||||
4% 12/1/20 | 2,800,000 | 3,100,440 | ||
4% 12/1/21 | 2,330,000 | 2,559,272 | ||
Minneapolis Health Care Sys. Rev. (Fairview Health Svcs. Proj.): | ||||
Series 2005 D, 5% 11/15/34 (AMBAC Insured) | 5,120,000 | 5,164,390 | ||
Series 2008 B, 6.5% 11/15/38 (Assured Guaranty Corp. Insured) | 3,500,000 | 3,982,020 | ||
Minneapolis Spl. School District #1: | ||||
Series 2005 A, 5% 2/1/17 (FSA Insured) | 2,000,000 | 2,170,120 | ||
5% 2/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,020,000 | 1,023,376 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Minnesota 911 Rev.: | ||||
(Pub. Safety Radio Communications Sys. Proj.) Series 2009, 5% 6/1/21 (Assured Guaranty Corp. Insured) | $ 2,220,000 | $ 2,642,599 | ||
5% 6/1/21 | 2,000,000 | 2,380,720 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Essentia Health Obligated Group Proj.): | ||||
Series 2008 C1: | ||||
5% 2/15/16 (Assured Guaranty Corp. Insured) | 415,000 | 464,414 | ||
5% 2/15/30 (Assured Guaranty Corp. Insured) | 3,750,000 | 3,972,750 | ||
5.25% 2/15/23 (Assured Guaranty Corp. Insured) | 1,660,000 | 1,907,755 | ||
5.5% 2/15/25 (Assured Guaranty Corp. Insured) | 2,500,000 | 2,848,425 | ||
Series 2008, 5% 2/15/17 (Assured Guaranty Corp. Insured) | 1,975,000 | 2,239,887 | ||
Minnesota Gen. Oblig.: | ||||
Series 2008 A, 5% 6/1/21 | 3,300,000 | 3,962,673 | ||
Series 2009 A, 5% 12/1/23 | 15,540,000 | 18,996,557 | ||
Series 2009 H, 5% 11/1/21 | 4,590,000 | 5,687,331 | ||
Series 2010 A, 5% 8/1/27 | 5,000,000 | 5,841,350 | ||
Series 2010 D: | ||||
5% 8/1/21 | 1,000,000 | 1,244,150 | ||
5% 8/1/22 | 5,000,000 | 6,145,250 | ||
5% 8/1/23 | 10,000,000 | 12,185,200 | ||
Series 2011 B: | ||||
5% 10/1/24 | 2,500,000 | 3,051,700 | ||
5% 10/1/30 | 3,000,000 | 3,486,810 | ||
5% 11/1/15 | 5,135,000 | 5,760,135 | ||
5% 6/1/21 | 8,585,000 | 9,920,740 | ||
5% 8/1/22 | 2,600,000 | 3,027,206 | ||
5% 11/1/24 (Pre-Refunded to 11/1/14 @ 100) | 9,155,000 | 10,250,396 | ||
5% 11/1/26 | 4,270,000 | 4,747,856 | ||
Minnesota Higher Ed. Facilities Auth. Rev.: | ||||
(College of St. Scholastica, Inc. Proj.) Series Seven-H, 5.25% 12/1/35 | 1,000,000 | 1,014,160 | ||
(Gustovus Adolphus College Proj.) Series Seven-B: | ||||
5% 10/1/22 | 2,250,000 | 2,570,310 | ||
5% 10/1/23 | 1,000,000 | 1,132,000 | ||
(Hamline Univ. Proj.) Series Seven-E: | ||||
5% 10/1/17 | 1,565,000 | 1,731,422 | ||
5% 10/1/19 | 1,000,000 | 1,099,450 | ||
(Macalester College Proj.) Series Six-P: | ||||
5% 3/1/21 | 2,315,000 | 2,631,646 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Minnesota Higher Ed. Facilities Auth. Rev.: - continued | ||||
(Macalester College Proj.) Series Six-P: | ||||
5% 3/1/22 | $ 2,535,000 | $ 2,855,373 | ||
(St. Olaf College Proj.) Series Six-O, 5% 10/1/15 | 1,000,000 | 1,120,960 | ||
(Univ. of St. Thomas Proj.): | ||||
Series Seven-A, 5% 10/1/39 | 1,650,000 | 1,748,654 | ||
Series Six-I, 5% 4/1/23 | 1,000,000 | 1,094,860 | ||
Series Six-X, 5.25% 4/1/39 | 1,500,000 | 1,588,470 | ||
Minnesota Muni. Pwr. Agcy. Elec. Rev.: | ||||
Series 2005, 5.25% 10/1/21 | 8,450,000 | 9,261,538 | ||
Series 2007, 5.25% 10/1/22 | 1,000,000 | 1,126,750 | ||
Minnesota Pub. Facilities Auth. Drinking Wtr. Rev. Series 2005 A, 5% 3/1/21 | 5,060,000 | 5,608,706 | ||
Minnesota Retirement Sys. Bldg. Rev.: | ||||
5.55% 6/1/14 | 590,000 | 591,994 | ||
5.6% 6/1/15 | 615,000 | 617,153 | ||
5.65% 6/1/16 | 625,000 | 627,081 | ||
5.7% 6/1/17 | 900,000 | 902,952 | ||
5.75% 6/1/18 | 975,000 | 978,081 | ||
5.75% 6/1/19 | 1,050,000 | 1,053,192 | ||
5.8% 6/1/20 | 1,000,000 | 1,002,970 | ||
5.875% 6/1/22 | 2,425,000 | 2,432,105 | ||
Minnesota State Colleges & Univs. Board of Trustees Rev.: | ||||
Series 2005 A, 5% 10/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,465,000 | 1,649,019 | ||
Series 2009 A: | ||||
4% 10/1/17 | 1,445,000 | 1,655,753 | ||
4% 10/1/18 | 1,490,000 | 1,718,581 | ||
4% 10/1/19 | 1,550,000 | 1,796,497 | ||
4% 10/1/20 | 1,580,000 | 1,807,915 | ||
Series 2011 A, 5% 10/1/30 | 1,495,000 | 1,686,539 | ||
North Saint Paul-Maplewood-Oakdale Independent School District 622 Series 2006 B: | ||||
5% 2/1/17 (FSA Insured) | 1,525,000 | 1,820,103 | ||
5% 8/1/17 (FSA Insured) | 1,575,000 | 1,835,710 | ||
Northeast Metropolitan Intermediate School District #916 Ctfs. of Prtn. Series 2004, 5% 1/1/13 | 1,000,000 | 1,034,430 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev.: | ||||
Series 2009 A, 5% 1/1/16 (Assured Guaranty Corp. Insured) | 3,000,000 | 3,413,820 | ||
Series 2010 A1: | ||||
5% 1/1/19 | 3,000,000 | 3,599,460 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev.: - continued | ||||
Series 2010 A1: | ||||
5% 1/1/20 | $ 1,000,000 | $ 1,206,550 | ||
Series A, 5% 1/1/18 (Assured Guaranty Corp. Insured) | 3,000,000 | 3,553,950 | ||
Northfield Hosp. Rev. Series 2006: | ||||
5.375% 11/1/26 | 1,000,000 | 1,026,150 | ||
5.5% 11/1/16 | 1,025,000 | 1,127,121 | ||
Osseo Independent School District #279 Series A, 5.25% 2/1/14 (FSA Insured) | 2,100,000 | 2,107,329 | ||
Owatonna Pub. Utils. Commission Pub. Utils. Rev. Series 2003: | ||||
5% 1/1/13 (AMBAC Insured) | 800,000 | 834,408 | ||
5% 1/1/15 (AMBAC Insured) | 715,000 | 741,770 | ||
Ramsey County Gen. Oblig. Series 2003 A, 5% 2/1/18 | 1,530,000 | 1,603,700 | ||
Robbinsdale Independent School District #281 Series 2002: | ||||
5% 2/1/16 (FSA Insured) | 1,015,000 | 1,018,360 | ||
5% 2/1/18 | 2,520,000 | 2,528,719 | ||
Rochester Elec. Util. Rev. Series 2007 C, 5% 12/1/30 | 2,000,000 | 2,206,100 | ||
Rochester Health Care Facilities Rev.: | ||||
(Mayo Clinic Proj.) Series 2008 E, 5% 11/15/38 | 4,000,000 | 4,287,560 | ||
(Mayo Foundation Proj.) Series 2006, 5% 11/15/36 | 2,000,000 | 2,087,360 | ||
Bonds: | ||||
(Mayo Clinic Proj.) Series B, 4%, tender 11/15/18 (a) | 3,000,000 | 3,362,400 | ||
(Mayo Foundation Proj.) Series C, 4.5%, tender 11/15/21 (a) | 1,000,000 | 1,148,360 | ||
Saint Cloud Health Care Rev. (CentraCare Health Sys. Proj.) Series 2010 A, 5.125% 5/1/30 | 5,000,000 | 5,239,350 | ||
Saint Michael Independent School District #885 Series 2002, 5% 2/1/27 (FSA Insured) | 5,500,000 | 5,518,205 | ||
Saint Paul Hsg. & Redev. Auth. Hosp. Rev. (HealthEast Proj.) Series 2005, 5.25% 11/15/14 | 1,000,000 | 1,054,170 | ||
Saint Paul Independent School District #625: | ||||
Series 2001 C, 5% 2/1/21 | 1,000,000 | 1,003,310 | ||
Series 2002 A: | ||||
5% 2/1/17 (FSA Insured) (Pre-Refunded to 2/1/13 @ 100) | 220,000 | 229,942 | ||
5% 2/1/18 (FSA Insured) (Pre-Refunded to 2/1/13 @ 100) | 395,000 | 412,850 | ||
Series 2004 B, 5% 2/1/17 (FSA Insured) | 1,300,000 | 1,455,246 | ||
Series 2004 C, 5% 2/1/16 (FSA Insured) | 1,025,000 | 1,142,127 | ||
Saint Paul Port Auth. Series 2007-2, 5% 3/1/37 | 1,500,000 | 1,582,050 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Saint Paul Port Auth. Lease Rev.: | ||||
(HealthEast Midway Campus Proj.) Series 2003 A, 5.75% 5/1/25 | $ 2,000,000 | $ 2,025,700 | ||
(Regions Hosp. Package Proj.) Series 2007-1: | ||||
5% 8/1/12 | 410,000 | 415,006 | ||
5% 8/1/13 | 430,000 | 442,565 | ||
5% 8/1/14 | 455,000 | 474,142 | ||
5% 8/1/15 | 480,000 | 503,472 | ||
5% 8/1/16 | 500,000 | 524,310 | ||
Series 2003 11, 5.25% 12/1/20 | 3,000,000 | 3,169,770 | ||
Series 2003 12: | ||||
5.125% 12/1/27 | 5,000,000 | 5,158,600 | ||
5.25% 12/1/18 | 3,685,000 | 3,922,756 | ||
Shakopee Health Care Facilities Rev. (Saint Francis Reg'l. Med. Ctr. Proj.) Series 2004, 5.25% 9/1/34 | 2,520,000 | 2,483,687 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev.: | ||||
(Cap. Appreciation) Series 1994 A: | ||||
0% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,210,000 | 5,116,730 | ||
0% 1/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 14,670,000 | 10,950,275 | ||
0% 1/1/26 (Nat'l. Pub Fin. Guarantee Corp. Insured) | 2,000,000 | 1,115,120 | ||
Series 2002 A: | ||||
5.25% 1/1/15 (AMBAC Insured) | 1,125,000 | 1,259,426 | ||
5.25% 1/1/16 (AMBAC Insured) | 4,490,000 | 5,173,468 | ||
Series 2009 A: | ||||
5% 1/1/13 | 2,500,000 | 2,610,575 | ||
5% 1/1/14 | 960,000 | 1,038,211 | ||
5.25% 1/1/30 | 2,000,000 | 2,203,600 | ||
5.5% 1/1/24 | 500,000 | 585,150 | ||
Spring Lake Park Independent School District #16: | ||||
Series 2004 B: | ||||
5% 2/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (Pre-Refunded to 2/1/13 @ 100) | 2,085,000 | 2,179,221 | ||
5% 2/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (Pre-Refunded to 2/1/13 @ 100) | 2,230,000 | 2,330,774 | ||
5% 2/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (Pre-Refunded to 2/1/13 @ 100) | 2,400,000 | 2,508,456 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Spring Lake Park Independent School District #16: - continued | ||||
Series 2006 A, 5% 2/1/29 (FSA Insured) | $ 4,000,000 | $ 4,298,080 | ||
St. Louis Park Health Care Facilities Rev. (Park Nicollet Health Svcs. Proj.): | ||||
Series 2008 C, 5.75% 7/1/30 | 3,355,000 | 3,525,166 | ||
Series 2009, 5.75% 7/1/39 | 9,000,000 | 9,366,030 | ||
St. Paul Hsg. & Redev. Auth. Health Care Facilities Rev.: | ||||
(Allina Health Sys. Proj.): | ||||
Series 2007 A: | ||||
5% 11/15/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 240,000 | 267,473 | ||
5% 11/15/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,100,000 | 2,267,832 | ||
Series 2009 A1, 5.25% 11/15/29 | 3,000,000 | 3,192,360 | ||
(Gillette Children's Speciality Healthcare Proj.) 5% 2/1/16 | 1,460,000 | 1,530,518 | ||
(HealthPartners Oblig. Group Proj.) Series 2006: | ||||
5% 5/15/15 | 250,000 | 266,608 | ||
5% 5/15/16 | 345,000 | 368,049 | ||
5.25% 5/15/17 | 590,000 | 630,858 | ||
5.25% 5/15/26 | 1,000,000 | 1,021,420 | ||
5.25% 5/15/36 | 1,000,000 | 1,005,470 | ||
(Regions Hosp. Proj.) 5.3% 5/15/28 | 1,250,000 | 1,249,925 | ||
Series 2009 A2, 5.5% 11/15/24 | 2,000,000 | 2,233,400 | ||
Tobacco Securitization Auth. Series 2011 B, 5.25% 3/1/31 | 6,005,000 | 6,142,214 | ||
Univ. of Minnesota Gen. Oblig.: | ||||
Series 2009 A: | ||||
5% 4/1/23 | 200,000 | 237,574 | ||
5.125% 4/1/34 | 1,000,000 | 1,116,610 | ||
5.25% 4/1/29 | 1,000,000 | 1,150,290 | ||
Series 2009 C: | ||||
5% 12/1/17 | 1,000,000 | 1,218,560 | ||
5% 12/1/21 | 1,000,000 | 1,198,670 | ||
Series 2011 D: | ||||
5% 12/1/23 | 1,180,000 | 1,456,049 | ||
5% 12/1/26 | 1,020,000 | 1,214,871 | ||
5% 12/1/36 | 1,000,000 | 1,124,620 | ||
Univ. of Minnesota Spl. Purp. Rev.: | ||||
(State Supported Biomedical Science Research Facilities Fdg. Prog.) Series 2011 B, 5% 8/1/25 | 2,095,000 | 2,450,836 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Univ. of Minnesota Spl. Purp. Rev.: - continued | ||||
(State Supported Stadium Proj.) Series 2006: | ||||
5% 8/1/20 | $ 6,625,000 | $ 7,668,106 | ||
5% 8/1/29 | 4,000,000 | 4,371,520 | ||
Series 2010 A, 5% 8/1/25 | 1,800,000 | 2,085,030 | ||
Virginia Hsg. & Redev. Auth. Health Care Facility Lease Rev. Series 2005, 5.25% 10/1/25 | 440,000 | 444,572 | ||
Watertown Independent School District #111 Series 2005 A, 5% 2/1/22 (FSA Insured) | 1,495,000 | 1,648,312 | ||
Wayzata Independent School District #284 Series 2004 B, 5% 2/1/16 (FSA Insured) | 1,005,000 | 1,119,841 | ||
Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Rev.: | ||||
Series 1977 A, 6.375% 1/1/16 (Escrowed to Maturity) | 760,000 | 843,478 | ||
Series 2003 A, 5% 1/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000,000 | 3,042,180 | ||
Series 2006 A, 5% 1/1/16 (FSA Insured) | 2,000,000 | 2,285,900 | ||
White Bear Lake Independent School District #624 Gen. Oblig. (Alternative Facilities Proj.) Series 2006 A, 4.25% 2/1/12 | 1,300,000 | 1,303,835 | ||
| 497,936,754 | |||
Puerto Rico - 1.8% | ||||
Puerto Rico Govt. Dev. Bank Series 2006 B, 5% 12/1/12 | 1,000,000 | 1,031,720 | ||
Puerto Rico Pub. Bldg. Auth. Rev. Bonds Series M2, 5.75%, tender 7/1/17 (a) | 600,000 | 659,028 | ||
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev.: | ||||
Series 2007 A, 0% 8/1/41 (FGIC Insured) | 9,300,000 | 1,541,847 | ||
Series 2009 A, 6% 8/1/42 | 1,000,000 | 1,095,320 | ||
Series 2010 A: | ||||
0% 8/1/31 | 6,745,000 | 2,177,893 | ||
0% 8/1/33 | 950,000 | 264,271 | ||
Series 2011 C, 0% 8/1/39 | 11,750,000 | 2,302,178 | ||
| 9,072,257 | |||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Virgin Islands - 0.2% | ||||
Virgin Islands Pub. Fin. Auth. Series 2009 B, 5% 10/1/25 | $ 1,000,000 | $ 1,036,930 |
TOTAL INVESTMENT PORTFOLIO - 98.2% (Cost $480,881,831) | 509,541,876 | ||
NET OTHER ASSETS (LIABILITIES) - 1.8% | 9,550,425 | ||
NET ASSETS - 100% | $ 519,092,301 |
Legend |
(a) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 30.5% |
Health Care | 18.6% |
Escrowed/Pre-Refunded | 13.7% |
Electric Utilities | 12.3% |
Education | 9.7% |
Transportation | 6.2% |
Others* (Individually Less Than 5%) | 9.0% |
| 100.0% |
* Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
| December 31, 2011 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $480,881,831) |
| $ 509,541,876 |
Cash |
| 3,072,370 |
Receivable for fund shares sold | 802,740 | |
Interest receivable | 6,561,205 | |
Prepaid expenses | 1,147 | |
Other receivables | 203 | |
Total assets | 519,979,541 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 162,367 | |
Distributions payable | 436,061 | |
Accrued management fee | 156,974 | |
Transfer agent fee payable | 69,735 | |
Other affiliated payables | 22,178 | |
Other payables and accrued expenses | 39,925 | |
Total liabilities | 887,240 | |
|
|
|
Net Assets | $ 519,092,301 | |
Net Assets consist of: |
| |
Paid in capital | $ 490,440,522 | |
Undistributed net investment income | 39,589 | |
Accumulated undistributed net realized gain (loss) on investments | (47,855) | |
Net unrealized appreciation (depreciation) on investments | 28,660,045 | |
Net Assets, for 44,000,381 shares outstanding | $ 519,092,301 | |
Net Asset Value, offering price and redemption price per share ($519,092,301 ÷ 44,000,381 shares) | $ 11.80 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
| Year ended December 31, 2011 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 19,737,330 |
|
|
|
Expenses | ||
Management fee | $ 1,805,573 | |
Transfer agent fees | 400,378 | |
Accounting fees and expenses | 127,699 | |
Custodian fees and expenses | 5,932 | |
Independent trustees' compensation | 1,834 | |
Registration fees | 30,469 | |
Audit | 48,257 | |
Legal | 5,918 | |
Miscellaneous | 5,195 | |
Total expenses before reductions | 2,431,255 | |
Expense reductions | (1,693) | 2,429,562 |
Net investment income (loss) | 17,307,768 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 2,028,016 | |
Change in net unrealized appreciation (depreciation) on investment securities | 23,563,920 | |
Net gain (loss) | 25,591,936 | |
Net increase (decrease) in net assets resulting from operations | $ 42,899,704 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 17,307,768 | $ 17,489,087 |
Net realized gain (loss) | 2,028,016 | 950,925 |
Change in net unrealized appreciation (depreciation) | 23,563,920 | (6,975,524) |
Net increase (decrease) in net assets resulting | 42,899,704 | 11,464,488 |
Distributions to shareholders from net investment income | (17,313,267) | (17,490,902) |
Distributions to shareholders from net realized gain | (2,223,703) | (626,088) |
Total distributions | (19,536,970) | (18,116,990) |
Share transactions | 74,910,585 | 112,746,948 |
Reinvestment of distributions | 13,858,387 | 13,183,841 |
Cost of shares redeemed | (90,716,185) | (95,046,498) |
Net increase (decrease) in net assets resulting from share transactions | (1,947,213) | 30,884,291 |
Redemption fees | 4,082 | 3,343 |
Total increase (decrease) in net assets | 21,419,603 | 24,235,132 |
|
|
|
Net Assets | ||
Beginning of period | 497,672,698 | 473,437,566 |
End of period (including undistributed net investment income of $39,589 and undistributed net investment income of $55,722, respectively) | $ 519,092,301 | $ 497,672,698 |
Other Information Shares | ||
Sold | 6,529,176 | 9,792,602 |
Issued in reinvestment of distributions | 1,202,602 | 1,145,262 |
Redeemed | (7,968,872) | (8,306,716) |
Net increase (decrease) | (237,094) | 2,631,148 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 11.25 | $ 11.38 | $ 10.74 | $ 11.22 | $ 11.36 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss)B | .403 | .393 | .403 | .430 | .444 |
Net realized and unrealized gain (loss) | .601 | (.115) | .648 | (.460) | (.090) |
Total from investment operations | 1.004 | .278 | 1.051 | (.030) | .354 |
Distributions from net investment income | (.403) | (.394) | (.404) | (.430) | (.444) |
Distributions from net realized gain | (.051) | (.014) | (.007) | (.020) | (.050) |
Total distributions | (.454) | (.408) | (.411) | (.450) | (.494) |
Redemption fees added to paid in capital B, D | - | - | - | - | - |
Net asset value, end of period | $ 11.80 | $ 11.25 | $ 11.38 | $ 10.74 | $ 11.22 |
Total ReturnA | 9.09% | 2.42% | 9.89% | (.28)% | 3.19% |
Ratios to Average Net AssetsC |
|
|
|
|
|
Expenses before reductions | .49% | .50% | .51% | .50% | .50% |
Expenses net of fee waivers, if any | .49% | .50% | .51% | .50% | .50% |
Expenses net of all reductions | .49% | .49% | .51% | .47% | .44% |
Net investment income (loss) | 3.50% | 3.41% | 3.59% | 3.91% | 3.95% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 519,092 | $ 497,673 | $ 473,438 | $ 372,276 | $ 349,886 |
Portfolio turnover rate | 9% | 13% | 7% | 9% | 11% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2011
1. Organization.
Fidelity Minnesota Municipal Income Fund (the Fund) is a non-diversified fund of Fidelity Municipal Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund may be affected by economic and political developments in the state of Minnesota.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Annual Report
Notes to Financial Statements - continued
2. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For municipal securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially 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. As of December 31, 2011, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Annual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation and losses deferred due to future 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 IRS will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 29,122,565 |
Gross unrealized depreciation | (477,535) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 28,645,030 |
Tax Cost | $ 480,896,846 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed tax-exempt income | $ 54,940 |
Net unrealized appreciation (depreciation) | $ 28,645,030 |
Annual Report
Notes to Financial Statements - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
| December 31, 2011 | December 31, 2010 |
Tax-exempt Income | $ 17,313,267 | $ 17,490,902 |
Ordinary Income | - | 89,441 |
Long-term Capital Gains | 2,223,703 | 536,647 |
Total | $ 19,536,970 | $ 18,116,990 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $43,919,710 and $50,200,323, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (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 an annualized group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and servicing agent for the Fund. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, under which FIIOC performs the activities associated with the Fund's transfer agency, dividend disbursing and shareholder servicing functions. The Fund pays account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees were equivalent to an annual rate of .08% of average net assets.
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees - continued
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.
5. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,532 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1,693.
7. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Minnesota Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Minnesota Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Minnesota Municipal Income Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 13, 2012
Annual Report
Trustees and Officers
The Trustees 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 203 funds advised by FMR or an affiliate. Mr. Curvey oversees 429 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Trustees and Officers - continued
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Kenneth L. Wolfe serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Abigail P. Johnson (50) | |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (76) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of Fidelity Investments Money Management, Inc. (2009-present), Director of Fidelity Research & Analysis Co. (2009-present) and Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
Annual Report
Trustees and Officers - continued
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Albert R. Gamper, Jr. (69) | |
| Year of Election or Appointment: 2006 Mr. Gamper is Vice Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2011-present). Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (60) | |
| Year of Election or Appointment: 2010 Mr. Gartland is a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-present) and is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (64) | |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Mr. Edward C. Johnson 3d or Ms. Abigail P. Johnson. |
Michael E. Kenneally (57) | |
| Year of Election or Appointment: 2009 Previously, Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity Fixed Income and Asset Allocation Funds (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of the Credit Suisse Funds (U.S. mutual funds, 2004-2008) and certain other closed-end funds (2004-2005) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (71) | |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, since 1998). Prior to his retirement, Mr. Keyes served as Chairman and Chief Executive Officer of Johnson Controls (automotive, building, and energy, 1998-2002) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (65) | |
| 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. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (72) | |
| Year of Election or Appointment: 2005 Mr. Wolfe is Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2008-present). Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Annual Report
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
John R. Hebble (53) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as President (2011-present), Treasurer, and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present), Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Christopher P. Sullivan (57) | |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Bond Funds. Mr. Sullivan also serves as President of Fidelity's Bond Division (2009-present). Mr. Sullivan is Executive Vice President of Fidelity Investments Money Management, Inc. (2009-present), and a Director of Fidelity Management & Research (U.K.) Inc. (2010-present). Previously, Mr. Sullivan served as Managing Director, Co-Head of U.S. Fixed Income at Goldman Sachs Asset Management (2001-2009). |
Christine J. Thompson (53) | |
| Year of Election or Appointment: 2010 Vice President of Fidelity's Bond Funds. Ms. Thompson also serves as Chief Investment Officer of FMR's Bond Group (2010-present) and is an employee of Fidelity Investments. Previously, Ms. Thompson served as Director of Municipal Bond Portfolio Managers (2002-2010). |
Scott C. Goebel (43) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as Secretary of Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); Secretary and CLO of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); employed by FMR LLC or an affiliate (2001-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
David J. Carter (38) | |
| Year of Election or Appointment: 2010 Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Carter also serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2005-present). |
Holly C. Laurent (57) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent also serves as AML Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present) and is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (53) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (44) | |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker also serves as Chief Compliance Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present). Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (50) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009). |
Joseph F. Zambello (54) | |
| Year of Election or Appointment: 2011 Deputy Treasurer of the Fidelity funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Stephanie J. Dorsey (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey also serves as Assistant Treasurer of other Fidelity funds (2010-present) and is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Adrien E. Deberghes (44) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Deberghes also serves as Vice President and Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II (2011-present), Deputy Treasurer of other Fidelity funds (2008-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Kenneth B. Robins (42) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds (2008-present; 2010-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Deputy Treasurer of the Fidelity funds (2005-2008) and Treasurer and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2006-2008). |
Gary W. Ryan (53) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Jonathan Davis (43) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of the Fidelity funds. Mr. Davis is also Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Annual Report
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2011, $2,032,366, or, if subsequently determined to be different, the net capital gain of such year.
During fiscal year ended 2011, 100% of the fund's income dividends was free from federal income tax, and 1.54% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2012 of amounts for use in preparing 2011 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Minnesota Municipal Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Nominating and Governance, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2011 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has devoted increased resources to non-U.S. offices. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities which allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and enhancers. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools which permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading capabilities and resources which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers, with 35 new branches opening since 2010.
Annual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) rationalizing product lines through the mergers of six funds into other funds; (iii) continuing to migrate the Freedom Funds to dedicated lower cost underlying funds; (iv) obtaining shareholder approval to broaden the investment strategies for Fidelity Consumer Finance Portfolio, Fidelity Emerging Asia Fund, and Fidelity Environment and Alternative Energy Portfolio; (v) contractually agreeing to reduce the management fees and impose other expense limitations on Spartan 500 Index Fund and U.S. Bond Index Fund in connection with launching new institutional classes of these funds; (vi) changing the name, primary and supplemental benchmarks, and investment policies of Fidelity Global Strategies Fund to support the fund's flexible investment mandate and global orientation; and (vii) reducing the transfer agency account fee rates on certain accounts.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance, as well as the fund's relative investment performance measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2010, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Minnesota Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the fund was in the first quartile for all the periods shown. The Board also noted that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions to improve the fund's below-benchmark performance. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 8% means that 92% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Annual Report
Fidelity Minnesota Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2010.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of the fund's total expense ratio, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current and historical total expense ratios of the fund compared to competitive fund median expenses. The fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the fund's total expense ratio ranked below its competitive median for 2010.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Annual Report
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes; (vi) the reasons why certain expenses affect various funds and classes differently; (vii) Fidelity's transfer agent fees, expenses, and services and how the benefits of decreased costs and new efficiencies can be shared across all of the Fidelity funds; (viii) the reasons for and consequences of changes to certain product lines compared to competitors; (ix) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (x) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
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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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.
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 distributions, and the effects of any sales charges.
Annual Report
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Annual Report
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MNF-UANN-0212 1.787738.108
Fidelity®
Municipal Income
Fund
Annual Report
December 31, 2011
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance and strategy. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
The investment environment in 2011 was characterized by a number of headline events, most notably the early-August decision by Standard & Poor's to lower the long-term sovereign credit rating of the United States. The historic downgrade followed a stalemate in which Congress struggled to address the debt ceiling, heightening investor anxiety and within a matter of days wiping out a solid first-half advance that was largely driven by encouraging corporate earnings and economic activity. At the same time, investors were becoming increasingly concerned about the sovereign debt crisis in Europe and its potential to derail the U.S. economy, as well as persistently high unemployment. The combination of these factors set off a wave of unusually high volatility that lasted until late in the year, with wide weekly, and even daily, swings fueled largely by the latest developments coming out of the eurozone.
Against this backdrop, equities struggled to gain any significant momentum in the second half, and finished 2011 with only a modest gain, due in part to a strong October. High-grade bonds, meanwhile, benefited from periodic flights to quality and turned in a solid performance, paced by municipal issues and Treasuries.
Financial markets are difficult to predict, of course, but you can help put the odds in your favor by following these time-tested investment principles. One of the basic tenets is to invest according to your time horizon. For long-term investors, riding out the markets' inevitable ups and downs has proven much more effective than making decisions based on short-term developments. If your goal is approaching, you can also benefit from patience and restraint, rather than attempting to time the market.
Asset allocation is another principle to manage risk. As you spread your portfolio among the asset classes, be sure to consider your time horizon, risk tolerance and investment objectives. After deciding on a suitable allocation strategy, make sure your portfolio is adequately diversified, with exposure to stocks of small-, mid- and large-cap companies in a range of sectors, for example.
Lastly, investing a certain amount of money on a regular basis - a principle known as dollar-cost averaging - can help lower the average cost of your purchases, while also giving you the discipline to avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to learn more by visiting us on the Internet, dropping by one of our Investor Centers or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Abigail P. Johnson
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2011 | Past 1 | Past 5 | Past 10 |
Fidelity® Municipal Income Fund | 10.64% | 4.78% | 5.32% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Municipal Income Fund on December 31, 2001. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds generated a double-digit return for the 12 months ending December 31, 2011, ranking them as one of the year's best-performing asset classes. The Barclays Capital® Municipal Bond Index - a measure of more than 46,000 tax-exempt investment-grade fixed-rate bonds - advanced 10.70%, significantly outpacing the 7.84% gain of the taxable investment-grade debt market, as measured by the Barclays Capital® U.S. Aggregate Bond Index. In early 2011, muni prices fell due to inflation concern, uncertain tax policy, anticipated heavy supply and the lingering effects of late-2010 headlines forecasting an unprecedented wave of issuer defaults. But in February, munis began what amounted to a virtually uninterrupted rally, as demand surged, supply was muted, widespread defaults didn't materialize and the fiscal health of issuers improved. During the summer, a dimming U.S. economic outlook, unresolved debt woes in Europe and legislative wrangling over the U.S. debt ceiling fueled further demand for munis, as U.S. investors sought haven against global economic uncertainty. The muni sector lost modest ground in October, due in part to the ongoing challenging credit environment and various proposals out of Washington, D.C., that could potentially limit munis' tax-free benefits. Those losses were quickly erased and munis posted a strong gain when supply was quite limited through year-end.
Comments from Jamie Pagliocco, Lead Portfolio Manager of Fidelity® Municipal Income Fund: For the year, the fund returned 10.64%, while the Barclays Capital 3+ Year Municipal Bond Index rose 11.96%. The fund's yield-curve positioning, overweighting in higher-coupon callable bonds and underweighting in Puerto Rico bonds were the primary detractors from relative performance. In terms of its yield-curve positioning, modestly overweighting longer-term bonds and underweighting stronger-performing intermediate-maturity securities detracted. Higher-coupon callable bonds generally lagged non-callable bonds selling at face value, which enjoyed comparatively strong demand from individual investors. Puerto Rico bonds generally outpaced the market, as investors were drawn to the securities' relatively high yields and triple-tax-exempt status as a U.S. territory. In contrast, an overweighting in health care bonds - one of the market's best-performing sectors due to investors' surging appetite for higher-yielding, tax-free securities - was additive. A larger-than-benchmark stake in zero-coupon bonds also bolstered the fund's relative performance, as they generally enjoyed more price appreciation than comparable-maturity coupon-paying bonds as muni bond yields declined.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2011 to December 31, 2011).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Actual | .46% | $ 1,000.00 | $ 1,061.10 | $ 2.39 |
Hypothetical (5% return per year before expenses) |
| $ 1,000.00 | $ 1,022.89 | $ 2.35 |
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Five States as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
California | 16.9 | 16.2 |
Illinois | 13.1 | 12.3 |
Texas | 10.3 | 11.1 |
New York | 10.0 | 11.4 |
Florida | 8.4 | 8.6 |
Top Five Sectors as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
General Obligations | 34.6 | 35.7 |
Health Care | 17.4 | 17.6 |
Transportation | 9.9 | 10.1 |
Water & Sewer | 9.3 | 10.0 |
Special Tax | 9.2 | 9.1 |
Weighted Average Maturity as of December 31, 2011 | ||
|
| 6 months ago |
Years | 6.1 | 8.1 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2011 | ||
|
| 6 months ago |
Years | 7.9 | 8.2 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-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. Duration takes into account any call or put option embedded in the bonds. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2011 | As of June 30, 2011 | ||||||
![]() | AAA 7.3% |
| ![]() | AAA 9.8% |
| ||
![]() | AA,A 77.3% |
| ![]() | AA,A 79.2% |
| ||
![]() | BBB 9.0% |
| ![]() | BBB 7.8% |
| ||
![]() | BB and Below 0.8% |
| ![]() | BB and Below 0.3% |
| ||
![]() | Not Rated 2.0% |
| ![]() | Not Rated 2.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's ratings are not available, we have used S&P ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Investments December 31, 2011
Showing Percentage of Net Assets
Municipal Bonds - 96.4% | ||||
| Principal Amount (000s) | Value (000s) | ||
Alabama - 0.3% | ||||
Health Care Auth. for Baptist Health Bonds Series 2009 A, 6.125%, tender 5/15/12 (c) | $ 8,500 | $ 8,618 | ||
Jefferson County Ltd. Oblig. School Warrants Series 2004 A, 5.5% 1/1/22 | 5,500 | 4,975 | ||
Univ. of Alabama at Birmingham Hosp. Rev. Series 2008 A, 5.75% 9/1/22 | 3,000 | 3,375 | ||
| 16,968 | |||
Alaska - 0.1% | ||||
Alaska Student Ln. Corp. Ed. Ln. Rev.: | ||||
Series 2007 A2, 5% 6/1/12 (f) | 1,000 | 1,016 | ||
Series 2007 A3, 5% 6/1/12 (f) | 5,000 | 5,088 | ||
| 6,104 | |||
Arizona - 2.0% | ||||
Arizona Ctfs. of Prtn. Series 2010 A: | ||||
5% 10/1/18 (FSA Insured) | 2,670 | 3,108 | ||
5.25% 10/1/20 (FSA Insured) | 8,000 | 9,446 | ||
5.25% 10/1/26 (FSA Insured) | 2,570 | 2,874 | ||
5.25% 10/1/28 (FSA Insured) | 8,345 | 9,214 | ||
Arizona Health Facilities Auth. Rev. (Banner Health Sys. Proj.): | ||||
Series 2007 A, 5% 1/1/21 | 2,000 | 2,202 | ||
Series 2007 B, 1.059% 1/1/37 (c) | 3,000 | 1,990 | ||
Series 2008 D: | ||||
5.5% 1/1/38 | 12,000 | 12,598 | ||
6% 1/1/27 | 2,600 | 2,891 | ||
Arizona State Lottery Rev. Series 2010 A, 5% 7/1/21 (FSA Insured) | 5,800 | 6,803 | ||
Arizona State Univ. Ctfs. of Prtn. (Research Infrastructure Proj.) Series 2004: | ||||
5.25% 9/1/21 | 2,545 | 2,701 | ||
5.25% 9/1/22 | 1,000 | 1,056 | ||
Glendale Western Loop 101 Pub. Facilities Corp. Series 2008 A: | ||||
6.25% 7/1/38 | 6,900 | 7,090 | ||
7% 7/1/28 | 1,500 | 1,593 | ||
Goodyear McDowell Road Commercial Corridor Impt. District 5.25% 1/1/18 (AMBAC Insured) | 1,660 | 1,856 | ||
Marana Muni. Property Corp. Facilities Rev. Series 2008 A, 5% 7/1/21 | 1,580 | 1,781 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Arizona - continued | ||||
Maricopa County Indl. Dev. Auth. Hosp. Facilities Rev. (Samaritan Health Svcs. Proj.) Series 1990 A, 7% 12/1/16 (Escrowed to Maturity) | $ 2,000 | $ 2,363 | ||
Maricopa County Poll. Cont. Rev. (Southern California Edison Co. Proj.) Series 2000 A, 5% 6/1/35 | 3,600 | 3,771 | ||
McAllister Academic Village LLC Rev. (Arizona State Univ. Hassayampa Academic Village Proj.) Series 2008, 5.25% 7/1/39 | 4,800 | 4,976 | ||
Phoenix Civic Impt. Corp. District Rev. (Plaza Expansion Proj.) Series 2005 B, 0% 7/1/38 (a) | 12,000 | 12,353 | ||
Phoenix Civic Impt. Corp. Excise Tax Rev. Series 2011 C: | ||||
5% 7/1/22 | 1,000 | 1,218 | ||
5% 7/1/23 | 2,000 | 2,399 | ||
Pima County Swr. Sys. Rev. Series 2011 B, 5% 7/1/22 | 1,500 | 1,777 | ||
Salt Verde Finl. Corp. Sr. Gas Rev. Series 2007: | ||||
5.25% 12/1/21 | 3,500 | 3,590 | ||
5.5% 12/1/29 | 7,900 | 8,017 | ||
Scottsdale Indl. Dev. Auth. Hosp. Rev. (Scottsdale Healthcare Proj.) Series 2006 C, 5% 9/1/35 (FSA Insured) | 2,145 | 2,172 | ||
Univ. Med. Ctr. Corp. Hosp. Rev. Series 2011, 6% 7/1/39 | 3,000 | 3,178 | ||
Univ. of Arizona Univ. Revs. Series 2005 A: | ||||
5% 6/1/18 (AMBAC Insured) | 1,000 | 1,108 | ||
5% 6/1/31 (AMBAC Insured) | 2,025 | 2,111 | ||
| 116,236 | |||
California - 16.9% | ||||
ABAG Fin. Auth. for Nonprofit Corps. Rev. (Sharp HealthCare Proj.) Series 2009 B, 6.25% 8/1/39 | 2,800 | 3,068 | ||
ABC Unified School District Series 1997 C, 0% 8/1/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,925 | 1,541 | ||
Bay Area Toll Auth. San Francisco Bay Toll Bridge Rev. Series 2009 F1, 5.625% 4/1/44 | 6,350 | 6,963 | ||
Cabrillo Unified School District Series A, 0% 8/1/20 (AMBAC Insured) | 4,275 | 2,914 | ||
California Dept. of Wtr. Resources Central Valley Proj. Rev. Series AI: | ||||
5% 12/1/15 | 8,090 | 9,347 | ||
5% 12/1/16 | 2,195 | 2,605 | ||
5% 12/1/18 | 10,315 | 12,736 | ||
5% 12/1/19 | 1,000 | 1,250 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Econ. Recovery: | ||||
Series 2009 A, 5% 7/1/22 | $ 7,500 | $ 8,396 | ||
Series A, 5% 7/1/18 | 5,700 | 6,945 | ||
California Edl. Facilities Auth. Rev. (Loyola Marymount Univ. Proj.): | ||||
Series 2001 A, 0% 10/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,140 | 1,843 | ||
0% 10/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,050 | 1,682 | ||
0% 10/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,675 | 1,301 | ||
0% 10/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 3,004 | ||
California Gen. Oblig.: | ||||
Series 2007, 5.625% 5/1/20 | 210 | 211 | ||
5% 3/1/19 | 1,800 | 2,120 | ||
5% 8/1/19 | 16,310 | 18,549 | ||
5% 8/1/20 | 5,355 | 6,049 | ||
5% 10/1/22 | 2,300 | 2,653 | ||
5% 11/1/22 | 3,100 | 3,482 | ||
5% 12/1/22 | 6,800 | 7,768 | ||
5% 11/1/24 | 1,600 | 1,771 | ||
5% 3/1/26 | 5,100 | 5,413 | ||
5% 6/1/27 (AMBAC Insured) | 4,100 | 4,370 | ||
5% 9/1/27 | 10,500 | 11,143 | ||
5% 2/1/31 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,500 | 4,614 | ||
5% 9/1/31 | 22,500 | 23,234 | ||
5% 12/1/31 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,595 | 5,722 | ||
5% 9/1/32 | 24,995 | 25,746 | ||
5% 9/1/33 | 19,115 | 19,624 | ||
5% 9/1/35 | 4,050 | 4,136 | ||
5.125% 11/1/24 | 4,300 | 4,611 | ||
5.125% 2/1/26 | 2,500 | 2,636 | ||
5.25% 2/1/16 | 3,800 | 4,079 | ||
5.25% 2/1/19 | 5,620 | 6,009 | ||
5.25% 2/1/20 | 2,000 | 2,137 | ||
5.25% 9/1/23 | 24,300 | 28,586 | ||
5.25% 2/1/24 | 4,000 | 4,257 | ||
5.25% 2/1/27 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,700 | 3,815 | ||
5.25% 2/1/28 | 4,800 | 5,008 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Gen. Oblig.: - continued | ||||
5.25% 11/1/28 | $ 4,485 | $ 4,714 | ||
5.25% 2/1/33 | 16,300 | 16,720 | ||
5.25% 12/1/33 | 160 | 166 | ||
5.25% 3/1/38 | 9,000 | 9,344 | ||
5.25% 11/1/40 | 3,200 | 3,361 | ||
5.5% 8/1/27 | 14,700 | 16,578 | ||
5.5% 4/1/28 | 10 | 11 | ||
5.5% 8/1/29 | 9,850 | 10,864 | ||
5.5% 4/1/30 | 5 | 5 | ||
5.5% 11/1/33 | 39,350 | 41,302 | ||
5.5% 3/1/40 | 5,900 | 6,357 | ||
5.6% 3/1/36 | 2,550 | 2,798 | ||
5.75% 4/1/31 | 5,020 | 5,648 | ||
6% 3/1/33 | 23,800 | 27,640 | ||
6% 4/1/38 | 19,600 | 22,120 | ||
6% 11/1/39 | 10,020 | 11,390 | ||
6.5% 4/1/33 | 7,900 | 9,471 | ||
California Health Facilities Fing. Auth. Rev.: | ||||
(Adventist Health Sys. West Proj.) Series 2009 C, 5% 3/1/12 | 2,250 | 2,263 | ||
(Catholic Healthcare West Proj.): | ||||
Series 2008 H, 5.125% 7/1/22 | 2,765 | 2,951 | ||
Series 2008 L, 5.125% 7/1/22 | 4,000 | 4,269 | ||
Series 2009 E, 5.625% 7/1/25 | 10,000 | 10,934 | ||
(Cedars-Sinai Med. Ctr. Proj.) Series 2005, 5% 11/15/13 | 1,000 | 1,072 | ||
(St. Joseph Health Sys. Proj.) Series 2009 A, 5.75% 7/1/39 | 6,800 | 7,198 | ||
(Stanford Hosp. & Clinics Proj.) Series 2010 B, 5.75% 11/15/31 | 12,500 | 14,009 | ||
Bonds (Catholic Healthcare West Proj.) Series 2009 D, 5%, tender 7/1/14 (c) | 5,900 | 6,371 | ||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) Series 2005 A1, 4.7%, tender 4/1/12 (c)(f) | 1,000 | 1,008 | ||
California Pub. Works Board Lease Rev.: | ||||
(Butterfield State Office Complex Proj.) Series 2005 A, 5.25% 6/1/30 | 14,000 | 14,354 | ||
(Dept. of Health Svcs. Proj.) Series 2005 K, 5% 11/1/23 | 4,575 | 4,850 | ||
(Madera County, Valley State Prison for Women Proj.) Series 2005 H, 5% 6/1/16 | 6,000 | 6,661 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Pub. Works Board Lease Rev.: - continued | ||||
(Monterey Bay Campus Library Proj.) Series 2009 D, 6.25% 4/1/34 | $ 7,280 | $ 7,951 | ||
(Office of Emergency Svcs. Proj.) Series 2007 A: | ||||
5% 3/1/21 | 3,515 | 3,812 | ||
5% 3/1/22 | 1,695 | 1,828 | ||
(Porterville Developmental Ctr. Hsg. Expansion and Recreation Complex Proj.) Series 2009 C, 6.25% 4/1/34 | 2,825 | 3,076 | ||
(Univ. Proj.) Series 2011 B, 5.25% 10/1/26 | 2,515 | 2,730 | ||
(Various California State Univ. Projs.) Series 1993 A, 5.25% 12/1/13 | 1,830 | 1,836 | ||
(Various Cap. Projects) Series 2011 A: | ||||
5% 10/1/27 | 10,000 | 10,454 | ||
5.25% 10/1/26 | 5,000 | 5,391 | ||
(Various Judicial Council Projects) Series 2011 D: | ||||
5% 12/1/22 | 4,100 | 4,535 | ||
5% 12/1/23 | 7,355 | 8,027 | ||
Series 2005 B, 5.25% 11/1/24 (XL Cap. Assurance, Inc. Insured) | 1,575 | 1,696 | ||
Series 2005 H: | ||||
5% 6/1/17 | 5,000 | 5,447 | ||
5% 6/1/18 | 10,300 | 11,160 | ||
Series 2005 J, 5% 1/1/17 | 6,105 | 6,727 | ||
Series 2009 G1, 5.75% 10/1/30 | 2,500 | 2,712 | ||
Series 2009 I: | ||||
6.125% 11/1/29 | 1,600 | 1,826 | ||
6.375% 11/1/34 | 4,600 | 5,121 | ||
Series 2010 A, 5.75% 3/1/30 | 4,900 | 5,352 | ||
Series B, 5.25% 11/1/26 (XL Cap. Assurance, Inc. Insured) | 2,860 | 3,031 | ||
California State Univ. Rev. Series 2009 A, 6% 11/1/40 | 5,000 | 5,579 | ||
California Statewide Cmntys. Dev. Auth. Rev.: | ||||
(St. Joseph Health Sys. Proj.) Series 2007 C, 5.75% 7/1/47 (FGIC Insured) | 5,000 | 5,239 | ||
(State of California Proposition 1A Receivables Prog.) Series 2009, 5% 6/15/13 | 26,800 | 28,397 | ||
(Sutter Health Proj.) Series 2011 A, 6% 8/15/42 | 11,700 | 12,967 | ||
Clovis Pub. Fing. Auth. Wastewtr. Rev. Series 2005, 5% 8/1/35 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 9,380 | 9,425 | ||
Encinitas Union School District: | ||||
Series 1996, 0% 8/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,810 | 1,796 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Encinitas Union School District: - continued | ||||
0% 8/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 3,500 | $ 2,384 | ||
Fontana Unified School District Gen. Oblig. 5% 5/1/19 (Assured Guaranty Corp. Insured) | 1,300 | 1,530 | ||
Foothill-De Anza Cmnty. College District Series C, 5% 8/1/40 | 5,000 | 5,374 | ||
Foothill/Eastern Trans. Corridor Agcy. Toll Road Rev.: | ||||
Series 1995 A, 5% 1/1/35 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,070 | 4,414 | ||
Series 1999: | ||||
5% 1/15/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,800 | 2,802 | ||
5.75% 1/15/40 | 6,300 | 6,005 | ||
5.875% 1/15/27 | 2,500 | 2,517 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: | ||||
Series 2005 A: | ||||
5% 6/1/45 | 27,395 | 25,349 | ||
5% 6/1/45 | 5,305 | 4,909 | ||
Series 2007 A1, 5% 6/1/33 | 3,005 | 2,095 | ||
5% 6/1/45 (FSA Insured) | 445 | 431 | ||
Long Beach Unified School District Series A: | ||||
5.5% 8/1/28 | 3,810 | 4,395 | ||
5.5% 8/1/29 | 2,000 | 2,300 | ||
Los Angeles Cmnty. College District Series 2008 A, 6% 8/1/33 | 7,000 | 8,125 | ||
Los Angeles Cmnty. Redev. Agcy. Lease Rev. (Vermont Manchester Social Svcs. Proj.) Series 2005: | ||||
5% 9/1/18 (AMBAC Insured) | 1,000 | 1,057 | ||
5% 9/1/19 (AMBAC Insured) | 2,545 | 2,674 | ||
Los Angeles Dept. of Wtr. & Pwr. Rev.: | ||||
Series 2005 A1, 5% 7/1/35 | 4,000 | 4,128 | ||
Series A2, 5% 7/1/25 (FSA Insured) | 1,800 | 1,953 | ||
Los Angeles Wastewtr. Sys. Rev. Series 2009 A, 5.75% 6/1/34 | 9,715 | 11,008 | ||
Madera County Ctfs. of Prtn. (Children's Hosp. Central California Proj.) Series 2010, 5.375% 3/15/36 | 3,000 | 3,036 | ||
Monrovia Unified School District Series B, 0% 8/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,525 | 1,720 | ||
Monterey County Pub. Impt. Corp. Ctfs. of Prtn. Series 2007, 5% 8/1/19 (AMBAC Insured) | 2,320 | 2,561 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Newport Beach Rev.: | ||||
Bonds (Hoag Memorial Hosp. Presbyterian Proj.) Series 2009 E, 5%, tender 2/7/13 (c) | $ 5,100 | $ 5,335 | ||
Hoag Memorial Hosp. Presbyterian Proj.) Series 2011 A, 6% 12/1/40 | 2,000 | 2,258 | ||
North City West School Facilities Fing. Auth. Spl. Tax Series C, 5% 9/1/19 (AMBAC Insured) | 3,015 | 3,335 | ||
Oakland Gen. Oblig.: | ||||
Series 2009 B, 6% 1/15/34 | 2,500 | 2,760 | ||
Series 2012: | ||||
5% 1/15/26 (b) | 4,535 | 4,999 | ||
5% 1/15/28 (b) | 4,345 | 4,716 | ||
5% 1/15/29 (b) | 5,370 | 5,786 | ||
Oakland Unified School District Alameda County Series 2009 A, 6.5% 8/1/22 | 2,320 | 2,719 | ||
Oxnard Fing. Auth. Wastewtr. Rev. (Redwood Trunk Swr. and Headworks Proj.) Series 2004 A, 5% 6/1/29 (FGIC Insured) | 2,795 | 2,898 | ||
Placer County Wtr. Agcy. Rev. (Middle Fork Proj.) Series A, 3.75% 7/1/12 | 455 | 459 | ||
Port of Oakland Rev.: | ||||
Series 2007 B, 5% 11/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,000 | 7,774 | ||
Series C, 5% 11/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,650 | 7,469 | ||
Poway Unified School District: | ||||
(District #2007-1 School Facilities Proj.) Series 2008 A, 0% 8/1/32 | 4,900 | 1,508 | ||
0% 8/1/37 | 7,800 | 1,699 | ||
0% 8/1/38 | 6,200 | 1,269 | ||
Poway Unified School District Pub. Fing. Auth. Lease Rev. Bonds Series 2008 B, 0%, tender 12/1/14 (FSA Insured) (c) | 5,980 | 5,615 | ||
San Bernardino Cmnty. College District Series A: | ||||
6.25% 8/1/33 | 2,200 | 2,516 | ||
6.375% 8/1/26 | 4,080 | 4,872 | ||
San Bernardino County Ctfs. of Prtn. (Arrowhead Proj.) Series 2009 A, 5.25% 8/1/26 | 2,800 | 2,917 | ||
San Joaquin County Ctfs. of Prtn. (County Administration Bldg. Proj.) Series 2007, 5% 11/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,495 | 3,815 | ||
San Leandro Unified School District Series 2006 B, 6.25% 8/1/33 (FSA Insured) | 6,375 | 7,189 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
San Marcos Unified School District Series A, 5% 8/1/38 | $ 5,150 | $ 5,422 | ||
San Mateo County Cmnty. College District Series A, 0% 9/1/26 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,430 | 2,760 | ||
Santa Clara County Fing. Auth. Rev. (El Camino Hosp. Proj.) Series 2007 C, 5.75% 2/1/41 (AMBAC Insured) | 10,000 | 10,405 | ||
Santa Monica-Malibu Unified School District Series 1999, 0% 8/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,815 | 2,056 | ||
Sonoma County Jr. College District Rev. Series 2002 B, 5% 8/1/28 (FSA Insured) | 2,200 | 2,330 | ||
Sweetwater Union High School District Series 2008 A, 5.625% 8/1/47 (FSA Insured) | 45,225 | 48,351 | ||
Torrance Ctfs. of Prtn. (Refing. & Pub. Impt. Proj.) Series B, 5.25% 6/1/34 (AMBAC Insured) | 4,475 | 4,523 | ||
Union Elementary School District: | ||||
Series A, 0% 9/1/19 (FGIC Insured) | 1,750 | 1,342 | ||
Series B, 0% 9/1/22 (FGIC Insured) | 1,500 | 946 | ||
Univ. of California Revs.: | ||||
(UCLA Med. Ctr. Proj.): | ||||
Series A: | ||||
5.5% 5/15/15 (AMBAC Insured) | 1,110 | 1,135 | ||
5.5% 5/15/16 (AMBAC Insured) | 1,170 | 1,192 | ||
5.5% 5/15/17 (AMBAC Insured) | 1,235 | 1,257 | ||
5.5% 5/15/19 (AMBAC Insured) | 1,375 | 1,397 | ||
5.5% 5/15/22 (AMBAC Insured) | 370 | 375 | ||
5.5% 5/15/23 (AMBAC Insured) | 380 | 385 | ||
Series B: | ||||
5.5% 5/15/15 (AMBAC Insured) | 1,890 | 2,020 | ||
5.5% 5/15/17 (AMBAC Insured) | 2,545 | 2,673 | ||
Series 2009 O: | ||||
5.25% 5/15/39 | 2,400 | 2,615 | ||
5.75% 5/15/30 | 12,000 | 13,958 | ||
Val Verde Unified School District Ctfs. of Prtn. Series B, 5% 1/1/30 (FGIC Insured) | 1,495 | 1,437 | ||
Ventura County Cmnty. College District Series C, 5.5% 8/1/33 | 5,100 | 5,572 | ||
Washington Township Health Care District Rev.: | ||||
Series 2007 A: | ||||
5% 7/1/18 | 1,185 | 1,299 | ||
5% 7/1/27 | 1,840 | 1,864 | ||
Series 2009 A, 5.75% 7/1/24 | 1,705 | 1,858 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Washington Township Health Care District Rev.: - continued | ||||
Series 2010 A, 5.5% 7/1/38 | $ 3,815 | $ 3,867 | ||
West Contra Costa Unified School District (Election of 2005 Proj.) Series B, 5.625% 8/1/35 (Berkshire Hathaway Assurance Corp. Insured) | 3,850 | 4,151 | ||
| 999,747 | |||
Colorado - 1.5% | ||||
Aurora Hosp. Rev. (Children's Hosp. Assoc. Proj.) Series 2010 A, 5% 12/1/40 | 4,000 | 4,057 | ||
Colorado Ctfs. of Prtn. (UCDHSC Fitzsimons Academic Proj.) Series 2005 B: | ||||
5% 11/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,475 | 2,737 | ||
5.25% 11/1/24 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,600 | 2,771 | ||
Colorado Health Facilities Auth. Retirement Hsg. Rev. (Liberty Heights Proj.): | ||||
Series B, 0% 7/15/20 (Escrowed to Maturity) | 5,800 | 4,899 | ||
0% 7/15/22 (Escrowed to Maturity) | 15,700 | 12,087 | ||
Colorado Health Facilities Auth. Rev.: | ||||
(Parkview Episcopal Med. Ctr. Proj.) Series B: | ||||
5% 9/1/19 | 1,115 | 1,204 | ||
5% 9/1/22 | 1,500 | 1,569 | ||
(Volunteers of America Care Proj.) Series 2007 A, 5.3% 7/1/37 | 1,380 | 1,117 | ||
Colorado Wtr. Resources and Pwr. Dev. Auth. Wtr. Resources Rev. (Parker Wtr. and Sanitation District Proj.) Series 2004 D, 5.25% 9/1/43 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 33,385 | 33,530 | ||
Denver City & County Arpt. Rev.: | ||||
Series 2007 E, 5% 11/15/32 (AMBAC Insured) | 2,500 | 2,605 | ||
5% 11/15/15 (f) | 3,000 | 3,333 | ||
Denver Health & Hosp. Auth. Healthcare Rev. Series 2007 A, 5% 12/1/13 | 3,005 | 3,180 | ||
Douglas and Elbert Counties School District #RE1 Series 2004: | ||||
5.75% 12/15/20 (Pre-Refunded to 12/15/14 @ 100) | 1,500 | 1,721 | ||
5.75% 12/15/22 (Pre-Refunded to 12/15/14 @ 100) | 1,000 | 1,148 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Colorado - continued | ||||
E-470 Pub. Hwy. Auth. Rev.: | ||||
Series 1997 B, 0% 9/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 3,500 | $ 2,998 | ||
Series 2000 B, 0% 9/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 12,075 | 7,411 | ||
Series 2010 A, 0% 9/1/41 | 9,600 | 1,168 | ||
Series 2010 C, 5.375% 9/1/26 | 1,000 | 985 | ||
| 88,520 | |||
District Of Columbia - 1.3% | ||||
District of Columbia Gen. Oblig. Series B, 0% 6/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 8,800 | 8,753 | ||
District of Columbia Hosp. Rev. (Sibley Memorial Hosp. Proj.) Series 2009, 6.375% 10/1/39 | 8,140 | 8,796 | ||
District of Columbia Rev.: | ||||
(Medlantic/Helix Proj.) Series 1998 C, 5% 8/15/17 (FSA Insured) | 1,700 | 1,928 | ||
Series B, 4.75% 6/1/32 | 2,200 | 2,241 | ||
District of Columbia Wtr. & Swr. Auth. Pub. Util. Rev. Series 2007 A, 5.5% 10/1/41 | 23,535 | 25,592 | ||
Metropolitan Washington Arpts. Auth. Dulles Toll Road Rev. Series 2009 B: | ||||
0% 10/1/33 (Assured Guaranty Corp. Insured) | 15,000 | 4,487 | ||
0% 10/1/34 (Assured Guaranty Corp. Insured) | 15,000 | 4,151 | ||
0% 10/1/35 (Assured Guaranty Corp. Insured) | 33,975 | 8,704 | ||
0% 10/1/39 (Assured Guaranty Corp. Insured) | 5,030 | 1,002 | ||
Metropolitan Washington DC Arpts. Auth. Sys. Rev. Series 2010 A, 5% 10/1/39 | 3,200 | 3,388 | ||
Washington DC Metropolitan Transit Auth. Rev. Series 2009 A: | ||||
5.125% 7/1/32 | 1,000 | 1,088 | ||
5.25% 7/1/27 | 4,390 | 4,945 | ||
5.25% 7/1/28 | 3,000 | 3,358 | ||
| 78,433 | |||
Florida - 8.4% | ||||
Alachua County Health Facilities Auth. Health Facilities Rev. (Avmed/Santa Fe Health Care Sys. Proj.) Series 1993, 6.05% 11/15/16 (Escrowed to Maturity) | 4,700 | 5,366 | ||
Boynton Beach Util. Sys. Rev. Series 2002, 5.5% 11/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,300 | 3,785 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Brevard County School Board Ctfs. of Prtn. Series 2007 B: | ||||
5% 7/1/24 (AMBAC Insured) | $ 1,365 | $ 1,442 | ||
5% 7/1/25 (AMBAC Insured) | 3,540 | 3,716 | ||
Broward County Arpt. Sys. Rev. Series 2001 I, 5.75% 10/1/12 (AMBAC Insured) (f) | 1,210 | 1,225 | ||
Broward County Gen. Oblig. (Parks & Land Preservation Proj.) Series 2005: | ||||
5% 1/1/24 | 1,000 | 1,069 | ||
5% 1/1/25 | 1,000 | 1,065 | ||
Broward County School Board Ctfs. of Prtn.: | ||||
Series 2003 A: | ||||
5.25% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,060 | 6,437 | ||
5.25% 7/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 3,164 | ||
Series 2007 A: | ||||
5% 7/1/17 (FGIC Insured) | 3,660 | 4,181 | ||
5% 7/1/19 (FGIC Insured) | 3,700 | 4,152 | ||
Broward County Wtr. & Swr. Util. Rev. Series 2009 A, 5.25% 10/1/34 | 8,500 | 9,253 | ||
Cap. Projs. Fin. Auth. Student Hsg. Rev. Series 2000 F1: | ||||
5.5% 10/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,460 | 1,457 | ||
5.5% 10/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,265 | 1,257 | ||
Citizens Property Ins. Corp.: | ||||
Series 2010 A1: | ||||
5% 6/1/15 (FSA Insured) | 5,000 | 5,440 | ||
5% 6/1/16 (FSA Insured) | 7,500 | 8,274 | ||
Series 2011 A1, 5% 6/1/20 | 3,000 | 3,314 | ||
Collier County Indl. Dev. Auth. Healthcare Facilities Rev. (NCH Healthcare Sys. Proj.) Series 2011, 6.25% 10/1/39 | 24,285 | 25,805 | ||
Emerald Coast Utils. Auth. Rev.: | ||||
5.25% 1/1/26 (FGIC Insured) | 1,000 | 1,060 | ||
5.25% 1/1/36 (FGIC Insured) | 1,310 | 1,347 | ||
Escambia City Health Facilities Auth. Rev. (Ascension Health Cr. Group Proj.) Series 2002 C, 5.75% 11/15/32 | 6,900 | 7,155 | ||
Escambia County Utils. Auth. Util. Sys. Rev. Series 1992 B, 6.25% 1/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,050 | 3,287 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Florida Board of Ed.: | ||||
Series 2001 F, 5% 6/1/32 | $ 5,040 | $ 5,118 | ||
Series 2003 J, 5% 6/1/31 | 2,500 | 2,572 | ||
Florida Board of Ed. Lottery Rev.: | ||||
Series 2002 A, 5.375% 7/1/17 (Pre-Refunded to 7/1/12 @ 101) | 1,000 | 1,034 | ||
Series 2011 A, 5% 7/1/20 | 12,400 | 15,107 | ||
Florida Board of Ed. Pub. Ed. Cap. Outlay: | ||||
Series 2004 A, 5% 6/1/31 | 1,240 | 1,313 | ||
Series 2006 E, 5% 6/1/35 | 3,200 | 3,453 | ||
Series A: | ||||
5% 6/1/32 | 695 | 715 | ||
5% 6/1/32 (Pre-Refunded to 6/1/12 @ 101) | 405 | 417 | ||
5.5% 6/1/38 | 2,000 | 2,234 | ||
Florida Dept. of Children and Family Svcs. Ctfs. of Prtn. (South Florida Evaluation Treatment Ctr. Proj.): | ||||
5% 10/1/16 | 2,025 | 2,214 | ||
5% 10/1/17 | 2,130 | 2,325 | ||
Florida Dept. of Envir. Protection Rev. Series 2002 A, 5.375% 7/1/17 (Pre-Refunded to 7/1/12 @ 101) | 6,000 | 6,211 | ||
Florida Dept. of Trans. Rev. Series 2005 A: | ||||
5% 7/1/17 | 3,360 | 3,730 | ||
5% 7/1/18 | 3,320 | 3,656 | ||
Florida Gen. Oblig.: | ||||
(Dept. of Trans. Right-of-Way and Bridge Construction Proj.) Series 2003 A, 5% 7/1/33 | 395 | 406 | ||
Series 2008 A, 5.25% 7/1/37 | 3,000 | 3,230 | ||
Florida Muni. Pwr. Agcy. Rev. Series A, 6.25% 10/1/31 | 3,000 | 3,420 | ||
Florida Wtr. Poll. Cont. Fing. Corp. Rev. Series 2003, 5.25% 1/15/20 | 1,950 | 2,144 | ||
Gulf Breeze Util. Sys. Rev. Series 2004, 5% 10/1/16 (AMBAC Insured) | 1,010 | 1,092 | ||
Halifax Hosp. Med. Ctr. Rev.: | ||||
Series 2006 A: | ||||
5% 6/1/38 | 2,995 | 2,819 | ||
5.25% 6/1/19 | 2,375 | 2,487 | ||
Series 2006 B1, 5.5% 6/1/38 (FSA Insured) | 3,575 | 3,652 | ||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt, Inc. Prog.): | ||||
Series 2005 A: | ||||
5% 11/15/15 | 1,000 | 1,119 | ||
5% 11/15/17 | 1,200 | 1,331 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt, Inc. Prog.): - continued | ||||
Series 2005 A: | ||||
5% 11/15/22 | $ 1,000 | $ 1,075 | ||
Series 2005 B: | ||||
5% 11/15/15 | 875 | 979 | ||
5% 11/15/15 (Escrowed to Maturity) | 125 | 144 | ||
5% 11/15/16 | 1,040 | 1,165 | ||
5% 11/15/16 (Pre-Refunded to 11/15/15 @ 100) | 150 | 173 | ||
5% 11/15/30 | 3,565 | 3,634 | ||
5% 11/15/30 (Pre-Refunded to 11/15/15 @ 100) | 485 | 558 | ||
Series 2006 G: | ||||
5% 11/15/14 | 1,285 | 1,419 | ||
5% 11/15/14 (Escrowed to Maturity) | 45 | 50 | ||
5% 11/15/15 | 965 | 1,080 | ||
5% 11/15/15 (Escrowed to Maturity) | 35 | 40 | ||
5% 11/15/16 | 1,020 | 1,163 | ||
5% 11/15/16 (Escrowed to Maturity) | 30 | 36 | ||
5.125% 11/15/17 | 2,750 | 3,127 | ||
5.125% 11/15/17 (Pre-Refunded to 11/15/16 @ 100) | 95 | 113 | ||
5.125% 11/15/18 | 965 | 1,089 | ||
5.125% 11/15/18 (Pre-Refunded to 11/15/16 @ 100) | 35 | 42 | ||
5.125% 11/15/19 | 1,930 | 2,144 | ||
5.125% 11/15/19 (Pre-Refunded to 11/15/16 @ 100) | 70 | 83 | ||
Series 2008 B, 6% 11/15/37 | 11,000 | 11,915 | ||
Hillsborough County Indl. Dev.: | ||||
(H Lee Moffitt Cancer Ctr. Proj.) Series A: | ||||
5% 7/1/17 | 1,930 | 2,129 | ||
5% 7/1/18 | 2,125 | 2,345 | ||
(Tampa Gen. Hosp. Proj.) Series 2006, 5.25% 10/1/41 | 3,730 | 3,691 | ||
Hillsborough County Indl. Dev. Auth. Indl. Dev. Rev.: | ||||
(Health Facilities/Univ. Cmnty. Hosp. Proj.) Series 2008 B, 8% 8/15/32 (Pre-Refunded to 8/15/19 @ 101) | 4,900 | 7,077 | ||
(Univ. Cmnty. Hosp. Proj.) Series 2008 A, 5.625% 8/15/29 (Pre-Refunded to 8/15/18 @ 100) | 2,270 | 2,913 | ||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev.: | ||||
(Tampa Elec. Co. Proj.) 5.1% 10/1/13 | 3,005 | 3,082 | ||
Bonds (Tampa Elec. Co. Proj.) Series 2006, 5%, tender 3/15/12 (AMBAC Insured) (c) | 4,500 | 4,540 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Jacksonville Elec. Auth. Elec. Sys. Rev.: | ||||
(Third Installment Proj.) Series 73, 6.8% 7/1/12 (Escrowed to Maturity) | $ 440 | $ 454 | ||
Series 2006 A, 5% 10/1/41 (FSA Insured) | 18,800 | 19,342 | ||
Series 2009 B, 5% 10/1/18 | 7,500 | 8,033 | ||
Series Three 2010 D, 5% 10/1/38 | 8,100 | 8,675 | ||
Jacksonville Sales Tax Rev. Series 2003, 5.25% 10/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,500 | 1,579 | ||
Lee County Arpt. Rev. Series 2011 A, 5.375% 10/1/32 (f) | 5,260 | 5,397 | ||
Marco Island Util. Sys. Rev. 5% 10/1/33 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,025 | 5,107 | ||
Melbourne Wtr. & Swr. Rev. 5% 10/1/34 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 5,088 | ||
Miami Beach Health Facilities Auth. Hosp. Rev. (Mount Sinai Med. Ctr. of Florida Proj.) Series A, 6.8% 11/15/31 | 2,545 | 2,573 | ||
Miami Beach Stormwater Rev. 5.375% 9/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000 | 1,001 | ||
Miami Beach Wtr. & Swr. Rev. 5.5% 9/1/27 (AMBAC Insured) | 6,000 | 6,042 | ||
Miami-Dade County Aviation Rev.: | ||||
Series 2010 A, 5.375% 10/1/41 | 5,800 | 6,073 | ||
Series 2010 A1, 5.5% 10/1/30 | 3,000 | 3,262 | ||
Series 2010 B, 5% 10/1/35 (FSA Insured) | 13,610 | 14,076 | ||
Miami-Dade County Expressway Auth.: | ||||
Series 2010 A, 5% 7/1/40 | 9,500 | 9,674 | ||
Series B, 5.25% 7/1/25 (FGIC Insured) | 5,000 | 5,203 | ||
Miami-Dade County Gen. Oblig. (Bldg. Better Cmntys. Prog.) 5% 7/1/35 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,565 | 4,669 | ||
Miami-Dade County School Board Ctfs. of Prtn.: | ||||
Series 2008 A: | ||||
5% 8/1/17 (AMBAC Insured) | 3,500 | 3,923 | ||
5% 8/1/18 (AMBAC Insured) | 4,000 | 4,502 | ||
5% 8/1/20 (AMBAC Insured) | 2,500 | 2,828 | ||
5% 8/1/21 (AMBAC Insured) | 5,095 | 5,718 | ||
5% 8/1/22 (AMBAC Insured) | 3,325 | 3,661 | ||
Series 2011 B, 5.625% 5/1/31 | 6,600 | 7,134 | ||
Ocala Util. Sys. Rev. Series B, 5.25% 10/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000 | 1,070 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Orange County Edl. Facilities Auth. Ed. Rev. (Rollins College Proj.): | ||||
5.25% 12/1/32 (AMBAC Insured) | $ 1,350 | $ 1,414 | ||
5.25% 12/1/37 (AMBAC Insured) | 1,365 | 1,415 | ||
Orange County Health Facilities Auth. (Orlando Health, Inc.) Series 2009, 5.125% 10/1/26 | 5,000 | 5,235 | ||
Orange County Health Facilities Auth. Rev. (Orlando Reg'l. Health Care Sys. Proj.) Series 1996 A, 6.25% 10/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,500 | 5,213 | ||
Orange County Sales Tax Rev. Series 2002 B, 5% 1/1/25 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,800 | 2,876 | ||
Orange County School Board Ctfs. of Prtn.: | ||||
Series 1997 A, 0% 8/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,275 | 2,222 | ||
Series A, 5% 8/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,940 | 3,282 | ||
Orlando Utils. Commission Util. Sys. Rev. Series 2009 B, 5% 10/1/33 | 3,700 | 3,983 | ||
Osceola County Infrastructure Sales Surtax Rev. 5.375% 10/1/17 (Pre-Refunded to 10/1/12 @ 100) | 1,000 | 1,038 | ||
Osceola County Tourist Dev. Tax Rev. Series A, 5.5% 10/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,190 | 1,222 | ||
Palm Beach County School Board Ctfs. of Prtn. Series D, 5.25% 8/1/17 (FSA Insured) | 2,025 | 2,078 | ||
Palm Beach County Solid Waste Auth. Rev. Series 2011, 5% 10/1/24 | 11,100 | 12,780 | ||
Pasco County School Board Ctfs. of Prtn. Series A, 5% 8/1/30 (AMBAC Insured) | 4,000 | 4,061 | ||
Peace River/Manasota Reg'l. Wtr. Supply Auth. Rev. Series A: | ||||
5% 10/1/30 (FSA Insured) | 3,105 | 3,237 | ||
5% 10/1/35 (FSA Insured) | 5,000 | 5,163 | ||
Plant City Util. Sys. Rev. 6% 10/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,810 | 1,934 | ||
Polk County Pub. Facilities Rev. 5% 12/1/33 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000 | 2,058 | ||
Port Orange Gen. Oblig. 5% 4/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,015 | 2,149 | ||
Reedy Creek Impt. District Utils. Rev. Series 1, 5.25% 10/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,700 | 3,897 | ||
Seminole County School Board Ctfs. of Prtn.: | ||||
Series 2005 A, 5% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,645 | 1,816 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Seminole County School Board Ctfs. of Prtn.: - continued | ||||
Series A, 5% 7/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,745 | $ 1,885 | ||
South Lake County Hosp. District (South Lake Hosp., Inc.): | ||||
Series 2009 A, 6.25% 4/1/39 | 3,300 | 3,434 | ||
Series 2010: | ||||
5% 10/1/25 | 4,140 | 4,278 | ||
5.25% 10/1/34 | 3,500 | 3,537 | ||
St. Johns County School Board 5.25% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,400 | 1,559 | ||
St. Petersburg Pub. Util. Rev. Series 2009 A, 5.5% 10/1/37 | 7,000 | 7,881 | ||
Sumter County School District Rev. (Multi-District Ln. Prog.) 7.15% 11/1/15 (Escrowed to Maturity) | 985 | 1,213 | ||
Tallahassee Energy Sys. Rev. 5% 10/1/35 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,065 | 3,149 | ||
Tampa Bay Wtr. Reg'l. Wtr. Supply Auth. Util. Sys. Rev. Series 2011 B, 5% 10/1/18 | 6,900 | 8,393 | ||
Tampa Health Sys. Rev. (Baycare Health Sys. Proj.) Series 2010, 5% 11/15/23 | 8,080 | 8,964 | ||
Tampa Rev. (Catholic Health East Proj.) Series A1, 5.5% 11/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,045 | 1,088 | ||
Univ. of Central Florida Athletics Assoc., Inc. Ctfs. of Prtn. Series A: | ||||
5% 10/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,805 | 1,868 | ||
5% 10/1/35 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,275 | 3,010 | ||
5.25% 10/1/34 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000 | 1,925 | ||
USF Fing. Corp. Ctfs. of Prtn. (Master Lease Prog.) Series A: | ||||
5.25% 7/1/15 (AMBAC Insured) | 2,690 | 2,958 | ||
5.25% 7/1/16 (AMBAC Insured) | 2,830 | 3,116 | ||
Volusia County Edl. Facilities Auth. Rev. 5% 10/15/12 (Radian Asset Assurance, Inc. Insured) | 1,260 | 1,293 | ||
Walton County School Board Ctfs. of Prtn. 5.25% 7/1/18 (FSA Insured) | 1,865 | 2,201 | ||
| 494,765 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Georgia - 3.2% | ||||
Atlanta Tax Allocation (Atlantic Station Proj.) Series 2007, 5.25% 12/1/20 (Assured Guaranty Corp. Insured) | $ 2,000 | $ 2,209 | ||
Atlanta Wtr. & Wastewtr. Rev.: | ||||
Series 2004, 5% 11/1/43 | 36,165 | 36,993 | ||
Series 2009 A: | ||||
6% 11/1/25 | 9,785 | 11,593 | ||
6.25% 11/1/39 | 10,800 | 12,309 | ||
Augusta Wtr. & Swr. Rev. Series 2004, 5.25% 10/1/39 (FSA Insured) | 11,600 | 12,082 | ||
Colquitt County Dev. Auth. Rev. Series C, 0% 12/1/21 (Escrowed to Maturity) | 10,200 | 8,172 | ||
DeKalb County Wtr. & Swr. Rev. Series 2011 A: | ||||
5.25% 10/1/36 | 3,000 | 3,222 | ||
5.25% 10/1/41 | 5,600 | 5,992 | ||
Fulton County Wtr. & Swr. Rev. Series 2011: | ||||
5% 1/1/23 | 1,500 | 1,799 | ||
5% 1/1/24 | 6,500 | 7,652 | ||
Georgia Gen. Oblig.: | ||||
Series 2007 E, 5% 8/1/22 | 575 | 678 | ||
Series 2009 I, 5% 7/1/20 | 10,250 | 13,053 | ||
Series 2011 E2, 5% 9/1/20 | 10,000 | 12,747 | ||
Houston County Hosp. Auth. Rev. (Houston Healthcare Proj.) 5.25% 10/1/19 | 1,450 | 1,604 | ||
Main Street Natural Gas, Inc. Georgia Gas Proj. Rev. Series A, 5.25% 9/15/19 | 1,915 | 1,950 | ||
Metropolitan Atlanta Rapid Transit Auth. Sales Tax Rev. Third Series 2009 A, 5.25% 7/1/36 | 8,500 | 9,205 | ||
Richmond County Dev. Auth. Rev. (Southern Care Corp. Facility Proj.): | ||||
Series A, 0% 12/1/21 (Escrowed to Maturity) | 5,615 | 4,499 | ||
Series C, 0% 12/1/21 (Escrowed to Maturity) | 19,400 | 15,543 | ||
Richmond County Hosp. Auth. (Univ. Health Svcs., Inc. Proj.) Series 2009, 5.5% 1/1/36 | 13,550 | 14,018 | ||
Savannah Econ. Dev. Auth. Rev. (Southern Care Corp. Proj.) Series C, 0% 12/1/21 (Escrowed to Maturity) | 18,045 | 14,458 | ||
Valdosta & Lowndes County Hosp. (South Georgia Med. Ctr. Proj.) 5% 10/1/20 | 1,570 | 1,675 | ||
| 191,453 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Hawaii - 0.1% | ||||
Honolulu City & County Board of Wtr. Supply Wtr. Sys. Rev. Series B: | ||||
5% 7/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | $ 1,690 | $ 1,722 | ||
5% 7/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 1,000 | 1,054 | ||
5% 7/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 1,140 | 1,234 | ||
5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 1,430 | 1,584 | ||
5.25% 7/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 3,205 | 3,657 | ||
| 9,251 | |||
Idaho - 0.2% | ||||
Idaho Health Facilities Auth. Rev. (St. Luke's Health Sys. Proj.) Series 2008 A: | ||||
6.5% 11/1/28 | 4,340 | 4,788 | ||
6.75% 11/1/37 | 4,300 | 4,796 | ||
| 9,584 | |||
Illinois - 13.1% | ||||
Boone & Winnebago County Cmnty. Unit School District 200: | ||||
0% 1/1/21 (FGIC Insured) | 1,810 | 1,252 | ||
0% 1/1/22 (FGIC Insured) | 1,950 | 1,270 | ||
Chicago Board of Ed.: | ||||
Series 1999 A, 0% 12/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,200 | 2,811 | ||
Series 2011A, 5.5% 12/1/39 | 7,900 | 8,625 | ||
Chicago Gen. Oblig.: | ||||
(City Colleges Proj.): | ||||
0% 1/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 17,000 | 16,363 | ||
0% 1/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 20,000 | 18,728 | ||
(Neighborhoods Alive 21 Prog.): | ||||
Series 2003, 5% 1/1/33 (AMBAC Insured) | 2,100 | 2,106 | ||
5% 1/1/28 (Pre-Refunded to 1/1/14 @ 100) | 2,000 | 2,175 | ||
Series 2001 A, 5.25% 1/1/33 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,150 | 2,150 | ||
Series 2003 A, 5.25% 1/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 740 | 761 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Chicago Gen. Oblig.: - continued | ||||
Series 2003 C, 5% 1/1/35 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,445 | $ 1,471 | ||
Series 2004 A: | ||||
5% 1/1/34 (FSA Insured) | 12,510 | 12,713 | ||
5.25% 1/1/29 (FSA Insured) | 435 | 448 | ||
Series 2011 A, 5% 1/1/40 | 5,560 | 5,673 | ||
Series A: | ||||
5% 1/1/42 (AMBAC Insured) | 40 | 40 | ||
5.5% 1/1/38 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,620 | 5,620 | ||
Chicago Midway Arpt. Rev. Series B: | ||||
5.25% 1/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 2,910 | 2,918 | ||
5.25% 1/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 3,060 | 3,067 | ||
Chicago Motor Fuel Tax Rev. Series A: | ||||
5% 1/1/33 (AMBAC Insured) | 3,810 | 3,837 | ||
5.25% 1/1/19 (AMBAC Insured) | 1,780 | 1,875 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series 2001 B, 5.75% 1/1/30 (AMBAC Insured) | 13,420 | 13,430 | ||
Series 2008 A, 5% 1/1/16 (FSA Insured) | 6,800 | 7,545 | ||
Series 2011 C, 6.5% 1/1/41 | 19,400 | 22,617 | ||
Series A, 5.5% 1/1/16 (AMBAC Insured) (f) | 3,650 | 3,660 | ||
Chicago Park District Gen. Oblig.: | ||||
Series 2010 C, 5.25% 1/1/40 | 7,700 | 8,342 | ||
Series A: | ||||
5.25% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,690 | 4,990 | ||
5.25% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 3,184 | ||
5.25% 1/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,195 | 2,329 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | ||||
(Fed. Transit Administration Section 5307 Proj.): | ||||
Series 2006 A, 5% 6/1/21 | 2,600 | 2,822 | ||
Series 2008 A: | ||||
5.25% 6/1/23 (Assured Guaranty Corp. Insured) | 2,425 | 2,668 | ||
