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 811-3361
Fidelity Massachusetts 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: | January 31 |
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Date of reporting period: | January 31, 2012 |
Item 1. Reports to Stockholders
Fidelity®
Massachusetts AMT
Tax-Free Money Market Fund -
Fidelity Massachusetts AMT Tax-Free
Money Market Fund
Institutional Class
Service Class
Annual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes/ | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
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 for Fidelity Massachusetts AMT Tax-Free Money Market Fund shares, or 1-877-208-0098 for Institutional Class and Service Class shares of the fund, 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 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:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet 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 the Fund, you incur two types of costs: (1) transaction costs, 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 (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annual Report
| Annualized | Beginning | Ending | Expenses Paid |
Massachusetts AMT Tax-Free Money Market | .14% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.10 | $ .71** |
Hypothetical A |
| $ 1,000.00 | $ 1,024.50 | $ .71** |
Institutional Class | .14% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.10 | $ .71** |
Hypothetical A |
| $ 1,000.00 | $ 1,024.50 | $ .71** |
Service Class | .14% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.10 | $ .71** |
Hypothetical A |
| $ 1,000.00 | $ 1,024.50 | $ .71** |
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).
** If certain fees were not voluntarily waived by FMR or its affiliates during the period, the annualized expense ratio and the expenses paid in the actual and hypothetical examples above would have been as follows:
| Annualized | Expenses Paid |
Massachusetts AMT Tax-Free Money Market | .30% |
|
Actual |
| $ 1.51 |
HypotheticalA |
| $ 1.53 |
Institutional Class | .20% |
|
Actual |
| $ 1.01 |
HypotheticalA |
| $ 1.02 |
Service Class | .45% |
|
Actual |
| $ 2.27 |
HypotheticalA |
| $ 2.29 |
Annual Report
Investment Changes/Performance (Unaudited)
Effective Maturity Diversification | |||
Days | % of fund's investments 1/31/12 | % of fund's investments 7/31/11 | % of fund's investments 1/31/11 |
1 - 7 | 79.3 | 90.2 | 86.3 |
8 - 30 | 2.6 | 1.6 | 1.7 |
31 - 60 | 1.8 | 2.5 | 2.0 |
61 - 90 | 5.5 | 0.0 | 3.3 |
91 - 180 | 6.4 | 3.2 | 4.9 |
> 180 | 4.4 | 2.5 | 1.8 |
Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940. |
Weighted Average Maturity | |||
| 1/31/12 | 7/31/11 | 1/31/11 |
Fidelity Massachusetts AMT Tax-Free Money Market Fund | 30 Days | 17 Days | 21 Days |
Massachusetts Tax-Free Money Market Funds Average* | 29 Days | 22 Days | 25 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 | |||
| 1/31/12 | 7/31/11 | 1/31/11 |
Fidelity Massachusetts AMT Tax-Free Money Market Fund | 30 Days | 17 Days | 21 Days |
Weighted Average Life (WAL) is the weighted average of the life of the securities held in a fund or portfolio and can be used as a measure of sensitivity to changes in liquidity and/or credit risk. Generally, the higher the value, the greater the sensitivity. WAL is based on the dollar-weighted average length of time until principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. The difference between WAM and WAL is that WAM takes into account interest rate resets and WAL does not. WAL for money market funds is not the same as WAL of a mortgage- or asset-backed security. |
*Source: iMoneyNet, Inc.
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 | As of July 31, 2011 | ||||||
![]() | Variable Rate |
| ![]() | Variable Rate |
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![]() | Commercial |
| ![]() | Commercial |
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![]() | Tender Bonds 1.0% |
| ![]() | Tender Bonds 0.5% |
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![]() | Municipal Notes 11.2% |
| ![]() | Municipal Notes 2.0% |
| ||
![]() | Fidelity Tax-Free |
| ![]() | Fidelity Tax-Free |
| ||
![]() | Other Investments 4.4% |
| ![]() | Other Investments 2.5% |
| ||
![]() | Net Other Assets 0.1% |
| ![]() | Net Other Assets 9.1% |
|
Current and Historical Seven-Day Yields |
| 1/30/12 | 10/31/11 | 8/1/11 | 5/2/11 | 1/31/11 |
Massachusetts AMT Tax-Free | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
Current and Historical Seven-Day Yields |
| 1/30/12 | 10/31/11 | 8/1/11 | 5/2/11 | 1/31/11 |
Institutional Class | 0.01% | 0.01% | 0.01% | 0.07% | 0.10% |
Current and Historical Seven-Day Yields |
| 1/30/12 | 10/31/11 | 8/1/11 | 5/2/11 | 1/31/11 |
Service Class | 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 30, 2012, the most recent period shown in the table, would have been -0.19% for Massachusetts AMT Tax-Free Money Market, -0.14% for Institutional Class, and -0.39% for Service Class.