5.25% 6/1/25 (Assured Guaranty Corp. Insured) | 3,495 | 3,770 | ||
5% 6/1/20 (AMBAC Insured) | 5,610 | 6,132 | ||
5% 6/1/20 (Pre-Refunded to 12/1/16 @ 100) | 1,390 | 1,664 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Chicago Wtr. Rev. Series 2000, 0% 11/1/16 (AMBAC Insured) | $ 7,555 | $ 6,604 | ||
Cicero Gen. Oblig. 5.25% 12/1/26 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,010 | 3,058 | ||
Cook County Gen. Oblig.: | ||||
Series 2002 C, 5% 11/15/25 | 8,400 | 8,574 | ||
Series 2004 B: | ||||
5.25% 11/15/26 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,700 | 2,870 | ||
5.25% 11/15/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,400 | 1,478 | ||
Series 2010 A, 5.25% 11/15/33 | 19,775 | 21,011 | ||
Series B, 5% 11/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,600 | 2,981 | ||
DuPage County Forest Preserve District Rev. Series 2000, 0% 11/1/17 | 6,665 | 5,984 | ||
Evanston Gen. Oblig. Series C: | ||||
5.25% 1/1/16 | 185 | 186 | ||
5.25% 1/1/22 | 380 | 381 | ||
Franklin Park Village Cook County Gen. Oblig. Series B, 5% 7/1/18 (AMBAC Insured) | 1,450 | 1,469 | ||
Grundy, Kendall & Will County Cmnty. High School District #111 Gen. Oblig. Series 2006 A: | ||||
5.25% 5/1/25 | 5,000 | 5,350 | ||
5.5% 5/1/23 | 3,000 | 3,289 | ||
Illinois Dedicated Tax Rev. Series B, 0% 12/15/18 (AMBAC Insured) | 4,500 | 3,515 | ||
Illinois Dev. Fin. Auth. Retirement Hsg. Regency Park Rev. 0% 7/15/23 (Escrowed to Maturity) | 29,680 | 21,713 | ||
Illinois Dev. Fin. Auth. Rev.: | ||||
(DePaul Univ. Proj.) Series 2004 C, 5.625% 10/1/17 | 2,800 | 3,084 | ||
(Revolving Fund-Master Trust Prog.): | ||||
5.5% 9/1/18 | 5,365 | 5,519 | ||
5.5% 9/1/19 | 4,405 | 4,528 | ||
Illinois Edl. Facilities Auth. Revs. (Univ. of Chicago Proj.) Series 2005 A, 5.25% 7/1/41 | 55 | 55 | ||
Illinois Fin. Auth. Gas Supply Rev. Bonds (Peoples Gas Lt. and Coke Co. Proj.) Series 2005 A, 4.3%, tender 6/1/16 (AMBAC Insured) (c) | 3,860 | 4,136 | ||
Illinois Fin. Auth. Rev.: | ||||
(Advocate Health Care Proj.) Series 2010 A, 5.5% 4/1/44 | 3,000 | 3,164 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Fin. Auth. Rev.: - continued | ||||
(Advocate Heath Care Proj.) Series 2008 D, 6.5% 11/1/38 | $ 4,300 | $ 4,830 | ||
(Alexian Brothers Health Sys. Proj.): | ||||
Series 2008: | ||||
5% 1/1/20 (FSA Insured) | 7,550 | 8,546 | ||
5.5% 2/15/38 | 7,000 | 7,189 | ||
Series 2010: | ||||
5.125% 2/15/25 | 4,000 | 4,132 | ||
5.25% 2/15/30 | 5,500 | 5,624 | ||
(Central DuPage Health Proj.) Series 2009 B, 5.375% 11/1/39 | 6,500 | 6,858 | ||
(Children's Memorial Hosp. Proj.) Series 2008 A: | ||||
5.25% 8/15/33 (Assured Guaranty Corp. Insured) | 7,800 | 8,204 | ||
5.25% 8/15/47 (Assured Guaranty Corp. Insured) | 2,000 | 2,049 | ||
(Edward Hosp. Obligated Group Proj.) Series 2008 A: | ||||
5.5% 2/1/40 (AMBAC Insured) | 2,850 | 2,924 | ||
6% 2/1/28 (AMBAC Insured) | 1,000 | 1,074 | ||
(Newman Foundation Proj.): | ||||
5% 2/1/32 (Radian Asset Assurance, Inc. Insured) | 1,300 | 1,100 | ||
5% 2/1/37 (Radian Asset Assurance, Inc. Insured) | 10,000 | 8,188 | ||
(Northwest Cmnty. Hosp. Proj.) Series 2008 A, 5.5% 7/1/38 | 12,580 | 12,904 | ||
(Northwestern Memorial Hosp. Proj.) Series 2009 A, 6% 8/15/39 | 4,000 | 4,429 | ||
(Palos Cmnty. Hosp. Proj.) Series 2010 C, 5.375% 5/15/25 | 25,230 | 27,393 | ||
(Provena Health Proj.) Series 2010 A, 6% 5/1/28 | 13,500 | 13,936 | ||
(Rush Univ. Med. Ctr. Proj.): | ||||
Series 2009 C, 6.625% 11/1/39 | 8,200 | 8,945 | ||
Series 2009 D, 6.625% 11/1/39 | 8,000 | 8,727 | ||
(Sherman Health Systems Proj.) Series 2007 A, 5.5% 8/1/37 | 14,000 | 13,389 | ||
(Southern Illinois Healthcare Enterprises, Inc. Proj.) Series 2005, 5.25% 3/1/30 | 5,900 | 6,265 | ||
(The Carle Foundation Proj.) Series 2009 A, 5.5% 2/15/16 (Assured Guaranty Corp. Insured) | 5,385 | 5,966 | ||
(The Univ. of Chicago Med. Ctr. Proj.) Series 2009 B, 5% 8/15/23 | 5,550 | 6,332 | ||
Series 2008 A, 5.625% 1/1/37 | 16,300 | 16,461 | ||
Series 2009: | ||||
6.875% 8/15/38 | 430 | 452 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Fin. Auth. Rev.: - continued | ||||
Series 2009: | ||||
7% 8/15/44 | $ 1,560 | $ 1,640 | ||
5.25% 5/1/25 | 7,000 | 7,723 | ||
Illinois Gen. Oblig.: | ||||
First Series: | ||||
5.25% 12/1/20 | 2,000 | 2,060 | ||
5.5% 8/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 13,000 | 13,284 | ||
5.5% 8/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,500 | 7,673 | ||
5.5% 8/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 5,117 | ||
Series 2002, 5.25% 12/1/17 (FSA Insured) | 2,260 | 2,336 | ||
Series 2006: | ||||
5% 1/1/19 | 4,200 | 4,794 | ||
5.5% 1/1/31 | 3,000 | 3,303 | ||
Series 2010, 5% 1/1/23 (FSA Insured) | 6,600 | 7,132 | ||
Illinois Health Facilities Auth. Rev.: | ||||
(Delnor-Cmnty. Hosp. Proj.) Series 2002 D, 5.25% 5/15/32 (FSA Insured) | 3,000 | 3,070 | ||
(Lake Forest Hosp. Proj.): | ||||
Series A, 6.25% 7/1/22 | 4,200 | 4,310 | ||
6% 7/1/33 | 3,775 | 3,944 | ||
(Lutheran Gen. Health Care Sys. Proj.) Series C: | ||||
6% 4/1/18 | 3,000 | 3,483 | ||
7% 4/1/14 | 1,415 | 1,498 | ||
(Sherman Hosp. Proj.) 5.25% 8/1/27 (AMBAC Insured) | 3,000 | 3,000 | ||
Illinois Reg'l. Trans. Auth. Series A, 8% 6/1/17 (AMBAC Insured) | 4,500 | 5,682 | ||
Illinois Sales Tax Rev. Series 2010, 5% 6/15/17 | 13,500 | 15,985 | ||
Kane & DeKalb Counties Cmnty. Unit School District #302 5.5% 2/1/25 (FSA Insured) | 3,000 | 3,381 | ||
Kane, McHenry, Cook & DeKalb Counties Unit School District #300: | ||||
Series 2001, 0% 12/1/17 (AMBAC Insured) | 3,700 | 3,039 | ||
Series 2007, 6.5% 1/1/20 (AMBAC Insured) | 7,865 | 9,890 | ||
0% 12/1/21 | 5,000 | 3,313 | ||
Lake County Cmnty. Consolidated School District #73 Gen. Oblig.: | ||||
0% 12/1/14 (Escrowed to Maturity) | 630 | 614 | ||
0% 12/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,370 | 1,261 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Lake County Cmnty. Consolidated School District #73 Gen. Oblig.: - continued | ||||
0% 12/1/16 (Escrowed to Maturity) | $ 585 | $ 553 | ||
0% 12/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,905 | 1,639 | ||
Lake County Cmnty. High School District #117, Antioch Series B, 0% 12/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,240 | 5,530 | ||
Lake County Forest Preservation District Series 2007 A, 0.716% 12/15/13 (c) | 1,895 | 1,866 | ||
Lake County Warren Township High School District #121, Gurnee Series C: | ||||
5.5% 3/1/24 (AMBAC Insured) | 2,945 | 3,169 | ||
5.625% 3/1/21 (AMBAC Insured) | 2,505 | 2,728 | ||
5.75% 3/1/19 (AMBAC Insured) | 2,240 | 2,465 | ||
McHenry & Kane Counties Cmnty. Consolidated School District #158 Series 2003, 0% 1/1/19 (FGIC Insured) | 3,000 | 2,245 | ||
Metropolitan Pier & Exposition: | ||||
(McCormick Place Expansion Proj.): | ||||
Series 1992 A, 0% 6/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,610 | 2,601 | ||
Series 1996 A, 0% 6/15/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,300 | 3,121 | ||
Series 2002 A: | ||||
5% 12/15/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000 | 2,018 | ||
5.75% 6/15/41 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 26,420 | 26,765 | ||
Series 2002 B, 0% 6/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (a) | 2,000 | 2,174 | ||
Series 2010 B1, 0% 6/15/44 (FSA Insured) | 49,500 | 7,226 | ||
Series A: | ||||
0% 6/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,305 | 2,521 | ||
0% 6/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,935 | 2,237 | ||
0% 6/15/36 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,000 | 963 | ||
Series 1996 A, 0% 6/15/24 | 3,060 | 1,681 | ||
Series 2002, 0% 6/15/13 (Escrowed to Maturity) | 4,155 | 4,116 | ||
Series 2010 B1: | ||||
0% 6/15/43 (FSA Insured) | 42,600 | 6,619 | ||
0% 6/15/45 (FSA Insured) | 27,900 | 3,813 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Metropolitan Pier & Exposition: - continued | ||||
Series 2010 B1: | ||||
0% 6/15/47 (FSA Insured) | $ 11,570 | $ 1,399 | ||
Series A: | ||||
0% 6/15/13 (Escrowed to Maturity) | 5,415 | 5,368 | ||
0% 12/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,115 | 1,576 | ||
0% 6/15/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 210 | 201 | ||
0% 6/15/15 (Escrowed to Maturity) | 5,355 | 5,172 | ||
0% 6/15/15 (FGIC Insured) (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 9,645 | 8,708 | ||
Moline Gen. Oblig. Series A, 5.5% 2/1/17 (Pre-Refunded to 2/1/12 @ 100) | 1,000 | 1,004 | ||
Quincy Hosp. Rev.: | ||||
(Blessing Hosp. Proj.) 5% 11/15/16 | 1,200 | 1,276 | ||
Series 2007, 5% 11/15/14 | 1,000 | 1,054 | ||
5% 11/15/18 | 1,000 | 1,064 | ||
Schaumburg Village Gen. Oblig. Series B, 5% 12/1/38 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 11,350 | 11,909 | ||
Univ. of Illinois Board of Trustees Ctfs. of Prtn. Series 2009 A: | ||||
5% 10/1/17 | 1,300 | 1,471 | ||
5% 10/1/18 | 1,435 | 1,601 | ||
5% 10/1/20 | 1,290 | 1,412 | ||
Univ. of Illinois Rev.: | ||||
(Auxiliary Facilities Sys. Proj.): | ||||
Series 1991: | ||||
0% 4/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 16,270 | 14,196 | ||
0% 4/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 8,000 | 6,060 | ||
Series 1999 A, 0% 4/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,965 | 3,577 | ||
Series 2009 A, 5.75% 4/1/38 | 7,805 | 8,487 | ||
Series 2010 A: | ||||
5% 4/1/25 | 5,125 | 5,675 | ||
5.25% 4/1/30 | 3,200 | 3,469 | ||
Will County Cmnty. Unit School District #365-U: | ||||
0% 11/1/14 (Escrowed to Maturity) | 2,305 | 2,244 | ||
0% 11/1/14 (FSA Insured) | 1,995 | 1,871 | ||
0% 11/1/16 (Escrowed to Maturity) | 1,615 | 1,522 | ||
0% 11/1/16 (FSA Insured) | 4,885 | 4,227 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Will County Cmnty. Unit School District #365-U: - continued | ||||
0% 11/1/17 (FSA Insured) | $ 3,200 | $ 2,680 | ||
0% 11/1/19 (Escrowed to Maturity) | 675 | 585 | ||
0% 11/1/19 (FSA Insured) | 4,325 | 3,264 | ||
| 776,576 | |||
Indiana - 2.6% | ||||
Avon 2000 Cmnty. School Bldg. Corp. Series 2005, 5% 7/15/17 (FSA Insured) | 2,835 | 3,115 | ||
Clark-Pleasant 2004 School Bldg. Corp.: | ||||
5.25% 7/15/23 (FSA Insured) | 1,545 | 1,671 | ||
5.25% 7/15/25 (FSA Insured) | 1,720 | 1,837 | ||
Crown Point Multi-School Bldg. Corp. 0% 1/15/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,480 | 5,316 | ||
Franklin Township Independent School Bldg. Corp., Marion County: | ||||
5% 7/15/24 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,365 | 1,455 | ||
5.25% 7/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,885 | 2,112 | ||
GCS School Bldg. Corp. One 5% 7/15/22 (FSA Insured) | 1,545 | 1,642 | ||
Hobart Bldg. Corp. Series 2006, 6.5% 1/15/29 (FGIC Insured) | 25,900 | 31,642 | ||
Indiana Bond Bank Series B: | ||||
5% 2/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,940 | 2,020 | ||
5% 2/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,635 | 1,699 | ||
Indiana Dev. Fin. Auth. Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) Series 2001, 4.7%, tender 10/1/15 (c)(f) | 3,500 | 3,811 | ||
Indiana Fin. Auth. Health Sys. Rev. (Sisters of Saint Francis Health Svcs., Inc. Obligated Group Proj.): | ||||
Series 2008 C, 5.375% 11/1/32 | 7,815 | 8,316 | ||
Series 2009 A, 5.25% 11/1/39 | 5,300 | 5,542 | ||
Indiana Fin. Auth. Rev. (Trinity Health Cr. Group Proj.) Series 2009 A, 5.25% 12/1/38 | 8,000 | 8,439 | ||
Indiana Health & Edl. Facilities Fing. Auth. Hosp. Rev. Series B: | ||||
5% 2/15/14 | 1,060 | 1,134 | ||
5% 2/15/15 | 1,500 | 1,628 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Indiana Health & Edl. Facilities Fing. Auth. Rev. Bonds (Ascension Health Sr. Cr. Group Proj.) Series 2006 B1, 4.1%, tender 11/3/16 (c) | $ 11,200 | $ 12,463 | ||
Indiana Health Facilities Fing. Auth. Hosp. Rev. (Columbus Reg'l. Hosp. Proj.) Series 1993, 7% 8/15/15 (FSA Insured) | 1,575 | 1,713 | ||
Indiana Health Facility Fing. Auth. Rev. Bonds (Ascension Health Subordinate Cr. Proj.) Series 2005 A1, 5%, tender 5/1/13 (c) | 3,000 | 3,170 | ||
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev.: | ||||
Series 2011 A: | ||||
5% 1/1/22 | 2,000 | 2,392 | ||
5% 1/1/23 | 1,800 | 2,115 | ||
Series A, 5% 1/1/32 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,500 | 2,584 | ||
Indiana St Fin. Auth. Wastewtr.: | ||||
Series 2011 A, 5.25% 10/1/25 | 1,750 | 2,018 | ||
Series 2011 B, 5% 10/1/41 | 5,500 | 5,684 | ||
Indiana Trans. Fin. Auth. Hwy. Rev. Series 1993 A: | ||||
0% 6/1/16 (AMBAC Insured) | 6,470 | 5,873 | ||
0% 6/1/18 (AMBAC Insured) | 1,700 | 1,452 | ||
Indianapolis Local Pub. Impt. Bond Bank (Indianapolis Arpt. Auth. Proj.) Series 2006 F: | ||||
5% 1/1/16 (AMBAC Insured) (f) | 1,525 | 1,680 | ||
5% 1/1/17 (AMBAC Insured) (f) | 1,700 | 1,881 | ||
5.25% 1/1/14 (AMBAC Insured) (f) | 2,675 | 2,852 | ||
Jasper County Indl. Poll. Ctl. Rev. (Northern Indiana Pub. Svc. Co. Proj.) Series 1988 C, 5.6% 11/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,000 | 4,475 | ||
Purdue Univ. Rev. (Student Facilities Sys. Proj.) Series 2009 B: | ||||
5% 7/1/24 | 1,150 | 1,340 | ||
5% 7/1/25 | 1,000 | 1,149 | ||
5% 7/1/26 | 1,325 | 1,515 | ||
5% 7/1/29 | 670 | 750 | ||
5% 7/1/35 | 3,000 | 3,269 | ||
Southmont School Bldg. Corp. Series 2004, 5% 7/15/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000 | 2,078 | ||
Vigo County Hosp. Auth. Rev. (Union Hosp., Inc. Proj.) Series 2007: | ||||
5.7% 9/1/37 | 2,000 | 1,730 | ||
5.75% 9/1/42 | 1,000 | 857 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Wayne Township Marion County School Bldg. Corp. Series 2007, 5.5% 1/15/31 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 5,560 | $ 6,007 | ||
Westfield Washington Multi-School Bldg. Corp. Series A, 5% 7/15/18 (FSA Insured) | 1,500 | 1,609 | ||
Zionsville Cmnty. Schools Bldg. Series 2005, 5% 7/15/20 (FSA Insured) | 1,945 | 2,341 | ||
| 154,376 | |||
Iowa - 0.1% | ||||
Iowa Fin. Auth. Health Facilities Rev. Series 2008 A, 5.625% 8/15/37 (Assured Guaranty Corp. Insured) | 4,800 | 5,164 | ||
Kansas - 0.6% | ||||
Kansas Dev. Fin. Agcy. (Adventist Health Sys./Sunbelt Obligated Group Proj.): | ||||
Series 2009 C, 5.75% 11/15/38 | 10,600 | 11,630 | ||
Series 2009 D, 5% 11/15/29 | 4,600 | 4,840 | ||
Kansas Dev. Fin. Auth. Health Facilities Rev.: | ||||
(Hayes Med. Ctr., Inc. Proj.) Series 2010 Q, 5% 5/15/35 | 4,000 | 4,005 | ||
(KU Health Sys. Proj.) Series 2011 H, 5.125% 3/1/39 | 2,500 | 2,554 | ||
Leavenworth County Unified School District #453 general obligation Series 2009 A, 5.25% 9/1/24 (Assured Guaranty Corp. Insured) | 1,575 | 1,811 | ||
Olathe Health Facilities Rev. Bonds (Olathe Med. Ctr. Proj.) Series 2008 A, 4.125%, tender 3/1/13 (c) | 4,400 | 4,417 | ||
Topeka Combined Util. Impt. Rev. Series 2005 A: | ||||
6% 8/1/20 (XL Cap. Assurance, Inc. Insured) | 1,200 | 1,368 | ||
6% 8/1/25 (XL Cap. Assurance, Inc. Insured) | 1,100 | 1,230 | ||
6% 8/1/27 (XL Cap. Assurance, Inc. Insured) | 1,235 | 1,371 | ||
Wichita Hosp. Facilities Rev. (Via Christi Health Sys., Inc. Proj.) Series 2009 X: | ||||
4% 11/15/18 | 1,300 | 1,403 | ||
5% 11/15/17 | 2,500 | 2,824 | ||
| 37,453 | |||
Kentucky - 1.4% | ||||
Ashland Med. Ctr. Rev. (Ashland Hosp. Corp. d/b/a/ King's Daughters Med. Ctr. Proj.) Series 2010 B, 5% 2/1/22 | 1,355 | 1,462 | ||
Kentucky Econ. Dev. Fin. Auth. Hosp. Rev.: | ||||
(Baptist Healthcare Sys. Proj.) Series A: | ||||
5% 8/15/16 | 9,410 | 10,599 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Kentucky - continued | ||||
Kentucky Econ. Dev. Fin. Auth. Hosp. Rev.: - continued | ||||
(Baptist Healthcare Sys. Proj.) Series A: | ||||
5% 8/15/17 | $ 3,650 | $ 4,156 | ||
(St. Elizabeth Med. Ctr., Inc. Proj.) Series 2009 A, 5.5% 5/1/39 | 4,000 | 4,239 | ||
Kentucky Econ. Dev. Fin. Auth. Rev. (Ashland Hosp. Corp. d/b/a/ King's Daughters Med. Ctr. Proj.) Series 2010 A, 5% 2/1/30 | 5,000 | 5,106 | ||
Louisville & Jefferson County Metropolitan Govt. Health Facilities Rev. (Jewish Hosp. & St. Mary's HealthCare Proj.) Series 2008, 6.125% 2/1/37 | 36,220 | 37,505 | ||
Louisville & Jefferson County Metropolitan Swr. District Swr. & Drain Sys. Rev. Series A, 5.25% 5/15/37 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 15,750 | 17,079 | ||
Pikeville Hosp. Rev. (Pikeville Med. Ctr., Inc. Proj.) Series 2011, 6.5% 3/1/41 | 3,000 | 3,220 | ||
| 83,366 | |||
Louisiana - 0.8% | ||||
Louisiana Gas & Fuel Tax Rev. Series A, 5.375% 6/1/20 (AMBAC Insured) | 3,000 | 3,047 | ||
Louisiana Pub. Facilities Auth. Rev. (Nineteenth Judicial District Court Proj.) Series 2007: | ||||
5.375% 6/1/19 (FGIC Insured) | 1,000 | 1,145 | ||
5.375% 6/1/32 (FGIC Insured) | 1,900 | 2,012 | ||
5.5% 6/1/41 (FGIC Insured) | 15,500 | 16,380 | ||
Monroe-West Monroe Pub. Trust Fing. Auth. Mtg. Rev. Series C, 0% 8/20/14 | 8,625 | 7,935 | ||
New Orleans Aviation Board Rev.: | ||||
Series 2007 A, 5% 1/1/17 (FSA Insured) (f) | 1,420 | 1,565 | ||
Series 2007 B2, 5% 1/1/16 (FSA Insured) (f) | 1,000 | 1,092 | ||
New Orleans Gen. Oblig.: | ||||
Series 2005: | ||||
5% 12/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,690 | 4,766 | ||
5.25% 12/1/24 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,450 | 3,617 | ||
0% 9/1/13 (AMBAC Insured) | 3,350 | 3,207 | ||
0% 9/1/14 (AMBAC Insured) | 3,165 | 2,937 | ||
Tobacco Settlement Fing. Corp. Series 2001 B, 5.875% 5/15/39 | 1,000 | 1,002 | ||
| 48,705 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Maine - 0.3% | ||||
Maine Tpk. Auth. Tpk. Rev.: | ||||
Series 2004, 5.25% 7/1/30 | $ 3,000 | $ 3,120 | ||
Series 2007, 5.25% 7/1/37 (AMBAC Insured) | 9,060 | 9,659 | ||
6% 7/1/38 | 2,700 | 3,063 | ||
| 15,842 | |||
Maryland - 0.7% | ||||
Baltimore Convention Ctr. Hotel Rev. Series A, 5.25% 9/1/39 (XL Cap. Assurance, Inc. Insured) | 4,710 | 4,184 | ||
Baltimore Proj. Rev. (Wtr. Proj.) Series 2009 A, 5.75% 7/1/39 | 1,250 | 1,388 | ||
Maryland Econ. Dev. Corp. Student Hsg. Rev. (Univ. of Maryland, Baltimore County Student Hsg. Proj.) Series 2006: | ||||
5% 6/1/14 (CIFG North America Insured) | 1,020 | 1,102 | ||
5% 6/1/16 (CIFG North America Insured) | 1,000 | 1,108 | ||
5% 6/1/19 (CIFG North America Insured) | 1,500 | 1,604 | ||
Maryland Health & Higher Edl. Facilities Auth. Rev.: | ||||
(Anne Arundel Health Sys. Proj.) Series 2010, 5% 7/1/40 | 2,000 | 2,034 | ||
(Doctors Cmnty. Hosp. Proj.) Series 2010, 5.75% 7/1/38 | 2,245 | 2,098 | ||
(Good Samaritan Hosp. Proj.) Series 1993, 5.75% 7/1/13 (Escrowed to Maturity) | 1,605 | 1,680 | ||
(Johns Hopkins Med. Institutions Utils. Proj.) Series 2005 B, 5% 5/15/35 | 2,700 | 2,827 | ||
(Univ. of Maryland Med. Sys. Proj.) Series 2010, 5.125% 7/1/39 | 4,400 | 4,605 | ||
(Upper Chesapeake Hosp. Proj.) Series 2008 C, 6% 1/1/38 | 3,000 | 3,119 | ||
(Washington County Health Sys. Proj.) Series 2008: | ||||
6% 1/1/28 | 5,000 | 5,222 | ||
6% 1/1/43 | 1,500 | 1,532 | ||
Washington Suburban San. District 5% 6/1/20 | 6,630 | 8,224 | ||
| 40,727 | |||
Massachusetts - 2.6% | ||||
Massachusetts Bay Trans. Auth. Series 1992 B, 6.2% 3/1/16 | 3,800 | 4,217 | ||
Massachusetts Dev. Fin. Agcy. Rev.: | ||||
(Boston Univ. Proj.) Series U4, 5.7% 10/1/40 | 7,500 | 8,133 | ||
Series I, 6.75% 1/1/36 | 3,000 | 3,210 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Massachusetts - continued | ||||
Massachusetts Gen. Oblig.: | ||||
Series 2007 A, 0.819% 5/1/37 (c) | $ 7,000 | $ 5,462 | ||
Series 2007 C: | ||||
5.25% 8/1/22 | 7,700 | 9,098 | ||
5.25% 8/1/23 | 3,600 | 4,233 | ||
5.25% 8/1/24 | 9,000 | 10,519 | ||
Massachusetts Health & Edl. Facilities Auth. Rev.: | ||||
(Blood Research Institute Proj.) Series A, 6.5% 2/1/22 (g) | 3,015 | 3,025 | ||
(Massachusetts Gen. Hosp. Proj.) Series F, 6.25% 7/1/12 (Escrowed to Maturity) | 345 | 355 | ||
(South Shore Hosp. Proj.) Series F, 5.75% 7/1/29 | 4,455 | 4,456 | ||
Bonds (Baystate Health Sys. Proj.) Series 2009 K, 5%, tender 7/1/13 (c) | 4,000 | 4,215 | ||
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series 2001 A: | ||||
5.5% 1/1/12 (AMBAC Insured) (f) | 2,000 | 2,000 | ||
5.5% 1/1/14 (AMBAC Insured) (f) | 2,540 | 2,473 | ||
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev.: | ||||
Series 2005 A: | ||||
5% 8/15/23 | 29,965 | 33,247 | ||
5% 8/15/26 | 10,000 | 10,916 | ||
5% 8/15/30 | 30,000 | 32,198 | ||
Series 2007 A: | ||||
4.5% 8/15/35 | 14,090 | 14,555 | ||
5% 8/15/22 (AMBAC Insured) | 2,900 | 3,407 | ||
Massachusetts Wtr. Poll. Abatement Trust Wtr. Poll. Abatement Rev. (MWRA Ln. Prog.) Series 1998 A, 5.25% 8/1/13 | 90 | 90 | ||
| 155,809 | |||
Michigan - 2.0% | ||||
Detroit Swr. Disp. Rev.: | ||||
Series 2001 E, 5.75% 7/1/31 (Berkshire Hathaway Assurance Corp. Insured) (FGIC Insured) | 8,000 | 8,793 | ||
Series 2003 B, 7.5% 7/1/33 (FSA Insured) | 4,200 | 5,080 | ||
Series 2006, 5% 7/1/36 | 20,700 | 20,469 | ||
Detroit Wtr. Supply Sys. Rev.: | ||||
Series 2003 A, 5% 7/1/34 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 12,000 | 11,968 | ||
Series 2004 A, 5.25% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,380 | 2,589 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Michigan - continued | ||||
Detroit Wtr. Supply Sys. Rev.: - continued | ||||
Series 2004, 5.25% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,685 | $ 1,868 | ||
Series 2005 B, 5.5% 7/1/35 (Berkshire Hathaway Assurance Corp. Insured) (FGIC Insured) | 5,000 | 5,241 | ||
Series 2006 B, 7% 7/1/36 (FSA Insured) | 4,900 | 5,819 | ||
DeWitt Pub. Schools Gen. Oblig. 5% 5/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,650 | 1,913 | ||
Ferris State Univ. Rev. 5% 10/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,165 | 3,358 | ||
Fowlerville Cmnty. School District 5.25% 5/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,425 | 1,551 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev. Bonds (Spectrum Health Sys. Proj.) Series 2008 A, 5.25%, tender 1/15/14 (c) | 3,300 | 3,543 | ||
Lansing Board Wtr. & Lt. Rev. 5.5% 7/1/41 | 2,500 | 2,765 | ||
Lapeer Cmnty. Schools Series 2007, 5% 5/1/33 (FSA Insured) | 2,600 | 2,739 | ||
Michigan Hosp. Fin. Auth. Rev.: | ||||
(McLaren Health Care Corp. Proj.) Series 2008 A, 5.75% 5/15/38 | 3,000 | 3,170 | ||
(Mercy Health Svcs. Proj.): | ||||
Series 1996, 5.375% 8/15/26 (Escrowed to Maturity) | 4,750 | 4,759 | ||
Series W, 5.25% 8/15/27 (Escrowed to Maturity) | 4,000 | 4,010 | ||
(Sisters of Mercy Health Corp. Proj.) Series 1993, 5.375% 8/15/14 (Escrowed to Maturity) | 145 | 151 | ||
(Trinity Health Sys. Proj.): | ||||
Series 2008 A, 6.5% 12/1/33 | 4,000 | 4,526 | ||
5% 12/1/26 | 1,115 | 1,174 | ||
5% 12/1/26 (Pre-Refunded to 12/1/16 @ 100) | 245 | 293 | ||
Michigan Tobacco Settlement Fin. Auth. Tobacco Settlement Asset Rev. Series 2007, 6% 6/1/34 | 5,000 | 3,785 | ||
Portage Pub. Schools 5% 5/1/21 (FSA Insured) | 6,300 | 7,188 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Proj.): | ||||
Series 2009 V, 8.25% 9/1/39 | 3,400 | 4,065 | ||
Series M, 5.25% 11/15/31 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,000 | 7,000 | ||
Three Rivers Cmnty. Schools 5% 5/1/21 (FSA Insured) | 1,710 | 1,968 | ||
| 119,785 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Minnesota - 1.0% | ||||
Maple Grove Health Care Sys. Rev.: | ||||
(Maple Grove Hosp. Corp. Proj.) Series 2007, 5.25% 5/1/28 | $ 3,500 | $ 3,526 | ||
5% 5/1/20 | 1,000 | 1,036 | ||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (HealthPartners Obligated Group Proj.) 6% 12/1/18 | 1,000 | 1,071 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.: | ||||
Series 2005 A, 5% 1/1/35 (AMBAC Insured) | 4,000 | 4,064 | ||
Series A, 5% 1/1/12 (f) | 2,000 | 2,000 | ||
Minnesota 911 Rev. (Pub. Safety Radio Communications Sys. Proj.) Series 2009, 5% 6/1/20 (Assured Guaranty Corp. Insured) | 3,835 | 4,658 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Health Care Sys. Proj.) Series 2000 A, 6.375% 11/15/29 | 210 | 210 | ||
Saint Paul Port Auth. Lease Rev. Series 2003 11: | ||||
5.25% 12/1/18 | 1,710 | 1,820 | ||
5.25% 12/1/19 | 2,850 | 3,026 | ||
St. Louis Park Health Care Facilities Rev. (Park Nicollet Health Svcs. Proj.): | ||||
Series 2008 C, 5.5% 7/1/18 | 5,600 | 6,374 | ||
Series 2009, 5.75% 7/1/39 | 20,700 | 21,542 | ||
St. Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (HealthPartners Oblig. Group Proj.): | ||||
Series 2006, 5.25% 5/15/36 | 4,250 | 4,273 | ||
5.25% 5/15/18 | 1,650 | 1,747 | ||
5.25% 5/15/23 | 2,000 | 2,063 | ||
| 57,410 | |||
Mississippi - 0.1% | ||||
Hinds County Rev. (Mississippi Methodist Hosp. & Rehabilitation Proj.) 5.6% 5/1/12 (AMBAC Insured) | 665 | 670 | ||
Mississippi Hosp. Equip. & Facilities Auth. (Mississippi Baptist Med. Ctr. Proj.) Series 2007 A, 5% 8/15/14 | 2,500 | 2,669 | ||
| 3,339 | |||
Missouri - 0.1% | ||||
Metropolitan St. Louis Swr. District Wastewtr. Sys. Rev. Series 2008 A, 5.75% 5/1/38 | 1,000 | 1,116 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Missouri - continued | ||||
Missouri Dev. Fin. Board Infrastructure Facilities Rev. (City of Branson-Branson Landing Proj.) Series 2005 A, 6% 6/1/20 | $ 2,125 | $ 2,399 | ||
Saint Louis Arpt. Rev. Series 2007 B, 5% 7/1/16 (FSA Insured) (f) | 3,500 | 3,844 | ||
| 7,359 | |||
Montana - 0.1% | ||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series 1998 A, 5% 5/1/33 | 3,900 | 4,143 | ||
Nebraska - 0.4% | ||||
Central Plains Energy Proj. Rev. (Nebraska Gas Proj.) Series 2007 B, 0.853% 12/1/17 (c) | 7,900 | 6,578 | ||
Douglas County Hosp. Auth. #2 Health Facilities Rev. (Children's Hosp. Proj.): | ||||
6% 8/15/23 | 2,130 | 2,367 | ||
6% 8/15/28 | 3,500 | 3,821 | ||
6.125% 8/15/31 | 2,250 | 2,432 | ||
Lancaster County Hosp. Auth. #1 Health Facilities Rev. (Immanuel Med. Ctr., Inc. Proj.) Series 2010, 5.625% 1/1/40 | 1,500 | 1,542 | ||
Omaha Pub. Pwr. District Elec. Rev. Series A, 5% 2/1/46 | 5,500 | 5,673 | ||
| 22,413 | |||
Nevada - 0.6% | ||||
Clark County Arpt. Rev. Series 2003 C: | ||||
5.375% 7/1/17 (AMBAC Insured) (f) | 4,310 | 4,488 | ||
5.375% 7/1/19 (AMBAC Insured) (f) | 1,100 | 1,141 | ||
5.375% 7/1/21 (AMBAC Insured) (f) | 1,600 | 1,650 | ||
Clark County Wtr. Reclamation District Series 2009 A, 5.25% 7/1/29 (Berkshire Hathaway Assurance Corp. Insured) | 4,300 | 4,795 | ||
Las Vegas Valley Wtr. District Wtr. Impt. Gen. Oblig.: | ||||
Series 2003 B, 5.25% 6/1/17 (Pre-Refunded to 12/1/12 @ 100) | 6,285 | 6,566 | ||
Series 2011 C, 5% 6/1/24 | 5,415 | 6,107 | ||
Washoe County Gen. Oblig. (Reno Sparks Proj.) Series B: | ||||
0% 7/1/12 (FSA Insured) | 4,605 | 4,579 | ||
0% 7/1/13 (FSA Insured) | 4,590 | 4,497 | ||
0% 7/1/14 (FSA Insured) | 3,000 | 2,869 | ||
| 36,692 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New Hampshire - 0.4% | ||||
New Hampshire Bus. Fin. Auth. Rev. Series 2009 A, 6.125% 10/1/39 | $ 9,300 | $ 9,479 | ||
New Hampshire Health & Ed. Facilities Auth. Hosp. Rev. (Catholic Med. Ctr. Proj.) Series 2002 A, 5.75% 7/1/22 | 800 | 811 | ||
New Hampshire Health & Ed. Facilities Auth. Rev.: | ||||
(Dartmouth College Proj.) Series 2009, 5.25% 6/1/39 | 4,000 | 4,475 | ||
(Dartmouth-Hitchcock Obligated Group Proj.) Series 2010, 5% 8/1/40 | 4,700 | 4,859 | ||
New Hampshire Tpk. Sys. Rev. 5% 10/1/18 (b) | 4,315 | 5,224 | ||
| 24,848 | |||
New Jersey - 1.5% | ||||
Garden State Preservation Trust Open Space & Farmland Preservation Series 2005 A, 5.8% 11/1/19 (FSA Insured) | 5,100 | 6,043 | ||
New Jersey Econ. Dev. Auth. School Facilities Construction Rev.: | ||||
Series 2005 O: | ||||
5.125% 3/1/28 | 6,000 | 6,307 | ||
5.125% 3/1/30 | 5,000 | 5,244 | ||
5.25% 3/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,800 | 3,073 | ||
5.25% 3/1/23 | 4,500 | 4,890 | ||
5.25% 3/1/25 | 9,900 | 10,686 | ||
5.25% 3/1/26 | 11,305 | 12,143 | ||
Series 2005 P, 5.125% 9/1/28 | 2,445 | 2,581 | ||
Series 2009 AA, 5.5% 12/15/29 | 4,000 | 4,413 | ||
New Jersey Tpk. Auth. Tpk. Rev. Series 2009 E, 5.25% 1/1/40 | 3,000 | 3,227 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series 2001 A, 6% 6/15/35 | 3,900 | 4,479 | ||
Series 2011 B, 5% 6/15/42 | 7,400 | 7,665 | ||
Series B, 5.5% 12/15/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 6,126 | ||
North Hudson Swr. Auth. Wtr. & Swr. Rev. Series A: | ||||
5.25% 8/1/18 (FGIC Insured) | 3,235 | 3,297 | ||
5.25% 8/1/19 (FGIC Insured) | 2,735 | 2,786 | ||
Union County Impt. Auth. (Juvenile Detention Ctr. Facility Proj.) Series 2005, 5.5% 5/1/28 (FGIC Insured) | 5,560 | 5,840 | ||
| 88,800 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New Mexico - 0.2% | ||||
Albuquerque Arpt. Rev. Series 1997, 6.75% 7/1/12 (AMBAC Insured) (f) | $ 1,935 | $ 1,991 | ||
New Mexico Edl. Assistance Foundation Series 2010 A1: | ||||
4% 12/1/17 | 5,000 | 5,611 | ||
5% 12/1/18 | 2,000 | 2,354 | ||
| 9,956 | |||
New York - 10.0% | ||||
Albany Indl. Dev. Agcy. Civic Facility Rev. (St. Peters Hosp. Proj.) Series 2008 A: | ||||
5.25% 11/15/16 | 1,955 | 2,166 | ||
5.25% 11/15/17 (St Peters Hosp. Insured) | 1,500 | 1,664 | ||
Erie County Indl. Dev. Agcy. School Facilities Rev. (Buffalo City School District Proj.) Series 2004: | ||||
5.75% 5/1/16 (FSA Insured) | 13,120 | 14,457 | ||
5.75% 5/1/18 (FSA Insured) | 14,720 | 15,969 | ||
5.75% 5/1/20 (FSA Insured) | 8,000 | 8,600 | ||
5.75% 5/1/21 (FSA Insured) | 3,845 | 4,115 | ||
5.75% 5/1/22 (FSA Insured) | 1,000 | 1,067 | ||
5.75% 5/1/23 (FSA Insured) | 3,000 | 3,193 | ||
5.75% 5/1/24 (FSA Insured) | 3,000 | 3,195 | ||
5.75% 5/1/25 (FSA Insured) | 3,400 | 3,617 | ||
5.75% 5/1/26 (FSA Insured) | 5,200 | 5,524 | ||
Hudson Yards Infrastructure Corp. New York Rev.: | ||||
Series 2012 A, 5.75% 2/15/47 | 9,800 | 10,593 | ||
Series A: | ||||
5% 2/15/47 | 14,500 | 14,584 | ||
5% 2/15/47 | 13,100 | 13,176 | ||
Long Island Pwr. Auth. Elec. Sys. Rev. Series A: | ||||
5% 12/1/25 (FGIC Insured) | 5,000 | 5,408 | ||
5% 12/1/26 (XL Cap. Assurance, Inc. Insured) | 2,600 | 2,792 | ||
Metropolitan Trans. Auth. Svc. Contract Rev.: | ||||
Series 2002 A, 5.75% 7/1/31 | 3,800 | 3,887 | ||
Series 2002 B, 5.5% 7/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000 | 2,051 | ||
New York City Gen. Oblig.: | ||||
Series 2003 A: | ||||
5.5% 8/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,990 | 7,508 | ||
5.5% 8/1/20 (Pre-Refunded to 8/1/13 @ 100) | 50 | 54 | ||
Series 2008 A1, 5.25% 8/15/27 | 9,940 | 11,407 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York City Gen. Oblig.: - continued | ||||
Series 2008 D1, 5.125% 12/1/22 | $ 5,000 | $ 5,830 | ||
Series 2009 I-1, 5.625% 4/1/29 | 3,600 | 4,252 | ||
New York City Indl. Dev. Agcy. Civic Facility Rev. (Polytechnic Univ. NY Proj.) 5.25% 11/1/27 (ACA Finl. Guaranty Corp. Insured) | 3,100 | 3,137 | ||
New York City Indl. Dev. Agcy. Rev.: | ||||
(Queens Baseball Stadium Proj.) 5% 1/1/19 (AMBAC Insured) | 3,735 | 3,808 | ||
(Yankee Stadium Proj.) Series 2006, 5% 3/1/31 | 4,725 | 4,774 | ||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.: | ||||
Series 2002 A, 5.125% 6/15/34 | 3,300 | 3,349 | ||
Series 2003 A, 5.125% 6/15/34 | 13,800 | 14,004 | ||
Series 2003 E, 5% 6/15/34 | 11,120 | 11,546 | ||
Series 2007 DD: | ||||
4.75% 6/15/35 | 7,400 | 7,713 | ||
4.75% 6/15/36 | 2,900 | 3,017 | ||
Series 2009 A, 5.75% 6/15/40 | 1,500 | 1,715 | ||
Series 2009 EE, 5.25% 6/15/40 | 11,600 | 12,674 | ||
Series 2009 FF 2, 5.5% 6/15/40 | 17,800 | 19,856 | ||
Series 2011 EE, 5.375% 6/15/43 | 23,180 | 25,703 | ||
Series GG, 5% 6/15/43 | 6,700 | 7,217 | ||
New York City Transitional Fin. Auth. Bldg. Aid Rev.: | ||||
Series 2009 S1: | ||||
5.5% 7/15/31 | 4,000 | 4,478 | ||
5.5% 7/15/38 | 1,600 | 1,744 | ||
5.625% 7/15/38 | 2,825 | 3,117 | ||
Series 2009 S3: | ||||
5.25% 1/15/34 | 24,000 | 25,929 | ||
5.375% 1/15/34 | 2,750 | 2,992 | ||
Series 2009 S4: | ||||
5.5% 1/15/39 | 8,800 | 9,613 | ||
5.75% 1/15/39 | 4,100 | 4,554 | ||
Series 2011 S2 A, 5% 7/15/40 | 17,200 | 18,285 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2004 B: | ||||
5% 8/1/32 | 14,700 | 15,217 | ||
5% 8/1/32 (Pre-Refunded to 8/1/13 @ 100) | 15 | 16 | ||
Series 2004 C, 5% 2/1/33 (FGIC Insured) | 5,000 | 5,224 | ||
5% 2/1/31 | 3,410 | 3,496 | ||
5% 2/1/31 (Pre-Refunded to 2/1/13 @ 100) | 90 | 95 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York City Transitional Fin. Auth. Rev.: - continued | ||||
5.25% 8/1/19 (Pre-Refunded to 8/1/13 @ 100) | $ 1,880 | $ 2,024 | ||
New York City Trust Cultural Resources Rev. (Museum of Modern Art Proj.) Series 2001 D, 5.125% 7/1/31 | 6,000 | 6,051 | ||
New York Dorm. Auth. Personal Income Tax Rev.: | ||||
(Ed. Proj.) Series 2008 B, 5.75% 3/15/36 | 3,400 | 3,825 | ||
Series 2009 A, 5% 2/15/39 | 4,000 | 4,276 | ||
New York Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.) Series A, 5.75% 7/1/13 | 4,945 | 5,163 | ||
(New York Univ. Hosp. Ctr. Proj.): | ||||
Series 2006 A: | ||||
5% 7/1/15 | 3,000 | 3,294 | ||
5% 7/1/16 | 1,400 | 1,562 | ||
Series 2007 A, 5% 7/1/14 | 1,895 | 2,036 | ||
Series 2007 B, 5.25% 7/1/24 | 2,100 | 2,205 | ||
(State Univ. Edl. Facilities Proj.) Series A: | ||||
5.25% 5/15/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 12,400 | 13,651 | ||
5.875% 5/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,865 | 8,129 | ||
(Suffolk County Judicial Facilities Proj.) Series A, 9.5% 4/15/14 (Escrowed to Maturity) | 690 | 770 | ||
Series 2002 A, 5.75% 10/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 3,107 | ||
Series 2010 A, 5% 7/1/26 | 4,000 | 4,215 | ||
New York Med. Care Facilities Fin. Agcy. Rev. (Homeowner Mtg. Prog.) Series E, 6.2% 2/15/15 | 485 | 487 | ||
New York Metropolitan Trans. Auth. Dedicated Tax Fund Rev. Series 2009 B, 5% 11/15/34 | 11,800 | 12,687 | ||
New York Metropolitan Trans. Auth. Rev.: | ||||
Series 2008 A, 5.25% 11/15/36 | 26,700 | 28,199 | ||
Series 2010 D, 5.25% 11/15/40 | 6,600 | 7,108 | ||
New York Sales Tax Asset Receivables Corp. Series 2005 A, 5.25% 10/15/27 (AMBAC Insured) | 10,500 | 11,423 | ||
New York Thruway Auth. Gen. Rev. Series 2005 G: | ||||
5% 1/1/32 (FSA Insured) | 2,900 | 3,093 | ||
5.25% 1/1/27 | 12,500 | 13,646 | ||
New York Thruway Auth. Personal Income Tax Rev. Series 2007 A, 5.25% 3/15/25 | 3,500 | 3,996 | ||
Niagara Falls City Niagara County Pub. Impt. 7.5% 3/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 460 | 581 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
Tobacco Settlement Asset Securitization Corp. Series 2002-1, 5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) | $ 6,075 | $ 6,242 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series 2003 A1: | ||||
5.25% 6/1/21 (AMBAC Insured) | 5,645 | 6,005 | ||
5.25% 6/1/22 (AMBAC Insured) | 9,850 | 10,401 | ||
5.5% 6/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000 | 2,042 | ||
5.5% 6/1/19 | 4,050 | 4,350 | ||
Series 2003 B, 5.5% 6/1/18 | 6,775 | 6,919 | ||
Series 2003B 1C: | ||||
5.5% 6/1/19 | 10,800 | 11,600 | ||
5.5% 6/1/20 | 2,700 | 2,893 | ||
5.5% 6/1/20 (FGIC Insured) | 5,050 | 5,411 | ||
5.5% 6/1/22 | 10,065 | 10,729 | ||
Series 2011: | ||||
5% 6/1/17 | 11,700 | 13,686 | ||
5% 6/1/17 | 10,700 | 12,516 | ||
Triborough Bridge & Tunnel Auth. Revs. Series 2001 A, 5% 1/1/32 | 470 | 470 | ||
| 593,174 | |||
New York & New Jersey - 0.2% | ||||
Port Auth. of New York & New Jersey 124th Series, 5% 8/1/13 (FGIC Insured) (f) | 3,400 | 3,410 | ||
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 10,275 | 10,991 | ||
| 14,401 | |||
North Carolina - 1.0% | ||||
Catawba County Ctfs. of Prtn. (Pub. School and Cmnty. College Proj.) 5.25% 6/1/20 (Pre-Refunded to 6/1/14 @ 100) | 1,800 | 2,001 | ||
Charlotte Int'l. Arpt. Rev. (Charlotte Douglas Int'l. Arpt. Proj.) Series 2010 B, 5.5% 7/1/23 (f) | 1,200 | 1,365 | ||
Charlotte-Mecklenburg Hosp. Auth. Health Care Sys. Rev. Series A, 5% 1/15/20 (FSA Insured) | 960 | 1,075 | ||
Dare County Ctfs. of Prtn.: | ||||
5.25% 6/1/17 (AMBAC Insured) | 1,620 | 1,744 | ||
5.25% 6/1/18 (AMBAC Insured) | 1,620 | 1,737 | ||
5.25% 6/1/19 (AMBAC Insured) | 1,540 | 1,644 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
North Carolina - continued | ||||
Dare County Ctfs. of Prtn.: - continued | ||||
5.25% 6/1/22 (AMBAC Insured) | $ 1,620 | $ 1,719 | ||
5.25% 6/1/23 (AMBAC Insured) | 1,620 | 1,717 | ||
North Carolina Ctfs. of Prtn. (Repair and Renovation Proj.) Series 2004 B, 5.25% 6/1/17 (Pre-Refunded to 6/1/14 @ 100) | 3,600 | 3,994 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev. Series 2009 B, 5% 1/1/26 | 11,300 | 12,321 | ||
North Carolina Infrastructure Fin. Corp. Ctfs. of Prtn. (North Carolina Correctional Facilities Proj.) Series A: | ||||
5% 2/1/19 (Pre-Refunded to 2/1/14 @ 100) | 2,945 | 3,220 | ||
5% 2/1/20 (Pre-Refunded to 2/1/14 @ 100) | 1,500 | 1,640 | ||
North Carolina Med. Care Cmnty. Health (Memorial Mission Hosp. Proj.): | ||||
Series 2007, 5% 10/1/20 | 1,225 | 1,384 | ||
5% 10/1/21 | 5,690 | 6,391 | ||
North Carolina Med. Care Commission Health Care Facilities Rev. (Rex Healthcare Proj.) Series 2010 A, 5% 7/1/30 | 7,830 | 8,137 | ||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.: | ||||
Series 2009 A, 5% 1/1/30 | 2,300 | 2,474 | ||
Series 2010 B, 5% 1/1/20 | 6,700 | 8,150 | ||
| 60,713 | |||
North Dakota - 0.5% | ||||
Cass County Health Care Facilities Rev. (Essentia Health Obligated Group Proj.): | ||||
Series 2008 D, 5% 2/15/40 (Assured Guaranty Corp. Insured) | 5,000 | 5,092 | ||
Series 2008, 5.125% 2/15/37 (Assured Guaranty Corp. Insured) | 4,600 | 4,771 | ||
Fargo Health Sys. Rev. (Sanford Proj.) Series 2011, 6% 11/1/28 | 1,500 | 1,730 | ||
Grand Forks Health Care Sys. Rev. (Altru Health Sys. Proj.): | ||||
5% 12/1/12 (Assured Guaranty Corp. Insured) | 1,475 | 1,514 | ||
5% 12/1/14 (Assured Guaranty Corp. Insured) | 1,675 | 1,797 | ||
Mercer County Poll. Cont. Rev. (Antelope Valley Station/Basin Elec. Pwr. Coop. Proj.) 7.2% 6/30/13 (AMBAC Insured) | 11,520 | 11,941 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
North Dakota - continued | ||||
Ward County Health Care Facility Rev. (Trinity Med. Ctr. Proj.): | ||||
5.125% 7/1/19 | $ 2,765 | $ 2,872 | ||
5.25% 7/1/15 | 1,300 | 1,411 | ||
| 31,128 | |||
Ohio - 1.0% | ||||
Buckeye Tobacco Settlement Fing. Auth.: | ||||
Series 2007 A1, 5% 6/1/16 | 4,400 | 4,671 | ||
Series 2007 A2, 5.75% 6/1/34 | 15,000 | 10,735 | ||
Series A-2: | ||||
5.875% 6/1/47 | 3,800 | 2,723 | ||
6.5% 6/1/47 | 7,535 | 5,916 | ||
Series A1, 5% 6/1/17 | 5,045 | 5,343 | ||
Cleveland Parking Facilities Rev.: | ||||
5.25% 9/15/18 (Escrowed to Maturity) | 640 | 808 | ||
5.25% 9/15/18 (FSA Insured) | 1,360 | 1,572 | ||
Franklin County Hosp. Rev. (Nationwide Children's Hosp. Proj.) Series 2009, 5.25% 11/1/40 | 1,500 | 1,568 | ||
Lake County Hosp. Facilities Rev. (Lake Hosp. Sys., Inc. Proj.) Series 2008 C, 6% 8/15/43 | 5,000 | 5,092 | ||
Lucas County Hosp. Rev. (ProMedica Heathcare Oblig. Group Proj.) Series 2011 A, 6.5% 11/15/37 | 6,000 | 6,942 | ||
Ohio Higher Edl. Facility Commission Rev. (Cleveland Clinic Foundation Proj.) Series 2008 A, 5.5% 1/1/43 | 1,500 | 1,578 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Bonds (FirstEnergy Corp. Proj.) Series 2009 A, 5.875%, tender 6/1/16 (c) | 8,500 | 9,550 | ||
Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B, 6.375% 11/15/30 | 1,005 | 1,011 | ||
| 57,509 | |||
Oklahoma - 0.3% | ||||
Oklahoma City Pub. Property Auth. Hotel Tax Rev.: | ||||
5.5% 10/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,845 | 3,124 | ||
5.5% 10/1/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,005 | 3,293 | ||
5.5% 10/1/24 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,175 | 3,464 | ||
Oklahoma City Wtr. Utils. Trust Wtr. and Swr. Rev. Series 2009 A, 5% 7/1/34 | 1,000 | 1,108 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Oklahoma - continued | ||||
Oklahoma Dev. Fin. Auth. Health Sys. Rev. (Integris Baptist Med. Ctr. Proj.) Series C, 5.5% 8/15/20 | $ 5,000 | $ 5,787 | ||
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) 5% 2/15/14 | 645 | 678 | ||
Tulsa County Indl. Auth. Health Care Rev. 5% 12/15/19 | 1,680 | 1,898 | ||
| 19,352 | |||
Oregon - 0.5% | ||||
Clackamas County School District #62C, Oregon City Series 2004, 5% 6/15/19 (FSA Insured) | 3,395 | 3,725 | ||
Clackamas County School District #7J: | ||||
5.25% 6/1/23 | 2,000 | 2,575 | ||
5.25% 6/1/24 (FSA Insured) | 2,605 | 3,346 | ||
Multnomah County Hosp. Facilities Auth. Rev. (Adventist Health Sys./West Proj.) Series 2009 A, 5.125% 9/1/40 | 2,500 | 2,589 | ||
Oregon Facilities Auth. Rev. (Legacy Health Sys. Proj.) Series 2009 A, 5% 3/15/30 | 1,000 | 1,037 | ||
Oregon State Dept. of Administrative Svcs. Lottery Rev. Series 2011 A, 5.25% 4/1/31 | 5,600 | 6,420 | ||
Port Morrow Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series 1998 A, 5% 5/1/33 | 5,000 | 5,345 | ||
Washington County School District #15: | ||||
5.5% 6/15/20 (FSA Insured) | 1,770 | 2,240 | ||
5.5% 6/15/21 (FSA Insured) | 1,060 | 1,353 | ||
| 28,630 | |||
Pennsylvania - 1.7% | ||||
Allegheny County Arpt. Auth. Rev. (Pittsburg Int'l. Arpt. Proj.) Series B, 5% 1/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 3,000 | 3,203 | ||
Allegheny County Hosp. Dev. Auth. Rev.: | ||||
(Pittsburgh Med. Ctr. Proj.) Series B, 5% 6/15/16 | 1,365 | 1,545 | ||
(Univ. of Pittsburgh Med. Ctr. Proj.) Series 2009 A, 5.625% 8/15/39 | 6,225 | 6,659 | ||
Annville-Cleona School District Series 2005: | ||||
5.5% 3/1/24 (FSA Insured) | 1,350 | 1,466 | ||
5.5% 3/1/25 (FSA Insured) | 1,400 | 1,512 | ||
Easton Area School District Series 2006, 7.75% 4/1/25 (FSA Insured) | 4,800 | 5,735 | ||
Mifflin County School District 7.75% 9/1/30 (XL Cap. Assurance, Inc. Insured) | 3,400 | 4,139 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.): | ||||
Series 1993 A, 6% 6/1/22 (AMBAC Insured) | $ 2,000 | $ 2,338 | ||
Series A: | ||||
6.1% 6/1/12 (AMBAC Insured) | 1,050 | 1,072 | ||
6.125% 6/1/14 (AMBAC Insured) | 5,230 | 5,769 | ||
Pennsylvania Convention Ctr. Auth. Rev. Series A, 6.7% 9/1/16 (Escrowed to Maturity) | 1,370 | 1,569 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Amtrak Proj.) Series 2001 A, 6.375% 11/1/41 (f) | 8,700 | 8,776 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(The Univ. of Pennsylvania Health Sys. Proj.) Series 2009 A, 5.25% 8/15/21 | 2,900 | 3,350 | ||
(Univ. of Pennsylvania Health Sys. Proj.) Series A, 5% 8/15/16 | 3,600 | 4,056 | ||
Pennsylvania Tpk. Commission Tpk. Rev. Series 2009 D, 5.5% 12/1/41 | 12,600 | 13,301 | ||
Philadelphia Gas Works Rev.: | ||||
(1975 Gen. Ordinance Proj.) Seventeenth Series, 5.375% 7/1/20 (FSA Insured) | 4,000 | 4,157 | ||
(1998 Gen. Ordinance Proj.): | ||||
Fifth Series A1, 5% 9/1/33 (FSA Insured) | 1,095 | 1,107 | ||
Ninth Series, 5.25% 8/1/40 | 3,750 | 3,776 | ||
Seventh Series, 5% 10/1/37 (AMBAC Insured) | 8,900 | 8,848 | ||
Philadelphia Gen. Oblig.: | ||||
Series 2003 A, 5% 2/15/12 (XL Cap. Assurance, Inc. Insured) | 1,000 | 1,005 | ||
Series 2008 A, 5.25% 12/15/32 (FSA Insured) | 2,500 | 2,623 | ||
Series 2008 B, 7.125% 7/15/38 (Assured Guaranty Corp. Insured) | 3,200 | 3,636 | ||
Philadelphia Redev. Auth. Rev. (Philadelphia Neighborhood Transformation Initiative Proj.) Series 2005 C, 5% 4/15/31 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 3,051 | ||
Philadelphia School District Series 2005 A, 5% 8/1/22 (AMBAC Insured) | 1,675 | 1,767 | ||
Southeastern Pennsylvania Trans. Auth. Rev. Series 2011: | ||||
5% 6/1/22 | 1,000 | 1,166 | ||
5% 6/1/23 | 2,500 | 2,870 | ||
| 98,496 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Puerto Rico - 0.9% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev.: | ||||
Series 1998, 5.75% 7/1/22 (CIFG North America Insured) | $ 2,300 | $ 2,384 | ||
Series 2003, 5.75% 7/1/19 (FGIC Insured) | 3,240 | 3,425 | ||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series C, 5.5% 7/1/21 | 3,000 | 3,368 | ||
Puerto Rico Govt. Dev. Bank: | ||||
Series 2006 B, 5% 12/1/12 | 5,000 | 5,159 | ||
Series 2006 C, 5.25% 1/1/15 (f) | 5,000 | 5,305 | ||
Puerto Rico Pub. Bldg. Auth. Rev.: | ||||
Bonds Series M2: | ||||
5.5%, tender 7/1/17 (AMBAC Insured) (c) | 4,600 | 4,996 | ||
5.75%, tender 7/1/17 (c) | 8,500 | 9,336 | ||
Series N: | ||||
5.5% 7/1/21 | 5,000 | 5,356 | ||
5.5% 7/1/22 | 3,250 | 3,460 | ||
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev.: | ||||
Series 2007 A, 0% 8/1/41 (FGIC Insured) | 20,300 | 3,366 | ||
Series 2009 A, 6% 8/1/42 | 7,600 | 8,324 | ||
Series A, 0% 8/1/54 (AMBAC Insured) | 6,000 | 411 | ||
| 54,890 | |||
Rhode Island - 0.2% | ||||
Rhode Island Health & Edl. Bldg. Corp. Higher Ed. Facilities Rev.: | ||||
(Lifespan Corp. Proj.) Series A, 5% 5/15/13 (FSA Insured) | 4,000 | 4,187 | ||
(Univ. of Rhode Island Univ. Revs. Proj.): | ||||
Series 2004 A, 5.5% 9/15/24 (AMBAC Insured) | 3,400 | 3,656 | ||
Series A: | ||||
5.25% 9/15/15 (AMBAC Insured) | 1,725 | 1,888 | ||
5.25% 9/15/16 (AMBAC Insured) | 1,815 | 1,989 | ||
5.25% 9/15/18 (AMBAC Insured) | 1,005 | 1,095 | ||
| 12,815 | |||
South Carolina - 0.9% | ||||
Greenwood Fifty School Facilities Installment: | ||||
5% 12/1/18 (Assured Guaranty Corp. Insured) | 3,930 | 4,482 | ||
5% 12/1/19 (Assured Guaranty Corp. Insured) | 2,375 | 2,684 | ||
Lexington County Health Svcs. District, Inc. Hosp. Rev.: | ||||
5% 11/1/18 | 1,090 | 1,232 | ||
5% 11/1/19 | 1,000 | 1,127 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
South Carolina - continued | ||||
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5.25% 12/1/18 | $ 1,540 | $ 1,735 | ||
Richland County Hosp. Facilities Rev. (Cmnty. Provider Pooled Ln. Prog.) Series A, 7.125% 7/1/17 (Escrowed to Maturity) | 705 | 805 | ||
Rock Hill Util. Sys. Rev. Series 2003 A: | ||||
5.375% 1/1/17 (FSA Insured) | 2,100 | 2,188 | ||
5.375% 1/1/23 (FSA Insured) | 1,025 | 1,058 | ||
South Carolina Jobs-Econ. Dev. Auth. (Palmetto Health Proj.) Series 2009, 5.75% 8/1/39 | 1,435 | 1,471 | ||
South Carolina Jobs-Econ. Dev. Auth. Health Facilities Rev. (Bishop Gadsden Proj.): | ||||
5% 4/1/15 | 1,000 | 1,057 | ||
5% 4/1/24 | 4,000 | 3,971 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
(Santee Cooper Proj.) Series 2009 B: | ||||
5.25% 1/1/34 | 6,000 | 6,549 | ||
5.25% 1/1/39 | 2,800 | 3,038 | ||
Series 2004 A, 5% 1/1/39 | 7,600 | 7,893 | ||
Series 2005 B, 5% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,500 | 2,864 | ||
Series A, 5% 1/1/36 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 5,260 | ||
Univ. of South Carolina Athletic Facilities Rev. Series 2008 A, 5.5% 5/1/38 | 6,900 | 7,562 | ||
York County Wtr. & Swr. Rev. 5.25% 12/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,120 | 1,132 | ||
| 56,108 | |||
South Dakota - 0.1% | ||||
South Dakota Health & Edl. Facilities Auth. Rev. (Reg'l. Health Proj.) Series 2010: | ||||
4.625% 9/1/27 | 1,000 | 1,012 | ||
5% 9/1/28 | 3,000 | 3,109 | ||
South Dakota Lease Rev. Series A, 6.625% 9/1/12 (FSA Insured) | 270 | 281 | ||
| 4,402 | |||
Tennessee - 0.9% | ||||
Clarksville Natural Gas Acquisition Corp. Gas Rev.: | ||||
Series 2006, 5% 12/15/13 | 8,000 | 8,272 | ||
5% 12/15/12 | 4,500 | 4,631 | ||
5% 12/15/14 | 3,870 | 3,996 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Tennessee - continued | ||||
Jackson Hosp. Rev. (Jackson-Madison County Gen. Hosp. Proj.) Series 2008, 5.75% 4/1/41 | $ 6,600 | $ 7,051 | ||
Knox County Health Edl. & Hsg. Facilities Board Hosp. Facilities Rev.: | ||||
(Baptist Health Sys. of East Tennessee Proj.) Series 2002, 6.5% 4/15/31 (Pre-Refunded to 4/15/12 @ 101) | 5,000 | 5,137 | ||
(Fort Sanders Alliance Proj.): | ||||
Series 1993, 5.25% 1/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,310 | 3,524 | ||
Series C, 5.75% 1/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000 | 2,123 | ||
Knox County Health Edl. & Hsg. Facilities Board Rev. (Univ. Health Sys. Proj.) 5% 4/1/15 | 5,245 | 5,638 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series 2010 B: | ||||
5.75% 7/1/23 (f) | 5,820 | 6,538 | ||
5.75% 7/1/24 (f) | 2,400 | 2,680 | ||
Metropolitan Govt. Nashville & Davidson County Wtr. & Swr. Sys. Rev. 7.7% 1/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,555 | 1,555 | ||
| 51,145 | |||
Texas - 10.3% | ||||
Aledo Independent School District (School Bldg. Proj.) Series 2006 A, 5% 2/15/43 | 6,800 | 7,326 | ||
Argyle Independent School District Series 2005, 5.25% 8/15/40 (FSA Insured) | 1,745 | 1,813 | ||
Austin Cmnty. College District Pub. Facilities Lease Rev. (Round Rock Campus Proj.) Series 2008, 5.25% 8/1/33 | 5,000 | 5,476 | ||
Austin Cmnty. College District Rev. (Convention Ctr. Proj.) Series 2002, 0% 2/1/22 (AMBAC Insured) | 2,900 | 2,119 | ||
Austin Elec. Util. Sys. Rev.: | ||||
0% 5/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 9,200 | 7,981 | ||
0% 5/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 4,161 | ||
Austin Wtr. & Wastewtr. Sys. Rev.: | ||||
Series 2004 A, 5% 11/15/27 (AMBAC Insured) | 1,780 | 1,894 | ||
Series 2005 A, 5% 5/15/31 (AMBAC Insured) | 4,690 | 4,992 | ||
Bastrop Independent School District Series 2007: | ||||
5.25% 2/15/37 | 2,700 | 2,906 | ||
5.25% 2/15/42 | 5,000 | 5,365 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Beaumont Independent School District 5% 2/15/38 (Assured Guaranty Corp. Insured) | $ 1,450 | $ 1,581 | ||
Bexar Metropolitan Wtr. District Wtrwks. Sys. Rev. 5.375% 5/1/20 (FSA Insured) | 220 | 223 | ||
Boerne Independent School District Series 2004, 5.25% 2/1/35 | 5,100 | 5,225 | ||
Canyon Reg'l. Wtr. Auth. Contract Rev. (Wells Ranch Proj.): | ||||
5% 8/1/19 (AMBAC Insured) | 1,695 | 1,926 | ||
5% 8/1/20 (AMBAC Insured) | 1,780 | 1,997 | ||
Clint Independent School District 5.5% 8/15/20 (Pre-Refunded to 8/15/12 @ 100) | 210 | 217 | ||
Coppell Independent School District 0% 8/15/20 | 2,000 | 1,638 | ||
Corpus Christi Util. Sys. Rev.: | ||||
5.25% 7/15/18 (FSA Insured) | 3,305 | 3,970 | ||
5.25% 7/15/19 (FSA Insured) | 4,000 | 4,744 | ||
Cypress-Fairbanks Independent School District Series A, 0% 2/15/16 | 9,700 | 9,212 | ||
Dallas Area Rapid Transit Sales Tax Rev. Series 2008, 5.25% 12/1/38 | 21,000 | 22,675 | ||
Dallas Fort Worth Int'l. Arpt. Rev.: | ||||
Series 2009 A, 5% 11/1/23 | 1,250 | 1,370 | ||
Series A: | ||||
5% 11/1/42 | 14,800 | 15,268 | ||
5.25% 11/1/12 (f) | 5,820 | 6,034 | ||
5% 11/1/13 (XL Cap. Assurance, Inc. Insured) (f) | 2,665 | 2,848 | ||
5% 11/1/14 (XL Cap. Assurance, Inc. Insured) (f) | 2,625 | 2,871 | ||
5% 11/1/17 (XL Cap. Assurance, Inc. Insured) (f) | 4,325 | 4,630 | ||
Dallas Independent School District Series 2008, 6.375% 2/15/34 | 1,800 | 2,148 | ||
Del Mar College District 5.25% 8/15/20 (Pre-Refunded to 8/15/13 @ 100) | 2,960 | 3,193 | ||
DeSoto Independent School District 0% 8/15/20 | 3,335 | 2,732 | ||
Duncanville Independent School District 5.65% 2/15/28 | 30 | 31 | ||
Freer Independent School District Series 2007, 5.25% 8/15/37 | 4,215 | 4,552 | ||
Gainesville Independent School District Series 2006, 5.25% 2/15/36 | 1,900 | 2,016 | ||
Garland Wtr. & Swr. Rev. 5.25% 3/1/23 (AMBAC Insured) | 1,315 | 1,422 | ||
Grand Prairie Independent School District 0% 2/15/16 | 3,775 | 3,585 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Guadalupe-Blanco River Auth. Contract Rev. (Western Canyon Reg'l. Wtr. Supply Proj.): | ||||
5.25% 4/15/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,570 | $ 1,655 | ||
5.25% 4/15/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,680 | 1,766 | ||
5.25% 4/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,295 | 2,406 | ||
5.25% 4/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,915 | 2,005 | ||
5.25% 4/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000 | 1,043 | ||
5.25% 4/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,565 | 1,632 | ||
Gulf Coast Waste Disp. Auth. Solid Waste Disp. Rev. Bonds (Waste Mgmt. of Texas, Inc. Denton County Proj.) Series 2003 B, 3.5%, tender 5/1/13 (c)(f) | 2,500 | 2,568 | ||
Harris County Gen. Oblig.: | ||||
(Permanent Impt. Proj.) Series 1996, 0% 10/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 11,000 | 10,739 | ||
(Road Proj.): | ||||
Series 1996, 0% 10/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,550 | 5,484 | ||
Series 2008 B, 5.25% 8/15/47 | 25,440 | 27,073 | ||
Series 2002: | ||||
0% 8/15/25 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 1,955 | ||
0% 8/15/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 2,819 | ||
5.25% 10/1/24 | 1,700 | 1,846 | ||
5.25% 10/1/24 (Pre-Refunded to 10/1/14 @ 100) | 1,020 | 1,144 | ||
Harris County Health Facilities Dev. Corp. Hosp. Rev. (Memorial Hermann Healthcare Sys. Proj.) Series 2008 B, 7.25% 12/1/35 | 3,200 | 3,662 | ||
Houston Arpt. Sys. Rev.: | ||||
Series 2011 A: | ||||
5% 7/1/23 (f) | 3,000 | 3,270 | ||
5% 7/1/25 (f) | 1,500 | 1,586 | ||
Series A: | ||||
5.625% 7/1/20 (FSA Insured) (f) | 2,000 | 2,033 | ||
5.625% 7/1/21 (FSA Insured) (f) | 3,350 | 3,402 | ||
Houston Independent School District: | ||||
Series 2005 A, 0% 2/15/16 | 5,500 | 5,223 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Houston Independent School District: - continued | ||||
Series 2005 A, 0% 8/15/13 | $ 9,835 | $ 9,752 | ||
Humble Independent School District: | ||||
Series 2000: | ||||
0% 2/15/16 | 3,000 | 2,849 | ||
0% 2/15/17 | 3,480 | 3,245 | ||
Series 2005 B, 5.25% 2/15/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,995 | 2,197 | ||
Series 2009, 5% 2/15/34 | 4,300 | 4,731 | ||
Judson Independent School District Series 2005 B, 5% 2/1/22 (FSA Insured) | 2,250 | 2,392 | ||
Keller Independent School District Series 1996 A, 0% 8/15/17 | 2,000 | 1,845 | ||
Kermit Independent School District 5.25% 2/15/37 | 4,130 | 4,443 | ||
Kingsville Independent School District 5.25% 2/15/37 | 3,650 | 3,927 | ||
Liberty Hill Independent School District (School Bldg. Proj.) Series 2006, 5.25% 8/1/35 | 8,615 | 9,216 | ||
Little Elm Independent School District 5.5% 8/15/21 | 60 | 60 | ||
Lower Colorado River Auth. Rev.: | ||||
Series 2008, 5.75% 5/15/37 | 6,640 | 6,974 | ||
Series 2010: | ||||
5.25% 5/15/18 (AMBAC Insured) | 1,795 | 1,897 | ||
5.25% 5/15/18 (Pre-Refunded to 5/15/13 @ 100) | 80 | 85 | ||
5% 5/15/31 (AMBAC Insured) | 975 | 975 | ||
5.25% 5/15/18 (Pre-Refunded to 5/15/13 @ 100) | 5 | 5 | ||
Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission Svcs. Corp. Proj.): | ||||
Series 2003 C, 5% 5/15/33 | 5,495 | 5,557 | ||
Series C: | ||||
5.25% 5/15/18 (Pre-Refunded to 5/15/13 @ 100) | 1,000 | 1,067 | ||
5.25% 5/15/19 (Pre-Refunded to 5/15/13 @ 100) | 1,000 | 1,067 | ||
5.25% 5/15/20 (Pre-Refunded to 5/15/13 @ 100) | 2,000 | 2,134 | ||
Mansfield Independent School District 5.5% 2/15/18 | 40 | 40 | ||
Midway Independent School District Series 2000, 0% 8/15/19 | 3,600 | 3,087 | ||
Montgomery County Gen. Oblig. Series A, 5.625% 3/1/20 (FSA Insured) | 495 | 498 | ||
Navasota Independent School District: | ||||
Series 2005, 5.25% 8/15/34 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,275 | 2,332 | ||
5.5% 8/15/25 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,675 | 1,769 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
New Caney Independent School District Series 2007 A, 5.25% 2/15/37 | $ 2,680 | $ 2,901 | ||
North Forest Independent School District Series B, 5% 8/15/18 (FSA Insured) | 1,470 | 1,674 | ||
North Texas Muni. Wtr. District Wtr. Sys. Rev. Series 2006, 5% 9/1/35 | 4,000 | 4,227 | ||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series 2003 A, 5% 1/1/28 (AMBAC Insured) | 7,175 | 7,254 | ||
North Texas Tollway Auth. Rev.: | ||||
Bonds Series 2008 E3, 5.75%, tender 1/1/16 (c) | 4,000 | 4,530 | ||
Series 2008 A: | ||||
6% 1/1/23 | 4,800 | 5,547 | ||
6% 1/1/24 | 2,000 | 2,289 | ||
Series 2008 I, 0% 1/1/42 (Assured Guaranty Corp. Insured) (a) | 7,200 | 6,786 | ||
Series 2009 A, 6.25% 1/1/39 | 10,200 | 11,152 | ||
Series 2011 A, 6% 9/1/41 | 4,900 | 5,627 | ||
Pflugerville Gen. Oblig. 5.5% 8/1/22 (AMBAC Insured) | 1,000 | 1,054 | ||
Prosper Independent School District: | ||||
Series 2005, 5.125% 8/15/30 | 3,110 | 3,360 | ||
5.375% 8/15/37 | 15,255 | 16,872 | ||
5.75% 8/15/29 | 280 | 287 | ||
5.75% 8/15/29 (Pre-Refunded to 8/15/12 @ 100) | 970 | 1,003 | ||
Robstown Independent School District 5.25% 2/15/29 (Pre-Refunded to 2/15/14 @ 100) | 3,165 | 3,486 | ||
Rockdale Independent School District Series 2007, 5.25% 2/15/37 | 5,100 | 5,439 | ||
Rockwall Independent School District: | ||||
5.375% 2/15/19 | 25 | 25 | ||
5.375% 2/15/20 | 25 | 25 | ||
5.375% 2/15/21 | 30 | 30 | ||
San Antonio Arpt. Sys. Rev.: | ||||
5% 7/1/15 (FSA Insured) (f) | 2,510 | 2,745 | ||
5% 7/1/17 (FSA Insured) (f) | 2,765 | 3,107 | ||
5% 7/1/17 (FSA Insured) (f) | 2,385 | 2,654 | ||
5.25% 7/1/19 (FSA Insured) (f) | 2,635 | 2,902 | ||
5.25% 7/1/20 (FSA Insured) (f) | 3,215 | 3,534 | ||
5.25% 7/1/20 (FSA Insured) (f) | 2,775 | 3,021 | ||
San Antonio Elec. & Gas Sys. Rev. Series 2008, 5% 2/1/24 | 2,590 | 2,959 | ||
San Antonio Gen. Oblig. Series 2006, 5.5% 2/1/15 | 365 | 366 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
San Antonio Wtr. Sys. Rev. Series 2002 A, 5% 5/15/32 (Pre-Refunded to 5/15/12 @ 100) | $ 1,550 | $ 1,577 | ||
San Jacinto Cmnty. College District Series 2009, 5% 2/15/39 | 3,620 | 3,865 | ||
Snyder Independent School District: | ||||
5.25% 2/15/21 (AMBAC Insured) | 1,035 | 1,120 | ||
5.25% 2/15/22 (AMBAC Insured) | 1,090 | 1,173 | ||
5.25% 2/15/30 (AMBAC Insured) | 1,800 | 1,879 | ||
Southwest Higher Ed. Auth. Rev. (Southern Methodist Univ. Proj.) Series 2010: | ||||
5% 10/1/35 | 1,700 | 1,829 | ||
5% 10/1/41 | 8,200 | 8,756 | ||
Spring Branch Independent School District Series 2008, 5.25% 2/1/38 | 2,000 | 2,180 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Hosp. Rev.: | ||||
(Baylor Health Care Sys. Proj.) Series 2009, 5.75% 11/15/24 | 6,900 | 7,857 | ||
(Hendrick Med. Ctr. Proj.) Series 2009 B: | ||||
5.25% 9/1/26 (Assured Guaranty Corp. Insured) | 1,785 | 1,939 | ||
5.25% 9/1/27 (Assured Guaranty Corp. Insured) | 2,375 | 2,569 | ||
Texas Gen. Oblig.: | ||||
(Trans. Commission Mobility Fund Proj.): | ||||
Series 2005 A, 4.75% 4/1/35 | 8,380 | 8,654 | ||
Series 2008, 4.75% 4/1/37 | 21,920 | 23,078 | ||
5.75% 8/1/26 | 3,320 | 3,330 | ||
Texas Muni. Pwr. Agcy. Rev. 0% 9/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 18,715 | 17,369 | ||
Texas Private Activity Bond Surface Trans. Corp.: | ||||
(LBJ Infrastructure Group LLC IH-635 Managed Lanes Proj.) Series 2010, 7% 6/30/40 | 5,200 | 5,639 | ||
(NTE Mobility Partners LLC North Tarrant Express Managed Lanes Proj.) Series 2009, 6.875% 12/31/39 | 7,300 | 7,844 | ||
Texas Pub. Fin. Auth. Bldg. Rev. Series 1990: | ||||
0% 2/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,400 | 4,396 | ||
0% 2/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,910 | 6,636 | ||
Texas Tpk. Auth. Central Texas Tpk. Sys. Rev. Series 2002 A: | ||||
5.5% 8/15/39 | 37,550 | 37,744 | ||
5.75% 8/15/38 (AMBAC Insured) | 15,900 | 16,009 | ||
Texas Trans. Commission State Hwy. Fund Rev. Series 2007, 5% 4/1/23 | 2,320 | 2,658 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Texas Wtr. Dev. Board Rev.: | ||||
Series B, 5.375% 7/15/16 | $ 5,000 | $ 5,014 | ||
5.625% 7/15/21 | 1,315 | 1,318 | ||
Trinity River Auth. Rev. (Tarrant County Wtr. Proj.) 5% 2/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,930 | 5,517 | ||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.) 5.75% 7/1/27 (Pre-Refunded to 7/1/13 @ 100) | 1,000 | 1,079 | ||
Waller Independent School District 5.5% 2/15/37 | 4,920 | 5,397 | ||
Weatherford Independent School District 0% 2/15/33 | 6,985 | 2,971 | ||
White Settlement Independent School District: | ||||
5.75% 8/15/30 (Pre-Refunded to 8/15/12 @ 100) | 2,890 | 2,988 | ||
5.75% 8/15/34 (Pre-Refunded to 8/15/12 @ 100) | 2,860 | 2,957 | ||
5.75% 8/15/34 (Pre-Refunded to 8/15/12 @ 100) | 140 | 145 | ||
Wylie Independent School District Series 2001, 0% 8/15/20 | 1,790 | 1,466 | ||
| 607,405 | |||
Utah - 0.6% | ||||
Intermountain Pwr. Agcy. Pwr. Supply Rev. Series A, 6% 7/1/16 (Escrowed to Maturity) | 9,205 | 9,236 | ||
Salt Lake City Hosp. Rev. (Intermountain Health Care Hosp., Inc. Proj.) Series A, 8.125% 5/15/15 (Escrowed to Maturity) | 1,505 | 1,625 | ||
Utah Associated Muni. Pwr. Sys. Rev. (Payson Pwr. Proj.) Series A: | ||||
5.25% 4/1/16 (FSA Insured) | 3,590 | 3,736 | ||
5.25% 4/1/17 (FSA Insured) | 4,335 | 4,504 | ||
Utah State Board of Regents Rev. Series 2011 B: | ||||
5% 8/1/24 | 2,670 | 3,009 | ||
5% 8/1/25 | 2,175 | 2,432 | ||
Utah Transit Auth. Sales Tax Rev. Series 2008 A, 5.25% 6/15/38 | 9,070 | 9,907 | ||
| 34,449 | |||
Vermont - 0.2% | ||||
Vermont Edl. & Health Bldg. Fin. Agcy. Rev.: | ||||
(Fletcher Allen Health Care, Inc. Proj.) Series 2000 A, 6.125% 12/1/27 (AMBAC Insured) | 7,120 | 7,143 | ||
(Middlebury College Proj.) Series 2006 A, 5% 10/31/46 | 4,075 | 4,263 | ||
| 11,406 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Virginia - 0.2% | ||||
King George County Indl. Dev. Auth. Solid Waste Disp. Fac. Rev. Bonds (King George Landfill, Inc. Proj.) Series 2003 A, 3.5%, tender 5/1/13 (c)(f) | $ 4,050 | $ 4,135 | ||
Virginia Beach Dev. Auth. Hosp. Facilities Rev. (Virginia Beach Gen. Hosp. Proj.): | ||||
6% 2/15/12 (AMBAC Insured) | 2,150 | 2,163 | ||
6% 2/15/13 (AMBAC Insured) | 1,460 | 1,543 | ||
Winchester Indl. Dev. Auth. Hosp. Rev. (Valley Health Sys. Proj.) Series 2009 E, 5.625% 1/1/44 | 1,800 | 1,907 | ||
York County Econ. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. and Pwr. Co. Proj.) Series 2009 A, 4.05%, tender 5/1/14 (c) | 3,700 | 3,895 | ||
| 13,643 | |||
Washington - 3.6% | ||||
Central Puget Sound Reg'l. Trans. Auth. Sales & Use Tax Rev. Series 2007 A, 5% 11/1/27 | 3,500 | 3,796 | ||
Chelan County Pub. Util. District #1 Columbia River-Rock Island Hydro-Elec. Sys. Rev. Series 1997 A, 0% 6/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,200 | 6,252 | ||
Chelan County Pub. Util. District #1 Rev. Bonds Series 2005 A, 5.125%, tender 7/1/15 (FGIC Insured) (c)(f) | 2,430 | 2,542 | ||
Clark County School District #37, Vancouver Series 2001 C, 0% 12/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,030 | 1,645 | ||
Energy Northwest Elec. Rev.: | ||||
(#3 Proj.) Series 2002 B, 6% 7/1/16 (AMBAC Insured) | 20,000 | 20,555 | ||
Series 2012 A, 5% 7/1/21 (b) | 20,000 | 24,214 | ||
Grant County Pub. Util. District #2 Wanapum Hydro Elec. Rev. Series B: | ||||
5.25% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 1,590 | 1,724 | ||
5.25% 1/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 1,760 | 1,882 | ||
5.25% 1/1/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 2,055 | 2,168 | ||
Kent Spl. Events Ctr. Pub. Facilities District Rev.: | ||||
5.25% 12/1/25 (FSA Insured) | 2,575 | 2,869 | ||
5.25% 12/1/36 (FSA Insured) | 9,180 | 9,737 | ||
King County Gen. Oblig.: | ||||
(Pub. Trans. Proj.) Series 2004, 5.125% 6/1/34 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,750 | 4,923 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Washington - continued | ||||
King County Gen. Oblig.: - continued | ||||
(Swr. Proj.) Series 2005, 5% 1/1/26 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 5,000 | $ 5,367 | ||
King County Swr. Rev.: | ||||
Series 2008, 5.75% 1/1/43 | 22,700 | 25,141 | ||
Series 2009, 5.25% 1/1/42 | 2,600 | 2,818 | ||
Series 2010, 5% 1/1/50 | 6,500 | 6,882 | ||
Pierce County School District #10 Tacoma Series A, 5% 12/1/18 (FSA Insured) | 4,000 | 4,577 | ||
Port of Seattle Rev. Series D: | ||||
5.75% 11/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 1,500 | 1,550 | ||
5.75% 11/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 3,055 | 3,159 | ||
5.75% 11/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (f) | 2,250 | 2,328 | ||
Snohomish County School District #4, Lake Stevens 5.125% 12/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,875 | 2,104 | ||
Spokane Pub. Facilities District Hotel/Motel Tax & Sales/Use Tax Rev.: | ||||
5.75% 12/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000 | 2,166 | ||
5.75% 12/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000 | 2,161 | ||
Washington Gen. Oblig.: | ||||
Series 2008 D, 5% 1/1/24 | 2,975 | 3,431 | ||
Series B, 5% 7/1/28 | 395 | 429 | ||
Series R 97A: | ||||
0% 7/1/17 (Escrowed to Maturity) | 7,045 | 6,576 | ||
0% 7/1/19 (Escrowed to Maturity) | 9,100 | 8,022 | ||
Washington Health Care Facilities Auth. Rev.: | ||||
(Catholic Heath Initiatives Proj.) Series 2008 D, 6.375% 10/1/36 | 5,000 | 5,743 | ||
(Childrens Hosp. Reg'l. Med. Ctr. Proj.) Series 2008 C, 5.5% 10/1/35 | 10,000 | 10,798 | ||
(MultiCare Health Sys. Proj.) Series 2010 A: | ||||
5.25% 8/15/19 | 3,850 | 4,259 | ||
5.25% 8/15/20 | 2,000 | 2,203 | ||
(Providence Health Systems Proj.) Series 2006 D, 5.25% 10/1/33 | 2,000 | 2,126 | ||
(Seattle Children's Hosp. Proj.) Series 2009, 5.625% 10/1/38 | 7,550 | 8,233 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Washington - continued | ||||
Washington Health Care Facilities Auth. Rev.: - continued | ||||
5.7% 7/1/38 | $ 11,300 | $ 11,629 | ||
7% 7/1/39 | 3,000 | 3,151 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #3 Rev. Series A, 0% 7/1/12 | 4,000 | 3,980 | ||
| 211,140 | |||
West Virginia - 0.1% | ||||
West Virginia Hosp. Fin. Auth. Hosp. Rev.: | ||||
(West Virginia United Health Sys. Proj.) Series 2008 E, 5.625% 6/1/35 | 700 | 738 | ||
(West Virginia Univ. Hospitals, Inc. Proj.) Series 2003 D, 5.5% 6/1/33 (FSA Insured) | 2,600 | 2,762 | ||
| 3,500 | |||
Wisconsin - 0.4% | ||||
Badger Tobacco Asset Securitization Corp. 6.125% 6/1/27 (Pre-Refunded to 6/1/12 @ 100) | 2,270 | 2,324 | ||
Douglas County Gen. Oblig. 5.5% 2/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,035 | 1,039 | ||
Wisconsin Gen. Oblig. Series 2008 D, 5.5% 5/1/26 | 1,245 | 1,442 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Agnesian HealthCare, Inc. Proj.) Series 2010: | ||||
5.5% 7/1/40 | 2,375 | 2,393 | ||
5.75% 7/1/30 | 2,655 | 2,751 | ||
(Children's Hosp. of Wisconsin Proj.) 5.25% 8/15/22 | 2,000 | 2,237 | ||
(Children's Hosp. Proj.) Series 2008 B, 5.375% 8/15/37 | 8,045 | 8,446 | ||
(Marshfield Clinic Proj.) Series A, 5.375% 2/15/34 | 3,250 | 3,254 | ||
(Wheaton Franciscan Healthcare Sys. Proj.) Series 2003 A: | ||||
5.5% 8/15/15 | 1,480 | 1,539 | ||
5.5% 8/15/16 | 975 | 1,007 | ||
| 26,432 | |||
Wyoming - 0.2% | ||||
Campbell County Solid Waste Facilities Rev. (Basin Elec. Pwr. Coop. - Dry Fork Station Facilities Proj.) Series 2009 A, 5.75% 7/15/39 | 8,600 | 9,372 | ||
TOTAL MUNICIPAL BONDS (Cost $5,418,270) |
|
Money Market Funds - 0.0% | |||
Shares | Value (000s) | ||
Fidelity Municipal Cash Central Fund, 0.10% (d)(e) | 100,000 | $ 100 | |
TOTAL INVESTMENT PORTFOLIO - 96.4% (Cost $5,418,370) | 5,704,034 | ||
NET OTHER ASSETS (LIABILITIES) - 3.6% | 212,538 | ||
NET ASSETS - 100% | $ 5,916,572 |
Security Type Abbreviations |
Legend |
(a) Security initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end. |
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(d) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(f) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(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 $3,025,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Massachusetts Health & Edl. Facilities Auth. Rev. (Blood Research Institute Proj.) Series A, 6.5% 2/1/22 | 9/3/92 | $ 2,842 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Municipal Cash Central Fund | $ - * |
* Amount represents less than one thousand. |
Other Information |
The following is a summary of the inputs used, as of December 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Municipal Securities | $ 5,703,934 | $ - | $ 5,703,934 | $ - |
Money Market Funds | 100 | 100 | - | - |
Total Investments in Securities: | $ 5,704,034 | $ 100 | $ 5,703,934 | $ - |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 34.6% |
Health Care | 17.4% |
Transportation | 9.9% |
Water & Sewer | 9.3% |
Special Tax | 9.2% |
Electric Utilities | 6.5% |
Others* (Individually Less Than 5%) | 13.1% |
| 100.0% |
* Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | December 31, 2011 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $5,418,270) | $ 5,703,934 |
|
Fidelity Central Funds (cost $100) | 100 |
|
Total Investments (cost $5,418,370) |
| $ 5,704,034 |
Cash |
| 187,679 |
Receivable for fund shares sold | 4,639 | |
Interest receivable | 74,989 | |
Prepaid expenses | 13 | |
Other receivables | 5 | |
Total assets | 5,971,359 | |
|
|
|
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 42,237 | |
Payable for fund shares redeemed | 2,534 | |
Distributions payable | 7,285 | |
Accrued management fee | 1,787 | |
Other affiliated payables | 879 | |
Other payables and accrued expenses | 65 | |
Total liabilities | 54,787 | |
|
|
|
Net Assets | $ 5,916,572 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,644,841 | |
Distributions in excess of net investment income | (401) | |
Accumulated undistributed net realized gain (loss) on investments | (13,532) | |
Net unrealized appreciation (depreciation) on investments | 285,664 | |
Net Assets, for 454,021 shares outstanding | $ 5,916,572 | |
Net Asset Value, offering price and redemption price per share ($5,916,572 ÷ 454,021 shares) | $ 13.03 |
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, 2011 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 252,778 |
|
|
|
Expenses | ||
Management fee | $ 20,305 | |
Transfer agent fees | 4,421 | |
Accounting fees and expenses | 682 | |
Custodian fees and expenses | 66 | |
Independent trustees' compensation | 21 | |
Registration fees | 134 | |
Audit | 71 | |
Legal | 16 | |
Miscellaneous | 61 | |
Total expenses before reductions | 25,777 | |
Expense reductions | (26) | 25,751 |
Net investment income (loss) | 227,027 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 1,487 |
Change in net unrealized appreciation (depreciation) on investment securities | 331,458 | |
Net gain (loss) | 332,945 | |
Net increase (decrease) in net assets resulting from operations | $ 559,972 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 227,027 | $ 243,841 |
Net realized gain (loss) | 1,487 | (5,712) |
Change in net unrealized appreciation (depreciation) | 331,458 | (88,189) |
Net increase (decrease) in net assets resulting | 559,972 | 149,940 |
Distributions to shareholders from net investment income | (227,872) | (243,604) |
Distributions to shareholders from net realized gain | (905) | (466) |
Total distributions | (228,777) | (244,070) |
Share transactions | 1,259,784 | 1,246,482 |
Reinvestment of distributions | 144,401 | 152,825 |
Cost of shares redeemed | (1,473,902) | (1,290,967) |
Net increase (decrease) in net assets resulting from share transactions | (69,717) | 108,340 |
Redemption fees | 55 | 69 |
Total increase (decrease) in net assets | 261,533 | 14,279 |
|
|
|
Net Assets | ||
Beginning of period | 5,655,039 | 5,640,760 |
End of period (including distributions in excess of net investment income of $401 and undistributed net investment income of $1,805, respectively) | $ 5,916,572 | $ 5,655,039 |
Other Information Shares | ||
Sold | 100,767 | 98,667 |
Issued in reinvestment of distributions | 11,488 | 12,083 |
Redeemed | (118,949) | (102,871) |
Net increase (decrease) | (6,694) | 7,879 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 12.27 | $ 12.46 | $ 11.49 | $ 12.58 | $ 12.77 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .513 | .516 | .517 | .515 | .514 |
Net realized and unrealized gain (loss) | .764 | (.189) | .970 | (1.081) | (.125) |
Total from investment operations | 1.277 | .327 | 1.487 | (.566) | .389 |
Distributions from net investment income | (.515) | (.516) | (.517) | (.513) | (.514) |
Distributions from net realized gain | (.002) | (.001) | - G | (.011) | (.065) |
Total distributions | (.517) | (.517) | (.517) | (.524) | (.579) |
Redemption fees added to paid in capital B, G | - | - | - | - | - |
Net asset value, end of period | $ 13.03 | $ 12.27 | $ 12.46 | $ 11.49 | $ 12.58 |
Total Return A | 10.64% | 2.58% | 13.14% | (4.61)% | 3.13% |
Ratios to Average Net Assets C, E |
|
|
|
|
|
Expenses before reductions | .46% | .46% | .48% | .47% | .47% |
Expenses net of fee waivers, if any | .46% | .46% | .48% | .47% | .47% |
Expenses net of all reductions | .46% | .46% | .48% | .46% | .44% |
Net investment income (loss) | 4.08% | 4.08% | 4.25% | 4.23% | 4.08% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 5,917 | $ 5,655 | $ 5,641 | $ 4,545 | $ 5,141 |
Portfolio turnover rate D | 11% | 10% | 10% | 15% | 22% F |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F The portfolio turnover rate does not include the assets acquired in the merger.