Annual Report
Investments January 31, 2012
Showing Percentage of Net Assets
Municipal Securities - 99.9% | |||
Principal Amount | Value | ||
Colorado - 0.3% | |||
Colorado Hsg. & Fin. Auth. Series 2001 AA2, 0.07% 2/7/12 (Liquidity Facility Fannie Mae Guaranteed Mtg. pass-thru certificates) (Liquidity Facility Freddie Mac), VRDN (a) | $ 4,010,000 | $ 4,010,000 | |
Massachusetts - 84.8% | |||
Boston Gen. Oblig. Bonds Series 2009 C, 3% 2/1/13 | 1,000,000 | 1,027,878 | |
Chatham Gen. Oblig. BAN: | |||
1.25% 6/29/12 | 3,200,000 | 3,213,536 | |
1.5% 6/29/12 | 10,200,000 | 10,252,173 | |
Gloucester Gen. Oblig. BAN Series A, 1.5% 9/14/12 | 5,089,500 | 5,124,860 | |
Lexington Gen. Oblig. BAN Series A, 1.5% 2/17/12 | 1,477,997 | 1,478,773 | |
Massachusetts Bay Trans. Auth. Sales Tax Rev.: | |||
Participating VRDN: | |||
Series Clipper 07 18, 0.11% 2/7/12 (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(d) | 53,100,000 | 53,100,000 | |
Series ROC II R 11933, 0.07% 2/7/12 (Liquidity Facility Citibank NA) (a)(d) | 4,000,000 | 4,000,000 | |
Series 2008 A1, 0.07% 2/7/12 (Liquidity Facility JPMorgan Chase Bank), VRDN (a) | 18,210,000 | 18,210,000 | |
Series 2008 A2, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank), VRDN (a) | 1,000,000 | 1,000,000 | |
Massachusetts Dept. of Trans. Metropolitan Hwy. Sys. Rev.: | |||
Series 2010 A1, 0.06% 2/7/12, LOC Citibank NA, VRDN (a) | 17,150,000 | 17,150,000 | |
Series 2010 A2, 0.06% 2/7/12, LOC Wells Fargo Bank NA, VRDN (a) | 5,100,000 | 5,100,000 | |
Massachusetts Dev. Fin. Agcy. Series 5, 0.16% 4/2/12, LOC TD Banknorth, NA, CP | 2,300,000 | 2,300,000 | |
Massachusetts Dev. Fin. Agcy. Multi-family Hsg. Rev. (Tammy Brook Apts. Proj.) Series 2009, 0.08% 2/7/12, LOC Freddie Mac, VRDN (a) | 3,670,000 | 3,670,000 | |
Massachusetts Dev. Fin. Agcy. Rev.: | |||
(Abby Kelley Foster Charter Pub. School Proj.) Series 2008, 0.07% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 4,800,000 | 4,800,000 | |
(Babson College Proj.) Series 2008 A, 0.03% 2/7/12, LOC Fed. Home Ln. Bank of Boston, VRDN (a) | 19,105,000 | 19,105,000 | |
(Boston Univ. Proj.) Series U-6C, 0.07% 2/1/12, LOC JPMorgan Chase Bank, VRDN (a) | 5,500,000 | 5,500,000 | |
(Briarwood Retirement Cmnty. Proj.) Series 2004 A, 0.08% 2/7/12, LOC Manufacturers & Traders Trust Co., VRDN (a) | 3,800,000 | 3,800,000 | |
(Children's Museum Proj.) Series 2006, 0.08% 2/1/12, LOC RBS Citizens NA, VRDN (a) | 10,700,000 | 10,700,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Dev. Fin. Agcy. Rev.: - continued | |||
(City Year Proj.) Series 2006, 0.25% 2/7/12, LOC Bank of America NA, VRDN (a) | $ 8,215,000 | $ 8,215,000 | |
(Ed. Lawrence Academy Proj.) Series 2003 A, 0.11% 2/7/12, LOC Bank of America NA, VRDN (a) | 2,600,000 | 2,600,000 | |
(Fay School Proj.) Series 2008, 0.07% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 5,450,000 | 5,450,000 | |
(Institute of Contemporary Art Proj.) Series 2004 A, 0.11% 2/7/12, LOC Bank of America NA, VRDN (a) | 2,300,000 | 2,300,000 | |
(Int'l. Fund For Animal Welfare, Inc. Proj.) Series 2006, 0.15% 2/7/12, LOC Bank of America NA, VRDN (a) | 12,480,000 | 12,480,000 | |
(ISO New England, Inc. Proj.) Series 2005, 0.04% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 9,300,000 | 9,300,000 | |
(Judge Rotenburg Ctr. Proj.) Series 2003, 0.12% 2/7/12, LOC Bank of America NA, VRDN (a) | 1,500,000 | 1,500,000 | |
(Lasell Village Proj.) Series 2007, 0.09% 2/7/12, LOC Bank of America NA, VRDN (a) | 18,580,000 | 18,580,000 | |
(Masonic Nursing Home Proj.) Series 2002 B, 0.05% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 10,000,000 | 10,000,000 | |
(Neighborhood House Charter Proj.) Series 2003 A, 0.09% 2/7/12, LOC Bank of America NA, VRDN (a) | 7,100,000 | 7,100,000 | |
(Olin College Proj.) Series 2008 C2, 0.06% 2/1/12, LOC RBS Citizens NA, VRDN (a) | 5,000,000 | 5,000,000 | |
(Saint Mark's School Proj.) Series 2004, 0.07% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 4,700,000 | 4,700,000 | |
(Smith College Proj.) Series 2007, 0.08% 2/7/12 (Liquidity Facility Bank of America NA), VRDN (a) | 20,300,000 | 20,300,000 | |
(Williston Northampton School Proj.) Series 2010, 0.12% 2/7/12, LOC Bank of America NA, VRDN (a) | 2,700,000 | 2,700,000 | |
(Worcester Polytechnic Institute Proj.) Series 2008 A, 0.05% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 23,740,000 | 23,740,000 | |
(YMCA of Greater Boston Proj.): | |||
Series 2004 A, 0.07% 2/7/12, LOC Fed. Home Ln. Bank of Boston, VRDN (a) | 8,100,000 | 8,100,000 | |
Series 2007, 0.07% 2/7/12, LOC Fed. Home Ln. Bank of Boston, VRDN (a) | 8,005,000 | 8,005,000 | |
Participating VRDN Series ROC II R 11999X, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(d) | 1,985,000 | 1,985,000 | |
Series 2001, 0.17% 3/7/12, LOC JPMorgan Chase Bank, CP | 4,397,000 | 4,397,000 | |
Series 2011 B, 0.1% 2/7/12, LOC Manufacturers & Traders Trust Co., VRDN (a) | 4,450,000 | 4,450,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Gen. Oblig.: | |||
Bonds: | |||
Series 2001 D, 5.5% 11/1/12 | $ 4,455,000 | $ 4,628,905 | |
Series 2002 C, 5.5% 11/1/12 | 2,600,000 | 2,701,798 | |
Series 2004 A, 5% 8/1/12 | 2,155,000 | 2,205,882 | |
Series 2005 C, 5% 9/1/12 | 865,000 | 888,570 | |
Series 2008 A, 5% 9/1/12 | 2,170,000 | 2,230,241 | |
Series 2011 A, 0.08% 2/1/12 (a) | 4,200,000 | 4,200,000 | |
Series 2011 B, 4% 10/1/12 | 10,600,000 | 10,866,306 | |
Participating VRDN: | |||
Series Clipper 07 06, 0.11% 2/7/12 (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(d) | 17,900,000 | 17,900,000 | |
Series Clipper 07 39, 0.11% 2/7/12 (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(d) | 29,900,000 | 29,900,000 | |
Series EGL 07 0149, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(d) | 13,700,000 | 13,700,000 | |
Series MT 723, 0.14% 2/7/12 (Liquidity Facility Bank of America NA) (a)(d) | 5,100,000 | 5,100,000 | |