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, 2011
(Amounts in thousands except percentages)
1. Organization.
Fidelity Municipal Income Fund (the Fund) is a fund of Fidelity Municipal Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and
Annual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2011 for the Fund's investments is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For municipal securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially 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. As of December 31, 2011, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation, capital loss carryforwards, losses deferred due to wash sales, futures transactions, and excise tax regulations.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the IRS will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investment securities and unrealized appreciation (depreciation)
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
as of period end were as follows:
Gross unrealized appreciation | $ 313,189 |
Gross unrealized depreciation | (26,848) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 286,341 |
|
|
Tax Cost | $ 5,417,693 |
The tax-based components of distributable earnings as of period end were as follows:
Capital loss carryforward | $ (12,882) |
Net unrealized appreciation (depreciation) | $ 286,340 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. Capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2016 | $ (8,010) |
2018 | (2,786) |
Total with expiration | (10,796) |
No expiration |
|
Short-term | (2,086) |
Total capital loss carryforward | $ (12,882) |
The tax character of distributions paid was as follows:
| December 31, 2011 | December 31, 2010 |
Tax-exempt Income | $ 227,872 | $ 243,604 |
Ordinary Income | 905 | 466 |
Total | $ 228,777 | $ 244,070 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
4. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. 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 securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $598,325 and $846,577, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and an annualized group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and servicing agent for the Fund. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, under which FIIOC performs the activities associated with the Fund's
Annual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees - continued
transfer agency, dividend disbursing and shareholder servicing functions. The Fund pays account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees were equivalent to an annual rate of .08% of average net assets.
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $17 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
Through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expense by $26.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Municipal Income Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2012
Annual Report
Trustees and Officers
The Trustees 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 203 funds advised by FMR or an affiliate. Mr. Curvey oversees 429 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Kenneth L. Wolfe serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
Trustees and Officers - continued
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Abigail P. Johnson (50) | |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (76) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of Fidelity Investments Money Management, Inc. (2009-present), Director of Fidelity Research & Analysis Co. (2009-present) and Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Albert R. Gamper, Jr. (69) | |
| Year of Election or Appointment: 2006 Mr. Gamper is Vice Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2011-present). Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (60) | |
| Year of Election or Appointment: 2010 Mr. Gartland is a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-present) and is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (64) | |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Mr. Edward C. Johnson 3d or Ms. Abigail P. Johnson. |
Michael E. Kenneally (57) | |
| Year of Election or Appointment: 2009 Previously, Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity Fixed Income and Asset Allocation Funds (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of the Credit Suisse Funds (U.S. mutual funds, 2004-2008) and certain other closed-end funds (2004-2005) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (71) | |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, since 1998). Prior to his retirement, Mr. Keyes served as Chairman and Chief Executive Officer of Johnson Controls (automotive, building, and energy, 1998-2002) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (65) | |
| 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. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (72) | |
| Year of Election or Appointment: 2005 Mr. Wolfe is Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2008-present). Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Annual Report
Trustees and Officers - continued
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
John R. Hebble (53) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as President (2011-present), Treasurer, and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present), Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Christopher P. Sullivan (57) | |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Bond Funds. Mr. Sullivan also serves as President of Fidelity's Bond Division (2009-present). Mr. Sullivan is Executive Vice President of Fidelity Investments Money Management, Inc. (2009-present), and a Director of Fidelity Management & Research (U.K.) Inc. (2010-present). Previously, Mr. Sullivan served as Managing Director, Co-Head of U.S. Fixed Income at Goldman Sachs Asset Management (2001-2009). |
Christine J. Thompson (53) | |
| Year of Election or Appointment: 2010 Vice President of Fidelity's Bond Funds. Ms. Thompson also serves as Chief Investment Officer of FMR's Bond Group (2010-present) and is an employee of Fidelity Investments. Previously, Ms. Thompson served as Director of Municipal Bond Portfolio Managers (2002-2010). |
Scott C. Goebel (43) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as Secretary of Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); Secretary and CLO of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); employed by FMR LLC or an affiliate (2001-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
David J. Carter (38) | |
| Year of Election or Appointment: 2010 Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Carter also serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2005-present). |
Holly C. Laurent (57) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent also serves as AML Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present) and is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (53) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (44) | |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker also serves as Chief Compliance Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present). Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (50) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009). |
Joseph F. Zambello (54) | |
| Year of Election or Appointment: 2011 Deputy Treasurer of the Fidelity funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Stephanie J. Dorsey (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey also serves as Assistant Treasurer of other Fidelity funds (2010-present) and is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Adrien E. Deberghes (44) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Deberghes also serves as Vice President and Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II (2011-present), Deputy Treasurer of other Fidelity funds (2008-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Kenneth B. Robins (42) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds (2008-present; 2010-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Deputy Treasurer of the Fidelity funds (2005-2008) and Treasurer and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2006-2008). |
Gary W. Ryan (53) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Jonathan Davis (43) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of the Fidelity funds. Mr. Davis is also Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Annual Report
Distributions (Unaudited)
During fiscal year ended 2011, 100% of the fund's income dividends was free from federal income tax, and 3.58% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2012 of amounts for use in preparing 2011 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Municipal Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Nominating and Governance, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2011 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has devoted increased resources to non-U.S. offices. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities which allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and enhancers. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools which permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading capabilities and resources which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers, with 35 new branches opening since 2010.
Annual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) rationalizing product lines through the mergers of six funds into other funds; (iii) continuing to migrate the Freedom Funds to dedicated lower cost underlying funds; (iv) obtaining shareholder approval to broaden the investment strategies for Fidelity Consumer Finance Portfolio, Fidelity Emerging Asia Fund, and Fidelity Environment and Alternative Energy Portfolio; (v) contractually agreeing to reduce the management fees and impose other expense limitations on Spartan 500 Index Fund and U.S. Bond Index Fund in connection with launching new institutional classes of these funds; (vi) changing the name, primary and supplemental benchmarks, and investment policies of Fidelity Global Strategies Fund to support the fund's flexible investment mandate and global orientation; and (vii) reducing the transfer agency account fee rates on certain accounts.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance, as well as the fund's relative investment performance measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2010, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the fund was in the first quartile for the one- and five-year periods and the second quartile for the three-year period. The Board also noted that the investment performance of the fund was lower than its benchmark for the three- and five-year periods, although the fund's one-year total return compared favorably to its benchmark. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 7% means that 93% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Annual Report
Fidelity Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2010.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of the fund's total expense ratio, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current and historical total expense ratios of the fund compared to competitive fund median expenses. The fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the fund's total expense ratio ranked below its competitive median for 2010.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Annual Report
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes; (vi) the reasons why certain expenses affect various funds and classes differently; (vii) Fidelity's transfer agent fees, expenses, and services and how the benefits of decreased costs and new efficiencies can be shared across all of the Fidelity funds; (viii) the reasons for and consequences of changes to certain product lines compared to competitors; (ix) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (x) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
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.
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
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.
Fidelity's Web Site
www.fidelity.com
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Annual Report
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Fidelity®
Ohio Municipal Income Fund
and
Fidelity
Ohio Municipal Money Market
Fund
Annual Report
December 31, 2011
Contents
Chairman's Message | The Chairman's message to shareholders | |
Shareholder Expense Example | An example of shareholder expenses. | |
Fidelity® Ohio Municipal Income Fund | ||
Performance | How the fund has done over time. | |
Management's | The Portfolio Manager's review of fundperformance and strategy. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Fidelity Ohio Municipal Money Market Fund | ||
Investment Changes/ | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
|
Annual Report
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
The investment environment in 2011 was characterized by a number of headline events, most notably the early-August decision by Standard & Poor's to lower the long-term sovereign credit rating of the United States. The historic downgrade followed a stalemate in which Congress struggled to address the debt ceiling, heightening investor anxiety and within a matter of days wiping out a solid first-half advance that was largely driven by encouraging corporate earnings and economic activity. At the same time, investors were becoming increasingly concerned about the sovereign debt crisis in Europe and its potential to derail the U.S. economy, as well as persistently high unemployment. The combination of these factors set off a wave of unusually high volatility that lasted until late in the year, with wide weekly, and even daily, swings fueled largely by the latest developments coming out of the eurozone.
Against this backdrop, equities struggled to gain any significant momentum in the second half, and finished 2011 with only a modest gain, due in part to a strong October. High-grade bonds, meanwhile, benefited from periodic flights to quality and turned in a solid performance, paced by municipal issues and Treasuries.
Financial markets are difficult to predict, of course, but you can help put the odds in your favor by following these time-tested investment principles. One of the basic tenets is to invest according to your time horizon. For long-term investors, riding out the markets' inevitable ups and downs has proven much more effective than making decisions based on short-term developments. If your goal is approaching, you can also benefit from patience and restraint, rather than attempting to time the market.
Asset allocation is another principle to manage risk. As you spread your portfolio among the asset classes, be sure to consider your time horizon, risk tolerance and investment objectives. After deciding on a suitable allocation strategy, make sure your portfolio is adequately diversified, with exposure to stocks of small-, mid- and large-cap companies in a range of sectors, for example.
Lastly, investing a certain amount of money on a regular basis - a principle known as dollar-cost averaging - can help lower the average cost of your purchases, while also giving you the discipline to avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to learn more by visiting us on the Internet, dropping by one of our Investor Centers or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Abigail P. Johnson
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, 2011 to December 31, 2011).
Actual Expenses
The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Fidelity Ohio Municipal Income Fund | .48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,054.90 | $ 2.49 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Fidelity Ohio Municipal Money Market Fund | .20% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.10 | $ 1.01** |
HypotheticalA |
| $ 1,000.00 | $ 1,024.20 | $ 1.02** |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
** If certain fees were not voluntarily waived by FMR or its affiliates during the period, the annualized expense ratio for the Fidelity Ohio Municipal Money Market Fund would have been .52% and the expenses paid in the actual and hypothetical examples above would have been $2.62 and $2.65, respectively.
Annual Report
Fidelity Ohio Municipal Income Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2011 | Past 1 | Past 5 | Past 10 |
Fidelity® Ohio Municipal Income Fund | 9.62% | 4.82% | 5.12% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Ohio Municipal Income Fund on December 31, 2001. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital® Municipal Bond Index performed over the same period.
Annual Report
Fidelity Ohio Municipal Income Fund
Management's Discussion of Fund Performance
Market Recap: Municipal bonds generated a low double-digit return for the 12 months ending December 31, 2011, ranking them as one of the year's best-performing asset classes. The Barclays Capital® Municipal Bond Index - a measure of more than 46,000 tax-exempt investment-grade fixed-rate bonds - advanced 10.70%, significantly outpacing the 7.84% gain of the taxable investment-grade debt market, as measured by the Barclays Capital® U.S. Aggregate Bond Index. In early 2011, muni prices fell due to inflation concern, uncertain tax policy, anticipated heavy supply and the lingering effects of late-2010 headlines forecasting an unprecedented wave of issuer defaults. But in February, munis began what amounted to a virtually uninterrupted rally, as demand surged, supply was muted, widespread defaults didn't materialize and the fiscal health of issuers improved. During the summer, a dimming U.S. economic outlook, unresolved debt woes in Europe and legislative wrangling over the U.S. debt ceiling fueled further demand for munis, as U.S. investors sought haven against global economic uncertainty. The muni sector lost modest ground in October, due in part to the ongoing challenging credit environment and various proposals out of Washington, D.C., that could potentially limit munis' tax-free benefits. However, those losses were quickly erased in November, and munis posted a strong gain in December.
Comments from Jamie Pagliocco, Portfolio Manager of Fidelity® Ohio Municipal Income Fund: For the year, the fund returned 9.62%, while the Barclays Capital Ohio 4+ Year Enhanced Modified 2% Tobacco Municipal Bond Index rose 11.24%. The fund's yield-curve positioning and underweighting in health care bonds were the primary detractors from relative performance. In terms of its yield-curve positioning, modestly overweighting longer-term bonds and underweighting stronger-performing intermediate-maturity securities detracted, as the yield differential between the two widened. The fund's underweighting in health care bonds hurt, because these securities were some of the market's best-performing due to investors' surging appetite for higher-yielding, tax-free bonds. Out-of-benchmark holdings in Puerto Rico bonds bolstered relative performance, as investors were drawn to their relatively high yields and triple-tax-exempt status as a U.S. territory, especially in light of actions taken by the government there to stabilize its fiscal situation. The fund's performance also was aided by a larger-than-index stake in tobacco bonds, which outpaced the Ohio muni market, thanks to their gains in the final months of 2011, when yield-hungry investors gravitated to the group.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Ohio Municipal Income Fund
Investment Changes (Unaudited)
Top Five Sectors as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
General Obligations | 34.5 | 37.1 |
Health Care | 17.8 | 17.4 |
Education | 14.1 | 13.7 |
Water & Sewer | 11.7 | 12.0 |
Special Tax | 4.7 | 4.5 |
Weighted Average Maturity as of December 31, 2011 | ||
|
| 6 months ago |
Years | 5.7 | 7.1 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2011 | ||
|
| 6 months ago |
Years | 7.5 | 7.8 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-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. Duration takes into account any call or put option embedded in the bonds. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2011 | As of June 30, 2011 | ||||||
![]() | AAA 10.0% |
| ![]() | AAA 9.7% |
| ||
![]() | AA,A 78.0% |
| ![]() | AA,A 78.1% |
| ||
![]() | BBB 6.7% |
| ![]() | BBB 6.6% |
| ||
![]() | BB and Below 0.5% |
| ![]() | BB and Below 0.0% |
| ||
![]() | Not Rated 1.0% |
| ![]() | Not Rated 1.2% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Fidelity Ohio Municipal Income Fund
Investments December 31, 2011
Showing Percentage of Net Assets
Municipal Bonds - 96.2% | ||||
| Principal Amount | Value | ||
Guam - 0.3% | ||||
Guam Ed. Fing. Foundation Ctfs. of Prtn. Series 2006 A, 5% 10/1/23 | $ 1,600,000 | $ 1,595,664 | ||
Ohio - 93.5% | ||||
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A: | ||||
5% 1/1/14 | 1,500,000 | 1,575,900 | ||
5% 1/1/15 | 1,275,000 | 1,354,892 | ||
Akron City Non-tax Rev. Econ. Dev. Series 1997, 6% 12/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 440,000 | 462,453 | ||
Akron Ctfs. of Prtn. Series 2005, 5% 12/1/15 (Assured Guaranty Corp. Insured) | 1,475,000 | 1,609,255 | ||
Akron Wtrwks. Rev. Series 2002, 5.25% 12/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,630,000 | 1,702,144 | ||
Allen County Hosp. Facilities Rev. (Catholic Healthcare Partners Proj.) Series 2010 B, 5.25% 9/1/27 | 5,000,000 | 5,314,000 | ||
American Muni. Pwr.-Ohio, Inc. Rev. (Prairie State Energy Campus Proj.): | ||||
Series 2008 A, 5% 2/15/38 | 4,075,000 | 4,200,184 | ||
Series 2009 A, 5.75% 2/15/39 (Assured Guaranty Corp. Insured) | 3,000,000 | 3,277,380 | ||
Avon Gen. Oblig. Series 2009 B: | ||||
5% 12/1/36 | 1,040,000 | 1,107,340 | ||
5% 12/1/37 | 1,095,000 | 1,165,222 | ||
Beavercreek City School District Series 2009, 5% 12/1/36 | 2,250,000 | 2,419,763 | ||
Bowling Green City School District 5% 12/1/34 (FSA Insured) | 2,000,000 | 2,097,280 | ||
Buckeye Tobacco Settlement Fing. Auth.: | ||||
Series 2007 A1: | ||||
5% 6/1/16 | 2,800,000 | 2,972,368 | ||
5% 6/1/17 | 2,865,000 | 3,034,350 | ||
Series 2007 A2, 6.5% 6/1/47 | 3,600,000 | 2,826,288 | ||
Buckeye Valley Local School District Delaware County Series A, 6.85% 12/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,180,000 | 1,278,259 | ||
Bucyrus City School District 5% 12/1/30 (FSA Insured) | 5,120,000 | 5,432,422 | ||
Butler County Hosp. Facilities Rev.: | ||||
(Kettering Health Network Obligated Group Proj.) Series 2011, 6.375% 4/1/36 | 5,000,000 | 5,558,000 | ||
(UC Health Proj.) Series 2010, 5.5% 11/1/40 | 3,000,000 | 3,001,830 | ||
Butler County Sales Tax (Govt. Svcs. Ctr. Proj.) Series A, 5% 12/15/16 (AMBAC Insured) | 2,455,000 | 2,718,814 | ||
Butler County Trans. Impt. District Series 2007, 5% 12/1/18 (XL Cap. Assurance, Inc. Insured) | 1,015,000 | 1,178,273 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Canal Winchester Local School District Series B, 5% 12/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,030,000 | $ 1,118,807 | ||
Chagrin Falls Exempted Village School District Series 2005, 5.25% 12/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,915,000 | 2,112,073 | ||
Cincinnati City School District 5.25% 12/1/18 (FGIC Insured) | 3,000,000 | 3,695,490 | ||
Cincinnati City School District Ctfs. of Prtn. (School Impt. Proj.) 5% 12/15/28 (FSA Insured) | 1,000,000 | 1,083,600 | ||
Cincinnati Gen. Oblig. Series 2009 A: | ||||
4.5% 12/1/29 | 500,000 | 532,355 | ||
5% 12/1/20 | 1,240,000 | 1,481,664 | ||
Cincinnati Wtr. Sys. Rev.: | ||||
Series A, 5% 12/1/36 | 1,750,000 | 1,934,118 | ||
Series B, 5% 12/1/32 | 6,500,000 | 7,037,550 | ||
Cleveland Arpt. Sys. Rev. Series 2000 C, 5% 1/1/20 (FSA Insured) | 3,500,000 | 3,769,955 | ||
Cleveland Gen. Oblig. Series C: | ||||
5.25% 11/15/20 (FGIC Insured) | 1,100,000 | 1,313,015 | ||
5.25% 11/15/21 (FGIC Insured) | 1,145,000 | 1,366,706 | ||
5.25% 11/15/22 (FGIC Insured) | 1,210,000 | 1,440,916 | ||
5.25% 11/15/23 (FGIC Insured) | 1,885,000 | 2,233,103 | ||
Cleveland Muni. School District Series 2004: | ||||
5.25% 12/1/17 (FSA Insured) | 2,215,000 | 2,433,731 | ||
5.25% 12/1/19 (FSA Insured) | 1,045,000 | 1,139,573 | ||
5.25% 12/1/23 (FSA Insured) | 1,000,000 | 1,068,150 | ||
Cleveland Parking Facilities Rev.: | ||||
5.25% 9/15/17 (Escrowed to Maturity) | 1,440,000 | 1,777,018 | ||
5.25% 9/15/17 (FSA Insured) | 3,040,000 | 3,474,112 | ||
Cleveland Pub. Pwr. Sys. Rev. Series 2010: | ||||
5% 11/15/15 | 2,335,000 | 2,597,664 | ||
5% 11/15/16 | 1,820,000 | 2,068,066 | ||
Cleveland State Univ. Gen. Receipts: | ||||
Series 2003 A, 5% 6/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,490,000 | 2,596,871 | ||
Series 2004, 5% 6/1/34 (FGIC Insured) | 4,750,000 | 4,828,280 | ||
Cleveland Wtrwks. Rev.: | ||||
(First Mtg. Prog.): | ||||
Series G, 5.5% 1/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 875,000 | 875,350 | ||
Series H, 5.75% 1/1/16 (Pre-Refunded to 1/1/12 @ 100) | 45,000 | 45,000 | ||
Series 2007 O, 5% 1/1/37 | 3,200,000 | 3,383,424 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Columbus City School District (School Facilities Construction and Impt. Proj.): | ||||
Series 2006, 5% 12/1/18 (FSA Insured) | $ 5,000,000 | $ 5,842,650 | ||
Series 2009 B: | ||||
5% 12/1/26 | 1,805,000 | 2,042,412 | ||
5% 12/1/28 | 3,105,000 | 3,467,291 | ||
5% 12/1/29 | 1,000,000 | 1,110,070 | ||
Columbus Swr. Sys. Rev. Series 2008 A, 5% 6/1/24 | 1,515,000 | 1,702,239 | ||
Cuyahoga Cmnty. College District Gen. Oblig. Series 2009 C: | ||||
5% 8/1/25 | 1,140,000 | 1,277,188 | ||
5% 8/1/27 | 1,200,000 | 1,324,704 | ||
Cuyahoga County Gen. Oblig. Series A, 0% 10/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,405,000 | 1,391,919 | ||
Cuyahoga County Rev. (Cleveland Clinic Health Sys. Obligated Group Prog.) Series 2003 A, 5.5% 1/1/13 | 1,070,000 | 1,122,708 | ||
Dayton School District (School Facility Construction & Impt. Proj.) Series 2003 A, 5% 12/1/31 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,975,000 | 5,088,032 | ||
Dublin City School District 5% 12/1/21 | 1,200,000 | 1,424,292 | ||
Erie County Gen. Oblig. 5.5% 12/1/18 (Pre-Refunded to 6/1/14 @ 100) | 1,265,000 | 1,414,106 | ||
Fairfield City School District 7.45% 12/1/14 (FGIC Insured) | 600,000 | 666,588 | ||
Fairless Local School District 5% 12/1/32 (FSA Insured) | 3,300,000 | 3,408,768 | ||
Fairview Park City School District 5% 12/1/33 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,350,000 | 4,498,248 | ||
Fairview Park Gen. Oblig. 5% 12/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,955,000 | 6,220,712 | ||
Franklin County Convention Facilities Auth. Tax & Lease Rev. 5.25% 12/1/19 (AMBAC Insured) | 4,000,000 | 4,145,040 | ||
Franklin County Hosp. Rev. (Nationwide Children's Hosp. Proj.): | ||||
Series 2009, 5.25% 11/1/40 | 5,000,000 | 5,227,850 | ||
Series A: | ||||
5% 11/1/15 | 260,000 | 292,747 | ||
5% 11/1/16 | 265,000 | 303,597 | ||
Franklin County Rev. (OCLC Online Computer Library Ctr., Inc. Proj.) 5% 4/15/12 | 1,845,000 | 1,863,561 | ||
Gallia County Hosp. Facilities Rev. (Holzer Med. Ctr. Proj.) 5.125% 10/1/13 (AMBAC Insured) | 2,050,000 | 2,056,396 | ||
Gallia County Local School District (School Impt. Proj.) 5% 12/1/33 (FSA Insured) | 3,000,000 | 3,077,280 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Hamilton County Convention Facilities Auth. Rev.: | ||||
5% 12/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,985,000 | $ 2,134,332 | ||
5% 12/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,075,000 | 1,158,786 | ||
5% 12/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,190,000 | 2,339,774 | ||
5% 12/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,130,000 | 1,213,078 | ||
Hamilton County Econ. Dev. Rev. (King Highland Cmnty. Urban Redev. Corp. Proj.) Series A, 5% 6/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,070,000 | 1,202,776 | ||
Hamilton County Hosp. Facilities Rev. (Childrens Hosp. Med. Ctr. Proj.) Series 2004 J: | ||||
5.25% 5/15/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,835,000 | 1,939,118 | ||
5.25% 5/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,585,000 | 2,689,537 | ||
5.25% 5/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,720,000 | 2,811,229 | ||
Hamilton County Sales Tax Rev. Series 2011 A, 5% 12/1/24 | 4,870,000 | 5,433,703 | ||
Hamilton County Student Hsg. Rev. (Stratford Heights Proj.) Series 2010, 5% 6/1/30 (FSA Insured) | 2,500,000 | 2,689,825 | ||
Hamilton County Swr. Sys. Rev.: | ||||
(Metropolitan Swr. District Proj.) Series 2005 B, 5% 12/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,000,000 | 4,232,120 | ||
Series 06A, 5% 12/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,050,000 | 2,379,661 | ||
Hamilton Wtrwks. Rev. 5% 10/15/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,042,910 | ||
Hancock County Hosp. Facilities Rev. (Blanchard Valley Reg'l. Health Ctr. Proj.) Series 2011 A, 6.25% 12/1/34 | 4,100,000 | 4,432,633 | ||
Hilliard Gen. Oblig. 5% 12/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,133,090 | ||
Huber Heights City School District Unltd. Tax School Impt. Gen. Oblig. Series 2009, 5% 12/1/36 | 1,500,000 | 1,598,655 | ||
Huber Heights Wtr. Sys. Rev. 5% 12/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,285,000 | 2,402,221 | ||
Kent City School District Series 2004, 5% 12/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,400,000 | 1,522,920 | ||
Kent State Univ. Revs. Series 2009 B: | ||||
5% 5/1/26 (Assured Guaranty Corp. Insured) | 4,100,000 | 4,496,798 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Kent State Univ. Revs. Series 2009 B: - continued | ||||
5% 5/1/28 (Assured Guaranty Corp. Insured) | $ 5,000,000 | $ 5,416,650 | ||
5% 5/1/29 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,077,350 | ||
5% 5/1/30 (Assured Guaranty Corp. Insured) | 1,115,000 | 1,193,875 | ||
Kings Local School District 5% 12/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,365,000 | 1,522,439 | ||
Lake County Hosp. Facilities Rev. (Lake Hosp. Sys., Inc. Proj.) Series 2008 C: | ||||
5% 8/15/14 | 2,055,000 | 2,179,739 | ||
5% 8/15/15 | 1,160,000 | 1,227,384 | ||
5% 8/15/16 | 1,260,000 | 1,353,114 | ||
5% 8/15/17 | 1,000,000 | 1,067,380 | ||
Lakewood City School District: | ||||
0% 12/1/15 (FSA Insured) | 1,500,000 | 1,380,870 | ||
0% 12/1/16 (FSA Insured) | 1,200,000 | 1,083,636 | ||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.) 5.5% 2/15/12 | 150,000 | 150,711 | ||
Licking Heights Local School District (Facilities Construction & Impt. Proj.) Series A, 5% 12/1/32 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,745,000 | 3,931,127 | ||
Lucas County Hosp. Rev.: | ||||
(Promedia Health Care Oblig. Group Proj.): | ||||
5% 11/15/13 (AMBAC Insured) | 1,135,000 | 1,216,311 | ||
5% 11/15/38 | 1,090,000 | 1,098,121 | ||
(ProMedica Heathcare Oblig. Group Proj.) Series 2011 A, 6.5% 11/15/37 | 2,800,000 | 3,239,432 | ||
Series 2011 D, 5% 11/15/25 | 5,000,000 | 5,378,550 | ||
Lucas-Plaza Hsg. Dev. Corp. Mtg. Rev. (The Plaza Section 8 Assisted Proj.) Series 1991 A, 0% 6/1/24 (Escrowed to Maturity) | 9,000,000 | 6,397,740 | ||
Marysville Village School District 5% 12/1/29 (FSA Insured) | 4,000,000 | 4,227,600 | ||
Marysville Wastewtr. Treatment Sys. Rev.: | ||||
4% 12/1/20 (XL Cap. Assurance, Inc. Insured) | 115,000 | 121,690 | ||
4.125% 12/1/21 (XL Cap. Assurance, Inc. Insured) | 85,000 | 89,573 | ||
4.15% 12/1/22 (XL Cap. Assurance, Inc. Insured) | 25,000 | 26,186 | ||
Miamisburg City School District: | ||||
Series 2008, 5% 12/1/33 | 1,340,000 | 1,422,598 | ||
Series 2009, 5% 12/1/23 (Assured Guaranty Corp. Insured) | 1,405,000 | 1,595,940 | ||
Middleburg Heights Hosp. Rev. Series 2011, 5.25% 8/1/41 | 3,000,000 | 3,049,530 | ||
Milford Exempt Village School District 5.25% 12/1/33 | 5,000,000 | 5,389,300 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Montgomery County Rev.: | ||||
(Catholic Health Initiatives Proj.): | ||||
Series 2008 D, 6.25% 10/1/33 | $ 2,500,000 | $ 2,860,950 | ||
Series C1, 5% 10/1/41 (FSA Insured) | 5,000,000 | 5,144,100 | ||
(Miami Valley Hosp. Proj.) Series 2009 A, 6% 11/15/28 | 2,000,000 | 2,095,440 | ||
Bonds (Catholic Health Initiatives Proj.) Series 2008 D2, 5.25%, tender 11/12/13 (a) | 2,000,000 | 2,164,100 | ||
Series A, 6.25% 11/15/39 | 2,250,000 | 2,358,135 | ||
Montgomery County Wtr. Sys. Rev. Series 2002, 5.375% 11/15/16 (AMBAC Insured) | 2,200,000 | 2,248,158 | ||
North Olmsted Gen. Oblig. Series D, 5.25% 12/1/20 (AMBAC Insured) | 2,075,000 | 2,384,383 | ||
Oak Hills Local School District Facilities Construction and Impt. Series B, 6.9% 12/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 500,000 | 527,270 | ||
Ohio Air Quality Dev. Auth. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.) Series 2008 C, 7.25%, tender 11/1/12 (a)(b) | 2,000,000 | 2,078,920 | ||
Ohio Bldg. Auth. (Adult Correctional Bldg. Fund Proj.): | ||||
Series 2009 B, 5% 10/1/24 | 1,790,000 | 2,026,280 | ||
Series 2010 A, 5% 10/1/24 | 6,030,000 | 6,915,807 | ||
Ohio Gen. Oblig.: | ||||
(College Savings Prog.) 0% 8/1/14 | 1,375,000 | 1,302,070 | ||
(Common Schools Proj.) Series 2006 D, 5% 9/15/21 | 500,000 | 567,165 | ||
(Higher Ed. Cap. Facilities Proj.): | ||||
Series 2002 B, 5.25% 11/1/20 (Pre-Refunded to 11/1/12 @ 100) | 7,020,000 | 7,309,294 | ||
Series 2005 B, 5% 5/1/16 | 1,000,000 | 1,167,850 | ||
(Infrastructure Impt. Proj.): | ||||
Series A, 5% 3/1/26 | 1,850,000 | 2,032,188 | ||
Series D, 5% 3/1/24 | 3,415,000 | 3,686,458 | ||
Series 2006 D, 5% 9/15/20 | 5,000,000 | 5,682,550 | ||
Series 2008 A: | ||||
5.375% 9/1/23 | 1,165,000 | 1,352,076 | ||
5.375% 9/1/28 | 7,210,000 | 8,088,094 | ||
Ohio Higher Edl. Facility Commission Rev.: | ||||
(Case Western Reserve Univ. Proj.): | ||||
Series 1990 B, 6.5% 10/1/20 | 2,335,000 | 2,920,735 | ||
Series 1994: | ||||
6.125% 10/1/15 | 2,000,000 | 2,338,240 | ||
6.25% 10/1/16 | 2,500,000 | 3,036,075 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Ohio Higher Edl. Facility Commission Rev.: - continued | ||||
(Cleveland Clinic Foundation Proj.) Series 2008 A: | ||||
5.25% 1/1/33 | $ 1,635,000 | $ 1,706,597 | ||
5.5% 1/1/43 | 3,500,000 | 3,681,930 | ||
(John Carroll Univ. Proj.) 5% 4/1/17 | 1,000,000 | 1,111,410 | ||
(Kenyon College Proj.) Series 2010, 5.25% 7/1/44 | 2,750,000 | 2,882,303 | ||
(Univ. Hosp. Health Sys. Proj.): | ||||
Series 2007 A, 5.25% 1/15/46 | 4,000,000 | 4,015,680 | ||
Series 2010 A, 5.25% 1/15/23 | 2,500,000 | 2,723,500 | ||
(Univ. of Dayton Proj.): | ||||
Series 2004, 5% 12/1/17 (AMBAC Insured) | 2,170,000 | 2,353,474 | ||
Series 2009, 5.5% 12/1/36 | 5,000,000 | 5,324,250 | ||
Ohio Hosp. Facilities Rev.: | ||||
(Cleveland Clinic Proj.) Series 2009 A, 5.5% 1/1/39 | 7,000,000 | 7,424,340 | ||
Series 2011 A, 5% 1/1/32 | 3,500,000 | 3,681,055 | ||
Ohio Muni. Elec. Gen. Agcy. (Belleville Hydroelectric Proj.) 5% 2/15/17 (AMBAC Insured) | 1,215,000 | 1,285,288 | ||
Ohio Solid Waste Disp. Rev. (Cargill, Inc. Proj.) 4.95% 9/1/20 (b) | 3,000,000 | 3,028,410 | ||
Ohio State Univ. Gen. Receipts: | ||||
Series 2008 A, 5% 12/1/26 | 2,225,000 | 2,513,961 | ||
Series B, 5.25% 6/1/16 | 915,000 | 974,594 | ||
Ohio Tpk. Commission Tpk. Rev.: | ||||
Series 1998 A, 5.5% 2/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000,000 | 3,714,090 | ||
Series 2010 A, 5% 2/15/31 | 5,000,000 | 5,440,750 | ||
Ohio Univ. Gen. Receipts Athens: | ||||
Series 2004, 5% 12/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,980,000 | 2,170,753 | ||
Series A, 5% 12/1/33 (FSA Insured) | 1,190,000 | 1,266,993 | ||
Series B, 5% 12/1/31 (FSA Insured) | 3,540,000 | 3,747,869 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Bonds (FirstEnergy Corp. Proj.) Series 2009 A, 5.875%, tender 6/1/16 (a) | 1,000,000 | 1,123,500 | ||
Ohio Wtr. Dev. Auth. Rev.: | ||||
(Drinking Wtr. Fund Prog.): | ||||
Series 2004, 5% 12/1/17 | 80,000 | 88,434 | ||
Series 2005: | ||||
5.25% 6/1/18 | 2,610,000 | 3,245,274 | ||
5.25% 12/1/18 | 2,610,000 | 3,277,012 | ||
(Fresh Wtr. Impt. Proj.): | ||||
Series 2005, 5.5% 6/1/17 | 4,710,000 | 5,800,224 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Ohio Wtr. Dev. Auth. Rev.: - continued | ||||
(Fresh Wtr. Impt. Proj.): | ||||
Series 2009 B, 5% 12/1/24 | $ 1,025,000 | $ 1,288,087 | ||
Series B, 5.5% 6/1/16 (FSA Insured) | 1,560,000 | 1,865,526 | ||
(Fresh Wtr. Proj.) Series 2009 B, 5% 12/1/25 | 1,950,000 | 2,438,709 | ||
(Pure Wtr. Proj.) Series I, 6% 12/1/16 (Escrowed to Maturity) | 1,110,000 | 1,245,231 | ||
5.25% 12/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,180,000 | 1,363,750 | ||
5.25% 6/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,160,000 | 1,397,069 | ||
Ohio Wtr. Dev. Auth. Wtr. Poll. Cont. Rev.: | ||||
(Wtr. Quality Proj.): | ||||
Series 2010 A: | ||||
5% 12/1/29 | 2,000,000 | 2,249,640 | ||
5% 6/1/30 | 1,000,000 | 1,117,420 | ||
Series 2010, 5% 12/1/22 | 3,000,000 | 3,601,590 | ||
Series 2005 B, 0% 12/1/14 | 1,500,000 | 1,434,600 | ||
5% 6/1/18 (Pre-Refunded to 6/1/14 @ 100) | 425,000 | 470,564 | ||
5% 6/1/18 (Pre-Refunded to 6/1/14 @ 100) | 1,575,000 | 1,739,855 | ||
5.25% 12/1/19 | 1,975,000 | 2,508,290 | ||
Olentangy Local School District: | ||||
5% 12/1/30 (FSA Insured) | 4,025,000 | 4,277,851 | ||
5% 12/1/36 | 2,700,000 | 2,863,674 | ||
Penta Career Ctr. Ctfs. of Prtn.: | ||||
(Ohio School Facilities Proj.) 5.25% 4/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,755,000 | 1,901,753 | ||
(Wood, Lucas, Sandusky, Fulton, Ottawa, Henry and Hancock Counties, Ohio School Facilities Proj.) 5.25% 4/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,940,000 | 2,091,941 | ||
Reynoldsburg City School District (School Facilities Construction & Impt. Proj.): | ||||
0% 12/1/16 | 1,250,000 | 1,117,350 | ||
0% 12/1/17 | 1,250,000 | 1,085,738 | ||
5% 12/1/32 | 1,500,000 | 1,611,135 | ||
Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B: | ||||
6.375% 11/15/22 | 500,000 | 503,290 | ||
6.375% 11/15/30 | 330,000 | 332,020 | ||
RiverSouth Auth. Rev. Series 2005 A, 5.25% 12/1/15 | 1,000,000 | 1,145,410 | ||
Rocky River Gen. Oblig. 5% 12/1/19 (AMBAC Insured) | 2,125,000 | 2,335,014 | ||
Ross County Hosp. Facilities Rev. (Adena Health Sys. Proj.) Series 2008, 5.75% 12/1/35 | 2,600,000 | 2,723,370 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Scioto County Marine Term. Facilities Rev. (Norfolk Southern Corp. Proj.) 5.3% 8/15/13 | $ 3,000,000 | $ 3,004,740 | ||
Sharonville Gen. Oblig. 5.25% 6/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,410,000 | 1,494,233 | ||
Springboro Cmnty. City School District 5.25% 12/1/20 (FSA Insured) | 2,780,000 | 3,381,953 | ||
St. Marys City School District: | ||||
5% 12/1/27 (FSA Insured) | 470,000 | 507,605 | ||
5% 12/1/35 (FSA Insured) | 2,500,000 | 2,598,400 | ||
Strongsville Gen. Oblig. (Street Impt. Proj.) Series 2009, 5% 12/1/27 | 1,680,000 | 1,932,722 | ||
Summit County Gen. Oblig.: | ||||
5.25% 12/1/20 | 1,645,000 | 1,760,759 | ||
5.25% 12/1/21 | 1,740,000 | 1,855,988 | ||
Sylvania City School District Series 2009, 5.25% 12/1/36 (Assured Guaranty Corp. Insured) | 7,055,000 | 7,490,152 | ||
Tallmadge School District Gen. Oblig. 5% 12/1/31 (FSA Insured) | 4,000,000 | 4,187,000 | ||
Toledo City School District (School Facilities Impt. Proj.) Series 2009, 5.375% 12/1/35 | 1,000,000 | 1,080,330 | ||
Toledo Wtrwks. Rev.: | ||||
5% 11/15/16 (AMBAC Insured) | 1,110,000 | 1,187,600 | ||
5% 11/15/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,500,000 | 3,684,030 | ||
Univ. of Akron Gen. Receipts: | ||||
Series A, 5.25% 1/1/30 (FSA Insured) | 3,000,000 | 3,217,740 | ||
Series B, 5% 1/1/27 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,405,000 | 1,439,985 | ||
Univ. of Cincinnati Gen. Receipts: | ||||
Series 2004 A: | ||||
5% 6/1/18 (AMBAC Insured) | 1,445,000 | 1,582,391 | ||
5% 6/1/19 (AMBAC Insured) | 1,520,000 | 1,661,482 | ||
Series 2008 C: | ||||
5% 6/1/22 (FSA Insured) | 1,000,000 | 1,130,670 | ||
5% 6/1/23 (FSA Insured) | 2,000,000 | 2,237,660 | ||
5% 6/1/24 (FSA Insured) | 2,000,000 | 2,213,060 | ||
Series 2010 F, 5% 6/1/32 | 2,000,000 | 2,137,700 | ||
Vandalia-Butler City School District Series 2010, 5% 12/1/38 | 2,170,000 | 2,341,213 | ||
Warren County Gen. Oblig. 6.1% 12/1/12 | 85,000 | 89,495 | ||
West Muskingum Local School District School Facilities Construction and Impt. 5% 12/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,060,000 | 1,064,346 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Wright State Univ. Gen. Receipts: | ||||
Series 2011 A, 5% 5/1/23 | $ 2,665,000 | $ 3,003,109 | ||
5% 5/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,375,000 | 1,470,054 | ||
5% 5/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,440,000 | 1,532,779 | ||
5% 5/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,515,000 | 1,606,233 | ||
| 518,821,753 | |||
Puerto Rico - 1.9% | ||||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.: | ||||
Series KK, 5.5% 7/1/15 | 1,800,000 | 2,012,580 | ||
Series QQ, 5.5% 7/1/17 (XL Cap. Assurance, Inc. Insured) | 1,300,000 | 1,488,825 | ||
Puerto Rico Pub. Bldg. Auth. Rev.: | ||||
Bonds Series M2, 5.75%, tender 7/1/17 (a) | 1,000,000 | 1,098,380 | ||
Series G, 5.25% 7/1/13 | 1,000,000 | 1,017,850 | ||
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev.: | ||||
Series 2007 A: | ||||
0% 8/1/41 (FGIC Insured) | 9,300,000 | 1,541,847 | ||
0% 8/1/45 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,100,000 | 142,087 | ||
0% 8/1/47 (AMBAC Insured) | 1,000,000 | 113,950 | ||
Series 2009 A, 6% 8/1/42 | 1,000,000 | 1,095,320 | ||
Series 2010 C, 6% 8/1/39 | 1,800,000 | 1,984,824 | ||
| 10,495,663 | |||
Virgin Islands - 0.5% | ||||
Virgin Islands Pub. Fin. Auth.: | ||||
(Cruzan Proj.) Series 2009 A, 6% 10/1/39 | 1,000,000 | 1,048,400 | ||
Series 2009 A, 6.75% 10/1/37 | 1,000,000 | 1,094,290 | ||
Series 2009 B, 5% 10/1/25 | 1,000,000 | 1,036,930 | ||
| 3,179,620 |
TOTAL INVESTMENT PORTFOLIO - 96.2% (Cost $504,198,764) | 534,092,700 | ||
NET OTHER ASSETS (LIABILITIES) - 3.8% | 20,849,181 | ||
NET ASSETS - 100% | $ 554,941,881 |
Legend |
(a) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 34.5% |
Health Care | 17.8% |
Education | 14.1% |
Water & Sewer | 11.7% |
Others* (Individually Less Than 5%) | 21.9% |
| 100.0% |
* Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2011 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $504,198,764) |
| $ 534,092,700 |
Cash |
| 17,264,198 |
Receivable for fund shares sold | 138,718 | |
Interest receivable | 4,447,879 | |
Prepaid expenses | 1,211 | |
Other receivables | 373 | |
Total assets | 555,945,079 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 60,050 | |
Distributions payable | 639,456 | |
Accrued management fee | 166,804 | |
Transfer agent fee payable | 73,795 | |
Other affiliated payables | 23,135 | |
Other payables and accrued expenses | 39,958 | |
Total liabilities | 1,003,198 | |
|
|
|
Net Assets | $ 554,941,881 | |
Net Assets consist of: |
| |
Paid in capital | $ 525,145,321 | |
Distributions in excess of net investment income | (5,134) | |
Accumulated undistributed net realized gain (loss) on investments | (92,242) | |
Net unrealized appreciation (depreciation) on investments | 29,893,936 | |
Net Assets, for 46,220,243 shares outstanding | $ 554,941,881 | |
Net Asset Value, offering price and redemption price per share ($554,941,881 ÷ 46,220,243 shares) | $ 12.01 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended December 31, 2011 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 22,562,064 |
|
|
|
Expenses | ||
Management fee | $ 1,918,026 | |
Transfer agent fees | 430,509 | |
Accounting fees and expenses | 133,350 | |
Custodian fees and expenses | 6,171 | |
Independent trustees' compensation | 1,961 | |
Registration fees | 17,464 | |
Audit | 48,311 | |
Legal | 2,847 | |
Miscellaneous | 5,482 | |
Total expenses before reductions | 2,564,121 | |
Expense reductions | (5,182) | 2,558,939 |
Net investment income (loss) | 20,003,125 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 800,331 |
Change in net unrealized appreciation (depreciation) on investment securities | 27,060,115 | |
Net gain (loss) | 27,860,446 | |
Net increase (decrease) in net assets resulting from operations | $ 47,863,571 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Income Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended December 31, 2011 | Year ended December 31, 2010 |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 20,003,125 | $ 21,124,468 |
Net realized gain (loss) | 800,331 | (594,300) |
Change in net unrealized appreciation (depreciation) | 27,060,115 | (9,928,963) |
Net increase (decrease) in net assets resulting | 47,863,571 | 10,601,205 |
Distributions to shareholders from net investment income | (20,007,020) | (21,124,642) |
Distributions to shareholders from net realized gain | - | (188,729) |
Total distributions | (20,007,020) | (21,313,371) |
Share transactions | 81,031,529 | 102,460,893 |
Reinvestment of distributions | 12,501,977 | 13,933,919 |
Cost of shares redeemed | (99,473,703) | (96,159,122) |
Net increase (decrease) in net assets resulting from share transactions | (5,940,197) | 20,235,690 |
Redemption fees | 1,055 | 2,198 |
Total increase (decrease) in net assets | 21,917,409 | 9,525,722 |
|
|
|
Net Assets | ||
Beginning of period | 533,024,472 | 523,498,750 |
End of period (including distributions in excess of net investment income of $5,134 and undistributed net investment income of $11,508, respectively) | $ 554,941,881 | $ 533,024,472 |
Other Information Shares | ||
Sold | 6,982,450 | 8,766,597 |
Issued in reinvestment of distributions | 1,074,162 | 1,190,981 |
Redeemed | (8,656,173) | (8,278,123) |
Net increase (decrease) | (599,561) | 1,679,455 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 11.38 | $ 11.60 | $ 10.87 | $ 11.51 | $ 11.60 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .443 | .447 | .455 | .449 | .444 |
Net realized and unrealized gain (loss) | .630 | (.216) | .737 | (.632) | (.040) |
Total from investment operations | 1.073 | .231 | 1.192 | (.183) | .404 |
Distributions from net investment income | (.443) | (.447) | (.455) | (.449) | (.444) |
Distributions from net realized gain | - | (.004) | (.007) | (.008) | (.050) |
Total distributions | (.443) | (.451) | (.462) | (.457) | (.494) |
Redemption fees added to paid in capital B, D | - | - | - | - | - |
Net asset value, end of period | $ 12.01 | $ 11.38 | $ 11.60 | $ 10.87 | $ 11.51 |
Total Return A | 9.62% | 1.95% | 11.11% | (1.62)% | 3.59% |
Ratios to Average Net Assets C |
|
|
|
|
|
Expenses before reductions | .49% | .49% | .50% | .49% | .49% |
Expenses net of fee waivers, if any | .49% | .49% | .50% | .49% | .49% |
Expenses net of all reductions | .49% | .48% | .50% | .47% | .45% |
Net investment income (loss) | 3.81% | 3.82% | 3.99% | 4.01% | 3.88% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 554,942 | $ 533,024 | $ 523,499 | $ 429,831 | $ 424,400 |
Portfolio turnover rate | 8% | 7% | 10% | 11% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Investment Changes/Performance (Unaudited)
Effective Maturity Diversification | |||
Days | % of fund's investments 12/31/11 | % of fund's investments 6/30/11 | % of fund's |
1 - 7 | 77.0 | 76.6 | 78.9 |
8 - 30 | 0.2 | 1.4 | 0.5 |
31 - 60 | 1.6 | 0.9 | 2.9 |
61 - 90 | 1.7 | 2.5 | 3.1 |
91 - 180 | 12.9 | 9.7 | 10.2 |
> 180 | 6.6 | 8.9 | 4.4 |
Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940. |
Weighted Average Maturity | |||
| 12/31/11 | 6/30/11 | 12/31/10 |
Fidelity Ohio Municipal Money Market Fund | 43 Days | 48 Days | 38 Days |
Ohio Tax-Free Money Market Funds Average* | 37 Days | 38 Days | 38 Days |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Weighted Average Life | |||
| 12/31/11 | 6/30/11 | 12/31/10 |
Fidelity Ohio Municipal Money Market Fund | 43 Days | 48 Days | 38 Days |
Weighted Average Life (WAL) is the weighted average of the life of the securities held in a fund or portfolio and can be used as a measure of sensitivity to changes in liquidity and/or credit risk. Generally, the higher the value, the greater the sensitivity. WAL is based on the dollar-weighted average length of time until principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. The difference between WAM and WAL is that WAM takes into account interest rate resets and WAL does not. WAL for money market funds is not the same as WAL of a mortgage- or asset-backed security. |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2011 | As of June 30, 2011 | ||||||
![]() | Variable Rate |
| ![]() | Variable Rate |
| ||
![]() | Commercial Paper (including CP Mode) 9.0% |
| ![]() | Commercial Paper (including CP Mode) 8.5% |
| ||
![]() | Tender Bonds 1.3% |
| ![]() | Tender Bonds 1.4% |
| ||
![]() | Municipal Notes 7.6% |
| ![]() | Municipal Notes 9.2% |
| ||
![]() | Fidelity Municipal |
| ![]() | Fidelity Municipal |
| ||
![]() | Other Investments 5.7% |
| ![]() | Other Investments 4.8% |
| ||
![]() | Net Other Assets 0.5% |
| ![]() | Net Other Assets** (0.1)% |
|
* Source: iMoneyNet, Inc. |
** Net Other Assets are not included in the pie chart. |
Current and Historical Seven-Day Yields
| 1/2/12 | 10/3/11 | 6/27/11 | 3/28/11 | 1/3/11 |
Fidelity Ohio Municipal Money Market Fund | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it's possible to lose money investing in the fund. A portion of the Fund's expenses was reimbursed and/or waived. Absent such reimbursements and/or waivers the yield for the period ending January 2, 2012, the most recent period shown in the table, would have been -0.35%.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Investments December 31, 2011
Showing Percentage of Net Assets
Municipal Securities - 99.5% | |||
Principal Amount | Value | ||
Florida - 0.3% | |||
Palm Beach County Hsg. Fin. Auth. Multi-family Hsg. Rev. (Renaissance Apts. Proj.) 0.12% 1/6/12, LOC Fannie Mae Guaranteed Mtg. pass-thru certificates, VRDN (b)(e) | $ 3,300,000 | $ 3,300,000 | |
Georgia - 0.1% | |||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. (Georgia Pwr. Co. Plant Vogtle Proj.) Eighth Series 1994, 0.13% 1/3/12, VRDN (b) | 1,110,000 | 1,110,000 | |
Kentucky - 0.2% | |||
Elizabethtown Indl. Bldg. Rev. (Altec Industries, Inc. Proj.) Series 1997, 0.18% 1/6/12, LOC Wells Fargo Bank NA, VRDN (b)(e) | 1,000,000 | 1,000,000 | |
Trimble County Poll. Cont. Rev. Bonds (Louisville Gas & Elec. Co. Proj.) Series A2, 0.45% tender 1/12/12, CP mode (e) | 1,600,000 | 1,600,000 | |
| 2,600,000 | ||
Massachusetts - 0.3% | |||
Massachusetts Indl. Fin. Agcy. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.) Series 1992, 0.6% tender 1/3/12, CP mode | 3,700,000 | 3,700,000 | |
Michigan - 1.8% | |||
Michigan Fin. Auth. Rev. Series 2011 L, 0.24% 1/6/12, LOC Citibank NA, VRDN (b) | 19,500,000 | 19,500,000 | |
New Hampshire - 0.1% | |||
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.) Series 1990 A, 0.6% tender 1/10/12, CP mode (e) | 1,200,000 | 1,200,000 | |
Ohio - 86.9% | |||
Akron Bath Copley Hosp. District Rev.: | |||
(Akron Gen. Health Systems Proj.) Series 2008, 0.1% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 7,000,000 | 7,000,000 | |
Series B, 0.07% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 4,025,000 | 4,025,000 | |
Allen County Hosp. Facilities Rev. (Catholic Healthcare Partners Proj.) Series 2010 D, 0.09% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 38,400,000 | 38,400,000 | |
Alliance Hosp. Rev. (Alliance Obligated Group Proj.) Series 2003, 0.09% 1/3/12, LOC JPMorgan Chase Bank, VRDN (b) | 2,875,000 | 2,875,000 | |
American Muni. Pwr. Bonds (Omega Joint Venture 6 Proj.) 0.3%, tender 2/15/12 (b) | 3,948,000 | 3,948,000 | |
Avon Gen. Oblig. BAN: | |||
Series A, 1% 7/3/12 | 6,500,000 | 6,519,264 | |
Series B, 1% 7/19/12 | 3,285,000 | 3,295,710 | |
Avon Local School District BAN 1% 12/13/12 | 1,675,000 | 1,682,416 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Beachwood Gen. Oblig. BAN 1.5% 8/9/12 | $ 6,000,000 | $ 6,040,398 | |
Cleveland Arpt. Sys. Rev.: | |||
Series 2008 D, 0.07% 1/6/12, LOC PNC Bank NA, VRDN (b) | 3,475,000 | 3,475,000 | |
Series 2009 A, 0.08% 1/6/12, LOC U.S. Bank NA, Minnesota, VRDN (b)(e) | 18,405,000 | 18,405,000 | |
Series 2009 D, 0.07% 1/6/12, LOC PNC Bank NA, VRDN (b) | 11,000,000 | 11,000,000 | |
Cleveland Wtrwks. Rev. Series 2008 Q, 0.11% 1/6/12, LOC Bank of America NA, VRDN (b) | 49,350,000 | 49,350,000 | |
Columbus City School District: | |||
BAN Series 2011, 1% 11/30/12 | 1,325,000 | 1,331,977 | |
Participating VRDN Series 1488, 0.12% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 10,945,000 | 10,945,000 | |
Columbus Gen. Oblig.: | |||
Bonds: | |||
Series 2004-2, 5.5% 7/1/12 | 1,545,000 | 1,585,577 | |
Series 2005 A, 5% 6/15/12 | 3,100,000 | 3,166,264 | |
Participating VRDN Series Clipper 08 2, 0.1% 1/6/12 (Liquidity Facility State Street Bank & Trust Co., Boston) (b)(f) | 4,000,000 | 4,000,000 | |
Cuyahoga County Health Care Facilities Rev. (Altenheim Proj.) 0.12% 1/6/12, LOC U.S. Bank NA, Minnesota, VRDN (b) | 10,690,000 | 10,690,000 | |
Cuyahoga County Hsg. Rev. (Euclid Avenue Hsg. Corp. Proj.) Series 2009 A, 0.07% 1/6/12, LOC PNC Bank NA, VRDN (b) | 10,000,000 | 10,000,000 | |
Cuyahoga County Indl. Dev. Rev. (Pubco Corp. Proj.) Series 2001, 0.21% 1/6/12, LOC PNC Bank NA, VRDN (b)(e) | 610,000 | 610,000 | |
Cuyahoga Falls Gen. Oblig. BAN 1% 12/6/12 | 2,185,000 | 2,194,078 | |
Delaware Gen. Oblig. BAN 1.5% 4/26/12 | 9,800,000 | 9,826,536 | |
Franklin County Hosp. Rev.: | |||
(U.S. Health Corp. of Columbus Proj.) Series 1996 B, 0.07% 1/6/12, LOC U.S. Bank NA, Minnesota, VRDN (b) | 9,115,000 | 9,115,000 | |
Bonds (U.S. Health Corp. of Columbus Proj.) Series 2011 B, 2%, tender 7/2/12 (b) | 9,900,000 | 9,982,469 | |
Participating VRDN Series WF 11 78C, 0.11% 1/6/12 (Liquidity Facility Wells Fargo Bank NA) (b)(f) | 12,035,000 | 12,035,000 | |
Geauga County Rev. (South Franklin Circle Proj.): | |||
Series 2007 A, 0.21% 1/3/12, LOC KeyBank NA, VRDN (b) | 5,195,000 | 5,195,000 | |
Series 2007B, 0.21% 1/3/12, LOC KeyBank NA, VRDN (b) | 2,500,000 | 2,500,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Hamilton County Health Care Facilities Rev.: | |||
(Deaconess Long Term. Care, Inc. Proj.) Series 2000 A, 0.1% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | $ 8,550,000 | $ 8,550,000 | |
(The Children's Home of Cincinnati Proj.) Series 2009, 0.1% 1/6/12, LOC U.S. Bank NA, Minnesota, VRDN (b) | 3,365,000 | 3,365,000 | |
Hamilton County Healthcare Rev. (Life Enriching Cmntys. Proj.): | |||
Series 2006 C, 0.1% 1/6/12, LOC PNC Bank NA, VRDN (b) | 8,620,000 | 8,620,000 | |
Series 2011 B, 0.1% 1/6/12, LOC PNC Bank NA, VRDN (b) | 2,700,000 | 2,700,000 | |
Hamilton County Hosp. Facilities Rev.: | |||
(Children's Hosp. Med. Ctr. Proj.): | |||
Series 1997 A, 0.1% 1/6/12, LOC PNC Bank NA, VRDN (b) | 13,095,000 | 13,095,000 | |
Series 2000, 0.1% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 2,975,000 | 2,975,000 | |
Series 2002 I, 0.1% 1/6/12, LOC U.S. Bank NA, Minnesota, VRDN (b) | 16,970,000 | 16,970,000 | |
Series 2007 M, 0.07% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 1,650,000 | 1,650,000 | |
(Elizabeth Gamble Deaconess Home Assoc. Proj.) Series 2002 B, 0.07% 1/6/12, LOC PNC Bank NA, VRDN (a)(b) | 2,000,000 | 2,000,000 | |
Hamilton County Student Hsg. Rev. (Block 3 Proj.) Series 2004, 0.09% 1/6/12, LOC Bank of New York, New York, VRDN (b) | 9,555,000 | 9,555,000 | |
Independence Gen. Oblig. BAN 1.875% 4/20/12 | 7,100,000 | 7,124,885 | |
Kent State Univ. Revs. Series 2008 B, 0.09% 1/6/12, LOC Bank of America NA, VRDN (b) | 36,850,000 | 36,850,000 | |
Lake County Hosp. Facilities Rev. (Lake Hosp. Sys., Inc. Proj.): | |||
Series 2002, 0.17% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 11,800,000 | 11,800,000 | |
Series 2008 A, 0.09% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 7,000,000 | 7,000,000 | |
Lake County Indl. Dev. Rev. (Norshar Co. Proj.) 0.3% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b)(e) | 2,100,000 | 2,100,000 | |
Lancaster Port Auth. Gas Rev. 0.09% 1/6/12 (Liquidity Facility Royal Bank of Canada), VRDN (b) | 44,445,000 | 44,445,000 | |
Lima Hosp. Rev. (Lima Memorial Hosp. Proj.) 0.1% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 905,000 | 905,000 | |
Lorain County Port Auth. Edl. Facilities Rev. (St. Ignatius High School Proj.) 0.09% 1/6/12, LOC U.S. Bank NA, Minnesota, VRDN (b) | 2,250,000 | 2,250,000 | |
Mason City School District BAN Series 2011, 2% 2/1/12 | 3,300,000 | 3,304,182 | |
Mason Gen. Oblig. BAN 1.5% 6/28/12 | 3,500,000 | 3,517,027 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Miami Univ. Gen. Recpts Bonds Series 2011, 2% 9/1/12 | $ 2,755,000 | $ 2,786,423 | |
Middletown Dev. Rev. (Bishop Fenwick High School Proj.) 0.15% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 9,640,000 | 9,640,000 | |
Montgomery County Rev. Participating VRDN Series Floaters 3260, 0.16% 1/6/12 (Liquidity Facility Morgan Stanley Bank, West Valley City Utah) (b)(f) | 7,565,000 | 7,565,000 | |
Ohio Air Quality Dev. Auth. Rev.: | |||
(Cincinnati Gas & Elec. Co. Proj.): | |||
Series A, 0.32% 1/6/12, VRDN (b) | 2,400,000 | 2,400,000 | |
Series B, 0.29% 1/6/12, VRDN (b) | 2,700,000 | 2,700,000 | |
(Dayton Pwr. & Lt. Co. Proj.) Series 2008 A, 0.11% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b)(e) | 12,700,000 | 12,700,000 | |
(FirstEnergy Corp. Proj.) Series 2006 B, 0.09% 1/6/12, LOC Wells Fargo Bank NA, VRDN (b) | 9,150,000 | 9,150,000 | |
(Ohio Valley Elec. Corp. Proj.): | |||
Series 2009 C, 0.09% 1/6/12, LOC Bank of Tokyo-Mitsubishi UFJ Ltd., VRDN (b) | 12,100,000 | 12,100,000 | |
Series 2009 D, 0.1% 1/6/12, LOC Bank of Tokyo-Mitsubishi UFJ Ltd., VRDN (b) | 7,350,000 | 7,350,000 | |
(Timken Co. Proj.) 0.3% 1/6/12, LOC KeyBank NA, VRDN (b) | 300,000 | 300,000 | |
Ohio Bldg. Auth. Bonds: | |||
(Administrative Bldg. Fund Proj.) Series 2003 A, 5% 4/1/12 | 4,605,000 | 4,656,885 | |
Series 2002 B, 5% 4/1/12 | 7,105,000 | 7,188,144 | |
Series A, 5% 4/1/12 | 1,125,000 | 1,138,003 | |
Ohio Gen. Oblig.: | |||
(Common Schools Proj.) Series 2005 A, 0.06% 1/6/12, VRDN (b) | 13,540,000 | 13,540,000 | |
Bonds: | |||
Series 1992, 6.1% 8/1/12 | 2,000,000 | 2,067,819 | |
Series 2002 C, 5.5% 11/1/12 | 1,000,000 | 1,043,810 | |
Series 2010 A, 5% 11/1/12 | 3,715,000 | 3,862,059 | |
Series A, 5% 6/15/12 (Escrowed to Maturity) | 1,315,000 | 1,342,671 | |
Series I, 5% 5/1/12 | 4,630,000 | 4,703,014 | |
Series II 2004 A, 5% 8/1/12 | 2,500,000 | 2,567,690 | |
Series K, 5% 5/1/12 | 1,150,000 | 1,167,499 | |
5% 3/15/12 (Escrowed to Maturity) | 3,145,000 | 3,174,190 | |
Ohio Higher Edl. Facility Commission Rev.: | |||
(Antioch Univ. Proj.) 0.08% 1/6/12, LOC PNC Bank NA, VRDN (b) | 6,300,000 | 6,300,000 | |
(Case Western Reserve Univ. Proj.) Series 2008 A, 0.1% 1/6/12, LOC PNC Bank NA, VRDN (b) | 27,900,000 | 27,900,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Ohio Higher Edl. Facility Commission Rev.: - continued | |||
(Univ. Hosp. Health Sys. Proj.) Series 2008 B, 0.16% 1/6/12, LOC RBS Citizens NA, VRDN (b) | $ 10,000,000 | $ 10,000,000 | |
(Xavier Univ. Proj.): | |||
Series 2008 A, 0.1% 1/6/12, LOC U.S. Bank NA, Minnesota, VRDN (b) | 3,800,000 | 3,800,000 | |
Series B, 0.1% 1/6/12, LOC U.S. Bank NA, Minnesota, VRDN (b) | 6,460,000 | 6,460,000 | |
Bonds: | |||
(Cleveland Clinic Foundation Proj.): | |||
Series 2008 A, 4% 1/1/12 | 1,200,000 | 1,200,000 | |
Series 2008 B5: | |||
0.25% tender 2/8/12, CP mode | 10,200,000 | 10,200,000 | |
0.28% tender 5/4/12, CP mode | 10,000,000 | 10,000,000 | |
(Denison Univ. Proj.) Series 2004, 5% 11/1/12 | 1,850,000 | 1,921,381 | |
(The Cleveland Clinic Foundation Proj.): | |||
Series 2008 B5: | |||
0.18% tender 3/29/12, CP mode | 10,300,000 | 10,300,000 | |
0.27% tender 5/24/12, CP mode | 7,100,000 | 7,100,000 | |
0.28% tender 5/4/12, CP mode | 12,700,000 | 12,700,000 | |
0.28% tender 6/14/12, CP mode | 2,000,000 | 2,000,000 | |
Series 2008 B6: | |||
0.28% tender 6/22/12, CP mode | 7,300,000 | 7,300,000 | |
0.29% tender 6/21/12, CP mode | 5,000,000 | 5,000,000 | |
Series 2008 B6: | |||
0.27% tender 3/8/12, CP mode | 5,000,000 | 5,000,000 | |
0.28% tender 6/14/12, CP mode | 23,900,000 | 23,900,000 | |
Ohio Hosp. Facilities Rev.: | |||
Bonds Series 2011 A, 0.5% 1/1/12 | 3,805,000 | 3,805,000 | |
Participating VRDN: | |||
Series Putters 3552, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 2,440,000 | 2,440,000 | |
Series Putters 3558, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 1,200,000 | 1,200,000 | |
Ohio Hsg. Fin. Agcy. Mtg. Rev.: | |||
(Mtg.-Backed Securities Prog.): | |||
Series 2005 B1, 0.11% 1/6/12 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (b)(e) | 7,500,000 | 7,500,000 | |
Series 2005 B2, 0.11% 1/6/12 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (b)(e) | 17,500,000 | 17,500,000 | |
Series 2005 F, 0.11% 1/6/12 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (b)(e) | 14,800,000 | 14,800,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Ohio Hsg. Fin. Agcy. Mtg. Rev.: - continued | |||
(Mtg.-Backed Securities Prog.): | |||
Series F, 0.1% 1/6/12 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (b)(e) | $ 2,000,000 | $ 2,000,000 | |
Participating VRDN: | |||
Series Merlots 06 A2, 0.16% 1/6/12 (Liquidity Facility Wells Fargo Bank NA) (b)(e)(f) | 2,515,000 | 2,515,000 | |
Series Putters 1334, 0.18% 1/6/12 (Liquidity Facility JPMorgan Chase & Co.) (b)(e)(f) | 9,210,000 | 9,210,000 | |
Series 2004 D, 0.11% 1/6/12 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (b)(e) | 10,860,000 | 10,860,000 | |
Ohio Hsg. Fin. Agcy. Multi-family Hsg. Rev.: | |||
(Pedcor Invts. Willow Lake Apts. Proj.) Series B, 0.22% 1/6/12, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(e) | 435,000 | 435,000 | |
(Wingate at Belle Meadows Proj.) 0.12% 1/6/12, LOC Fed. Home Ln. Bank, Cincinnati, VRDN (b)(e) | 7,740,000 | 7,740,000 | |
Ohio Hsg. Fin. Agcy. Residential Mtg. Rev.: | |||
(Mtg.-Backed Securities Prog.) Series 2008 D, 0.11% 1/6/12 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (b)(e) | 20,550,000 | 20,550,000 | |
Participating VRDN Series BC 11 115B, 0.11% 1/6/12 (Liquidity Facility Barclays Bank PLC) (b)(e)(f) | 6,090,000 | 6,090,000 | |
Series 2006 I, 0.12% 1/6/12 (Liquidity Facility Citibank NA), VRDN (b)(e) | 17,200,000 | 17,200,000 | |
Series 2008 B, 0.09% 1/6/12 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (b)(e) | 31,000,000 | 31,000,000 | |
Ohio Major New State Infrastructure Rev. Bonds Series 2008-1, 5% 6/15/12 | 1,945,000 | 1,985,784 | |
Ohio State Univ. Gen. Receipts Bonds Series 2005 A, 5% 6/1/12 | 9,600,000 | 9,789,393 | |
Ohio Wtr. Dev. Auth. (Waste Mgmt., Inc. Proj.) Series B, 0.19% 1/6/12, LOC Bank of America NA, VRDN (b)(e) | 6,900,000 | 6,900,000 | |
Ohio Wtr. Dev. Auth. Rev. Bonds Series 2002, 5.375% 6/1/12 | 1,150,000 | 1,174,649 | |
Ohio Wtr. Dev. Auth. Wtr. Poll. Cont. Rev. Bonds: | |||
Series 2003, 5% 12/1/12 | 1,625,000 | 1,695,171 | |
Series 2009, 4% 6/1/12 | 2,230,000 | 2,264,869 | |
Olentangy Local School District Participating VRDN Series Solar 07-7, 0.09% 1/6/12 (Liquidity Facility U.S. Bank NA, Minnesota) (b)(f) | 10,300,000 | 10,300,000 | |
Portage County Hosp. Rev. (Robinson Memorial Hosp. Proj.) Series 2008, 0.11% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 20,405,000 | 20,405,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Rickenbacker Port Auth. Indl. Dev. (Micro Inds. Corp. Proj.) Series 2000, 0.3% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b)(e) | $ 1,105,000 | $ 1,105,000 | |
Stow Gen. Oblig. BAN 1.5% 5/5/12 | 6,475,000 | 6,494,107 | |
Univ. of Cincinnati Gen. Receipts BAN: | |||
Series 2011 B, 2% 5/11/12 | 8,345,000 | 8,389,566 | |
Series 2011 D, 2% 7/19/12 | 6,990,000 | 7,052,795 | |
Series 2011 F, 2% 12/13/12 | 17,000,000 | 17,269,762 | |
Village of Indian Hill Econ. Dev. Rev. (Cincinnati Country Day School Proj.) Series 1999, 0.1% 1/6/12, LOC PNC Bank NA, VRDN (b) | 4,345,000 | 4,345,000 | |
Westlake Health Facilities Rev. (Lutheran Home Proj.) Series 2005, 0.28% 1/6/12, LOC RBS Citizens NA, VRDN (b) | 2,000,000 | 2,000,000 | |
Wood County Indl. Dev. Rev. (CMC Group Proj.) Series 2001, 0.15% 1/6/12, LOC PNC Bank NA, VRDN (b)(e) | 1,070,000 | 1,070,000 | |
Zanesville-Muskingum Port Auth. Indl. Dev. Rev. (Almana II LLC Proj.) Series 2000, 0.75% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b)(e) | 1,950,000 | 1,950,000 | |
| 961,229,467 | ||
Texas - 0.1% | |||
Greater East Texas Higher Ed. Auth. Student Ln. Rev. Series 1995 B, 0.11% 1/6/12, LOC State Street Bank & Trust Co., Boston, VRDN (b)(e) | 1,000,000 | 1,000,000 | |
Virginia - 0.6% | |||
Virginia Hsg. Dev. Auth. Commonwealth Mtg. Rev. Participating VRDN: | |||
Series BA 1047, 0.23% 1/6/12 (Liquidity Facility Bank of America NA) (b)(e)(f) | 3,200,000 | 3,200,000 | |
Series Merlots 06 B21, 0.16% 1/6/12 (Liquidity Facility Wells Fargo Bank NA) (b)(e)(f) | 3,035,000 | 3,035,000 | |
| 6,235,000 | ||
Shares |
| ||
Other - 9.1% | |||
Fidelity Municipal Cash Central Fund, 0.10% (c)(d) | 100,929,000 | 100,929,000 | |
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $1,100,803,467) | 1,100,803,467 | ||
NET OTHER ASSETS (LIABILITIES) - 0.5% | 5,797,207 | ||
NET ASSETS - 100% | $ 1,106,600,674 |
Security Type Abbreviations | ||
BAN | - | BOND ANTICIPATION NOTE |
CP | - | COMMERCIAL PAPER |
VRDN | - | VARIABLE RATE DEMAND NOTE (A debt instrument that is payable upon demand, either daily, weekly or monthly) |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(c) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(d) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(f) Provides evidence of ownership in one or more underlying municipal bonds. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Municipal Cash Central Fund | $ 92,564 |
Other Information |
The date shown for securities represents the date when principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2011 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $999,874,467) | $ 999,874,467 |
|
Fidelity Central Funds (cost $100,929,000) | 100,929,000 |
|
Total Investments (cost $1,100,803,467) |
| $ 1,100,803,467 |
Cash |
| 1,150,404 |
Receivable for securities sold on a delayed delivery basis | 4,500,000 | |
Receivable for fund shares sold | 17,631,109 | |
Interest receivable | 1,412,131 | |
Distributions receivable from Fidelity Central Funds | 8,110 | |
Prepaid expenses | 2,404 | |
Other receivables | 67 | |
Total assets | 1,125,507,692 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 7,000,038 | |
Delayed delivery | 2,000,004 | |
Payable for fund shares redeemed | 9,598,715 | |
Distributions payable | 128 | |
Accrued management fee | 135,609 | |
Other affiliated payables | 139,691 | |
Other payables and accrued expenses | 32,833 | |
Total liabilities | 18,907,018 | |
|
|
|
Net Assets | $ 1,106,600,674 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,106,589,852 | |
Accumulated undistributed net realized gain (loss) on investments | 10,822 | |
Net Assets, for 1,106,120,449 shares outstanding | $ 1,106,600,674 | |
Net Asset Value, offering price and redemption price per share ($1,106,600,674 ÷ 1,106,120,449 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended December 31, 2011 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 2,427,576 |
Income from Fidelity Central Funds |
| 92,564 |
Total income |
| 2,520,140 |
|
|
|
Expenses | ||
Management fee | $ 3,671,045 | |
Transfer agent fees | 1,380,461 | |
Accounting fees and expenses | 117,330 | |
Custodian fees and expenses | 14,928 | |
Independent trustees' compensation | 3,659 | |
Registration fees | 32,764 | |
Audit | 37,658 | |
Legal | 5,264 | |
Miscellaneous | 7,206 | |
Total expenses before reductions | 5,270,315 | |
Expense reductions | (2,850,757) | 2,419,558 |
Net investment income (loss) | 100,582 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| (29) |
Net increase in net assets resulting from operations | $ 100,553 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended December 31, 2011 | Year ended December 31, 2010 |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 100,582 | $ 97,721 |
Net realized gain (loss) | (29) | 50,560 |
Net increase in net assets resulting | 100,553 | 148,281 |
Distributions to shareholders from net investment income | (100,344) | (98,494) |
Share transactions at net asset value of $1.00 per share | 3,000,350,460 | 2,809,374,764 |
Reinvestment of distributions | 99,383 | 97,561 |
Cost of shares redeemed | (2,904,823,286) | (2,828,100,542) |
Net increase (decrease) in net assets and shares resulting from share transactions | 95,626,557 | (18,628,217) |
Total increase (decrease) in net assets | 95,626,766 | (18,578,430) |
|
|
|
Net Assets | ||
Beginning of period | 1,010,973,908 | 1,029,552,338 |
End of period | $ 1,106,600,674 | $ 1,010,973,908 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) | - D | - D | - D | .018 | .032 |
Distributions from net investment income | - D | - D | - D | (.018) | (.032) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return A | .01% | .01% | .15% | 1.77% | 3.22% |
Ratios to Average Net Assets B, C |
|
|
|
|
|
Expenses before reductions | .52% | .52% | .57% | .54% | .52% |
Expenses net of fee waivers, if any | .24% | .37% | .55% | .54% | .52% |
Expenses net of all reductions | .24% | .37% | .55% | .48% | .41% |
Net investment income (loss) | .01% | .01% | .15% | 1.75% | 3.17% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,106,601 | $ 1,010,974 | $ 1,029,552 | $ 1,224,236 | $ 1,217,252 |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed or waived or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements, waivers or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement and waivers but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2011
1. Organization.
Fidelity Ohio Municipal Income Fund (the Income Fund) is a fund of Fidelity Municipal Trust. Fidelity Ohio Municipal Money Market Fund (the Money Market Fund) is a fund of Fidelity Municipal Trust II. Each Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Fidelity Municipal Trust and Fidelity Municipal Trust II (the Trusts) are organized as a Massachusetts business trust and a Delaware statutory trust, respectively. Each Fund is authorized to issue an unlimited number of shares. Each Fund may be affected by economic and political developments in the state of Ohio.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Income Fund uses independent pricing services approved by the Board of Trustees to value their investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
Each Fund categorizes the inputs to valuation techniques used to value their investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
For the Income Fund, changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value each Fund's investments by major category are as follows:
For the Income Fund, debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For municipal securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
For the Money Market Fund, as permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities are valued at amortized cost, which approximates fair value. The amortized cost of an instrument is determined by valuing it at its original cost and thereafter amortizing any discount or premium from its face value at a constant rate until maturity. Securities held by a money market fund are generally high quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value are not quoted prices in an active market.
Annual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day for the Income Fund and trades executed through the end of the current business day for the Money Market Fund. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company, including distributing substantially 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. As of December 31, 2011, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation, capital loss carryforwards, and losses deferred due to futures transactions and excise tax regulations.
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The Funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the IRS will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) on securities and other investments |
Fidelity Ohio Municipal Income Fund | $ 504,204,649 | $ 30,518,451 | $ (630,400) | $ 29,888,051 |
Fidelity Ohio Municipal Money Market Fund | 1,100,803,467 | - | - | - |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed | Undistributed | Capital loss | Net unrealized |
Fidelity Ohio Municipal Income Fund | $ 1,223 | $ 44,219 | $ - | $ 29,888,051 |
Fidelity Ohio Municipal Money Market Fund | 11,071 | - | (36) | - |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. Capital loss carryforwards were as follows:
| No expiration Short-term |
Fidelity Ohio Municipal Money Market Fund | $ (36) |
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
December 31, 2011 | Tax-Exempt | Long-term | Total |
Fidelity Ohio Municipal Income Fund | $ 20,007,020 | $ - | $ 20,007,020 |
Fidelity Ohio Municipal Money Market Fund | 100,344 | - | 100,344 |
December 31, 2010 | Tax-Exempt | Long-term | Total |
Fidelity Ohio Municipal Income Fund | $ 21,124,642 | $ 188,729 | $ 21,313,371 |
Fidelity Ohio Municipal Money Market Fund | 98,494 | - | 98,494 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Income Fund less than 30 days are subject to a redemption fee equal to ..50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. 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 securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable Fund's Schedule of Investments. The Funds may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $40,009,626 and $59,308,567, respectively.
Annual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and an annualized group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by 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 Rate | Group Rate | Total |
Fidelity Ohio Municipal Income Fund | .25% | .12% | .37% |
Fidelity Ohio Municipal Money Market Fund | .25% | .12% | .37% |
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, under which FIIOC performs the activities associated with the Funds' transfer agency, dividend disbursing and shareholder servicing functions. The Funds pay account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Fidelity Ohio Municipal Income Fund | .08% |
Fidelity Ohio Municipal Money Market Fund | .14% |
During the period, FMR or its affiliates waived a portion of these fees for the Money Market Fund.
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains each Fund's accounting records. The fee is based on the level of average net assets for the month.
7. Committed Line of Credit.
The Income Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Fidelity Ohio Municipal Income Fund | $ 1,626 |
During the period, there were no borrowings on this line of credit.
Annual Report
8. Expense Reductions.
FMR or its affiliates voluntarily agreed to waive certain fees for the Money Market Fund in order to maintain a minimum annualized yield of .01%. Such arrangements may be discontinued by FMR at any time. For the period, the amount of the waiver was $2,849,588.
In addition, through arrangements with each applicable Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Custody | Transfer Agent |
|
|
|
Fidelity Ohio Municipal Income Fund | $ 4,290 | $ 892 |
Fidelity Ohio Municipal Money Market Fund | 1,169 | - |
9. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and Fidelity Municipal Trust II and the Shareholders of Fidelity Ohio Municipal Income Fund and Fidelity Ohio Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Ohio Municipal Income Fund (a fund of Fidelity Municipal Trust) and Fidelity Ohio Municipal Money Market Fund (a fund of Fidelity Municipal Trust II) at December 31, 2011, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity 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, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 13, 2012
Annual Report
Trustees and Officers
The Trustees 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, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for James C. Curvey, each of the Trustees oversees 203 funds advised by FMR or an affiliate. Mr. Curvey oversees 429 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Funds' Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Kenneth L. Wolfe serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. The Operations Committee also worked and continues to work with FMR to enhance the stress tests required under SEC regulations for money market funds. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Funds' Trustees."
Annual Report
Trustees and Officers - continued
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Abigail P. Johnson (50) | |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (76) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of Fidelity Investments Money Management, Inc. (2009-present), Director of Fidelity Research & Analysis Co. (2009-present) and Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trusts or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Albert R. Gamper, Jr. (69) | |
| Year of Election or Appointment: 2006 Mr. Gamper is Vice Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2011-present). Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (60) | |
| Year of Election or Appointment: 2010 Mr. Gartland is a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-present) and is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (64) | |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present), and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Mr. Edward C. Johnson 3d or Ms. Abigail P. Johnson. |
Michael E. Kenneally (57) | |
| Year of Election or Appointment: 2009 Previously, Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity Fixed Income and Asset Allocation Funds (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of the Credit Suisse Funds (U.S. mutual funds, 2004-2008) and certain other closed-end funds (2004-2005) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (71) | |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, since 1998). Prior to his retirement, Mr. Keyes served as Chairman and Chief Executive Officer of Johnson Controls (automotive, building, and energy, 1998-2002) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (65) | |
| 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. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (72) | |
| Year of Election or Appointment: 2005 Mr. Wolfe is Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2008-present). Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Annual Report
Trustees and Officers - continued
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
John R. Hebble (53) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as President (2011-present), Treasurer, and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present), Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Christopher P. Sullivan (57) | |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Bond Funds. Mr. Sullivan also serves as President of Fidelity's Bond Division (2009-present). Mr. Sullivan is Executive Vice President of Fidelity Investments Money Management, Inc. (2009-present), and a Director of Fidelity Management & Research (U.K.) Inc. (2010-present). Previously, Mr. Sullivan served as Managing Director, Co-Head of U.S. Fixed Income at Goldman Sachs Asset Management (2001-2009). |
Christine J. Thompson (53) | |
| Year of Election or Appointment: 2010 Vice President of Fidelity's Bond Funds. Ms. Thompson also serves as Chief Investment Officer of FMR's Bond Group (2010-present) and is an employee of Fidelity Investments. Previously, Ms. Thompson served as Director of Municipal Bond Portfolio Managers (2002-2010). |
Robert P. Brown (48) | |
| Year of Election or Appointment: 2010 Vice President of Fidelity's Money Market Funds and Executive Vice President of Fidelity Investments Money Management, Inc. (2010-present). Mr. Brown also serves as President, Money Market Group of FMR (2010-present), Managing Director of Research, Director of Fidelity Management & Research (U.K.) Inc. (2008-present) and is an employee of Fidelity Investments. |
Scott C. Goebel (43) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as Secretary of Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); Secretary and CLO of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); employed by FMR LLC or an affiliate (2001-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
David J. Carter (38) | |
| Year of Election or Appointment: 2010 Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Carter also serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2005-present). |
Holly C. Laurent (57) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent also serves as AML Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present) and is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (53) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (44) | |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker also serves as Chief Compliance Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present). Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (50) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009). |
Joseph F. Zambello (54) | |
| Year of Election or Appointment: 2011 Deputy Treasurer of the Fidelity funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Stephanie J. Dorsey (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey also serves as Assistant Treasurer of other Fidelity funds (2010-present) and is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Adrien E. Deberghes (44) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Deberghes also serves as Vice President and Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II (2011-present), Deputy Treasurer of other Fidelity funds (2008-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Kenneth B. Robins (42) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds (2008-present; 2010-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Deputy Treasurer of the Fidelity funds (2005-2008) and Treasurer and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2006-2008). |
Gary W. Ryan (53) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Jonathan Davis (43) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of the Fidelity funds. Mr. Davis is also Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
Fund | Pay Date | Record Date | Capital Gains |
Fidelity Ohio Municipal Income Fund | 02/06/12 | 02/03/12 | $ 0.002 |
Fidelity Ohio Municipal Money Market Fund | 02/06/12 | 02/03/12 | $ - |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended December 31, 2011, or, if subsequently determined to be different, the net capital gain of such year.
Fund | |
Fidelity Ohio Municipal Income Fund | $ 48,550 |
Fidelity Ohio Municipal Money Market Fund | $ 0 |
During fiscal year ended 2011, 100% of each Fund's income dividends were free from federal income tax, and 1.41% and 20.26% of Fidelity Ohio Municipal Income Fund and Fidelity Ohio Municipal Money Market Fund's income dividends, respectively, were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2012 of amounts for use in preparing 2011 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Ohio Municipal Income Fund / Fidelity Ohio Municipal Money Market Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Nominating and Governance, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2011 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expense ratio; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that each fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' investment personnel and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has devoted increased resources to non-U.S. offices. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities which allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and enhancers. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools which permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading capabilities and resources which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for each fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.
Annual Report
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers, with 35 new branches opening since 2010.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) rationalizing product lines through the mergers of six funds into other funds; (iii) continuing to migrate the Freedom Funds to dedicated lower cost underlying funds; (iv) obtaining shareholder approval to broaden the investment strategies for Fidelity Consumer Finance Portfolio, Fidelity Emerging Asia Fund, and Fidelity Environment and Alternative Energy Portfolio; (v) contractually agreeing to reduce the management fees and impose other expense limitations on Spartan 500 Index Fund and U.S. Bond Index Fund in connection with launching new institutional classes of these funds; (vi) changing the name, primary and supplemental benchmarks, and investment policies of Fidelity Global Strategies Fund to support the fund's flexible investment mandate and global orientation; and (vii) reducing the transfer agency account fee rates on certain accounts.
Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance, as well as each fund's relative investment performance measured over multiple periods against (i) a broad-based securities market index (bond fund only, as money market funds are typically not compared against a market index), and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. For each fund, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2010, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark") (bond fund only), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Ohio Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the fund was in the first quartile for all the periods shown. The Board also noted that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions to improve the fund's below-benchmark performance. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Annual Report
Fidelity Ohio Municipal Money Market Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the fund was in the fourth quartile for the one- and three-year periods and the second quartile for the five-year period. The Board considered that FMR had taken steps to provide shareholders with stability of principal and to enhance safety and liquidity, which contributed to the fund's weakened performance relative to its peer group. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should benefit each fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 36% would mean that 64% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Ohio Municipal Income Fund
Annual Report
Fidelity Ohio Municipal Money Market Fund
The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2010.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each fund's total expense ratio, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current and historical total expense ratios of each fund compared to competitive fund median expenses. Each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that each fund's total expense ratio ranked below its competitive median for 2010. The Board considered that Fidelity has been voluntarily waiving part or all of the transfer agent fees and/or management fees to maintain a minimum yield for Fidelity Ohio Municipal Money Market Fund, and also noted that Fidelity retains the ability to be repaid by the fund in certain circumstances.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that each fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
Annual Report
The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes; (vi) the reasons why certain expenses affect various funds and classes differently; (vii) Fidelity's transfer agent fees, expenses, and services and how the benefits of decreased costs and new efficiencies can be shared across all of the Fidelity funds; (viii) the reasons for and consequences of changes to certain product lines compared to competitors; (ix) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (x) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
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.
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
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.
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 distributions, and the effects of any sales charges.
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
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Cincinnati, OH 45277-0002
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
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Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
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Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
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For directions and hours,
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Annual Report
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Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(U.K.) Inc.
General Distributor
Fidelity Distributors Corporation
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The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
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and Account Assistance 1-800-544-6666
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for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
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Telephone (FAST®) 1-800-544-5555
Automated lines for quickest service
OFF-UANN-0212 1.787739.108
Fidelity®
Pennsylvania Municipal
Income Fund
and
Fidelity
Pennsylvania Municipal
Money Market Fund
Annual Report
December 31, 2011
Contents
Chairman's Message | The Chairman's message to shareholders | |
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Fidelity® Pennsylvania Municipal Income Fund | ||
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Fidelity Pennsylvania Municipal Money Market Fund | ||
Investment Changes/ | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
|
Annual Report
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
The investment environment in 2011 was characterized by a number of headline events, most notably the early-August decision by Standard & Poor's to lower the long-term sovereign credit rating of the United States. The historic downgrade followed a stalemate in which Congress struggled to address the debt ceiling, heightening investor anxiety and within a matter of days wiping out a solid first-half advance that was largely driven by encouraging corporate earnings and economic activity. At the same time, investors were becoming increasingly concerned about the sovereign debt crisis in Europe and its potential to derail the U.S. economy, as well as persistently high unemployment. The combination of these factors set off a wave of unusually high volatility that lasted until late in the year, with wide weekly, and even daily, swings fueled largely by the latest developments coming out of the eurozone.
Against this backdrop, equities struggled to gain any significant momentum in the second half, and finished 2011 with only a modest gain, due in part to a strong October. High-grade bonds, meanwhile, benefited from periodic flights to quality and turned in a solid performance, paced by municipal issues and Treasuries.
Financial markets are difficult to predict, of course, but you can help put the odds in your favor by following these time-tested investment principles. One of the basic tenets is to invest according to your time horizon. For long-term investors, riding out the markets' inevitable ups and downs has proven much more effective than making decisions based on short-term developments. If your goal is approaching, you can also benefit from patience and restraint, rather than attempting to time the market.
Asset allocation is another principle to manage risk. As you spread your portfolio among the asset classes, be sure to consider your time horizon, risk tolerance and investment objectives. After deciding on a suitable allocation strategy, make sure your portfolio is adequately diversified, with exposure to stocks of small-, mid- and large-cap companies in a range of sectors, for example.