Series Putters 3699, 0.09% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 4,400,000 | 4,400,000 | |
Series Putters 3898, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 3,500,000 | 3,500,000 | |
RAN: | |||
Series 2011 A, 2% 4/26/12 | 54,300,000 | 54,535,673 | |
Series 2011 B, 2% 5/31/12 | 42,300,000 | 42,555,932 | |
Massachusetts Health & Edl. Facilities Auth. Rev.: | |||
(Baystate Health Sys. Proj.): | |||
Series 2009 J1, 0.07% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 5,600,000 | 5,600,000 | |
Series 2009 J2, 0.07% 2/1/12, LOC JPMorgan Chase Bank, VRDN (a) | 1,400,000 | 1,400,000 | |
(Baystate Med. Ctr. Proj.) Series 2005 G, 0.08% 2/7/12, LOC Bank of America NA, VRDN (a) | 38,105,000 | 38,105,000 | |
(Dana-Farber Cancer Institute Proj.) Series 2008 L2, 0.07% 2/7/12, LOC Bank of America NA, VRDN (a) | 2,105,000 | 2,105,000 | |
(Endicott College Proj.) Series 2004 D, 0.12% 2/7/12, LOC Bank of America NA, VRDN (a) | 3,400,000 | 3,400,000 | |
(Fairview Extended Care Proj.) Series B, 0.15% 2/7/12, LOC Bank of America NA, VRDN (a) | 1,000,000 | 1,000,000 | |
(Harvard Vanguard Med. Associates Proj.) Series 2004, 0.06% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 29,280,000 | 29,280,000 | |
(Home for Little Wanderers Proj.) Series B, 0.08% 2/7/12, LOC Fed. Home Ln. Bank of Boston, VRDN (a) | 3,350,000 | 3,350,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Health & Edl. Facilities Auth. Rev.: - continued | |||
(Northeast Hosp. Corp. Proj.) Series 2004 G, 0.09% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | $ 9,500,000 | $ 9,500,000 | |
(Partners HealthCare Sys., Inc. Proj.): | |||
Series D5, 0.05% 2/1/12, VRDN (a) | 1,500,000 | 1,500,000 | |
Series D6, 0.05% 2/1/12, VRDN (a) | 1,130,000 | 1,130,000 | |
(Peabody Essex Museum Proj.) Series 2002, 0.1% 2/7/12, LOC Bank of America NA, VRDN (a) | 12,845,000 | 12,845,000 | |
(Stonehill College Proj.) Series 2008 K, 0.07% 2/1/12, LOC Bank of America NA, VRDN (a) | 5,565,000 | 5,565,000 | |
(The Henry Heywood Memorial Hosp. Issue Proj.) Series 2009 C, 0.06% 2/1/12, LOC TD Banknorth, NA, VRDN (a) | 2,785,000 | 2,785,000 | |
(Williams College Proj.) Series I, 0.04% 2/7/12, VRDN (a) | 4,779,000 | 4,779,000 | |
Bonds: | |||
(Northeastern Univ. Proj.): | |||
Series 2008 T2, 4.1%, tender 4/19/12 (a) | 4,000,000 | 4,031,895 | |
Series 2009 T1, 4.125%, tender 2/16/12 (a) | 9,360,000 | 9,374,281 | |
(Partners HealthCare Sys., Inc. Proj.): | |||
Series 2008 H1, 0.15% tender 3/8/12, CP mode | 5,000,000 | 5,000,000 | |
Series 2008 H1, 0.16% tender 3/30/12, CP mode | 2,000,000 | 2,000,000 | |
Series 2008 H2: | |||
0.1% tender 5/3/12, CP mode | 18,000,000 | 18,000,000 | |
0.11% tender 4/5/12, CP mode | 7,020,000 | 7,020,000 | |
Series 2010 A, 5% 10/1/12 | 1,250,000 | 1,289,069 | |
Series FF, 5% 7/15/12 | 1,150,000 | 1,174,961 | |
Participating VRDN: | |||
Series BA 08 3320, 0.14% 2/7/12 (Liquidity Facility Bank of America NA) (a)(d) | 6,190,000 | 6,190,000 | |
Series BA 08 3503, 0.18% 2/7/12 (Liquidity Facility Bank of America NA) (a)(d) | 5,550,000 | 5,550,000 | |
Series BBT 08 54, 0.07% 2/7/12 (Liquidity Facility Branch Banking & Trust Co.) (a)(d) | 6,300,000 | 6,300,000 | |
Series BBT 08 56, 0.07% 2/7/12 (Liquidity Facility Branch Banking & Trust Co.) (a)(d) | 3,500,000 | 3,500,000 | |
Series BC 10 20W, 0.06% 2/7/12 (Liquidity Facility Barclays Bank PLC) (a)(d) | 1,400,000 | 1,400,000 | |
Series Clipper 07 08, 0.08% 2/7/12 (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(d) | 4,200,000 | 4,200,000 | |
Series Putters 3163, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 5,655,000 | 5,655,000 | |
Series Putters 3529, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 10,000,000 | 10,000,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Health & Edl. Facilities Auth. Rev.: - continued | |||
Participating VRDN: | |||
Series Putters 3530, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | $ 11,495,000 | $ 11,495,000 | |
Series Putters 3650, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 3,200,000 | 3,200,000 | |
Series ROC II R 11913, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(d) | 2,295,000 | 2,295,000 | |
Series B, 0.11% 2/7/12, LOC RBS Citizens NA, VRDN (a) | 6,790,000 | 6,790,000 | |
Series EE: | |||
0.08% 4/3/12, CP | 400,000 | 400,000 | |
0.14% 3/8/12, CP | 3,100,000 | 3,100,000 | |
0.14% 3/15/12, CP | 3,100,000 | 3,100,000 | |
Massachusetts Health & Educational Facilities Auth. Rev. (Mount Ida College Proj.) Series 2007 A, 0.1% 2/7/12, LOC Bank of America NA, VRDN (a) | 4,900,000 | 4,900,000 | |
Massachusetts Hsg. Fin. Agcy. Multi-Family Rev. Series 2009 A, 0.1% 2/7/12, LOC Bank of America NA, VRDN (a) | 1,000,000 | 1,000,000 | |
Massachusetts Indl. Fin. Agcy. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.): | |||
Series 1993 A, 0.4% tender 2/16/12, CP mode | 4,700,000 | 4,700,000 | |
Series 1993 B, 0.6% tender 2/28/12, CP mode | 1,630,000 | 1,630,000 | |
Massachusetts Indl. Fin. Agcy. Rev. (Society for the Prevention of Cruelty to Animals Proj.) Series 1997, 0.09% 2/7/12, LOC Bank of America NA, VRDN (a) | 5,480,000 | 5,480,000 | |
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys. Rev. Bonds (Nuclear #3 Proj.) Series 2012 A, 4% 7/1/12 | 5,035,000 | 5,111,561 | |
Massachusetts Port Auth. Rev.: | |||
Participating VRDN Series Solar 06 108, 0.07% 2/7/12 (Liquidity Facility U.S. Bank NA, Minnesota) (a)(d) | 9,300,000 | 9,300,000 | |
Series 2003 A, 0.06% 2/15/12, LOC Bank of New York, New York, CP | 10,000,000 | 10,000,000 | |
Series 2008 A, 0.08% 2/7/12, LOC Bank of America NA, VRDN (a) | 11,500,000 | 11,500,000 | |
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev.: | |||
Bonds: | |||
Series 2009 A, 4% 5/15/12 | 1,000,000 | 1,010,874 | |
Series 2011 B, 2% 10/15/12 | 10,055,000 | 10,179,962 | |
Participating VRDN: | |||
ROC II R 12193, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(d) | 5,115,000 | 5,115,000 | |
Series EGL 07 0033, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(d) | 19,800,000 | 19,800,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev.: - continued | |||
Participating VRDN: | |||
Series EGL 07 0067, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(d) | $ 19,100,000 | $ 19,100,000 | |
Series EGL 07 0092, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(d) | 14,700,000 | 14,700,000 | |
Series Putters 1052Z, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 2,995,000 | 2,995,000 | |
Series Putters 1920, 0.1% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 7,985,000 | 7,985,000 | |
Series Putters 2479Z, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 3,500,000 | 3,500,000 | |
Series Putters 2857, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 15,545,000 | 15,545,000 | |
Series Putters 3990, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 2,000,000 | 2,000,000 | |
Series ROC II R 12254, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(d) | 4,900,000 | 4,900,000 | |
Series WF 11 124C, 0.08% 2/7/12 (Liquidity Facility Wells Fargo Bank NA) (a)(d) | 2,000,000 | 2,000,000 | |
Massachusetts Wtr. Poll. Abatement Trust: | |||
Bonds: | |||
Series 10, 5% 8/1/12 | 2,120,000 | 2,169,976 | |
Series 2002 A, 5% 8/1/12 | 1,750,000 | 1,791,501 | |
Participating VRDN: | |||
Series BBT 08 58, 0.07% 2/7/12 (Liquidity Facility Branch Banking & Trust Co.) (a)(d) | 12,430,000 | 12,430,000 | |
Series Putters 2847, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 4,130,000 | 4,130,000 | |
Massachusetts Wtr. Resources Auth. Wtr. & Swr. Rev.: | |||
Participating VRDN: | |||
Series EGL 06 0097, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(d) | 15,345,000 | 15,345,000 | |
Series ROC II R 11968, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(d) | 1,400,000 | 1,400,000 | |
Series 1999, 0.16% 3/9/12, LOC State Street Bank & Trust Co., Boston, CP | 5,000,000 | 5,000,000 | |
Series 2008 E, 0.07% 2/7/12 (Liquidity Facility JPMorgan Chase Bank), VRDN (a) | 2,965,000 | 2,965,000 | |
Medway Gen. Oblig. BAN 1.5% 2/15/12 | 5,680,000 | 5,682,173 | |
Middleton Gen. Oblig. BAN 1.5% 8/17/12 | 3,250,000 | 3,272,117 | |
Scituate Gen. Oblig. BAN 1.75% 11/16/12 | 2,186,479 | 2,210,036 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Tewksbury Gen. Oblig.: | |||
BAN 1% 2/7/12 | $ 2,900,000 | $ 2,900,244 | |
Bonds 2% 4/15/12 | 1,720,000 | 1,725,905 | |
Univ. of Massachusetts Bldg. Auth. Facilities Rev. Series 2008 1, 0.1% 2/7/12, LOC Lloyds TSB Bank PLC, VRDN (a) | 68,945,000 | 68,945,000 | |
Walpole Gen. Oblig. BAN 1.75% 11/29/12 | 3,060,000 | 3,094,440 | |
Weston Gen. Oblig.: | |||
BAN 1% 2/3/12 | 6,854,200 | 6,854,508 | |
Bonds Series 2011, 5% 2/1/12 | 1,783,271 | 1,783,271 | |
Woburn Gen. Oblig. BAN 1.5% 10/26/12 | 2,000,000 | 2,017,066 | |
| 1,079,325,367 | ||
Pennsylvania - 0.2% | |||
Pennsylvania Higher Edl. Facilities Auth. Rev. (La Salle Univ. Proj.) Series 2007 B, 0.11% 2/7/12, LOC Citizens Bank of Pennsylvania, VRDN (a) | 1,000,000 | 1,000,000 | |
Philadelphia Auth. for Indl. Dev. Rev. (Spl. People in Northeast, Inc. Proj.) Series 2006, 0.11% 2/7/12, LOC Citizens Bank of Pennsylvania, VRDN (a) | 845,000 | 845,000 | |
| 1,845,000 | ||
Puerto Rico - 0.3% | |||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev. Series 1998 A, 0.05% 2/7/12, LOC Bank of Nova Scotia New York Branch, VRDN (a) | 4,100,000 | 4,100,000 | |
Shares |
| ||
Other - 14.3% | |||
Fidelity Tax-Free Cash Central Fund, 0.07% (b)(c) | 182,602,389 | 182,602,389 | |
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $1,271,882,756) | 1,271,882,756 | ||
NET OTHER ASSETS (LIABILITIES) - 0.1% | 1,236,195 | ||
NET ASSETS - 100% | $ 1,273,118,951 |
Security Type Abbreviations | ||
BAN | - | BOND ANTICIPATION NOTE |
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 Tax-Free 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) 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 Tax-Free Cash Central Fund | $ 240,915 |
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
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,089,280,367) | $ 1,089,280,367 |
|
Fidelity Central Funds (cost $182,602,389) | 182,602,389 |
|
Total Investments (cost $1,271,882,756) |
| $ 1,271,882,756 |
Cash |
| 2,725,499 |
Receivable for investments sold | 1,000,405 | |
Receivable for fund shares sold | 3,141,883 | |
Interest receivable | 1,637,547 | |
Distributions receivable from Fidelity Central Funds | 9,638 | |
Receivable from investment adviser for expense reductions | 38,080 | |
Other receivables | 142 | |
Total assets | 1,280,435,950 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 5,000,104 | |
Payable for fund shares redeemed | 2,046,142 | |
Distributions payable | 2,063 | |
Accrued management fee | 139,429 | |
Other affiliated payables | 129,261 | |
Total liabilities | 7,316,999 | |
|
|
|
Net Assets | $ 1,273,118,951 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,272,961,281 | |
Accumulated undistributed net realized gain (loss) on investments | 157,670 | |
Net Assets | $ 1,273,118,951 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 | |
|
|
|
Massachusetts AMT Tax-Free Money Market: | $ 1.00 | |
|
|
|
Institutional Class: | $ 1.00 | |
|
|
|
Service Class: | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended January 31, 2012 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 2,333,291 |
Income from Fidelity Central Funds |
| 240,915 |
Total income |
| 2,574,206 |
|
|
|
Expenses | ||
Management fee | $ 2,878,370 | |
Transfer agent fees | 877,549 | |
Distribution and service plan fees | 2,494 | |
Independent trustees' compensation | 5,338 | |
Total expenses before reductions | 3,763,751 | |
Expense reductions | (1,519,215) | 2,244,536 |