Lastly, investing a certain amount of money on a regular basis - a principle known as dollar-cost averaging - can help lower the average cost of your purchases, while also giving you the discipline to avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to learn more by visiting us on the Internet, dropping by one of our Investor Centers or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Abigail P. Johnson
Annual Report
Fidelity® Pennsylvania Municipal Income Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2011 | Past 1 | Past 5 | Past 10 |
Fidelity Pennsylvania Municipal Income Fund | 9.76% | 4.85% | 4.94% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Pennsylvania Municipal Income Fund on December 31, 2001. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds generated a double-digit return for the 12 months ending December 31, 2011, ranking them as one of the year's best-performing asset classes. The Barclays Capital® Municipal Bond Index - a measure of more than 46,000 tax-exempt investment-grade fixed-rate bonds - advanced 10.70%, significantly outpacing the 7.84% gain of the taxable investment-grade debt market, as measured by the Barclays Capital® U.S. Aggregate Bond Index. In early 2011, muni prices fell due to inflation concern, uncertain tax policy, anticipated heavy supply and the lingering effects of late-2010 headlines forecasting an unprecedented wave of issuer defaults. But in February, munis began a virtually uninterrupted rally, as demand surged, supply was muted, widespread defaults didn't materialize and the fiscal health of issuers improved. During the summer, a dimming U.S. economic outlook, unresolved debt woes in Europe and legislative wrangling over the U.S. debt ceiling fueled further demand for munis, as U.S. investors sought haven against global economic uncertainty. The muni sector lost modest ground in October, due in part to the ongoing challenging credit environment and various proposals out of Washington, D.C., that could potentially limit munis' tax-free benefits. Those losses were quickly erased, and munis posted a strong gain when supply was quite limited through period end.
Comments from Mark Sommer, Portfolio Manager of Fidelity® Pennsylvania Municipal Income Fund: For the year, the fund returned 9.76%, while the Barclays Capital Pennsylvania Enhanced Municipal Bond Index rose 10.39%. The fund's overweighting in bonds that were candidates for refunding and its positioning in the health care sector were the primary detractors from relative performance. Many of the fund's holdings in refundable bonds underperformed the index, mostly because their structure prevented them from fully participating in the muni market rally, and because a wave of refunding didn't materialize to the extent I expected. In the health care sector, the fund's underweighting in lower-quality investment-grade securities detracted, because they were some of the Pennsylvania muni market's best performers. Aiding relative performance was the fund's yield-curve positioning, with its overweighting in bonds with maturities around 10 years proving particularly helpful. Maintaining a comparatively light exposure to housing bonds proved advantageous, because they lagged the benchmark due to concern about weak housing market conditions, limited disclosure about the loans backing these bonds and the fact that the securities potentially could be redeemed by their issuer.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2011 to December 31, 2011).
Actual Expenses
The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Fidelity Pennsylvania Municipal Income Fund | .49% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,057.30 | $ 2.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Fidelity Pennsylvania Municipal Money Market Fund | .17% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.10 | $ .86** |
HypotheticalA |
| $ 1,000.00 | $ 1,024.35 | $ .87** |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
** If certain fees were not voluntarily waived by FMR or its affiliates during the period, the annualized expense ratio for the Fidelity Pennsylvania Municipal Money Market Fund would have been 0.50% and the expenses paid in the actual and hypothetical examples above would have been $2.52 and $2.55, respectively.
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Investment Changes (Unaudited)
Top Five Sectors as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
General Obligations | 33.1 | 32.2 |
Health Care | 16.5 | 14.7 |
Transportation | 12.1 | 12.4 |
Education | 12.0 | 12.3 |
Electric Utilities | 9.0 | 9.6 |
Weighted Average Maturity as of December 31, 2011 | ||
|
| 6 months ago |
Years | 5.9 | 6.5 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2011 | ||
|
| 6 months ago |
Years | 7.3 | 7.7 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-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. Duration takes into account any call or put option embedded in the bonds. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2011 | As of June 30, 2011 | ||||||
![]() | AAA 0.1% |
| ![]() | AAA 0.1% |
| ||
![]() | AA,A 84.3% |
| ![]() | AA,A 83.2% |
| ||
![]() | BBB 11.5% |
| ![]() | BBB 13.0% |
| ||
![]() | Not Rated 2.0% |
| ![]() | Not Rated 1.5% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Investments December 31, 2011
Showing Percentage of Net Assets
Municipal Bonds - 97.9% | ||||
| Principal Amount | Value | ||
New Jersey/Pennsylvania - 1.9% | ||||
Delaware River Joint Toll Bridge Commission Pennsylvania-New Jersey Bridge Rev. Series A, 5% 7/1/27 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,425,000 | $ 1,520,632 | ||
Delaware River Port Auth. Pennsylvania & New Jersey Rev.: | ||||
(Port District Proj.) Series 2001 A, 5.5% 1/1/18 (FSA Insured) | 3,000,000 | 3,006,360 | ||
Series 2010 D, 5% 1/1/30 | 3,500,000 | 3,705,415 | ||
| 8,232,407 | |||
Pennsylvania - 95.6% | ||||
Adams County Indl. Dev. Auth. Rev. (Gettysburg College Proj.) Series 2010, 5% 8/15/24 | 1,000,000 | 1,114,590 | ||
Allegheny County: | ||||
Series C-55, 5.375% 11/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,535,000 | 3,658,018 | ||
Series C-62, 5% 11/1/29 | 1,420,000 | 1,496,921 | ||
Allegheny County Arpt. Auth. Rev. (Pittsburg Int'l. Arpt. Proj.) Series B, 5% 1/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (b) | 2,545,000 | 2,717,220 | ||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1: | ||||
5.75% 1/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (b) | 3,000,000 | 3,000,000 | ||
5.75% 1/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (b) | 3,000,000 | 3,198,270 | ||
Allegheny County Higher Ed. Bldg. Auth. Univ. Rev. (Carnegie Mellon Univ. Proj.) Series 2002, 5.25% 3/1/32 | 2,000,000 | 2,005,480 | ||
Allegheny County Hosp. Dev. Auth. Rev.: | ||||
(Pittsburgh Med. Ctr. Proj.) Series A, 5% 9/1/14 | 2,525,000 | 2,765,254 | ||
(Univ. of Pittsburgh Med. Ctr. Proj.) Series 2009 A, 5% 8/15/21 | 2,000,000 | 2,255,820 | ||
Allegheny County Port Auth. Spl. Rev. 5% 3/1/17 | 2,000,000 | 2,289,320 | ||
Allegheny County Sanitation Auth. Swr. Rev.: | ||||
Series 2010, 5% 6/1/40 (FSA Insured) | 6,690,000 | 7,038,281 | ||
Series A, 5% 12/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,725,000 | 1,829,639 | ||
Annville-Cleona School District Series 2005: | ||||
6% 3/1/28 (FSA Insured) | 1,500,000 | 1,636,350 | ||
6% 3/1/31 (FSA Insured) | 1,975,000 | 2,142,717 | ||
Berks County Muni. Auth. Rev. (Reading Hosp. & Med. Ctr. Proj.) Series 2009 A3, 5.25% 11/1/18 | 3,000,000 | 3,532,920 | ||
Bethel Park School District Series 2009, 5% 8/1/29 | 3,000,000 | 3,425,490 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Bucks County Cmnty. College Auth. College Bldg. Rev. 5% 6/15/28 | $ 250,000 | $ 275,860 | ||
Bucks County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania Suburban Wtr. Co. Proj.) Series 2002, 5.55% 9/1/32 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (b) | 1,870,000 | 1,874,488 | ||
Bucks County Wtr. & Swr. Auth. Sys. Rev. Series 2006, 5% 6/1/15 (FSA Insured) | 1,785,000 | 2,000,485 | ||
Butler County Hosp. Auth. Hosp. Rev. (Butler Health Sys. Proj.) Series 2009 B, 7.125% 7/1/29 | 1,000,000 | 1,132,050 | ||
Canon McMillan School District Series 2002 B, 5.75% 12/1/35 (FGIC Insured) | 2,500,000 | 2,548,050 | ||
Centennial School District: | ||||
Series 2010 A, 5% 12/15/30 | 3,000,000 | 3,379,800 | ||
Series A, 5.25% 12/15/37 (FSA Insured) | 5,000,000 | 5,496,400 | ||
Central Bradford Prog. Auth. Rev. Series 2011, 5.375% 12/1/41 | 2,000,000 | 2,097,760 | ||
Centre County Hosp. Auth. Rev. (Mount Nittany Med. Ctr. Proj.) Series 2011, 7% 11/15/46 | 2,000,000 | 2,251,800 | ||
Chambersburg Area School District Series 2007: | ||||
5.25% 3/1/26 (FGIC Insured) | 2,000,000 | 2,150,320 | ||
5.25% 3/1/27 (FGIC Insured) | 2,000,000 | 2,143,160 | ||
5.25% 3/1/29 (FGIC Insured) | 3,600,000 | 3,833,352 | ||
Dauphin County Gen. Auth. (Pinnacle Health Sys. Proj.) Series 2009 A, 5.25% 6/1/17 | 3,000,000 | 3,267,210 | ||
Delaware County Auth. College Rev. (Haverford College Proj.) Series 2010 A, 5% 11/15/31 | 4,090,000 | 4,511,147 | ||
Delaware County Auth. Univ. Rev. Series 2010, 5.25% 12/1/31 | 2,450,000 | 2,694,045 | ||
Delaware County Reg'l. Wtr. Quality Cont. Auth. Swr. Rev. Series 2001, 5.25% 5/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,165,000 | 2,171,452 | ||
East Stroudsburg Area School District: | ||||
Series 2007 A: | ||||
7.5% 9/1/22 | 1,000,000 | 1,270,590 | ||
7.75% 9/1/27 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 8,200,000 | 10,144,384 | ||
Series 2007, 7.75% 9/1/28 (Pre-Refunded to 9/1/16 @ 100) | 2,750,000 | 3,615,755 | ||
Easton Area School District Series 2006: | ||||
7.5% 4/1/22 (FSA Insured) | 2,700,000 | 3,261,384 | ||
7.75% 4/1/25 (FSA Insured) | 875,000 | 1,045,380 | ||
Erie County Hosp. Auth. Rev. (Saint Vincent Health Ctr. Proj.) Series 2010 A, 7% 7/1/27 | 1,750,000 | 1,809,833 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Franklin County Indl. Dev. Auth. (The Chambersburg Hosp. Proj.) Series 2010: | ||||
5.3% 7/1/30 | $ 1,770,000 | $ 1,823,631 | ||
5.375% 7/1/42 | 1,130,000 | 1,149,628 | ||
Harrisburg Auth. Dauphin County School Rev. (Harrisburg School District Rfdg. Proj.) Series 2002 A, 5.5% 4/1/14 (Pre-Refunded to 4/1/12 @ 100) | 1,655,000 | 1,675,936 | ||
Harrisburg Auth. Wtr. Rev. Series 2001 A, 5.75% 7/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 575,000 | 576,317 | ||
Kennett Consolidated School District Series A, 5.25% 2/15/15 (FGIC Insured) | 705,000 | 736,972 | ||
Lancaster County Hosp. Auth. Health Ctr. Rev. (Masonic Homes Proj.) Series 2006, 5% 11/1/20 | 1,065,000 | 1,125,098 | ||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) Series 2009, 5.5% 12/1/39 | 2,500,000 | 2,685,300 | ||
Lycoming County Auth. Health Sys. Rev. (Susquehanna Health Sys.) Series 2009 A, 5.5% 7/1/21 | 3,500,000 | 3,713,570 | ||
Mifflin County School District Series 2007: | ||||
7.5% 9/1/26 (XL Cap. Assurance, Inc. Insured) | 1,125,000 | 1,374,030 | ||
7.75% 9/1/30 (XL Cap. Assurance, Inc. Insured) | 1,175,000 | 1,430,480 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.): | ||||
Series 2009 A, 5% 6/1/17 | 2,000,000 | 2,221,360 | ||
Series A, 6% 6/1/16 (AMBAC Insured) | 1,000,000 | 1,143,330 | ||
Montgomery County Higher Ed. & Health Auth. Rev. (Dickinson College Proj.) Series 2006 FF1, 5% 5/1/28 (CDC IXIS Finl. Guaranty Insured) | 900,000 | 939,348 | ||
Mount Lebanon School District Series 2009 A: | ||||
5% 2/15/15 | 500,000 | 556,060 | ||
5% 2/15/34 | 2,250,000 | 2,421,135 | ||
Muhlenberg School District Series AA, 5.375% 9/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,055,000 | 1,085,701 | ||
North Hampton County Gen. Purp. Auth. Hosp. Rev. (St. Luke's Hosp. Proj.) Series 2010 A: | ||||
5.25% 8/15/16 | 1,245,000 | 1,359,142 | ||
5.25% 8/15/18 | 1,450,000 | 1,558,678 | ||
Oxford Area School District 5.375% 2/1/27 (FGIC Insured) | 1,790,000 | 1,925,396 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev.: | ||||
(Amtrak Proj.) Series 2001 A: | ||||
6.25% 11/1/31 (b) | $ 3,300,000 | $ 3,321,978 | ||
6.375% 11/1/41 (b) | 1,300,000 | 1,311,284 | ||
Bonds: | ||||
(Exelon Generation Proj.) Series 2009 A, 5%, tender 6/1/12 (a) | 3,100,000 | 3,152,080 | ||
(PPL Energy Supply LLC Proj.) Series 2009 A, 3%, tender 9/1/15 (a) | 2,000,000 | 2,059,420 | ||
Pennsylvania Econ. Dev. Fing. Auth. Health Sys. Rev. (Albert Einstein Med. Ctr. Proj.) Series 2009 A, 5.25% 10/15/15 | 2,000,000 | 2,120,560 | ||
Pennsylvania Econ. Dev. Fing. Auth. Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) Series 2010 B, 0.95%, tender 1/3/12 (a) | 3,500,000 | 3,500,000 | ||
Pennsylvania Gen. Oblig.: | ||||
First Series 2002, 5.25% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) | 125,000 | 125,455 | ||
First Series 2007 A, 5% 11/1/23 | 9,710,000 | 11,228,061 | ||
First Series 2008, 5% 5/15/27 | 805,000 | 900,545 | ||
First Series 2009, 5% 3/15/27 | 3,000,000 | 3,469,560 | ||
First Series 2011, 5% 11/15/25 | 11,000,000 | 13,135,095 | ||
Second Series 2007 A, 5% 8/1/25 | 2,500,000 | 2,830,125 | ||
Second Series 2009: | ||||
5% 4/15/25 | 500,000 | 584,500 | ||
5% 4/15/28 | 5,000,000 | 5,765,750 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Slippery Rock Univ. Proj.) Series 2007 A, 5% 7/1/39 (XL Cap. Assurance, Inc. Insured) | 2,500,000 | 2,392,075 | ||
(Univ. of Pennsylvania Health Sys. Proj.): | ||||
Series 2005 A, 5% 8/15/17 | 3,000,000 | 3,368,820 | ||
Series 2009 A, 5.25% 8/15/22 | 2,655,000 | 3,037,347 | ||
Series 2011 A, 5.75% 8/15/41 | 4,980,000 | 5,477,452 | ||
Series 2010 E, 5% 5/15/31 | 2,500,000 | 2,614,525 | ||
Series 2010: | ||||
5% 9/1/30 | 1,150,000 | 1,296,108 | ||
5% 9/1/31 | 1,025,000 | 1,147,037 | ||
Pennsylvania Indl. Dev. Auth. Rev.: | ||||
5.5% 7/1/16 (AMBAC Insured) | 1,035,000 | 1,068,006 | ||
5.5% 7/1/16 (Pre-Refunded to 7/1/12 @ 101) | 45,000 | 46,596 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Pennsylvania State Univ.: | ||||
Series 2005, 5% 9/1/29 | $ 1,550,000 | $ 1,664,855 | ||
Series 2008 A, 5% 8/15/29 | 3,945,000 | 4,290,503 | ||
Series 2010: | ||||
5% 3/1/22 | 2,640,000 | 3,109,207 | ||
5% 3/1/40 | 3,635,000 | 3,870,039 | ||
Pennsylvania Tpk. Commission Oil Franchise Tax Rev. Series 2003 C, 5% 12/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000,000 | 3,229,980 | ||
Pennsylvania Tpk. Commission Tpk. Rev.: | ||||
Series 2004 A, 5.25% 12/1/32 (AMBAC Insured) | 2,900,000 | 3,045,493 | ||
Series 2006 A: | ||||
5% 12/1/23 (AMBAC Insured) | 7,695,000 | 8,375,238 | ||
5% 12/1/25 (AMBAC Insured) | 7,345,000 | 7,909,096 | ||
5% 12/1/26 (AMBAC Insured) | 3,500,000 | 3,750,915 | ||
Series 2008 B1, 5.5% 6/1/33 | 4,000,000 | 4,243,120 | ||
Series 2008 C4, 6.25% 6/1/38 (Assured Guaranty Corp. Insured) | 2,000,000 | 2,249,580 | ||
Philadelphia Auth. Indl. Dev. Lease Rev. Series 2007 A, 5% 10/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,500,000 | 1,563,360 | ||
Philadelphia Gas Works Rev.: | ||||
(1975 Gen. Ordinance Proj.): | ||||
Eighteenth Series: | ||||
5.25% 8/1/17 (Assured Guaranty Corp. Insured) | 1,500,000 | 1,610,265 | ||
5.25% 8/1/19 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,067,560 | ||
5.25% 8/1/20 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,062,420 | ||
Seventeenth Series, 5.375% 7/1/20 (FSA Insured) | 2,700,000 | 2,805,894 | ||
(1998 Gen. Ordinance Proj.): | ||||
Fifth Series A1: | ||||
5% 9/1/33 (FSA Insured) | 2,800,000 | 2,831,024 | ||
5.25% 9/1/17 (Assured Guaranty Corp. Insured) | 3,665,000 | 3,937,933 | ||
5.25% 9/1/18 (Assured Guaranty Corp. Insured) | 3,340,000 | 3,579,812 | ||
Ninth Series, 5.25% 8/1/40 | 5,595,000 | 5,633,158 | ||
Seventh Series, 5% 10/1/37 (AMBAC Insured) | 5,245,000 | 5,214,527 | ||
Philadelphia Gen. Oblig.: | ||||
Series 2008 A, 5.25% 12/15/32 (FSA Insured) | 6,000,000 | 6,294,840 | ||
Series 2008 B, 7.125% 7/15/38 (Assured Guaranty Corp. Insured) | 3,550,000 | 4,033,546 | ||
Philadelphia Hospitals & Higher Ed. Facilities Auth. Health Systems Rev. (Jefferson Health Sys. Proj.) Series 2010 B, 5.25% 5/15/30 | 4,000,000 | 4,264,280 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Philadelphia Hospitals & Higher Ed. Facilities Auth. Hosp. Rev. (Children's Hosp. of Philadelphia Proj.) Series 2011 D, 5% 7/1/32 | $ 2,500,000 | $ 2,649,150 | ||
Philadelphia Redev. Auth. Rev. (Philadelphia Neighborhood Transformation Initiative Proj.): | ||||
Series 2002 A, 5.5% 4/15/13 (FGIC Insured) | 2,810,000 | 2,846,614 | ||
Series 2005 C, 5% 4/15/31 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,017,150 | ||
Philadelphia School District: | ||||
Series 2005 A, 5% 8/1/22 (AMBAC Insured) | 2,900,000 | 3,058,775 | ||
Series 2005 D, 5.5% 6/1/16 (FSA Insured) | 2,030,000 | 2,306,121 | ||
Series 2010 C, 5% 9/1/21 | 4,000,000 | 4,485,800 | ||
Philadelphia Wtr. & Wastewtr. Rev.: | ||||
Series 2010 C, 5% 8/1/40 (FSA Insured) | 4,000,000 | 4,187,160 | ||
Series 2011 A, 5% 1/1/41 | 2,715,000 | 2,834,840 | ||
Series A: | ||||
5% 11/1/31 (FGIC Insured) | 400,000 | 403,408 | ||
5.375% 11/1/19 (Pre-Refunded to 11/1/12 @ 100) | 3,000,000 | 3,126,720 | ||
Pittsburgh Gen. Oblig.: | ||||
Series 2002 A, 5.5% 9/1/16 (AMBAC Insured) | 2,565,000 | 2,581,057 | ||
Series 2006 B: | ||||
5.25% 9/1/15 (FSA Insured) | 2,000,000 | 2,223,500 | ||
5.25% 9/1/16 (FSA Insured) | 3,000,000 | 3,411,240 | ||
Pittsburgh Wtr. & Swr. Auth. Wtr. & Swr. Sys. Rev. Series 1993 A: | ||||
6.5% 9/1/13 (Escrowed to Maturity) | 3,435,000 | 3,647,249 | ||
6.5% 9/1/13 (FGIC Insured) | 3,435,000 | 3,603,418 | ||
Scranton-Lackawanna Health & Welfare Auth. Rev. (Cmnty. Med. Ctr. Proj.) 5.5% 7/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,375,000 | 3,382,560 | ||
South Fork Muni. Auth. Hosp. Rev. (Conemaugh Health Sys. Proj.) Series 2010, 5.25% 7/1/23 | 1,000,000 | 989,800 | ||
Southcentral Pennsylvania Gen. Auth. Rev. (WellSpan Health Obligated Group Proj.) Series 2008 A, 6% 6/1/25 | 2,500,000 | 2,813,025 | ||
Southeastern Pennsylvania Trans. Auth. Rev. Series 2010, 5% 3/1/16 | 1,500,000 | 1,698,405 | ||
State Pub. School Bldg. Auth. College Rev.: | ||||
(Delaware County Cmnty. College Proj.) Series 2008, 5% 10/1/20 (FSA Insured) | 1,000,000 | 1,161,100 | ||
(Montgomery County Cmnty. College Proj.): | ||||
Series 2008: | ||||
5% 5/1/27 (FSA Insured) | 1,775,000 | 1,944,779 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
State Pub. School Bldg. Auth. College Rev.: - continued | ||||
(Montgomery County Cmnty. College Proj.): | ||||
Series 2008: | ||||
5% 5/1/28 (FSA Insured) | $ 1,000,000 | $ 1,089,690 | ||
Unionville-Chadds Ford School District Gen. Oblig. Series 2009 A, 5% 6/1/32 | 3,000,000 | 3,338,820 | ||
Univ. of Pittsburgh Commonwealth Sys. of Higher Ed. (Univ. Cap. Proj.): | ||||
Series 2000 B, 5.25% 9/15/34 | 2,000,000 | 2,221,380 | ||
Series 2000 C, 5% 9/15/35 | 2,000,000 | 2,168,440 | ||
Series 2007 B, 5.25% 9/15/28 | 2,500,000 | 2,872,700 | ||
Series 2009 A, 5% 9/15/16 | 1,150,000 | 1,355,218 | ||
Series 2009 B: | ||||
5% 9/15/28 | 2,000,000 | 2,269,480 | ||
5.5% 9/15/24 | 5,250,000 | 6,350,190 | ||
West Shore Area Auth. Hosp. Series 2011 B, 5.75% 1/1/41 | 1,500,000 | 1,511,325 | ||
Westmoreland County Gen. Oblig. Series 1992, 0% 8/1/15 (Escrowed to Maturity) | 4,290,000 | 4,109,048 | ||
Westmoreland County Indl. Dev. Auth. Rev. (Excela Health Proj.) Series 2010 A, 5% 7/1/25 | 4,365,000 | 4,511,315 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series 2001 A: | ||||
0% 8/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000,000 | 3,923,800 | ||
0% 8/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,500,000 | 1,863,750 | ||
0% 8/15/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,550,000 | 4,393,085 | ||
Wilson School District Series 2007, 5.25% 6/1/25 (XL Cap. Assurance, Inc. Insured) | 5,740,000 | 6,344,020 | ||
York City Swr. Auth. Swr. Rev. Series 1990, 0% 12/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,235,000 | 3,181,784 | ||
| 406,047,047 | |||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Puerto Rico - 0.4% | ||||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.: | ||||
Series II, 5.375% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,000,000 | $ 1,028,680 | ||
Series QQ, 5.25% 7/1/13 (XL Cap. Assurance, Inc. Insured) | 500,000 | 527,735 | ||
| 1,556,415 |
TOTAL INVESTMENT PORTFOLIO - 97.9% (Cost $395,206,495) | 415,835,869 | ||
NET OTHER ASSETS (LIABILITIES) - 2.1% | 8,856,717 | ||
NET ASSETS - 100% | $ 424,692,586 |
Legend |
(a) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 33.1% |
Health Care | 16.5% |
Transportation | 12.1% |
Education | 12.0% |
Electric Utilities | 9.0% |
Water & Sewer | 8.1% |
Others* (Individually Less Than 5%) | 9.2% |
| 100.0% |
* Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2011 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $395,206,495) |
| $ 415,835,869 |
Cash |
| 5,440,095 |
Receivable for fund shares sold | 1,529,822 | |
Interest receivable | 5,136,605 | |
Prepaid expenses | 890 | |
Other receivables | 158 | |
Total assets | 427,943,439 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 2,500,000 | |
Payable for fund shares redeemed | 29,302 | |
Distributions payable | 479,901 | |
Accrued management fee | 127,886 | |
Other affiliated payables | 73,992 | |
Other payables and accrued expenses | 39,772 | |
Total liabilities | 3,250,853 | |
|
|
|
Net Assets | $ 424,692,586 | |
Net Assets consist of: |
| |
Paid in capital | $ 404,430,984 | |
Undistributed net investment income | 6,346 | |
Accumulated undistributed net realized gain (loss) on investments | (374,118) | |
Net unrealized appreciation (depreciation) on investments | 20,629,374 | |
Net Assets, for 38,269,961 shares outstanding | $ 424,692,586 | |
Net Asset Value, offering price and redemption price per share ($424,692,586 ÷ 38,269,961 shares) | $ 11.10 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Financial Statements - continued
Statement of Operations
| Year ended December 31, 2011 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 17,799,696 |
|
|
|
Expenses | ||
Management fee | $ 1,491,112 | |
Transfer agent fees | 347,066 | |
Accounting fees and expenses | 105,643 | |
Custodian fees and expenses | 4,883 | |
Independent trustees' compensation | 1,528 | |
Registration fees | 19,660 | |
Audit | 48,113 | |
Legal | 2,760 | |
Miscellaneous | 4,446 | |
Total expenses before reductions | 2,025,211 | |
Expense reductions | (2,429) | 2,022,782 |
Net investment income (loss) | 15,776,914 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| (233,547) |
Change in net unrealized appreciation (depreciation) on investment securities | 21,854,173 | |
Net gain (loss) | 21,620,626 | |
Net increase (decrease) in net assets resulting from operations | $ 37,397,540 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 15,776,914 | $ 17,454,333 |
Net realized gain (loss) | (233,547) | 3,552,307 |
Change in net unrealized appreciation (depreciation) | 21,854,173 | (12,209,214) |
Net increase (decrease) in net assets resulting | 37,397,540 | 8,797,426 |
Distributions to shareholders from net investment income | (15,776,599) | (17,451,496) |
Distributions to shareholders from net realized gain | - | (3,009,138) |
Total distributions | (15,776,599) | (20,460,634) |
Share transactions | 76,315,039 | 118,061,292 |
Reinvestment of distributions | 9,732,684 | 12,823,852 |
Cost of shares redeemed | (113,940,721) | (116,832,055) |
Net increase (decrease) in net assets resulting from share transactions | (27,892,998) | 14,053,089 |
Redemption fees | 3,483 | 2,582 |
Total increase (decrease) in net assets | (6,268,574) | 2,392,463 |
|
|
|
Net Assets | ||
Beginning of period | 430,961,160 | 428,568,697 |
End of period (including undistributed net investment income of $6,346 and undistributed net investment income of $8,857, respectively) | $ 424,692,586 | $ 430,961,160 |
Other Information Shares | ||
Sold | 7,114,011 | 10,861,145 |
Issued in reinvestment of distributions | 904,776 | 1,186,141 |
Redeemed | (10,739,144) | (10,814,866) |
Net increase (decrease) | (2,720,357) | 1,232,420 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.51 | $ 10.78 | $ 10.21 | $ 10.73 | $ 10.78 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss)B | .415 | .418 | .407 | .416 | .419 |
Net realized and unrealized gain (loss) | .590 | (.197) | .569 | (.497) | (.005) |
Total from investment operations | 1.005 | .221 | .976 | (.081) | .414 |
Distributions from net investment income | (.415) | (.418) | (.407) | (.416) | (.419) |
Distributions from net realized gain | - | (.073) | - | (.023) | (.045) |
Total distributions | (.415) | (.491) | (.407) | (.439) | (.464) |
Redemption fees added to paid in capitalB | -D | -D | .001 | -D | -D |
Net asset value, end of period | $ 11.10 | $ 10.51 | $ 10.78 | $ 10.21 | $ 10.73 |
Total ReturnA | 9.76% | 2.02% | 9.70% | (.77)% | 3.94% |
Ratios to Average Net AssetsC |
|
|
|
|
|
Expenses before reductions | .50% | .50% | .51% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .51% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .51% | .46% | .46% |
Net investment income (loss) | 3.87% | 3.85% | 3.84% | 3.96% | 3.92% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 424,693 | $ 430,961 | $ 428,569 | $ 326,566 | $ 315,463 |
Portfolio turnover rate | 12% | 19% | 8% | 17% | 19% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Investment Changes/Performance (Unaudited)
Effective Maturity Diversification | |||
Days | % of fund's investments 12/31/11 | % of fund's investments 6/30/11 | % of fund's |
1 - 7 | 86.3 | 82.3 | 81.4 |
8 - 30 | 0.6 | 3.5 | 1.8 |
31 - 60 | 4.2 | 3.6 | 5.6 |
61 - 90 | 1.0 | 3.1 | 0.0 |
91 - 180 | 4.3 | 2.2 | 4.5 |
> 180 | 3.6 | 5.3 | 6.7 |
Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940. |
Weighted Average Maturity | |||
| 12/31/11 | 6/30/11 | 12/31/10 |
Fidelity Pennsylvania Municipal Money Market Fund | 22 Days | 26 Days | 29 Days |
Pennsylvania Tax-Free Money Market Funds Average* | 25 Days | 26 Days | 27 Days |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Weighted Average Life | |||
| 12/31/11 | 6/30/11 | 12/31/10 |
Fidelity Pennsylvania Municipal Money Market Fund | 22 Days | 29 Days | 29 Days |
Weighted Average Life (WAL) is the weighted average of the life of the securities held in a fund or portfolio and can be used as a measure of sensitivity to changes in liquidity and/or credit risk. Generally, the higher the value, the greater the sensitivity. WAL is based on the dollar-weighted average length of time until principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. The difference between WAM and WAL is that WAM takes into account interest rate resets and WAL does not. WAL for money market funds is not the same as WAL of a mortgage- or asset-backed security. |
* Source: iMoneyNet, Inc.
Annual Report
Investment Changes (Unaudited) - continued
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2011 | As of June 30, 2011 | ||||||
![]() | Variable Rate |
| ![]() | Variable Rate |
| ||
![]() | Commercial Paper (including CP Mode) 4.5% |
| ![]() | Commercial Paper (including CP Mode) 6.8% |
| ||
![]() | Tender Bonds 1.1% |
| ![]() | Tender Bonds 1.1% |
| ||
![]() | Municipal Notes 2.3% |
| ![]() | Municipal Notes 1.0% |
| ||
![]() | Fidelity Municipal |
| ![]() | Fidelity Municipal |
| ||
![]() | Other Investments 8.8% |
| ![]() | Other Investments 12.4% |
| ||
![]() | Net Other Assets 1.5% |
| ![]() | Net Other Assets 6.3% |
|
Current and Historical Seven-Day Yields
| 1/2/12 | 10/3/11 | 6/27/11 | 3/28/11 | 1/3/11 |
Fidelity Pennsylvania Municipal Money Market Fund | .01% | .01% | .01% | .01% | .01% |
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it's possible to lose money investing in the Fund. A portion of the Fund's expenses was reimbursed and/or waived. Absent such reimbursements and/or waivers the yield for the period ending January 2, 2012, the most recent period shown in the table, would have been -.34%.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Investments December 31, 2011
Showing Percentage of Net Assets
Municipal Securities - 98.5% | |||
Principal Amount | Value | ||
Arizona - 0.6% | |||
Arizona Trans. Board Hwy. Rev. Participating VRDN Series PT 4605, 0.3% 1/6/12 (Liquidity Facility Deutsche Postbank AG) (b)(f) | $ 4,000,000 | $ 4,000,000 | |
District of Columbia - 0.1% | |||
District of Columbia Rev. (American Psychological Assoc. Proj.) Series 2003, 0.28% 1/6/12, LOC Bank of America NA, VRDN (b) | 1,010,000 | 1,010,000 | |
Florida - 0.4% | |||
Collier County Hsg. Fin. Auth. Multi-family Rev. (George Washington Carver Apts. Proj.) Series 2005, 0.16% 1/6/12, LOC PNC Bank NA, VRDN (b)(e) | 3,120,000 | 3,120,000 | |
Georgia - 0.4% | |||
Coweta County Dev. Auth. Rev. (W.Y. Industries, Inc. Proj.) Series 2007, 0.24% 1/6/12, LOC Wells Fargo Bank NA, VRDN (b)(e) | 2,475,000 | 2,475,000 | |
Iowa - 0.4% | |||
Iowa Fin. Auth. Poll. Cont. Facility Rev. (MidAmerican Energy Proj.) Series 2008 B, 0.12% 1/6/12, VRDN (b) | 2,600,000 | 2,600,000 | |
Kentucky - 0.2% | |||
Trimble County Poll. Cont. Rev. Bonds (Louisville Gas & Elec. Co. Proj.) Series A2, 0.45% tender 1/12/12, CP mode (e) | 1,100,000 | 1,100,000 | |
Massachusetts - 0.2% | |||
Massachusetts Indl. Fin. Agcy. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.) Series 1993 A, 0.55% tender 1/11/12, CP mode | 1,200,000 | 1,200,000 | |
Michigan - 1.5% | |||
Michigan Fin. Auth. Rev. Series 2011 L, 0.24% 1/6/12, LOC Citibank NA, VRDN (b) | 10,700,000 | 10,700,000 | |
New Hampshire - 0.3% | |||
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.): | |||
Series 1990 A, 0.6% tender 1/10/12, CP mode (e) | 1,200,000 | 1,200,000 | |
Series 1990 B, 0.6% tender 1/26/12, CP mode | 800,000 | 800,000 | |
| 2,000,000 | ||
Pennsylvania - 92.8% | |||
Allegheny County Series C-58 A, 0.1% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 7,845,000 | 7,845,000 | |
Allegheny County Hosp. Dev. Auth. Rev.: | |||
(Children's Institute Pittsburgh Proj.) Series 2005 A, 0.09% 1/6/12, LOC PNC Bank NA, VRDN (b) | 3,265,000 | 3,265,000 | |
(Jefferson Reg'l. Med. Ctr.) Series 2010 A, 0.09% 1/6/12, LOC PNC Bank NA, VRDN (b) | 8,750,000 | 8,750,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Allegheny County Hosp. Dev. Auth. Rev.: - continued | |||
(South Hills Health Sys. Proj.) Series 2000 A, 0.09% 1/6/12, LOC PNC Bank NA, VRDN (b) | $ 4,800,000 | $ 4,800,000 | |
Bonds: | |||
Series 2010 A, 4% 5/15/12 | 5,000,000 | 5,067,164 | |
Series 2011 A, 2% 10/15/12 | 1,505,000 | 1,524,273 | |
Allegheny County Indl. Dev. Auth. Rev.: | |||
(Doren, Inc. Proj.) Series 1997 C, 0.21% 1/6/12, LOC PNC Bank NA, VRDN (b)(e) | 300,000 | 300,000 | |
(R.I. Lampus Co. Proj.) Series 1997 A, 0.21% 1/6/12, LOC PNC Bank NA, VRDN (b)(e) | 710,000 | 710,000 | |
(The Neighborhood Academy Proj.) 0.09% 1/6/12, LOC PNC Bank NA, VRDN (b) | 4,500,000 | 4,500,000 | |
(Union Elec. Steel Co. Proj.) Series 1996 A, 0.13% 1/6/12, LOC PNC Bank NA, VRDN (b)(e) | 3,120,000 | 3,120,000 | |
(United Jewish Federation Proj.) Series 1996 A, 0.09% 1/6/12, LOC PNC Bank NA, VRDN (b) | 400,000 | 400,000 | |
Allegheny County Port Auth. Spl. Rev. Bonds 2% 3/1/12 | 6,600,000 | 6,613,557 | |
Beaver County Hosp. Auth. Rev. Bonds (Heritage Valley Health Sys. Proj.) Series 2012, 3% 5/15/12 (a) | 3,235,000 | 3,261,301 | |
Beaver County Indl. Dev. Auth. Poll. Cont. Rev.: | |||
(FirstEnergy Nuclear Generation Corp. Proj.) Series 2006 B, 0.09% 1/6/12, LOC Citibank NA, VRDN (b) | 3,695,000 | 3,695,000 | |
Series 2005 A, 0.09% 1/6/12, LOC Bank of Nova Scotia New York Branch, VRDN (b) | 6,700,000 | 6,700,000 | |
Berks County Indl. Dev. Auth. Rev. (Kutztown Univ. Foundation, Inc. Proj.) Series 2004, 0.09% 1/6/12, LOC Wells Fargo Bank NA, VRDN (b) | 7,040,000 | 7,040,000 | |
Berks County Muni. Auth. Rev. Participating VRDN Series Putters 3779 Z, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 2,750,000 | 2,750,000 | |
Bucks County Indl. Dev. Auth. Hosp. Rev. (Grand View Hosp. Proj.) Series 2008 A, 0.06% 1/6/12, LOC PNC Bank NA, VRDN (b) | 5,000,000 | 5,000,000 | |
Bucks County Indl. Dev. Auth. Rev. (Snowball Real Estate LP Proj.) 0.29% 1/6/12, LOC Wells Fargo Bank NA, VRDN (b)(e) | 1,395,000 | 1,395,000 | |
Butler Co. Gen. Auth. Rev. (Erie School District Proj.) Series 2011, 0.09% 1/6/12, LOC PNC Bank NA, VRDN (b) | 6,600,000 | 6,600,000 | |
Cambria County Indl. Dev. Auth. Rev. (American Nat'l. Red Cross Proj.) Series 2008, 0.1% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 1,500,000 | 1,500,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Chester County Health & Ed. Auth. Rev. (Jenner's Pond Proj.) Series 2006, 0.19% 1/6/12, LOC Citizens Bank of Pennsylvania, VRDN (b) | $ 2,820,000 | $ 2,820,000 | |
Chester County Indl. Dev. Auth. Student Hsg. Rev. Series 2008 A, 0.1% 1/6/12, LOC Citizens Bank of Pennsylvania, VRDN (b) | 14,230,000 | 14,230,000 | |
Chester County Intermediate Unit Rev. Series 2003, 0.1% 1/6/12, LOC PNC Bank NA, VRDN (b) | 2,235,000 | 2,235,000 | |
Crawford County Indl. Dev. Auth. College Rev. (Allegheny College Proj.) Series 2009 B, 0.09% 1/6/12, LOC PNC Bank NA, VRDN (b) | 2,000,000 | 2,000,000 | |
Cumberland County Muni. Auth. Rev. (Messiah Village Proj.) Series 2008 B, 0.29% 1/6/12, LOC Citizens Bank of Pennsylvania, VRDN (b) | 8,000,000 | 8,000,000 | |
Delaware County Auth. Rev. (White Horse Village Proj.): | |||
Series 2006 A, 0.1% 1/3/12, LOC Citizens Bank of Pennsylvania, VRDN (b) | 4,715,000 | 4,715,000 | |
Series 2008, 0.1% 1/3/12, LOC Citizens Bank of Pennsylvania, VRDN (b) | 7,310,000 | 7,310,000 | |
Delaware County Indl. Dev. Auth. Rev.: | |||
(The Agnes Irwin School Proj.) Series 2003, 0.27% 1/6/12, LOC Citizens Bank of Pennsylvania, VRDN (b) | 7,835,000 | 7,835,000 | |
Series 1997 G, 0.07% 1/6/12, VRDN (b) | 700,000 | 700,000 | |
Erie County Hosp. Auth. Rev. (Saint Vincent Health Ctr. Proj.) Series 2010 B, 0.1% 1/6/12, LOC Manufacturers & Traders Trust Co., VRDN (b) | 13,100,000 | 13,100,000 | |
Franklin County Indl. Dev. Auth. Bonds (The Chambersburg Hosp. Proj.) Series 2010, 3% 7/1/12 | 1,000,000 | 1,011,800 | |
Geisinger Auth. Health Sys. Rev.: | |||
Bonds Series 2011 A, 0.5% 6/1/12 | 2,350,000 | 2,350,000 | |
Participating VRDN: | |||
Series Putters 3446, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 6,600,000 | 6,600,000 | |
Series Putters 3915 Z, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 5,000,000 | 5,000,000 | |
Series WF 11 69C, 0.11% 1/6/12 (Liquidity Facility Wells Fargo Bank NA) (b)(f) | 1,600,000 | 1,600,000 | |
Haverford Township School District Series 2009, 0.1% 1/6/12, LOC TD Banknorth, NA, VRDN (b) | 5,775,000 | 5,775,000 | |
Lancaster County Hosp. Auth. Health Ctr. Rev. (Lancaster Gen. Hosp. Proj.) Series 2008, 0.14% 1/3/12, LOC Bank of America NA, VRDN (b) | 23,235,000 | 23,235,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Lancaster Indl. Dev. Auth. Rev. (Willow Valley Retirement Proj.) Series 2009 B, 0.07% 1/6/12, LOC PNC Bank NA, VRDN (b) | $ 1,000,000 | $ 1,000,000 | |
Lehigh County Gen. Purp. Auth. (Muhlenberg College Proj.) Series 2008, 0.09% 1/6/12, LOC Bank of America NA, VRDN (b) | 14,895,000 | 14,895,000 | |
Lower Merion School District Series 2009 A, 0.09% 1/6/12, LOC State Street Bank & Trust Co., Boston, VRDN (b) | 450,000 | 450,000 | |
Montgomery County Redev. Auth. Multi-family Hsg. Rev. (Kingswood Apts. Proj.) Series 2001 A, 0.1% 1/6/12, LOC Fannie Mae Guaranteed Mtg. pass-thru certificates, VRDN (b) | 1,950,000 | 1,950,000 | |
Moon Indl. Dev. Auth. Commercial Dev. Rev. (One Thorn Run Ctr. Proj.) Series 1995 A, 0.13% 1/6/12, LOC PNC Bank NA, VRDN (b)(e) | 2,530,000 | 2,530,000 | |
Northampton Indl. Dev. Auth. Rev. (Ultra-Poly Corp./Portland Ind. Park Proj.) Series 1997, 0.16% 1/6/12, LOC PNC Bank NA, VRDN (b)(e) | 1,082,000 | 1,082,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Amtrak Proj.) Series 2001 B, 0.12% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b)(e) | 24,000,000 | 24,000,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Indl. Dev. Rev.: | |||
(Leidy's, Inc. Proj.) Series 1995 D7, 0.13% 1/6/12, LOC PNC Bank NA, VRDN (b)(e) | 500,000 | 500,000 | |
(Westrum Harleysville II, LP Proj.) Series 2005, 0.12% 1/6/12, LOC Fed. Home Ln. Bank Pittsburgh, VRDN (b)(e) | 11,535,000 | 11,535,000 | |
Series 2002 B5, 0.13% 1/6/12, LOC PNC Bank NA, VRDN (b)(e) | 5,000,000 | 5,000,000 | |
Series 2004 D2, 0.13% 1/6/12, LOC PNC Bank NA, VRDN (b)(e) | 1,000,000 | 1,000,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Manufacturing Facility Rev. (Dodge Realty Partners Proj.) 0.13% 1/6/12, LOC Citibank NA, VRDN (b)(e) | 6,300,000 | 6,300,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Wastewtr. Treatment Rev. (Sunoco, Inc. (R&M) Proj.) Series 2009 A, 0.13% 1/6/12 (Sunoco, Inc. Guaranteed), LOC JPMorgan Chase Bank, VRDN (b) | 6,600,000 | 6,600,000 | |
Pennsylvania Gen. Oblig.: | |||
Bonds: | |||
First Series 2003, 5% 1/1/12 | 6,500,000 | 6,500,000 | |
First Series 2004, 5.25% 2/1/12 | 2,000,000 | 2,008,479 | |
Second Series 2005, 5.25% 1/1/12 | 1,600,000 | 1,600,000 | |
Second Series 2002, 5.5% 5/1/12 | 2,000,000 | 2,034,917 | |
Second Series 2003, 5% 7/1/12 | 2,450,000 | 2,508,085 | |
Second Series 2009, 4% 7/1/12 | 1,000,000 | 1,018,741 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Pennsylvania Gen. Oblig.: - continued | |||
Bonds: | |||
Series 2010 A, 5% 7/15/12 | $ 7,000,000 | $ 7,178,716 | |
Third Series 2004, 5% 9/1/12 | 2,175,000 | 2,243,647 | |
Participating VRDN: | |||
Series Putters 3350, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 4,540,000 | 4,540,000 | |
Series Putters 3352Z, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 4,435,000 | 4,435,000 | |
Series Putters 4014, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 3,000,000 | 3,000,000 | |
Series ROC II R 11505, 0.1% 1/6/12 (Liquidity Facility Citibank NA) (b)(f) | 5,200,000 | 5,200,000 | |
Series WF 11 121C, 0.11% 1/6/12 (Liquidity Facility Wells Fargo Bank NA) (b)(f) | 6,600,000 | 6,600,000 | |
Pennsylvania Higher Edl. Facilities Auth. College & Univ. Revs. (St. Josephs Univ. Proj.) Series 2008 A, 0.08% 1/6/12, LOC TD Banknorth, NA, VRDN (b) | 7,000,000 | 7,000,000 | |
Pennsylvania Higher Edl. Facilities Auth. Rev.: | |||
(Holy Family Univ. Proj.) Series 2008, 0.1% 1/6/12, LOC TD Banknorth, NA, VRDN (b) | 4,640,000 | 4,640,000 | |
(King's College Proj.) Series 2002 J3, 0.09% 1/6/12, LOC PNC Bank NA, VRDN (b) | 140,000 | 140,000 | |
(La Salle Univ. Proj.) Series 2007 B, 0.19% 1/6/12, LOC Citizens Bank of Pennsylvania, VRDN (b) | 3,885,000 | 3,885,000 | |
Bonds: | |||
(Bryn Mawr College Proj.) Series 2009, 0.43%, tender 2/11/12 (b) | 7,500,000 | 7,500,000 | |
Series 2010 A, 4% 4/1/12 | 1,700,000 | 1,715,492 | |
Series AJ, 5% 6/15/12 | 1,860,000 | 1,899,238 | |
Participating VRDN: | |||
ROC II R 11721, 0.1% 1/6/12 (Liquidity Facility Citibank NA) (b)(f) | 7,500,000 | 7,500,000 | |
Series MS 3252, 0.17% 1/6/12 (Liquidity Facility Morgan Stanley Bank, West Valley City Utah) (b)(f) | 5,840,000 | 5,840,000 | |
Series Putters 3583Z, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 6,060,000 | 6,060,000 | |
Series WF 11 26C, 0.11% 1/6/12 (Liquidity Facility Wells Fargo Bank NA) (b)(f) | 3,000,000 | 3,000,000 | |
Pennsylvania Hsg. Fin. Agcy. Single Family Mtg. Rev.: | |||
Participating VRDN: | |||
Series Putters 3786 Z, 0.19% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(e)(f) | 4,935,000 | 4,935,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Pennsylvania Hsg. Fin. Agcy. Single Family Mtg. Rev.: - continued | |||
Participating VRDN: | |||
Series Putters 3950, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | $ 3,000,000 | $ 3,000,000 | |
Series 2004 83B, 0.11% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (b)(e) | 6,300,000 | 6,300,000 | |
Series 2004 84D, 0.08% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (b)(e) | 6,600,000 | 6,600,000 | |
Series 2004 85B, 0.11% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (b)(e) | 13,370,000 | 13,370,000 | |
Series 2004 86B, 0.08% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (b)(e) | 6,485,000 | 6,485,000 | |
Series 2005 90C, 0.11% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (b)(e) | 17,500,000 | 17,500,000 | |
Series 2005 97C, 0.09% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (b)(e) | 9,500,000 | 9,500,000 | |
Series 2005-87 C, 0.09% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (b)(e) | 11,865,000 | 11,865,000 | |
Series 2005-89, 0.08% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (b)(e) | 7,325,000 | 7,325,000 | |
Series 2005-91B, 0.08% 1/6/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (b)(e) | 6,600,000 | 6,600,000 | |
Pennsylvania Intergovernmental Coop. Auth. Spl. Tax Rev.: | |||
Bonds: | |||
Series 2009, 5% 6/15/12 | 2,145,000 | 2,189,931 | |
Series 2010, 5% 6/15/12 | 2,750,000 | 2,809,274 | |
Participating VRDN Series Putters 3481, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 5,035,000 | 5,035,000 | |
Pennsylvania State Pub. School Participating VRDN Series Solar 06 161, 0.09% 1/6/12 (Liquidity Facility U.S. Bank NA, Minnesota) (b)(f) | 4,000,000 | 4,000,000 | |
Pennsylvania State Univ. Participating VRDN Series ROC II R 11917, 0.1% 1/6/12 (Liquidity Facility Citibank NA) (b)(f) | 1,295,000 | 1,295,000 | |
Pennsylvania Tpk. Commission Tpk. Rev. Bonds Series 2011 B, 0.12% 4/1/12 (b) | 6,700,000 | 6,700,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Philadelphia Arpt. Rev.: | |||
Series 2005 C1, 0.08% 1/6/12, LOC TD Banknorth, NA, VRDN (b)(e) | $ 6,700,000 | $ 6,700,000 | |
Series 2005 C2, 0.08% 1/6/12, LOC Royal Bank of Canada, VRDN (b)(e) | 6,700,000 | 6,700,000 | |
Philadelphia Auth. for Indl. Dev. Rev.: | |||
(Spl. People in Northeast, Inc. Proj.) Series 2006, 0.17% 1/6/12, LOC Citizens Bank of Pennsylvania, VRDN (b) | 7,670,000 | 7,670,000 | |
(The Franklin Institute Proj.) Series 2006, 0.13% 1/6/12, LOC Bank of America NA, VRDN (b) | 9,200,000 | 9,200,000 | |
(William Penn Charter School Proj.) Series 2008, 0.09% 1/6/12, LOC PNC Bank NA, VRDN (b) | 410,000 | 410,000 | |
Philadelphia Auth. Indl. Dev. Lease Rev. Series 2007 B1, 0.09% 1/6/12, LOC JPMorgan Chase Bank, VRDN (b) | 1,000,000 | 1,000,000 | |
Philadelphia Gas Works Rev. (1998 Gen. Ordinance Proj.) Fifth Series A2, 0.07% 1/6/12, LOC Bank of Nova Scotia New York Branch, LOC JPMorgan Chase Bank, VRDN (b) | 8,360,000 | 8,360,000 | |
Philadelphia Gen. Oblig. TRAN Series 2011 A, 2% 6/29/12 | 9,000,000 | 9,072,702 | |
Philadelphia Hospitals & Higher Ed. Facilities Auth. Health Systems Rev.: | |||
Bonds (Jefferson Health Sys. Proj.) Series B, 2.5% 5/15/12 | 1,000,000 | 1,007,166 | |
Participating VRDN Series ROC II R 11867, 0.1% 1/6/12 (Liquidity Facility Citibank NA) (b)(f) | 5,500,000 | 5,500,000 | |
Philadelphia Hospitals & Higher Ed. Facilities Auth. Hosp. Rev.: | |||
(Children's Hosp. of Philadelphia Proj.) Series 2005 A, 0.05% 1/3/12 (Liquidity Facility Bank of America NA), VRDN (b) | 1,600,000 | 1,600,000 | |
Participating VRDN Series Putters 3975, 0.1% 1/6/12 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 3,665,000 | 3,665,000 | |
Philadelphia Wtr. & Wastewtr. Rev. Series 2005 B, 0.09% 1/6/12, LOC Bank of America NA, VRDN (b) | 4,700,000 | 4,700,000 | |
Pittsburgh Wtr. & Swr. Auth. Wtr. & Swr. Sys. Rev. Series 2008 B2, 0.07% 1/6/12, LOC PNC Bank NA, VRDN (b) | 1,000,000 | 1,000,000 | |
RBC Muni. Products, Inc. Trust Participating VRDN: | |||
Series RBC E 22, 0.1% 1/6/12 (Liquidity Facility Royal Bank of Canada) (b)(f) | 6,600,000 | 6,600,000 | |
Series RBC E 28, 0.1% 1/6/12 (Liquidity Facility Royal Bank of Canada) (b)(f) | 7,000,000 | 7,000,000 | |
Series RBC E 29, 0.1% 1/6/12 (Liquidity Facility Royal Bank of Canada) (b)(f) | 6,500,000 | 6,500,000 | |
Series RBC E 30, 0.1% 1/6/12 (Liquidity Facility Royal Bank of Canada) (b)(f) | 5,000,000 | 5,000,000 | |
Ridley School District Series 2009, 0.1% 1/6/12, LOC TD Banknorth, NA, VRDN (b) | 6,520,000 | 6,520,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Schuylkill County Indl. Dev. Auth. Rev. (KP Tamaqua LP Proj.) Series 2007, 0.21% 1/6/12, LOC Citizens Bank of Pennsylvania, VRDN (b)(e) | $ 2,005,000 | $ 2,005,000 | |
Somerset County Gen. Oblig. Series 2009 A, 0.09% 1/6/12, LOC PNC Bank NA, VRDN (b) | 3,475,000 | 3,475,000 | |
South Fork Muni. Auth. Hosp. Rev. (Conemaugh Health Ctr. Proj.) Series A, 0.1% 1/6/12, LOC PNC Bank NA, VRDN (b) | 6,995,000 | 6,995,000 | |
Univ. of Pittsburgh Commonwealth Sys. of Higher Ed.: | |||
BAN Series 2011, 2% 6/18/12 | 6,600,000 | 6,650,982 | |
Bonds: | |||
(Higher Ed. Proj.) 0.17% tender 2/2/12, CP mode | 10,805,000 | 10,805,000 | |
(Univ. Cap. Proj.): | |||
Series 2005 B, 0.19% tender 1/6/12, CP mode | 6,700,000 | 6,700,000 | |
Series C, 0.17% tender 2/1/12, CP mode | 8,000,000 | 8,000,000 | |
Washington County Hosp. Auth. Rev. (Washington Hosp. Proj.) Series 2007 B, 0.09% 1/6/12, LOC Wells Fargo Bank NA, VRDN (b) | 9,200,000 | 9,200,000 | |
Wilkens Area Indl. Dev. Auth. Rev. (Fairview Extended Care Proj.) Series B, 0.28% 1/6/12, LOC Bank of America NA, VRDN (b) | 750,000 | 750,000 | |
| 636,537,465 | ||
South Carolina - 0.1% | |||
Oconee County Poll. Cont. Rev. (Duke Energy Corp. Proj.) Series 1999 B, 0.15% 1/3/12, VRDN (b)(e) | 500,000 | 500,000 | |
Texas - 0.5% | |||
Harris County Cultural Ed. Facilities Fin. Corp. Rev. (Memorial Hermann Healthcare Sys. Proj.) Series 2008 C, 0.08% 1/6/12, LOC Wells Fargo Bank NA, VRDN (b) | 3,500,000 | 3,500,000 | |
Virginia - 0.1% | |||
Virginia Hsg. Dev. Auth. Commonwealth Mtg. Rev. Participating VRDN Series BA 1047, 0.23% 1/6/12 (Liquidity Facility Bank of America NA) (b)(e)(f) | 1,000,000 | 1,000,000 | |
Municipal Securities - continued | |||
Shares | Value | ||
Other - 0.9% | |||
Fidelity Municipal Cash Central Fund, 0.10% (c)(d) | 6,361,000 | $ 6,361,000 | |
TOTAL INVESTMENT PORTFOLIO - 98.5% (Cost $676,103,465) | 676,103,465 | ||
NET OTHER ASSETS (LIABILITIES) - 1.5% | 10,058,142 | ||
NET ASSETS - 100% | $ 686,161,607 |
Security Type Abbreviations | ||
BAN | - | BOND ANTICIPATION NOTE |
CP | - | COMMERCIAL PAPER |
TRAN | - | TAX AND REVENUE ANTICIPATION NOTE |
VRDN | - | VARIABLE RATE DEMAND NOTE (A debt instrument that is payable upon demand, either daily, weekly or monthly) |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(c) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(d) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(f) Provides evidence of ownership in one or more underlying municipal bonds. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Municipal Cash Central Fund | $ 28,229 |
Other Information |
The date shown for securities represents the date when principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2011 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $669,742,465) | $ 669,742,465 |
|
Fidelity Central Funds (cost $6,361,000) | 6,361,000 |
|
Total Investments (cost $676,103,465) |
| $ 676,103,465 |
Cash |
| 3,952,525 |
Receivable for securities sold on a delayed delivery basis | 2,000,066 | |
Receivable for fund shares sold | 12,599,287 | |
Interest receivable | 820,312 | |
Distributions receivable from Fidelity Central Funds | 721 | |
Other receivables | 24 | |
Total assets | 695,476,400 | |
|
|
|
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 3,261,301 | |
Payable for fund shares redeemed | 5,969,314 | |
Distributions payable | 80 | |
Accrued management fee | 83,869 | |
Other affiliated payables | 229 | |
Total liabilities | 9,314,793 | |
|
|
|
Net Assets | $ 686,161,607 | |
Net Assets consist of: |
| |
Paid in capital | $ 686,176,431 | |
Accumulated undistributed net realized gain (loss) on investments | (14,824) | |
Net Assets, for 686,029,960 shares outstanding | $ 686,161,607 | |
Net Asset Value, offering price and redemption price per share ($686,161,607 ÷ 686,029,960 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended December 31, 2011 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 1,488,411 |
Income from Fidelity Central Funds |
| 28,229 |
Total income |
| 1,516,640 |
|
|
|
Expenses | ||
Management fee | $ 3,304,939 | |
Independent trustees' compensation | 2,408 | |
Total expenses before reductions | 3,307,347 | |
Expense reductions | (1,856,876) | 1,450,471 |
Net investment income (loss) | 66,169 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 14,020 |
Net increase in net assets resulting from operations | $ 80,189 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 66,169 | $ 66,633 |
Net realized gain (loss) | 14,020 | (70) |
Net increase in net assets resulting from operations | 80,189 | 66,563 |
Distributions to shareholders from net investment income | (66,105) | (66,616) |
Share transactions at net asset value of $1.00 per share | 1,803,354,473 | 1,796,141,406 |
Reinvestment of distributions | 65,495 | 66,009 |
Cost of shares redeemed | (1,788,062,125) | (1,803,565,907) |
Net increase (decrease) in net assets and shares resulting from share transactions | 15,357,843 | (7,358,492) |
Total increase (decrease) in net assets | 15,371,927 | (7,358,545) |
|
|
|
Net Assets | ||
Beginning of period | 670,789,680 | 678,148,225 |
End of period | $ 686,161,607 | $ 670,789,680 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) | -D | -D | .001 | .018 | .032 |
Net realized and unrealized gain (loss) D | - | - | - | - | - |
Total from investment operations | -D | -D | .001 | .018 | .032 |
Distributions from net investment income | -D | -D | (.001) | (.018) | (.032) |
Distributions from net realized gain | - | - | - | -D | - |
Total distributions | -D | -D | (.001) | (.018) | (.032) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total ReturnA | .01% | .01% | .09% | 1.85% | 3.25% |
Ratios to Average Net AssetsB,C |
|
|
|
|
|
Expenses before reductions | .50% | .50% | .53% | .51% | .50% |
Expenses net of fee waivers, if any | .22% | .30% | .49% | .51% | .50% |
Expenses net of all reductions | .22% | .30% | .49% | .46% | .40% |
Net investment income (loss) | .01% | .01% | .09% | 1.82% | 3.20% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 686,162 | $ 670,790 | $ 678,148 | $ 848,937 | $ 720,414 |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed or waived or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements, waivers or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement and waivers but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2011
1. Organization.
Fidelity Pennsylvania Municipal Income Fund (the Income Fund) is a fund of Fidelity Municipal Trust. Fidelity Pennsylvania Municipal Money Market Fund (the Money Market Fund) is a fund of Fidelity Municipal Trust II. Each Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Fidelity Municipal Trust and Fidelity Municipal Trust II (the Trusts) are organized as a Massachusetts business trust and a Delaware statutory trust, respectively. Each Fund is authorized to issue an unlimited number of shares. Each Fund may be affected by economic and political developments in the state of Pennsylvania.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Income Fund uses independent pricing services approved by the Board of Trustees to value their investments. When current market prices
Annual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
Each Fund categorizes the inputs to valuation techniques used to value their investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
For the Income Fund, changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value each Fund's investments by major category are as follows:
For the Income Fund, debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For municipal securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
For the Money Market Fund, as permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities are valued at amortized cost, which approximates fair value. The amortized cost of an instrument is determined by valuing it at its original cost and thereafter amortizing any discount or premium from its face value at a constant rate until maturity. Securities held by a money market fund are generally high quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value are not quoted prices in an active market.
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day for the Income Fund and trades executed through the end of the current business day for the Money Market Fund. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company, including distributing substantially 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. As of December 31, 2011, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Money Market Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation, capital loss carryforwards, and losses deferred due to wash sales, futures transactions, and excise tax regulations.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The Funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized | Gross unrealized | Net unrealized |
Fidelity Pennsylvania Municipal Income Fund | $ 395,206,362 | $ 20,982,400 | $ (352,893) | $ 20,629,507 |
Fidelity Pennsylvania Municipal Money Market Fund | 676,103,465 | - | - | - |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed | Capital loss | Net unrealized |
Fidelity Pennsylvania Municipal Income Fund | $ 6,502 | $ (374,119) | $ 20,629,507 |
Fidelity Pennsylvania Municipal Money Market Fund | 3,531 | (18,123) | - |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. Capital loss carryforwards were as follows:
| Fiscal year of |
|
|
| 2017 | 2018 | Total with expiration |
Fidelity Pennsylvania Municipal Money Market Fund | (11,336) | (1,789) | (13,125) |
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Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
| No expiration |
| |
| Short-term | Long-term | Total capital loss |
Fidelity Pennsylvania Municipal Income Fund | $ (374,119) | $ - | $ (374,119) |
Fidelity Pennsylvania Municipal Money Market Fund | - | (4,998) | (18,123) |
The tax character of distributions paid was as follows:
December 31, 2011 | Tax-Exempt |
Fidelity Pennsylvania Municipal Income Fund | $ 15,776,599 |
Fidelity Pennsylvania Municipal Money Market Fund | 66,105 |
December 31, 2010 | Tax-Exempt | Long-term | Total |
Fidelity Pennsylvania Municipal Income Fund | $ 17,451,496 | $ 3,009,138 | $ 20,460,634 |
Fidelity Pennsylvania Municipal Money Market Fund | 66,616 | - | 66,616 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Income Fund less than 30 days are subject to a redemption fee equal to ..50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. 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 securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable Fund's Schedule of Investments. The Funds may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes
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4. Operating Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $48,040,382 and $78,114,735, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Income Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and an annualized group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
FMR and its affiliates provide the Money Market Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .50% of the Fund's average net assets. FMR pays all other expenses, except the compensation of the independent Trustees and certain exceptions such as interest expense, including commitment fees. The management fee paid to FMR by the Fund is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, under which FIIOC performs the activities associated with the Funds' transfer agency, dividend disbursing and shareholder servicing functions. Under the terms of the management fee contract, FMR pays transfer agent fees on behalf of the Money Market Fund. The Income Fund pays account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the Income Fund's transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Fidelity Pennsylvania Municipal Income Fund | .09% |
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Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees - continued
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.
7. Committed Line of Credit.
The Income Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Fidelity Pennsylvania Municipal Income Fund | $ 1,292 |
During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
FMR or its affiliates voluntarily agreed to waive certain fees for the Money Market Fund in order to maintain a minimum annualized yield of .01%. Such arrangements may be discontinued by FMR at any time. For the period, the amount of the waiver was $1,856,041.
Through arrangements with the Income Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce fund expenses. These expense reductions are noted in the table below.
| Custody |
Fidelity Pennsylvania Municipal Income Fund | $ 2,429 |
In addition, through an arrangement with Money Market Fund's custodian, $835 of credits realized as a result of uninvested cash balances were used to reduce the Fund's management fee.
9. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also
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9. Other - continued
enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and Fidelity Municipal Trust II and the Shareholders of Fidelity Pennsylvania Municipal Income Fund and Fidelity Pennsylvania Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Pennsylvania Municipal Income Fund (a fund of Fidelity Municipal Trust) and Fidelity Pennsylvania Municipal Money Market Fund (a fund of Fidelity Municipal Trust II) at December 31, 2011 the results of each of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Municipal Trust's and Fidelity Municipal Trust II's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2012
Annual Report
Trustees and Officers
The Trustees 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, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for James C. Curvey, each of the Trustees oversees 203 funds advised by FMR or an affiliate. Mr. Curvey oversees 429 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Funds' Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Kenneth L. Wolfe serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. The Operations Committee also worked and continues to work with FMR to enhance the stress tests required under SEC regulations for money market funds. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Funds' Trustees."
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Trustees and Officers - continued
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Abigail P. Johnson (50) | |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (76) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of Fidelity Investments Money Management, Inc. (2009-present), Director of Fidelity Research & Analysis Co. (2009-present) and Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trusts or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Albert R. Gamper, Jr. (69) | |
| Year of Election or Appointment: 2006 Mr. Gamper is Vice Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2011-present). Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (60) | |
| Year of Election or Appointment: 2010 Mr. Gartland is a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-present) and is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (64) | |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Mr. Edward C. Johnson 3d or Ms. Abigail P. Johnson. |
Michael E. Kenneally (57) | |
| Year of Election or Appointment: 2009 Previously, Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity Fixed Income and Asset Allocation Funds (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of the Credit Suisse Funds (U.S. mutual funds, 2004-2008) and certain other closed-end funds (2004-2005) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (71) | |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, since 1998). Prior to his retirement, Mr. Keyes served as Chairman and Chief Executive Officer of Johnson Controls (automotive, building, and energy, 1998-2002) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (65) | |
| 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. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (72) | |
| Year of Election or Appointment: 2005 Mr. Wolfe is Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2008-present). Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Annual Report
Trustees and Officers - continued
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
John R. Hebble (53) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as President (2011-present), Treasurer, and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present), Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Christopher P. Sullivan (57) | |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Bond Funds. Mr. Sullivan also serves as President of Fidelity's Bond Division (2009-present). Mr. Sullivan is Executive Vice President of Fidelity Investments Money Management, Inc. (2009-present), and a Director of Fidelity Management & Research (U.K.) Inc. (2010-present). Previously, Mr. Sullivan served as Managing Director, Co-Head of U.S. Fixed Income at Goldman Sachs Asset Management (2001-2009). |
Christine J. Thompson (53) | |
| Year of Election or Appointment: 2010 Vice President of Fidelity's Bond Funds. Ms. Thompson also serves as Chief Investment Officer of FMR's Bond Group (2010-present) and is an employee of Fidelity Investments. Previously, Ms. Thompson served as Director of Municipal Bond Portfolio Managers (2002-2010). |
Robert P. Brown (48) | |
| Year of Election or Appointment: 2010 Vice President of Fidelity's Money Market Funds and Executive Vice President of Fidelity Investments Money Management, Inc. (2010-present). Mr. Brown also serves as President, Money Market Group of FMR (2010-present), Managing Director of Research, Director of Fidelity Management & Research (U.K.) Inc. (2008-present) and is an employee of Fidelity Investments. |
Scott C. Goebel (43) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as Secretary of Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); Secretary and CLO of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); employed by FMR LLC or an affiliate (2001-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
David J. Carter (38) | |
| Year of Election or Appointment: 2010 Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Carter also serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2005-present). |
Holly C. Laurent (57) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent also serves as AML Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present) and is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (53) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (44) | |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker also serves as Chief Compliance Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present). Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (50) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009). |
Joseph F. Zambello (54) | |
| Year of Election or Appointment: 2011 Deputy Treasurer of the Fidelity funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Stephanie J. Dorsey (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey also serves as Assistant Treasurer of other Fidelity funds (2010-present) and is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Adrien E. Deberghes (44) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Deberghes also serves as Vice President and Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II (2011-present), Deputy Treasurer of other Fidelity funds (2008-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Kenneth B. Robins (42) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds (2008-present; 2010-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Deputy Treasurer of the Fidelity funds (2005-2008) and Treasurer and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2006-2008). |
Gary W. Ryan (53) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Jonathan Davis (43) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of the Fidelity funds. Mr. Davis is also Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Annual Report
Distributions (Unaudited)
During fiscal year ended 2011, 100% of each fund's income dividends were free from federal income tax, and 4.94% of Fidelity Pennsylvania Municipal Income Fund and 24.68% of Fidelity Pennsylvania Municipal Money Market's income dividends were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2012 of amounts for use in preparing 2011 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Pennsylvania Municipal Income Fund / Fidelity Pennsylvania Municipal Money Market Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Nominating and Governance, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2011 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expense ratio; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that each fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' investment personnel and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has devoted increased resources to non-U.S. offices. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities which allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and enhancers. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools which permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading capabilities and resources which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for each fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.
Annual Report
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers, with 35 new branches opening since 2010.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) rationalizing product lines through the mergers of six funds into other funds; (iii) continuing to migrate the Freedom Funds to dedicated lower cost underlying funds; (iv) obtaining shareholder approval to broaden the investment strategies for Fidelity Consumer Finance Portfolio, Fidelity Emerging Asia Fund, and Fidelity Environment and Alternative Energy Portfolio; (v) contractually agreeing to reduce the management fees and impose other expense limitations on Spartan 500 Index Fund and U.S. Bond Index Fund in connection with launching new institutional classes of these funds; (vi) changing the name, primary and supplemental benchmarks, and investment policies of Fidelity Global Strategies Fund to support the fund's flexible investment mandate and global orientation; and (vii) reducing the transfer agency account fee rates on certain accounts.
Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance, as well as each fund's relative investment performance measured over multiple periods against (i) a broad-based securities market index (bond fund only, as money market funds are typically not compared against a market index), and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. For each fund, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2010, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark") (bond fund only), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Pennsylvania Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the fund was in the first quartile for all the periods shown. The Board also noted that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions to improve the fund's below-benchmark performance. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the fund was in the third quartile for the one-year period and the second quartile for the three- and five-year periods. The Board considered that FMR had taken steps to provide shareholders with stability of principal and to enhance safety and liquidity. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should benefit each fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 29% would mean that 71% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board. Because the vast majority of competitor funds' management fees do not cover non-management expenses, for a more meaningful comparison of management fees, Fidelity Pennsylvania Municipal Money Market Fund is compared on the basis of a hypothetical "net management fee," which is derived by subtracting payments made by FMR for non-management expenses (including transfer agent fees, pricing and bookkeeping fees, and fees paid to non-affiliated custodians) from the fund's all-inclusive fee. In this regard, the Board realized that net management fees can vary from year to year because of differences in non-management expenses.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Pennsylvania Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2010.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
The Board noted that the fund's hypothetical net management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2010.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of Fidelity Pennsylvania Municipal Income Fund's total expense ratio, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses.
In its review of Fidelity Pennsylvania Municipal Money Market Fund's total expense ratio, the Board considered the fund's hypothetical net management fee as well as the fund's all-inclusive fee. The Board also considered other expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees, paid by FMR under the all-inclusive arrangement. The Board also noted the effects of any waivers and reimbursements on fees and expenses.
As part of its review, the Board also considered the current and historical total expense ratios of each fund compared to competitive fund median expenses. Each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that each fund's total expense ratio ranked below its competitive median for 2010. The Board considered that Fidelity has been voluntarily waiving part or all of the management fees to maintain a minimum yield for Fidelity Pennsylvania Municipal Money Market Fund, and also noted that Fidelity retains the ability to be repaid by the fund in certain circumstances.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that each fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Annual Report
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that Fidelity Pennsylvania Municipal Income Fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes; (vi) the reasons why certain expenses affect various funds and classes differently; (vii) Fidelity's transfer agent fees, expenses, and services and how the benefits of decreased costs and new efficiencies can be shared across all of the Fidelity funds; (viii) the reasons for and consequences of changes to certain product lines compared to competitors; (ix) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (x) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
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.
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
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To review orders and mutual
fund activity.
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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.
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 distributions, and the effects of any sales charges.
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Annual Report
Investment Adviser
Fidelity Management & Research Company
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PFR-UANN-0212 1.787740.108
Fidelity®
Short-Intermediate
Municipal Income Fund
Annual Report
December 31, 2011
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
Annual Report
Semia
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
The investment environment in 2011 was characterized by a number of headline events, most notably the early-August decision by Standard & Poor's to lower the long-term sovereign credit rating of the United States. The historic downgrade followed a stalemate in which Congress struggled to address the debt ceiling, heightening investor anxiety and within a matter of days wiping out a solid first-half advance that was largely driven by encouraging corporate earnings and economic activity. At the same time, investors were becoming increasingly concerned about the sovereign debt crisis in Europe and its potential to derail the U.S. economy, as well as persistently high unemployment. The combination of these factors set off a wave of unusually high volatility that lasted until late in the year, with wide weekly, and even daily, swings fueled largely by the latest developments coming out of the eurozone.
Against this backdrop, equities struggled to gain any significant momentum in the second half, and finished 2011 with only a modest gain, due in part to a strong October. High-grade bonds, meanwhile, benefited from periodic flights to quality and turned in a solid performance, paced by municipal issues and Treasuries.
Financial markets are difficult to predict, of course, but you can help put the odds in your favor by following these time-tested investment principles. One of the basic tenets is to invest according to your time horizon. For long-term investors, riding out the markets' inevitable ups and downs has proven much more effective than making decisions based on short-term developments. If your goal is approaching, you can also benefit from patience and restraint, rather than attempting to time the market.
Asset allocation is another principle to manage risk. As you spread your portfolio among the asset classes, be sure to consider your time horizon, risk tolerance and investment objectives. After deciding on a suitable allocation strategy, make sure your portfolio is adequately diversified, with exposure to stocks of small-, mid- and large-cap companies in a range of sectors, for example.
Lastly, investing a certain amount of money on a regular basis - a principle known as dollar-cost averaging - can help lower the average cost of your purchases, while also giving you the discipline to avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to learn more by visiting us on the Internet, dropping by one of our Investor Centers or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Abigail P. Johnson
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2011 | Past 1 | Past 5 | Past 10 |
Fidelity® Short-Intermediate Municipal Income Fund | 4.34% | 3.98% | 3.51% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Short-Intermediate Municipal Income Fund, a class of the fund, on December 31, 2001. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds generated a double-digit return for the 12 months ending December 31, 2011, ranking them as one of the year's best-performing asset classes. The Barclays Capital® Municipal Bond Index - a measure of more than 46,000 tax-exempt investment-grade fixed-rate bonds - advanced 10.70%, significantly outpacing the 7.84% gain of the taxable investment-grade debt market, as measured by the Barclays Capital® U.S. Aggregate Bond Index. In early 2011, muni prices fell due to inflation concern, uncertain tax policy, anticipated heavy supply and the lingering effects of late-2010 headlines forecasting an unprecedented wave of issuer defaults. But in February, munis began a virtually uninterrupted rally, as demand surged, supply was muted, widespread defaults didn't materialize and the fiscal health of issuers improved. During the summer, a dimming U.S. economic outlook, unresolved debt woes in Europe and legislative wrangling over the U.S. debt ceiling fueled further demand for munis, as U.S. investors sought haven against global economic uncertainty. The muni sector lost modest ground in October, due in part to the ongoing challenging credit environment and various proposals out of Washington, D.C., that could potentially limit munis' tax-free benefits. Those losses were quickly erased, and munis posted a strong gain when supply was quite limited through period end.