Net investment income (loss) | 329,670 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| (1,068) |
Net increase in net assets resulting from operations | $ 328,602 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 329,670 | $ 1,224,195 |
Net realized gain (loss) | (1,068) | 32,067 |
Net increase in net assets resulting | 328,602 | 1,256,262 |
Distributions to shareholders from net investment income | (329,661) | (1,224,158) |
Share transactions - net increase (decrease) | (345,293,155) | (306,713,932) |
Total increase (decrease) in net assets | (345,294,214) | (306,681,828) |
|
|
|
Net Assets | ||
Beginning of period | 1,618,413,165 | 1,925,094,993 |
End of period net investment income | $ 1,273,118,951 | $ 1,618,413,165 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Massachusetts AMT Tax-Free Money Market
Years ended January 31, | 2012 | 2011 | 2010 | 2009 | 2008 |
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 | .002 | .016 | .033 |
Net realized and unrealized gain (loss) D | - | - | - | - | - |
Total from investment operations | - D | - D | .002 | .016 | .033 |
Distributions from net investment income | - D | - D | (.002) | (.016) | (.033) |
Distributions from net realized gain | - | - | - D | - D | - D |
Total distributions | - D | - D | (.002) | (.016) | (.033) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return A | .01% | .01% | .15% | 1.64% | 3.35% |
Ratios to Average Net Assets B, C |
|
|
|
|
|
Expenses before reductions | .30% | .30% | .34% | .32% | .34% |
Expenses net of fee waivers, if any | .17% | .28% | .33% | .32% | .33% |
Expenses net of all reductions | .17% | .28% | .33% | .27% | .26% |
Net investment income (loss) | .01% | .01% | .16% | 1.66% | 3.30% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 290,104 | $ 353,510 | $ 441,771 | $ 638,141 | $ 855,065 |
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 class. 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 class 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 class.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended January 31, | 2012 | 2011 | 2010 | 2009 | 2008 E |
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) | - G | .001 | .002 | .017 | .027 |
Net realized and unrealized gain (loss) G | - | - | - | - | - |
Total from investment operations | - G | .001 | .002 | .017 | .027 |
Distributions from net investment income | - G | (.001) | (.002) | (.017) | (.027) |
Distributions from net realized gain | - | - | - G | - G | - G |
Total distributions | - G | (.001) | (.002) | (.017) | (.027) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return B, C | .02% | .09% | .25% | 1.74% | 2.72% |
Ratios to Average Net AssetsD, F |
|
|
|
|
|
Expenses before reductions | .25% | .25% | .29% | .27% | .25% A |
Expenses net of fee waivers, if any | .15% | .20% | .24% | .22% | .20% A |
Expenses net of all reductions | .15% | .20% | .24% | .17% | .15% A |
Net investment income (loss) | .03% | .09% | .25% | 1.76% | 3.34% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 982,481 | $ 1,263,867 | $ 1,474,463 | $ 2,049,073 | $ 2,920,504 |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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 For the period April 18, 2007 (commencement of sale of shares) to January 31, 2008.
F Expense ratios reflect operating expenses of the class. 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 class during periods when reimbursements, waivers or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement and waivers but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Service Class
Years ended January 31, | 2012 | 2011 | 2010 | 2009 | 2008 E |
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) | - G | - G | .001 | .015 | .025 |
Net realized and unrealized gain (loss) G | - | - | - | - | - |
Total from investment operations | - G | - G | .001 | .015 | .025 |
Distributions from net investment income | - G | - G | (.001) | (.015) | (.025) |
Distributions from net realized gain | - | - | - G | - G | - G |
Total distributions | - G | - G | (.001) | (.015) | (.025) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return B, C | .01% | .01% | .07% | 1.49% | 2.52% |
Ratios to Average Net Assets D, F |
|
|
|
|
|
Expenses before reductions | .50% | .50% | .53% | .52% | .49% A |
Expenses net of fee waivers, if any | .17% | .28% | .41% | .46% | .45% A |
Expenses net of all reductions | .16% | .28% | .41% | .42% | .39% A |
Net investment income (loss) | .01% | .01% | .08% | 1.51% | 2.72% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 534 | $ 1,036 | $ 8,862 | $ 6,805 | $ 49,623 |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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 For the period April 18, 2007 (commencement of sale of shares) to January 31, 2008.
F Expense ratios reflect operating expenses of the class. 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 class during periods when reimbursements, waivers or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement and waivers but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended January 31, 2012
1. Organization.
Fidelity Massachusetts AMT Tax-Free Money Market Fund (the Fund) is a fund of Fidelity Massachusetts 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 Massachusetts AMT Tax-Free Money Market, Institutional Class and Service Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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. The Fund may be affected by economic and political developments in the state of Massachusetts.
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 does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of 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
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. 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)
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.
Investment Transactions and Income. The net asset value 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. Security transactions, including the Fund's investment activity in the Fidelity Central Funds, are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and 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 January 31, 2012, 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
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. 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 deferred trustees compensation and losses deferred due to wash sales and excise tax regulations.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the IRS will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ - |
Gross unrealized depreciation | - |
Net unrealized appreciation (depreciation) on securities and other investments | $ - |
Tax Cost | $ 1,271,882,756 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed tax-exempt income | $ 159,315 |
The tax character of distributions paid was as follows:
| January 31, 2012 | January 31, 2011 |
Tax-exempt Income | $ 329,661 | $ 1,224,158 |
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .20% of the Fund's average net assets. FMR pays all other fund-level expenses, except the compensation of the independent Trustees and certain exceptions such as interest expense.
In addition, under the expense contract, FMR pays class level expenses for Massachusetts AMT Tax-Free Money Market so that the total expenses do not exceed .35%, expressed as a percentage of class average net assets, with certain exceptions such as interest expense.
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. Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, a Service Fee based on an annual percentage of Service 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 Service Fee rate, total service fees and amounts retained by FDC were as follows:
| Service | Total Fees | Retained |
Service Class | .25% | $ 2,494 | $ 124 |
During the period, FMR or its affiliates waived a portion of these fees.
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. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Massachusetts AMT Tax-Free Money Market | $ 313,213 | .10 |
Institutional Class | 563,836 | .05 |
Service Class | 500 | .05 |
| $ 877,549 |
|
During the period, FMR or its affiliates waived a portion of these fees.
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. Expense Reductions.
FMR contractually agreed to reimburse Institutional Class and Service Class to the extent annual operating expenses, expressed as a percentage of each class' average net assets, exceed .20% and .45%, respectively. Some expenses, for example interest expense, are excluded from this reimbursement. During the period, this reimbursement reduced Institutional Class and Service Class expenses by $565,972 and $511, respectively.
Additionally, FMR or its affiliates voluntarily agreed to waive certain fees 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 for each class was as follows:
| Amount |
Massachusetts AMT Tax-Free Money Market | $ 412,234 |
Institutional Class | 525,264 |
Service Class | 2,831 |
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $12,403.
6. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended January 31, | 2012 | 2011 |
From net investment income |
|
|
Massachusetts AMT Tax-Free Money Market | $ 31,272 | $ 40,812 |
Institutional Class | 298,290 | 1,183,204 |
Service Class | 99 | 142 |
Total | $ 329,661 | $ 1,224,158 |
Annual Report
Notes to Financial Statements - continued
7. Share Transactions.
Transactions for each class of shares at a $1.00 per share were as follows:
Years ended January 31, | 2012 | 2011 |
Massachusetts AMT Tax-Free Money Market |
75,741,284 |
112,064,410 |
Reinvestment of distributions | 29,284 | 38,159 |
Shares redeemed | (139,168,741) | (200,336,793) |
Net increase (decrease) | (63,398,173) | (88,234,224) |
Institutional Class |
223,509,695 |
381,253,389 |
Reinvestment of distributions | 229,914 | 926,386 |
Shares redeemed | (505,132,398) | (592,837,187) |
Net increase (decrease) | (281,392,789) | (210,657,412) |
Service Class |
860,000 |
885,135 |
Reinvestment of distributions | 49 | 65 |
Shares redeemed | (1,362,242) | (8,707,496) |
Net increase (decrease) | (502,193) | (7,822,296) |
8. 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 Massachusetts Municipal Trust and Shareholders of Fidelity Massachusetts AMT Tax-Free Money Market Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Massachusetts AMT Tax-Free Money Market Fund (the Fund), a fund of Fidelity Massachusetts Municipal Trust, including the schedule of investments, as of January 31, 2012, and the related statement of operations for the year then ended, the statement of changes in 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. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits 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 and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of January 31, 2012, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Massachusetts AMT Tax-Free Money Market Fund as of January 31, 2012, 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.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 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 204 funds advised by FMR or an affiliate. Mr. Curvey oversees 430 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. 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 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 for Fidelity Massachusetts AMT Tax-Free Money Market Fund shares, or 1-877-208-0098 for Institutional Class or Service Class shares of the fund.
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. |
Name, Age; Principal Occupations and Other Relevant Experience+ | |
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 (65) | |
| 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. |
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 (44) | |
| 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. |
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 2012, 100% of the fund's income dividends was free from federal income tax, and 0.00% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2013 of amounts for use in preparing 2012 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Massachusetts AMT Tax-Free 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 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
Annual Report
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.
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
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing 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 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, as available, the cumulative total returns of Institutional Class and the retail class of the fund 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 Institutional Class and the retail class show the performance of the highest performing class (based on three-year performance) and the lowest performing class (based on five-year performance), respectively. 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
Fidelity Massachusetts AMT Tax-Free Money Market 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 (the class with the longest performance record) was in the third quartile for the one-year period, the second quartile for the three-year period and the first 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. 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 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.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the 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 11% means that 89% 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. Because the vast majority of competitor funds' management fees do not cover non-management expenses, for a more meaningful comparison of management fees, the fund is compared on the basis of a hypothetical "net management fee," which is derived by subtracting payments made by FMR for "fund-level" non-management expenses (including pricing and bookkeeping fees and fees paid to non-affiliated custodians) from the fund's management fee. In this regard, the Board realized that net management fees can vary from year to year because of differences in "fund-level" non-management expenses. The Board noted, however, that FMR does not pay transfer agent fees or other "class-level" expenses (including 12b-1 fees, if applicable) under the fund's management contract.
Annual Report
Fidelity Massachusetts AMT Tax-Free 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.
Furthermore, the Board considered that it had approved an amended and restated management contract for the fund (effective April 1, 2007) that (i) lowered the fund's management fee from 43 basis points to 20 basis points, and (ii) provides that FMR will pay all "fund-level" expenses out of the management fee, with certain limited exceptions. (Transfer agent fees and 12b-1 fees, if applicable, currently are the only "class-level" expenses.) The Board considered that the chart reflects the fund's lower management fee for 2007 as if the lower fee were in effect for the entire year.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, the Board considered the fund's hypothetical net management fee as well as the fund's gross management fee. The Board also considered other "fund-level" expenses, such as pricing and bookkeeping fees and custodial, legal, and audit fees. The Board also considered other "class-level" expenses, such as transfer agent fees and fund-paid 12b-1 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 class ranked below its competitive median for 2010.