Comments from Mark Sommer, Lead Portfolio Manager of Fidelity® Short-Intermediate Municipal Income Fund: For the year, the fund's Retail Class shares returned 4.34%, while the Barclays Capital 1-6 Year Municipal Bond Index rose 4.18%. The fund's yield-curve positioning and overweighting in investor-owned utilities (IOUs) and general obligation bonds (GOs) issued by the State of California bolstered the fund's relative performance. In terms of yield-curve positioning, overweighting bonds in the seven- to nine-year range boosted performance, because they outpaced bonds in the two- to three-year range, in which the fund was underweighted. IOUs outpaced the index because of their comparatively high yields and strong investor demand. California State GOs were some of the better-performing securities in the marketplace, due to muted supply of and strong demand for the bonds. Detracting from the fund's relative performance was its underweighting in Puerto Rico bonds, which rallied strongly in the second half of the period and benefited from renewed demand for these triple-tax-exempt, higher-yielding bonds, as well as in improving sentiment about the territory's credit outlook.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2011 to December 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | .77% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.10 | $ 3.92 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.32 | $ 3.92 |
Class T | .76% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.20 | $ 3.87 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.37 | $ 3.87 |
Class B | 1.42% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.80 | $ 7.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class C | 1.52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.30 | $ 7.72 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.54 | $ 7.73 |
Short-Intermediate Municipal Income | .48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,021.70 | $ 2.45 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Institutional Class | .52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.50 | $ 2.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.58 | $ 2.65 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Five States as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
New York | 13.3 | 16.3 |
California | 10.6 | 8.9 |
Illinois | 7.5 | 7.7 |
Florida | 7.0 | 7.0 |
Texas | 5.7 | 6.1 |
Top Five Sectors as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
General Obligations | 34.0 | 33.3 |
Electric Utilities | 13.4 | 14.2 |
Special Tax | 10.5 | 12.6 |
Health Care | 9.8 | 10.7 |
Transportation | 5.0 | 4.9 |
Weighted Average Maturity as of December 31, 2011 | ||
|
| 6 months ago |
Years | 3.3 | 3.1 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2011 | ||
|
| 6 months ago |
Years | 2.8 | 2.7 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-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. Duration takes into account any call or put option embedded in the bonds. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2011 | As of June 30, 2011 | ||||||
![]() | AAA 6.4% |
| ![]() | AAA 9.7% |
| ||
![]() | AA,A 71.5% |
| ![]() | AA,A 72.5% |
| ||
![]() | BBB 5.5% |
| ![]() | BBB 5.3% |
| ||
![]() | BB and Below 0.1% |
| ![]() | BB and Below 0.1% |
| ||
![]() | Not Rated 2.1% |
| ![]() | Not Rated 1.3% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Investments December 31, 2011
Showing Percentage of Net Assets
Municipal Bonds - 85.6% | ||||
| Principal Amount (000s) | Value (000s) | ||
Alabama - 0.5% | ||||
Alabama 21st Century Auth. Tobacco Settlement Rev. Series 2001, 5.75% 12/1/15 | $ 1,000 | $ 1,012 | ||
Health Care Auth. for Baptist Health Bonds Series 2009 A, 6.125%, tender 5/15/12 (b) | 4,000 | 4,055 | ||
Jefferson County Swr. Rev. Series 2002 B, 5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) | 2,070 | 2,116 | ||
Mobile Indl. Dev. Board Poll. Cont. Rev. Bonds: | ||||
(Alabama Pwr. Co. Barry Plant Proj.) Series 2007 A, 4.75%, tender 3/19/12 (b) | 8,240 | 8,309 | ||
Series 2007 B, 4.875%, tender 3/19/13 (b) | 1,715 | 1,798 | ||
Pell City Spl. Care Facilities Rev. (Noland Health Svcs., Inc. Proj.) Series 2007 A, 5% 12/1/12 | 750 | 764 | ||
Univ. of Alabama at Birmingham Hosp. Rev. Series 2008 A, 5% 9/1/13 | 1,175 | 1,245 | ||
| 19,299 | |||
Arizona - 3.4% | ||||
Arizona Ctfs. of Partnership Series 2010 A: | ||||
5% 10/1/14 (FSA Insured) | 5,000 | 5,455 | ||
5% 10/1/16 (FSA Insured) | 13,000 | 14,843 | ||
Arizona Health Facilities Auth. Rev. (Banner Health Sys. Proj.): | ||||
Series 2008 A, 5% 1/1/13 | 2,000 | 2,076 | ||
Series 2008 D: | ||||
5% 1/1/13 | 3,250 | 3,374 | ||
5% 1/1/14 | 2,000 | 2,137 | ||
Arizona School Facilities Board Ctfs. of Prtn.: | ||||
Series 2004 B, 5.25% 9/1/15 (FSA Insured) | 6,470 | 7,002 | ||
Series 2005 A2, 5% 9/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 11,000 | 12,112 | ||
Series 2008: | ||||
5.5% 9/1/13 | 18,780 | 20,193 | ||
5.5% 9/1/16 | 1,385 | 1,592 | ||
Series A, 5% 9/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,280 | 3,374 | ||
Arizona Wtr. Infrastructure Fin. Auth. Rev. Series 2009 A: | ||||
5% 10/1/18 | 1,000 | 1,237 | ||
5% 10/1/20 | 5,180 | 6,389 | ||
Coconino County Poll. Cont. Corp. Rev. Bonds (Arizona Pub. Svc. Co. Navajo Proj.) Series 2009 A, 5.5%, tender 6/1/14 (b) | 6,000 | 6,489 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Arizona - continued | ||||
Maricopa County Poll. Cont. Rev. Bonds (Arizona Pub. Svc. Co. Palo Verde Proj.) Series 2009 A, 6%, tender 5/1/14 (b) | $ 4,800 | $ 5,232 | ||
Mesa Hwy. Proj. Advancement Series 2011 A: | ||||
5% 7/1/17 | 12,085 | 13,583 | ||
5% 7/1/18 | 5,200 | 5,824 | ||
Phoenix Civic Impt. Corp. Excise Tax Rev. Series 2003 A, 5% 7/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 750 | 767 | ||
Phoenix Civic Impt. Corp. Wtr. Sys. Rev.: | ||||
Series 2009 A, 5% 7/1/15 | 5,835 | 6,640 | ||
Series 2009 B, 5% 7/1/16 | 5,090 | 5,938 | ||
Pima County Swr. Sys. Rev. Series 2011 B, 5% 7/1/19 | 3,000 | 3,584 | ||
Tucson Gen. Oblig. Series 2005, 5% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,250 | 1,403 | ||
Tucson Wtr. Rev. Series 2001 A, 5% 7/1/15 (FGIC Insured) | 1,645 | 1,754 | ||
Univ. Med. Ctr. Corp. Hosp. Rev. Series 2011: | ||||
5% 7/1/16 | 3,055 | 3,333 | ||
5% 7/1/17 | 3,315 | 3,625 | ||
5% 7/1/18 | 3,365 | 3,670 | ||
| 141,626 | |||
California - 10.6% | ||||
California Dept. of Wtr. Resources Pwr. Supply Rev.: | ||||
Series 2002 A, 5.25% 5/1/12 | 6,000 | 6,098 | ||
Series 2010 L, 5% 5/1/17 | 12,000 | 14,358 | ||
Series 2010 M, 5% 5/1/16 | 8,000 | 9,358 | ||
California Econ. Recovery: | ||||
Bonds Series B, 5%, tender 7/1/14 (b) | 5,000 | 5,494 | ||
Series 2004 A, 5.25% 7/1/12 | 6,010 | 6,154 | ||
Series 2009 A: | ||||
5% 7/1/15 | 3,660 | 4,027 | ||
5% 7/1/15 (Pre-Refunded to 7/1/14 @ 100) | 2,540 | 2,822 | ||
5.25% 7/1/13 (Escrowed to Maturity) | 1,185 | 1,272 | ||
5.25% 7/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,255 | 1,343 | ||
5.25% 7/1/14 | 1,780 | 1,976 | ||
5.25% 7/1/14 (Escrowed to Maturity) | 520 | 581 | ||
California Gen. Oblig.: | ||||
5% 2/1/12 | 1,650 | 1,656 | ||
5% 3/1/12 | 15,000 | 15,109 | ||
5% 9/1/12 | 1,700 | 1,751 | ||
5% 10/1/12 | 12,600 | 13,026 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Gen. Oblig.: - continued | ||||
5% 11/1/13 | $ 9,060 | $ 9,767 | ||
5% 9/1/18 | 7,500 | 8,931 | ||
5% 9/1/19 | 20,000 | 23,941 | ||
5% 9/1/20 | 20,000 | 23,886 | ||
California Health Facilities Fing. Auth. Rev.: | ||||
(Catholic Healthcare West Proj.) Series 2008 H, 5.125% 7/1/22 | 2,495 | 2,663 | ||
(Children's Hosp. of Orange County Proj.) Series 2009 A, 5% 11/1/13 | 1,100 | 1,161 | ||
(Sutter Health Proj.) Series 2008 A, 5% 8/15/12 | 1,325 | 1,361 | ||
Bonds: | ||||
(Catholic Healthcare West Proj.): | ||||
Series 2009 D, 5%, tender 7/1/14 (b) | 2,900 | 3,132 | ||
Series 2009 F, 5%, tender 7/1/14 (b) | 3,200 | 3,455 | ||
(St. Joseph Health Sys. Proj.) Series 2009 C, 5%, tender 10/16/14 (b) | 4,300 | 4,691 | ||
California Infrastructure & Econ. Dev. Bank Rev. Bonds (The J. Paul Getty Trust Proj.) Series 2007 A3, 2.25%, tender 4/1/12 (b) | 6,500 | 6,532 | ||
California Poll. Cont. Fing. Auth. Ctfs. of Prtn. (San Diego Gas & Elec. Co. Proj.) 5.9% 6/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 34,000 | 37,915 | ||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. Bonds: | ||||
(Republic Svcs., Inc. Proj.) Series 2010 A, 1.2%, tender 2/1/12 (b)(e) | 2,400 | 2,401 | ||
(Waste Mgmt., Inc. Proj.) Series 2003 A, 5%, tender 5/1/13 (b)(e) | 2,300 | 2,407 | ||
California Pub. Works Board Lease Rev.: | ||||
(Dept. of Corrections & Rehab. Proj.) Series 2011 C, 5% 10/1/18 | 1,750 | 2,002 | ||
(Univ. Proj.) Series 2011 B: | ||||
5% 10/1/18 | 2,740 | 3,162 | ||
5% 10/1/19 | 1,490 | 1,712 | ||
(Various Cap. Projects) Series 2011 A: | ||||
5% 10/1/18 | 6,475 | 7,408 | ||
5% 10/1/19 | 5,000 | 5,712 | ||
5% 10/1/20 | 2,525 | 2,857 | ||
(Various Judicial Council Projects) Series 2011 D, 5% 12/1/19 | 4,100 | 4,648 | ||
Series 2009 J, 5% 11/1/17 | 2,300 | 2,607 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Pub. Works Board Lease Rev.: - continued | ||||
Series 2010 A: | ||||
5% 3/1/16 | $ 2,000 | $ 2,264 | ||
5% 3/1/17 | 5,405 | 6,049 | ||
California State Univ. Rev. Series 2007 C, 5% 11/1/13 (FSA Insured) | 1,335 | 1,444 | ||
California Statewide Cmntys. Dev. Auth. Rev. (State of California Proposition 1A Receivables Prog.) Series 2009: | ||||
4% 6/15/13 | 1,000 | 1,045 | ||
5% 6/15/13 | 16,650 | 17,642 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: | ||||
Series 2003 B: | ||||
5.5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) | 2,000 | 2,140 | ||
5.625% 6/1/38 (Pre-Refunded to 6/1/13 @ 100) | 3,030 | 3,247 | ||
Series 2007 A1, 5% 6/1/12 | 2,570 | 2,593 | ||
Los Angeles County Metropolitan Trans. Auth. Sales Tax Rev.: | ||||
Series 2009 A, 5% 7/1/13 | 4,155 | 4,437 | ||
Series 2009 B, 5% 7/1/17 | 12,905 | 15,359 | ||
Los Angeles County Pub. Works Fing. Auth. Lease Rev. Series 2010 A, 5% 8/1/17 | 5,000 | 5,784 | ||
Los Angeles Gen. Oblig. Series 2011 B, 5% 9/1/18 | 20,960 | 25,398 | ||
Los Angeles Unified School District Series 2009 KRY, 5% 7/1/13 | 10,740 | 11,468 | ||
Los Angeles Unified School District Ctfs. of Prtn. (Multiple Properties Proj.) Series 2010 A: | ||||
5% 12/1/16 | 2,025 | 2,264 | ||
5% 12/1/17 | 9,790 | 11,063 | ||
Los Angeles Wastewtr. Sys. Rev. Series 2009 A, 5% 6/1/15 | 12,240 | 13,915 | ||
Monterey County Pub. Impt. Corp. Ctfs. of Prtn. (Refing. Proj.) Series 2009, 5% 8/1/17 (FSA Insured) | 2,130 | 2,447 | ||
Newport Beach Rev. Bonds (Hoag Memorial Hosp. Presbyterian Proj.) Series 2009 E, 5%, tender 2/7/13 (b) | 2,500 | 2,615 | ||
Northern California Pwr. Agcy. Rev.: | ||||
(Geothermal #3 Proj.) Series 2009 A: | ||||
5% 7/1/13 | 1,020 | 1,085 | ||
5% 7/1/14 | 1,120 | 1,224 | ||
5% 7/1/15 | 2,170 | 2,440 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Northern California Pwr. Agcy. Rev.: - continued | ||||
(Hydroelectric #1 Proj.) Series 2010 A: | ||||
4% 7/1/15 | $ 2,000 | $ 2,177 | ||
5% 7/1/18 | 2,000 | 2,392 | ||
Poway Unified School District Pub. Fing. Auth. Lease Rev. Bonds Series 2008 B, 0%, tender 12/1/14 (FSA Insured) (b) | 7,115 | 6,681 | ||
Sacramento Muni. Util. District Elec. Rev. Series 2011 X, 5% 8/15/21 | 4,000 | 4,827 | ||
Sacramento Pwr. Auth. Cogeneration Proj. Rev. Series 2005 A, 5% 7/1/18 (AMBAC Insured) | 2,890 | 3,067 | ||
San Bernardino County Ctfs. of Prtn. (Arrowhead Proj.) Series 2009 A: | ||||
5% 8/1/16 | 5,450 | 5,971 | ||
5% 8/1/18 | 8,000 | 8,983 | ||
San Diego Cmnty. College District Series 2007, 0% 8/1/16 (FSA Insured) | 1,160 | 1,040 | ||
San Diego Pub. Facilities Fing. Auth. Swr. Rev.: | ||||
Series 2009 A: | ||||
5% 5/15/13 | 5,415 | 5,753 | ||
5% 5/15/15 | 1,845 | 2,085 | ||
Series 2009 B, 5% 5/15/14 | 7,000 | 7,679 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,600 | 3,595 | ||
| 437,549 | |||
Colorado - 0.2% | ||||
Colorado Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys./Sunbelt Proj.) Series 2006 F: | ||||
5% 11/15/12 | 380 | 394 | ||
5% 11/15/12 (Escrowed to Maturity) | 845 | 879 | ||
Bonds (Catholic Health Initiatives Proj.) Series 2008 C4, 4%, tender 11/12/15 (b) | 4,200 | 4,588 | ||
Univ. of Colorado Enterprise Sys. Rev. Series 2009 A, 5% 6/1/17 | 500 | 598 | ||
| 6,459 | |||
Connecticut - 2.3% | ||||
Connecticut Dev. Auth. Poll. Cont. Rev. Bonds (Connecticut Lt. & Pwr. Co. Proj.) Series 1996 A, 1.25%, tender 4/2/12 (b)(e) | 27,000 | 27,004 | ||
Connecticut Gen. Oblig. (Econ. Recovery Proj.) Series 2009 A, 5% 1/1/15 | 29,500 | 33,236 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Connecticut - continued | ||||
Connecticut Spl. Tax Oblig. Trans. Infrastructure Rev.: | ||||
Series 1998 A, 5.5% 10/1/13 (FGIC Insured) | $ 4,300 | $ 4,663 | ||
Series 2009 1: | ||||
5% 2/1/14 | 2,500 | 2,723 | ||
5% 2/1/15 | 11,995 | 13,540 | ||
Series 2011 A, 5% 12/1/18 | 5,575 | 6,838 | ||
Connecticut Transmission Muni. Elec. Energy Bonds Series 2011 A, 0.95%, tender 5/15/12 (b) | 5,900 | 5,901 | ||
Hartford Gen. Oblig. Series A, 5% 8/15/12 (Assured Guaranty Corp. Insured) | 1,000 | 1,026 | ||
| 94,931 | |||
Delaware - 0.1% | ||||
Delaware Econ. Dev. Auth. Rev. Bonds (Delmarva Pwr. & Lt. Co. Proj.) Series 2001 C, 0.75%, tender 6/1/12 (b) | 5,500 | 5,502 | ||
District Of Columbia - 0.6% | ||||
District of Columbia Gen. Oblig.: | ||||
Series 2007 B, 5% 6/1/16 (AMBAC Insured) | 3,555 | 4,113 | ||
Series B, 0% 6/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,600 | 3,581 | ||
District of Columbia Income Tax Rev. Series 2009 C, 5% 12/1/13 | 5,500 | 5,971 | ||
District of Columbia Rev. (Medlantic/Helix Proj.) Series 1998 C, 5% 8/15/15 (FSA Insured) | 1,500 | 1,640 | ||
District of Columbia Univ. Rev. Bonds (Georgetown Univ. Proj.) Series 2001 B, 4.7%, tender 4/1/18 (b) | 8,500 | 9,506 | ||
Washington DC Metropolitan Transit Auth. Rev. Series 2009 A, 5% 7/1/14 | 1,000 | 1,099 | ||
| 25,910 | |||
Florida - 7.0% | ||||
Alachua County Health Facilities Auth. Health Facilities Rev. (Shands Teaching Hospitals & Clinics, Inc. Proj.) Series 2010 B: | ||||
5% 12/1/14 | 4,000 | 4,322 | ||
5% 12/1/15 | 4,395 | 4,791 | ||
Broward County School Board Ctfs. of Prtn. Series 2008 A, 5% 7/1/15 (FSA Insured) | 5,495 | 6,036 | ||
Citizens Property Ins. Corp. Series 2010 A1, 5% 6/1/15 (FSA Insured) | 14,000 | 15,231 | ||
Clay County Infrastructure Sales Surtax Rev. 5% 10/1/15 (Assured Guaranty Corp. Insured) | 7,745 | 8,575 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Clearwater Wtr. and Swr. Rev.: | ||||
Series 2009 B, 5% 12/1/14 | $ 2,000 | $ 2,215 | ||
Series 2011: | ||||
4% 12/1/16 | 1,265 | 1,410 | ||
5% 12/1/17 | 1,685 | 1,995 | ||
5% 12/1/18 | 685 | 816 | ||
5% 12/1/19 | 1,820 | 2,195 | ||
5% 12/1/20 | 1,000 | 1,216 | ||
Collier County Indl. Dev. Auth. Healthcare Facilities Rev. (NCH Healthcare Sys. Proj.) Series 2011: | ||||
5% 10/1/14 | 1,355 | 1,461 | ||
5% 10/1/16 | 1,530 | 1,665 | ||
5% 10/1/17 | 1,455 | 1,586 | ||
Escambia City Health Facilities Auth. Rev. (Ascension Health Cr. Group Proj.) Series 2003 A, 5.25% 11/15/13 | 4,265 | 4,626 | ||
Escambia County Poll. Cont. Rev. Bonds (Gulf Pwr. Co. Proj.) Series 2003, 1.75%, tender 6/15/12 (b) | 1,500 | 1,506 | ||
Florida Board of Ed. Series 2005 B, 5% 1/1/18 | 21,080 | 23,788 | ||
Florida Board of Ed. Lottery Rev. Series 2011 A, 5% 7/1/20 | 8,600 | 10,478 | ||
Florida Board of Ed. Pub. Ed. Cap. Outlay: | ||||
Series 2009 C, 5% 6/1/20 | 3,625 | 4,452 | ||
Series 2009 D, 5.5% 6/1/16 | 7,910 | 9,421 | ||
Florida Gen. Oblig. (Dept. of Trans. Right-of-Way and Bridge Construction Proj.) Series 2005 B, 6.375% 7/1/13 | 8,020 | 8,713 | ||
Florida Hurricane Catastrophe Fund Fin. Corp. Rev. Series 2010 A, 5% 7/1/15 | 20,000 | 21,991 | ||
Greater Orlando Aviation Auth. Arpt. Facilities Rev. Series 2011 C: | ||||
5% 10/1/19 | 1,705 | 2,034 | ||
5% 10/1/20 | 1,000 | 1,199 | ||
Highlands County Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys./Sunbelt, Inc. Prog.) Series 2009 E, 5% 11/15/15 | 2,345 | 2,624 | ||
Bonds (Adventist Health Sys./Sunbelt, Inc. Prog.): | ||||
Series 2002, 3.95%, tender 9/1/12 (b) | 16,650 | 17,016 | ||
Series 2008 A, 6.1%, tender 11/14/13 (b) | 1,000 | 1,093 | ||
Hillsborough County Indl. Dev. (H Lee Moffitt Cancer Ctr. Proj.) Series 2007 A, 5% 7/1/12 | 1,310 | 1,332 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (Tampa Elec. Co. Proj.): | ||||
Series 2006, 5%, tender 3/15/12 (AMBAC Insured) (b) | $ 1,500 | $ 1,513 | ||
Series 2007 B, 5.15%, tender 9/1/13 (b) | 1,750 | 1,851 | ||
Indian River County Wtr. & Swr. Rev.: | ||||
5% 9/1/15 | 1,000 | 1,127 | ||
5% 9/1/17 | 1,000 | 1,180 | ||
Jacksonville Elec. Auth. Elec. Sys. Rev. Series 2009 B, 5% 10/1/12 | 7,350 | 7,599 | ||
JEA Wtr. & Swr. Sys. Rev. Series 2010 D, 5% 10/1/21 | 1,945 | 2,368 | ||
Kissimmee Util. Auth. Elec. Sys. Rev.: | ||||
Series 2003: | ||||
5.25% 10/1/14 | 775 | 856 | ||
5.25% 10/1/15 | 3,525 | 3,997 | ||
Series 2011, 2% 10/1/12 | 2,195 | 2,218 | ||
Lakeland Hosp. Sys. Rev. Series 2011, 3% 11/15/12 | 1,000 | 1,013 | ||
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured) | 1,980 | 2,003 | ||
Miami-Dade County Cap. Asset Acquisition Series 2002 A, 5% 4/1/12 (AMBAC Insured) | 2,800 | 2,828 | ||
Miami-Dade County Pub. Facilities Rev.: | ||||
(Jackson Health Sys. Proj.) Series 2005 B: | ||||
5% 6/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,790 | 5,091 | ||
5% 6/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,875 | 4,059 | ||
Series 2005 B, 5% 6/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,270 | 1,291 | ||
Miami-Dade County Wtr. & Swr. Rev. Series 2008 A, 5% 10/1/14 (FSA Insured) | 4,000 | 4,390 | ||
North Brevard County Hosp. District Rev. (Parrish Med. Ctr. Proj.) Series 2008, 4.625% 10/1/12 | 1,110 | 1,134 | ||
Orange County Health Facilities Auth. (Orlando Health, Inc.) Series 2009: | ||||
5% 10/1/15 | 2,210 | 2,418 | ||
5% 10/1/16 | 1,000 | 1,105 | ||
Orange County Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys. - Sunbelt Proj.) 5.625% 11/15/32 (Pre-Refunded to 11/15/12 @ 101) | 2,500 | 2,633 | ||
(Orlando Reg'l. Healthcare Sys. Proj.) Series 2008 A: | ||||
5% 11/1/13 (FSA Insured) | 1,000 | 1,050 | ||
5% 11/1/15 (FSA Insured) | 1,825 | 1,975 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Orlando & Orange County Expressway Auth. Rev. Series 2010 B, 5% 7/1/15 (FSA Insured) | $ 1,430 | $ 1,582 | ||
Orlando Utils. Commission Util. Sys. Rev.: | ||||
Series 2009 C, 5% 10/1/17 | 1,500 | 1,793 | ||
Series 2010 C, 5% 10/1/17 | 1,895 | 2,257 | ||
Series 2011 B: | ||||
5% 10/1/18 | 2,250 | 2,727 | ||
5% 10/1/19 | 2,325 | 2,819 | ||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev. Series 2011: | ||||
5% 10/1/17 (e) | 4,465 | 5,020 | ||
5% 10/1/18 (e) | 2,745 | 3,097 | ||
5% 10/1/19 (e) | 2,025 | 2,288 | ||
Polk County School District Sales Tax Rev. Series 2007, 5% 10/1/12 (FSA Insured) | 6,080 | 6,268 | ||
Sarasota County School Board Ctfs. of Prtn. (Master Lease Prog.): | ||||
5% 7/1/13 | 3,435 | 3,634 | ||
5% 7/1/14 | 2,000 | 2,166 | ||
Tampa Bay Wtr. Reg'l. Wtr. Supply Auth. Util. Sys. Rev.: | ||||
Series 2011 B, 5% 10/1/18 | 4,700 | 5,717 | ||
Series 2011, 5% 10/1/19 | 5,590 | 6,868 | ||
Tampa Health Sys. Rev. (Baycare Health Sys. Proj.) Series 2010: | ||||
5% 11/15/16 | 2,500 | 2,880 | ||
5% 11/15/17 | 1,500 | 1,752 | ||
Tampa Solid Waste Sys. Rev. Series 2010: | ||||
4% 10/1/14 (FSA Insured) (e) | 3,000 | 3,144 | ||
5% 10/1/15 (FSA Insured) (e) | 2,920 | 3,188 | ||
5% 10/1/16 (FSA Insured) (e) | 6,000 | 6,683 | ||
5% 10/1/17 (FSA Insured) (e) | 5,000 | 5,641 | ||
Titusville Wtr. & Swr. Rev. Series 2010, 5% 10/1/17 (Assured Guaranty Corp. Insured) | 1,135 | 1,324 | ||
| 288,334 | |||
Georgia - 3.2% | ||||
Appling County Dev. Auth. Poll. Cont. Rev. Bonds (Oglethorpe Pwr. Corp. Hatch Proj.) Series 2011 A, 2.5%, tender 3/1/13 (b) | 5,000 | 5,078 | ||
Atlanta Arpt. Rev. Series 2011 B, 5% 1/1/13 (e) | 1,000 | 1,040 | ||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. Bonds: | ||||
(Georgia Pwr. Co. Plant Vogtle Proj.): | ||||
Fifth Series 1994, 2.3%, tender 4/1/14 (b) | 6,600 | 6,731 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Georgia - continued | ||||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. Bonds: - continued | ||||
(Georgia Pwr. Co. Plant Vogtle Proj.): | ||||
Series 2008: | ||||
0.8%, tender 6/21/12 (b) | $ 13,855 | $ 13,870 | ||
5.05%, tender 1/12/12 (b) | 1,500 | 1,501 | ||
(Oglethorpe Pwr. Corp. Vogtle Proj.): | ||||
Series 2008 D, 6.75%, tender 4/1/12 (b) | 7,600 | 7,705 | ||
Series 2011 A, 2.5%, tender 3/1/13 (b) | 3,500 | 3,554 | ||
Fulton County Facilities Corp. Ctfs. of Prtn. (Gen. Purp. Proj.) Series 2009: | ||||
5% 11/1/12 | 1,555 | 1,606 | ||
5% 11/1/13 | 7,550 | 8,041 | ||
5% 11/1/14 | 7,490 | 8,177 | ||
Fulton County Wtr. & Swr. Rev. Series 2011: | ||||
5% 1/1/19 | 4,000 | 4,875 | ||
5% 1/1/20 | 4,000 | 4,918 | ||
Georgia Road & Thruway Auth. Rev. Series 2009 A, 5% 6/1/12 | 8,100 | 8,256 | ||
Main Street Natural Gas, Inc. Georgia Gas Proj. Rev. Series 2007 A, 5% 9/15/12 | 1,195 | 1,210 | ||
Monroe County Dev. Auth. Poll. Cont. Rev. Bonds (Oglethorpe Pwr. Corp. Scherer Proj.) Series 2011 A, 2.5%, tender 3/1/13 (b) | 11,500 | 11,679 | ||
Muni. Elec. Auth. of Georgia (Proj. One): | ||||
Series 2008 A: | ||||
5% 1/1/13 | 2,000 | 2,080 | ||
5.25% 1/1/17 (Berkshire Hathaway Assurance Corp. Insured) | 7,925 | 9,399 | ||
Series 2008 D: | ||||
5.75% 1/1/19 | 14,890 | 18,181 | ||
5.75% 1/1/20 | 3,555 | 4,307 | ||
Pub. Gas Partners, Inc. Rev. (Gas Supply Pool No. 1 Proj.) Series A, 5% 10/1/12 | 1,000 | 1,030 | ||
Richmond County Hosp. Auth. (Univ. Health Svcs., Inc. Proj.) Series 2009: | ||||
5% 1/1/14 | 1,305 | 1,391 | ||
5% 1/1/15 | 1,040 | 1,113 | ||
5% 1/1/16 | 2,415 | 2,610 | ||
5% 1/1/18 | 1,530 | 1,664 | ||
| 130,016 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Hawaii - 0.7% | ||||
Hawaii Arpts. Sys. Rev.: | ||||
Series 2010 B, 5% 7/1/15 (e) | $ 3,900 | $ 4,348 | ||
Series 2011, 5% 7/1/19 (e) | 4,000 | 4,527 | ||
Hawaii Gen. Oblig.: | ||||
Series DR: | ||||
5% 6/1/16 | 7,645 | 8,945 | ||
5% 6/1/16 (Escrowed to Maturity) | 2,895 | 3,415 | ||
Series DY: | ||||
5% 2/1/15 | 3,500 | 3,946 | ||
5% 2/1/16 | 4,000 | 4,630 | ||
| 29,811 | |||
Illinois - 7.5% | ||||
Chicago Board of Ed. Series 2009 D: | ||||
5% 12/1/17 (Assured Guaranty Corp. Insured) | 4,115 | 4,765 | ||
5% 12/1/18 (Assured Guaranty Corp. Insured) | 2,335 | 2,719 | ||
Chicago Gen. Oblig.: | ||||
(City Colleges Proj.): | ||||
Series 1999: | ||||
0% 1/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,200 | 6,289 | ||
0% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 2,513 | ||
0% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 9,000 | 7,204 | ||
Series1999, 0% 1/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 10,000 | 7,621 | ||
Series A: | ||||
5% 1/1/17 (FSA Insured) | 3,465 | 3,864 | ||
5.25% 1/1/12 (Escrowed to Maturity) | 825 | 825 | ||
5.25% 1/1/12 (FSA Insured) | 175 | 175 | ||
Series B: | ||||
5% 1/1/17 (FSA Insured) | 5,115 | 5,716 | ||
5.125% 1/1/15 (AMBAC Insured) | 3,995 | 4,303 | ||
Chicago Hsg. Auth. Rev. (Cap. Prog.) Series 2001, 5.5% 7/1/18 (Pre-Refunded to 7/1/12 @ 100) | 2,850 | 2,922 | ||
Chicago Midway Arpt. Rev. Bonds Series 2010 B, 5%, tender 1/1/15 (b) | 5,000 | 5,406 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series 2008 A: | ||||
5% 1/1/12 (FSA Insured) | 3,500 | 3,500 | ||
5% 1/1/13 (FSA Insured) | 4,000 | 4,172 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Chicago O'Hare Int'l. Arpt. Rev.: - continued | ||||
Series 2010 D, 5.25% 1/1/17 (e) | $ 1,000 | $ 1,122 | ||
Series 2010 E: | ||||
5% 1/1/15 (e) | 4,000 | 4,328 | ||
5% 1/1/16 (e) | 1,500 | 1,656 | ||
Series 2011 B, 5% 1/1/18 | 6,500 | 7,484 | ||
Series A, 5% 1/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,165 | 1,165 | ||
Chicago Sales Tax Rev. Series 1998, 5.5% 1/1/16 (FGIC Insured) (FSA Insured) | 1,710 | 1,957 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | ||||
(Fed. Transit Administration Section 5309 Proj.) Series 2008 A, 5% 6/1/13 | 3,765 | 3,969 | ||
5% 6/1/19 (Assured Guaranty Corp. Insured) | 2,085 | 2,279 | ||
5% 6/1/19 (Assured Guaranty Corp. Insured) (Pre-Refunded to 12/1/16 @ 100) | 415 | 494 | ||
Cook County Thorton Township High School District #205 5.5% 12/1/16 (Assured Guaranty Corp. Insured) | 2,500 | 2,944 | ||
Illinois Fin. Auth. Gas Supply Rev. Bonds (The Peoples Gas Lt. and Coke Co. Proj.): | ||||
Series 2010 B, 2.625%, tender 8/1/15 (b) | 9,500 | 9,740 | ||
Series 2010, 2.125%, tender 7/1/14 (b) | 11,500 | 11,568 | ||
Illinois Fin. Auth. Hosp. Rev. (KishHealth Sys. Proj.) Series 2008, 5.25% 10/1/15 | 2,220 | 2,382 | ||
Illinois Fin. Auth. Rev.: | ||||
(Advocate Health Care Proj.) Series 2010 D, 5% 4/1/15 | 550 | 609 | ||
(Alexian Brothers Health Sys. Proj.) Series 2010, 4.5% 2/15/16 | 3,000 | 3,181 | ||
(Memorial Health Sys. Proj.) Series 2009, 5% 4/1/19 | 1,600 | 1,738 | ||
(Northwest Cmnty. Hosp. Proj.) Series 2008 A: | ||||
5% 7/1/12 | 750 | 765 | ||
5% 7/1/13 | 415 | 437 | ||
5% 7/1/15 | 1,000 | 1,099 | ||
(Palos Cmnty. Hosp. Proj.) Series 2010 C: | ||||
5% 5/15/16 | 2,060 | 2,283 | ||
5% 5/15/17 | 3,520 | 3,946 | ||
(Provena Health Proj.) Series 2010 A: | ||||
5% 5/1/13 | 2,000 | 2,070 | ||
5% 5/1/14 | 2,000 | 2,100 | ||
5.75% 5/1/19 | 2,650 | 2,861 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Fin. Auth. Rev.: - continued | ||||
(Rush Univ. Med. Ctr. Proj.) Series 2006 B: | ||||
5% 11/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 3,075 | $ 3,310 | ||
5% 11/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,700 | 1,824 | ||
(The Carle Foundation Proj.) Series 2009 A, 5% 2/15/12 (Assured Guaranty Corp. Insured) | 4,965 | 4,981 | ||
Bonds (Advocate Health Care Proj.): | ||||
Series 2008 A3, 3.875%, tender 5/1/12 (b) | 4,000 | 4,042 | ||
Series 2008 C B3, 4.375%, tender 7/1/14 (b) | 4,000 | 4,250 | ||
Illinois Gen. Oblig.: | ||||
(Illinois FIRST Proj.) Series 2001, 5% 11/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,500 | 1,504 | ||
Series 1, 5.25% 8/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,865 | 2,934 | ||
Series 2002: | ||||
5% 10/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,515 | 3,595 | ||
5.5% 8/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,495 | 1,680 | ||
Series 2003 A, 5.25% 10/1/13 (FSA Insured) | 3,755 | 4,017 | ||
Series 2004 B, 5% 3/1/14 | 15,500 | 16,660 | ||
Series 2004, 5% 11/1/16 | 11,000 | 12,434 | ||
Series 2005: | ||||
5% 4/1/13 (AMBAC Insured) | 5,000 | 5,234 | ||
5% 4/1/17 (AMBAC Insured) | 8,050 | 8,724 | ||
Series 2007 A, 5.5% 6/1/15 | 1,000 | 1,119 | ||
Series 2007 B, 5% 1/1/17 | 9,835 | 11,060 | ||
Series 2009 A, 3.5% 9/1/13 | 3,000 | 3,111 | ||
Series 2010: | ||||
4% 1/1/13 | 3,695 | 3,800 | ||
5% 1/1/15 (FSA Insured) | 20,000 | 21,885 | ||
Illinois Health Facilities Auth. Rev.: | ||||
(Delnor-Cmnty. Hosp. Proj.) Series 2003 A: | ||||
5% 5/15/15 (FSA Insured) | 2,250 | 2,412 | ||
5% 5/15/16 (FSA Insured) | 2,325 | 2,529 | ||
Series 2003 A, 5% 5/15/17 (FSA Insured) | 2,150 | 2,425 | ||
Illinois Sales Tax Rev.: | ||||
Series 2009 B: | ||||
4.5% 6/15/16 | 5,000 | 5,613 | ||
4.5% 6/15/17 | 6,075 | 6,949 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Sales Tax Rev.: - continued | ||||
Series 2010, 5% 6/15/15 | $ 8,800 | $ 9,906 | ||
Series 2011, 4% 6/15/13 | 2,600 | 2,718 | ||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series 2002 B, 5.5% 1/1/12 (FSA Insured) | 2,270 | 2,270 | ||
Kane County School District #129, Aurora West Side Series 2002 A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) | 1,600 | 1,606 | ||
Lake County Cmnty. Consolidated School District #73 Gen. Oblig.: | ||||
0% 12/1/15 (Escrowed to Maturity) | 580 | 556 | ||
0% 12/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,520 | 1,352 | ||
Metropolitan Pier & Exposition: | ||||
(McCormick Place Expansion Proj.) Series 1996 A: | ||||
0% 6/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,410 | 1,397 | ||
0% 12/15/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,725 | 2,592 | ||
Series A, 0% 6/15/14 (Escrowed to Maturity) | 8,625 | 8,456 | ||
0% 6/15/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 700 | 654 | ||
Univ. of Illinois Rev. 0% 4/1/14 | 2,350 | 2,251 | ||
Will County Cmnty. Unit School District #365-U: | ||||
0% 11/1/14 (Escrowed to Maturity) | 1,025 | 998 | ||
0% 11/1/14 (FSA Insured) | 875 | 821 | ||
0% 11/1/16 (Escrowed to Maturity) | 740 | 697 | ||
0% 11/1/16 (FSA Insured) | 2,235 | 1,934 | ||
| 308,471 | |||
Indiana - 2.3% | ||||
Hamilton Southeastern Consolidated School Bldg. Corp.: | ||||
Series 2004, 5% 1/15/12 (FSA Insured) | 1,990 | 1,992 | ||
Series 2005 A, 5.25% 1/10/12 (FSA Insured) | 1,355 | 1,356 | ||
Indiana Fin. Auth. Health Sys. Rev. (Sisters of Saint Francis Health Svcs., Inc. Obligated Group Proj.) Series 2008 C, 5% 11/1/13 | 3,000 | 3,210 | ||
Indiana Fin. Auth. Hosp. Rev.: | ||||
(Jackson County Schneck Memorial Hosp. Proj.) Series 2010, 5% 2/15/18 | 1,475 | 1,595 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Indiana Fin. Auth. Hosp. Rev.: - continued | ||||
(Parkview Health Sys. Oblig. Group Proj.) | ||||
5% 5/1/14 | $ 3,500 | $ 3,768 | ||
5% 5/1/15 | 6,420 | 7,021 | ||
Indiana Fin. Auth. Rev.: | ||||
(Trinity Health Cr. Group Proj.) Series 2009 A: | ||||
5% 12/1/14 | 1,250 | 1,386 | ||
5% 12/1/15 | 2,135 | 2,409 | ||
(Wabash Valley Correctional Facilities Proj.) Series 2009 A, 5% 7/1/15 | 8,025 | 8,895 | ||
(Wabash Valley Correctional Facility Proj.) Series 2009 A, 5% 7/1/14 | 2,500 | 2,701 | ||
Series 2010 A, 5% 2/1/17 | 2,800 | 3,342 | ||
Indiana Health & Edl. Facilities Fing. Auth. Rev. Bonds (Ascension Health Sr. Cr. Group Proj.) Series 2006 B1, 4.1%, tender 11/3/16 (b) | 4,000 | 4,451 | ||
Indiana Health Facility Fing. Auth. Rev. Bonds: | ||||
(Ascension Health Cr. Group Proj.) Series 2001 A1, 1.5%, tender 8/1/14 (b) | 3,400 | 3,443 | ||
(Ascension Health Subordinate Cr. Proj.) Series A2, 3.75%, tender 2/1/12 (b) | 7,500 | 7,518 | ||
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2011 A: | ||||
5% 1/1/19 | 1,470 | 1,758 | ||
5% 1/1/20 | 1,250 | 1,498 | ||
Indiana Port Commission Port Rev. (Cargill, Inc. Proj.) 4.1% 5/1/12 | 4,100 | 4,146 | ||
Indianapolis Local Pub. Impt. Bond Bank (Wtrwks. Proj.): | ||||
Series 2002 A, 5.5% 7/1/16 (Pre-Refunded to 7/1/12 @ 100) | 5,000 | 5,129 | ||
Series F, 5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 515 | 578 | ||
Indianapolis Thermal Energy Sys. Series 2010 B: | ||||
5% 10/1/16 | 5,000 | 5,714 | ||
5% 10/1/17 | 5,000 | 5,774 | ||
Jasper County Indl. Poll. Ctl. Rev. (Northern Indiana Pub. Svc. Co. Proj.) Series 1988 B, 5.2% 6/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 3,143 | ||
Logansport High School Bldg. Corp. Series 2005: | ||||
5.25% 1/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,045 | 1,046 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Logansport High School Bldg. Corp. Series 2005: - continued | ||||
5.25% 7/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,075 | $ 1,101 | ||
Muncie School Bldg. Corp. Series 2005, 5.25% 7/10/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,585 | 1,623 | ||
Purdue Univ. Rev.: | ||||
(Student Facilities Sys. Proj.) Series 2009 B: | ||||
4% 7/1/17 | 500 | 574 | ||
5% 7/1/15 | 315 | 359 | ||
5% 7/1/16 | 500 | 586 | ||
Series Z-1: | ||||
5% 7/1/16 | 1,215 | 1,424 | ||
5% 7/1/17 | 1,000 | 1,201 | ||
5% 7/1/18 | 1,500 | 1,835 | ||
Univ. of Southern Indiana Rev. Series J: | ||||
5% 10/1/14 (Assured Guaranty Corp. Insured) | 1,985 | 2,159 | ||
5% 10/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,111 | ||
5% 10/1/16 (Assured Guaranty Corp. Insured) | 1,165 | 1,324 | ||
West Clark 2000 School Bldg. Corp. Series 2005, 5.25% 1/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,150 | 1,152 | ||
| 96,322 | |||
Iowa - 0.1% | ||||
Iowa Fin. Auth. Health Care Facilities Rev. (Genesis Health Sys. Proj.) Series 2010: | ||||
5% 7/1/15 | 2,165 | 2,349 | ||
5% 7/1/16 | 1,335 | 1,463 | ||
Iowa Fin. Auth. Health Facilities Rev. Series 2005 A, 5% 2/15/16 (Assured Guaranty Corp. Insured) | 1,700 | 1,902 | ||
| 5,714 | |||
Kansas - 0.7% | ||||
Kansas Dev. Fin. Agcy. (Adventist Health Sys./Sunbelt Obligated Group Proj.) Series 2009 D: | ||||
5% 11/15/14 | 575 | 635 | ||
5% 11/15/15 | 625 | 701 | ||
5% 11/15/16 | 875 | 997 | ||
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L, 5.25% 11/15/12 | 680 | 704 | ||
Olathe Health Facilities Rev. Bonds (Olathe Med. Ctr. Proj.) Series 2008 A, 4.125%, tender 3/1/13 (b) | 1,600 | 1,606 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Kansas - continued | ||||
Wichita Hosp. Facilities Rev.: | ||||
(Via Christi Health Sys., Inc. Proj.) | ||||
Series 2009 X: | ||||
5% 11/15/14 | $ 2,000 | $ 2,178 | ||
Series 2009 III A: | ||||
5% 11/15/14 | 2,405 | 2,619 | ||
5% 11/15/15 | 6,245 | 6,913 | ||
5% 11/15/16 | 5,410 | 6,062 | ||
Series 2011 IV A: | ||||
5% 11/15/18 | 2,250 | 2,599 | ||
5% 11/15/20 | 2,745 | 3,137 | ||
| 28,151 | |||
Kentucky - 1.0% | ||||
Ashland Med. Ctr. Rev. (Ashland Hosp. Corp. d/b/a/ King's Daughters Med. Ctr. Proj.) Series 2010 B: | ||||
4% 2/1/14 | 750 | 789 | ||
4% 2/1/15 | 1,495 | 1,586 | ||
Jefferson County School District Fin. Corp. School Bldg. Rev. Series 2009 A, 5.25% 1/1/13 (FSA Insured) | 2,170 | 2,273 | ||
Kentucky Econ. Dev. Fin. Auth. Hosp. Rev. (Baptist Healthcare Sys. Proj.) Series A, 5% 8/15/15 | 4,000 | 4,438 | ||
Kentucky Econ. Dev. Fin. Auth. Rev. (Ashland Hosp. Corp. d/b/a/ King's Daughters Med. Ctr. Proj.) Series 2010 A, 4% 2/1/13 | 500 | 517 | ||
Kentucky State Property & Buildings Commission Rev. (#82 Proj.) 5.25% 10/1/17 (FSA Insured) | 2,450 | 2,931 | ||
Louisville/Jefferson County Metropolitan Govt. Poll. Cont. Rev. Bonds (Louisville Gas and Electronic Co. Proj.): | ||||
Series 2003 A, 1.9%, tender 4/2/12 (b) | 10,900 | 10,927 | ||
Series 2005 A, 5.75%, tender 12/2/13 (b) | 6,000 | 6,420 | ||
Series 2007 B, 1.9%, tender 6/1/12 (b) | 10,900 | 10,943 | ||
| 40,824 | |||
Louisiana - 0.3% | ||||
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. Series ST-2005 B, 5% 2/1/12 (AMBAC Insured) | 1,000 | 1,003 | ||
Louisiana Pub. Facilities Auth. Rev.: | ||||
(Christus Health Proj.) Series 2009 A: | ||||
5% 7/1/13 | 3,500 | 3,684 | ||
5% 7/1/16 | 2,000 | 2,211 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Louisiana - continued | ||||
Louisiana Pub. Facilities Auth. Rev.: - continued | ||||
(Entergy Gulf States Louisiana LLC Proj.) Series 2010 B, 2.875% 11/1/15 | $ 3,000 | $ 3,057 | ||
Reg'l. Transit Auth. Louisiana Sales Tax Rev. 4% 12/1/16 (FSA Insured) | 1,000 | 1,104 | ||
| 11,059 | |||
Maryland - 1.2% | ||||
Maryland Gen. Oblig. Second Series B, 5.25% 8/15/16 | 16,100 | 19,329 | ||
Maryland Health & Higher Edl. Facilities Auth. Rev.: | ||||
(Univ. of Maryland Med. Sys. Proj.) Series 2008 F: | ||||
5% 7/1/13 | 2,400 | 2,537 | ||
5% 7/1/14 | 3,500 | 3,788 | ||
Bonds (Johns Hopkins Health Sys. Obligated Group Proj.) Series 2008 B, 5%, tender 5/15/15 (b) | 2,225 | 2,500 | ||
Montgomery County Gen. Oblig.: | ||||
(Dept. of Liquor Cont. Proj.) Series 2009 A, 5% 4/1/15 | 1,725 | 1,940 | ||
Series 2011 A, 5% 7/1/20 | 16,000 | 19,838 | ||
| 49,932 | |||
Massachusetts - 1.7% | ||||
Braintree Gen. Oblig. Series 2009: | ||||
5% 5/15/14 | 1,000 | 1,100 | ||
5% 5/15/16 | 4,400 | 5,147 | ||
Massachusetts Bay Trans. Auth. Series 1993 A, 5.5% 3/1/12 | 95 | 96 | ||
Massachusetts Bay Trans. Auth. Sales Tax Rev. Series 2006 B, 5.25% 7/1/18 | 2,300 | 2,857 | ||
Massachusetts Dept. of Trans. Metropolitan Hwy. Sys. Rev. Series 2010 B, 5% 1/1/15 | 12,400 | 13,618 | ||
Massachusetts Dev. Fin. Agcy. Rev.: | ||||
(Boston College Proj.): | ||||
Series Q1: | ||||
4% 7/1/15 | 1,500 | 1,642 | ||
4% 7/1/16 | 1,000 | 1,119 | ||
5% 7/1/13 | 1,000 | 1,067 | ||
Series Q2: | ||||
4% 7/1/15 | 1,170 | 1,281 | ||
4% 7/1/16 | 1,000 | 1,119 | ||
5% 7/1/13 | 1,100 | 1,173 | ||
5% 7/1/14 | 1,080 | 1,183 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Massachusetts - continued | ||||
Massachusetts Dev. Fin. Agcy. Rev.: - continued | ||||
(Boston College Proj.): | ||||
Series Q2: | ||||
5% 7/1/17 | $ 1,370 | $ 1,634 | ||
(Tufts Med. Ctr. Proj.) Series I: | ||||
5% 1/1/14 | 1,550 | 1,622 | ||
5% 1/1/16 | 1,300 | 1,377 | ||
Massachusetts Gen. Oblig. Series 2002 C: | ||||
5% 11/1/21 (Pre-Refunded to 11/1/12 @ 100) | 8,100 | 8,410 | ||
5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) | 2,495 | 2,596 | ||
Massachusetts Health & Edl. Facilities Auth. Rev. Bonds: | ||||
(Baystate Health Sys. Proj.) Series 2009 K, 5%, tender 7/1/13 (b) | 7,000 | 7,376 | ||
(Northeastern Univ. Proj.): | ||||
Series 2008 T2, 4.1%, tender 4/19/12 (b) | 1,200 | 1,213 | ||
Series 2009 T1, 4.125%, tender 2/16/12 (b) | 2,100 | 2,109 | ||
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series 2001 A, 5.5% 1/1/12 (AMBAC Insured) (e) | 1,000 | 1,000 | ||
Massachusetts Spl. Oblig. Rev. (Fed. Hwy. Grant Anticipation Note Prog.) Series 2003 A: | ||||
5% 12/15/12 (FSA Insured) | 3,300 | 3,448 | ||
5% 12/15/13 (FSA Insured) | 2,000 | 2,167 | ||
Medford Gen. Oblig. Series 2011 B, 4% 3/1/19 | 3,570 | 4,029 | ||
| 68,383 | |||
Michigan - 2.6% | ||||
Allegan Pub. School District Series 2008, 5% 5/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,590 | 1,613 | ||
Big Rapids Pub. School District: | ||||
5% 5/1/13 (Assured Guaranty Corp. Insured) | 1,195 | 1,250 | ||
5% 5/1/14 (Assured Guaranty Corp. Insured) | 1,190 | 1,283 | ||
Chelsea School District 5% 5/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,750 | 1,847 | ||
Clarkston Cmnty. Schools Series 2008, 5% 5/1/12 (FSA Insured) | 3,000 | 3,045 | ||
Detroit Swr. Disp. Rev. Series 2006 D, 0.849% 7/1/32 (b) | 4,075 | 2,707 | ||
Grand Haven Area Pub. Schools 5% 5/1/12 (FSA Insured) | 2,965 | 3,008 | ||
Grand Rapids Cmnty. College: | ||||
5% 5/1/12 (FSA Insured) | 1,305 | 1,324 | ||
5% 5/1/13 (FSA Insured) | 1,305 | 1,376 | ||
Grand Valley Michigan State Univ. Rev. Series 2009, 5% 12/1/16 | 1,320 | 1,517 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Michigan - continued | ||||
Kalamazoo Pub. Schools 5% 5/1/13 (Assured Guaranty Corp. Insured) | $ 2,940 | $ 3,102 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev.: | ||||
(Spectrum Health Sys. Proj.) Series 2011 A: | ||||
5% 11/15/18 | 1,250 | 1,453 | ||
5% 11/15/19 | 1,000 | 1,166 | ||
Bonds (Spectrum Health Sys. Proj.) Series 2008 A, 5.25%, tender 1/15/14 (b) | 2,200 | 2,362 | ||
Lincoln Consolidated School District 5% 5/1/12 (FSA Insured) | 1,485 | 1,507 | ||
Michigan Gen. Oblig. (Envir. Protection Prog.) Series 1992, 6.25% 11/1/12 | 675 | 708 | ||
Michigan Hosp. Fin. Auth. Rev.: | ||||
(McLaren Health Care Corp. Proj.) Series 2008 A, 5.25% 5/15/14 | 4,160 | 4,536 | ||
Bonds (Ascension Health Cr. Group Proj.) Series 1999 B3, 2%, tender 8/1/14 (b) | 11,000 | 11,284 | ||
Michigan Muni. Bond Auth. Rev.: | ||||
(Clean Wtr. Pooled Proj.) Series 2010: | ||||
5% 10/1/14 | 6,045 | 6,758 | ||
5% 10/1/15 | 1,750 | 2,013 | ||
5% 10/1/15 | 3,250 | 3,739 | ||
(Local Govt. Ln. Prog.) Series 2009 C: | ||||
5% 5/1/13 | 1,645 | 1,717 | ||
5% 5/1/14 | 2,140 | 2,276 | ||
5% 5/1/15 | 1,845 | 2,003 | ||
5% 5/1/16 | 1,865 | 2,060 | ||
Plymouth-Canton Cmnty. School District 5% 5/1/12 (FSA Insured) | 4,000 | 4,058 | ||
Pontiac Tax Increment Fin. Auth. Series 2002, 6.25% 6/1/22 (Pre-Refunded to 6/1/12 @ 101) | 2,260 | 2,337 | ||
Royal Oak City School District 5% 5/1/12 | 2,000 | 2,029 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Oblig. Group Proj.) Series 2009 W, 5% 8/1/15 | 2,070 | 2,233 | ||
Wayne County Arpt. Auth. Rev. Series 2011 A, 5% 12/1/19 (e) | 20,000 | 21,954 | ||
West Bloomfield School District 5% 5/1/15 (Assured Guaranty Corp. Insured) | 1,400 | 1,527 | ||
Western Michigan Univ. Rev.: | ||||
5.25% 11/15/14 (Assured Guaranty Corp. Insured) | 2,135 | 2,356 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Michigan - continued | ||||
Western Michigan Univ. Rev.: - continued | ||||
5.25% 11/15/15 (Assured Guaranty Corp. Insured) | $ 3,275 | $ 3,687 | ||
Western Townships Utils. Auth. Swr. Disp. Sys. Rev. Series 2009, 3% 1/1/12 | 1,000 | 1,000 | ||
| 106,835 | |||
Minnesota - 0.2% | ||||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev. Series 2008 A, 5% 1/1/13 (e) | 1,000 | 1,043 | ||
Minnesota 911 Rev. (Pub. Safety Radio Communications Sys. Proj.) Series 2009, 5% 6/1/14 (Assured Guaranty Corp. Insured) | 2,225 | 2,434 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Essentia Health Obligated Group Proj.) Series 2008 C1: | ||||
5% 2/15/15 (Assured Guaranty Corp. Insured) | 1,335 | 1,466 | ||
5% 2/15/16 (Assured Guaranty Corp. Insured) | 565 | 632 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev. Series 2009 A, 5% 1/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,111 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2009 A, 5% 1/1/16 | 1,000 | 1,143 | ||
| 7,829 | |||
Mississippi - 0.1% | ||||
Mississippi Hsg. Fin. Corp. Single Family Mtg. Rev. Series 1983, 0% 6/1/15 (Escrowed to Maturity) | 4,000 | 3,856 | ||
Missouri - 0.1% | ||||
Saint Louis Arpt. Rev. Series 2011 B, 3% 7/1/12 | 1,000 | 1,007 | ||
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series 2002 A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) | 1,050 | 1,056 | ||
| 2,063 | |||
Nebraska - 0.3% | ||||
Nebraska Pub. Pwr. District Rev.: | ||||
Series B, 5% 1/1/12 (FSA Insured) | 3,500 | 3,500 | ||
Series C: | ||||
4% 1/1/15 | 2,360 | 2,559 | ||
4% 1/1/16 | 2,195 | 2,427 | ||
Univ. of Nebraska Facilities Corp. Lease Rental Rev. (UNMC Health Professions Futures Proj.) Series 2009, 5% 8/15/13 | 4,000 | 4,248 | ||
| 12,734 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nevada - 1.8% | ||||
Clark County Arpt. Rev.: | ||||
Series 2008 E: | ||||
5% 7/1/14 | $ 2,905 | $ 3,147 | ||
5% 7/1/15 | 3,500 | 3,880 | ||
Series A1, 5% 7/1/12 (AMBAC Insured) (e) | 2,000 | 2,042 | ||
Clark County Fuel Tax Series 2008, 5% 6/1/13 | 5,815 | 6,163 | ||
Clark County School District: | ||||
(Bldg. Proj.) Series 2008 A, 5% 6/15/12 | 10,000 | 10,203 | ||
Series 1998, 5.5% 6/15/13 (FSA Insured) | 5,000 | 5,334 | ||
Series 2005 A, 5% 6/15/16 (FGIC Insured) | 21,215 | 23,892 | ||
Nevada Dept. of Bus. & Industry (Waste Mgmt., Inc. Proj.) Series 2001, 2.75% 10/1/14 (e) | 3,000 | 3,077 | ||
Nevada Gen. Oblig. Series 2010 C, 5% 6/1/19 | 12,140 | 14,488 | ||
| 72,226 | |||
New Hampshire - 0.0% | ||||
New Hampshire Health & Ed. Facilities Auth. Rev. Series 2011, 3% 10/1/12 | 1,050 | 1,063 | ||
New Jersey - 2.3% | ||||
New Jersey Ctfs. of Prtn.: | ||||
Series 2008 A, 5% 6/15/15 | 750 | 820 | ||
Series 2009 A: | ||||
5% 6/15/15 | 11,285 | 12,474 | ||
5% 6/15/16 | 6,500 | 7,328 | ||
New Jersey Econ. Dev. Auth. Poll. Cont. Rev. (Pub. Svc. Elec. & Gas Pwr. LLC Proj.) 5% 3/1/12 | 3,275 | 3,294 | ||
New Jersey Econ. Dev. Auth. School Facilities Construction Rev.: | ||||
Bonds Series 2008 J4, 5%, tender 9/1/14 (FSA Insured) (b) | 7,000 | 7,576 | ||
Series 2001 A, 5.5% 6/15/13 (AMBAC Insured) | 1,090 | 1,171 | ||
Series 2005 K, 5.25% 12/15/14 (FGIC Insured) | 1,790 | 1,995 | ||
Series 2005 O, 5% 3/1/20 | 6,350 | 6,928 | ||
Series 2008 W: | ||||
5% 3/1/12 (Escrowed to Maturity) | 5,545 | 5,586 | ||
5% 3/1/15 | 10,400 | 11,541 | ||
Series 2009 BB, 5% 9/1/15 | 3,390 | 3,803 | ||
Series 2011 EE, 5% 9/1/20 | 5,000 | 5,882 | ||
New Jersey Gen. Oblig. Series H, 5.25% 7/1/15 (FSA Insured) | 5,000 | 5,738 | ||
New Jersey Higher Ed. Student Assistance Auth. Student Ln. Rev. Series 2010 1A, 5% 12/1/15 | 4,500 | 4,964 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New Jersey - continued | ||||
New Jersey Tpk. Auth. Tpk. Rev. Series 1991 C, 6.5% 1/1/16 (Escrowed to Maturity) | $ 4,300 | $ 4,760 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series 2003 A, 5.5% 12/15/16 (FSA Insured) | 5,000 | 5,905 | ||
Series 2003 B. 5.25% 12/15/19 | 3,000 | 3,601 | ||
| 93,366 | |||
New Mexico - 1.1% | ||||
Farmington Poll. Cont. Rev. Bonds (Southern California Edison Co. Four Corners Proj.) Series 2005 B, 2.875%, tender 4/1/15 (b) | 22,100 | 22,773 | ||
New Mexico Edl. Assistance Foundation: | ||||
Series 2009 B, 4% 9/1/16 | 7,000 | 7,721 | ||
Series 2010 A1: | ||||
4% 12/1/15 | 3,700 | 4,032 | ||
4% 12/1/16 | 6,750 | 7,481 | ||
Rio Rancho Wtr. & Wastewtr. Sys. Rev. Series 2009, 5% 5/15/17 (FSA Insured) | 4,480 | 5,313 | ||
| 47,320 | |||
New York - 13.0% | ||||
Albany Indl. Dev. Agcy. Civic Facility Rev. (St. Peters Hosp. Proj.) Series 2008 A, 5.5% 11/15/12 | 1,000 | 1,039 | ||
Dutchess County Local Dev. Corp. Rev. (Health Quest Systems, Inc. Proj.) Series 2010 A: | ||||
5% 7/1/18 (Assured Guaranty Corp. Insured) (FSA Insured) | 1,100 | 1,232 | ||
5% 7/1/19 (Assured Guaranty Corp. Insured) (FSA Insured) | 640 | 718 | ||
Grand Central District Mgmt. Assoc., Inc. Series 2004, 5% 1/1/12 | 1,175 | 1,175 | ||
Long Island Pwr. Auth. Elec. Sys. Rev. Series 2010 A, 5% 5/1/15 | 5,000 | 5,582 | ||
Metropolitan Trans. Auth. Svc. Contract Rev. Series 2002 A, 5.5% 7/1/17 | 5,000 | 6,079 | ||
New York City Gen. Oblig.: | ||||
Series 1997 H, 6% 8/1/12 (FGIC Insured) | 1,000 | 1,033 | ||
Series 2005 C, 5% 8/1/12 | 19,770 | 20,307 | ||
Series 2005 D, 5% 8/1/12 (Escrowed to Maturity) | 4,925 | 5,059 | ||
Series 2005 F1, 5% 9/1/15 | 3,560 | 4,053 | ||
Series 2005 G, 5.625% 8/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,075 | 5,227 | ||
Series 2008 E, 5% 8/1/12 | 5,000 | 5,136 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York City Gen. Oblig.: - continued | ||||
Series 2010 C, 5% 8/1/13 | $ 7,000 | $ 7,497 | ||
Series B: | ||||
5% 8/1/14 | 10,000 | 11,059 | ||
5% 8/1/15 | 10,000 | 11,362 | ||
Series K: | ||||
5% 8/1/12 | 2,335 | 2,398 | ||
5% 8/1/12 (Escrowed to Maturity) | 2,025 | 2,080 | ||
Series O: | ||||
5% 6/1/12 | 1,745 | 1,779 | ||
5% 6/1/12 (Escrowed to Maturity) | 5,780 | 5,891 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2003 B, 5% 2/1/20 | 3,000 | 3,711 | ||
Series 2007 C1, 5% 11/1/15 | 10,000 | 11,488 | ||
Series 2010 B: | ||||
5% 11/1/17 | 30,000 | 36,185 | ||
5% 11/1/20 | 5,950 | 7,314 | ||
Series 2010 D: | ||||
5% 11/1/15 | 8,300 | 9,535 | ||
5% 11/1/17 | 10,115 | 12,201 | ||
Series 2012 A: | ||||
5% 11/1/17 | 7,000 | 8,443 | ||
5% 11/1/20 | 4,500 | 5,607 | ||
Series E, 4% 11/1/12 | 6,790 | 6,999 | ||
New York City Trust Cultural Resources Rev. Bonds (The Juilliard School Proj.) Series 2009 B, 2.75%, tender 7/1/12 (b) | 3,500 | 3,542 | ||
New York Dorm. Auth. Personal Income Tax Rev.: | ||||
(Ed. Proj.) Series 2009 A: | ||||
5% 3/15/12 | 3,900 | 3,937 | ||
5% 3/15/13 | 3,545 | 3,742 | ||
5% 3/15/14 | 3,745 | 4,106 | ||
5% 3/15/15 | 4,000 | 4,526 | ||
Series 2009 D: | ||||
5% 6/15/14 | 9,890 | 10,937 | ||
5% 6/15/15 | 16,075 | 18,311 | ||
5% 6/15/16 | 9,330 | 10,913 | ||
Series 2010 A, 5% 2/15/14 (Escrowed to Maturity) | 10 | 11 | ||
Series A: | ||||
5% 2/15/14 | 9,840 | 10,758 | ||
5% 2/15/15 | 8,775 | 9,902 | ||
5% 2/15/15 (Escrowed to Maturity) | 5 | 6 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.) Series A: | ||||
5.75% 7/1/13 | $ 1,980 | $ 2,067 | ||
5.75% 7/1/13 (AMBAC Insured) | 570 | 595 | ||
(Mental Health Svcs. Facilities Proj.): | ||||
Series 2008 D: | ||||
5% 2/15/14 | 7,295 | 7,889 | ||
5% 8/15/14 | 7,755 | 8,533 | ||
Series 2009 A1, 5% 2/15/15 | 9,000 | 10,015 | ||
(New York Univ. Hosp. Ctr. Proj.) Series 2011 A, 5% 7/1/18 | 3,240 | 3,636 | ||
(St. Lawrence Univ.) Series 2008, 5% 7/1/14 | 3,700 | 3,983 | ||
Bonds Series 2002 B, 5.25%, tender 5/15/12 (b) | 16,055 | 16,335 | ||
Series 2008 B, 5% 7/1/15 | 30,000 | 33,785 | ||
Series 2009 A: | ||||
5% 7/1/15 | 12,850 | 14,396 | ||
5% 7/1/16 | 8,390 | 9,590 | ||
New York Local Govt. Assistance Corp. Series 2003 A, 5% 4/1/18 | 12,400 | 15,232 | ||
New York Metropolitan Trans. Auth. Dedicated Tax Fund Rev. Series B: | ||||
5% 11/15/14 | 1,350 | 1,508 | ||
5% 11/15/15 | 2,325 | 2,667 | ||
New York Metropolitan Trans. Auth. Rev.: | ||||
Bonds Series 2008 B2, 5%, tender 11/15/12 (b) | 7,300 | 7,567 | ||
Series 2003 B: | ||||
5.25% 11/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,040 | 1,113 | ||
5.25% 11/15/19 (FGIC Insured) | 5,200 | 6,310 | ||
Series 2010 B2, 4% 11/15/14 | 2,830 | 3,061 | ||
New York State Energy Research & Dev. Auth. Facilities Rev. Bonds (Consolidated Edison Co. of New York, Inc. Proj.) Series 2010 A, 1.45%, tender 11/1/12 (b)(e) | 26,400 | 26,508 | ||
New York Thruway Auth. Second Gen. Hwy. & Bridge Trust Fund: | ||||
Series 2008 A, 5% 4/1/13 | 2,600 | 2,747 | ||
Series 2010 A, 5% 4/1/17 | 1,000 | 1,186 | ||
Series 2011 A1: | ||||
5% 4/1/17 | 1,500 | 1,778 | ||
5% 4/1/18 | 3,500 | 4,232 | ||
New York Urban Dev. Corp. Rev.: | ||||
Series 2005 A, 5% 1/1/12 | 5,015 | 5,015 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York Urban Dev. Corp. Rev.: - continued | ||||
Series 2009 C: | ||||
5% 12/15/15 | $ 6,500 | $ 7,509 | ||
5% 12/15/16 | 17,000 | 20,173 | ||
Niagara County Indl. Dev. Agcy. Solid Waste Disp. Rev. Bonds Series 2001 C, 5.625%, tender 11/15/14 (b)(e) | 2,450 | 2,477 | ||
Tobacco Settlement Asset Securitization Corp. Series 2002-1, 5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) | 5,475 | 5,626 | ||
Tobacco Settlement Fing. Corp. Series 2011, 5% 6/1/16 | 20,000 | 22,955 | ||
Triborough Bridge & Tunnel Auth. Revs. Series Y, 5.5% 1/1/17 (Escrowed to Maturity) | 6,470 | 7,286 | ||
| 536,654 | |||
New York & New Jersey - 0.1% | ||||
Port Auth. of New York & New Jersey 124th Series, 5% 8/1/13 (FGIC Insured) (e) | 1,200 | 1,204 | ||
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (e) | 4,100 | 4,386 | ||
| 5,590 | |||
North Carolina - 1.1% | ||||
Charlotte-Mecklenburg Hosp. Auth. Health Care Sys. Rev. Series 2007 A, 5% 1/15/12 | 400 | 401 | ||
Mecklenburg County Pub. Facilities Corp. Series 2009: | ||||
5% 3/1/16 | 5,870 | 6,808 | ||
5% 3/1/18 | 1,500 | 1,822 | ||
Nash Health Care Sys. Health Care Facilities Rev. Series 2003: | ||||
5% 11/1/13 (FSA Insured) | 1,500 | 1,587 | ||
5% 11/1/15 (FSA Insured) | 1,600 | 1,747 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev. Series 2010 A: | ||||
5% 1/1/15 | 4,000 | 4,451 | ||
5% 1/1/16 | 6,035 | 6,885 | ||
North Carolina Grant Anticipation Rev. Series 2009, 5% 3/1/15 | 1,250 | 1,405 | ||
North Carolina Med. Care Commission Hosp. Rev. (North Carolina Baptist Hosp. Proj.) Series 2010: | ||||
5% 6/1/15 | 1,500 | 1,660 | ||
5% 6/1/16 | 1,000 | 1,125 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
North Carolina - continued | ||||
North Carolina Med. Care Commission Hosp. Rev. (North Carolina Baptist Hosp. Proj.) Series 2010: - continued | ||||
5% 6/1/17 | $ 3,220 | $ 3,667 | ||
5% 6/1/18 | 3,820 | 4,389 | ||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.: | ||||
Series 1998 A, 5.5% 1/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,675 | 4,148 | ||
Series 2008 A, 5.25% 1/1/20 | 2,000 | 2,359 | ||
6% 1/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,300 | 4,300 | ||
| 46,754 | |||
North Dakota - 0.0% | ||||
Grand Forks Health Care Sys. Rev. (Altru Health Sys. Proj.) Series 2005, 5% 12/1/15 (Assured Guaranty Corp. Insured) | 1,825 | 1,987 | ||
Ohio - 3.2% | ||||
Buckeye Tobacco Settlement Fing. Auth. Series 2007 A1: | ||||
5% 6/1/16 | 3,035 | 3,222 | ||
5% 6/1/17 | 3,500 | 3,707 | ||
Cincinnati City School District 5.25% 12/1/18 (FGIC Insured) | 3,555 | 4,379 | ||
Columbus City School District (School Facilities Construction and Impt. Proj.) Series 2009 B, 4% 12/1/16 | 1,000 | 1,128 | ||
Hamilton County Student Hsg. Rev. (Stratford Heights Proj.) Series 2010: | ||||
5% 6/1/15 (FSA Insured) | 760 | 837 | ||
5% 6/1/16 (FSA Insured) | 1,105 | 1,245 | ||
5% 6/1/17 (FSA Insured) | 1,160 | 1,328 | ||
Ohio Air Quality Dev. Auth. Rev. Bonds: | ||||
(FirstEnergy Nuclear Generation Corp. Proj.) Series 2008 C, 7.25%, tender 11/1/12 (b)(e) | 9,000 | 9,355 | ||
(Ohio Pwr. Co. Proj.) Series 2010 A, 3.25%, tender 6/2/14 (b) | 5,500 | 5,682 | ||
Ohio Bldg. Auth.: | ||||
(Administrative Bldg. Fund Proj.): | ||||
Series 2009 B: | ||||
5% 10/1/14 | 5,955 | 6,588 | ||
5% 10/1/15 | 6,505 | 7,391 | ||
Series 2010 C: | ||||
4% 10/1/15 | 3,200 | 3,507 | ||
5% 10/1/16 | 1,250 | 1,450 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Ohio - continued | ||||
Ohio Bldg. Auth.: - continued | ||||
(Adult Correctional Bldg. Fund Proj.): | ||||
Series 2009 B: | ||||
5% 10/1/14 | $ 2,055 | $ 2,274 | ||
5% 10/1/15 | 4,535 | 5,152 | ||
Series 2010 A, 5% 10/1/15 | 1,185 | 1,342 | ||
Ohio Gen. Oblig.: | ||||
(Common Schools Proj.): | ||||
Series 2010 A, 5% 9/15/17 | 2,600 | 3,142 | ||
Series 2010 B, 5% 9/15/15 | 19,080 | 21,886 | ||
(Higher Ed. Proj.): | ||||
Series 2005 C, 5% 8/1/13 | 4,495 | 4,819 | ||
Series 2010 A, 5% 8/1/17 | 3,290 | 3,964 | ||
Ohio Higher Edl. Facility Commission Rev.: | ||||
(Cleveland Clinic Foundation Proj.) Series 2008 A, 5% 1/1/15 | 2,000 | 2,200 | ||
(Univ. Hosp. Health Sys. Proj.) Series 2010 A: | ||||
5% 1/15/15 | 500 | 539 | ||
5% 1/15/17 | 1,000 | 1,102 | ||
Ohio Solid Waste Rev. Bonds (Republic Svcs., Inc. Proj.) 0.7%, tender 3/1/12 (b) | 12,000 | 12,000 | ||
Ohio State Univ. Gen. Receipts Series 2010 A, 5% 12/1/16 | 5,000 | 5,918 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Bonds: | ||||
(First Energy Nuclear Generation Corp. Proj.) Series 2005 B, 3.375%, tender 7/1/15 (b) | 5,000 | 5,113 | ||
(FirstEnergy Corp. Proj.) Series 2009 A, 5.875%, tender 6/1/16 (b) | 7,225 | 8,117 | ||
Ross County Hosp. Facilities Rev. (Adena Health Sys. Proj.) Series 2008: | ||||
5% 12/1/12 | 1,950 | 2,006 | ||
5% 12/1/13 | 875 | 921 | ||
5% 12/1/14 | 2,275 | 2,451 | ||
| 132,765 | |||
Oklahoma - 0.3% | ||||
Oklahoma Dev. Fin. Auth. (Pub. Svc. Co. of Oklahoma Proj.) Series 2009, 5.25% 6/1/14 | 2,700 | 2,912 | ||
Oklahoma Dev. Fin. Auth. Health Sys. Rev. (Integris Baptist Med. Ctr. Proj.) Series 2008 B, 5% 8/15/14 | 1,660 | 1,813 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Oklahoma - continued | ||||
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) Series 2007, 5% 2/15/13 | $ 35 | $ 36 | ||
Tulsa County Indl. Auth. Edl. Facilities Lease Rev. (Jenks Pub. Schools Proj.) Series 2009, 5.5% 9/1/18 | 5,215 | 6,376 | ||
| 11,137 | |||
Oregon - 0.4% | ||||
Clackamas County Hosp. Facility Auth. Bonds (Legacy Health Sys. Proj.) Series 2009 C, 5%, tender 7/15/14 (b) | 2,500 | 2,683 | ||
Gilliam County Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) Series 2000 A, 3.5%, tender 5/1/13 (b)(e) | 5,300 | 5,444 | ||
Oregon Facilities Auth. Rev. (Legacy Health Sys. Proj.) Series 2009 A: | ||||
5% 3/15/13 | 1,000 | 1,045 | ||
5% 3/15/14 | 595 | 638 | ||
5% 3/15/15 | 2,500 | 2,733 | ||
5% 3/15/16 | 1,750 | 1,951 | ||
| 14,494 | |||
Pennsylvania - 4.5% | ||||
Allegheny County Arpt. Auth. Rev. Series A: | ||||
5% 1/1/14 (FSA Insured) (e) | 1,350 | 1,401 | ||
5% 1/1/15 (FSA Insured) (e) | 1,000 | 1,069 | ||
5% 1/1/16 (FSA Insured) (e) | 1,000 | 1,083 | ||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (e) | 1,300 | 1,300 | ||
Allegheny County Hosp. Dev. Auth. Rev.: | ||||
(Pittsburgh Med. Ctr. Proj.): | ||||
Series 2008 A, 5% 9/1/12 | 6,615 | 6,814 | ||
Series 2008 B, 5% 6/15/14 | 1,385 | 1,506 | ||
(Univ. of Pittsburgh Med. Ctr. Proj.) Series 2009 A: | ||||
4% 8/15/15 | 1,385 | 1,498 | ||
5% 8/15/14 | 1,955 | 2,138 | ||
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.) Series 2005 A, 3.375%, tender 7/1/15 (b) | 2,000 | 2,045 | ||
Franklin County Indl. Dev. Auth. (The Chambersburg Hosp. Proj.) Series 2010: | ||||
5% 7/1/16 | 1,000 | 1,098 | ||
5% 7/1/17 | 1,255 | 1,378 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series 2009 A, 5% 6/1/17 | $ 2,200 | $ 2,443 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. Bonds (Exelon Generation Proj.) Series 2009 A, 5%, tender 6/1/12 (b) | 1,000 | 1,017 | ||
Pennsylvania Intergovernmental Coop. Auth. Spl. Tax Rev. (City of Philadelphia Fdg. Prog.) Series 2009, 5% 6/15/15 | 10,600 | 11,990 | ||
Pennsylvania Tpk. Commission Tpk. Rev. Series 2009 B, 5% 12/1/17 | 12,500 | 14,777 | ||
Philadelphia Gas Works Rev. (1998 Gen. Ordinance Proj.): | ||||
Eighth Series A, 5% 8/1/15 | 2,100 | 2,334 | ||
Seventh Series, 5% 10/1/12 (AMBAC Insured) | 1,000 | 1,031 | ||
Philadelphia Gen. Oblig.: | ||||
Series 2007 A, 5% 8/1/12 (FSA Insured) | 5,000 | 5,124 | ||
Series 2008 A: | ||||
5% 12/15/14 (FSA Insured) | 5,370 | 5,812 | ||
5% 12/15/15 (FSA Insured) | 5,000 | 5,494 | ||
5% 12/15/16 (FSA Insured) | 7,275 | 8,155 | ||
Series 2011: | ||||
4% 8/1/12 | 4,325 | 4,400 | ||
5.25% 8/1/17 | 6,165 | 6,963 | ||
5.25% 8/1/18 | 5,515 | 6,289 | ||
Philadelphia School District: | ||||
Series 2005 D, 5.25% 6/1/12 (FSA Insured) | 1,465 | 1,495 | ||
Series 2010 C: | ||||
5% 9/1/15 | 13,200 | 14,574 | ||
5% 9/1/16 | 13,610 | 15,198 | ||
Philadelphia Wtr. & Wastewtr. Rev. Series 2010 A: | ||||
5% 6/15/15 | 15,000 | 16,729 | ||
5% 6/15/16 | 6,000 | 6,888 | ||
Pittsburgh & Allegheny County Sports & Exhibition Auth. Series 2010: | ||||
5% 2/1/15 (FSA Insured) | 4,580 | 4,943 | ||
5% 2/1/16 (FSA Insured) | 5,620 | 6,188 | ||
Pittsburgh School District: | ||||
Series 2009 A: | ||||
3% 9/1/12 (Assured Guaranty Corp. Insured) | 1,300 | 1,317 | ||
3% 9/1/14 (Assured Guaranty Corp. Insured) | 1,640 | 1,702 | ||
Series 2010 A: | ||||
4% 9/1/15 (FSA Insured) | 1,450 | 1,564 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Pittsburgh School District: - continued | ||||
Series 2010 A: | ||||
5% 9/1/16 (FSA Insured) | $ 1,685 | $ 1,921 | ||
Saint Mary Hosp. Auth. Health Sys. Rev. (Catholic Health East Proj.) Series 2010 B: | ||||
5% 11/15/13 | 2,465 | 2,624 | ||
5% 11/15/14 | 4,690 | 5,100 | ||
5% 11/15/15 | 2,420 | 2,669 | ||
Southeastern Pennsylvania Trans. Auth. Rev. Series 2011: | ||||
5% 6/1/18 | 1,000 | 1,170 | ||
5% 6/1/19 | 200 | 236 | ||
Unionville-Chadds Ford School District Gen. Oblig. Series 2009, 5% 6/1/20 | 1,190 | 1,456 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) | 2,355 | 2,344 | ||
| 185,277 | |||
Puerto Rico - 0.3% | ||||
Puerto Rico Govt. Dev. Bank Series 2006 B, 5% 12/1/12 | 1,000 | 1,032 | ||
Puerto Rico Infrastructure Fin. Bonds (Port Auth. Proj.) Series 2011 C, 2.75%, tender 6/15/13 (b)(e) | 9,600 | 9,601 | ||
| 10,633 | |||
Rhode Island - 0.3% | ||||
Rhode Island & Providence Plantations Series 2010 A, 5% 10/1/12 | 2,250 | 2,328 | ||
Rhode Island Econ. Dev. Corp. Rev. (Dept. of Trans. Proj.) Series 2009 A: | ||||
5% 6/15/15 (Assured Guaranty Corp. Insured) | 2,010 | 2,240 | ||
5% 6/15/16 (Assured Guaranty Corp. Insured) | 6,625 | 7,575 | ||
| 12,143 | |||
South Carolina - 0.2% | ||||
Lexington County Health Svcs. District, Inc. Hosp. Rev. Series 2011: | ||||
3% 11/1/12 | 1,400 | 1,425 | ||
5% 11/1/19 | 1,190 | 1,374 | ||
South Carolina Jobs-Econ. Dev. Auth. (Anmed Health Proj.) Series 2010: | ||||
5% 2/1/16 | 2,000 | 2,201 | ||
5% 2/1/17 | 2,300 | 2,540 | ||
| 7,540 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
South Dakota - 0.2% | ||||
South Dakota Health & Edl. Facilities Auth. Rev.: | ||||
(Reg'l. Health Proj.) Series 2010: | ||||
5% 9/1/14 | $ 625 | $ 681 | ||
5% 9/1/15 | 680 | 753 | ||
5% 9/1/16 | 500 | 562 | ||
5% 9/1/17 | 490 | 558 | ||
Series 2011: | ||||
5% 9/1/17 | 1,100 | 1,253 | ||
5% 9/1/18 | 1,200 | 1,369 | ||
5% 9/1/19 | 1,255 | 1,434 | ||
| 6,610 | |||
Tennessee - 0.4% | ||||
Jackson Hosp. Rev. (Jackson-Madison County Gen. Hosp. Proj.) Series 2008, 5% 4/1/13 | 1,000 | 1,041 | ||
Memphis Elec. Sys. Rev. 5% 12/1/14 | 5,000 | 5,568 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series 2010 B, 5% 7/1/16 (e) | 1,730 | 1,916 | ||
Metropolitan Nashville Arpt. Auth. Rev. Series 2010 A: | ||||
5% 7/1/16 | 1,815 | 2,050 | ||
5% 7/1/17 | 1,100 | 1,265 | ||
Shelby County Health Edl. & Hsg. Facilities Board Rev. Series 2004 A, 5% 9/1/15 | 3,125 | 3,470 | ||
| 15,310 | |||
Texas - 5.7% | ||||
Austin Cmnty. College District Pub. Facilities Lease Rev. (Round Rock Campus Proj.) Series 2008, 5.25% 8/1/15 | 2,585 | 2,936 | ||
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.): | ||||
Series 2006 A, 6% 1/1/14 | 1,420 | 1,452 | ||
Series 2006 B: | ||||
6% 1/1/12 | 500 | 500 | ||
6% 1/1/13 | 1,270 | 1,286 | ||
Austin Elec. Util. Sys. Rev.: | ||||
Series A, 5% 11/15/15 | 1,000 | 1,142 | ||
0% 5/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,500 | 3,745 | ||
Austin Independent School District Series 2004, 5% 8/1/17 | 1,450 | 1,757 | ||
Austin Wtr. & Wastewtr. Sys. Rev. Series 2009 A, 5% 11/15/15 | 2,250 | 2,582 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Brownsville Util. Sys. Rev. Series 2008 A, 5% 9/1/15 (FSA Insured) | $ 2,665 | $ 3,024 | ||
Carroll Independent School District Series 2009 C, 5.25% 2/15/19 | 1,000 | 1,250 | ||
Corpus Christi Independent School District 4% 8/15/14 | 10,140 | 10,982 | ||
Dallas Fort Worth Int'l. Arpt. Rev. Series 2009 A: | ||||
5% 11/1/14 | 2,500 | 2,765 | ||
5% 11/1/15 | 5,000 | 5,672 | ||
Dallas Wtrwks. & Swr. Sys. Rev. Series 2011, 5% 10/1/18 | 1,600 | 1,969 | ||
Fort Worth Independent School District: | ||||
Series 2005, 5% 2/15/12 | 1,500 | 1,508 | ||
Series 2009, 5% 2/15/16 | 3,690 | 4,302 | ||
Frisco Gen. Oblig. Series 2004, 5.25% 2/15/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,380 | 1,512 | ||
Grapevine Gen. Oblig.: | ||||
Series 2009 A, 5% 2/15/15 | 2,215 | 2,484 | ||
Series 2009, 5% 2/15/16 | 1,375 | 1,592 | ||
Harris County Cultural Ed. Facilities Fin. Corp. Thermal Util. Rev. (TECO Proj.) Series 2009 A: | ||||
5% 11/15/12 | 1,000 | 1,036 | ||
5% 11/15/14 | 1,000 | 1,099 | ||
5% 11/15/16 | 500 | 576 | ||
Harris County Gen. Oblig. (Road Proj.) Series 2008 B: | ||||
5% 8/15/13 | 1,000 | 1,070 | ||
5% 8/15/14 | 1,075 | 1,190 | ||
Houston Arpt. Sys. Rev.: | ||||
Series 2011 A, 5% 7/1/17 (e) | 7,380 | 8,289 | ||
Series 2011 B, 3% 7/1/12 | 1,540 | 1,557 | ||
Series A: | ||||
5% 7/1/15 | 2,070 | 2,321 | ||
5% 7/1/16 | 1,080 | 1,244 | ||
Houston Cmnty. College Sys. Rev. Series 2005, 5.25% 4/15/12 (FSA Insured) | 2,000 | 2,028 | ||
Houston Gen. Oblig.: | ||||
Series 2004 A, 5.25% 3/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,855 | 3,134 | ||
Series 2007 B, 5% 3/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,575 | 3,602 | ||
Series A, 5% 3/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,500 | 7,897 | ||
Houston Independent School District Series 2005 A, 0% 2/15/16 | 4,500 | 4,274 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Humble Independent School District Series 2009, 4% 2/15/13 | $ 400 | $ 416 | ||
Katy Independent School District Series A, 5.25% 2/15/12 | 2,000 | 2,011 | ||
Keller Independent School District 5% 2/15/14 | 3,750 | 4,075 | ||
Klein Independent School District Series 2009 A, 5% 8/1/16 | 2,195 | 2,589 | ||
Leander Independent School District Series 2001, 6% 8/15/14 | 1,850 | 2,102 | ||
Lewisville Independent School District Series 2009, 5% 8/15/17 | 1,170 | 1,408 | ||
Lone Star College Sys. Gen. Oblig. Series 2010 A, 5% 8/15/22 | 2,500 | 2,560 | ||
Lower Colorado River Auth. Rev. Series 2010: | ||||
5% 5/15/15 | 2,125 | 2,395 | ||
5% 5/15/16 | 2,360 | 2,739 | ||
5% 5/15/17 | 2,805 | 3,309 | ||
Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission Svcs. Corp. Proj.) Series 2010, 5% 5/15/18 | 3,140 | 3,762 | ||
Lubbock Gen. Oblig. Series 2005, 5% 2/15/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,850 | 1,946 | ||
Lubbock Health Facilities Dev. Corp. Rev. (St. Joseph Health Sys. Proj.) Series 2008 B: | ||||
5% 7/1/17 | 2,800 | 3,171 | ||
5% 7/1/18 | 3,030 | 3,471 | ||
Mansfield Independent School District Series 2009, 4% 2/15/17 | 1,840 | 2,090 | ||
Matagorda County Navigation District No. 1 Poll. Cont. Rev. Bonds (AEP Texas Central Co. Proj.) Series 2008, 1.125%, tender 6/1/12 (b) | 2,525 | 2,527 | ||
Mission Econ. Dev. Corp. Solid Waste Disp. Rev. Bonds (Republic Svcs., Inc. Proj.) Series 2008 A, 1.05%, tender 1/3/12 (b) | 5,800 | 5,800 | ||
North Texas Tollway Auth. Rev.: | ||||
Bonds Series 2008 H2, 5%, tender 1/1/13 (b) | 5,000 | 5,204 | ||
Series 2010 B1, 3.2% 1/1/13 | 2,275 | 2,330 | ||
Northside Independent School District Bonds 1.5%, tender 8/1/12 (b) | 12,500 | 12,571 | ||
San Antonio Muni. Drainage Util. Sys. Rev. Series 2005, 5.25% 2/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,545 | 1,551 | ||
San Jacinto Cmnty. College District Series 2009: | ||||
5% 2/15/15 | 2,220 | 2,467 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
San Jacinto Cmnty. College District Series 2009: - continued | ||||
5% 2/15/15 (Escrowed to Maturity) | $ 280 | $ 318 | ||
5% 2/15/16 | 2,000 | 2,280 | ||
Southwest Higher Ed. Auth. Rev. (Southern Methodist Univ. Proj.) Series 2009, 5% 10/1/16 | 5,795 | 6,734 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Hosp. Rev. (Baylor Health Care Sys. Proj.) Series 2009, 5% 11/15/12 | 1,950 | 2,022 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Rev. (Christus Health Proj.) Series 2008 A, 5.75% 7/1/18 (Assured Guaranty Corp. Insured) | 4,685 | 5,112 | ||
Texas Gen. Oblig.: | ||||
Series 2011 B, 2% 8/1/12 (e) | 3,365 | 3,396 | ||
Series B, 0% 10/1/13 | 6,500 | 6,345 | ||
Texas Muni. Pwr. Agcy. Rev. Series 2010: | ||||
4% 9/1/14 | 1,000 | 1,071 | ||
5% 9/1/15 | 835 | 941 | ||
5% 9/1/16 | 750 | 864 | ||
Texas Pub. Fin. Auth. Rev. Series 2010 A, 5% 1/1/16 | 7,865 | 9,089 | ||
Texas Trans. Commission State Hwy. Fund Rev. Series 2007, 5% 4/1/12 | 4,000 | 4,046 | ||
Tomball Independent School District 5% 2/15/17 (Assured Guaranty Corp. Insured) | 1,105 | 1,304 | ||
Travis County Gen. Oblig. 5.25% 3/1/12 | 4,125 | 4,158 | ||
Trinity River Auth. Reg'l. Wastewtr. Sys. Rev. Series 2008, 5% 8/1/13 | 6,135 | 6,577 | ||
Univ. of North Texas Univ. Rev. Series A, 5% 4/15/14 | 1,000 | 1,097 | ||
Univ. of Texas Board of Regents Sys. Rev.: | ||||
Series 2003 B, 5% 8/15/33 (Pre-Refunded to 8/15/13 @ 100) | 15,000 | 16,094 | ||
Series 2010 B, 5% 8/15/21 | 1,800 | 2,277 | ||
| 235,996 | |||
Utah - 0.2% | ||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | ||||
0% 10/1/12 (AMBAC Insured) | 3,800 | 3,760 | ||
0% 10/1/13 (AMBAC Insured) | 3,760 | 3,652 | ||
| 7,412 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Vermont - 0.1% | ||||
Vermont Edl. & Health Bldg. Fin. Agcy. Rev. (Fletcher Allen Health Care Proj.) Series 2004 B, 5% 12/1/15 (FSA Insured) | $ 2,225 | $ 2,420 | ||
Virgin Islands - 0.1% | ||||
Virgin Islands Pub. Fin. Auth. Series 2009 B, 5% 10/1/15 | 5,000 | 5,458 | ||
Virginia - 0.4% | ||||
Amelia County Indl. Dev. Auth. Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) 3.375%, tender 4/1/13 (b)(e) | 5,900 | 6,041 | ||
Chesapeake Econ. Dev. Auth. Poll. Cont. Rev. Bonds (Elec. & Pwr. Co. Proj.) Series 2008 A, 3.6%, tender 2/1/13 (b) | 1,800 | 1,832 | ||
Louisa Indl. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. & Pwr. Co. Proj.) Series 2008 B, 5.375%, tender 12/2/13 (b) | 8,000 | 8,658 | ||
York County Econ. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. and Pwr. Co. Proj.) Series 2009 A, 4.05%, tender 5/1/14 (b) | 1,800 | 1,895 | ||
| 18,426 | |||
Washington - 1.7% | ||||
Energy Northwest Elec. Rev.: | ||||
(#3 Proj.) Series 2009 A, 5% 7/1/14 | 4,000 | 4,419 | ||
Series 2012 A, 5% 7/1/19 (a) | 30,000 | 36,063 | ||
King County Highline School District # 401 Series 2009: | ||||
5% 12/1/16 | 6,350 | 7,440 | ||
5% 12/1/17 | 2,950 | 3,533 | ||
Port of Seattle Passenger Facilities Charge Rev. Series 2010 B, 5% 12/1/16 (e) | 2,500 | 2,816 | ||
Port of Seattle Rev.: | ||||
Series 2001 D, 5.75% 11/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (e) | 3,640 | 3,766 | ||
Series 2010 C: | ||||
5% 2/1/16 (e) | 2,000 | 2,229 | ||
5% 2/1/17 (e) | 2,500 | 2,834 | ||
Seattle Muni. Lt. & Pwr. Rev. Series 2010 B, 5% 2/1/17 | 2,000 | 2,378 | ||
Spokane County Wastewtr. Sys. Rev. Series 2009 A, 5% 12/1/15 | 1,710 | 1,961 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Washington - continued | ||||
Washington Health Care Facilities Auth. Rev. (MultiCare Health Sys. Proj.) Series 2010 A: | ||||
5% 8/15/13 | $ 2,000 | $ 2,105 | ||
5% 8/15/14 | 2,000 | 2,137 | ||
| 71,681 | |||
West Virginia - 0.3% | ||||
West Virginia Econ. Dev. Auth. Solid Waste Disp. Facilities Rev. Bonds Series 2011 A, 2%, tender 8/1/12 (b)(e) | 13,000 | 13,064 | ||
Wisconsin - 1.2% | ||||
Milwaukee County Arpt. Rev. Series 2010 B, 5% 12/1/15 (e) | 1,720 | 1,889 | ||
Wisconsin Gen. Oblig.: | ||||
Series 2005 1, 5% 5/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,325 | 7,183 | ||
Series 2009 C, 4% 5/1/14 | 3,365 | 3,624 | ||
Series 2010 1: | ||||
5% 5/1/14 | 5,750 | 6,326 | ||
5% 5/1/15 | 8,005 | 9,091 | ||
5% 5/1/16 | 10,000 | 11,702 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Agnesian HealthCare, Inc. Proj.) Series 2010, 5% 7/1/16 | 1,175 | 1,253 | ||
(Aurora Health Care, Inc. Proj.) Series 2010 A, 5% 4/15/17 | 1,500 | 1,658 | ||
(Marshfield Clinic Proj.) Series 2006 A, 5% 2/15/13 | 875 | 909 | ||
(Thedacare, Inc. Proj.) Series 2010: | ||||
4% 12/15/13 | 1,035 | 1,081 | ||
5% 12/15/15 | 1,105 | 1,214 | ||
5% 12/15/16 | 1,440 | 1,604 | ||
5% 12/15/17 | 1,540 | 1,735 | ||
| 49,269 | |||
TOTAL MUNICIPAL BONDS (Cost $3,389,805) |
|
Municipal Notes - 0.3% | |||
|
|
|
|
New York - 0.3% | |||
Suffolk County Gen. Oblig. TAN Series 2012 II, 2% 7/12/12 (a) | 11,800 |
| |
Money Market Funds - 3.9% | |||
Shares | Value (000s) | ||
Fidelity Municipal Cash Central Fund, 0.10% (c)(d) | 160,467,900 | $ 160,468 | |
TOTAL INVESTMENT PORTFOLIO - 89.8% (Cost $3,562,129) | 3,698,535 | ||
NET OTHER ASSETS (LIABILITIES) - 10.2% | 418,864 | ||
NET ASSETS - 100% | $ 4,117,399 |
Security Type Abbreviations | ||
TAN | - | TAX ANTICIPATION NOTE |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(c) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(d) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Municipal Cash Central Fund | $ 296 |
Other Information |
The following is a summary of the inputs used, as of December 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Municipal Securities | $ 3,538,067 | $ - | $ 3,538,067 | $ - |
Money Market Funds | 160,468 | 160,468 | - | - |
Total Investments in Securities: | $ 3,698,535 | $ 160,468 | $ 3,538,067 | $ - |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 34.0% |
Electric Utilities | 13.4% |
Special Tax | 10.5% |
Health Care | 9.8% |
Transportation | 5.0% |
Others (Individually Less Than 5%) | 12.9% |
Short-Term Investments and Net | 14.4% |
| 100.0% |
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, 2011 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $3,401,661) | $ 3,538,067 |
|
Fidelity Central Funds (cost $160,468) | 160,468 |
|
Total Investments (cost $3,562,129) |
| $ 3,698,535 |
Cash |
| 422,132 |
Receivable for fund shares sold | 11,498 | |
Interest receivable | 39,750 | |
Distributions receivable from Fidelity Central Funds | 14 | |
Prepaid expenses | 9 | |
Other receivables | 16 | |
Total assets | 4,171,954 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 2,900 | |
Delayed delivery | 45,015 | |
Payable for fund shares redeemed | 2,514 | |
Distributions payable | 1,964 | |
Accrued management fee | 1,244 | |
Distribution and service plan fees payable | 137 | |
Other affiliated payables | 736 | |
Other payables and accrued expenses | 45 | |
Total liabilities | 54,555 | |
|
|
|
Net Assets | $ 4,117,399 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,983,909 | |
Distributions in excess of net investment income | (2,916) | |
Net unrealized appreciation (depreciation) on investments | 136,406 | |
Net Assets | $ 4,117,399 |
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, 2011 | |
|
|
|
Calculation of Maximum Offering Price | $ 10.83 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.83) | $ 11.14 | |
Class T: | $ 10.81 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.81) | $ 11.12 | |
Class B: | $ 10.82 | |
|
|
|
Class C: | $ 10.81 | |
|
|
|
Short-Intermediate Municipal Income: | $ 10.81 | |
|
|
|
Institutional Class: | $ 10.81 |
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, 2011 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 99,904 |
Income from Fidelity Central Funds |
| 296 |
Total income |
| 100,200 |
|
|
|
Expenses | ||
Management fee | $ 14,009 | |
Transfer agent fees | 3,610 | |
Distribution and service plan fees | 1,353 | |
Accounting fees and expenses | 611 | |
Custodian fees and expenses | 43 | |
Independent trustees' compensation | 14 | |
Registration fees | 206 | |
Audit | 54 | |
Legal | 11 | |
Miscellaneous | 40 | |
Total expenses before reductions | 19,951 | |
Expense reductions | (91) | 19,860 |
Net investment income (loss) | 80,340 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 2,116 | |
Change in net unrealized appreciation (depreciation) on investment securities | 76,652 | |
Net gain (loss) | 78,768 | |
Net increase (decrease) in net assets resulting from operations | $ 159,108 |
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 (loss) | $ 80,340 | $ 87,857 |
Net realized gain (loss) | 2,116 | 4,561 |
Change in net unrealized appreciation (depreciation) | 76,652 | (16,570) |
Net increase (decrease) in net assets resulting | 159,108 | 75,848 |
Distributions to shareholders from net investment income | (83,163) | (87,839) |
Distributions to shareholders from net realized gain | (2,965) | (1,494) |
Total distributions | (86,128) | (89,333) |
Share transactions - net increase (decrease) | 142,426 | 419,774 |
Redemption fees | 46 | 105 |
Total increase (decrease) in net assets | 215,452 | 406,394 |
|
|
|
Net Assets | ||
Beginning of period | 3,901,947 | 3,495,553 |
End of period (including distributions in excess of net investment income of $2,916 and distributions in excess of net investment income of $79, respectively) | $ 4,117,399 | $ 3,901,947 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.62 | $ 10.64 | $ 10.35 | $ 10.33 | $ 10.21 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .198 | .209 | .254 | .298 | .302 |
Net realized and unrealized gain (loss) | .225 | (.016) | .294 | .021 | .118 |
Total from investment operations | .423 | .193 | .548 | .319 | .420 |
Distributions from net investment income | (.205) | (.209) | (.258) | (.300) | (.300) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.213) | (.213) | (.258) | (.300) | (.300) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.83 | $ 10.62 | $ 10.64 | $ 10.35 | $ 10.33 |
Total Return A,B | 4.03% | 1.81% | 5.34% | 3.13% | 4.19% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | .77% | .78% | .79% | .75% | .71% |
Expenses net of fee waivers, if any | .77% | .78% | .78% | .75% | .71% |
Expenses net of all reductions | .77% | .77% | .78% | .72% | .64% |
Net investment income (loss) | 1.85% | 1.95% | 2.41% | 2.90% | 2.95% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 336 | $ 200 | $ 169 | $ 58 | $ 12 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 | $ 10.19 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .199 | .211 | .255 | .300 | .297 |
Net realized and unrealized gain (loss) | .226 | (.026) | .294 | .029 | .120 |
Total from investment operations | .425 | .185 | .549 | .329 | .417 |
Distributions from net investment income | (.207) | (.211) | (.259) | (.300) | (.297) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.215) | (.215) | (.259) | (.300) | (.297) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.81 | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 |
Total Return A,B | 4.05% | 1.74% | 5.36% | 3.24% | 4.17% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | .76% | .76% | .77% | .74% | .74% |
Expenses net of fee waivers, if any | .76% | .76% | .77% | .74% | .74% |
Expenses net of all reductions | .76% | .75% | .77% | .72% | .69% |
Net investment income (loss) | 1.86% | 1.97% | 2.42% | 2.90% | 2.91% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 26 | $ 24 | $ 23 | $ 15 | $ 10 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.61 | $ 10.64 | $ 10.35 | $ 10.32 | $ 10.20 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .128 | .139 | .186 | .230 | .228 |
Net realized and unrealized gain (loss) | .226 | (.026) | .293 | .029 | .121 |
Total from investment operations | .354 | .113 | .479 | .259 | .349 |
Distributions from net investment income | (.136) | (.139) | (.189) | (.230) | (.229) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.144) | (.143) | (.189) | (.230) | (.229) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.82 | $ 10.61 | $ 10.64 | $ 10.35 | $ 10.32 |
Total Return A,B | 3.36% | 1.06% | 4.66% | 2.54% | 3.47% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | 1.43% | 1.44% | 1.46% | 1.43% | 1.41% |
Expenses net of fee waivers, if any | 1.42% | 1.43% | 1.43% | 1.43% | 1.41% |
Expenses net of all reductions | 1.42% | 1.42% | 1.43% | 1.40% | 1.36% |
Net investment income (loss) | 1.19% | 1.30% | 1.77% | 2.22% | 2.23% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 2 | $ 2 | $ 3 | $ 2 | $ 1 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.60 | $ 10.63 | $ 10.33 | $ 10.31 | $ 10.19 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .117 | .129 | .175 | .220 | .219 |
Net realized and unrealized gain (loss) | .226 | (.026) | .303 | .020 | .120 |
Total from investment operations | .343 | .103 | .478 | .240 | .339 |
Distributions from net investment income | (.125) | (.129) | (.178) | (.221) | (.219) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.133) | (.133) | (.178) | (.221) | (.219) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.81 | $ 10.60 | $ 10.63 | $ 10.33 | $ 10.31 |
Total Return A,B | 3.25% | .96% | 4.66% | 2.35% | 3.37% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | 1.53% | 1.52% | 1.53% | 1.50% | 1.51% |
Expenses net of fee waivers, if any | 1.53% | 1.52% | 1.53% | 1.50% | 1.51% |
Expenses net of all reductions | 1.52% | 1.52% | 1.53% | 1.48% | 1.45% |
Net investment income (loss) | 1.09% | 1.20% | 1.67% | 2.14% | 2.14% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 79 | $ 77 | $ 56 | $ 20 | $ 6 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Short-Intermediate Municipal Income
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 | $ 10.19 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .228 | .240 | .284 | .326 | .323 |
Net realized and unrealized gain (loss) | .227 | (.026) | .293 | .029 | .120 |
Total from investment operations | .455 | .214 | .577 | .355 | .443 |
Distributions from net investment income | (.237) | (.240) | (.287) | (.326) | (.323) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.245) | (.244) | (.287) | (.326) | (.323) |
Redemption fees added to paid in capital B | - F | - F | - F | .001 | - F |
Net asset value, end of period | $ 10.81 | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 |
Total Return A | 4.34% | 2.02% | 5.64% | 3.50% | 4.43% |
Ratios to Average Net Assets C,E |
|
|
|
|
|
Expenses before reductions | .48% | .48% | .50% | .49% | .49% |
Expenses net of fee waivers, if any | .48% | .48% | .50% | .49% | .49% |
Expenses net of all reductions | .48% | .48% | .50% | .47% | .43% |
Net investment income (loss) | 2.14% | 2.24% | 2.69% | 3.15% | 3.17% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,523 | $ 3,456 | $ 3,153 | $ 1,870 | $ 1,650 |
Portfolio turnover rate D | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.61 | $ 10.63 | $ 10.34 | $ 10.32 | $ 10.20 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .224 | .235 | .281 | .321 | .320 |
Net realized and unrealized gain (loss) | .216 | (.015) | .293 | .022 | .120 |
Total from investment operations | .440 | .220 | .574 | .343 | .440 |
Distributions from net investment income | (.232) | (.236) | (.284) | (.324) | (.320) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.240) | (.240) | (.284) | (.324) | (.320) |
Redemption fees added to paid in capital B | - F | - F | - F | .001 | - F |
Net asset value, end of period | $ 10.81 | $ 10.61 | $ 10.63 | $ 10.34 | $ 10.32 |
Total Return A | 4.19% | 2.07% | 5.61% | 3.38% | 4.39% |
Ratios to Average Net Assets C,E |
|
|
|
|
|
Expenses before reductions | .52% | .53% | .55% | .51% | .52% |
Expenses net of fee waivers, if any | .52% | .53% | .53% | .51% | .52% |
Expenses net of all reductions | .52% | .52% | .53% | .49% | .45% |
Net investment income (loss) | 2.09% | 2.20% | 2.66% | 3.13% | 3.14% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 152 | $ 142 | $ 92 | $ 32 | $ 5 |
Portfolio turnover rate D | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2011
(Amounts in thousands except percentages)
1. Organization.
Fidelity Short-Intermediate Municipal Income Fund (the Fund) is a fund of Fidelity Municipal Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Short-Intermediate Municipal Income and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments by existing shareholders. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2011 for the Fund's investments, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For municipal securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing
Annual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially 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. As of December 31, 2011, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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 deferred trustees compensation.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the IRS will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 139,113 |
Gross unrealized depreciation | (2,707) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 136,406 |
|
|
Tax Cost | $ 3,562,129 |
The tax-based components of distributable earnings as of period end were as follows:
Net unrealized appreciation (depreciation) | $ 136,406 |
The tax character of distributions paid was as follows:
| December 31, 2011 | December 31, 2010 |
Tax-exempt Income | $ 83,163 | $ 87,839 |
Long-term Capital Gains | 2,965 | 1,494 |
Total | $ 86,128 | $ 89,333 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Annual Report
4. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. 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 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $828,471 and $771,247, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and an annualized group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of 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, total fees and amounts retained by FDC were as follows:
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 556 | $ 59 |
Class T | -% | .25% | 61 | - |
Class B | .65% | .25% | 19 | 14 |
Class C | .75% | .25% | 717 | 207 |
|
|
| $ 1,353 | $ 280 |
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 3.00% to 1.00% for Class B, 1.00% for Class C, .75% or .50% for certain purchases of Class A shares (.75% prior to February 18, 2011) and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 69 |
Class T | 2 |
Class B* | 8 |
Class C* | 26 |
| $ 105 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and servicing agent for the Fund's Class A, Class T, Class B, Class C, 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, to perform the transfer agency, dividend disbursing, and shareholder servicing functions. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
Annual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees - continued
| Amount | % of |
Class A | $ 288 | .13 |
Class T | 29 | .12 |
Class B | 3 | .14 |
Class C | 102 | .14 |
Short-Intermediate Municipal Income | 3,002 | .09 |
Institutional Class | 186 | .13 |
| $ 3,610 |
|
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $12 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | .78% | $ 1 |
Class T | .78% | -* |
Class B | 1.43% | -* |
Class C | 1.53% | 6 |
Institutional Class | .53% | 3 |
|
| $ 10 |
* Amount of reimbursement for Class T totaled twenty-three dollars; Class B totaled one hundred seventy-five dollars.
** Effective March 1, 2011 the expense limitations were eliminated.
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $41 and $40, respectively.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | 2011 | 2010 |
From net investment income |
|
|
Class A | $ 4,211 | $ 4,283 |
Class T | 467 | 469 |
Class B | 27 | 37 |
Class C | 838 | 856 |
Short-Intermediate Municipal Income | 74,599 | 79,576 |
Institutional Class | 3,021 | 2,618 |
Total | $ 83,163 | $ 87,839 |
From net realized gain |
|
|
Class A | $ 216 | $ 83 |
Class T | 19 | 9 |
Class B | 1 | 1 |
Class C | 57 | 29 |
Short-Intermediate Municipal Income | 2,565 | 1,318 |
Institutional Class | 107 | 54 |
Total | $ 2,965 | $ 1,494 |
Annual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Years ended December 31, | 2011 | 2010 | 2011 | 2010 |
Class A |
|
|
|
|
Shares sold | 22,096 | 15,494 | $ 237,519 | $ 165,921 |
Reinvestment of distributions | 303 | 294 | 3,252 | 3,153 |
Shares redeemed | (10,223) | (12,806) | (109,361) | (137,046) |
Net increase (decrease) | 12,176 | 2,982 | $ 131,410 | $ 32,028 |
Class T |
|
|
|
|
Shares sold | 881 | 579 | $ 9,442 | $ 6,203 |
Reinvestment of distributions | 35 | 32 | 373 | 346 |
Shares redeemed | (774) | (500) | (8,240) | (5,341) |
Net increase (decrease) | 142 | 111 | $ 1,575 | $ 1,208 |
Class B |
|
|
|
|
Shares sold | 27 | 66 | $ 297 | $ 702 |
Reinvestment of distributions | 2 | 2 | 19 | 26 |
Shares redeemed | (114) | (117) | (1,225) | (1,248) |
Net increase (decrease) | (85) | (49) | $ (909) | $ (520) |
Class C |
|
|
|
|
Shares sold | 2,509 | 3,620 | $ 26,904 | $ 38,700 |
Reinvestment of distributions | 62 | 60 | 661 | 637 |
Shares redeemed | (2,549) | (1,682) | (27,188) | (17,979) |
Net increase (decrease) | 22 | 1,998 | $ 377 | $ 21,358 |
Short-Intermediate Municipal Income |
|
|
|
|
Shares sold | 106,091 | 146,127 | $ 1,133,522 | $ 1,562,445 |
Reinvestment of distributions | 5,180 | 5,652 | 55,411 | 60,463 |
Shares redeemed | (111,332) | (122,431) | (1,186,447) | (1,307,777) |
Net increase (decrease) | (61) | 29,348 | $ 2,486 | $ 315,131 |
Institutional Class |
|
|
|
|
Shares sold | 8,223 | 11,870 | $ 87,964 | $ 126,978 |
Reinvestment of distributions | 115 | 94 | 1,228 | 1,007 |
Shares redeemed | (7,651) | (7,242) | (81,705) | (77,416) |
Net increase (decrease) | 687 | 4,722 | $ 7,487 | $ 50,569 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Short-Intermediate Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Short-Intermediate Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity 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, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 15, 2012
Annual Report
Trustees and Officers
The Trustees 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 203 funds advised by FMR or an affiliate. Mr. Curvey oversees 429 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Kenneth L. Wolfe serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
Trustees and Officers - continued
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Abigail P. Johnson (50) | |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (76) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of Fidelity Investments Money Management, Inc. (2009-present), Director of Fidelity Research & Analysis Co. (2009-present) and Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
Annual Report
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Albert R. Gamper, Jr. (69) | |
| Year of Election or Appointment: 2006 Mr. Gamper is Vice Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2011-present). Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (60) | |
| Year of Election or Appointment: 2010 Mr. Gartland is a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-present) and is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (64) | |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Mr. Edward C. Johnson 3d or Ms. Abigail P. Johnson. |
Michael E. Kenneally (57) | |
| Year of Election or Appointment: 2009 Previously, Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity Fixed Income and Asset Allocation Funds (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of the Credit Suisse Funds (U.S. mutual funds, 2004-2008) and certain other closed-end funds (2004-2005) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (71) | |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, since 1998). Prior to his retirement, Mr. Keyes served as Chairman and Chief Executive Officer of Johnson Controls (automotive, building, and energy, 1998-2002) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (65) | |
| 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. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (72) | |
| Year of Election or Appointment: 2005 Mr. Wolfe is Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2008-present). Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Annual Report
Trustees and Officers - continued
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
John R. Hebble (53) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as President (2011-present), Treasurer, and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present), Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Christopher P. Sullivan (57) | |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Bond Funds. Mr. Sullivan also serves as President of Fidelity's Bond Division (2009-present). Mr. Sullivan is Executive Vice President of Fidelity Investments Money Management, Inc. (2009-present), and a Director of Fidelity Management & Research (U.K.) Inc. (2010-present). Previously, Mr. Sullivan served as Managing Director, Co-Head of U.S. Fixed Income at Goldman Sachs Asset Management (2001-2009). |
Christine J. Thompson (53) | |
| Year of Election or Appointment: 2010 Vice President of Fidelity's Bond Funds. Ms. Thompson also serves as Chief Investment Officer of FMR's Bond Group (2010-present) and is an employee of Fidelity Investments. Previously, Ms. Thompson served as Director of Municipal Bond Portfolio Managers (2002-2010). |
Scott C. Goebel (43) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as Secretary of Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); Secretary and CLO of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); employed by FMR LLC or an affiliate (2001-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
David J. Carter (38) | |
| Year of Election or Appointment: 2010 Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Carter also serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2005-present). |
Holly C. Laurent (57) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent also serves as AML Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present) and is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (53) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (44) | |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker also serves as Chief Compliance Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present). Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (50) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009). |
Joseph F. Zambello (54) | |
| Year of Election or Appointment: 2011 Deputy Treasurer of the Fidelity funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Stephanie J. Dorsey (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey also serves as Assistant Treasurer of other Fidelity funds (2010-present) and is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Adrien E. Deberghes (44) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Deberghes also serves as Vice President and Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II (2011-present), Deputy Treasurer of other Fidelity funds (2008-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Kenneth B. Robins (42) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds (2008-present; 2010-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Deputy Treasurer of the Fidelity funds (2005-2008) and Treasurer and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2006-2008). |
Gary W. Ryan (53) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Jonathan Davis (43) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of the Fidelity funds. Mr. Davis is also Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Annual Report
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended 12/31/2011, $2,116,359 or, if subsequently determined to be different, the net capital gain of such year.
During fiscal year ended 2011, 100% of the fund's income dividends was free from federal income tax, and 5.05% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2012 of amounts for use in preparing 2011 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Short-Intermediate Municipal Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Nominating of Governance, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2011 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has devoted increased resources to non-U.S. offices. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities which allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and enhancers. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools which permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading capabilities and resources which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers, with 35 new branches opening since 2010.
Annual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) rationalizing product lines through the mergers of six funds into other funds; (iii) continuing to migrate the Freedom Funds to dedicated lower cost underlying funds; (iv) obtaining shareholder approval to broaden the investment strategies for Fidelity Consumer Finance Portfolio, Fidelity Emerging Asia Fund, and Fidelity Environment and Alternative Energy Portfolio; (v) contractually agreeing to reduce the management fees and impose other expense limitations on Spartan 500 Index Fund and U.S. Bond Index Fund in connection with launching new institutional classes of these funds; (vi) changing the name, primary and supplemental benchmarks, and investment policies of Fidelity Global Strategies Fund to support the fund's flexible investment mandate and global orientation; and (vii) reducing the transfer agency account fee rates on certain accounts.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2010, the cumulative total returns of the retail class and Class C of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of the retail class and Class C show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Short-Intermediate Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the second quartile for all the periods shown. The Board also noted that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to improve the fund's below-benchmark performance. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 22% means that 78% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Annual Report
Fidelity Short-Intermediate Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2010.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current and historical total expense ratios of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the total expense ratio of each of Class B and the retail class ranked below its competitive median for 2010, the total expense ratio of Class T ranked equal to its competitive median for 2010, and the total expense ratio of each of Class A, Class C, and Institutional Class ranked above its competitive median for 2010. The Board considered that various factors, including 12b-1 fees and relatively higher other expenses in the case of small fund size, can affect total expense ratios. The Board noted that the funds and classes in the Total Mapped Group that have a similar sales load structure to Class A have a range of 12b-1 fees, and, when compared to a subset of funds with the same 12b-1 fee, Class A ranked below the median for 2010. The Board also noted that Institutional Class has a significantly lower investment minimum than certain funds and classes in the Total Mapped Group that have a similar sales load or 12b-1 fee structure and that, when compared to funds with the same or lower investment minimum, Institutional Class ranked below the median for 2010. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expense ratios of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable, although in some cases above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
Annual Report
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes; (vi) the reasons why certain expenses affect various funds and classes differently; (vii) Fidelity's transfer agent fees, expenses, and services and how the benefits of decreased costs and new efficiencies can be shared across all of the Fidelity funds; (viii) the reasons for and consequences of changes to certain product lines compared to competitors; (ix) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (x) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
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.
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
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.
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 distributions, and the effects of any sales charges.
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
15445 N. Scottsdale Road
Scottsdale, AZ
17550 North 75th Avenue
Glendale, AZ
5330 E. Broadway Blvd
Tucson, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
601 Larkspur Landing Circle
Larkspur, CA
2000 Avenue of the Stars
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16656 Bernardo Ctr. Drive
Rancho Bernardo, CA
1220 Roseville Parkway
Roseville, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
11943 El Camino Real
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
1200 Wilshire Boulevard
Santa Monica, CA
398 West El Camino Real
Sunnyvale, CA
111 South Westlake Blvd
Thousand Oaks, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6326 Canoga Avenue
Woodland Hills, CA
2211 Michelson Drive
Irvine, CA
Colorado
281 East Flatiron Circle
Broomfield, CO
1625 Broadway
Denver, CO
9185 Westview Road
Lone Tree, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
1261 Post Road
Fairfield, CT
Delaware
400 Delaware Avenue
Wilmington, DE
Florida
175 East Altamonte Drive
Altamonte Springs, FL
1400 Glades Road
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
4671 Town Center Parkway
Jacksonville, FL
8880 Tamiami Trail, North
Naples, FL
230 Royal Palm Way
Palm Beach, FL
3501 PGA Boulevard
Palm Beach Gardens, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
2465 State Road 7
Wellington, FL
Georgia
3242 Peachtree Road
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
401 North Michigan Avenue
Chicago, IL
One Skokie Valley Road
Highland Park, IL
1415 West 22nd Street
Oak Brook, IL
15105 S LaGrange Road
Orland Park, IL
1572 East Golf Road
Schaumburg, IL
1823 Freedom Drive
Naperville, IL
Indiana
8480 Keystone Crossing
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
610 York Road
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
238 Main Street
Cambridge, MA
200 Endicott Street
Danvers, MA
Annual Report
405 Cochituate Road
Framingham, MA
551 Boston Turnpike
Shrewsbury, MA
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 N. Old Woodward Ave.
Birmingham, MI
30200 Northwestern Hwy.
Farmington Hills, MI
43420 Grand River Avenue
Novi, MI
3480 28th Street
Grand Rapids, MI
2425 S. Linden Road STE E
Flint, MI
Minnesota
7740 France Avenue South
Edina, MN
8342 3rd Street North
Oakdale, MN
Missouri
1524 South Lindbergh Blvd.
St. Louis, MO
Nevada
2225 Village Walk Drive
Henderson, NV
New Jersey
501 Route 73 South
Marlton, NJ
150 Essex Street
Millburn, NJ
35 Morris Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Broad Street
Shrewsbury, NJ
New Mexico
2261 Q Street NE
Albuquerque, NM
New York
1130 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
980 Madison Avenue
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
799 Central Park Avenue
Scarsdale, NY
3349 Monroe Avenue
Rochester, NY
North Carolina
4611 Sharon Road
Charlotte, NC
7011 Fayetteville Road
Durham, NC
Ohio
3805 Edwards Road
Cincinnati, OH
1324 Polaris Parkway
Columbus, OH
1800 Crocker Road
Westlake, OH
28699 Chagrin Boulevard
Woodmere Village, OH
Oregon
7493 SW Bridgeport Road
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
10 Memorial Boulevard
Providence, RI
Tennessee
3018 Peoples Street
Johnson City, TN
7628 West Farmington Blvd.
Germantown, TN
2035 Mallory Lane
Franklin, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6560 Fannin Street
Houston, TX
1701 Lake Robbins Drive
The Woodlands, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
1576 East Southlake Blvd.
Southlake, TX
15600 Southwest Freeway
Sugar Land, TX
139 N. Loop 1604 East
San Antonio, TX
Utah
279 West South Temple
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
11957 Democracy Drive
Reston, VA
Washington
10500 NE 8th Street
Bellevue, WA
1518 6th Avenue
Seattle, WA
304 Strander Blvd
Tukwila, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
16020 West Bluemound Road
Brookfield, WI
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Annual Report
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Fidelity Management & Research Company
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(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Short-Intermediate
Municipal Income
Fund - Class A, Class T, Class B
and Class C
Annual Report
December 31, 2011
Class A, Class T, Class B,
and Class C are classes of
Fidelity® Short-Intermediate
Municipal Income Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fundperformance and strategy. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or www.401k.com as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
The investment environment in 2011 was characterized by a number of headline events, most notably the early-August decision by Standard & Poor's to lower the long-term sovereign credit rating of the United States. The historic downgrade followed a stalemate in which Congress struggled to address the debt ceiling, heightening investor anxiety and within a matter of days wiping out a solid first-half advance that was largely driven by encouraging corporate earnings and economic activity. At the same time, investors were becoming increasingly concerned about the sovereign debt crisis in Europe and its potential to derail the U.S. economy, as well as persistently high unemployment. The combination of these factors set off a wave of unusually high volatility that lasted until late in the year, with wide weekly, and even daily, swings fueled largely by the latest developments coming out of the eurozone.
Against this backdrop, equities struggled to gain any significant momentum in the second half, and finished 2011 with only a modest gain, due in part to a strong October. High-grade bonds, meanwhile, benefited from periodic flights to quality and turned in a solid performance, paced by municipal issues and Treasuries.
Financial markets are difficult to predict, of course, but you can help put the odds in your favor by following these time-tested investment principles. One of the basic tenets is to invest according to your time horizon. For long-term investors, riding out the markets' inevitable ups and downs has proven much more effective than making decisions based on short-term developments. If your goal is approaching, you can also benefit from patience and restraint, rather than attempting to time the market.
Asset allocation is another principle to manage risk. As you spread your portfolio among the asset classes, be sure to consider your time horizon, risk tolerance and investment objectives. After deciding on a suitable allocation strategy, make sure your portfolio is adequately diversified, with exposure to stocks of small-, mid- and large-cap companies in a range of sectors, for example.
Lastly, investing a certain amount of money on a regular basis - a principle known as dollar-cost averaging - can help lower the average cost of your purchases, while also giving you the discipline to avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to learn more by visiting us on the Internet, dropping by one of our Investor Centers or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Abigail P. Johnson
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow. Returns reflect the conversion of Class B shares to Class A shares after a maximum of four years.
Average Annual Total Returns
Periods ended December 31, 2011 | Past 1 | Past 5 | Past 10 |
Class A (incl. sales charge) A | 1.17% | 3.12% | 3.04% |
Class T (incl. sales charge) B | 1.19% | 3.13% | 2.99% |
Class B (incl. contingent deferred sales charge) C | 0.36% | 3.14% | 3.01% |
Class C (incl. contingent deferred sales charge) D | 2.25% | 2.91% | 2.61% |
A As of April 1, 2007, Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on July 23, 2003. Returns between July 23, 2003 and April 1, 2007 reflect a 0.15% 12b-1 fee. Returns prior to July 23, 2003 are those of Fidelity® Short-Intermediate Municipal Income Fund, the original 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 Fidelity Short-Intermediate Municipal Income Fund, the original 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 Fidelity Short-Intermediate Municipal Income Fund, the original class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to July 23, 2003 would have been lower. Class B shares' contingent deferred sales charges included in the past one year, past five years, and past ten years total return figures are 3%, 0%, and 0%, respectively.
D Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Fidelity Short-Intermediate Municipal Income Fund, the original class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to July 23, 2003 would have been lower. Class C shares' contingent deferred sales charge included in the past one year, past five years, and past ten years total return figures are 1%, 0%, and 0%, respectively.
See accompanying notes which are an integral part of the financial statements.
Annual Report
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Short-Intermediate Municipal Income - Class A on December 31, 2001, and the current 2.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital® Municipal Bond Index performed over the same period. The initial offering of Class A took place on July 23, 2003. See the previous page for additional information regarding the performance of Class A.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds generated a double-digit return for the 12 months ending December 31, 2011, ranking them as one of the year's best-performing asset classes. The Barclays Capital® Municipal Bond Index - a measure of more than 46,000 tax-exempt investment-grade fixed-rate bonds - advanced 10.70%, significantly outpacing the 7.84% gain of the taxable investment-grade debt market, as measured by the Barclays Capital® U.S. Aggregate Bond Index. In early 2011, muni prices fell due to inflation concern, uncertain tax policy, anticipated heavy supply and the lingering effects of late-2010 headlines forecasting an unprecedented wave of issuer defaults. But in February, munis began a virtually uninterrupted rally, as demand surged, supply was muted, widespread defaults didn't materialize and the fiscal health of issuers improved. During the summer, a dimming U.S. economic outlook, unresolved debt woes in Europe and legislative wrangling over the U.S. debt ceiling fueled further demand for munis, as U.S. investors sought haven against global economic uncertainty. The muni sector lost modest ground in October, due in part to the ongoing challenging credit environment and various proposals out of Washington, D.C., that could potentially limit munis' tax-free benefits. Those losses were quickly erased, and munis posted a strong gain when supply was quite limited through period end.
Comments from Mark Sommer, Lead Portfolio Manager of Fidelity Advisor® Short-Intermediate Municipal Income Fund: For the year, the fund's Class A, Class T, Class B and Class C shares returned 4.03%, 4.05%, 3.36% and 3.25%, respectively (excluding sales charges), while the Barclays Capital 1-6 Year Municipal Bond Index rose 4.18%. The fund's yield-curve positioning and overweighting in investor-owned utilities (IOUs) and general obligation bonds (GOs) issued by the State of California bolstered the fund's relative performance. In terms of yield-curve positioning, overweighting bonds in the seven- to nine-year range boosted performance, because they outpaced bonds in the two- to three-year range, in which the fund was underweighted. IOUs outpaced the index, because of their comparatively high yields and strong investor demand. California State GOs were some of the better-performing securities in the marketplace, due to muted supply of and strong demand for the bonds. Detracting from the fund's relative performance was its underweighting in Puerto Rico bonds, which rallied strongly in the second half of the period and benefited from renewed demand for these triple-tax-exempt, higher-yielding bonds, as well as in improving sentiment about the territory's credit outlook.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2011 to December 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | .77% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.10 | $ 3.92 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.32 | $ 3.92 |
Class T | .76% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.20 | $ 3.87 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.37 | $ 3.87 |
Class B | 1.42% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.80 | $ 7.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class C | 1.52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.30 | $ 7.72 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.54 | $ 7.73 |
Short-Intermediate Municipal Income | .48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,021.70 | $ 2.45 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Institutional Class | .52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.50 | $ 2.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.58 | $ 2.65 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Five States as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
New York | 13.3 | 16.3 |
California | 10.6 | 8.9 |
Illinois | 7.5 | 7.7 |
Florida | 7.0 | 7.0 |
Texas | 5.7 | 6.1 |
Top Five Sectors as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
General Obligations | 34.0 | 33.3 |
Electric Utilities | 13.4 | 14.2 |
Special Tax | 10.5 | 12.6 |
Health Care | 9.8 | 10.7 |
Transportation | 5.0 | 4.9 |
Weighted Average Maturity as of December 31, 2011 | ||
|
| 6 months ago |
Years | 3.3 | 3.1 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2011 | ||
|
| 6 months ago |
Years | 2.8 | 2.7 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-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. Duration takes into account any call or put option embedded in the bonds. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2011 | As of June 30, 2011 | ||||||
![]() | AAA 6.4% |
| ![]() | AAA 9.7% |
| ||
![]() | AA,A 71.5% |
| ![]() | AA,A 72.5% |
| ||
![]() | BBB 5.5% |
| ![]() | BBB 5.3% |
| ||
![]() | BB and Below 0.1% |
| ![]() | BB and Below 0.1% |
| ||
![]() | Not Rated 2.1% |
| ![]() | Not Rated 1.3% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Investments December 31, 2011
Showing Percentage of Net Assets
Municipal Bonds - 85.6% | ||||
| Principal Amount (000s) | Value (000s) | ||
Alabama - 0.5% | ||||
Alabama 21st Century Auth. Tobacco Settlement Rev. Series 2001, 5.75% 12/1/15 | $ 1,000 | $ 1,012 | ||
Health Care Auth. for Baptist Health Bonds Series 2009 A, 6.125%, tender 5/15/12 (b) | 4,000 | 4,055 | ||
Jefferson County Swr. Rev. Series 2002 B, 5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) | 2,070 | 2,116 | ||
Mobile Indl. Dev. Board Poll. Cont. Rev. Bonds: | ||||
(Alabama Pwr. Co. Barry Plant Proj.) Series 2007 A, 4.75%, tender 3/19/12 (b) | 8,240 | 8,309 | ||
Series 2007 B, 4.875%, tender 3/19/13 (b) | 1,715 | 1,798 | ||
Pell City Spl. Care Facilities Rev. (Noland Health Svcs., Inc. Proj.) Series 2007 A, 5% 12/1/12 | 750 | 764 | ||
Univ. of Alabama at Birmingham Hosp. Rev. Series 2008 A, 5% 9/1/13 | 1,175 | 1,245 | ||
| 19,299 | |||
Arizona - 3.4% | ||||
Arizona Ctfs. of Partnership Series 2010 A: | ||||
5% 10/1/14 (FSA Insured) | 5,000 | 5,455 | ||
5% 10/1/16 (FSA Insured) | 13,000 | 14,843 | ||
Arizona Health Facilities Auth. Rev. (Banner Health Sys. Proj.): | ||||
Series 2008 A, 5% 1/1/13 | 2,000 | 2,076 | ||
Series 2008 D: | ||||
5% 1/1/13 | 3,250 | 3,374 | ||
5% 1/1/14 | 2,000 | 2,137 | ||
Arizona School Facilities Board Ctfs. of Prtn.: | ||||
Series 2004 B, 5.25% 9/1/15 (FSA Insured) | 6,470 | 7,002 | ||
Series 2005 A2, 5% 9/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 11,000 | 12,112 | ||
Series 2008: | ||||
5.5% 9/1/13 | 18,780 | 20,193 | ||
5.5% 9/1/16 | 1,385 | 1,592 | ||
Series A, 5% 9/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,280 | 3,374 | ||
Arizona Wtr. Infrastructure Fin. Auth. Rev. Series 2009 A: | ||||
5% 10/1/18 | 1,000 | 1,237 | ||
5% 10/1/20 | 5,180 | 6,389 | ||
Coconino County Poll. Cont. Corp. Rev. Bonds (Arizona Pub. Svc. Co. Navajo Proj.) Series 2009 A, 5.5%, tender 6/1/14 (b) | 6,000 | 6,489 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Arizona - continued | ||||
Maricopa County Poll. Cont. Rev. Bonds (Arizona Pub. Svc. Co. Palo Verde Proj.) Series 2009 A, 6%, tender 5/1/14 (b) | $ 4,800 | $ 5,232 | ||
Mesa Hwy. Proj. Advancement Series 2011 A: | ||||
5% 7/1/17 | 12,085 | 13,583 | ||
5% 7/1/18 | 5,200 | 5,824 | ||
Phoenix Civic Impt. Corp. Excise Tax Rev. Series 2003 A, 5% 7/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 750 | 767 | ||
Phoenix Civic Impt. Corp. Wtr. Sys. Rev.: | ||||
Series 2009 A, 5% 7/1/15 | 5,835 | 6,640 | ||
Series 2009 B, 5% 7/1/16 | 5,090 | 5,938 | ||
Pima County Swr. Sys. Rev. Series 2011 B, 5% 7/1/19 | 3,000 | 3,584 | ||
Tucson Gen. Oblig. Series 2005, 5% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,250 | 1,403 | ||
Tucson Wtr. Rev. Series 2001 A, 5% 7/1/15 (FGIC Insured) | 1,645 | 1,754 | ||
Univ. Med. Ctr. Corp. Hosp. Rev. Series 2011: | ||||
5% 7/1/16 | 3,055 | 3,333 | ||
5% 7/1/17 | 3,315 | 3,625 | ||
5% 7/1/18 | 3,365 | 3,670 | ||
| 141,626 | |||
California - 10.6% | ||||
California Dept. of Wtr. Resources Pwr. Supply Rev.: | ||||
Series 2002 A, 5.25% 5/1/12 | 6,000 | 6,098 | ||
Series 2010 L, 5% 5/1/17 | 12,000 | 14,358 | ||
Series 2010 M, 5% 5/1/16 | 8,000 | 9,358 | ||
California Econ. Recovery: | ||||
Bonds Series B, 5%, tender 7/1/14 (b) | 5,000 | 5,494 | ||
Series 2004 A, 5.25% 7/1/12 | 6,010 | 6,154 | ||
Series 2009 A: | ||||
5% 7/1/15 | 3,660 | 4,027 | ||
5% 7/1/15 (Pre-Refunded to 7/1/14 @ 100) | 2,540 | 2,822 | ||
5.25% 7/1/13 (Escrowed to Maturity) | 1,185 | 1,272 | ||
5.25% 7/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,255 | 1,343 | ||
5.25% 7/1/14 | 1,780 | 1,976 | ||
5.25% 7/1/14 (Escrowed to Maturity) | 520 | 581 | ||
California Gen. Oblig.: | ||||
5% 2/1/12 | 1,650 | 1,656 | ||
5% 3/1/12 | 15,000 | 15,109 | ||
5% 9/1/12 | 1,700 | 1,751 | ||
5% 10/1/12 | 12,600 | 13,026 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Gen. Oblig.: - continued | ||||
5% 11/1/13 | $ 9,060 | $ 9,767 | ||
5% 9/1/18 | 7,500 | 8,931 | ||
5% 9/1/19 | 20,000 | 23,941 | ||
5% 9/1/20 | 20,000 | 23,886 | ||
California Health Facilities Fing. Auth. Rev.: | ||||
(Catholic Healthcare West Proj.) Series 2008 H, 5.125% 7/1/22 | 2,495 | 2,663 | ||
(Children's Hosp. of Orange County Proj.) Series 2009 A, 5% 11/1/13 | 1,100 | 1,161 | ||
(Sutter Health Proj.) Series 2008 A, 5% 8/15/12 | 1,325 | 1,361 | ||
Bonds: | ||||
(Catholic Healthcare West Proj.): | ||||
Series 2009 D, 5%, tender 7/1/14 (b) | 2,900 | 3,132 | ||
Series 2009 F, 5%, tender 7/1/14 (b) | 3,200 | 3,455 | ||
(St. Joseph Health Sys. Proj.) Series 2009 C, 5%, tender 10/16/14 (b) | 4,300 | 4,691 | ||
California Infrastructure & Econ. Dev. Bank Rev. Bonds (The J. Paul Getty Trust Proj.) Series 2007 A3, 2.25%, tender 4/1/12 (b) | 6,500 | 6,532 | ||
California Poll. Cont. Fing. Auth. Ctfs. of Prtn. (San Diego Gas & Elec. Co. Proj.) 5.9% 6/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 34,000 | 37,915 | ||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. Bonds: | ||||
(Republic Svcs., Inc. Proj.) Series 2010 A, 1.2%, tender 2/1/12 (b)(e) | 2,400 | 2,401 | ||
(Waste Mgmt., Inc. Proj.) Series 2003 A, 5%, tender 5/1/13 (b)(e) | 2,300 | 2,407 | ||
California Pub. Works Board Lease Rev.: | ||||
(Dept. of Corrections & Rehab. Proj.) Series 2011 C, 5% 10/1/18 | 1,750 | 2,002 | ||
(Univ. Proj.) Series 2011 B: | ||||
5% 10/1/18 | 2,740 | 3,162 | ||
5% 10/1/19 | 1,490 | 1,712 | ||
(Various Cap. Projects) Series 2011 A: | ||||
5% 10/1/18 | 6,475 | 7,408 | ||
5% 10/1/19 | 5,000 | 5,712 | ||
5% 10/1/20 | 2,525 | 2,857 | ||
(Various Judicial Council Projects) Series 2011 D, 5% 12/1/19 | 4,100 | 4,648 | ||
Series 2009 J, 5% 11/1/17 | 2,300 | 2,607 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Pub. Works Board Lease Rev.: - continued | ||||
Series 2010 A: | ||||
5% 3/1/16 | $ 2,000 | $ 2,264 | ||
5% 3/1/17 | 5,405 | 6,049 | ||
California State Univ. Rev. Series 2007 C, 5% 11/1/13 (FSA Insured) | 1,335 | 1,444 | ||
California Statewide Cmntys. Dev. Auth. Rev. (State of California Proposition 1A Receivables Prog.) Series 2009: | ||||
4% 6/15/13 | 1,000 | 1,045 | ||
5% 6/15/13 | 16,650 | 17,642 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: | ||||
Series 2003 B: | ||||
5.5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) | 2,000 | 2,140 | ||
5.625% 6/1/38 (Pre-Refunded to 6/1/13 @ 100) | 3,030 | 3,247 | ||
Series 2007 A1, 5% 6/1/12 | 2,570 | 2,593 | ||
Los Angeles County Metropolitan Trans. Auth. Sales Tax Rev.: | ||||
Series 2009 A, 5% 7/1/13 | 4,155 | 4,437 | ||
Series 2009 B, 5% 7/1/17 | 12,905 | 15,359 | ||
Los Angeles County Pub. Works Fing. Auth. Lease Rev. Series 2010 A, 5% 8/1/17 | 5,000 | 5,784 | ||
Los Angeles Gen. Oblig. Series 2011 B, 5% 9/1/18 | 20,960 | 25,398 | ||
Los Angeles Unified School District Series 2009 KRY, 5% 7/1/13 | 10,740 | 11,468 | ||
Los Angeles Unified School District Ctfs. of Prtn. (Multiple Properties Proj.) Series 2010 A: | ||||
5% 12/1/16 | 2,025 | 2,264 | ||
5% 12/1/17 | 9,790 | 11,063 | ||
Los Angeles Wastewtr. Sys. Rev. Series 2009 A, 5% 6/1/15 | 12,240 | 13,915 | ||
Monterey County Pub. Impt. Corp. Ctfs. of Prtn. (Refing. Proj.) Series 2009, 5% 8/1/17 (FSA Insured) | 2,130 | 2,447 | ||
Newport Beach Rev. Bonds (Hoag Memorial Hosp. Presbyterian Proj.) Series 2009 E, 5%, tender 2/7/13 (b) | 2,500 | 2,615 | ||
Northern California Pwr. Agcy. Rev.: | ||||
(Geothermal #3 Proj.) Series 2009 A: | ||||
5% 7/1/13 | 1,020 | 1,085 | ||
5% 7/1/14 | 1,120 | 1,224 | ||
5% 7/1/15 | 2,170 | 2,440 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Northern California Pwr. Agcy. Rev.: - continued | ||||
(Hydroelectric #1 Proj.) Series 2010 A: | ||||
4% 7/1/15 | $ 2,000 | $ 2,177 | ||
5% 7/1/18 | 2,000 | 2,392 | ||
Poway Unified School District Pub. Fing. Auth. Lease Rev. Bonds Series 2008 B, 0%, tender 12/1/14 (FSA Insured) (b) | 7,115 | 6,681 | ||
Sacramento Muni. Util. District Elec. Rev. Series 2011 X, 5% 8/15/21 | 4,000 | 4,827 | ||
Sacramento Pwr. Auth. Cogeneration Proj. Rev. Series 2005 A, 5% 7/1/18 (AMBAC Insured) | 2,890 | 3,067 | ||
San Bernardino County Ctfs. of Prtn. (Arrowhead Proj.) Series 2009 A: | ||||
5% 8/1/16 | 5,450 | 5,971 | ||
5% 8/1/18 | 8,000 | 8,983 | ||
San Diego Cmnty. College District Series 2007, 0% 8/1/16 (FSA Insured) | 1,160 | 1,040 | ||
San Diego Pub. Facilities Fing. Auth. Swr. Rev.: | ||||
Series 2009 A: | ||||
5% 5/15/13 | 5,415 | 5,753 | ||
5% 5/15/15 | 1,845 | 2,085 | ||
Series 2009 B, 5% 5/15/14 | 7,000 | 7,679 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,600 | 3,595 | ||
| 437,549 | |||
Colorado - 0.2% | ||||
Colorado Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys./Sunbelt Proj.) Series 2006 F: | ||||
5% 11/15/12 | 380 | 394 | ||
5% 11/15/12 (Escrowed to Maturity) | 845 | 879 | ||
Bonds (Catholic Health Initiatives Proj.) Series 2008 C4, 4%, tender 11/12/15 (b) | 4,200 | 4,588 | ||
Univ. of Colorado Enterprise Sys. Rev. Series 2009 A, 5% 6/1/17 | 500 | 598 | ||
| 6,459 | |||
Connecticut - 2.3% | ||||
Connecticut Dev. Auth. Poll. Cont. Rev. Bonds (Connecticut Lt. & Pwr. Co. Proj.) Series 1996 A, 1.25%, tender 4/2/12 (b)(e) | 27,000 | 27,004 | ||
Connecticut Gen. Oblig. (Econ. Recovery Proj.) Series 2009 A, 5% 1/1/15 | 29,500 | 33,236 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Connecticut - continued | ||||
Connecticut Spl. Tax Oblig. Trans. Infrastructure Rev.: | ||||
Series 1998 A, 5.5% 10/1/13 (FGIC Insured) | $ 4,300 | $ 4,663 | ||
Series 2009 1: | ||||
5% 2/1/14 | 2,500 | 2,723 | ||
5% 2/1/15 | 11,995 | 13,540 | ||
Series 2011 A, 5% 12/1/18 | 5,575 | 6,838 | ||
Connecticut Transmission Muni. Elec. Energy Bonds Series 2011 A, 0.95%, tender 5/15/12 (b) | 5,900 | 5,901 | ||
Hartford Gen. Oblig. Series A, 5% 8/15/12 (Assured Guaranty Corp. Insured) | 1,000 | 1,026 | ||
| 94,931 | |||
Delaware - 0.1% | ||||
Delaware Econ. Dev. Auth. Rev. Bonds (Delmarva Pwr. & Lt. Co. Proj.) Series 2001 C, 0.75%, tender 6/1/12 (b) | 5,500 | 5,502 | ||
District Of Columbia - 0.6% | ||||
District of Columbia Gen. Oblig.: | ||||
Series 2007 B, 5% 6/1/16 (AMBAC Insured) | 3,555 | 4,113 | ||
Series B, 0% 6/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,600 | 3,581 | ||
District of Columbia Income Tax Rev. Series 2009 C, 5% 12/1/13 | 5,500 | 5,971 | ||
District of Columbia Rev. (Medlantic/Helix Proj.) Series 1998 C, 5% 8/15/15 (FSA Insured) | 1,500 | 1,640 | ||
District of Columbia Univ. Rev. Bonds (Georgetown Univ. Proj.) Series 2001 B, 4.7%, tender 4/1/18 (b) | 8,500 | 9,506 | ||
Washington DC Metropolitan Transit Auth. Rev. Series 2009 A, 5% 7/1/14 | 1,000 | 1,099 | ||
| 25,910 | |||
Florida - 7.0% | ||||
Alachua County Health Facilities Auth. Health Facilities Rev. (Shands Teaching Hospitals & Clinics, Inc. Proj.) Series 2010 B: | ||||
5% 12/1/14 | 4,000 | 4,322 | ||
5% 12/1/15 | 4,395 | 4,791 | ||
Broward County School Board Ctfs. of Prtn. Series 2008 A, 5% 7/1/15 (FSA Insured) | 5,495 | 6,036 | ||
Citizens Property Ins. Corp. Series 2010 A1, 5% 6/1/15 (FSA Insured) | 14,000 | 15,231 | ||
Clay County Infrastructure Sales Surtax Rev. 5% 10/1/15 (Assured Guaranty Corp. Insured) | 7,745 | 8,575 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Clearwater Wtr. and Swr. Rev.: | ||||
Series 2009 B, 5% 12/1/14 | $ 2,000 | $ 2,215 | ||
Series 2011: | ||||
4% 12/1/16 | 1,265 | 1,410 | ||
5% 12/1/17 | 1,685 | 1,995 | ||
5% 12/1/18 | 685 | 816 | ||
5% 12/1/19 | 1,820 | 2,195 | ||
5% 12/1/20 | 1,000 | 1,216 | ||
Collier County Indl. Dev. Auth. Healthcare Facilities Rev. (NCH Healthcare Sys. Proj.) Series 2011: | ||||
5% 10/1/14 | 1,355 | 1,461 | ||
5% 10/1/16 | 1,530 | 1,665 | ||
5% 10/1/17 | 1,455 | 1,586 | ||
Escambia City Health Facilities Auth. Rev. (Ascension Health Cr. Group Proj.) Series 2003 A, 5.25% 11/15/13 | 4,265 | 4,626 | ||
Escambia County Poll. Cont. Rev. Bonds (Gulf Pwr. Co. Proj.) Series 2003, 1.75%, tender 6/15/12 (b) | 1,500 | 1,506 | ||
Florida Board of Ed. Series 2005 B, 5% 1/1/18 | 21,080 | 23,788 | ||
Florida Board of Ed. Lottery Rev. Series 2011 A, 5% 7/1/20 | 8,600 | 10,478 | ||
Florida Board of Ed. Pub. Ed. Cap. Outlay: | ||||
Series 2009 C, 5% 6/1/20 | 3,625 | 4,452 | ||
Series 2009 D, 5.5% 6/1/16 | 7,910 | 9,421 | ||
Florida Gen. Oblig. (Dept. of Trans. Right-of-Way and Bridge Construction Proj.) Series 2005 B, 6.375% 7/1/13 | 8,020 | 8,713 | ||
Florida Hurricane Catastrophe Fund Fin. Corp. Rev. Series 2010 A, 5% 7/1/15 | 20,000 | 21,991 | ||
Greater Orlando Aviation Auth. Arpt. Facilities Rev. Series 2011 C: | ||||
5% 10/1/19 | 1,705 | 2,034 | ||
5% 10/1/20 | 1,000 | 1,199 | ||
Highlands County Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys./Sunbelt, Inc. Prog.) Series 2009 E, 5% 11/15/15 | 2,345 | 2,624 | ||
Bonds (Adventist Health Sys./Sunbelt, Inc. Prog.): | ||||
Series 2002, 3.95%, tender 9/1/12 (b) | 16,650 | 17,016 | ||
Series 2008 A, 6.1%, tender 11/14/13 (b) | 1,000 | 1,093 | ||
Hillsborough County Indl. Dev. (H Lee Moffitt Cancer Ctr. Proj.) Series 2007 A, 5% 7/1/12 | 1,310 | 1,332 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (Tampa Elec. Co. Proj.): | ||||
Series 2006, 5%, tender 3/15/12 (AMBAC Insured) (b) | $ 1,500 | $ 1,513 | ||
Series 2007 B, 5.15%, tender 9/1/13 (b) | 1,750 | 1,851 | ||
Indian River County Wtr. & Swr. Rev.: | ||||
5% 9/1/15 | 1,000 | 1,127 | ||
5% 9/1/17 | 1,000 | 1,180 | ||
Jacksonville Elec. Auth. Elec. Sys. Rev. Series 2009 B, 5% 10/1/12 | 7,350 | 7,599 | ||
JEA Wtr. & Swr. Sys. Rev. Series 2010 D, 5% 10/1/21 | 1,945 | 2,368 | ||
Kissimmee Util. Auth. Elec. Sys. Rev.: | ||||
Series 2003: | ||||
5.25% 10/1/14 | 775 | 856 | ||
5.25% 10/1/15 | 3,525 | 3,997 | ||
Series 2011, 2% 10/1/12 | 2,195 | 2,218 | ||
Lakeland Hosp. Sys. Rev. Series 2011, 3% 11/15/12 | 1,000 | 1,013 | ||
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured) | 1,980 | 2,003 | ||
Miami-Dade County Cap. Asset Acquisition Series 2002 A, 5% 4/1/12 (AMBAC Insured) | 2,800 | 2,828 | ||
Miami-Dade County Pub. Facilities Rev.: | ||||
(Jackson Health Sys. Proj.) Series 2005 B: | ||||
5% 6/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,790 | 5,091 | ||
5% 6/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,875 | 4,059 | ||
Series 2005 B, 5% 6/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,270 | 1,291 | ||
Miami-Dade County Wtr. & Swr. Rev. Series 2008 A, 5% 10/1/14 (FSA Insured) | 4,000 | 4,390 | ||
North Brevard County Hosp. District Rev. (Parrish Med. Ctr. Proj.) Series 2008, 4.625% 10/1/12 | 1,110 | 1,134 | ||
Orange County Health Facilities Auth. (Orlando Health, Inc.) Series 2009: | ||||
5% 10/1/15 | 2,210 | 2,418 | ||
5% 10/1/16 | 1,000 | 1,105 | ||
Orange County Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys. - Sunbelt Proj.) 5.625% 11/15/32 (Pre-Refunded to 11/15/12 @ 101) | 2,500 | 2,633 | ||
(Orlando Reg'l. Healthcare Sys. Proj.) Series 2008 A: | ||||
5% 11/1/13 (FSA Insured) | 1,000 | 1,050 | ||
5% 11/1/15 (FSA Insured) | 1,825 | 1,975 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Orlando & Orange County Expressway Auth. Rev. Series 2010 B, 5% 7/1/15 (FSA Insured) | $ 1,430 | $ 1,582 | ||
Orlando Utils. Commission Util. Sys. Rev.: | ||||
Series 2009 C, 5% 10/1/17 | 1,500 | 1,793 | ||
Series 2010 C, 5% 10/1/17 | 1,895 | 2,257 | ||
Series 2011 B: | ||||
5% 10/1/18 | 2,250 | 2,727 | ||
5% 10/1/19 | 2,325 | 2,819 | ||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev. Series 2011: | ||||
5% 10/1/17 (e) | 4,465 | 5,020 | ||
5% 10/1/18 (e) | 2,745 | 3,097 | ||
5% 10/1/19 (e) | 2,025 | 2,288 | ||
Polk County School District Sales Tax Rev. Series 2007, 5% 10/1/12 (FSA Insured) | 6,080 | 6,268 | ||
Sarasota County School Board Ctfs. of Prtn. (Master Lease Prog.): | ||||
5% 7/1/13 | 3,435 | 3,634 | ||
5% 7/1/14 | 2,000 | 2,166 | ||
Tampa Bay Wtr. Reg'l. Wtr. Supply Auth. Util. Sys. Rev.: | ||||
Series 2011 B, 5% 10/1/18 | 4,700 | 5,717 | ||
Series 2011, 5% 10/1/19 | 5,590 | 6,868 | ||
Tampa Health Sys. Rev. (Baycare Health Sys. Proj.) Series 2010: | ||||
5% 11/15/16 | 2,500 | 2,880 | ||
5% 11/15/17 | 1,500 | 1,752 | ||
Tampa Solid Waste Sys. Rev. Series 2010: | ||||
4% 10/1/14 (FSA Insured) (e) | 3,000 | 3,144 | ||
5% 10/1/15 (FSA Insured) (e) | 2,920 | 3,188 | ||
5% 10/1/16 (FSA Insured) (e) | 6,000 | 6,683 | ||
5% 10/1/17 (FSA Insured) (e) | 5,000 | 5,641 | ||
Titusville Wtr. & Swr. Rev. Series 2010, 5% 10/1/17 (Assured Guaranty Corp. Insured) | 1,135 | 1,324 | ||
| 288,334 | |||
Georgia - 3.2% | ||||
Appling County Dev. Auth. Poll. Cont. Rev. Bonds (Oglethorpe Pwr. Corp. Hatch Proj.) Series 2011 A, 2.5%, tender 3/1/13 (b) | 5,000 | 5,078 | ||
Atlanta Arpt. Rev. Series 2011 B, 5% 1/1/13 (e) | 1,000 | 1,040 | ||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. Bonds: | ||||
(Georgia Pwr. Co. Plant Vogtle Proj.): | ||||
Fifth Series 1994, 2.3%, tender 4/1/14 (b) | 6,600 | 6,731 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Georgia - continued | ||||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. Bonds: - continued | ||||
(Georgia Pwr. Co. Plant Vogtle Proj.): | ||||
Series 2008: | ||||
0.8%, tender 6/21/12 (b) | $ 13,855 | $ 13,870 | ||
5.05%, tender 1/12/12 (b) | 1,500 | 1,501 | ||
(Oglethorpe Pwr. Corp. Vogtle Proj.): | ||||
Series 2008 D, 6.75%, tender 4/1/12 (b) | 7,600 | 7,705 | ||
Series 2011 A, 2.5%, tender 3/1/13 (b) | 3,500 | 3,554 | ||
Fulton County Facilities Corp. Ctfs. of Prtn. (Gen. Purp. Proj.) Series 2009: | ||||
5% 11/1/12 | 1,555 | 1,606 | ||
5% 11/1/13 | 7,550 | 8,041 | ||
5% 11/1/14 | 7,490 | 8,177 | ||
Fulton County Wtr. & Swr. Rev. Series 2011: | ||||
5% 1/1/19 | 4,000 | 4,875 | ||
5% 1/1/20 | 4,000 | 4,918 | ||
Georgia Road & Thruway Auth. Rev. Series 2009 A, 5% 6/1/12 | 8,100 | 8,256 | ||
Main Street Natural Gas, Inc. Georgia Gas Proj. Rev. Series 2007 A, 5% 9/15/12 | 1,195 | 1,210 | ||
Monroe County Dev. Auth. Poll. Cont. Rev. Bonds (Oglethorpe Pwr. Corp. Scherer Proj.) Series 2011 A, 2.5%, tender 3/1/13 (b) | 11,500 | 11,679 | ||
Muni. Elec. Auth. of Georgia (Proj. One): | ||||
Series 2008 A: | ||||
5% 1/1/13 | 2,000 | 2,080 | ||
5.25% 1/1/17 (Berkshire Hathaway Assurance Corp. Insured) | 7,925 | 9,399 | ||
Series 2008 D: | ||||
5.75% 1/1/19 | 14,890 | 18,181 | ||
5.75% 1/1/20 | 3,555 | 4,307 | ||
Pub. Gas Partners, Inc. Rev. (Gas Supply Pool No. 1 Proj.) Series A, 5% 10/1/12 | 1,000 | 1,030 | ||
Richmond County Hosp. Auth. (Univ. Health Svcs., Inc. Proj.) Series 2009: | ||||
5% 1/1/14 | 1,305 | 1,391 | ||
5% 1/1/15 | 1,040 | 1,113 | ||
5% 1/1/16 | 2,415 | 2,610 | ||
5% 1/1/18 | 1,530 | 1,664 | ||
| 130,016 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Hawaii - 0.7% | ||||
Hawaii Arpts. Sys. Rev.: | ||||
Series 2010 B, 5% 7/1/15 (e) | $ 3,900 | $ 4,348 | ||
Series 2011, 5% 7/1/19 (e) | 4,000 | 4,527 | ||
Hawaii Gen. Oblig.: | ||||
Series DR: | ||||
5% 6/1/16 | 7,645 | 8,945 | ||
5% 6/1/16 (Escrowed to Maturity) | 2,895 | 3,415 | ||
Series DY: | ||||
5% 2/1/15 | 3,500 | 3,946 | ||
5% 2/1/16 | 4,000 | 4,630 | ||
| 29,811 | |||
Illinois - 7.5% | ||||
Chicago Board of Ed. Series 2009 D: | ||||
5% 12/1/17 (Assured Guaranty Corp. Insured) | 4,115 | 4,765 | ||
5% 12/1/18 (Assured Guaranty Corp. Insured) | 2,335 | 2,719 | ||
Chicago Gen. Oblig.: | ||||
(City Colleges Proj.): | ||||
Series 1999: | ||||
0% 1/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,200 | 6,289 | ||
0% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 2,513 | ||
0% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 9,000 | 7,204 | ||
Series1999, 0% 1/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 10,000 | 7,621 | ||
Series A: | ||||
5% 1/1/17 (FSA Insured) | 3,465 | 3,864 | ||
5.25% 1/1/12 (Escrowed to Maturity) | 825 | 825 | ||
5.25% 1/1/12 (FSA Insured) | 175 | 175 | ||
Series B: | ||||
5% 1/1/17 (FSA Insured) | 5,115 | 5,716 | ||
5.125% 1/1/15 (AMBAC Insured) | 3,995 | 4,303 | ||
Chicago Hsg. Auth. Rev. (Cap. Prog.) Series 2001, 5.5% 7/1/18 (Pre-Refunded to 7/1/12 @ 100) | 2,850 | 2,922 | ||
Chicago Midway Arpt. Rev. Bonds Series 2010 B, 5%, tender 1/1/15 (b) | 5,000 | 5,406 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series 2008 A: | ||||
5% 1/1/12 (FSA Insured) | 3,500 | 3,500 | ||
5% 1/1/13 (FSA Insured) | 4,000 | 4,172 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Chicago O'Hare Int'l. Arpt. Rev.: - continued | ||||
Series 2010 D, 5.25% 1/1/17 (e) | $ 1,000 | $ 1,122 | ||
Series 2010 E: | ||||
5% 1/1/15 (e) | 4,000 | 4,328 | ||
5% 1/1/16 (e) | 1,500 | 1,656 | ||
Series 2011 B, 5% 1/1/18 | 6,500 | 7,484 | ||
Series A, 5% 1/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,165 | 1,165 | ||
Chicago Sales Tax Rev. Series 1998, 5.5% 1/1/16 (FGIC Insured) (FSA Insured) | 1,710 | 1,957 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | ||||
(Fed. Transit Administration Section 5309 Proj.) Series 2008 A, 5% 6/1/13 | 3,765 | 3,969 | ||
5% 6/1/19 (Assured Guaranty Corp. Insured) | 2,085 | 2,279 | ||
5% 6/1/19 (Assured Guaranty Corp. Insured) (Pre-Refunded to 12/1/16 @ 100) | 415 | 494 | ||
Cook County Thorton Township High School District #205 5.5% 12/1/16 (Assured Guaranty Corp. Insured) | 2,500 | 2,944 | ||
Illinois Fin. Auth. Gas Supply Rev. Bonds (The Peoples Gas Lt. and Coke Co. Proj.): | ||||
Series 2010 B, 2.625%, tender 8/1/15 (b) | 9,500 | 9,740 | ||
Series 2010, 2.125%, tender 7/1/14 (b) | 11,500 | 11,568 | ||
Illinois Fin. Auth. Hosp. Rev. (KishHealth Sys. Proj.) Series 2008, 5.25% 10/1/15 | 2,220 | 2,382 | ||
Illinois Fin. Auth. Rev.: | ||||
(Advocate Health Care Proj.) Series 2010 D, 5% 4/1/15 | 550 | 609 | ||
(Alexian Brothers Health Sys. Proj.) Series 2010, 4.5% 2/15/16 | 3,000 | 3,181 | ||
(Memorial Health Sys. Proj.) Series 2009, 5% 4/1/19 | 1,600 | 1,738 | ||
(Northwest Cmnty. Hosp. Proj.) Series 2008 A: | ||||
5% 7/1/12 | 750 | 765 | ||
5% 7/1/13 | 415 | 437 | ||
5% 7/1/15 | 1,000 | 1,099 | ||
(Palos Cmnty. Hosp. Proj.) Series 2010 C: | ||||
5% 5/15/16 | 2,060 | 2,283 | ||
5% 5/15/17 | 3,520 | 3,946 | ||
(Provena Health Proj.) Series 2010 A: | ||||
5% 5/1/13 | 2,000 | 2,070 | ||
5% 5/1/14 | 2,000 | 2,100 | ||
5.75% 5/1/19 | 2,650 | 2,861 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Fin. Auth. Rev.: - continued | ||||
(Rush Univ. Med. Ctr. Proj.) Series 2006 B: | ||||
5% 11/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 3,075 | $ 3,310 | ||
5% 11/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,700 | 1,824 | ||
(The Carle Foundation Proj.) Series 2009 A, 5% 2/15/12 (Assured Guaranty Corp. Insured) | 4,965 | 4,981 | ||
Bonds (Advocate Health Care Proj.): | ||||
Series 2008 A3, 3.875%, tender 5/1/12 (b) | 4,000 | 4,042 | ||
Series 2008 C B3, 4.375%, tender 7/1/14 (b) | 4,000 | 4,250 | ||
Illinois Gen. Oblig.: | ||||
(Illinois FIRST Proj.) Series 2001, 5% 11/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,500 | 1,504 | ||
Series 1, 5.25% 8/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,865 | 2,934 | ||
Series 2002: | ||||
5% 10/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,515 | 3,595 | ||
5.5% 8/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,495 | 1,680 | ||
Series 2003 A, 5.25% 10/1/13 (FSA Insured) | 3,755 | 4,017 | ||
Series 2004 B, 5% 3/1/14 | 15,500 | 16,660 | ||
Series 2004, 5% 11/1/16 | 11,000 | 12,434 | ||
Series 2005: | ||||
5% 4/1/13 (AMBAC Insured) | 5,000 | 5,234 | ||
5% 4/1/17 (AMBAC Insured) | 8,050 | 8,724 | ||
Series 2007 A, 5.5% 6/1/15 | 1,000 | 1,119 | ||
Series 2007 B, 5% 1/1/17 | 9,835 | 11,060 | ||
Series 2009 A, 3.5% 9/1/13 | 3,000 | 3,111 | ||
Series 2010: | ||||
4% 1/1/13 | 3,695 | 3,800 | ||
5% 1/1/15 (FSA Insured) | 20,000 | 21,885 | ||
Illinois Health Facilities Auth. Rev.: | ||||
(Delnor-Cmnty. Hosp. Proj.) Series 2003 A: | ||||
5% 5/15/15 (FSA Insured) | 2,250 | 2,412 | ||
5% 5/15/16 (FSA Insured) | 2,325 | 2,529 | ||
Series 2003 A, 5% 5/15/17 (FSA Insured) | 2,150 | 2,425 | ||
Illinois Sales Tax Rev.: | ||||
Series 2009 B: | ||||
4.5% 6/15/16 | 5,000 | 5,613 | ||
4.5% 6/15/17 | 6,075 | 6,949 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Sales Tax Rev.: - continued | ||||
Series 2010, 5% 6/15/15 | $ 8,800 | $ 9,906 | ||
Series 2011, 4% 6/15/13 | 2,600 | 2,718 | ||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series 2002 B, 5.5% 1/1/12 (FSA Insured) | 2,270 | 2,270 | ||
Kane County School District #129, Aurora West Side Series 2002 A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) | 1,600 | 1,606 | ||
Lake County Cmnty. Consolidated School District #73 Gen. Oblig.: | ||||
0% 12/1/15 (Escrowed to Maturity) | 580 | 556 | ||
0% 12/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,520 | 1,352 | ||
Metropolitan Pier & Exposition: | ||||
(McCormick Place Expansion Proj.) Series 1996 A: | ||||
0% 6/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,410 | 1,397 | ||
0% 12/15/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,725 | 2,592 | ||
Series A, 0% 6/15/14 (Escrowed to Maturity) | 8,625 | 8,456 | ||
0% 6/15/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 700 | 654 | ||
Univ. of Illinois Rev. 0% 4/1/14 | 2,350 | 2,251 | ||
Will County Cmnty. Unit School District #365-U: | ||||
0% 11/1/14 (Escrowed to Maturity) | 1,025 | 998 | ||
0% 11/1/14 (FSA Insured) | 875 | 821 | ||
0% 11/1/16 (Escrowed to Maturity) | 740 | 697 | ||
0% 11/1/16 (FSA Insured) | 2,235 | 1,934 | ||
| 308,471 | |||
Indiana - 2.3% | ||||
Hamilton Southeastern Consolidated School Bldg. Corp.: | ||||
Series 2004, 5% 1/15/12 (FSA Insured) | 1,990 | 1,992 | ||
Series 2005 A, 5.25% 1/10/12 (FSA Insured) | 1,355 | 1,356 | ||
Indiana Fin. Auth. Health Sys. Rev. (Sisters of Saint Francis Health Svcs., Inc. Obligated Group Proj.) Series 2008 C, 5% 11/1/13 | 3,000 | 3,210 | ||
Indiana Fin. Auth. Hosp. Rev.: | ||||
(Jackson County Schneck Memorial Hosp. Proj.) Series 2010, 5% 2/15/18 | 1,475 | 1,595 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Indiana Fin. Auth. Hosp. Rev.: - continued | ||||
(Parkview Health Sys. Oblig. Group Proj.) | ||||
5% 5/1/14 | $ 3,500 | $ 3,768 | ||
5% 5/1/15 | 6,420 | 7,021 | ||
Indiana Fin. Auth. Rev.: | ||||
(Trinity Health Cr. Group Proj.) Series 2009 A: | ||||
5% 12/1/14 | 1,250 | 1,386 | ||
5% 12/1/15 | 2,135 | 2,409 | ||
(Wabash Valley Correctional Facilities Proj.) Series 2009 A, 5% 7/1/15 | 8,025 | 8,895 | ||
(Wabash Valley Correctional Facility Proj.) Series 2009 A, 5% 7/1/14 | 2,500 | 2,701 | ||
Series 2010 A, 5% 2/1/17 | 2,800 | 3,342 | ||
Indiana Health & Edl. Facilities Fing. Auth. Rev. Bonds (Ascension Health Sr. Cr. Group Proj.) Series 2006 B1, 4.1%, tender 11/3/16 (b) | 4,000 | 4,451 | ||
Indiana Health Facility Fing. Auth. Rev. Bonds: | ||||
(Ascension Health Cr. Group Proj.) Series 2001 A1, 1.5%, tender 8/1/14 (b) | 3,400 | 3,443 | ||
(Ascension Health Subordinate Cr. Proj.) Series A2, 3.75%, tender 2/1/12 (b) | 7,500 | 7,518 | ||
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2011 A: | ||||
5% 1/1/19 | 1,470 | 1,758 | ||
5% 1/1/20 | 1,250 | 1,498 | ||
Indiana Port Commission Port Rev. (Cargill, Inc. Proj.) 4.1% 5/1/12 | 4,100 | 4,146 | ||
Indianapolis Local Pub. Impt. Bond Bank (Wtrwks. Proj.): | ||||
Series 2002 A, 5.5% 7/1/16 (Pre-Refunded to 7/1/12 @ 100) | 5,000 | 5,129 | ||
Series F, 5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 515 | 578 | ||
Indianapolis Thermal Energy Sys. Series 2010 B: | ||||
5% 10/1/16 | 5,000 | 5,714 | ||
5% 10/1/17 | 5,000 | 5,774 | ||
Jasper County Indl. Poll. Ctl. Rev. (Northern Indiana Pub. Svc. Co. Proj.) Series 1988 B, 5.2% 6/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 3,143 | ||
Logansport High School Bldg. Corp. Series 2005: | ||||
5.25% 1/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,045 | 1,046 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Logansport High School Bldg. Corp. Series 2005: - continued | ||||
5.25% 7/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,075 | $ 1,101 | ||
Muncie School Bldg. Corp. Series 2005, 5.25% 7/10/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,585 | 1,623 | ||
Purdue Univ. Rev.: | ||||
(Student Facilities Sys. Proj.) Series 2009 B: | ||||
4% 7/1/17 | 500 | 574 | ||
5% 7/1/15 | 315 | 359 | ||
5% 7/1/16 | 500 | 586 | ||
Series Z-1: | ||||
5% 7/1/16 | 1,215 | 1,424 | ||
5% 7/1/17 | 1,000 | 1,201 | ||
5% 7/1/18 | 1,500 | 1,835 | ||
Univ. of Southern Indiana Rev. Series J: | ||||
5% 10/1/14 (Assured Guaranty Corp. Insured) | 1,985 | 2,159 | ||
5% 10/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,111 | ||
5% 10/1/16 (Assured Guaranty Corp. Insured) | 1,165 | 1,324 | ||
West Clark 2000 School Bldg. Corp. Series 2005, 5.25% 1/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,150 | 1,152 | ||
| 96,322 | |||
Iowa - 0.1% | ||||
Iowa Fin. Auth. Health Care Facilities Rev. (Genesis Health Sys. Proj.) Series 2010: | ||||
5% 7/1/15 | 2,165 | 2,349 | ||
5% 7/1/16 | 1,335 | 1,463 | ||
Iowa Fin. Auth. Health Facilities Rev. Series 2005 A, 5% 2/15/16 (Assured Guaranty Corp. Insured) | 1,700 | 1,902 | ||
| 5,714 | |||
Kansas - 0.7% | ||||
Kansas Dev. Fin. Agcy. (Adventist Health Sys./Sunbelt Obligated Group Proj.) Series 2009 D: | ||||
5% 11/15/14 | 575 | 635 | ||
5% 11/15/15 | 625 | 701 | ||
5% 11/15/16 | 875 | 997 | ||
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L, 5.25% 11/15/12 | 680 | 704 | ||
Olathe Health Facilities Rev. Bonds (Olathe Med. Ctr. Proj.) Series 2008 A, 4.125%, tender 3/1/13 (b) | 1,600 | 1,606 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Kansas - continued | ||||
Wichita Hosp. Facilities Rev.: | ||||
(Via Christi Health Sys., Inc. Proj.) | ||||
Series 2009 X: | ||||
5% 11/15/14 | $ 2,000 | $ 2,178 | ||
Series 2009 III A: | ||||
5% 11/15/14 | 2,405 | 2,619 | ||
5% 11/15/15 | 6,245 | 6,913 | ||
5% 11/15/16 | 5,410 | 6,062 | ||
Series 2011 IV A: | ||||
5% 11/15/18 | 2,250 | 2,599 | ||
5% 11/15/20 | 2,745 | 3,137 | ||
| 28,151 | |||
Kentucky - 1.0% | ||||
Ashland Med. Ctr. Rev. (Ashland Hosp. Corp. d/b/a/ King's Daughters Med. Ctr. Proj.) Series 2010 B: | ||||
4% 2/1/14 | 750 | 789 | ||
4% 2/1/15 | 1,495 | 1,586 | ||
Jefferson County School District Fin. Corp. School Bldg. Rev. Series 2009 A, 5.25% 1/1/13 (FSA Insured) | 2,170 | 2,273 | ||
Kentucky Econ. Dev. Fin. Auth. Hosp. Rev. (Baptist Healthcare Sys. Proj.) Series A, 5% 8/15/15 | 4,000 | 4,438 | ||
Kentucky Econ. Dev. Fin. Auth. Rev. (Ashland Hosp. Corp. d/b/a/ King's Daughters Med. Ctr. Proj.) Series 2010 A, 4% 2/1/13 | 500 | 517 | ||
Kentucky State Property & Buildings Commission Rev. (#82 Proj.) 5.25% 10/1/17 (FSA Insured) | 2,450 | 2,931 | ||
Louisville/Jefferson County Metropolitan Govt. Poll. Cont. Rev. Bonds (Louisville Gas and Electronic Co. Proj.): | ||||
Series 2003 A, 1.9%, tender 4/2/12 (b) | 10,900 | 10,927 | ||
Series 2005 A, 5.75%, tender 12/2/13 (b) | 6,000 | 6,420 | ||
Series 2007 B, 1.9%, tender 6/1/12 (b) | 10,900 | 10,943 | ||
| 40,824 | |||
Louisiana - 0.3% | ||||
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. Series ST-2005 B, 5% 2/1/12 (AMBAC Insured) | 1,000 | 1,003 | ||
Louisiana Pub. Facilities Auth. Rev.: | ||||
(Christus Health Proj.) Series 2009 A: | ||||
5% 7/1/13 | 3,500 | 3,684 | ||
5% 7/1/16 | 2,000 | 2,211 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Louisiana - continued | ||||
Louisiana Pub. Facilities Auth. Rev.: - continued | ||||
(Entergy Gulf States Louisiana LLC Proj.) Series 2010 B, 2.875% 11/1/15 | $ 3,000 | $ 3,057 | ||
Reg'l. Transit Auth. Louisiana Sales Tax Rev. 4% 12/1/16 (FSA Insured) | 1,000 | 1,104 | ||
| 11,059 | |||
Maryland - 1.2% | ||||
Maryland Gen. Oblig. Second Series B, 5.25% 8/15/16 | 16,100 | 19,329 | ||
Maryland Health & Higher Edl. Facilities Auth. Rev.: | ||||
(Univ. of Maryland Med. Sys. Proj.) Series 2008 F: | ||||
5% 7/1/13 | 2,400 | 2,537 | ||
5% 7/1/14 | 3,500 | 3,788 | ||
Bonds (Johns Hopkins Health Sys. Obligated Group Proj.) Series 2008 B, 5%, tender 5/15/15 (b) | 2,225 | 2,500 | ||
Montgomery County Gen. Oblig.: | ||||
(Dept. of Liquor Cont. Proj.) Series 2009 A, 5% 4/1/15 | 1,725 | 1,940 | ||
Series 2011 A, 5% 7/1/20 | 16,000 | 19,838 | ||
| 49,932 | |||
Massachusetts - 1.7% | ||||
Braintree Gen. Oblig. Series 2009: | ||||
5% 5/15/14 | 1,000 | 1,100 | ||
5% 5/15/16 | 4,400 | 5,147 | ||
Massachusetts Bay Trans. Auth. Series 1993 A, 5.5% 3/1/12 | 95 | 96 | ||
Massachusetts Bay Trans. Auth. Sales Tax Rev. Series 2006 B, 5.25% 7/1/18 | 2,300 | 2,857 | ||
Massachusetts Dept. of Trans. Metropolitan Hwy. Sys. Rev. Series 2010 B, 5% 1/1/15 | 12,400 | 13,618 | ||
Massachusetts Dev. Fin. Agcy. Rev.: | ||||
(Boston College Proj.): | ||||
Series Q1: | ||||
4% 7/1/15 | 1,500 | 1,642 | ||
4% 7/1/16 | 1,000 | 1,119 | ||
5% 7/1/13 | 1,000 | 1,067 | ||
Series Q2: | ||||
4% 7/1/15 | 1,170 | 1,281 | ||
4% 7/1/16 | 1,000 | 1,119 | ||
5% 7/1/13 | 1,100 | 1,173 | ||
5% 7/1/14 | 1,080 | 1,183 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Massachusetts - continued | ||||
Massachusetts Dev. Fin. Agcy. Rev.: - continued | ||||
(Boston College Proj.): | ||||
Series Q2: | ||||
5% 7/1/17 | $ 1,370 | $ 1,634 | ||
(Tufts Med. Ctr. Proj.) Series I: | ||||
5% 1/1/14 | 1,550 | 1,622 | ||
5% 1/1/16 | 1,300 | 1,377 | ||
Massachusetts Gen. Oblig. Series 2002 C: | ||||
5% 11/1/21 (Pre-Refunded to 11/1/12 @ 100) | 8,100 | 8,410 | ||
5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) | 2,495 | 2,596 | ||
Massachusetts Health & Edl. Facilities Auth. Rev. Bonds: | ||||
(Baystate Health Sys. Proj.) Series 2009 K, 5%, tender 7/1/13 (b) | 7,000 | 7,376 | ||
(Northeastern Univ. Proj.): | ||||
Series 2008 T2, 4.1%, tender 4/19/12 (b) | 1,200 | 1,213 | ||
Series 2009 T1, 4.125%, tender 2/16/12 (b) | 2,100 | 2,109 | ||
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series 2001 A, 5.5% 1/1/12 (AMBAC Insured) (e) | 1,000 | 1,000 | ||
Massachusetts Spl. Oblig. Rev. (Fed. Hwy. Grant Anticipation Note Prog.) Series 2003 A: | ||||
5% 12/15/12 (FSA Insured) | 3,300 | 3,448 | ||
5% 12/15/13 (FSA Insured) | 2,000 | 2,167 | ||
Medford Gen. Oblig. Series 2011 B, 4% 3/1/19 | 3,570 | 4,029 | ||
| 68,383 | |||
Michigan - 2.6% | ||||
Allegan Pub. School District Series 2008, 5% 5/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,590 | 1,613 | ||
Big Rapids Pub. School District: | ||||
5% 5/1/13 (Assured Guaranty Corp. Insured) | 1,195 | 1,250 | ||
5% 5/1/14 (Assured Guaranty Corp. Insured) | 1,190 | 1,283 | ||
Chelsea School District 5% 5/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,750 | 1,847 | ||
Clarkston Cmnty. Schools Series 2008, 5% 5/1/12 (FSA Insured) | 3,000 | 3,045 | ||
Detroit Swr. Disp. Rev. Series 2006 D, 0.849% 7/1/32 (b) | 4,075 | 2,707 | ||
Grand Haven Area Pub. Schools 5% 5/1/12 (FSA Insured) | 2,965 | 3,008 | ||
Grand Rapids Cmnty. College: | ||||
5% 5/1/12 (FSA Insured) | 1,305 | 1,324 | ||
5% 5/1/13 (FSA Insured) | 1,305 | 1,376 | ||
Grand Valley Michigan State Univ. Rev. Series 2009, 5% 12/1/16 | 1,320 | 1,517 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Michigan - continued | ||||
Kalamazoo Pub. Schools 5% 5/1/13 (Assured Guaranty Corp. Insured) | $ 2,940 | $ 3,102 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev.: | ||||
(Spectrum Health Sys. Proj.) Series 2011 A: | ||||
5% 11/15/18 | 1,250 | 1,453 | ||
5% 11/15/19 | 1,000 | 1,166 | ||
Bonds (Spectrum Health Sys. Proj.) Series 2008 A, 5.25%, tender 1/15/14 (b) | 2,200 | 2,362 | ||
Lincoln Consolidated School District 5% 5/1/12 (FSA Insured) | 1,485 | 1,507 | ||
Michigan Gen. Oblig. (Envir. Protection Prog.) Series 1992, 6.25% 11/1/12 | 675 | 708 | ||
Michigan Hosp. Fin. Auth. Rev.: | ||||
(McLaren Health Care Corp. Proj.) Series 2008 A, 5.25% 5/15/14 | 4,160 | 4,536 | ||
Bonds (Ascension Health Cr. Group Proj.) Series 1999 B3, 2%, tender 8/1/14 (b) | 11,000 | 11,284 | ||
Michigan Muni. Bond Auth. Rev.: | ||||
(Clean Wtr. Pooled Proj.) Series 2010: | ||||
5% 10/1/14 | 6,045 | 6,758 | ||
5% 10/1/15 | 1,750 | 2,013 | ||
5% 10/1/15 | 3,250 | 3,739 | ||
(Local Govt. Ln. Prog.) Series 2009 C: | ||||
5% 5/1/13 | 1,645 | 1,717 | ||
5% 5/1/14 | 2,140 | 2,276 | ||
5% 5/1/15 | 1,845 | 2,003 | ||
5% 5/1/16 | 1,865 | 2,060 | ||
Plymouth-Canton Cmnty. School District 5% 5/1/12 (FSA Insured) | 4,000 | 4,058 | ||
Pontiac Tax Increment Fin. Auth. Series 2002, 6.25% 6/1/22 (Pre-Refunded to 6/1/12 @ 101) | 2,260 | 2,337 | ||
Royal Oak City School District 5% 5/1/12 | 2,000 | 2,029 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Oblig. Group Proj.) Series 2009 W, 5% 8/1/15 | 2,070 | 2,233 | ||
Wayne County Arpt. Auth. Rev. Series 2011 A, 5% 12/1/19 (e) | 20,000 | 21,954 | ||
West Bloomfield School District 5% 5/1/15 (Assured Guaranty Corp. Insured) | 1,400 | 1,527 | ||
Western Michigan Univ. Rev.: | ||||
5.25% 11/15/14 (Assured Guaranty Corp. Insured) | 2,135 | 2,356 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Michigan - continued | ||||
Western Michigan Univ. Rev.: - continued | ||||
5.25% 11/15/15 (Assured Guaranty Corp. Insured) | $ 3,275 | $ 3,687 | ||
Western Townships Utils. Auth. Swr. Disp. Sys. Rev. Series 2009, 3% 1/1/12 | 1,000 | 1,000 | ||
| 106,835 | |||
Minnesota - 0.2% | ||||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev. Series 2008 A, 5% 1/1/13 (e) | 1,000 | 1,043 | ||
Minnesota 911 Rev. (Pub. Safety Radio Communications Sys. Proj.) Series 2009, 5% 6/1/14 (Assured Guaranty Corp. Insured) | 2,225 | 2,434 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Essentia Health Obligated Group Proj.) Series 2008 C1: | ||||
5% 2/15/15 (Assured Guaranty Corp. Insured) | 1,335 | 1,466 | ||
5% 2/15/16 (Assured Guaranty Corp. Insured) | 565 | 632 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev. Series 2009 A, 5% 1/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,111 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2009 A, 5% 1/1/16 | 1,000 | 1,143 | ||
| 7,829 | |||
Mississippi - 0.1% | ||||
Mississippi Hsg. Fin. Corp. Single Family Mtg. Rev. Series 1983, 0% 6/1/15 (Escrowed to Maturity) | 4,000 | 3,856 | ||
Missouri - 0.1% | ||||
Saint Louis Arpt. Rev. Series 2011 B, 3% 7/1/12 | 1,000 | 1,007 | ||
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series 2002 A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) | 1,050 | 1,056 | ||
| 2,063 | |||
Nebraska - 0.3% | ||||
Nebraska Pub. Pwr. District Rev.: | ||||
Series B, 5% 1/1/12 (FSA Insured) | 3,500 | 3,500 | ||
Series C: | ||||
4% 1/1/15 | 2,360 | 2,559 | ||
4% 1/1/16 | 2,195 | 2,427 | ||
Univ. of Nebraska Facilities Corp. Lease Rental Rev. (UNMC Health Professions Futures Proj.) Series 2009, 5% 8/15/13 | 4,000 | 4,248 | ||
| 12,734 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nevada - 1.8% | ||||
Clark County Arpt. Rev.: | ||||
Series 2008 E: | ||||
5% 7/1/14 | $ 2,905 | $ 3,147 | ||
5% 7/1/15 | 3,500 | 3,880 | ||
Series A1, 5% 7/1/12 (AMBAC Insured) (e) | 2,000 | 2,042 | ||
Clark County Fuel Tax Series 2008, 5% 6/1/13 | 5,815 | 6,163 | ||
Clark County School District: | ||||
(Bldg. Proj.) Series 2008 A, 5% 6/15/12 | 10,000 | 10,203 | ||
Series 1998, 5.5% 6/15/13 (FSA Insured) | 5,000 | 5,334 | ||
Series 2005 A, 5% 6/15/16 (FGIC Insured) | 21,215 | 23,892 | ||
Nevada Dept. of Bus. & Industry (Waste Mgmt., Inc. Proj.) Series 2001, 2.75% 10/1/14 (e) | 3,000 | 3,077 | ||
Nevada Gen. Oblig. Series 2010 C, 5% 6/1/19 | 12,140 | 14,488 | ||
| 72,226 | |||
New Hampshire - 0.0% | ||||
New Hampshire Health & Ed. Facilities Auth. Rev. Series 2011, 3% 10/1/12 | 1,050 | 1,063 | ||
New Jersey - 2.3% | ||||
New Jersey Ctfs. of Prtn.: | ||||
Series 2008 A, 5% 6/15/15 | 750 | 820 | ||
Series 2009 A: | ||||
5% 6/15/15 | 11,285 | 12,474 | ||
5% 6/15/16 | 6,500 | 7,328 | ||
New Jersey Econ. Dev. Auth. Poll. Cont. Rev. (Pub. Svc. Elec. & Gas Pwr. LLC Proj.) 5% 3/1/12 | 3,275 | 3,294 | ||
New Jersey Econ. Dev. Auth. School Facilities Construction Rev.: | ||||
Bonds Series 2008 J4, 5%, tender 9/1/14 (FSA Insured) (b) | 7,000 | 7,576 | ||
Series 2001 A, 5.5% 6/15/13 (AMBAC Insured) | 1,090 | 1,171 | ||
Series 2005 K, 5.25% 12/15/14 (FGIC Insured) | 1,790 | 1,995 | ||
Series 2005 O, 5% 3/1/20 | 6,350 | 6,928 | ||
Series 2008 W: | ||||
5% 3/1/12 (Escrowed to Maturity) | 5,545 | 5,586 | ||
5% 3/1/15 | 10,400 | 11,541 | ||
Series 2009 BB, 5% 9/1/15 | 3,390 | 3,803 | ||
Series 2011 EE, 5% 9/1/20 | 5,000 | 5,882 | ||
New Jersey Gen. Oblig. Series H, 5.25% 7/1/15 (FSA Insured) | 5,000 | 5,738 | ||
New Jersey Higher Ed. Student Assistance Auth. Student Ln. Rev. Series 2010 1A, 5% 12/1/15 | 4,500 | 4,964 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New Jersey - continued | ||||
New Jersey Tpk. Auth. Tpk. Rev. Series 1991 C, 6.5% 1/1/16 (Escrowed to Maturity) | $ 4,300 | $ 4,760 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series 2003 A, 5.5% 12/15/16 (FSA Insured) | 5,000 | 5,905 | ||
Series 2003 B. 5.25% 12/15/19 | 3,000 | 3,601 | ||
| 93,366 | |||
New Mexico - 1.1% | ||||
Farmington Poll. Cont. Rev. Bonds (Southern California Edison Co. Four Corners Proj.) Series 2005 B, 2.875%, tender 4/1/15 (b) | 22,100 | 22,773 | ||
New Mexico Edl. Assistance Foundation: | ||||
Series 2009 B, 4% 9/1/16 | 7,000 | 7,721 | ||
Series 2010 A1: | ||||
4% 12/1/15 | 3,700 | 4,032 | ||
4% 12/1/16 | 6,750 | 7,481 | ||
Rio Rancho Wtr. & Wastewtr. Sys. Rev. Series 2009, 5% 5/15/17 (FSA Insured) | 4,480 | 5,313 | ||
| 47,320 | |||
New York - 13.0% | ||||
Albany Indl. Dev. Agcy. Civic Facility Rev. (St. Peters Hosp. Proj.) Series 2008 A, 5.5% 11/15/12 | 1,000 | 1,039 | ||
Dutchess County Local Dev. Corp. Rev. (Health Quest Systems, Inc. Proj.) Series 2010 A: | ||||
5% 7/1/18 (Assured Guaranty Corp. Insured) (FSA Insured) | 1,100 | 1,232 | ||
5% 7/1/19 (Assured Guaranty Corp. Insured) (FSA Insured) | 640 | 718 | ||
Grand Central District Mgmt. Assoc., Inc. Series 2004, 5% 1/1/12 | 1,175 | 1,175 | ||
Long Island Pwr. Auth. Elec. Sys. Rev. Series 2010 A, 5% 5/1/15 | 5,000 | 5,582 | ||
Metropolitan Trans. Auth. Svc. Contract Rev. Series 2002 A, 5.5% 7/1/17 | 5,000 | 6,079 | ||
New York City Gen. Oblig.: | ||||
Series 1997 H, 6% 8/1/12 (FGIC Insured) | 1,000 | 1,033 | ||
Series 2005 C, 5% 8/1/12 | 19,770 | 20,307 | ||
Series 2005 D, 5% 8/1/12 (Escrowed to Maturity) | 4,925 | 5,059 | ||
Series 2005 F1, 5% 9/1/15 | 3,560 | 4,053 | ||
Series 2005 G, 5.625% 8/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,075 | 5,227 | ||
Series 2008 E, 5% 8/1/12 | 5,000 | 5,136 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York City Gen. Oblig.: - continued | ||||
Series 2010 C, 5% 8/1/13 | $ 7,000 | $ 7,497 | ||
Series B: | ||||
5% 8/1/14 | 10,000 | 11,059 | ||
5% 8/1/15 | 10,000 | 11,362 | ||
Series K: | ||||
5% 8/1/12 | 2,335 | 2,398 | ||
5% 8/1/12 (Escrowed to Maturity) | 2,025 | 2,080 | ||
Series O: | ||||
5% 6/1/12 | 1,745 | 1,779 | ||
5% 6/1/12 (Escrowed to Maturity) | 5,780 | 5,891 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2003 B, 5% 2/1/20 | 3,000 | 3,711 | ||
Series 2007 C1, 5% 11/1/15 | 10,000 | 11,488 | ||
Series 2010 B: | ||||
5% 11/1/17 | 30,000 | 36,185 | ||
5% 11/1/20 | 5,950 | 7,314 | ||
Series 2010 D: | ||||
5% 11/1/15 | 8,300 | 9,535 | ||
5% 11/1/17 | 10,115 | 12,201 | ||
Series 2012 A: | ||||
5% 11/1/17 | 7,000 | 8,443 | ||
5% 11/1/20 | 4,500 | 5,607 | ||
Series E, 4% 11/1/12 | 6,790 | 6,999 | ||
New York City Trust Cultural Resources Rev. Bonds (The Juilliard School Proj.) Series 2009 B, 2.75%, tender 7/1/12 (b) | 3,500 | 3,542 | ||
New York Dorm. Auth. Personal Income Tax Rev.: | ||||
(Ed. Proj.) Series 2009 A: | ||||
5% 3/15/12 | 3,900 | 3,937 | ||
5% 3/15/13 | 3,545 | 3,742 | ||
5% 3/15/14 | 3,745 | 4,106 | ||
5% 3/15/15 | 4,000 | 4,526 | ||
Series 2009 D: | ||||
5% 6/15/14 | 9,890 | 10,937 | ||
5% 6/15/15 | 16,075 | 18,311 | ||
5% 6/15/16 | 9,330 | 10,913 | ||
Series 2010 A, 5% 2/15/14 (Escrowed to Maturity) | 10 | 11 | ||
Series A: | ||||
5% 2/15/14 | 9,840 | 10,758 | ||
5% 2/15/15 | 8,775 | 9,902 | ||
5% 2/15/15 (Escrowed to Maturity) | 5 | 6 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.) Series A: | ||||
5.75% 7/1/13 | $ 1,980 | $ 2,067 | ||
5.75% 7/1/13 (AMBAC Insured) | 570 | 595 | ||
(Mental Health Svcs. Facilities Proj.): | ||||
Series 2008 D: | ||||
5% 2/15/14 | 7,295 | 7,889 | ||
5% 8/15/14 | 7,755 | 8,533 | ||
Series 2009 A1, 5% 2/15/15 | 9,000 | 10,015 | ||
(New York Univ. Hosp. Ctr. Proj.) Series 2011 A, 5% 7/1/18 | 3,240 | 3,636 | ||
(St. Lawrence Univ.) Series 2008, 5% 7/1/14 | 3,700 | 3,983 | ||
Bonds Series 2002 B, 5.25%, tender 5/15/12 (b) | 16,055 | 16,335 | ||
Series 2008 B, 5% 7/1/15 | 30,000 | 33,785 | ||
Series 2009 A: | ||||
5% 7/1/15 | 12,850 | 14,396 | ||
5% 7/1/16 | 8,390 | 9,590 | ||
New York Local Govt. Assistance Corp. Series 2003 A, 5% 4/1/18 | 12,400 | 15,232 | ||
New York Metropolitan Trans. Auth. Dedicated Tax Fund Rev. Series B: | ||||
5% 11/15/14 | 1,350 | 1,508 | ||
5% 11/15/15 | 2,325 | 2,667 | ||
New York Metropolitan Trans. Auth. Rev.: | ||||
Bonds Series 2008 B2, 5%, tender 11/15/12 (b) | 7,300 | 7,567 | ||
Series 2003 B: | ||||
5.25% 11/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,040 | 1,113 | ||
5.25% 11/15/19 (FGIC Insured) | 5,200 | 6,310 | ||
Series 2010 B2, 4% 11/15/14 | 2,830 | 3,061 | ||
New York State Energy Research & Dev. Auth. Facilities Rev. Bonds (Consolidated Edison Co. of New York, Inc. Proj.) Series 2010 A, 1.45%, tender 11/1/12 (b)(e) | 26,400 | 26,508 | ||
New York Thruway Auth. Second Gen. Hwy. & Bridge Trust Fund: | ||||
Series 2008 A, 5% 4/1/13 | 2,600 | 2,747 | ||
Series 2010 A, 5% 4/1/17 | 1,000 | 1,186 | ||
Series 2011 A1: | ||||
5% 4/1/17 | 1,500 | 1,778 | ||
5% 4/1/18 | 3,500 | 4,232 | ||
New York Urban Dev. Corp. Rev.: | ||||
Series 2005 A, 5% 1/1/12 | 5,015 | 5,015 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York Urban Dev. Corp. Rev.: - continued | ||||
Series 2009 C: | ||||
5% 12/15/15 | $ 6,500 | $ 7,509 | ||
5% 12/15/16 | 17,000 | 20,173 | ||
Niagara County Indl. Dev. Agcy. Solid Waste Disp. Rev. Bonds Series 2001 C, 5.625%, tender 11/15/14 (b)(e) | 2,450 | 2,477 | ||
Tobacco Settlement Asset Securitization Corp. Series 2002-1, 5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) | 5,475 | 5,626 | ||
Tobacco Settlement Fing. Corp. Series 2011, 5% 6/1/16 | 20,000 | 22,955 | ||
Triborough Bridge & Tunnel Auth. Revs. Series Y, 5.5% 1/1/17 (Escrowed to Maturity) | 6,470 | 7,286 | ||
| 536,654 | |||
New York & New Jersey - 0.1% | ||||
Port Auth. of New York & New Jersey 124th Series, 5% 8/1/13 (FGIC Insured) (e) | 1,200 | 1,204 | ||
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (e) | 4,100 | 4,386 | ||
| 5,590 | |||
North Carolina - 1.1% | ||||
Charlotte-Mecklenburg Hosp. Auth. Health Care Sys. Rev. Series 2007 A, 5% 1/15/12 | 400 | 401 | ||
Mecklenburg County Pub. Facilities Corp. Series 2009: | ||||
5% 3/1/16 | 5,870 | 6,808 | ||
5% 3/1/18 | 1,500 | 1,822 | ||
Nash Health Care Sys. Health Care Facilities Rev. Series 2003: | ||||
5% 11/1/13 (FSA Insured) | 1,500 | 1,587 | ||
5% 11/1/15 (FSA Insured) | 1,600 | 1,747 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev. Series 2010 A: | ||||
5% 1/1/15 | 4,000 | 4,451 | ||
5% 1/1/16 | 6,035 | 6,885 | ||
North Carolina Grant Anticipation Rev. Series 2009, 5% 3/1/15 | 1,250 | 1,405 | ||
North Carolina Med. Care Commission Hosp. Rev. (North Carolina Baptist Hosp. Proj.) Series 2010: | ||||
5% 6/1/15 | 1,500 | 1,660 | ||
5% 6/1/16 | 1,000 | 1,125 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
North Carolina - continued | ||||
North Carolina Med. Care Commission Hosp. Rev. (North Carolina Baptist Hosp. Proj.) Series 2010: - continued | ||||
5% 6/1/17 | $ 3,220 | $ 3,667 | ||
5% 6/1/18 | 3,820 | 4,389 | ||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.: | ||||
Series 1998 A, 5.5% 1/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,675 | 4,148 | ||
Series 2008 A, 5.25% 1/1/20 | 2,000 | 2,359 | ||
6% 1/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,300 | 4,300 | ||
| 46,754 | |||
North Dakota - 0.0% | ||||
Grand Forks Health Care Sys. Rev. (Altru Health Sys. Proj.) Series 2005, 5% 12/1/15 (Assured Guaranty Corp. Insured) | 1,825 | 1,987 | ||
Ohio - 3.2% | ||||
Buckeye Tobacco Settlement Fing. Auth. Series 2007 A1: | ||||
5% 6/1/16 | 3,035 | 3,222 | ||
5% 6/1/17 | 3,500 | 3,707 | ||
Cincinnati City School District 5.25% 12/1/18 (FGIC Insured) | 3,555 | 4,379 | ||