The Board also considered that the current contractual arrangements for the fund (i) have the effect of setting the total "fund-level" expenses (including, among certain other expenses, the management fee) for each class at 20 basis points, (ii) set the "class-level" transfer agent fee for the retail class at a fixed rate of 10 basis points, and (iii) limit the total expenses of the retail class to 35 basis points. The fees and expenses payable under these contractual arrangements may not be increased without the approval of the Board and, in the case of (i) and (iii), the shareholders of the applicable class. Institutional Class and Service Class (which commenced operations on April 18, 2007) are subject to different "class-level" expenses (transfer agent fees and 12b-1 fees). In addition, the Board considered that, effective April 17, 2007, FMR contractually agreed to limit the total expenses of Institutional Class and Service Class to 20 basis points and 45 basis points, respectively. The fees and expenses payable under these contractual arrangements may not be increased without Board approval.
The Board considered that Fidelity has been voluntarily waiving part or all of the 12b-1 fees, transfer agent fees, and/or management fees to maintain a minimum yield, and also noted that Fidelity retains the ability to be repaid in certain circumstances.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of 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 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.
Annual Report
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of 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 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.
(phone graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Annual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Annual Report
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Annual Report
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Covington, KY 41015
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Annual Report
Investment Adviser
Fidelity Management & Research
Company
Boston, MA
Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
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(Hong Kong) Limited
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(Japan) Inc.
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Fidelity® Massachusetts
Municipal Income Fund
and
Fidelity Massachusetts
Municipal Money Market Fund
Annual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance and strategy. | |
Fidelity® Massachusetts 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 Massachusetts Municipal Money Market Fund | ||
Investment Changes/ | A summary of major shifts in the fund's investments over the past six months and one year. | |
Investments | A complete list of the fund's investments. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
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:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet 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 (August 1, 2011 to January 31, 2012).
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 Massachusetts Municipal Income Fund | .46% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.60 | $ 2.41 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.89 | $ 2.35 |
Fidelity Massachusetts Municipal Money Market Fund | .13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.10 | $ .66** |
HypotheticalA |
| $ 1,000.00 | $ 1,024.55 | $ .66** |
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 Massachusetts Municipal Money Market Fund would have been .50% and the expenses paid in the actual and hypothetical examples would have been $2.52 and $2.55, respectively.
Annual Report
Fidelity® Massachusetts 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 January 31, 2012 | Past 1 | Past 5 | Past 10 |
Fidelity Massachusetts Municipal Income Fund | 14.09% | 5.52% | 5.32% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Massachusetts Municipal Income Fund on January 31, 2002. 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 Massachusetts Municipal Income Fund
Management's Discussion of Fund Performance
Market Recap: Municipal bonds generated a double-digit return for the 12 months ending January 31, 2012, 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 14.10%, significantly outpacing the 8.66% gain of the taxable investment-grade debt market, as measured by the Barclays Capital® U.S. Aggregate Bond Index. From the outset of the period, munis began what ultimately proved to be a virtually uninterrupted year-long rally. Demand for munis surged, as predicted widespread defaults didn't materialize and the fiscal health of issuers improved. Munis gathered additional strength in the summer of 2011, when a dimming U.S. economic outlook, unresolved debt woes in Europe and legislative wrangling over the U.S. debt ceiling fueled further demand, as U.S. investors sought haven against global economic uncertainty. The muni rally stalled somewhat in October and November, due in part to proposals out of Washington, D.C., that could potentially limit munis' tax-free benefits. The market staged a strong rebound in December, and January was even better because subdued issuance of new bonds - characteristic of the entire period - was met with robust demand, as proceeds from munis maturing at the end of 2011, as well as coupon payments, resulted in a wave of cash coming into the market.
Comments from Kevin Ramundo, Portfolio Manager of Fidelity® Massachusetts Municipal Income Fund: For the year, the fund returned 14.09%, while the Barclays Capital® Massachusetts 3+ Year Enhanced Municipal Bond Index rose 15.41%. The fund's performance fell short of the index due to its yield-curve positioning and overweighting in premium callable securities, which overwhelmed the benefits of overweighting bonds that were advanced refunded and underweighting housing bonds. In terms of yield-curve positioning, the fund's larger exposure to bonds maturing in 20 years or more, which lagged, and relatively light exposure to bonds with maturities around 10 years, which outperformed, detracted as comparatively strong demand resulted in outperformance for intermediate-maturity securities. Premium callable bonds, which were selling above face value and were redeemable - or callable - by their issuers before maturity lagged the benchmark as those two structural features fell out of favor among individual investors. Overweighting bonds that were advance refunded aided relative results because they, too, outpaced the market after they became backed by U.S. government securities. In contrast, underweighting housing bonds was beneficial because they lagged primarily due depressed conditions in that sector.