Columbus City School District (School Facilities Construction and Impt. Proj.) Series 2009 B, 4% 12/1/16 | 1,000 | 1,128 | ||
Hamilton County Student Hsg. Rev. (Stratford Heights Proj.) Series 2010: | ||||
5% 6/1/15 (FSA Insured) | 760 | 837 | ||
5% 6/1/16 (FSA Insured) | 1,105 | 1,245 | ||
5% 6/1/17 (FSA Insured) | 1,160 | 1,328 | ||
Ohio Air Quality Dev. Auth. Rev. Bonds: | ||||
(FirstEnergy Nuclear Generation Corp. Proj.) Series 2008 C, 7.25%, tender 11/1/12 (b)(e) | 9,000 | 9,355 | ||
(Ohio Pwr. Co. Proj.) Series 2010 A, 3.25%, tender 6/2/14 (b) | 5,500 | 5,682 | ||
Ohio Bldg. Auth.: | ||||
(Administrative Bldg. Fund Proj.): | ||||
Series 2009 B: | ||||
5% 10/1/14 | 5,955 | 6,588 | ||
5% 10/1/15 | 6,505 | 7,391 | ||
Series 2010 C: | ||||
4% 10/1/15 | 3,200 | 3,507 | ||
5% 10/1/16 | 1,250 | 1,450 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Ohio - continued | ||||
Ohio Bldg. Auth.: - continued | ||||
(Adult Correctional Bldg. Fund Proj.): | ||||
Series 2009 B: | ||||
5% 10/1/14 | $ 2,055 | $ 2,274 | ||
5% 10/1/15 | 4,535 | 5,152 | ||
Series 2010 A, 5% 10/1/15 | 1,185 | 1,342 | ||
Ohio Gen. Oblig.: | ||||
(Common Schools Proj.): | ||||
Series 2010 A, 5% 9/15/17 | 2,600 | 3,142 | ||
Series 2010 B, 5% 9/15/15 | 19,080 | 21,886 | ||
(Higher Ed. Proj.): | ||||
Series 2005 C, 5% 8/1/13 | 4,495 | 4,819 | ||
Series 2010 A, 5% 8/1/17 | 3,290 | 3,964 | ||
Ohio Higher Edl. Facility Commission Rev.: | ||||
(Cleveland Clinic Foundation Proj.) Series 2008 A, 5% 1/1/15 | 2,000 | 2,200 | ||
(Univ. Hosp. Health Sys. Proj.) Series 2010 A: | ||||
5% 1/15/15 | 500 | 539 | ||
5% 1/15/17 | 1,000 | 1,102 | ||
Ohio Solid Waste Rev. Bonds (Republic Svcs., Inc. Proj.) 0.7%, tender 3/1/12 (b) | 12,000 | 12,000 | ||
Ohio State Univ. Gen. Receipts Series 2010 A, 5% 12/1/16 | 5,000 | 5,918 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Bonds: | ||||
(First Energy Nuclear Generation Corp. Proj.) Series 2005 B, 3.375%, tender 7/1/15 (b) | 5,000 | 5,113 | ||
(FirstEnergy Corp. Proj.) Series 2009 A, 5.875%, tender 6/1/16 (b) | 7,225 | 8,117 | ||
Ross County Hosp. Facilities Rev. (Adena Health Sys. Proj.) Series 2008: | ||||
5% 12/1/12 | 1,950 | 2,006 | ||
5% 12/1/13 | 875 | 921 | ||
5% 12/1/14 | 2,275 | 2,451 | ||
| 132,765 | |||
Oklahoma - 0.3% | ||||
Oklahoma Dev. Fin. Auth. (Pub. Svc. Co. of Oklahoma Proj.) Series 2009, 5.25% 6/1/14 | 2,700 | 2,912 | ||
Oklahoma Dev. Fin. Auth. Health Sys. Rev. (Integris Baptist Med. Ctr. Proj.) Series 2008 B, 5% 8/15/14 | 1,660 | 1,813 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Oklahoma - continued | ||||
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) Series 2007, 5% 2/15/13 | $ 35 | $ 36 | ||
Tulsa County Indl. Auth. Edl. Facilities Lease Rev. (Jenks Pub. Schools Proj.) Series 2009, 5.5% 9/1/18 | 5,215 | 6,376 | ||
| 11,137 | |||
Oregon - 0.4% | ||||
Clackamas County Hosp. Facility Auth. Bonds (Legacy Health Sys. Proj.) Series 2009 C, 5%, tender 7/15/14 (b) | 2,500 | 2,683 | ||
Gilliam County Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) Series 2000 A, 3.5%, tender 5/1/13 (b)(e) | 5,300 | 5,444 | ||
Oregon Facilities Auth. Rev. (Legacy Health Sys. Proj.) Series 2009 A: | ||||
5% 3/15/13 | 1,000 | 1,045 | ||
5% 3/15/14 | 595 | 638 | ||
5% 3/15/15 | 2,500 | 2,733 | ||
5% 3/15/16 | 1,750 | 1,951 | ||
| 14,494 | |||
Pennsylvania - 4.5% | ||||
Allegheny County Arpt. Auth. Rev. Series A: | ||||
5% 1/1/14 (FSA Insured) (e) | 1,350 | 1,401 | ||
5% 1/1/15 (FSA Insured) (e) | 1,000 | 1,069 | ||
5% 1/1/16 (FSA Insured) (e) | 1,000 | 1,083 | ||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (e) | 1,300 | 1,300 | ||
Allegheny County Hosp. Dev. Auth. Rev.: | ||||
(Pittsburgh Med. Ctr. Proj.): | ||||
Series 2008 A, 5% 9/1/12 | 6,615 | 6,814 | ||
Series 2008 B, 5% 6/15/14 | 1,385 | 1,506 | ||
(Univ. of Pittsburgh Med. Ctr. Proj.) Series 2009 A: | ||||
4% 8/15/15 | 1,385 | 1,498 | ||
5% 8/15/14 | 1,955 | 2,138 | ||
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.) Series 2005 A, 3.375%, tender 7/1/15 (b) | 2,000 | 2,045 | ||
Franklin County Indl. Dev. Auth. (The Chambersburg Hosp. Proj.) Series 2010: | ||||
5% 7/1/16 | 1,000 | 1,098 | ||
5% 7/1/17 | 1,255 | 1,378 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series 2009 A, 5% 6/1/17 | $ 2,200 | $ 2,443 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. Bonds (Exelon Generation Proj.) Series 2009 A, 5%, tender 6/1/12 (b) | 1,000 | 1,017 | ||
Pennsylvania Intergovernmental Coop. Auth. Spl. Tax Rev. (City of Philadelphia Fdg. Prog.) Series 2009, 5% 6/15/15 | 10,600 | 11,990 | ||
Pennsylvania Tpk. Commission Tpk. Rev. Series 2009 B, 5% 12/1/17 | 12,500 | 14,777 | ||
Philadelphia Gas Works Rev. (1998 Gen. Ordinance Proj.): | ||||
Eighth Series A, 5% 8/1/15 | 2,100 | 2,334 | ||
Seventh Series, 5% 10/1/12 (AMBAC Insured) | 1,000 | 1,031 | ||
Philadelphia Gen. Oblig.: | ||||
Series 2007 A, 5% 8/1/12 (FSA Insured) | 5,000 | 5,124 | ||
Series 2008 A: | ||||
5% 12/15/14 (FSA Insured) | 5,370 | 5,812 | ||
5% 12/15/15 (FSA Insured) | 5,000 | 5,494 | ||
5% 12/15/16 (FSA Insured) | 7,275 | 8,155 | ||
Series 2011: | ||||
4% 8/1/12 | 4,325 | 4,400 | ||
5.25% 8/1/17 | 6,165 | 6,963 | ||
5.25% 8/1/18 | 5,515 | 6,289 | ||
Philadelphia School District: | ||||
Series 2005 D, 5.25% 6/1/12 (FSA Insured) | 1,465 | 1,495 | ||
Series 2010 C: | ||||
5% 9/1/15 | 13,200 | 14,574 | ||
5% 9/1/16 | 13,610 | 15,198 | ||
Philadelphia Wtr. & Wastewtr. Rev. Series 2010 A: | ||||
5% 6/15/15 | 15,000 | 16,729 | ||
5% 6/15/16 | 6,000 | 6,888 | ||
Pittsburgh & Allegheny County Sports & Exhibition Auth. Series 2010: | ||||
5% 2/1/15 (FSA Insured) | 4,580 | 4,943 | ||
5% 2/1/16 (FSA Insured) | 5,620 | 6,188 | ||
Pittsburgh School District: | ||||
Series 2009 A: | ||||
3% 9/1/12 (Assured Guaranty Corp. Insured) | 1,300 | 1,317 | ||
3% 9/1/14 (Assured Guaranty Corp. Insured) | 1,640 | 1,702 | ||
Series 2010 A: | ||||
4% 9/1/15 (FSA Insured) | 1,450 | 1,564 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Pittsburgh School District: - continued | ||||
Series 2010 A: | ||||
5% 9/1/16 (FSA Insured) | $ 1,685 | $ 1,921 | ||
Saint Mary Hosp. Auth. Health Sys. Rev. (Catholic Health East Proj.) Series 2010 B: | ||||
5% 11/15/13 | 2,465 | 2,624 | ||
5% 11/15/14 | 4,690 | 5,100 | ||
5% 11/15/15 | 2,420 | 2,669 | ||
Southeastern Pennsylvania Trans. Auth. Rev. Series 2011: | ||||
5% 6/1/18 | 1,000 | 1,170 | ||
5% 6/1/19 | 200 | 236 | ||
Unionville-Chadds Ford School District Gen. Oblig. Series 2009, 5% 6/1/20 | 1,190 | 1,456 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) | 2,355 | 2,344 | ||
| 185,277 | |||
Puerto Rico - 0.3% | ||||
Puerto Rico Govt. Dev. Bank Series 2006 B, 5% 12/1/12 | 1,000 | 1,032 | ||
Puerto Rico Infrastructure Fin. Bonds (Port Auth. Proj.) Series 2011 C, 2.75%, tender 6/15/13 (b)(e) | 9,600 | 9,601 | ||
| 10,633 | |||
Rhode Island - 0.3% | ||||
Rhode Island & Providence Plantations Series 2010 A, 5% 10/1/12 | 2,250 | 2,328 | ||
Rhode Island Econ. Dev. Corp. Rev. (Dept. of Trans. Proj.) Series 2009 A: | ||||
5% 6/15/15 (Assured Guaranty Corp. Insured) | 2,010 | 2,240 | ||
5% 6/15/16 (Assured Guaranty Corp. Insured) | 6,625 | 7,575 | ||
| 12,143 | |||
South Carolina - 0.2% | ||||
Lexington County Health Svcs. District, Inc. Hosp. Rev. Series 2011: | ||||
3% 11/1/12 | 1,400 | 1,425 | ||
5% 11/1/19 | 1,190 | 1,374 | ||
South Carolina Jobs-Econ. Dev. Auth. (Anmed Health Proj.) Series 2010: | ||||
5% 2/1/16 | 2,000 | 2,201 | ||
5% 2/1/17 | 2,300 | 2,540 | ||
| 7,540 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
South Dakota - 0.2% | ||||
South Dakota Health & Edl. Facilities Auth. Rev.: | ||||
(Reg'l. Health Proj.) Series 2010: | ||||
5% 9/1/14 | $ 625 | $ 681 | ||
5% 9/1/15 | 680 | 753 | ||
5% 9/1/16 | 500 | 562 | ||
5% 9/1/17 | 490 | 558 | ||
Series 2011: | ||||
5% 9/1/17 | 1,100 | 1,253 | ||
5% 9/1/18 | 1,200 | 1,369 | ||
5% 9/1/19 | 1,255 | 1,434 | ||
| 6,610 | |||
Tennessee - 0.4% | ||||
Jackson Hosp. Rev. (Jackson-Madison County Gen. Hosp. Proj.) Series 2008, 5% 4/1/13 | 1,000 | 1,041 | ||
Memphis Elec. Sys. Rev. 5% 12/1/14 | 5,000 | 5,568 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series 2010 B, 5% 7/1/16 (e) | 1,730 | 1,916 | ||
Metropolitan Nashville Arpt. Auth. Rev. Series 2010 A: | ||||
5% 7/1/16 | 1,815 | 2,050 | ||
5% 7/1/17 | 1,100 | 1,265 | ||
Shelby County Health Edl. & Hsg. Facilities Board Rev. Series 2004 A, 5% 9/1/15 | 3,125 | 3,470 | ||
| 15,310 | |||
Texas - 5.7% | ||||
Austin Cmnty. College District Pub. Facilities Lease Rev. (Round Rock Campus Proj.) Series 2008, 5.25% 8/1/15 | 2,585 | 2,936 | ||
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.): | ||||
Series 2006 A, 6% 1/1/14 | 1,420 | 1,452 | ||
Series 2006 B: | ||||
6% 1/1/12 | 500 | 500 | ||
6% 1/1/13 | 1,270 | 1,286 | ||
Austin Elec. Util. Sys. Rev.: | ||||
Series A, 5% 11/15/15 | 1,000 | 1,142 | ||
0% 5/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,500 | 3,745 | ||
Austin Independent School District Series 2004, 5% 8/1/17 | 1,450 | 1,757 | ||
Austin Wtr. & Wastewtr. Sys. Rev. Series 2009 A, 5% 11/15/15 | 2,250 | 2,582 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Brownsville Util. Sys. Rev. Series 2008 A, 5% 9/1/15 (FSA Insured) | $ 2,665 | $ 3,024 | ||
Carroll Independent School District Series 2009 C, 5.25% 2/15/19 | 1,000 | 1,250 | ||
Corpus Christi Independent School District 4% 8/15/14 | 10,140 | 10,982 | ||
Dallas Fort Worth Int'l. Arpt. Rev. Series 2009 A: | ||||
5% 11/1/14 | 2,500 | 2,765 | ||
5% 11/1/15 | 5,000 | 5,672 | ||
Dallas Wtrwks. & Swr. Sys. Rev. Series 2011, 5% 10/1/18 | 1,600 | 1,969 | ||
Fort Worth Independent School District: | ||||
Series 2005, 5% 2/15/12 | 1,500 | 1,508 | ||
Series 2009, 5% 2/15/16 | 3,690 | 4,302 | ||
Frisco Gen. Oblig. Series 2004, 5.25% 2/15/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,380 | 1,512 | ||
Grapevine Gen. Oblig.: | ||||
Series 2009 A, 5% 2/15/15 | 2,215 | 2,484 | ||
Series 2009, 5% 2/15/16 | 1,375 | 1,592 | ||
Harris County Cultural Ed. Facilities Fin. Corp. Thermal Util. Rev. (TECO Proj.) Series 2009 A: | ||||
5% 11/15/12 | 1,000 | 1,036 | ||
5% 11/15/14 | 1,000 | 1,099 | ||
5% 11/15/16 | 500 | 576 | ||
Harris County Gen. Oblig. (Road Proj.) Series 2008 B: | ||||
5% 8/15/13 | 1,000 | 1,070 | ||
5% 8/15/14 | 1,075 | 1,190 | ||
Houston Arpt. Sys. Rev.: | ||||
Series 2011 A, 5% 7/1/17 (e) | 7,380 | 8,289 | ||
Series 2011 B, 3% 7/1/12 | 1,540 | 1,557 | ||
Series A: | ||||
5% 7/1/15 | 2,070 | 2,321 | ||
5% 7/1/16 | 1,080 | 1,244 | ||
Houston Cmnty. College Sys. Rev. Series 2005, 5.25% 4/15/12 (FSA Insured) | 2,000 | 2,028 | ||
Houston Gen. Oblig.: | ||||
Series 2004 A, 5.25% 3/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,855 | 3,134 | ||
Series 2007 B, 5% 3/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,575 | 3,602 | ||
Series A, 5% 3/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,500 | 7,897 | ||
Houston Independent School District Series 2005 A, 0% 2/15/16 | 4,500 | 4,274 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Humble Independent School District Series 2009, 4% 2/15/13 | $ 400 | $ 416 | ||
Katy Independent School District Series A, 5.25% 2/15/12 | 2,000 | 2,011 | ||
Keller Independent School District 5% 2/15/14 | 3,750 | 4,075 | ||
Klein Independent School District Series 2009 A, 5% 8/1/16 | 2,195 | 2,589 | ||
Leander Independent School District Series 2001, 6% 8/15/14 | 1,850 | 2,102 | ||
Lewisville Independent School District Series 2009, 5% 8/15/17 | 1,170 | 1,408 | ||
Lone Star College Sys. Gen. Oblig. Series 2010 A, 5% 8/15/22 | 2,500 | 2,560 | ||
Lower Colorado River Auth. Rev. Series 2010: | ||||
5% 5/15/15 | 2,125 | 2,395 | ||
5% 5/15/16 | 2,360 | 2,739 | ||
5% 5/15/17 | 2,805 | 3,309 | ||
Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission Svcs. Corp. Proj.) Series 2010, 5% 5/15/18 | 3,140 | 3,762 | ||
Lubbock Gen. Oblig. Series 2005, 5% 2/15/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,850 | 1,946 | ||
Lubbock Health Facilities Dev. Corp. Rev. (St. Joseph Health Sys. Proj.) Series 2008 B: | ||||
5% 7/1/17 | 2,800 | 3,171 | ||
5% 7/1/18 | 3,030 | 3,471 | ||
Mansfield Independent School District Series 2009, 4% 2/15/17 | 1,840 | 2,090 | ||
Matagorda County Navigation District No. 1 Poll. Cont. Rev. Bonds (AEP Texas Central Co. Proj.) Series 2008, 1.125%, tender 6/1/12 (b) | 2,525 | 2,527 | ||
Mission Econ. Dev. Corp. Solid Waste Disp. Rev. Bonds (Republic Svcs., Inc. Proj.) Series 2008 A, 1.05%, tender 1/3/12 (b) | 5,800 | 5,800 | ||
North Texas Tollway Auth. Rev.: | ||||
Bonds Series 2008 H2, 5%, tender 1/1/13 (b) | 5,000 | 5,204 | ||
Series 2010 B1, 3.2% 1/1/13 | 2,275 | 2,330 | ||
Northside Independent School District Bonds 1.5%, tender 8/1/12 (b) | 12,500 | 12,571 | ||
San Antonio Muni. Drainage Util. Sys. Rev. Series 2005, 5.25% 2/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,545 | 1,551 | ||
San Jacinto Cmnty. College District Series 2009: | ||||
5% 2/15/15 | 2,220 | 2,467 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
San Jacinto Cmnty. College District Series 2009: - continued | ||||
5% 2/15/15 (Escrowed to Maturity) | $ 280 | $ 318 | ||
5% 2/15/16 | 2,000 | 2,280 | ||
Southwest Higher Ed. Auth. Rev. (Southern Methodist Univ. Proj.) Series 2009, 5% 10/1/16 | 5,795 | 6,734 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Hosp. Rev. (Baylor Health Care Sys. Proj.) Series 2009, 5% 11/15/12 | 1,950 | 2,022 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Rev. (Christus Health Proj.) Series 2008 A, 5.75% 7/1/18 (Assured Guaranty Corp. Insured) | 4,685 | 5,112 | ||
Texas Gen. Oblig.: | ||||
Series 2011 B, 2% 8/1/12 (e) | 3,365 | 3,396 | ||
Series B, 0% 10/1/13 | 6,500 | 6,345 | ||
Texas Muni. Pwr. Agcy. Rev. Series 2010: | ||||
4% 9/1/14 | 1,000 | 1,071 | ||
5% 9/1/15 | 835 | 941 | ||
5% 9/1/16 | 750 | 864 | ||
Texas Pub. Fin. Auth. Rev. Series 2010 A, 5% 1/1/16 | 7,865 | 9,089 | ||
Texas Trans. Commission State Hwy. Fund Rev. Series 2007, 5% 4/1/12 | 4,000 | 4,046 | ||
Tomball Independent School District 5% 2/15/17 (Assured Guaranty Corp. Insured) | 1,105 | 1,304 | ||
Travis County Gen. Oblig. 5.25% 3/1/12 | 4,125 | 4,158 | ||
Trinity River Auth. Reg'l. Wastewtr. Sys. Rev. Series 2008, 5% 8/1/13 | 6,135 | 6,577 | ||
Univ. of North Texas Univ. Rev. Series A, 5% 4/15/14 | 1,000 | 1,097 | ||
Univ. of Texas Board of Regents Sys. Rev.: | ||||
Series 2003 B, 5% 8/15/33 (Pre-Refunded to 8/15/13 @ 100) | 15,000 | 16,094 | ||
Series 2010 B, 5% 8/15/21 | 1,800 | 2,277 | ||
| 235,996 | |||
Utah - 0.2% | ||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | ||||
0% 10/1/12 (AMBAC Insured) | 3,800 | 3,760 | ||
0% 10/1/13 (AMBAC Insured) | 3,760 | 3,652 | ||
| 7,412 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Vermont - 0.1% | ||||
Vermont Edl. & Health Bldg. Fin. Agcy. Rev. (Fletcher Allen Health Care Proj.) Series 2004 B, 5% 12/1/15 (FSA Insured) | $ 2,225 | $ 2,420 | ||
Virgin Islands - 0.1% | ||||
Virgin Islands Pub. Fin. Auth. Series 2009 B, 5% 10/1/15 | 5,000 | 5,458 | ||
Virginia - 0.4% | ||||
Amelia County Indl. Dev. Auth. Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) 3.375%, tender 4/1/13 (b)(e) | 5,900 | 6,041 | ||
Chesapeake Econ. Dev. Auth. Poll. Cont. Rev. Bonds (Elec. & Pwr. Co. Proj.) Series 2008 A, 3.6%, tender 2/1/13 (b) | 1,800 | 1,832 | ||
Louisa Indl. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. & Pwr. Co. Proj.) Series 2008 B, 5.375%, tender 12/2/13 (b) | 8,000 | 8,658 | ||
York County Econ. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. and Pwr. Co. Proj.) Series 2009 A, 4.05%, tender 5/1/14 (b) | 1,800 | 1,895 | ||
| 18,426 | |||
Washington - 1.7% | ||||
Energy Northwest Elec. Rev.: | ||||
(#3 Proj.) Series 2009 A, 5% 7/1/14 | 4,000 | 4,419 | ||
Series 2012 A, 5% 7/1/19 (a) | 30,000 | 36,063 | ||
King County Highline School District # 401 Series 2009: | ||||
5% 12/1/16 | 6,350 | 7,440 | ||
5% 12/1/17 | 2,950 | 3,533 | ||
Port of Seattle Passenger Facilities Charge Rev. Series 2010 B, 5% 12/1/16 (e) | 2,500 | 2,816 | ||
Port of Seattle Rev.: | ||||
Series 2001 D, 5.75% 11/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (e) | 3,640 | 3,766 | ||
Series 2010 C: | ||||
5% 2/1/16 (e) | 2,000 | 2,229 | ||
5% 2/1/17 (e) | 2,500 | 2,834 | ||
Seattle Muni. Lt. & Pwr. Rev. Series 2010 B, 5% 2/1/17 | 2,000 | 2,378 | ||
Spokane County Wastewtr. Sys. Rev. Series 2009 A, 5% 12/1/15 | 1,710 | 1,961 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Washington - continued | ||||
Washington Health Care Facilities Auth. Rev. (MultiCare Health Sys. Proj.) Series 2010 A: | ||||
5% 8/15/13 | $ 2,000 | $ 2,105 | ||
5% 8/15/14 | 2,000 | 2,137 | ||
| 71,681 | |||
West Virginia - 0.3% | ||||
West Virginia Econ. Dev. Auth. Solid Waste Disp. Facilities Rev. Bonds Series 2011 A, 2%, tender 8/1/12 (b)(e) | 13,000 | 13,064 | ||
Wisconsin - 1.2% | ||||
Milwaukee County Arpt. Rev. Series 2010 B, 5% 12/1/15 (e) | 1,720 | 1,889 | ||
Wisconsin Gen. Oblig.: | ||||
Series 2005 1, 5% 5/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,325 | 7,183 | ||
Series 2009 C, 4% 5/1/14 | 3,365 | 3,624 | ||
Series 2010 1: | ||||
5% 5/1/14 | 5,750 | 6,326 | ||
5% 5/1/15 | 8,005 | 9,091 | ||
5% 5/1/16 | 10,000 | 11,702 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Agnesian HealthCare, Inc. Proj.) Series 2010, 5% 7/1/16 | 1,175 | 1,253 | ||
(Aurora Health Care, Inc. Proj.) Series 2010 A, 5% 4/15/17 | 1,500 | 1,658 | ||
(Marshfield Clinic Proj.) Series 2006 A, 5% 2/15/13 | 875 | 909 | ||
(Thedacare, Inc. Proj.) Series 2010: | ||||
4% 12/15/13 | 1,035 | 1,081 | ||
5% 12/15/15 | 1,105 | 1,214 | ||
5% 12/15/16 | 1,440 | 1,604 | ||
5% 12/15/17 | 1,540 | 1,735 | ||
| 49,269 | |||
TOTAL MUNICIPAL BONDS (Cost $3,389,805) |
|
Municipal Notes - 0.3% | |||
|
|
|
|
New York - 0.3% | |||
Suffolk County Gen. Oblig. TAN Series 2012 II, 2% 7/12/12 (a) | 11,800 |
| |
Money Market Funds - 3.9% | |||
Shares | Value (000s) | ||
Fidelity Municipal Cash Central Fund, 0.10% (c)(d) | 160,467,900 | $ 160,468 | |
TOTAL INVESTMENT PORTFOLIO - 89.8% (Cost $3,562,129) | 3,698,535 | ||
NET OTHER ASSETS (LIABILITIES) - 10.2% | 418,864 | ||
NET ASSETS - 100% | $ 4,117,399 |
Security Type Abbreviations | ||
TAN | - | TAX ANTICIPATION NOTE |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(c) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(d) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Municipal Cash Central Fund | $ 296 |
Other Information |
The following is a summary of the inputs used, as of December 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Municipal Securities | $ 3,538,067 | $ - | $ 3,538,067 | $ - |
Money Market Funds | 160,468 | 160,468 | - | - |
Total Investments in Securities: | $ 3,698,535 | $ 160,468 | $ 3,538,067 | $ - |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 34.0% |
Electric Utilities | 13.4% |
Special Tax | 10.5% |
Health Care | 9.8% |
Transportation | 5.0% |
Others (Individually Less Than 5%) | 12.9% |
Short-Term Investments and Net | 14.4% |
| 100.0% |
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, 2011 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $3,401,661) | $ 3,538,067 |
|
Fidelity Central Funds (cost $160,468) | 160,468 |
|
Total Investments (cost $3,562,129) |
| $ 3,698,535 |
Cash |
| 422,132 |
Receivable for fund shares sold | 11,498 | |
Interest receivable | 39,750 | |
Distributions receivable from Fidelity Central Funds | 14 | |
Prepaid expenses | 9 | |
Other receivables | 16 | |
Total assets | 4,171,954 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 2,900 | |
Delayed delivery | 45,015 | |
Payable for fund shares redeemed | 2,514 | |
Distributions payable | 1,964 | |
Accrued management fee | 1,244 | |
Distribution and service plan fees payable | 137 | |
Other affiliated payables | 736 | |
Other payables and accrued expenses | 45 | |
Total liabilities | 54,555 | |
|
|
|
Net Assets | $ 4,117,399 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,983,909 | |
Distributions in excess of net investment income | (2,916) | |
Net unrealized appreciation (depreciation) on investments | 136,406 | |
Net Assets | $ 4,117,399 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2011 | |
|
|
|
Calculation of Maximum Offering Price | $ 10.83 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.83) | $ 11.14 | |
Class T: | $ 10.81 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.81) | $ 11.12 | |
Class B: | $ 10.82 | |
|
|
|
Class C: | $ 10.81 | |
|
|
|
Short-Intermediate Municipal Income: | $ 10.81 | |
|
|
|
Institutional Class: | $ 10.81 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended December 31, 2011 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 99,904 |
Income from Fidelity Central Funds |
| 296 |
Total income |
| 100,200 |
|
|
|
Expenses | ||
Management fee | $ 14,009 | |
Transfer agent fees | 3,610 | |
Distribution and service plan fees | 1,353 | |
Accounting fees and expenses | 611 | |
Custodian fees and expenses | 43 | |
Independent trustees' compensation | 14 | |
Registration fees | 206 | |
Audit | 54 | |
Legal | 11 | |
Miscellaneous | 40 | |
Total expenses before reductions | 19,951 | |
Expense reductions | (91) | 19,860 |
Net investment income (loss) | 80,340 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 2,116 | |
Change in net unrealized appreciation (depreciation) on investment securities | 76,652 | |
Net gain (loss) | 78,768 | |
Net increase (decrease) in net assets resulting from operations | $ 159,108 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 80,340 | $ 87,857 |
Net realized gain (loss) | 2,116 | 4,561 |
Change in net unrealized appreciation (depreciation) | 76,652 | (16,570) |
Net increase (decrease) in net assets resulting | 159,108 | 75,848 |
Distributions to shareholders from net investment income | (83,163) | (87,839) |
Distributions to shareholders from net realized gain | (2,965) | (1,494) |
Total distributions | (86,128) | (89,333) |
Share transactions - net increase (decrease) | 142,426 | 419,774 |
Redemption fees | 46 | 105 |
Total increase (decrease) in net assets | 215,452 | 406,394 |
|
|
|
Net Assets | ||
Beginning of period | 3,901,947 | 3,495,553 |
End of period (including distributions in excess of net investment income of $2,916 and distributions in excess of net investment income of $79, respectively) | $ 4,117,399 | $ 3,901,947 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.62 | $ 10.64 | $ 10.35 | $ 10.33 | $ 10.21 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .198 | .209 | .254 | .298 | .302 |
Net realized and unrealized gain (loss) | .225 | (.016) | .294 | .021 | .118 |
Total from investment operations | .423 | .193 | .548 | .319 | .420 |
Distributions from net investment income | (.205) | (.209) | (.258) | (.300) | (.300) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.213) | (.213) | (.258) | (.300) | (.300) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.83 | $ 10.62 | $ 10.64 | $ 10.35 | $ 10.33 |
Total Return A,B | 4.03% | 1.81% | 5.34% | 3.13% | 4.19% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | .77% | .78% | .79% | .75% | .71% |
Expenses net of fee waivers, if any | .77% | .78% | .78% | .75% | .71% |
Expenses net of all reductions | .77% | .77% | .78% | .72% | .64% |
Net investment income (loss) | 1.85% | 1.95% | 2.41% | 2.90% | 2.95% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 336 | $ 200 | $ 169 | $ 58 | $ 12 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 | $ 10.19 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .199 | .211 | .255 | .300 | .297 |
Net realized and unrealized gain (loss) | .226 | (.026) | .294 | .029 | .120 |
Total from investment operations | .425 | .185 | .549 | .329 | .417 |
Distributions from net investment income | (.207) | (.211) | (.259) | (.300) | (.297) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.215) | (.215) | (.259) | (.300) | (.297) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.81 | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 |
Total Return A,B | 4.05% | 1.74% | 5.36% | 3.24% | 4.17% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | .76% | .76% | .77% | .74% | .74% |
Expenses net of fee waivers, if any | .76% | .76% | .77% | .74% | .74% |
Expenses net of all reductions | .76% | .75% | .77% | .72% | .69% |
Net investment income (loss) | 1.86% | 1.97% | 2.42% | 2.90% | 2.91% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 26 | $ 24 | $ 23 | $ 15 | $ 10 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.61 | $ 10.64 | $ 10.35 | $ 10.32 | $ 10.20 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .128 | .139 | .186 | .230 | .228 |
Net realized and unrealized gain (loss) | .226 | (.026) | .293 | .029 | .121 |
Total from investment operations | .354 | .113 | .479 | .259 | .349 |
Distributions from net investment income | (.136) | (.139) | (.189) | (.230) | (.229) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.144) | (.143) | (.189) | (.230) | (.229) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.82 | $ 10.61 | $ 10.64 | $ 10.35 | $ 10.32 |
Total Return A,B | 3.36% | 1.06% | 4.66% | 2.54% | 3.47% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | 1.43% | 1.44% | 1.46% | 1.43% | 1.41% |
Expenses net of fee waivers, if any | 1.42% | 1.43% | 1.43% | 1.43% | 1.41% |
Expenses net of all reductions | 1.42% | 1.42% | 1.43% | 1.40% | 1.36% |
Net investment income (loss) | 1.19% | 1.30% | 1.77% | 2.22% | 2.23% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 2 | $ 2 | $ 3 | $ 2 | $ 1 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.60 | $ 10.63 | $ 10.33 | $ 10.31 | $ 10.19 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .117 | .129 | .175 | .220 | .219 |
Net realized and unrealized gain (loss) | .226 | (.026) | .303 | .020 | .120 |
Total from investment operations | .343 | .103 | .478 | .240 | .339 |
Distributions from net investment income | (.125) | (.129) | (.178) | (.221) | (.219) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.133) | (.133) | (.178) | (.221) | (.219) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.81 | $ 10.60 | $ 10.63 | $ 10.33 | $ 10.31 |
Total Return A,B | 3.25% | .96% | 4.66% | 2.35% | 3.37% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | 1.53% | 1.52% | 1.53% | 1.50% | 1.51% |
Expenses net of fee waivers, if any | 1.53% | 1.52% | 1.53% | 1.50% | 1.51% |
Expenses net of all reductions | 1.52% | 1.52% | 1.53% | 1.48% | 1.45% |
Net investment income (loss) | 1.09% | 1.20% | 1.67% | 2.14% | 2.14% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 79 | $ 77 | $ 56 | $ 20 | $ 6 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Short-Intermediate Municipal Income
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 | $ 10.19 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .228 | .240 | .284 | .326 | .323 |
Net realized and unrealized gain (loss) | .227 | (.026) | .293 | .029 | .120 |
Total from investment operations | .455 | .214 | .577 | .355 | .443 |
Distributions from net investment income | (.237) | (.240) | (.287) | (.326) | (.323) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.245) | (.244) | (.287) | (.326) | (.323) |
Redemption fees added to paid in capital B | - F | - F | - F | .001 | - F |
Net asset value, end of period | $ 10.81 | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 |
Total Return A | 4.34% | 2.02% | 5.64% | 3.50% | 4.43% |
Ratios to Average Net Assets C,E |
|
|
|
|
|
Expenses before reductions | .48% | .48% | .50% | .49% | .49% |
Expenses net of fee waivers, if any | .48% | .48% | .50% | .49% | .49% |
Expenses net of all reductions | .48% | .48% | .50% | .47% | .43% |
Net investment income (loss) | 2.14% | 2.24% | 2.69% | 3.15% | 3.17% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,523 | $ 3,456 | $ 3,153 | $ 1,870 | $ 1,650 |
Portfolio turnover rate D | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.61 | $ 10.63 | $ 10.34 | $ 10.32 | $ 10.20 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .224 | .235 | .281 | .321 | .320 |
Net realized and unrealized gain (loss) | .216 | (.015) | .293 | .022 | .120 |
Total from investment operations | .440 | .220 | .574 | .343 | .440 |
Distributions from net investment income | (.232) | (.236) | (.284) | (.324) | (.320) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.240) | (.240) | (.284) | (.324) | (.320) |
Redemption fees added to paid in capital B | - F | - F | - F | .001 | - F |
Net asset value, end of period | $ 10.81 | $ 10.61 | $ 10.63 | $ 10.34 | $ 10.32 |
Total Return A | 4.19% | 2.07% | 5.61% | 3.38% | 4.39% |
Ratios to Average Net Assets C,E |
|
|
|
|
|
Expenses before reductions | .52% | .53% | .55% | .51% | .52% |
Expenses net of fee waivers, if any | .52% | .53% | .53% | .51% | .52% |
Expenses net of all reductions | .52% | .52% | .53% | .49% | .45% |
Net investment income (loss) | 2.09% | 2.20% | 2.66% | 3.13% | 3.14% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 152 | $ 142 | $ 92 | $ 32 | $ 5 |
Portfolio turnover rate D | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2011
(Amounts in thousands except percentages)
1. Organization.
Fidelity Short-Intermediate Municipal Income Fund (the Fund) is a fund of Fidelity Municipal Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Short-Intermediate Municipal Income and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments by existing shareholders. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
Annual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2011 for the Fund's investments, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For municipal securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Security Valuation - continued
pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially 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. As of December 31, 2011, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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 deferred trustees compensation.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the IRS will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 139,113 |
Gross unrealized depreciation | (2,707) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 136,406 |
|
|
Tax Cost | $ 3,562,129 |
The tax-based components of distributable earnings as of period end were as follows:
Net unrealized appreciation (depreciation) | $ 136,406 |
The tax character of distributions paid was as follows:
| December 31, 2011 | December 31, 2010 |
Tax-exempt Income | $ 83,163 | $ 87,839 |
Long-term Capital Gains | 2,965 | 1,494 |
Total | $ 86,128 | $ 89,333 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
4. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. 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 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $828,471 and $771,247, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and an annualized group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of 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, total fees and amounts retained by FDC were as follows:
Annual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 556 | $ 59 |
Class T | -% | .25% | 61 | - |
Class B | .65% | .25% | 19 | 14 |
Class C | .75% | .25% | 717 | 207 |
|
|
| $ 1,353 | $ 280 |
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 3.00% to 1.00% for Class B, 1.00% for Class C, .75% or .50% for certain purchases of Class A shares (.75% prior to February 18, 2011) and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 69 |
Class T | 2 |
Class B* | 8 |
Class C* | 26 |
| $ 105 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and servicing agent for the Fund's Class A, Class T, Class B, Class C, 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, to perform the transfer agency, dividend disbursing, and shareholder servicing functions. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees - continued
| Amount | % of |
Class A | $ 288 | .13 |
Class T | 29 | .12 |
Class B | 3 | .14 |
Class C | 102 | .14 |
Short-Intermediate Municipal Income | 3,002 | .09 |
Institutional Class | 186 | .13 |
| $ 3,610 |
|
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $12 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Annual Report
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | .78% | $ 1 |
Class T | .78% | -* |
Class B | 1.43% | -* |
Class C | 1.53% | 6 |
Institutional Class | .53% | 3 |
|
| $ 10 |
* Amount of reimbursement for Class T totaled twenty-three dollars; Class B totaled one hundred seventy-five dollars.
** Effective March 1, 2011 the expense limitations were eliminated.
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $41 and $40, respectively.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | 2011 | 2010 |
From net investment income |
|
|
Class A | $ 4,211 | $ 4,283 |
Class T | 467 | 469 |
Class B | 27 | 37 |
Class C | 838 | 856 |
Short-Intermediate Municipal Income | 74,599 | 79,576 |
Institutional Class | 3,021 | 2,618 |
Total | $ 83,163 | $ 87,839 |
From net realized gain |
|
|
Class A | $ 216 | $ 83 |
Class T | 19 | 9 |
Class B | 1 | 1 |
Class C | 57 | 29 |
Short-Intermediate Municipal Income | 2,565 | 1,318 |
Institutional Class | 107 | 54 |
Total | $ 2,965 | $ 1,494 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Years ended December 31, | 2011 | 2010 | 2011 | 2010 |
Class A |
|
|
|
|
Shares sold | 22,096 | 15,494 | $ 237,519 | $ 165,921 |
Reinvestment of distributions | 303 | 294 | 3,252 | 3,153 |
Shares redeemed | (10,223) | (12,806) | (109,361) | (137,046) |
Net increase (decrease) | 12,176 | 2,982 | $ 131,410 | $ 32,028 |
Class T |
|
|
|
|
Shares sold | 881 | 579 | $ 9,442 | $ 6,203 |
Reinvestment of distributions | 35 | 32 | 373 | 346 |
Shares redeemed | (774) | (500) | (8,240) | (5,341) |
Net increase (decrease) | 142 | 111 | $ 1,575 | $ 1,208 |
Class B |
|
|
|
|
Shares sold | 27 | 66 | $ 297 | $ 702 |
Reinvestment of distributions | 2 | 2 | 19 | 26 |
Shares redeemed | (114) | (117) | (1,225) | (1,248) |
Net increase (decrease) | (85) | (49) | $ (909) | $ (520) |
Class C |
|
|
|
|
Shares sold | 2,509 | 3,620 | $ 26,904 | $ 38,700 |
Reinvestment of distributions | 62 | 60 | 661 | 637 |
Shares redeemed | (2,549) | (1,682) | (27,188) | (17,979) |
Net increase (decrease) | 22 | 1,998 | $ 377 | $ 21,358 |
Short-Intermediate Municipal Income |
|
|
|
|
Shares sold | 106,091 | 146,127 | $ 1,133,522 | $ 1,562,445 |
Reinvestment of distributions | 5,180 | 5,652 | 55,411 | 60,463 |
Shares redeemed | (111,332) | (122,431) | (1,186,447) | (1,307,777) |
Net increase (decrease) | (61) | 29,348 | $ 2,486 | $ 315,131 |
Institutional Class |
|
|
|
|
Shares sold | 8,223 | 11,870 | $ 87,964 | $ 126,978 |
Reinvestment of distributions | 115 | 94 | 1,228 | 1,007 |
Shares redeemed | (7,651) | (7,242) | (81,705) | (77,416) |
Net increase (decrease) | 687 | 4,722 | $ 7,487 | $ 50,569 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Short-Intermediate Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Short-Intermediate Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity 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, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 15, 2012
Annual Report
Trustees and Officers
The Trustees 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 203 funds advised by FMR or an affiliate. Mr. Curvey oversees 429 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Kenneth L. Wolfe serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
Trustees and Officers - continued
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Abigail P. Johnson (50) | |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (76) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of Fidelity Investments Money Management, Inc. (2009-present), Director of Fidelity Research & Analysis Co. (2009-present) and Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
Annual Report
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Albert R. Gamper, Jr. (69) | |
| Year of Election or Appointment: 2006 Mr. Gamper is Vice Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2011-present). Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (60) | |
| Year of Election or Appointment: 2010 Mr. Gartland is a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-present) and is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (64) | |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Mr. Edward C. Johnson 3d or Ms. Abigail P. Johnson. |
Michael E. Kenneally (57) | |
| Year of Election or Appointment: 2009 Previously, Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity Fixed Income and Asset Allocation Funds (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of the Credit Suisse Funds (U.S. mutual funds, 2004-2008) and certain other closed-end funds (2004-2005) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (71) | |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, since 1998). Prior to his retirement, Mr. Keyes served as Chairman and Chief Executive Officer of Johnson Controls (automotive, building, and energy, 1998-2002) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (65) | |
| 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. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (72) | |
| Year of Election or Appointment: 2006 Mr. Wolfe is Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2008-present). Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Annual Report
Trustees and Officers - continued
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
John R. Hebble (53) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as President (2011-present), Treasurer, and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present), Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Christopher P. Sullivan (57) | |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Bond Funds. Mr. Sullivan also serves as President of Fidelity's Bond Division (2009-present). Mr. Sullivan is Executive Vice President of Fidelity Investments Money Management, Inc. (2009-present), and a Director of Fidelity Management & Research (U.K.) Inc. (2010-present). Previously, Mr. Sullivan served as Managing Director, Co-Head of U.S. Fixed Income at Goldman Sachs Asset Management (2001-2009). |
Christine J. Thompson (53) | |
| Year of Election or Appointment: 2010 Vice President of Fidelity's Bond Funds. Ms. Thompson also serves as Chief Investment Officer of FMR's Bond Group (2010-present) and is an employee of Fidelity Investments. Previously, Ms. Thompson served as Director of Municipal Bond Portfolio Managers (2002-2010). |
Scott C. Goebel (43) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as Secretary of Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); Secretary and CLO of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); employed by FMR LLC or an affiliate (2001-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
David J. Carter (38) | |
| Year of Election or Appointment: 2010 Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Carter also serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2005-present). |
Holly C. Laurent (57) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent also serves as AML Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present) and is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (53) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (44) | |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker also serves as Chief Compliance Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present). Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (50) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009). |
Joseph F. Zambello (54) | |
| Year of Election or Appointment: 2011 Deputy Treasurer of the Fidelity funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Stephanie J. Dorsey (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey also serves as Assistant Treasurer of other Fidelity funds (2010-present) and is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Adrien E. Deberghes (44) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Deberghes also serves as Vice President and Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II (2011-present), Deputy Treasurer of other Fidelity funds (2008-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Kenneth B. Robins (42) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds (2008-present; 2010-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Deputy Treasurer of the Fidelity funds (2005-2008) and Treasurer and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2006-2008). |
Gary W. Ryan (53) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Jonathan Davis (43) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of the Fidelity funds. Mr. Davis is also Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Annual Report
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended 12/31/2011, $2,116,359 or, if subsequently determined to be different, the net capital gain of such year.
During fiscal year ended 2011, 100% of the fund's income dividends was free from federal income tax, and 5.05% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2012 of amounts for use in preparing 2011 income tax returns.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Short-Intermediate Municipal Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Nominating of Governance, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2011 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has devoted increased resources to non-U.S. offices. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities which allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and enhancers. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools which permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading capabilities and resources which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers, with 35 new branches opening since 2010.
Annual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) rationalizing product lines through the mergers of six funds into other funds; (iii) continuing to migrate the Freedom Funds to dedicated lower cost underlying funds; (iv) obtaining shareholder approval to broaden the investment strategies for Fidelity Consumer Finance Portfolio, Fidelity Emerging Asia Fund, and Fidelity Environment and Alternative Energy Portfolio; (v) contractually agreeing to reduce the management fees and impose other expense limitations on Spartan 500 Index Fund and U.S. Bond Index Fund in connection with launching new institutional classes of these funds; (vi) changing the name, primary and supplemental benchmarks, and investment policies of Fidelity Global Strategies Fund to support the fund's flexible investment mandate and global orientation; and (vii) reducing the transfer agency account fee rates on certain accounts.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2010, the cumulative total returns of the retail class and Class C of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of the retail class and Class C show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Short-Intermediate Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the second quartile for all the periods shown. The Board also noted that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to improve the fund's below-benchmark performance. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 22% means that 78% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Annual Report
Fidelity Short-Intermediate Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2010.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current and historical total expense ratios of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the total expense ratio of each of Class B and the retail class ranked below its competitive median for 2010, the total expense ratio of Class T ranked equal to its competitive median for 2010, and the total expense ratio of each of Class A, Class C, and Institutional Class ranked above its competitive median for 2010. The Board considered that various factors, including 12b-1 fees and relatively higher other expenses in the case of small fund size, can affect total expense ratios. The Board noted that the funds and classes in the Total Mapped Group that have a similar sales load structure to Class A have a range of 12b-1 fees, and, when compared to a subset of funds with the same 12b-1 fee, Class A ranked below the median for 2010. The Board also noted that Institutional Class has a significantly lower investment minimum than certain funds and classes in the Total Mapped Group that have a similar sales load or 12b-1 fee structure and that, when compared to funds with the same or lower investment minimum, Institutional Class ranked below the median for 2010. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expense ratios of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable, although in some cases above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
Annual Report
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes; (vi) the reasons why certain expenses affect various funds and classes differently; (vii) Fidelity's transfer agent fees, expenses, and services and how the benefits of decreased costs and new efficiencies can be shared across all of the Fidelity funds; (viii) the reasons for and consequences of changes to certain product lines compared to competitors; (ix) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (x) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASTM-UANN-0212 1.796655.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Short-Intermediate
Municipal Income
Fund - Institutional Class
Annual Report
December 31, 2011
Institutional Class is a class of
Fidelity® Short-Intermediate
Municipal Income Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fundperformance and strategy. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Abigail_P_Johnson)
Dear Shareholder:
The investment environment in 2011 was characterized by a number of headline events, most notably the early-August decision by Standard & Poor's to lower the long-term sovereign credit rating of the United States. The historic downgrade followed a stalemate in which Congress struggled to address the debt ceiling, heightening investor anxiety and within a matter of days wiping out a solid first-half advance that was largely driven by encouraging corporate earnings and economic activity. At the same time, investors were becoming increasingly concerned about the sovereign debt crisis in Europe and its potential to derail the U.S. economy, as well as persistently high unemployment. The combination of these factors set off a wave of unusually high volatility that lasted until late in the year, with wide weekly, and even daily, swings fueled largely by the latest developments coming out of the eurozone.
Against this backdrop, equities struggled to gain any significant momentum in the second half, and finished 2011 with only a modest gain, due in part to a strong October. High-grade bonds, meanwhile, benefited from periodic flights to quality and turned in a solid performance, paced by municipal issues and Treasuries.
Financial markets are difficult to predict, of course, but you can help put the odds in your favor by following these time-tested investment principles. One of the basic tenets is to invest according to your time horizon. For long-term investors, riding out the markets' inevitable ups and downs has proven much more effective than making decisions based on short-term developments. If your goal is approaching, you can also benefit from patience and restraint, rather than attempting to time the market.
Asset allocation is another principle to manage risk. As you spread your portfolio among the asset classes, be sure to consider your time horizon, risk tolerance and investment objectives. After deciding on a suitable allocation strategy, make sure your portfolio is adequately diversified, with exposure to stocks of small-, mid- and large-cap companies in a range of sectors, for example.
Lastly, investing a certain amount of money on a regular basis - a principle known as dollar-cost averaging - can help lower the average cost of your purchases, while also giving you the discipline to avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to learn more by visiting us on the Internet, dropping by one of our Investor Centers or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Abigail P. Johnson
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2011 | Past 1 | Past 5 | Past 10 |
Institutional Class A | 4.19% | 3.92% | 3.49% |
A The initial offering of Institutional Class shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Fidelity® Short-Intermediate Municipal Income Fund, the original class of the fund.
$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, 2001. The chart shows how the value of your investment would have changed, and also shows how the Barclays Capital® Municipal Bond Index performed over the same period. The initial offering of Institutional Class took place on July 23, 2003. See above for additional information regarding the performance of Institutional Class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds generated a double-digit return for the 12 months ending December 31, 2011, ranking them as one of the year's best-performing asset classes. The Barclays Capital® Municipal Bond Index - a measure of more than 46,000 tax-exempt investment-grade fixed-rate bonds - advanced 10.70%, significantly outpacing the 7.84% gain of the taxable investment-grade debt market, as measured by the Barclays Capital® U.S. Aggregate Bond Index. In early 2011, muni prices fell due to inflation concern, uncertain tax policy, anticipated heavy supply and the lingering effects of late-2010 headlines forecasting an unprecedented wave of issuer defaults. But in February, munis began a virtually uninterrupted rally, as demand surged, supply was muted, widespread defaults didn't materialize and the fiscal health of issuers improved. During the summer, a dimming U.S. economic outlook, unresolved debt woes in Europe and legislative wrangling over the U.S. debt ceiling fueled further demand for munis, as U.S. investors sought haven against global economic uncertainty. The muni sector lost modest ground in October, due in part to the ongoing challenging credit environment and various proposals out of Washington, D.C., that could potentially limit munis' tax-free benefits. Those losses were quickly erased, and munis posted a strong gain when supply was quite limited through period end.
Comments from Mark Sommer, Lead Portfolio Manager of Fidelity Advisor® Short-Intermediate Municipal Income Fund: For the year, the fund's Institutional Class shares returned 4.19%, while the Barclays Capital 1-6 Year Municipal Bond Index rose 4.18%. The fund's yield-curve positioning and overweighting in investor-owned utilities (IOUs) and general obligation bonds (GOs) issued by the State of California bolstered the fund's relative performance. In terms of yield-curve positioning, overweighting bonds in the seven- to nine-year range boosted performance, because they outpaced bonds in the two- to three-year range, in which the fund was underweighted. IOUs outpaced the index, because of their comparatively high yields and strong investor demand. California State GOs were some of the better-performing securities in the marketplace, due to muted supply of and strong demand for the bonds. Detracting from the fund's relative performance was its underweighting in Puerto Rico bonds, which rallied strongly in the second half of the period and benefited from renewed demand for these triple-tax-exempt, higher-yielding bonds, as well as in improving sentiment about the territory's credit outlook.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2011 to December 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | .77% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.10 | $ 3.92 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.32 | $ 3.92 |
Class T | .76% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.20 | $ 3.87 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.37 | $ 3.87 |
Class B | 1.42% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.80 | $ 7.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class C | 1.52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.30 | $ 7.72 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.54 | $ 7.73 |
Short-Intermediate Municipal Income | .48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,021.70 | $ 2.45 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Institutional Class | .52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.50 | $ 2.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.58 | $ 2.65 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Five States as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
New York | 13.3 | 16.3 |
California | 10.6 | 8.9 |
Illinois | 7.5 | 7.7 |
Florida | 7.0 | 7.0 |
Texas | 5.7 | 6.1 |
Top Five Sectors as of December 31, 2011 | ||
| % of fund's | % of fund's net assets |
General Obligations | 34.0 | 33.3 |
Electric Utilities | 13.4 | 14.2 |
Special Tax | 10.5 | 12.6 |
Health Care | 9.8 | 10.7 |
Transportation | 5.0 | 4.9 |
Weighted Average Maturity as of December 31, 2011 | ||
|
| 6 months ago |
Years | 3.3 | 3.1 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2011 | ||
|
| 6 months ago |
Years | 2.8 | 2.7 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-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. Duration takes into account any call or put option embedded in the bonds. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2011 | As of June 30, 2011 | ||||||
![]() | AAA 6.4% |
| ![]() | AAA 9.7% |
| ||
![]() | AA,A 71.5% |
| ![]() | AA,A 72.5% |
| ||
![]() | BBB 5.5% |
| ![]() | BBB 5.3% |
| ||
![]() | BB and Below 0.1% |
| ![]() | BB and Below 0.1% |
| ||
![]() | Not Rated 2.1% |
| ![]() | Not Rated 1.3% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Investments December 31, 2011
Showing Percentage of Net Assets
Municipal Bonds - 85.6% | ||||
| Principal Amount (000s) | Value (000s) | ||
Alabama - 0.5% | ||||
Alabama 21st Century Auth. Tobacco Settlement Rev. Series 2001, 5.75% 12/1/15 | $ 1,000 | $ 1,012 | ||
Health Care Auth. for Baptist Health Bonds Series 2009 A, 6.125%, tender 5/15/12 (b) | 4,000 | 4,055 | ||
Jefferson County Swr. Rev. Series 2002 B, 5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) | 2,070 | 2,116 | ||
Mobile Indl. Dev. Board Poll. Cont. Rev. Bonds: | ||||
(Alabama Pwr. Co. Barry Plant Proj.) Series 2007 A, 4.75%, tender 3/19/12 (b) | 8,240 | 8,309 | ||
Series 2007 B, 4.875%, tender 3/19/13 (b) | 1,715 | 1,798 | ||
Pell City Spl. Care Facilities Rev. (Noland Health Svcs., Inc. Proj.) Series 2007 A, 5% 12/1/12 | 750 | 764 | ||
Univ. of Alabama at Birmingham Hosp. Rev. Series 2008 A, 5% 9/1/13 | 1,175 | 1,245 | ||
| 19,299 | |||
Arizona - 3.4% | ||||
Arizona Ctfs. of Partnership Series 2010 A: | ||||
5% 10/1/14 (FSA Insured) | 5,000 | 5,455 | ||
5% 10/1/16 (FSA Insured) | 13,000 | 14,843 | ||
Arizona Health Facilities Auth. Rev. (Banner Health Sys. Proj.): | ||||
Series 2008 A, 5% 1/1/13 | 2,000 | 2,076 | ||
Series 2008 D: | ||||
5% 1/1/13 | 3,250 | 3,374 | ||
5% 1/1/14 | 2,000 | 2,137 | ||
Arizona School Facilities Board Ctfs. of Prtn.: | ||||
Series 2004 B, 5.25% 9/1/15 (FSA Insured) | 6,470 | 7,002 | ||
Series 2005 A2, 5% 9/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 11,000 | 12,112 | ||
Series 2008: | ||||
5.5% 9/1/13 | 18,780 | 20,193 | ||
5.5% 9/1/16 | 1,385 | 1,592 | ||
Series A, 5% 9/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,280 | 3,374 | ||
Arizona Wtr. Infrastructure Fin. Auth. Rev. Series 2009 A: | ||||
5% 10/1/18 | 1,000 | 1,237 | ||
5% 10/1/20 | 5,180 | 6,389 | ||
Coconino County Poll. Cont. Corp. Rev. Bonds (Arizona Pub. Svc. Co. Navajo Proj.) Series 2009 A, 5.5%, tender 6/1/14 (b) | 6,000 | 6,489 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Arizona - continued | ||||
Maricopa County Poll. Cont. Rev. Bonds (Arizona Pub. Svc. Co. Palo Verde Proj.) Series 2009 A, 6%, tender 5/1/14 (b) | $ 4,800 | $ 5,232 | ||
Mesa Hwy. Proj. Advancement Series 2011 A: | ||||
5% 7/1/17 | 12,085 | 13,583 | ||
5% 7/1/18 | 5,200 | 5,824 | ||
Phoenix Civic Impt. Corp. Excise Tax Rev. Series 2003 A, 5% 7/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 750 | 767 | ||
Phoenix Civic Impt. Corp. Wtr. Sys. Rev.: | ||||
Series 2009 A, 5% 7/1/15 | 5,835 | 6,640 | ||
Series 2009 B, 5% 7/1/16 | 5,090 | 5,938 | ||
Pima County Swr. Sys. Rev. Series 2011 B, 5% 7/1/19 | 3,000 | 3,584 | ||
Tucson Gen. Oblig. Series 2005, 5% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,250 | 1,403 | ||
Tucson Wtr. Rev. Series 2001 A, 5% 7/1/15 (FGIC Insured) | 1,645 | 1,754 | ||
Univ. Med. Ctr. Corp. Hosp. Rev. Series 2011: | ||||
5% 7/1/16 | 3,055 | 3,333 | ||
5% 7/1/17 | 3,315 | 3,625 | ||
5% 7/1/18 | 3,365 | 3,670 | ||
| 141,626 | |||
California - 10.6% | ||||
California Dept. of Wtr. Resources Pwr. Supply Rev.: | ||||
Series 2002 A, 5.25% 5/1/12 | 6,000 | 6,098 | ||
Series 2010 L, 5% 5/1/17 | 12,000 | 14,358 | ||
Series 2010 M, 5% 5/1/16 | 8,000 | 9,358 | ||
California Econ. Recovery: | ||||
Bonds Series B, 5%, tender 7/1/14 (b) | 5,000 | 5,494 | ||
Series 2004 A, 5.25% 7/1/12 | 6,010 | 6,154 | ||
Series 2009 A: | ||||
5% 7/1/15 | 3,660 | 4,027 | ||
5% 7/1/15 (Pre-Refunded to 7/1/14 @ 100) | 2,540 | 2,822 | ||
5.25% 7/1/13 (Escrowed to Maturity) | 1,185 | 1,272 | ||
5.25% 7/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,255 | 1,343 | ||
5.25% 7/1/14 | 1,780 | 1,976 | ||
5.25% 7/1/14 (Escrowed to Maturity) | 520 | 581 | ||
California Gen. Oblig.: | ||||
5% 2/1/12 | 1,650 | 1,656 | ||
5% 3/1/12 | 15,000 | 15,109 | ||
5% 9/1/12 | 1,700 | 1,751 | ||
5% 10/1/12 | 12,600 | 13,026 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Gen. Oblig.: - continued | ||||
5% 11/1/13 | $ 9,060 | $ 9,767 | ||
5% 9/1/18 | 7,500 | 8,931 | ||
5% 9/1/19 | 20,000 | 23,941 | ||
5% 9/1/20 | 20,000 | 23,886 | ||
California Health Facilities Fing. Auth. Rev.: | ||||
(Catholic Healthcare West Proj.) Series 2008 H, 5.125% 7/1/22 | 2,495 | 2,663 | ||
(Children's Hosp. of Orange County Proj.) Series 2009 A, 5% 11/1/13 | 1,100 | 1,161 | ||
(Sutter Health Proj.) Series 2008 A, 5% 8/15/12 | 1,325 | 1,361 | ||
Bonds: | ||||
(Catholic Healthcare West Proj.): | ||||
Series 2009 D, 5%, tender 7/1/14 (b) | 2,900 | 3,132 | ||
Series 2009 F, 5%, tender 7/1/14 (b) | 3,200 | 3,455 | ||
(St. Joseph Health Sys. Proj.) Series 2009 C, 5%, tender 10/16/14 (b) | 4,300 | 4,691 | ||
California Infrastructure & Econ. Dev. Bank Rev. Bonds (The J. Paul Getty Trust Proj.) Series 2007 A3, 2.25%, tender 4/1/12 (b) | 6,500 | 6,532 | ||
California Poll. Cont. Fing. Auth. Ctfs. of Prtn. (San Diego Gas & Elec. Co. Proj.) 5.9% 6/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 34,000 | 37,915 | ||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. Bonds: | ||||
(Republic Svcs., Inc. Proj.) Series 2010 A, 1.2%, tender 2/1/12 (b)(e) | 2,400 | 2,401 | ||
(Waste Mgmt., Inc. Proj.) Series 2003 A, 5%, tender 5/1/13 (b)(e) | 2,300 | 2,407 | ||
California Pub. Works Board Lease Rev.: | ||||
(Dept. of Corrections & Rehab. Proj.) Series 2011 C, 5% 10/1/18 | 1,750 | 2,002 | ||
(Univ. Proj.) Series 2011 B: | ||||
5% 10/1/18 | 2,740 | 3,162 | ||
5% 10/1/19 | 1,490 | 1,712 | ||
(Various Cap. Projects) Series 2011 A: | ||||
5% 10/1/18 | 6,475 | 7,408 | ||
5% 10/1/19 | 5,000 | 5,712 | ||
5% 10/1/20 | 2,525 | 2,857 | ||
(Various Judicial Council Projects) Series 2011 D, 5% 12/1/19 | 4,100 | 4,648 | ||
Series 2009 J, 5% 11/1/17 | 2,300 | 2,607 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Pub. Works Board Lease Rev.: - continued | ||||
Series 2010 A: | ||||
5% 3/1/16 | $ 2,000 | $ 2,264 | ||
5% 3/1/17 | 5,405 | 6,049 | ||
California State Univ. Rev. Series 2007 C, 5% 11/1/13 (FSA Insured) | 1,335 | 1,444 | ||
California Statewide Cmntys. Dev. Auth. Rev. (State of California Proposition 1A Receivables Prog.) Series 2009: | ||||
4% 6/15/13 | 1,000 | 1,045 | ||
5% 6/15/13 | 16,650 | 17,642 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: | ||||
Series 2003 B: | ||||
5.5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) | 2,000 | 2,140 | ||
5.625% 6/1/38 (Pre-Refunded to 6/1/13 @ 100) | 3,030 | 3,247 | ||
Series 2007 A1, 5% 6/1/12 | 2,570 | 2,593 | ||
Los Angeles County Metropolitan Trans. Auth. Sales Tax Rev.: | ||||
Series 2009 A, 5% 7/1/13 | 4,155 | 4,437 | ||
Series 2009 B, 5% 7/1/17 | 12,905 | 15,359 | ||
Los Angeles County Pub. Works Fing. Auth. Lease Rev. Series 2010 A, 5% 8/1/17 | 5,000 | 5,784 | ||
Los Angeles Gen. Oblig. Series 2011 B, 5% 9/1/18 | 20,960 | 25,398 | ||
Los Angeles Unified School District Series 2009 KRY, 5% 7/1/13 | 10,740 | 11,468 | ||
Los Angeles Unified School District Ctfs. of Prtn. (Multiple Properties Proj.) Series 2010 A: | ||||
5% 12/1/16 | 2,025 | 2,264 | ||
5% 12/1/17 | 9,790 | 11,063 | ||
Los Angeles Wastewtr. Sys. Rev. Series 2009 A, 5% 6/1/15 | 12,240 | 13,915 | ||
Monterey County Pub. Impt. Corp. Ctfs. of Prtn. (Refing. Proj.) Series 2009, 5% 8/1/17 (FSA Insured) | 2,130 | 2,447 | ||
Newport Beach Rev. Bonds (Hoag Memorial Hosp. Presbyterian Proj.) Series 2009 E, 5%, tender 2/7/13 (b) | 2,500 | 2,615 | ||
Northern California Pwr. Agcy. Rev.: | ||||
(Geothermal #3 Proj.) Series 2009 A: | ||||
5% 7/1/13 | 1,020 | 1,085 | ||
5% 7/1/14 | 1,120 | 1,224 | ||
5% 7/1/15 | 2,170 | 2,440 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Northern California Pwr. Agcy. Rev.: - continued | ||||
(Hydroelectric #1 Proj.) Series 2010 A: | ||||
4% 7/1/15 | $ 2,000 | $ 2,177 | ||
5% 7/1/18 | 2,000 | 2,392 | ||
Poway Unified School District Pub. Fing. Auth. Lease Rev. Bonds Series 2008 B, 0%, tender 12/1/14 (FSA Insured) (b) | 7,115 | 6,681 | ||
Sacramento Muni. Util. District Elec. Rev. Series 2011 X, 5% 8/15/21 | 4,000 | 4,827 | ||
Sacramento Pwr. Auth. Cogeneration Proj. Rev. Series 2005 A, 5% 7/1/18 (AMBAC Insured) | 2,890 | 3,067 | ||
San Bernardino County Ctfs. of Prtn. (Arrowhead Proj.) Series 2009 A: | ||||
5% 8/1/16 | 5,450 | 5,971 | ||
5% 8/1/18 | 8,000 | 8,983 | ||
San Diego Cmnty. College District Series 2007, 0% 8/1/16 (FSA Insured) | 1,160 | 1,040 | ||
San Diego Pub. Facilities Fing. Auth. Swr. Rev.: | ||||
Series 2009 A: | ||||
5% 5/15/13 | 5,415 | 5,753 | ||
5% 5/15/15 | 1,845 | 2,085 | ||
Series 2009 B, 5% 5/15/14 | 7,000 | 7,679 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,600 | 3,595 | ||
| 437,549 | |||
Colorado - 0.2% | ||||
Colorado Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys./Sunbelt Proj.) Series 2006 F: | ||||
5% 11/15/12 | 380 | 394 | ||
5% 11/15/12 (Escrowed to Maturity) | 845 | 879 | ||
Bonds (Catholic Health Initiatives Proj.) Series 2008 C4, 4%, tender 11/12/15 (b) | 4,200 | 4,588 | ||
Univ. of Colorado Enterprise Sys. Rev. Series 2009 A, 5% 6/1/17 | 500 | 598 | ||
| 6,459 | |||
Connecticut - 2.3% | ||||
Connecticut Dev. Auth. Poll. Cont. Rev. Bonds (Connecticut Lt. & Pwr. Co. Proj.) Series 1996 A, 1.25%, tender 4/2/12 (b)(e) | 27,000 | 27,004 | ||
Connecticut Gen. Oblig. (Econ. Recovery Proj.) Series 2009 A, 5% 1/1/15 | 29,500 | 33,236 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Connecticut - continued | ||||
Connecticut Spl. Tax Oblig. Trans. Infrastructure Rev.: | ||||
Series 1998 A, 5.5% 10/1/13 (FGIC Insured) | $ 4,300 | $ 4,663 | ||
Series 2009 1: | ||||
5% 2/1/14 | 2,500 | 2,723 | ||
5% 2/1/15 | 11,995 | 13,540 | ||
Series 2011 A, 5% 12/1/18 | 5,575 | 6,838 | ||
Connecticut Transmission Muni. Elec. Energy Bonds Series 2011 A, 0.95%, tender 5/15/12 (b) | 5,900 | 5,901 | ||
Hartford Gen. Oblig. Series A, 5% 8/15/12 (Assured Guaranty Corp. Insured) | 1,000 | 1,026 | ||
| 94,931 | |||
Delaware - 0.1% | ||||
Delaware Econ. Dev. Auth. Rev. Bonds (Delmarva Pwr. & Lt. Co. Proj.) Series 2001 C, 0.75%, tender 6/1/12 (b) | 5,500 | 5,502 | ||
District Of Columbia - 0.6% | ||||
District of Columbia Gen. Oblig.: | ||||
Series 2007 B, 5% 6/1/16 (AMBAC Insured) | 3,555 | 4,113 | ||
Series B, 0% 6/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,600 | 3,581 | ||
District of Columbia Income Tax Rev. Series 2009 C, 5% 12/1/13 | 5,500 | 5,971 | ||
District of Columbia Rev. (Medlantic/Helix Proj.) Series 1998 C, 5% 8/15/15 (FSA Insured) | 1,500 | 1,640 | ||
District of Columbia Univ. Rev. Bonds (Georgetown Univ. Proj.) Series 2001 B, 4.7%, tender 4/1/18 (b) | 8,500 | 9,506 | ||
Washington DC Metropolitan Transit Auth. Rev. Series 2009 A, 5% 7/1/14 | 1,000 | 1,099 | ||
| 25,910 | |||
Florida - 7.0% | ||||
Alachua County Health Facilities Auth. Health Facilities Rev. (Shands Teaching Hospitals & Clinics, Inc. Proj.) Series 2010 B: | ||||
5% 12/1/14 | 4,000 | 4,322 | ||
5% 12/1/15 | 4,395 | 4,791 | ||
Broward County School Board Ctfs. of Prtn. Series 2008 A, 5% 7/1/15 (FSA Insured) | 5,495 | 6,036 | ||
Citizens Property Ins. Corp. Series 2010 A1, 5% 6/1/15 (FSA Insured) | 14,000 | 15,231 | ||
Clay County Infrastructure Sales Surtax Rev. 5% 10/1/15 (Assured Guaranty Corp. Insured) | 7,745 | 8,575 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Clearwater Wtr. and Swr. Rev.: | ||||
Series 2009 B, 5% 12/1/14 | $ 2,000 | $ 2,215 | ||
Series 2011: | ||||
4% 12/1/16 | 1,265 | 1,410 | ||
5% 12/1/17 | 1,685 | 1,995 | ||
5% 12/1/18 | 685 | 816 | ||
5% 12/1/19 | 1,820 | 2,195 | ||
5% 12/1/20 | 1,000 | 1,216 | ||
Collier County Indl. Dev. Auth. Healthcare Facilities Rev. (NCH Healthcare Sys. Proj.) Series 2011: | ||||
5% 10/1/14 | 1,355 | 1,461 | ||
5% 10/1/16 | 1,530 | 1,665 | ||
5% 10/1/17 | 1,455 | 1,586 | ||
Escambia City Health Facilities Auth. Rev. (Ascension Health Cr. Group Proj.) Series 2003 A, 5.25% 11/15/13 | 4,265 | 4,626 | ||
Escambia County Poll. Cont. Rev. Bonds (Gulf Pwr. Co. Proj.) Series 2003, 1.75%, tender 6/15/12 (b) | 1,500 | 1,506 | ||
Florida Board of Ed. Series 2005 B, 5% 1/1/18 | 21,080 | 23,788 | ||
Florida Board of Ed. Lottery Rev. Series 2011 A, 5% 7/1/20 | 8,600 | 10,478 | ||
Florida Board of Ed. Pub. Ed. Cap. Outlay: | ||||
Series 2009 C, 5% 6/1/20 | 3,625 | 4,452 | ||
Series 2009 D, 5.5% 6/1/16 | 7,910 | 9,421 | ||
Florida Gen. Oblig. (Dept. of Trans. Right-of-Way and Bridge Construction Proj.) Series 2005 B, 6.375% 7/1/13 | 8,020 | 8,713 | ||
Florida Hurricane Catastrophe Fund Fin. Corp. Rev. Series 2010 A, 5% 7/1/15 | 20,000 | 21,991 | ||
Greater Orlando Aviation Auth. Arpt. Facilities Rev. Series 2011 C: | ||||
5% 10/1/19 | 1,705 | 2,034 | ||
5% 10/1/20 | 1,000 | 1,199 | ||
Highlands County Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys./Sunbelt, Inc. Prog.) Series 2009 E, 5% 11/15/15 | 2,345 | 2,624 | ||
Bonds (Adventist Health Sys./Sunbelt, Inc. Prog.): | ||||
Series 2002, 3.95%, tender 9/1/12 (b) | 16,650 | 17,016 | ||
Series 2008 A, 6.1%, tender 11/14/13 (b) | 1,000 | 1,093 | ||
Hillsborough County Indl. Dev. (H Lee Moffitt Cancer Ctr. Proj.) Series 2007 A, 5% 7/1/12 | 1,310 | 1,332 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (Tampa Elec. Co. Proj.): | ||||
Series 2006, 5%, tender 3/15/12 (AMBAC Insured) (b) | $ 1,500 | $ 1,513 | ||
Series 2007 B, 5.15%, tender 9/1/13 (b) | 1,750 | 1,851 | ||
Indian River County Wtr. & Swr. Rev.: | ||||
5% 9/1/15 | 1,000 | 1,127 | ||
5% 9/1/17 | 1,000 | 1,180 | ||
Jacksonville Elec. Auth. Elec. Sys. Rev. Series 2009 B, 5% 10/1/12 | 7,350 | 7,599 | ||
JEA Wtr. & Swr. Sys. Rev. Series 2010 D, 5% 10/1/21 | 1,945 | 2,368 | ||
Kissimmee Util. Auth. Elec. Sys. Rev.: | ||||
Series 2003: | ||||
5.25% 10/1/14 | 775 | 856 | ||
5.25% 10/1/15 | 3,525 | 3,997 | ||
Series 2011, 2% 10/1/12 | 2,195 | 2,218 | ||
Lakeland Hosp. Sys. Rev. Series 2011, 3% 11/15/12 | 1,000 | 1,013 | ||
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured) | 1,980 | 2,003 | ||
Miami-Dade County Cap. Asset Acquisition Series 2002 A, 5% 4/1/12 (AMBAC Insured) | 2,800 | 2,828 | ||
Miami-Dade County Pub. Facilities Rev.: | ||||
(Jackson Health Sys. Proj.) Series 2005 B: | ||||
5% 6/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,790 | 5,091 | ||
5% 6/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,875 | 4,059 | ||
Series 2005 B, 5% 6/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,270 | 1,291 | ||
Miami-Dade County Wtr. & Swr. Rev. Series 2008 A, 5% 10/1/14 (FSA Insured) | 4,000 | 4,390 | ||
North Brevard County Hosp. District Rev. (Parrish Med. Ctr. Proj.) Series 2008, 4.625% 10/1/12 | 1,110 | 1,134 | ||
Orange County Health Facilities Auth. (Orlando Health, Inc.) Series 2009: | ||||
5% 10/1/15 | 2,210 | 2,418 | ||
5% 10/1/16 | 1,000 | 1,105 | ||
Orange County Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys. - Sunbelt Proj.) 5.625% 11/15/32 (Pre-Refunded to 11/15/12 @ 101) | 2,500 | 2,633 | ||
(Orlando Reg'l. Healthcare Sys. Proj.) Series 2008 A: | ||||
5% 11/1/13 (FSA Insured) | 1,000 | 1,050 | ||
5% 11/1/15 (FSA Insured) | 1,825 | 1,975 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Orlando & Orange County Expressway Auth. Rev. Series 2010 B, 5% 7/1/15 (FSA Insured) | $ 1,430 | $ 1,582 | ||
Orlando Utils. Commission Util. Sys. Rev.: | ||||
Series 2009 C, 5% 10/1/17 | 1,500 | 1,793 | ||
Series 2010 C, 5% 10/1/17 | 1,895 | 2,257 | ||
Series 2011 B: | ||||
5% 10/1/18 | 2,250 | 2,727 | ||
5% 10/1/19 | 2,325 | 2,819 | ||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev. Series 2011: | ||||
5% 10/1/17 (e) | 4,465 | 5,020 | ||
5% 10/1/18 (e) | 2,745 | 3,097 | ||
5% 10/1/19 (e) | 2,025 | 2,288 | ||
Polk County School District Sales Tax Rev. Series 2007, 5% 10/1/12 (FSA Insured) | 6,080 | 6,268 | ||
Sarasota County School Board Ctfs. of Prtn. (Master Lease Prog.): | ||||
5% 7/1/13 | 3,435 | 3,634 | ||
5% 7/1/14 | 2,000 | 2,166 | ||
Tampa Bay Wtr. Reg'l. Wtr. Supply Auth. Util. Sys. Rev.: | ||||
Series 2011 B, 5% 10/1/18 | 4,700 | 5,717 | ||
Series 2011, 5% 10/1/19 | 5,590 | 6,868 | ||
Tampa Health Sys. Rev. (Baycare Health Sys. Proj.) Series 2010: | ||||
5% 11/15/16 | 2,500 | 2,880 | ||
5% 11/15/17 | 1,500 | 1,752 | ||
Tampa Solid Waste Sys. Rev. Series 2010: | ||||
4% 10/1/14 (FSA Insured) (e) | 3,000 | 3,144 | ||
5% 10/1/15 (FSA Insured) (e) | 2,920 | 3,188 | ||
5% 10/1/16 (FSA Insured) (e) | 6,000 | 6,683 | ||
5% 10/1/17 (FSA Insured) (e) | 5,000 | 5,641 | ||
Titusville Wtr. & Swr. Rev. Series 2010, 5% 10/1/17 (Assured Guaranty Corp. Insured) | 1,135 | 1,324 | ||
| 288,334 | |||
Georgia - 3.2% | ||||
Appling County Dev. Auth. Poll. Cont. Rev. Bonds (Oglethorpe Pwr. Corp. Hatch Proj.) Series 2011 A, 2.5%, tender 3/1/13 (b) | 5,000 | 5,078 | ||
Atlanta Arpt. Rev. Series 2011 B, 5% 1/1/13 (e) | 1,000 | 1,040 | ||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. Bonds: | ||||
(Georgia Pwr. Co. Plant Vogtle Proj.): | ||||
Fifth Series 1994, 2.3%, tender 4/1/14 (b) | 6,600 | 6,731 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Georgia - continued | ||||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. Bonds: - continued | ||||
(Georgia Pwr. Co. Plant Vogtle Proj.): | ||||
Series 2008: | ||||
0.8%, tender 6/21/12 (b) | $ 13,855 | $ 13,870 | ||
5.05%, tender 1/12/12 (b) | 1,500 | 1,501 | ||
(Oglethorpe Pwr. Corp. Vogtle Proj.): | ||||
Series 2008 D, 6.75%, tender 4/1/12 (b) | 7,600 | 7,705 | ||
Series 2011 A, 2.5%, tender 3/1/13 (b) | 3,500 | 3,554 | ||
Fulton County Facilities Corp. Ctfs. of Prtn. (Gen. Purp. Proj.) Series 2009: | ||||
5% 11/1/12 | 1,555 | 1,606 | ||
5% 11/1/13 | 7,550 | 8,041 | ||
5% 11/1/14 | 7,490 | 8,177 | ||
Fulton County Wtr. & Swr. Rev. Series 2011: | ||||
5% 1/1/19 | 4,000 | 4,875 | ||
5% 1/1/20 | 4,000 | 4,918 | ||
Georgia Road & Thruway Auth. Rev. Series 2009 A, 5% 6/1/12 | 8,100 | 8,256 | ||
Main Street Natural Gas, Inc. Georgia Gas Proj. Rev. Series 2007 A, 5% 9/15/12 | 1,195 | 1,210 | ||
Monroe County Dev. Auth. Poll. Cont. Rev. Bonds (Oglethorpe Pwr. Corp. Scherer Proj.) Series 2011 A, 2.5%, tender 3/1/13 (b) | 11,500 | 11,679 | ||
Muni. Elec. Auth. of Georgia (Proj. One): | ||||
Series 2008 A: | ||||
5% 1/1/13 | 2,000 | 2,080 | ||
5.25% 1/1/17 (Berkshire Hathaway Assurance Corp. Insured) | 7,925 | 9,399 | ||
Series 2008 D: | ||||
5.75% 1/1/19 | 14,890 | 18,181 | ||
5.75% 1/1/20 | 3,555 | 4,307 | ||
Pub. Gas Partners, Inc. Rev. (Gas Supply Pool No. 1 Proj.) Series A, 5% 10/1/12 | 1,000 | 1,030 | ||
Richmond County Hosp. Auth. (Univ. Health Svcs., Inc. Proj.) Series 2009: | ||||
5% 1/1/14 | 1,305 | 1,391 | ||
5% 1/1/15 | 1,040 | 1,113 | ||
5% 1/1/16 | 2,415 | 2,610 | ||
5% 1/1/18 | 1,530 | 1,664 | ||
| 130,016 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Hawaii - 0.7% | ||||
Hawaii Arpts. Sys. Rev.: | ||||
Series 2010 B, 5% 7/1/15 (e) | $ 3,900 | $ 4,348 | ||
Series 2011, 5% 7/1/19 (e) | 4,000 | 4,527 | ||
Hawaii Gen. Oblig.: | ||||
Series DR: | ||||
5% 6/1/16 | 7,645 | 8,945 | ||
5% 6/1/16 (Escrowed to Maturity) | 2,895 | 3,415 | ||
Series DY: | ||||
5% 2/1/15 | 3,500 | 3,946 | ||
5% 2/1/16 | 4,000 | 4,630 | ||
| 29,811 | |||
Illinois - 7.5% | ||||
Chicago Board of Ed. Series 2009 D: | ||||
5% 12/1/17 (Assured Guaranty Corp. Insured) | 4,115 | 4,765 | ||
5% 12/1/18 (Assured Guaranty Corp. Insured) | 2,335 | 2,719 | ||
Chicago Gen. Oblig.: | ||||
(City Colleges Proj.): | ||||
Series 1999: | ||||
0% 1/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,200 | 6,289 | ||
0% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 2,513 | ||
0% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 9,000 | 7,204 | ||
Series1999, 0% 1/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 10,000 | 7,621 | ||
Series A: | ||||
5% 1/1/17 (FSA Insured) | 3,465 | 3,864 | ||
5.25% 1/1/12 (Escrowed to Maturity) | 825 | 825 | ||
5.25% 1/1/12 (FSA Insured) | 175 | 175 | ||
Series B: | ||||
5% 1/1/17 (FSA Insured) | 5,115 | 5,716 | ||
5.125% 1/1/15 (AMBAC Insured) | 3,995 | 4,303 | ||
Chicago Hsg. Auth. Rev. (Cap. Prog.) Series 2001, 5.5% 7/1/18 (Pre-Refunded to 7/1/12 @ 100) | 2,850 | 2,922 | ||
Chicago Midway Arpt. Rev. Bonds Series 2010 B, 5%, tender 1/1/15 (b) | 5,000 | 5,406 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series 2008 A: | ||||
5% 1/1/12 (FSA Insured) | 3,500 | 3,500 | ||
5% 1/1/13 (FSA Insured) | 4,000 | 4,172 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Chicago O'Hare Int'l. Arpt. Rev.: - continued | ||||
Series 2010 D, 5.25% 1/1/17 (e) | $ 1,000 | $ 1,122 | ||
Series 2010 E: | ||||
5% 1/1/15 (e) | 4,000 | 4,328 | ||
5% 1/1/16 (e) | 1,500 | 1,656 | ||
Series 2011 B, 5% 1/1/18 | 6,500 | 7,484 | ||
Series A, 5% 1/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,165 | 1,165 | ||
Chicago Sales Tax Rev. Series 1998, 5.5% 1/1/16 (FGIC Insured) (FSA Insured) | 1,710 | 1,957 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | ||||
(Fed. Transit Administration Section 5309 Proj.) Series 2008 A, 5% 6/1/13 | 3,765 | 3,969 | ||
5% 6/1/19 (Assured Guaranty Corp. Insured) | 2,085 | 2,279 | ||
5% 6/1/19 (Assured Guaranty Corp. Insured) (Pre-Refunded to 12/1/16 @ 100) | 415 | 494 | ||
Cook County Thorton Township High School District #205 5.5% 12/1/16 (Assured Guaranty Corp. Insured) | 2,500 | 2,944 | ||
Illinois Fin. Auth. Gas Supply Rev. Bonds (The Peoples Gas Lt. and Coke Co. Proj.): | ||||
Series 2010 B, 2.625%, tender 8/1/15 (b) | 9,500 | 9,740 | ||
Series 2010, 2.125%, tender 7/1/14 (b) | 11,500 | 11,568 | ||
Illinois Fin. Auth. Hosp. Rev. (KishHealth Sys. Proj.) Series 2008, 5.25% 10/1/15 | 2,220 | 2,382 | ||
Illinois Fin. Auth. Rev.: | ||||
(Advocate Health Care Proj.) Series 2010 D, 5% 4/1/15 | 550 | 609 | ||
(Alexian Brothers Health Sys. Proj.) Series 2010, 4.5% 2/15/16 | 3,000 | 3,181 | ||
(Memorial Health Sys. Proj.) Series 2009, 5% 4/1/19 | 1,600 | 1,738 | ||
(Northwest Cmnty. Hosp. Proj.) Series 2008 A: | ||||
5% 7/1/12 | 750 | 765 | ||
5% 7/1/13 | 415 | 437 | ||
5% 7/1/15 | 1,000 | 1,099 | ||
(Palos Cmnty. Hosp. Proj.) Series 2010 C: | ||||
5% 5/15/16 | 2,060 | 2,283 | ||
5% 5/15/17 | 3,520 | 3,946 | ||
(Provena Health Proj.) Series 2010 A: | ||||
5% 5/1/13 | 2,000 | 2,070 | ||
5% 5/1/14 | 2,000 | 2,100 | ||
5.75% 5/1/19 | 2,650 | 2,861 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Fin. Auth. Rev.: - continued | ||||
(Rush Univ. Med. Ctr. Proj.) Series 2006 B: | ||||
5% 11/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 3,075 | $ 3,310 | ||
5% 11/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,700 | 1,824 | ||
(The Carle Foundation Proj.) Series 2009 A, 5% 2/15/12 (Assured Guaranty Corp. Insured) | 4,965 | 4,981 | ||
Bonds (Advocate Health Care Proj.): | ||||
Series 2008 A3, 3.875%, tender 5/1/12 (b) | 4,000 | 4,042 | ||
Series 2008 C B3, 4.375%, tender 7/1/14 (b) | 4,000 | 4,250 | ||
Illinois Gen. Oblig.: | ||||
(Illinois FIRST Proj.) Series 2001, 5% 11/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,500 | 1,504 | ||
Series 1, 5.25% 8/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,865 | 2,934 | ||
Series 2002: | ||||
5% 10/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,515 | 3,595 | ||
5.5% 8/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,495 | 1,680 | ||
Series 2003 A, 5.25% 10/1/13 (FSA Insured) | 3,755 | 4,017 | ||
Series 2004 B, 5% 3/1/14 | 15,500 | 16,660 | ||
Series 2004, 5% 11/1/16 | 11,000 | 12,434 | ||
Series 2005: | ||||
5% 4/1/13 (AMBAC Insured) | 5,000 | 5,234 | ||
5% 4/1/17 (AMBAC Insured) | 8,050 | 8,724 | ||
Series 2007 A, 5.5% 6/1/15 | 1,000 | 1,119 | ||
Series 2007 B, 5% 1/1/17 | 9,835 | 11,060 | ||
Series 2009 A, 3.5% 9/1/13 | 3,000 | 3,111 | ||
Series 2010: | ||||
4% 1/1/13 | 3,695 | 3,800 | ||
5% 1/1/15 (FSA Insured) | 20,000 | 21,885 | ||
Illinois Health Facilities Auth. Rev.: | ||||
(Delnor-Cmnty. Hosp. Proj.) Series 2003 A: | ||||
5% 5/15/15 (FSA Insured) | 2,250 | 2,412 | ||
5% 5/15/16 (FSA Insured) | 2,325 | 2,529 | ||
Series 2003 A, 5% 5/15/17 (FSA Insured) | 2,150 | 2,425 | ||
Illinois Sales Tax Rev.: | ||||
Series 2009 B: | ||||
4.5% 6/15/16 | 5,000 | 5,613 | ||
4.5% 6/15/17 | 6,075 | 6,949 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Sales Tax Rev.: - continued | ||||
Series 2010, 5% 6/15/15 | $ 8,800 | $ 9,906 | ||
Series 2011, 4% 6/15/13 | 2,600 | 2,718 | ||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series 2002 B, 5.5% 1/1/12 (FSA Insured) | 2,270 | 2,270 | ||
Kane County School District #129, Aurora West Side Series 2002 A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) | 1,600 | 1,606 | ||
Lake County Cmnty. Consolidated School District #73 Gen. Oblig.: | ||||
0% 12/1/15 (Escrowed to Maturity) | 580 | 556 | ||
0% 12/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,520 | 1,352 | ||
Metropolitan Pier & Exposition: | ||||
(McCormick Place Expansion Proj.) Series 1996 A: | ||||
0% 6/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,410 | 1,397 | ||
0% 12/15/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,725 | 2,592 | ||
Series A, 0% 6/15/14 (Escrowed to Maturity) | 8,625 | 8,456 | ||
0% 6/15/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 700 | 654 | ||
Univ. of Illinois Rev. 0% 4/1/14 | 2,350 | 2,251 | ||
Will County Cmnty. Unit School District #365-U: | ||||
0% 11/1/14 (Escrowed to Maturity) | 1,025 | 998 | ||
0% 11/1/14 (FSA Insured) | 875 | 821 | ||
0% 11/1/16 (Escrowed to Maturity) | 740 | 697 | ||
0% 11/1/16 (FSA Insured) | 2,235 | 1,934 | ||
| 308,471 | |||
Indiana - 2.3% | ||||
Hamilton Southeastern Consolidated School Bldg. Corp.: | ||||
Series 2004, 5% 1/15/12 (FSA Insured) | 1,990 | 1,992 | ||
Series 2005 A, 5.25% 1/10/12 (FSA Insured) | 1,355 | 1,356 | ||
Indiana Fin. Auth. Health Sys. Rev. (Sisters of Saint Francis Health Svcs., Inc. Obligated Group Proj.) Series 2008 C, 5% 11/1/13 | 3,000 | 3,210 | ||
Indiana Fin. Auth. Hosp. Rev.: | ||||
(Jackson County Schneck Memorial Hosp. Proj.) Series 2010, 5% 2/15/18 | 1,475 | 1,595 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Indiana Fin. Auth. Hosp. Rev.: - continued | ||||
(Parkview Health Sys. Oblig. Group Proj.) | ||||
5% 5/1/14 | $ 3,500 | $ 3,768 | ||
5% 5/1/15 | 6,420 | 7,021 | ||
Indiana Fin. Auth. Rev.: | ||||
(Trinity Health Cr. Group Proj.) Series 2009 A: | ||||
5% 12/1/14 | 1,250 | 1,386 | ||
5% 12/1/15 | 2,135 | 2,409 | ||
(Wabash Valley Correctional Facilities Proj.) Series 2009 A, 5% 7/1/15 | 8,025 | 8,895 | ||
(Wabash Valley Correctional Facility Proj.) Series 2009 A, 5% 7/1/14 | 2,500 | 2,701 | ||
Series 2010 A, 5% 2/1/17 | 2,800 | 3,342 | ||
Indiana Health & Edl. Facilities Fing. Auth. Rev. Bonds (Ascension Health Sr. Cr. Group Proj.) Series 2006 B1, 4.1%, tender 11/3/16 (b) | 4,000 | 4,451 | ||
Indiana Health Facility Fing. Auth. Rev. Bonds: | ||||
(Ascension Health Cr. Group Proj.) Series 2001 A1, 1.5%, tender 8/1/14 (b) | 3,400 | 3,443 | ||
(Ascension Health Subordinate Cr. Proj.) Series A2, 3.75%, tender 2/1/12 (b) | 7,500 | 7,518 | ||
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2011 A: | ||||
5% 1/1/19 | 1,470 | 1,758 | ||
5% 1/1/20 | 1,250 | 1,498 | ||
Indiana Port Commission Port Rev. (Cargill, Inc. Proj.) 4.1% 5/1/12 | 4,100 | 4,146 | ||
Indianapolis Local Pub. Impt. Bond Bank (Wtrwks. Proj.): | ||||
Series 2002 A, 5.5% 7/1/16 (Pre-Refunded to 7/1/12 @ 100) | 5,000 | 5,129 | ||
Series F, 5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 515 | 578 | ||
Indianapolis Thermal Energy Sys. Series 2010 B: | ||||
5% 10/1/16 | 5,000 | 5,714 | ||
5% 10/1/17 | 5,000 | 5,774 | ||
Jasper County Indl. Poll. Ctl. Rev. (Northern Indiana Pub. Svc. Co. Proj.) Series 1988 B, 5.2% 6/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 3,143 | ||
Logansport High School Bldg. Corp. Series 2005: | ||||
5.25% 1/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,045 | 1,046 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Logansport High School Bldg. Corp. Series 2005: - continued | ||||
5.25% 7/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,075 | $ 1,101 | ||
Muncie School Bldg. Corp. Series 2005, 5.25% 7/10/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,585 | 1,623 | ||
Purdue Univ. Rev.: | ||||
(Student Facilities Sys. Proj.) Series 2009 B: | ||||
4% 7/1/17 | 500 | 574 | ||
5% 7/1/15 | 315 | 359 | ||
5% 7/1/16 | 500 | 586 | ||
Series Z-1: | ||||
5% 7/1/16 | 1,215 | 1,424 | ||
5% 7/1/17 | 1,000 | 1,201 | ||
5% 7/1/18 | 1,500 | 1,835 | ||
Univ. of Southern Indiana Rev. Series J: | ||||
5% 10/1/14 (Assured Guaranty Corp. Insured) | 1,985 | 2,159 | ||
5% 10/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,111 | ||
5% 10/1/16 (Assured Guaranty Corp. Insured) | 1,165 | 1,324 | ||
West Clark 2000 School Bldg. Corp. Series 2005, 5.25% 1/15/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,150 | 1,152 | ||
| 96,322 | |||
Iowa - 0.1% | ||||
Iowa Fin. Auth. Health Care Facilities Rev. (Genesis Health Sys. Proj.) Series 2010: | ||||
5% 7/1/15 | 2,165 | 2,349 | ||
5% 7/1/16 | 1,335 | 1,463 | ||
Iowa Fin. Auth. Health Facilities Rev. Series 2005 A, 5% 2/15/16 (Assured Guaranty Corp. Insured) | 1,700 | 1,902 | ||
| 5,714 | |||
Kansas - 0.7% | ||||
Kansas Dev. Fin. Agcy. (Adventist Health Sys./Sunbelt Obligated Group Proj.) Series 2009 D: | ||||
5% 11/15/14 | 575 | 635 | ||
5% 11/15/15 | 625 | 701 | ||
5% 11/15/16 | 875 | 997 | ||
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L, 5.25% 11/15/12 | 680 | 704 | ||
Olathe Health Facilities Rev. Bonds (Olathe Med. Ctr. Proj.) Series 2008 A, 4.125%, tender 3/1/13 (b) | 1,600 | 1,606 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Kansas - continued | ||||
Wichita Hosp. Facilities Rev.: | ||||
(Via Christi Health Sys., Inc. Proj.) | ||||
Series 2009 X: | ||||
5% 11/15/14 | $ 2,000 | $ 2,178 | ||
Series 2009 III A: | ||||
5% 11/15/14 | 2,405 | 2,619 | ||
5% 11/15/15 | 6,245 | 6,913 | ||
5% 11/15/16 | 5,410 | 6,062 | ||
Series 2011 IV A: | ||||
5% 11/15/18 | 2,250 | 2,599 | ||
5% 11/15/20 | 2,745 | 3,137 | ||
| 28,151 | |||
Kentucky - 1.0% | ||||
Ashland Med. Ctr. Rev. (Ashland Hosp. Corp. d/b/a/ King's Daughters Med. Ctr. Proj.) Series 2010 B: | ||||
4% 2/1/14 | 750 | 789 | ||
4% 2/1/15 | 1,495 | 1,586 | ||
Jefferson County School District Fin. Corp. School Bldg. Rev. Series 2009 A, 5.25% 1/1/13 (FSA Insured) | 2,170 | 2,273 | ||
Kentucky Econ. Dev. Fin. Auth. Hosp. Rev. (Baptist Healthcare Sys. Proj.) Series A, 5% 8/15/15 | 4,000 | 4,438 | ||
Kentucky Econ. Dev. Fin. Auth. Rev. (Ashland Hosp. Corp. d/b/a/ King's Daughters Med. Ctr. Proj.) Series 2010 A, 4% 2/1/13 | 500 | 517 | ||
Kentucky State Property & Buildings Commission Rev. (#82 Proj.) 5.25% 10/1/17 (FSA Insured) | 2,450 | 2,931 | ||
Louisville/Jefferson County Metropolitan Govt. Poll. Cont. Rev. Bonds (Louisville Gas and Electronic Co. Proj.): | ||||
Series 2003 A, 1.9%, tender 4/2/12 (b) | 10,900 | 10,927 | ||
Series 2005 A, 5.75%, tender 12/2/13 (b) | 6,000 | 6,420 | ||
Series 2007 B, 1.9%, tender 6/1/12 (b) | 10,900 | 10,943 | ||
| 40,824 | |||
Louisiana - 0.3% | ||||
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. Series ST-2005 B, 5% 2/1/12 (AMBAC Insured) | 1,000 | 1,003 | ||
Louisiana Pub. Facilities Auth. Rev.: | ||||
(Christus Health Proj.) Series 2009 A: | ||||
5% 7/1/13 | 3,500 | 3,684 | ||
5% 7/1/16 | 2,000 | 2,211 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Louisiana - continued | ||||
Louisiana Pub. Facilities Auth. Rev.: - continued | ||||
(Entergy Gulf States Louisiana LLC Proj.) Series 2010 B, 2.875% 11/1/15 | $ 3,000 | $ 3,057 | ||
Reg'l. Transit Auth. Louisiana Sales Tax Rev. 4% 12/1/16 (FSA Insured) | 1,000 | 1,104 | ||
| 11,059 | |||
Maryland - 1.2% | ||||
Maryland Gen. Oblig. Second Series B, 5.25% 8/15/16 | 16,100 | 19,329 | ||
Maryland Health & Higher Edl. Facilities Auth. Rev.: | ||||
(Univ. of Maryland Med. Sys. Proj.) Series 2008 F: | ||||
5% 7/1/13 | 2,400 | 2,537 | ||
5% 7/1/14 | 3,500 | 3,788 | ||
Bonds (Johns Hopkins Health Sys. Obligated Group Proj.) Series 2008 B, 5%, tender 5/15/15 (b) | 2,225 | 2,500 | ||
Montgomery County Gen. Oblig.: | ||||
(Dept. of Liquor Cont. Proj.) Series 2009 A, 5% 4/1/15 | 1,725 | 1,940 | ||
Series 2011 A, 5% 7/1/20 | 16,000 | 19,838 | ||
| 49,932 | |||
Massachusetts - 1.7% | ||||
Braintree Gen. Oblig. Series 2009: | ||||
5% 5/15/14 | 1,000 | 1,100 | ||
5% 5/15/16 | 4,400 | 5,147 | ||
Massachusetts Bay Trans. Auth. Series 1993 A, 5.5% 3/1/12 | 95 | 96 | ||
Massachusetts Bay Trans. Auth. Sales Tax Rev. Series 2006 B, 5.25% 7/1/18 | 2,300 | 2,857 | ||
Massachusetts Dept. of Trans. Metropolitan Hwy. Sys. Rev. Series 2010 B, 5% 1/1/15 | 12,400 | 13,618 | ||
Massachusetts Dev. Fin. Agcy. Rev.: | ||||
(Boston College Proj.): | ||||
Series Q1: | ||||
4% 7/1/15 | 1,500 | 1,642 | ||
4% 7/1/16 | 1,000 | 1,119 | ||
5% 7/1/13 | 1,000 | 1,067 | ||
Series Q2: | ||||
4% 7/1/15 | 1,170 | 1,281 | ||
4% 7/1/16 | 1,000 | 1,119 | ||
5% 7/1/13 | 1,100 | 1,173 | ||
5% 7/1/14 | 1,080 | 1,183 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Massachusetts - continued | ||||
Massachusetts Dev. Fin. Agcy. Rev.: - continued | ||||
(Boston College Proj.): | ||||
Series Q2: | ||||
5% 7/1/17 | $ 1,370 | $ 1,634 | ||
(Tufts Med. Ctr. Proj.) Series I: | ||||
5% 1/1/14 | 1,550 | 1,622 | ||
5% 1/1/16 | 1,300 | 1,377 | ||
Massachusetts Gen. Oblig. Series 2002 C: | ||||
5% 11/1/21 (Pre-Refunded to 11/1/12 @ 100) | 8,100 | 8,410 | ||
5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) | 2,495 | 2,596 | ||
Massachusetts Health & Edl. Facilities Auth. Rev. Bonds: | ||||
(Baystate Health Sys. Proj.) Series 2009 K, 5%, tender 7/1/13 (b) | 7,000 | 7,376 | ||
(Northeastern Univ. Proj.): | ||||
Series 2008 T2, 4.1%, tender 4/19/12 (b) | 1,200 | 1,213 | ||
Series 2009 T1, 4.125%, tender 2/16/12 (b) | 2,100 | 2,109 | ||
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series 2001 A, 5.5% 1/1/12 (AMBAC Insured) (e) | 1,000 | 1,000 | ||
Massachusetts Spl. Oblig. Rev. (Fed. Hwy. Grant Anticipation Note Prog.) Series 2003 A: | ||||
5% 12/15/12 (FSA Insured) | 3,300 | 3,448 | ||
5% 12/15/13 (FSA Insured) | 2,000 | 2,167 | ||
Medford Gen. Oblig. Series 2011 B, 4% 3/1/19 | 3,570 | 4,029 | ||
| 68,383 | |||
Michigan - 2.6% | ||||
Allegan Pub. School District Series 2008, 5% 5/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,590 | 1,613 | ||
Big Rapids Pub. School District: | ||||
5% 5/1/13 (Assured Guaranty Corp. Insured) | 1,195 | 1,250 | ||
5% 5/1/14 (Assured Guaranty Corp. Insured) | 1,190 | 1,283 | ||
Chelsea School District 5% 5/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,750 | 1,847 | ||
Clarkston Cmnty. Schools Series 2008, 5% 5/1/12 (FSA Insured) | 3,000 | 3,045 | ||
Detroit Swr. Disp. Rev. Series 2006 D, 0.849% 7/1/32 (b) | 4,075 | 2,707 | ||
Grand Haven Area Pub. Schools 5% 5/1/12 (FSA Insured) | 2,965 | 3,008 | ||
Grand Rapids Cmnty. College: | ||||
5% 5/1/12 (FSA Insured) | 1,305 | 1,324 | ||
5% 5/1/13 (FSA Insured) | 1,305 | 1,376 | ||
Grand Valley Michigan State Univ. Rev. Series 2009, 5% 12/1/16 | 1,320 | 1,517 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Michigan - continued | ||||
Kalamazoo Pub. Schools 5% 5/1/13 (Assured Guaranty Corp. Insured) | $ 2,940 | $ 3,102 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev.: | ||||
(Spectrum Health Sys. Proj.) Series 2011 A: | ||||
5% 11/15/18 | 1,250 | 1,453 | ||
5% 11/15/19 | 1,000 | 1,166 | ||
Bonds (Spectrum Health Sys. Proj.) Series 2008 A, 5.25%, tender 1/15/14 (b) | 2,200 | 2,362 | ||
Lincoln Consolidated School District 5% 5/1/12 (FSA Insured) | 1,485 | 1,507 | ||
Michigan Gen. Oblig. (Envir. Protection Prog.) Series 1992, 6.25% 11/1/12 | 675 | 708 | ||
Michigan Hosp. Fin. Auth. Rev.: | ||||
(McLaren Health Care Corp. Proj.) Series 2008 A, 5.25% 5/15/14 | 4,160 | 4,536 | ||
Bonds (Ascension Health Cr. Group Proj.) Series 1999 B3, 2%, tender 8/1/14 (b) | 11,000 | 11,284 | ||
Michigan Muni. Bond Auth. Rev.: | ||||
(Clean Wtr. Pooled Proj.) Series 2010: | ||||
5% 10/1/14 | 6,045 | 6,758 | ||
5% 10/1/15 | 1,750 | 2,013 | ||
5% 10/1/15 | 3,250 | 3,739 | ||
(Local Govt. Ln. Prog.) Series 2009 C: | ||||
5% 5/1/13 | 1,645 | 1,717 | ||
5% 5/1/14 | 2,140 | 2,276 | ||
5% 5/1/15 | 1,845 | 2,003 | ||
5% 5/1/16 | 1,865 | 2,060 | ||
Plymouth-Canton Cmnty. School District 5% 5/1/12 (FSA Insured) | 4,000 | 4,058 | ||
Pontiac Tax Increment Fin. Auth. Series 2002, 6.25% 6/1/22 (Pre-Refunded to 6/1/12 @ 101) | 2,260 | 2,337 | ||
Royal Oak City School District 5% 5/1/12 | 2,000 | 2,029 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Oblig. Group Proj.) Series 2009 W, 5% 8/1/15 | 2,070 | 2,233 | ||
Wayne County Arpt. Auth. Rev. Series 2011 A, 5% 12/1/19 (e) | 20,000 | 21,954 | ||
West Bloomfield School District 5% 5/1/15 (Assured Guaranty Corp. Insured) | 1,400 | 1,527 | ||
Western Michigan Univ. Rev.: | ||||
5.25% 11/15/14 (Assured Guaranty Corp. Insured) | 2,135 | 2,356 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Michigan - continued | ||||
Western Michigan Univ. Rev.: - continued | ||||
5.25% 11/15/15 (Assured Guaranty Corp. Insured) | $ 3,275 | $ 3,687 | ||
Western Townships Utils. Auth. Swr. Disp. Sys. Rev. Series 2009, 3% 1/1/12 | 1,000 | 1,000 | ||
| 106,835 | |||
Minnesota - 0.2% | ||||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev. Series 2008 A, 5% 1/1/13 (e) | 1,000 | 1,043 | ||
Minnesota 911 Rev. (Pub. Safety Radio Communications Sys. Proj.) Series 2009, 5% 6/1/14 (Assured Guaranty Corp. Insured) | 2,225 | 2,434 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Essentia Health Obligated Group Proj.) Series 2008 C1: | ||||
5% 2/15/15 (Assured Guaranty Corp. Insured) | 1,335 | 1,466 | ||
5% 2/15/16 (Assured Guaranty Corp. Insured) | 565 | 632 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev. Series 2009 A, 5% 1/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,111 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2009 A, 5% 1/1/16 | 1,000 | 1,143 | ||
| 7,829 | |||
Mississippi - 0.1% | ||||
Mississippi Hsg. Fin. Corp. Single Family Mtg. Rev. Series 1983, 0% 6/1/15 (Escrowed to Maturity) | 4,000 | 3,856 | ||
Missouri - 0.1% | ||||
Saint Louis Arpt. Rev. Series 2011 B, 3% 7/1/12 | 1,000 | 1,007 | ||
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series 2002 A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) | 1,050 | 1,056 | ||
| 2,063 | |||
Nebraska - 0.3% | ||||
Nebraska Pub. Pwr. District Rev.: | ||||
Series B, 5% 1/1/12 (FSA Insured) | 3,500 | 3,500 | ||
Series C: | ||||
4% 1/1/15 | 2,360 | 2,559 | ||
4% 1/1/16 | 2,195 | 2,427 | ||
Univ. of Nebraska Facilities Corp. Lease Rental Rev. (UNMC Health Professions Futures Proj.) Series 2009, 5% 8/15/13 | 4,000 | 4,248 | ||
| 12,734 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nevada - 1.8% | ||||
Clark County Arpt. Rev.: | ||||
Series 2008 E: | ||||
5% 7/1/14 | $ 2,905 | $ 3,147 | ||
5% 7/1/15 | 3,500 | 3,880 | ||
Series A1, 5% 7/1/12 (AMBAC Insured) (e) | 2,000 | 2,042 | ||
Clark County Fuel Tax Series 2008, 5% 6/1/13 | 5,815 | 6,163 | ||
Clark County School District: | ||||
(Bldg. Proj.) Series 2008 A, 5% 6/15/12 | 10,000 | 10,203 | ||
Series 1998, 5.5% 6/15/13 (FSA Insured) | 5,000 | 5,334 | ||
Series 2005 A, 5% 6/15/16 (FGIC Insured) | 21,215 | 23,892 | ||
Nevada Dept. of Bus. & Industry (Waste Mgmt., Inc. Proj.) Series 2001, 2.75% 10/1/14 (e) | 3,000 | 3,077 | ||
Nevada Gen. Oblig. Series 2010 C, 5% 6/1/19 | 12,140 | 14,488 | ||
| 72,226 | |||
New Hampshire - 0.0% | ||||
New Hampshire Health & Ed. Facilities Auth. Rev. Series 2011, 3% 10/1/12 | 1,050 | 1,063 | ||
New Jersey - 2.3% | ||||
New Jersey Ctfs. of Prtn.: | ||||
Series 2008 A, 5% 6/15/15 | 750 | 820 | ||
Series 2009 A: | ||||
5% 6/15/15 | 11,285 | 12,474 | ||
5% 6/15/16 | 6,500 | 7,328 | ||
New Jersey Econ. Dev. Auth. Poll. Cont. Rev. (Pub. Svc. Elec. & Gas Pwr. LLC Proj.) 5% 3/1/12 | 3,275 | 3,294 | ||
New Jersey Econ. Dev. Auth. School Facilities Construction Rev.: | ||||
Bonds Series 2008 J4, 5%, tender 9/1/14 (FSA Insured) (b) | 7,000 | 7,576 | ||
Series 2001 A, 5.5% 6/15/13 (AMBAC Insured) | 1,090 | 1,171 | ||
Series 2005 K, 5.25% 12/15/14 (FGIC Insured) | 1,790 | 1,995 | ||
Series 2005 O, 5% 3/1/20 | 6,350 | 6,928 | ||
Series 2008 W: | ||||
5% 3/1/12 (Escrowed to Maturity) | 5,545 | 5,586 | ||
5% 3/1/15 | 10,400 | 11,541 | ||
Series 2009 BB, 5% 9/1/15 | 3,390 | 3,803 | ||
Series 2011 EE, 5% 9/1/20 | 5,000 | 5,882 | ||
New Jersey Gen. Oblig. Series H, 5.25% 7/1/15 (FSA Insured) | 5,000 | 5,738 | ||
New Jersey Higher Ed. Student Assistance Auth. Student Ln. Rev. Series 2010 1A, 5% 12/1/15 | 4,500 | 4,964 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New Jersey - continued | ||||
New Jersey Tpk. Auth. Tpk. Rev. Series 1991 C, 6.5% 1/1/16 (Escrowed to Maturity) | $ 4,300 | $ 4,760 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series 2003 A, 5.5% 12/15/16 (FSA Insured) | 5,000 | 5,905 | ||
Series 2003 B. 5.25% 12/15/19 | 3,000 | 3,601 | ||
| 93,366 | |||
New Mexico - 1.1% | ||||
Farmington Poll. Cont. Rev. Bonds (Southern California Edison Co. Four Corners Proj.) Series 2005 B, 2.875%, tender 4/1/15 (b) | 22,100 | 22,773 | ||
New Mexico Edl. Assistance Foundation: | ||||
Series 2009 B, 4% 9/1/16 | 7,000 | 7,721 | ||
Series 2010 A1: | ||||
4% 12/1/15 | 3,700 | 4,032 | ||
4% 12/1/16 | 6,750 | 7,481 | ||
Rio Rancho Wtr. & Wastewtr. Sys. Rev. Series 2009, 5% 5/15/17 (FSA Insured) | 4,480 | 5,313 | ||
| 47,320 | |||
New York - 13.0% | ||||
Albany Indl. Dev. Agcy. Civic Facility Rev. (St. Peters Hosp. Proj.) Series 2008 A, 5.5% 11/15/12 | 1,000 | 1,039 | ||
Dutchess County Local Dev. Corp. Rev. (Health Quest Systems, Inc. Proj.) Series 2010 A: | ||||
5% 7/1/18 (Assured Guaranty Corp. Insured) (FSA Insured) | 1,100 | 1,232 | ||
5% 7/1/19 (Assured Guaranty Corp. Insured) (FSA Insured) | 640 | 718 | ||
Grand Central District Mgmt. Assoc., Inc. Series 2004, 5% 1/1/12 | 1,175 | 1,175 | ||
Long Island Pwr. Auth. Elec. Sys. Rev. Series 2010 A, 5% 5/1/15 | 5,000 | 5,582 | ||
Metropolitan Trans. Auth. Svc. Contract Rev. Series 2002 A, 5.5% 7/1/17 | 5,000 | 6,079 | ||
New York City Gen. Oblig.: | ||||
Series 1997 H, 6% 8/1/12 (FGIC Insured) | 1,000 | 1,033 | ||
Series 2005 C, 5% 8/1/12 | 19,770 | 20,307 | ||
Series 2005 D, 5% 8/1/12 (Escrowed to Maturity) | 4,925 | 5,059 | ||
Series 2005 F1, 5% 9/1/15 | 3,560 | 4,053 | ||
Series 2005 G, 5.625% 8/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,075 | 5,227 | ||
Series 2008 E, 5% 8/1/12 | 5,000 | 5,136 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York City Gen. Oblig.: - continued | ||||
Series 2010 C, 5% 8/1/13 | $ 7,000 | $ 7,497 | ||
Series B: | ||||
5% 8/1/14 | 10,000 | 11,059 | ||
5% 8/1/15 | 10,000 | 11,362 | ||
Series K: | ||||
5% 8/1/12 | 2,335 | 2,398 | ||
5% 8/1/12 (Escrowed to Maturity) | 2,025 | 2,080 | ||
Series O: | ||||
5% 6/1/12 | 1,745 | 1,779 | ||
5% 6/1/12 (Escrowed to Maturity) | 5,780 | 5,891 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2003 B, 5% 2/1/20 | 3,000 | 3,711 | ||
Series 2007 C1, 5% 11/1/15 | 10,000 | 11,488 | ||
Series 2010 B: | ||||
5% 11/1/17 | 30,000 | 36,185 | ||
5% 11/1/20 | 5,950 | 7,314 | ||
Series 2010 D: | ||||
5% 11/1/15 | 8,300 | 9,535 | ||
5% 11/1/17 | 10,115 | 12,201 | ||
Series 2012 A: | ||||
5% 11/1/17 | 7,000 | 8,443 | ||
5% 11/1/20 | 4,500 | 5,607 | ||
Series E, 4% 11/1/12 | 6,790 | 6,999 | ||
New York City Trust Cultural Resources Rev. Bonds (The Juilliard School Proj.) Series 2009 B, 2.75%, tender 7/1/12 (b) | 3,500 | 3,542 | ||
New York Dorm. Auth. Personal Income Tax Rev.: | ||||
(Ed. Proj.) Series 2009 A: | ||||
5% 3/15/12 | 3,900 | 3,937 | ||
5% 3/15/13 | 3,545 | 3,742 | ||
5% 3/15/14 | 3,745 | 4,106 | ||
5% 3/15/15 | 4,000 | 4,526 | ||
Series 2009 D: | ||||
5% 6/15/14 | 9,890 | 10,937 | ||
5% 6/15/15 | 16,075 | 18,311 | ||
5% 6/15/16 | 9,330 | 10,913 | ||
Series 2010 A, 5% 2/15/14 (Escrowed to Maturity) | 10 | 11 | ||
Series A: | ||||
5% 2/15/14 | 9,840 | 10,758 | ||
5% 2/15/15 | 8,775 | 9,902 | ||
5% 2/15/15 (Escrowed to Maturity) | 5 | 6 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.) Series A: | ||||
5.75% 7/1/13 | $ 1,980 | $ 2,067 | ||
5.75% 7/1/13 (AMBAC Insured) | 570 | 595 | ||
(Mental Health Svcs. Facilities Proj.): | ||||
Series 2008 D: | ||||
5% 2/15/14 | 7,295 | 7,889 | ||
5% 8/15/14 | 7,755 | 8,533 | ||
Series 2009 A1, 5% 2/15/15 | 9,000 | 10,015 | ||
(New York Univ. Hosp. Ctr. Proj.) Series 2011 A, 5% 7/1/18 | 3,240 | 3,636 | ||
(St. Lawrence Univ.) Series 2008, 5% 7/1/14 | 3,700 | 3,983 | ||
Bonds Series 2002 B, 5.25%, tender 5/15/12 (b) | 16,055 | 16,335 | ||
Series 2008 B, 5% 7/1/15 | 30,000 | 33,785 | ||
Series 2009 A: | ||||
5% 7/1/15 | 12,850 | 14,396 | ||
5% 7/1/16 | 8,390 | 9,590 | ||
New York Local Govt. Assistance Corp. Series 2003 A, 5% 4/1/18 | 12,400 | 15,232 | ||
New York Metropolitan Trans. Auth. Dedicated Tax Fund Rev. Series B: | ||||
5% 11/15/14 | 1,350 | 1,508 | ||
5% 11/15/15 | 2,325 | 2,667 | ||
New York Metropolitan Trans. Auth. Rev.: | ||||
Bonds Series 2008 B2, 5%, tender 11/15/12 (b) | 7,300 | 7,567 | ||
Series 2003 B: | ||||
5.25% 11/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,040 | 1,113 | ||
5.25% 11/15/19 (FGIC Insured) | 5,200 | 6,310 | ||
Series 2010 B2, 4% 11/15/14 | 2,830 | 3,061 | ||
New York State Energy Research & Dev. Auth. Facilities Rev. Bonds (Consolidated Edison Co. of New York, Inc. Proj.) Series 2010 A, 1.45%, tender 11/1/12 (b)(e) | 26,400 | 26,508 | ||
New York Thruway Auth. Second Gen. Hwy. & Bridge Trust Fund: | ||||
Series 2008 A, 5% 4/1/13 | 2,600 | 2,747 | ||
Series 2010 A, 5% 4/1/17 | 1,000 | 1,186 | ||
Series 2011 A1: | ||||
5% 4/1/17 | 1,500 | 1,778 | ||
5% 4/1/18 | 3,500 | 4,232 | ||
New York Urban Dev. Corp. Rev.: | ||||
Series 2005 A, 5% 1/1/12 | 5,015 | 5,015 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York Urban Dev. Corp. Rev.: - continued | ||||
Series 2009 C: | ||||
5% 12/15/15 | $ 6,500 | $ 7,509 | ||
5% 12/15/16 | 17,000 | 20,173 | ||
Niagara County Indl. Dev. Agcy. Solid Waste Disp. Rev. Bonds Series 2001 C, 5.625%, tender 11/15/14 (b)(e) | 2,450 | 2,477 | ||
Tobacco Settlement Asset Securitization Corp. Series 2002-1, 5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) | 5,475 | 5,626 | ||
Tobacco Settlement Fing. Corp. Series 2011, 5% 6/1/16 | 20,000 | 22,955 | ||
Triborough Bridge & Tunnel Auth. Revs. Series Y, 5.5% 1/1/17 (Escrowed to Maturity) | 6,470 | 7,286 | ||
| 536,654 | |||
New York & New Jersey - 0.1% | ||||
Port Auth. of New York & New Jersey 124th Series, 5% 8/1/13 (FGIC Insured) (e) | 1,200 | 1,204 | ||
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (e) | 4,100 | 4,386 | ||
| 5,590 | |||
North Carolina - 1.1% | ||||
Charlotte-Mecklenburg Hosp. Auth. Health Care Sys. Rev. Series 2007 A, 5% 1/15/12 | 400 | 401 | ||
Mecklenburg County Pub. Facilities Corp. Series 2009: | ||||
5% 3/1/16 | 5,870 | 6,808 | ||
5% 3/1/18 | 1,500 | 1,822 | ||
Nash Health Care Sys. Health Care Facilities Rev. Series 2003: | ||||
5% 11/1/13 (FSA Insured) | 1,500 | 1,587 | ||
5% 11/1/15 (FSA Insured) | 1,600 | 1,747 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev. Series 2010 A: | ||||
5% 1/1/15 | 4,000 | 4,451 | ||
5% 1/1/16 | 6,035 | 6,885 | ||
North Carolina Grant Anticipation Rev. Series 2009, 5% 3/1/15 | 1,250 | 1,405 | ||
North Carolina Med. Care Commission Hosp. Rev. (North Carolina Baptist Hosp. Proj.) Series 2010: | ||||
5% 6/1/15 | 1,500 | 1,660 | ||
5% 6/1/16 | 1,000 | 1,125 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
North Carolina - continued | ||||
North Carolina Med. Care Commission Hosp. Rev. (North Carolina Baptist Hosp. Proj.) Series 2010: - continued | ||||
5% 6/1/17 | $ 3,220 | $ 3,667 | ||
5% 6/1/18 | 3,820 | 4,389 | ||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.: | ||||
Series 1998 A, 5.5% 1/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,675 | 4,148 | ||
Series 2008 A, 5.25% 1/1/20 | 2,000 | 2,359 | ||
6% 1/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,300 | 4,300 | ||
| 46,754 | |||
North Dakota - 0.0% | ||||
Grand Forks Health Care Sys. Rev. (Altru Health Sys. Proj.) Series 2005, 5% 12/1/15 (Assured Guaranty Corp. Insured) | 1,825 | 1,987 | ||
Ohio - 3.2% | ||||
Buckeye Tobacco Settlement Fing. Auth. Series 2007 A1: | ||||
5% 6/1/16 | 3,035 | 3,222 | ||
5% 6/1/17 | 3,500 | 3,707 | ||
Cincinnati City School District 5.25% 12/1/18 (FGIC Insured) | 3,555 | 4,379 | ||
Columbus City School District (School Facilities Construction and Impt. Proj.) Series 2009 B, 4% 12/1/16 | 1,000 | 1,128 | ||
Hamilton County Student Hsg. Rev. (Stratford Heights Proj.) Series 2010: | ||||
5% 6/1/15 (FSA Insured) | 760 | 837 | ||
5% 6/1/16 (FSA Insured) | 1,105 | 1,245 | ||
5% 6/1/17 (FSA Insured) | 1,160 | 1,328 | ||
Ohio Air Quality Dev. Auth. Rev. Bonds: | ||||
(FirstEnergy Nuclear Generation Corp. Proj.) Series 2008 C, 7.25%, tender 11/1/12 (b)(e) | 9,000 | 9,355 | ||
(Ohio Pwr. Co. Proj.) Series 2010 A, 3.25%, tender 6/2/14 (b) | 5,500 | 5,682 | ||
Ohio Bldg. Auth.: | ||||
(Administrative Bldg. Fund Proj.): | ||||
Series 2009 B: | ||||
5% 10/1/14 | 5,955 | 6,588 | ||
5% 10/1/15 | 6,505 | 7,391 | ||
Series 2010 C: | ||||
4% 10/1/15 | 3,200 | 3,507 | ||
5% 10/1/16 | 1,250 | 1,450 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Ohio - continued | ||||
Ohio Bldg. Auth.: - continued | ||||
(Adult Correctional Bldg. Fund Proj.): | ||||
Series 2009 B: | ||||
5% 10/1/14 | $ 2,055 | $ 2,274 | ||
5% 10/1/15 | 4,535 | 5,152 | ||
Series 2010 A, 5% 10/1/15 | 1,185 | 1,342 | ||
Ohio Gen. Oblig.: | ||||
(Common Schools Proj.): | ||||
Series 2010 A, 5% 9/15/17 | 2,600 | 3,142 | ||
Series 2010 B, 5% 9/15/15 | 19,080 | 21,886 | ||
(Higher Ed. Proj.): | ||||
Series 2005 C, 5% 8/1/13 | 4,495 | 4,819 | ||
Series 2010 A, 5% 8/1/17 | 3,290 | 3,964 | ||
Ohio Higher Edl. Facility Commission Rev.: | ||||
(Cleveland Clinic Foundation Proj.) Series 2008 A, 5% 1/1/15 | 2,000 | 2,200 | ||
(Univ. Hosp. Health Sys. Proj.) Series 2010 A: | ||||
5% 1/15/15 | 500 | 539 | ||
5% 1/15/17 | 1,000 | 1,102 | ||
Ohio Solid Waste Rev. Bonds (Republic Svcs., Inc. Proj.) 0.7%, tender 3/1/12 (b) | 12,000 | 12,000 | ||
Ohio State Univ. Gen. Receipts Series 2010 A, 5% 12/1/16 | 5,000 | 5,918 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Bonds: | ||||
(First Energy Nuclear Generation Corp. Proj.) Series 2005 B, 3.375%, tender 7/1/15 (b) | 5,000 | 5,113 | ||
(FirstEnergy Corp. Proj.) Series 2009 A, 5.875%, tender 6/1/16 (b) | 7,225 | 8,117 | ||
Ross County Hosp. Facilities Rev. (Adena Health Sys. Proj.) Series 2008: | ||||
5% 12/1/12 | 1,950 | 2,006 | ||
5% 12/1/13 | 875 | 921 | ||
5% 12/1/14 | 2,275 | 2,451 | ||
| 132,765 | |||
Oklahoma - 0.3% | ||||
Oklahoma Dev. Fin. Auth. (Pub. Svc. Co. of Oklahoma Proj.) Series 2009, 5.25% 6/1/14 | 2,700 | 2,912 | ||
Oklahoma Dev. Fin. Auth. Health Sys. Rev. (Integris Baptist Med. Ctr. Proj.) Series 2008 B, 5% 8/15/14 | 1,660 | 1,813 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Oklahoma - continued | ||||
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) Series 2007, 5% 2/15/13 | $ 35 | $ 36 | ||
Tulsa County Indl. Auth. Edl. Facilities Lease Rev. (Jenks Pub. Schools Proj.) Series 2009, 5.5% 9/1/18 | 5,215 | 6,376 | ||
| 11,137 | |||
Oregon - 0.4% | ||||
Clackamas County Hosp. Facility Auth. Bonds (Legacy Health Sys. Proj.) Series 2009 C, 5%, tender 7/15/14 (b) | 2,500 | 2,683 | ||
Gilliam County Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) Series 2000 A, 3.5%, tender 5/1/13 (b)(e) | 5,300 | 5,444 | ||
Oregon Facilities Auth. Rev. (Legacy Health Sys. Proj.) Series 2009 A: | ||||
5% 3/15/13 | 1,000 | 1,045 | ||
5% 3/15/14 | 595 | 638 | ||
5% 3/15/15 | 2,500 | 2,733 | ||
5% 3/15/16 | 1,750 | 1,951 | ||
| 14,494 | |||
Pennsylvania - 4.5% | ||||
Allegheny County Arpt. Auth. Rev. Series A: | ||||
5% 1/1/14 (FSA Insured) (e) | 1,350 | 1,401 | ||
5% 1/1/15 (FSA Insured) (e) | 1,000 | 1,069 | ||
5% 1/1/16 (FSA Insured) (e) | 1,000 | 1,083 | ||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (e) | 1,300 | 1,300 | ||
Allegheny County Hosp. Dev. Auth. Rev.: | ||||
(Pittsburgh Med. Ctr. Proj.): | ||||
Series 2008 A, 5% 9/1/12 | 6,615 | 6,814 | ||
Series 2008 B, 5% 6/15/14 | 1,385 | 1,506 | ||
(Univ. of Pittsburgh Med. Ctr. Proj.) Series 2009 A: | ||||
4% 8/15/15 | 1,385 | 1,498 | ||
5% 8/15/14 | 1,955 | 2,138 | ||
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.) Series 2005 A, 3.375%, tender 7/1/15 (b) | 2,000 | 2,045 | ||
Franklin County Indl. Dev. Auth. (The Chambersburg Hosp. Proj.) Series 2010: | ||||
5% 7/1/16 | 1,000 | 1,098 | ||
5% 7/1/17 | 1,255 | 1,378 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series 2009 A, 5% 6/1/17 | $ 2,200 | $ 2,443 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. Bonds (Exelon Generation Proj.) Series 2009 A, 5%, tender 6/1/12 (b) | 1,000 | 1,017 | ||
Pennsylvania Intergovernmental Coop. Auth. Spl. Tax Rev. (City of Philadelphia Fdg. Prog.) Series 2009, 5% 6/15/15 | 10,600 | 11,990 | ||
Pennsylvania Tpk. Commission Tpk. Rev. Series 2009 B, 5% 12/1/17 | 12,500 | 14,777 | ||
Philadelphia Gas Works Rev. (1998 Gen. Ordinance Proj.): | ||||
Eighth Series A, 5% 8/1/15 | 2,100 | 2,334 | ||
Seventh Series, 5% 10/1/12 (AMBAC Insured) | 1,000 | 1,031 | ||
Philadelphia Gen. Oblig.: | ||||
Series 2007 A, 5% 8/1/12 (FSA Insured) | 5,000 | 5,124 | ||
Series 2008 A: | ||||
5% 12/15/14 (FSA Insured) | 5,370 | 5,812 | ||
5% 12/15/15 (FSA Insured) | 5,000 | 5,494 | ||
5% 12/15/16 (FSA Insured) | 7,275 | 8,155 | ||
Series 2011: | ||||
4% 8/1/12 | 4,325 | 4,400 | ||
5.25% 8/1/17 | 6,165 | 6,963 | ||
5.25% 8/1/18 | 5,515 | 6,289 | ||
Philadelphia School District: | ||||
Series 2005 D, 5.25% 6/1/12 (FSA Insured) | 1,465 | 1,495 | ||
Series 2010 C: | ||||
5% 9/1/15 | 13,200 | 14,574 | ||
5% 9/1/16 | 13,610 | 15,198 | ||
Philadelphia Wtr. & Wastewtr. Rev. Series 2010 A: | ||||
5% 6/15/15 | 15,000 | 16,729 | ||
5% 6/15/16 | 6,000 | 6,888 | ||
Pittsburgh & Allegheny County Sports & Exhibition Auth. Series 2010: | ||||
5% 2/1/15 (FSA Insured) | 4,580 | 4,943 | ||
5% 2/1/16 (FSA Insured) | 5,620 | 6,188 | ||
Pittsburgh School District: | ||||
Series 2009 A: | ||||
3% 9/1/12 (Assured Guaranty Corp. Insured) | 1,300 | 1,317 | ||
3% 9/1/14 (Assured Guaranty Corp. Insured) | 1,640 | 1,702 | ||
Series 2010 A: | ||||
4% 9/1/15 (FSA Insured) | 1,450 | 1,564 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Pittsburgh School District: - continued | ||||
Series 2010 A: | ||||
5% 9/1/16 (FSA Insured) | $ 1,685 | $ 1,921 | ||
Saint Mary Hosp. Auth. Health Sys. Rev. (Catholic Health East Proj.) Series 2010 B: | ||||
5% 11/15/13 | 2,465 | 2,624 | ||
5% 11/15/14 | 4,690 | 5,100 | ||
5% 11/15/15 | 2,420 | 2,669 | ||
Southeastern Pennsylvania Trans. Auth. Rev. Series 2011: | ||||
5% 6/1/18 | 1,000 | 1,170 | ||
5% 6/1/19 | 200 | 236 | ||
Unionville-Chadds Ford School District Gen. Oblig. Series 2009, 5% 6/1/20 | 1,190 | 1,456 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) | 2,355 | 2,344 | ||
| 185,277 | |||
Puerto Rico - 0.3% | ||||
Puerto Rico Govt. Dev. Bank Series 2006 B, 5% 12/1/12 | 1,000 | 1,032 | ||
Puerto Rico Infrastructure Fin. Bonds (Port Auth. Proj.) Series 2011 C, 2.75%, tender 6/15/13 (b)(e) | 9,600 | 9,601 | ||
| 10,633 | |||
Rhode Island - 0.3% | ||||
Rhode Island & Providence Plantations Series 2010 A, 5% 10/1/12 | 2,250 | 2,328 | ||
Rhode Island Econ. Dev. Corp. Rev. (Dept. of Trans. Proj.) Series 2009 A: | ||||
5% 6/15/15 (Assured Guaranty Corp. Insured) | 2,010 | 2,240 | ||
5% 6/15/16 (Assured Guaranty Corp. Insured) | 6,625 | 7,575 | ||
| 12,143 | |||
South Carolina - 0.2% | ||||
Lexington County Health Svcs. District, Inc. Hosp. Rev. Series 2011: | ||||
3% 11/1/12 | 1,400 | 1,425 | ||
5% 11/1/19 | 1,190 | 1,374 | ||
South Carolina Jobs-Econ. Dev. Auth. (Anmed Health Proj.) Series 2010: | ||||
5% 2/1/16 | 2,000 | 2,201 | ||
5% 2/1/17 | 2,300 | 2,540 | ||
| 7,540 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
South Dakota - 0.2% | ||||
South Dakota Health & Edl. Facilities Auth. Rev.: | ||||
(Reg'l. Health Proj.) Series 2010: | ||||
5% 9/1/14 | $ 625 | $ 681 | ||
5% 9/1/15 | 680 | 753 | ||
5% 9/1/16 | 500 | 562 | ||
5% 9/1/17 | 490 | 558 | ||
Series 2011: | ||||
5% 9/1/17 | 1,100 | 1,253 | ||
5% 9/1/18 | 1,200 | 1,369 | ||
5% 9/1/19 | 1,255 | 1,434 | ||
| 6,610 | |||
Tennessee - 0.4% | ||||
Jackson Hosp. Rev. (Jackson-Madison County Gen. Hosp. Proj.) Series 2008, 5% 4/1/13 | 1,000 | 1,041 | ||
Memphis Elec. Sys. Rev. 5% 12/1/14 | 5,000 | 5,568 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series 2010 B, 5% 7/1/16 (e) | 1,730 | 1,916 | ||
Metropolitan Nashville Arpt. Auth. Rev. Series 2010 A: | ||||
5% 7/1/16 | 1,815 | 2,050 | ||
5% 7/1/17 | 1,100 | 1,265 | ||
Shelby County Health Edl. & Hsg. Facilities Board Rev. Series 2004 A, 5% 9/1/15 | 3,125 | 3,470 | ||
| 15,310 | |||
Texas - 5.7% | ||||
Austin Cmnty. College District Pub. Facilities Lease Rev. (Round Rock Campus Proj.) Series 2008, 5.25% 8/1/15 | 2,585 | 2,936 | ||
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.): | ||||
Series 2006 A, 6% 1/1/14 | 1,420 | 1,452 | ||
Series 2006 B: | ||||
6% 1/1/12 | 500 | 500 | ||
6% 1/1/13 | 1,270 | 1,286 | ||
Austin Elec. Util. Sys. Rev.: | ||||
Series A, 5% 11/15/15 | 1,000 | 1,142 | ||
0% 5/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,500 | 3,745 | ||
Austin Independent School District Series 2004, 5% 8/1/17 | 1,450 | 1,757 | ||
Austin Wtr. & Wastewtr. Sys. Rev. Series 2009 A, 5% 11/15/15 | 2,250 | 2,582 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Brownsville Util. Sys. Rev. Series 2008 A, 5% 9/1/15 (FSA Insured) | $ 2,665 | $ 3,024 | ||
Carroll Independent School District Series 2009 C, 5.25% 2/15/19 | 1,000 | 1,250 | ||
Corpus Christi Independent School District 4% 8/15/14 | 10,140 | 10,982 | ||
Dallas Fort Worth Int'l. Arpt. Rev. Series 2009 A: | ||||
5% 11/1/14 | 2,500 | 2,765 | ||
5% 11/1/15 | 5,000 | 5,672 | ||
Dallas Wtrwks. & Swr. Sys. Rev. Series 2011, 5% 10/1/18 | 1,600 | 1,969 | ||
Fort Worth Independent School District: | ||||
Series 2005, 5% 2/15/12 | 1,500 | 1,508 | ||
Series 2009, 5% 2/15/16 | 3,690 | 4,302 | ||
Frisco Gen. Oblig. Series 2004, 5.25% 2/15/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,380 | 1,512 | ||
Grapevine Gen. Oblig.: | ||||
Series 2009 A, 5% 2/15/15 | 2,215 | 2,484 | ||
Series 2009, 5% 2/15/16 | 1,375 | 1,592 | ||
Harris County Cultural Ed. Facilities Fin. Corp. Thermal Util. Rev. (TECO Proj.) Series 2009 A: | ||||
5% 11/15/12 | 1,000 | 1,036 | ||
5% 11/15/14 | 1,000 | 1,099 | ||
5% 11/15/16 | 500 | 576 | ||
Harris County Gen. Oblig. (Road Proj.) Series 2008 B: | ||||
5% 8/15/13 | 1,000 | 1,070 | ||
5% 8/15/14 | 1,075 | 1,190 | ||
Houston Arpt. Sys. Rev.: | ||||
Series 2011 A, 5% 7/1/17 (e) | 7,380 | 8,289 | ||
Series 2011 B, 3% 7/1/12 | 1,540 | 1,557 | ||
Series A: | ||||
5% 7/1/15 | 2,070 | 2,321 | ||
5% 7/1/16 | 1,080 | 1,244 | ||
Houston Cmnty. College Sys. Rev. Series 2005, 5.25% 4/15/12 (FSA Insured) | 2,000 | 2,028 | ||
Houston Gen. Oblig.: | ||||
Series 2004 A, 5.25% 3/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,855 | 3,134 | ||
Series 2007 B, 5% 3/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,575 | 3,602 | ||
Series A, 5% 3/1/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,500 | 7,897 | ||
Houston Independent School District Series 2005 A, 0% 2/15/16 | 4,500 | 4,274 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Humble Independent School District Series 2009, 4% 2/15/13 | $ 400 | $ 416 | ||
Katy Independent School District Series A, 5.25% 2/15/12 | 2,000 | 2,011 | ||
Keller Independent School District 5% 2/15/14 | 3,750 | 4,075 | ||
Klein Independent School District Series 2009 A, 5% 8/1/16 | 2,195 | 2,589 | ||
Leander Independent School District Series 2001, 6% 8/15/14 | 1,850 | 2,102 | ||
Lewisville Independent School District Series 2009, 5% 8/15/17 | 1,170 | 1,408 | ||
Lone Star College Sys. Gen. Oblig. Series 2010 A, 5% 8/15/22 | 2,500 | 2,560 | ||
Lower Colorado River Auth. Rev. Series 2010: | ||||
5% 5/15/15 | 2,125 | 2,395 | ||
5% 5/15/16 | 2,360 | 2,739 | ||
5% 5/15/17 | 2,805 | 3,309 | ||
Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission Svcs. Corp. Proj.) Series 2010, 5% 5/15/18 | 3,140 | 3,762 | ||
Lubbock Gen. Oblig. Series 2005, 5% 2/15/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,850 | 1,946 | ||
Lubbock Health Facilities Dev. Corp. Rev. (St. Joseph Health Sys. Proj.) Series 2008 B: | ||||
5% 7/1/17 | 2,800 | 3,171 | ||
5% 7/1/18 | 3,030 | 3,471 | ||
Mansfield Independent School District Series 2009, 4% 2/15/17 | 1,840 | 2,090 | ||
Matagorda County Navigation District No. 1 Poll. Cont. Rev. Bonds (AEP Texas Central Co. Proj.) Series 2008, 1.125%, tender 6/1/12 (b) | 2,525 | 2,527 | ||
Mission Econ. Dev. Corp. Solid Waste Disp. Rev. Bonds (Republic Svcs., Inc. Proj.) Series 2008 A, 1.05%, tender 1/3/12 (b) | 5,800 | 5,800 | ||
North Texas Tollway Auth. Rev.: | ||||
Bonds Series 2008 H2, 5%, tender 1/1/13 (b) | 5,000 | 5,204 | ||
Series 2010 B1, 3.2% 1/1/13 | 2,275 | 2,330 | ||
Northside Independent School District Bonds 1.5%, tender 8/1/12 (b) | 12,500 | 12,571 | ||
San Antonio Muni. Drainage Util. Sys. Rev. Series 2005, 5.25% 2/1/12 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,545 | 1,551 | ||
San Jacinto Cmnty. College District Series 2009: | ||||
5% 2/15/15 | 2,220 | 2,467 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
San Jacinto Cmnty. College District Series 2009: - continued | ||||
5% 2/15/15 (Escrowed to Maturity) | $ 280 | $ 318 | ||
5% 2/15/16 | 2,000 | 2,280 | ||
Southwest Higher Ed. Auth. Rev. (Southern Methodist Univ. Proj.) Series 2009, 5% 10/1/16 | 5,795 | 6,734 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Hosp. Rev. (Baylor Health Care Sys. Proj.) Series 2009, 5% 11/15/12 | 1,950 | 2,022 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Rev. (Christus Health Proj.) Series 2008 A, 5.75% 7/1/18 (Assured Guaranty Corp. Insured) | 4,685 | 5,112 | ||
Texas Gen. Oblig.: | ||||
Series 2011 B, 2% 8/1/12 (e) | 3,365 | 3,396 | ||
Series B, 0% 10/1/13 | 6,500 | 6,345 | ||
Texas Muni. Pwr. Agcy. Rev. Series 2010: | ||||
4% 9/1/14 | 1,000 | 1,071 | ||
5% 9/1/15 | 835 | 941 | ||
5% 9/1/16 | 750 | 864 | ||
Texas Pub. Fin. Auth. Rev. Series 2010 A, 5% 1/1/16 | 7,865 | 9,089 | ||
Texas Trans. Commission State Hwy. Fund Rev. Series 2007, 5% 4/1/12 | 4,000 | 4,046 | ||
Tomball Independent School District 5% 2/15/17 (Assured Guaranty Corp. Insured) | 1,105 | 1,304 | ||
Travis County Gen. Oblig. 5.25% 3/1/12 | 4,125 | 4,158 | ||
Trinity River Auth. Reg'l. Wastewtr. Sys. Rev. Series 2008, 5% 8/1/13 | 6,135 | 6,577 | ||
Univ. of North Texas Univ. Rev. Series A, 5% 4/15/14 | 1,000 | 1,097 | ||
Univ. of Texas Board of Regents Sys. Rev.: | ||||
Series 2003 B, 5% 8/15/33 (Pre-Refunded to 8/15/13 @ 100) | 15,000 | 16,094 | ||
Series 2010 B, 5% 8/15/21 | 1,800 | 2,277 | ||
| 235,996 | |||
Utah - 0.2% | ||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | ||||
0% 10/1/12 (AMBAC Insured) | 3,800 | 3,760 | ||
0% 10/1/13 (AMBAC Insured) | 3,760 | 3,652 | ||
| 7,412 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Vermont - 0.1% | ||||
Vermont Edl. & Health Bldg. Fin. Agcy. Rev. (Fletcher Allen Health Care Proj.) Series 2004 B, 5% 12/1/15 (FSA Insured) | $ 2,225 | $ 2,420 | ||
Virgin Islands - 0.1% | ||||
Virgin Islands Pub. Fin. Auth. Series 2009 B, 5% 10/1/15 | 5,000 | 5,458 | ||
Virginia - 0.4% | ||||
Amelia County Indl. Dev. Auth. Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) 3.375%, tender 4/1/13 (b)(e) | 5,900 | 6,041 | ||
Chesapeake Econ. Dev. Auth. Poll. Cont. Rev. Bonds (Elec. & Pwr. Co. Proj.) Series 2008 A, 3.6%, tender 2/1/13 (b) | 1,800 | 1,832 | ||
Louisa Indl. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. & Pwr. Co. Proj.) Series 2008 B, 5.375%, tender 12/2/13 (b) | 8,000 | 8,658 | ||
York County Econ. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. and Pwr. Co. Proj.) Series 2009 A, 4.05%, tender 5/1/14 (b) | 1,800 | 1,895 | ||
| 18,426 | |||
Washington - 1.7% | ||||
Energy Northwest Elec. Rev.: | ||||
(#3 Proj.) Series 2009 A, 5% 7/1/14 | 4,000 | 4,419 | ||
Series 2012 A, 5% 7/1/19 (a) | 30,000 | 36,063 | ||
King County Highline School District # 401 Series 2009: | ||||
5% 12/1/16 | 6,350 | 7,440 | ||
5% 12/1/17 | 2,950 | 3,533 | ||
Port of Seattle Passenger Facilities Charge Rev. Series 2010 B, 5% 12/1/16 (e) | 2,500 | 2,816 | ||
Port of Seattle Rev.: | ||||
Series 2001 D, 5.75% 11/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (e) | 3,640 | 3,766 | ||
Series 2010 C: | ||||
5% 2/1/16 (e) | 2,000 | 2,229 | ||
5% 2/1/17 (e) | 2,500 | 2,834 | ||
Seattle Muni. Lt. & Pwr. Rev. Series 2010 B, 5% 2/1/17 | 2,000 | 2,378 | ||
Spokane County Wastewtr. Sys. Rev. Series 2009 A, 5% 12/1/15 | 1,710 | 1,961 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Washington - continued | ||||
Washington Health Care Facilities Auth. Rev. (MultiCare Health Sys. Proj.) Series 2010 A: | ||||
5% 8/15/13 | $ 2,000 | $ 2,105 | ||
5% 8/15/14 | 2,000 | 2,137 | ||
| 71,681 | |||
West Virginia - 0.3% | ||||
West Virginia Econ. Dev. Auth. Solid Waste Disp. Facilities Rev. Bonds Series 2011 A, 2%, tender 8/1/12 (b)(e) | 13,000 | 13,064 | ||
Wisconsin - 1.2% | ||||
Milwaukee County Arpt. Rev. Series 2010 B, 5% 12/1/15 (e) | 1,720 | 1,889 | ||
Wisconsin Gen. Oblig.: | ||||
Series 2005 1, 5% 5/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,325 | 7,183 | ||
Series 2009 C, 4% 5/1/14 | 3,365 | 3,624 | ||
Series 2010 1: | ||||
5% 5/1/14 | 5,750 | 6,326 | ||
5% 5/1/15 | 8,005 | 9,091 | ||
5% 5/1/16 | 10,000 | 11,702 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Agnesian HealthCare, Inc. Proj.) Series 2010, 5% 7/1/16 | 1,175 | 1,253 | ||
(Aurora Health Care, Inc. Proj.) Series 2010 A, 5% 4/15/17 | 1,500 | 1,658 | ||
(Marshfield Clinic Proj.) Series 2006 A, 5% 2/15/13 | 875 | 909 | ||
(Thedacare, Inc. Proj.) Series 2010: | ||||
4% 12/15/13 | 1,035 | 1,081 | ||
5% 12/15/15 | 1,105 | 1,214 | ||
5% 12/15/16 | 1,440 | 1,604 | ||
5% 12/15/17 | 1,540 | 1,735 | ||
| 49,269 | |||
TOTAL MUNICIPAL BONDS (Cost $3,389,805) |
|
Municipal Notes - 0.3% | |||
|
|
|
|
New York - 0.3% | |||
Suffolk County Gen. Oblig. TAN Series 2012 II, 2% 7/12/12 (a) | 11,800 |
| |
Money Market Funds - 3.9% | |||
Shares | Value (000s) | ||
Fidelity Municipal Cash Central Fund, 0.10% (c)(d) | 160,467,900 | $ 160,468 | |
TOTAL INVESTMENT PORTFOLIO - 89.8% (Cost $3,562,129) | 3,698,535 | ||
NET OTHER ASSETS (LIABILITIES) - 10.2% | 418,864 | ||
NET ASSETS - 100% | $ 4,117,399 |
Security Type Abbreviations | ||
TAN | - | TAX ANTICIPATION NOTE |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(c) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(d) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Municipal Cash Central Fund | $ 296 |
Other Information |
The following is a summary of the inputs used, as of December 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Municipal Securities | $ 3,538,067 | $ - | $ 3,538,067 | $ - |
Money Market Funds | 160,468 | 160,468 | - | - |
Total Investments in Securities: | $ 3,698,535 | $ 160,468 | $ 3,538,067 | $ - |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 34.0% |
Electric Utilities | 13.4% |
Special Tax | 10.5% |
Health Care | 9.8% |
Transportation | 5.0% |
Others (Individually Less Than 5%) | 12.9% |
Short-Term Investments and Net | 14.4% |
| 100.0% |
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, 2011 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $3,401,661) | $ 3,538,067 |
|
Fidelity Central Funds (cost $160,468) | 160,468 |
|
Total Investments (cost $3,562,129) |
| $ 3,698,535 |
Cash |
| 422,132 |
Receivable for fund shares sold | 11,498 | |
Interest receivable | 39,750 | |
Distributions receivable from Fidelity Central Funds | 14 | |
Prepaid expenses | 9 | |
Other receivables | 16 | |
Total assets | 4,171,954 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 2,900 | |
Delayed delivery | 45,015 | |
Payable for fund shares redeemed | 2,514 | |
Distributions payable | 1,964 | |
Accrued management fee | 1,244 | |
Distribution and service plan fees payable | 137 | |
Other affiliated payables | 736 | |
Other payables and accrued expenses | 45 | |
Total liabilities | 54,555 | |
|
|
|
Net Assets | $ 4,117,399 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,983,909 | |
Distributions in excess of net investment income | (2,916) | |
Net unrealized appreciation (depreciation) on investments | 136,406 | |
Net Assets | $ 4,117,399 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2011 | |
|
|
|
Calculation of Maximum Offering Price | $ 10.83 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.83) | $ 11.14 | |
Class T: | $ 10.81 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.81) | $ 11.12 | |
Class B: | $ 10.82 | |
|
|
|
Class C: | $ 10.81 | |
|
|
|
Short-Intermediate Municipal Income: | $ 10.81 | |
|
|
|
Institutional Class: | $ 10.81 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended December 31, 2011 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 99,904 |
Income from Fidelity Central Funds |
| 296 |
Total income |
| 100,200 |
|
|
|
Expenses | ||
Management fee | $ 14,009 | |
Transfer agent fees | 3,610 | |
Distribution and service plan fees | 1,353 | |
Accounting fees and expenses | 611 | |
Custodian fees and expenses | 43 | |
Independent trustees' compensation | 14 | |
Registration fees | 206 | |
Audit | 54 | |
Legal | 11 | |
Miscellaneous | 40 | |
Total expenses before reductions | 19,951 | |
Expense reductions | (91) | 19,860 |
Net investment income (loss) | 80,340 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 2,116 | |
Change in net unrealized appreciation (depreciation) on investment securities | 76,652 | |
Net gain (loss) | 78,768 | |
Net increase (decrease) in net assets resulting from operations | $ 159,108 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 80,340 | $ 87,857 |
Net realized gain (loss) | 2,116 | 4,561 |
Change in net unrealized appreciation (depreciation) | 76,652 | (16,570) |
Net increase (decrease) in net assets resulting | 159,108 | 75,848 |
Distributions to shareholders from net investment income | (83,163) | (87,839) |
Distributions to shareholders from net realized gain | (2,965) | (1,494) |
Total distributions | (86,128) | (89,333) |
Share transactions - net increase (decrease) | 142,426 | 419,774 |
Redemption fees | 46 | 105 |
Total increase (decrease) in net assets | 215,452 | 406,394 |
|
|
|
Net Assets | ||
Beginning of period | 3,901,947 | 3,495,553 |
End of period (including distributions in excess of net investment income of $2,916 and distributions in excess of net investment income of $79, respectively) | $ 4,117,399 | $ 3,901,947 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.62 | $ 10.64 | $ 10.35 | $ 10.33 | $ 10.21 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .198 | .209 | .254 | .298 | .302 |
Net realized and unrealized gain (loss) | .225 | (.016) | .294 | .021 | .118 |
Total from investment operations | .423 | .193 | .548 | .319 | .420 |
Distributions from net investment income | (.205) | (.209) | (.258) | (.300) | (.300) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.213) | (.213) | (.258) | (.300) | (.300) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.83 | $ 10.62 | $ 10.64 | $ 10.35 | $ 10.33 |
Total Return A,B | 4.03% | 1.81% | 5.34% | 3.13% | 4.19% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | .77% | .78% | .79% | .75% | .71% |
Expenses net of fee waivers, if any | .77% | .78% | .78% | .75% | .71% |
Expenses net of all reductions | .77% | .77% | .78% | .72% | .64% |
Net investment income (loss) | 1.85% | 1.95% | 2.41% | 2.90% | 2.95% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 336 | $ 200 | $ 169 | $ 58 | $ 12 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 | $ 10.19 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .199 | .211 | .255 | .300 | .297 |
Net realized and unrealized gain (loss) | .226 | (.026) | .294 | .029 | .120 |
Total from investment operations | .425 | .185 | .549 | .329 | .417 |
Distributions from net investment income | (.207) | (.211) | (.259) | (.300) | (.297) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.215) | (.215) | (.259) | (.300) | (.297) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.81 | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 |
Total Return A,B | 4.05% | 1.74% | 5.36% | 3.24% | 4.17% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | .76% | .76% | .77% | .74% | .74% |
Expenses net of fee waivers, if any | .76% | .76% | .77% | .74% | .74% |
Expenses net of all reductions | .76% | .75% | .77% | .72% | .69% |
Net investment income (loss) | 1.86% | 1.97% | 2.42% | 2.90% | 2.91% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 26 | $ 24 | $ 23 | $ 15 | $ 10 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.61 | $ 10.64 | $ 10.35 | $ 10.32 | $ 10.20 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .128 | .139 | .186 | .230 | .228 |
Net realized and unrealized gain (loss) | .226 | (.026) | .293 | .029 | .121 |
Total from investment operations | .354 | .113 | .479 | .259 | .349 |
Distributions from net investment income | (.136) | (.139) | (.189) | (.230) | (.229) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.144) | (.143) | (.189) | (.230) | (.229) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.82 | $ 10.61 | $ 10.64 | $ 10.35 | $ 10.32 |
Total Return A,B | 3.36% | 1.06% | 4.66% | 2.54% | 3.47% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | 1.43% | 1.44% | 1.46% | 1.43% | 1.41% |
Expenses net of fee waivers, if any | 1.42% | 1.43% | 1.43% | 1.43% | 1.41% |
Expenses net of all reductions | 1.42% | 1.42% | 1.43% | 1.40% | 1.36% |
Net investment income (loss) | 1.19% | 1.30% | 1.77% | 2.22% | 2.23% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 2 | $ 2 | $ 3 | $ 2 | $ 1 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.60 | $ 10.63 | $ 10.33 | $ 10.31 | $ 10.19 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .117 | .129 | .175 | .220 | .219 |
Net realized and unrealized gain (loss) | .226 | (.026) | .303 | .020 | .120 |
Total from investment operations | .343 | .103 | .478 | .240 | .339 |
Distributions from net investment income | (.125) | (.129) | (.178) | (.221) | (.219) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.133) | (.133) | (.178) | (.221) | (.219) |
Redemption fees added to paid in capital C | - G | - G | - G | .001 | - G |
Net asset value, end of period | $ 10.81 | $ 10.60 | $ 10.63 | $ 10.33 | $ 10.31 |
Total Return A,B | 3.25% | .96% | 4.66% | 2.35% | 3.37% |
Ratios to Average Net Assets D,F |
|
|
|
|
|
Expenses before reductions | 1.53% | 1.52% | 1.53% | 1.50% | 1.51% |
Expenses net of fee waivers, if any | 1.53% | 1.52% | 1.53% | 1.50% | 1.51% |
Expenses net of all reductions | 1.52% | 1.52% | 1.53% | 1.48% | 1.45% |
Net investment income (loss) | 1.09% | 1.20% | 1.67% | 2.14% | 2.14% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 79 | $ 77 | $ 56 | $ 20 | $ 6 |
Portfolio turnover rate E | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Short-Intermediate Municipal Income
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 | $ 10.19 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .228 | .240 | .284 | .326 | .323 |
Net realized and unrealized gain (loss) | .227 | (.026) | .293 | .029 | .120 |
Total from investment operations | .455 | .214 | .577 | .355 | .443 |
Distributions from net investment income | (.237) | (.240) | (.287) | (.326) | (.323) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.245) | (.244) | (.287) | (.326) | (.323) |
Redemption fees added to paid in capital B | - F | - F | - F | .001 | - F |
Net asset value, end of period | $ 10.81 | $ 10.60 | $ 10.63 | $ 10.34 | $ 10.31 |
Total Return A | 4.34% | 2.02% | 5.64% | 3.50% | 4.43% |
Ratios to Average Net Assets C,E |
|
|
|
|
|
Expenses before reductions | .48% | .48% | .50% | .49% | .49% |
Expenses net of fee waivers, if any | .48% | .48% | .50% | .49% | .49% |
Expenses net of all reductions | .48% | .48% | .50% | .47% | .43% |
Net investment income (loss) | 2.14% | 2.24% | 2.69% | 3.15% | 3.17% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,523 | $ 3,456 | $ 3,153 | $ 1,870 | $ 1,650 |
Portfolio turnover rate D | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.61 | $ 10.63 | $ 10.34 | $ 10.32 | $ 10.20 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .224 | .235 | .281 | .321 | .320 |
Net realized and unrealized gain (loss) | .216 | (.015) | .293 | .022 | .120 |
Total from investment operations | .440 | .220 | .574 | .343 | .440 |
Distributions from net investment income | (.232) | (.236) | (.284) | (.324) | (.320) |
Distributions from net realized gain | (.008) | (.004) | - | - | - |
Total distributions | (.240) | (.240) | (.284) | (.324) | (.320) |
Redemption fees added to paid in capital B | - F | - F | - F | .001 | - F |
Net asset value, end of period | $ 10.81 | $ 10.61 | $ 10.63 | $ 10.34 | $ 10.32 |
Total Return A | 4.19% | 2.07% | 5.61% | 3.38% | 4.39% |
Ratios to Average Net Assets C,E |
|
|
|
|
|
Expenses before reductions | .52% | .53% | .55% | .51% | .52% |
Expenses net of fee waivers, if any | .52% | .53% | .53% | .51% | .52% |
Expenses net of all reductions | .52% | .52% | .53% | .49% | .45% |
Net investment income (loss) | 2.09% | 2.20% | 2.66% | 3.13% | 3.14% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 152 | $ 142 | $ 92 | $ 32 | $ 5 |
Portfolio turnover rate D | 22% | 15% | 8% | 20% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2011
(Amounts in thousands except percentages)
1. Organization.
Fidelity Short-Intermediate Municipal Income Fund (the Fund) is a fund of Fidelity Municipal Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Short-Intermediate Municipal Income and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments by existing shareholders. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
Annual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2011 for the Fund's investments, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For municipal securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Security Valuation - continued
pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially 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. As of December 31, 2011, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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 deferred trustees compensation.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the IRS will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 139,113 |
Gross unrealized depreciation | (2,707) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 136,406 |
|
|
Tax Cost | $ 3,562,129 |
The tax-based components of distributable earnings as of period end were as follows:
Net unrealized appreciation (depreciation) | $ 136,406 |
The tax character of distributions paid was as follows:
| December 31, 2011 | December 31, 2010 |
Tax-exempt Income | $ 83,163 | $ 87,839 |
Long-term Capital Gains | 2,965 | 1,494 |
Total | $ 86,128 | $ 89,333 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
4. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. 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 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $828,471 and $771,247, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and an annualized group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of 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, total fees and amounts retained by FDC were as follows:
Annual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 556 | $ 59 |
Class T | -% | .25% | 61 | - |
Class B | .65% | .25% | 19 | 14 |
Class C | .75% | .25% | 717 | 207 |
|
|
| $ 1,353 | $ 280 |
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 3.00% to 1.00% for Class B, 1.00% for Class C, .75% or .50% for certain purchases of Class A shares (.75% prior to February 18, 2011) and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 69 |
Class T | 2 |
Class B* | 8 |
Class C* | 26 |
| $ 105 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and servicing agent for the Fund's Class A, Class T, Class B, Class C, 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, to perform the transfer agency, dividend disbursing, and shareholder servicing functions. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees - continued
| Amount | % of |
Class A | $ 288 | .13 |
Class T | 29 | .12 |
Class B | 3 | .14 |
Class C | 102 | .14 |
Short-Intermediate Municipal Income | 3,002 | .09 |
Institutional Class | 186 | .13 |
| $ 3,610 |
|
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $12 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Annual Report
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | .78% | $ 1 |
Class T | .78% | -* |
Class B | 1.43% | -* |
Class C | 1.53% | 6 |
Institutional Class | .53% | 3 |
|
| $ 10 |
* Amount of reimbursement for Class T totaled twenty-three dollars; Class B totaled one hundred seventy-five dollars.
** Effective March 1, 2011 the expense limitations were eliminated.
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $41 and $40, respectively.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | 2011 | 2010 |
From net investment income |
|
|
Class A | $ 4,211 | $ 4,283 |
Class T | 467 | 469 |
Class B | 27 | 37 |
Class C | 838 | 856 |
Short-Intermediate Municipal Income | 74,599 | 79,576 |
Institutional Class | 3,021 | 2,618 |
Total | $ 83,163 | $ 87,839 |
From net realized gain |
|
|
Class A | $ 216 | $ 83 |
Class T | 19 | 9 |
Class B | 1 | 1 |
Class C | 57 | 29 |
Short-Intermediate Municipal Income | 2,565 | 1,318 |
Institutional Class | 107 | 54 |
Total | $ 2,965 | $ 1,494 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Years ended December 31, | 2011 | 2010 | 2011 | 2010 |
Class A |
|
|
|
|
Shares sold | 22,096 | 15,494 | $ 237,519 | $ 165,921 |
Reinvestment of distributions | 303 | 294 | 3,252 | 3,153 |
Shares redeemed | (10,223) | (12,806) | (109,361) | (137,046) |
Net increase (decrease) | 12,176 | 2,982 | $ 131,410 | $ 32,028 |
Class T |
|
|
|
|
Shares sold | 881 | 579 | $ 9,442 | $ 6,203 |
Reinvestment of distributions | 35 | 32 | 373 | 346 |
Shares redeemed | (774) | (500) | (8,240) | (5,341) |
Net increase (decrease) | 142 | 111 | $ 1,575 | $ 1,208 |
Class B |
|
|
|
|
Shares sold | 27 | 66 | $ 297 | $ 702 |
Reinvestment of distributions | 2 | 2 | 19 | 26 |
Shares redeemed | (114) | (117) | (1,225) | (1,248) |
Net increase (decrease) | (85) | (49) | $ (909) | $ (520) |
Class C |
|
|
|
|
Shares sold | 2,509 | 3,620 | $ 26,904 | $ 38,700 |
Reinvestment of distributions | 62 | 60 | 661 | 637 |
Shares redeemed | (2,549) | (1,682) | (27,188) | (17,979) |
Net increase (decrease) | 22 | 1,998 | $ 377 | $ 21,358 |
Short-Intermediate Municipal Income |
|
|
|
|
Shares sold | 106,091 | 146,127 | $ 1,133,522 | $ 1,562,445 |
Reinvestment of distributions | 5,180 | 5,652 | 55,411 | 60,463 |
Shares redeemed | (111,332) | (122,431) | (1,186,447) | (1,307,777) |
Net increase (decrease) | (61) | 29,348 | $ 2,486 | $ 315,131 |
Institutional Class |
|
|
|
|
Shares sold | 8,223 | 11,870 | $ 87,964 | $ 126,978 |
Reinvestment of distributions | 115 | 94 | 1,228 | 1,007 |
Shares redeemed | (7,651) | (7,242) | (81,705) | (77,416) |
Net increase (decrease) | 687 | 4,722 | $ 7,487 | $ 50,569 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Short-Intermediate Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Short-Intermediate Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity 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, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 15, 2012
Annual Report
Trustees and Officers
The Trustees 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 203 funds advised by FMR or an affiliate. Mr. Curvey oversees 429 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Kenneth L. Wolfe serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
Trustees and Officers - continued
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Abigail P. Johnson (50) | |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (76) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of Fidelity Investments Money Management, Inc. (2009-present), Director of Fidelity Research & Analysis Co. (2009-present) and Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
Annual Report
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupations and Other Relevant Experience+ | |
Albert R. Gamper, Jr. (69) | |
| Year of Election or Appointment: 2006 Mr. Gamper is Vice Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2011-present). Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. Previously, Mr. Gamper served as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (60) | |
| Year of Election or Appointment: 2010 Mr. Gartland is a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-present) and is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (64) | |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Mr. Edward C. Johnson 3d or Ms. Abigail P. Johnson. |
Michael E. Kenneally (57) | |
| Year of Election or Appointment: 2009 Previously, Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity Fixed Income and Asset Allocation Funds (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of the Credit Suisse Funds (U.S. mutual funds, 2004-2008) and certain other closed-end funds (2004-2005) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (71) | |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, since 1998). Prior to his retirement, Mr. Keyes served as Chairman and Chief Executive Officer of Johnson Controls (automotive, building, and energy, 1998-2002) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (65) | |
| 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. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (72) | |
| Year of Election or Appointment: 2006 Mr. Wolfe is Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2008-present). Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Annual Report
Trustees and Officers - continued
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
John R. Hebble (53) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Hebble also serves as President (2011-present), Treasurer, and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present), Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments. |
Christopher P. Sullivan (57) | |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Bond Funds. Mr. Sullivan also serves as President of Fidelity's Bond Division (2009-present). Mr. Sullivan is Executive Vice President of Fidelity Investments Money Management, Inc. (2009-present), and a Director of Fidelity Management & Research (U.K.) Inc. (2010-present). Previously, Mr. Sullivan served as Managing Director, Co-Head of U.S. Fixed Income at Goldman Sachs Asset Management (2001-2009). |
Christine J. Thompson (53) | |
| Year of Election or Appointment: 2010 Vice President of Fidelity's Bond Funds. Ms. Thompson also serves as Chief Investment Officer of FMR's Bond Group (2010-present) and is an employee of Fidelity Investments. Previously, Ms. Thompson served as Director of Municipal Bond Portfolio Managers (2002-2010). |
Scott C. Goebel (43) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as Secretary of Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); Secretary and CLO of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); employed by FMR LLC or an affiliate (2001-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
David J. Carter (38) | |
| Year of Election or Appointment: 2010 Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Carter also serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2005-present). |
Holly C. Laurent (57) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent also serves as AML Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present) and is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (53) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (44) | |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker also serves as Chief Compliance Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present). Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Jeffrey S. Christian (50) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009). |
Joseph F. Zambello (54) | |
| Year of Election or Appointment: 2011 Deputy Treasurer of the Fidelity funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Stephanie J. Dorsey (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey also serves as Assistant Treasurer of other Fidelity funds (2010-present) and is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Adrien E. Deberghes (44) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Deberghes also serves as Vice President and Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II (2011-present), Deputy Treasurer of other Fidelity funds (2008-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Kenneth B. Robins (42) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds (2008-present; 2010-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Deputy Treasurer of the Fidelity funds (2005-2008) and Treasurer and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2006-2008). |
Gary W. Ryan (53) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Jonathan Davis (43) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of the Fidelity funds. Mr. Davis is also Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Annual Report
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended 12/31/2011, $2,116,359 or, if subsequently determined to be different, the net capital gain of such year.
During fiscal year ended 2011, 100% of the fund's income dividends was free from federal income tax, and 5.05% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2012 of amounts for use in preparing 2011 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Short-Intermediate Municipal Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Nominating of Governance, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2011 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has devoted increased resources to non-U.S. offices. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities which allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and enhancers. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools which permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading capabilities and resources which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers, with 35 new branches opening since 2010.
Annual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) rationalizing product lines through the mergers of six funds into other funds; (iii) continuing to migrate the Freedom Funds to dedicated lower cost underlying funds; (iv) obtaining shareholder approval to broaden the investment strategies for Fidelity Consumer Finance Portfolio, Fidelity Emerging Asia Fund, and Fidelity Environment and Alternative Energy Portfolio; (v) contractually agreeing to reduce the management fees and impose other expense limitations on Spartan 500 Index Fund and U.S. Bond Index Fund in connection with launching new institutional classes of these funds; (vi) changing the name, primary and supplemental benchmarks, and investment policies of Fidelity Global Strategies Fund to support the fund's flexible investment mandate and global orientation; and (vii) reducing the transfer agency account fee rates on certain accounts.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2010, the cumulative total returns of the retail class and Class C of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of the retail class and Class C show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Short-Intermediate Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the second quartile for all the periods shown. The Board also noted that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to improve the fund's below-benchmark performance. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 22% means that 78% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Annual Report
Fidelity Short-Intermediate Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2010.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current and historical total expense ratios of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the total expense ratio of each of Class B and the retail class ranked below its competitive median for 2010, the total expense ratio of Class T ranked equal to its competitive median for 2010, and the total expense ratio of each of Class A, Class C, and Institutional Class ranked above its competitive median for 2010. The Board considered that various factors, including 12b-1 fees and relatively higher other expenses in the case of small fund size, can affect total expense ratios. The Board noted that the funds and classes in the Total Mapped Group that have a similar sales load structure to Class A have a range of 12b-1 fees, and, when compared to a subset of funds with the same 12b-1 fee, Class A ranked below the median for 2010. The Board also noted that Institutional Class has a significantly lower investment minimum than certain funds and classes in the Total Mapped Group that have a similar sales load or 12b-1 fee structure and that, when compared to funds with the same or lower investment minimum, Institutional Class ranked below the median for 2010. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expense ratios of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable, although in some cases above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
Annual Report
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes; (vi) the reasons why certain expenses affect various funds and classes differently; (vii) Fidelity's transfer agent fees, expenses, and services and how the benefits of decreased costs and new efficiencies can be shared across all of the Fidelity funds; (viii) the reasons for and consequences of changes to certain product lines compared to competitors; (ix) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (x) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASTMI-UANN-0212 1.796657.108
Item 2. Code of Ethics
As of the end of the period, December 31, 2011, 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
Fees and Services
The following table presents fees billed by PricewaterhouseCoopers LLP ("PwC") in each of the last two fiscal years for services rendered to Fidelity Michigan Municipal Income Fund, Fidelity Minnesota Municipal Income Fund, Fidelity Municipal Income Fund, Fidelity Ohio Municipal Income Fund, Fidelity Pennsylvania Municipal Income Fund and Fidelity Short-Intermediate Municipal Income Fund (the "Funds"):
Services Billed by PwC
December 31, 2011 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Michigan Municipal Income Fund | $44,000 | $- | $2,200 | $1,800 |
Fidelity Minnesota Municipal Income Fund | $44,000 | $- | $2,200 | $1,800 |
Fidelity Municipal Income Fund | $64,000 | $- | $2,200 | $4,000 |
Fidelity Ohio Municipal Income Fund | $44,000 | $- | $2,200 | $1,800 |
Fidelity Pennsylvania Municipal Income Fund | $44,000 | $- | $2,200 | $1,800 |
Fidelity Short-Intermediate Municipal Income Fund | $47,000 | $- | $2,200 | $3,200 |
December 31, 2010 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Michigan Municipal Income Fund | $44,000 | $- | $2,200 | $2,100 |
Fidelity Minnesota Municipal Income Fund | $44,000 | $- | $2,200 | $2,000 |
Fidelity Municipal Income Fund | $66,000 | $- | $2,200 | $4,800 |
Fidelity Ohio Municipal Income Fund | $44,000 | $- | $2,200 | $2,100 |
Fidelity Pennsylvania Municipal Income Fund | $44,000 | $- | $2,200 | $2,000 |
Fidelity Short-Intermediate Municipal Income Fund | $48,000 | $- | $2,200 | $3,800 |
A Amounts may reflect rounding.
The following table presents fees billed by PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds ("Fund Service Providers"):
Services Billed by PwC
| December 31, 2011A | December 31, 2010A |
Audit-Related Fees | $3,845,000 | $2,505,000 |
Tax Fees | $- | $- |
All Other Fees | $- | $510,000 |
A Amounts may reflect rounding.
"Audit-Related Fees" represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
"Tax Fees" represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
"All Other Fees" represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by PwC for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | December 31, 2011 A | December 31, 2010 A |
PwC | $5,080,000 | $5,040,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the Funds, taking into account representations from PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and FMR's review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust's Audit Committee must pre-approve all audit and non-audit services provided by a fund's independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund ("Covered Service") are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X ("De Minimis Exception")
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds' last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Municipal Trust
By: | /s/John R. Hebble |
| John R. Hebble |
| President and Treasurer |
|
|
Date: | February 27, 2012 |
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/John R. Hebble |
| John R. Hebble |
| President and Treasurer |
|
|
Date: | February 27, 2012 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | February 27, 2012 |