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 Massachusetts Municipal Income Fund
Investment Changes (Unaudited)
Top Five Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Special Tax | 23.8 | 21.6 |
General Obligations | 20.6 | 22.0 |
Water & Sewer | 14.6 | 14.3 |
Education | 14.1 | 13.8 |
Health Care | 10.9 | 10.2 |
Weighted Average Maturity as of January 31, 2012 | ||
|
| 6 months ago |
Years | 6.4 | 7.0 |
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 January 31, 2012 | ||
|
| 6 months ago |
Years | 7.6 | 8.1 |
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 January 31, 2012 | As of July 31, 2011 | ||||||
![]() | AAA 10.7% |
| ![]() | AAA 11.6% |
| ||
![]() | AA,A 78.1% |
| ![]() | AA,A 80.6% |
| ||
![]() | BBB 5.7% |
| ![]() | BBB 2.8% |
| ||
![]() | BB and Below 0.3% |
| ![]() | BB and Below 0.3% |
| ||
![]() | Not Rated 2.9% |
| ![]() | Not Rated 2.8% |
| ||
![]() | 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 Massachusetts Municipal Income Fund
Investments January 31, 2012
Showing Percentage of Net Assets
Municipal Bonds - 97.7% | ||||
| Principal Amount | Value | ||
Guam - 0.3% | ||||
Guam Ed. Fing. Foundation Ctfs. of Prtn.: | ||||
Series 2006 A, 5% 10/1/23 | $ 2,740,000 | $ 2,767,016 | ||
Series 2008: | ||||
5.375% 10/1/14 | 1,150,000 | 1,217,494 | ||
5.875% 10/1/18 | 1,900,000 | 2,140,692 | ||
| 6,125,202 | |||
Massachusetts - 93.2% | ||||
Ashland Gen. Oblig. 5.25% 5/15/19 (AMBAC Insured) | 1,300,000 | 1,455,142 | ||
Auburn Gen. Oblig. 5.125% 6/1/23 (AMBAC Insured) | 1,305,000 | 1,431,716 | ||
Berkshire Wind Pwr. Coop. Corp. (Wind Proj.) Series 1, 5.25% 7/1/30 | 5,000,000 | 5,581,650 | ||
Boston Gen. Oblig.: | ||||
Series 2007 B, 5% 3/1/21 | 7,335,000 | 8,534,859 | ||
Series A, 5% 1/1/17 | 480,000 | 536,270 | ||
Boston Spl. Oblig. (Boston City Hosp. Issue Proj.): | ||||
5% 8/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 9,705,000 | 9,875,614 | ||
5% 8/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,990,000 | 8,122,874 | ||
5% 8/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,200,000 | 6,295,976 | ||
Boston Wtr. & Swr. Commission Rev.: | ||||
Series 2009 A: | ||||
5% 11/1/25 | 1,725,000 | 2,077,504 | ||
5% 11/1/26 | 1,500,000 | 1,785,315 | ||
5% 11/1/28 | 2,195,000 | 2,594,753 | ||
Sr. Series A: | ||||
5.25% 11/1/19 | 10,325,000 | 12,198,058 | ||
5.75% 11/1/13 | 730,000 | 774,377 | ||
Braintree Gen. Oblig. Series 2009: | ||||
5% 5/15/23 | 5,000,000 | 6,164,250 | ||
5% 5/15/24 | 5,050,000 | 6,206,400 | ||
Bridgewater-Raynham Reg'l. School District: | ||||
5% 6/15/18 (FSA Insured) | 1,475,000 | 1,513,158 | ||
5% 6/15/19 (FSA Insured) | 1,535,000 | 1,573,037 | ||
Brockton Gen. Oblig.: | ||||
5% 4/1/15 (FSA Insured) | 1,000,000 | 1,126,150 | ||
5% 4/1/16 (FSA Insured) | 1,000,000 | 1,160,840 | ||
Dracut Gen. Oblig.: | ||||
5% 5/15/16 (AMBAC Insured) | 1,400,000 | 1,477,784 | ||
5% 5/15/19 (AMBAC Insured) | 1,000,000 | 1,048,200 | ||
Freetown Lakeville Reg'l. School District 5% 1/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,265,000 | 2,351,817 | ||
Hopedale Gen. Oblig. 5% 11/15/19 (AMBAC Insured) | 1,000,000 | 1,087,980 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Littleton Gen. Oblig. 5% 1/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,380,000 | $ 1,438,581 | ||
Lowell Gen. Oblig.: | ||||
5% 12/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,410,000 | 1,609,529 | ||
5% 12/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,310,000 | 1,476,855 | ||
Lynn Gen. Oblig.: | ||||
5% 12/1/13 | 2,780,000 | 2,990,891 | ||
5% 12/1/14 | 3,560,000 | 3,932,874 | ||
Lynn Wtr. & Swr. Commission Gen. Rev.: | ||||
Series 2003 A, 5% 12/1/32 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000,000 | 2,051,500 | ||
Series 2005 A: | ||||
5% 6/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,055,000 | 2,251,766 | ||
5% 6/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,560,000 | 1,695,190 | ||
Martha's Vineyard Land Bank Rev. Series 2006, 5% 5/1/18 (AMBAC Insured) | 1,195,000 | 1,370,044 | ||
Massachusetts Bay Trans. Auth.: | ||||
Series 1991 A: | ||||
7% 3/1/21 (Escrowed to Maturity) | 670,000 | 797,414 | ||
7% 3/1/21 (FGIC Insured) | 3,025,000 | 3,594,971 | ||
Series 1992 B, 6.2% 3/1/16 | 27,525,000 | 30,791,667 | ||
Series 1993 A, 5.5% 3/1/12 | 690,000 | 692,884 | ||
7% 3/1/21 | 830,000 | 986,389 | ||
Massachusetts Bay Trans. Auth. Assessment Rev.: | ||||
Series 2005 A, 5% 7/1/22 | 3,385,000 | 3,813,609 | ||
Series 2008 A, 5.25% 7/1/34 | 24,750,000 | 28,021,455 | ||
Massachusetts Bay Trans. Auth. Sales Tax Rev.: | ||||
Series 2003 C: | ||||
5.25% 7/1/19 | 4,430,000 | 5,640,896 | ||
5.25% 7/1/21 | 4,000,000 | 5,213,880 | ||
5.25% 7/1/23 | 3,950,000 | 5,211,314 | ||
Series 2004 B: | ||||
5.25% 7/1/17 | 2,680,000 | 3,297,526 | ||
5.25% 7/1/21 | 12,670,000 | 16,514,965 | ||
Series 2004 C, 5.5% 7/1/18 | 3,115,000 | 3,954,524 | ||
Series 2005 A, 5% 7/1/24 | 7,000,000 | 9,136,260 | ||
Series 2005 B, 5.5% 7/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,000,000 | 5,460,120 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts Bay Trans. Auth. Sales Tax Rev.: - continued | ||||
Series 2006 A: | ||||
5.25% 7/1/29 | $ 3,005,000 | $ 4,038,780 | ||
5.25% 7/1/32 | 6,745,000 | 8,889,640 | ||
Series 2006 B, 5.25% 7/1/21 | 8,405,000 | 10,955,665 | ||
Series 2006 C: | ||||
5% 7/1/22 | 9,900,000 | 11,889,603 | ||
5% 7/1/23 | 10,000,000 | 11,922,600 | ||
Series 2010 B: | ||||
5% 7/1/26 | 1,000,000 | 1,207,090 | ||
5% 7/1/27 | 865,000 | 1,037,542 | ||
5% 7/1/28 | 1,000,000 | 1,195,260 | ||
5% 7/1/30 | 1,000,000 | 1,174,470 | ||
Massachusetts Dept. of Agricultural Resources Higher Ed. Rev. (Emerson College Proj.) Series 2006 A: | ||||
5% 1/1/14 | 1,500,000 | 1,611,510 | ||
5% 1/1/17 | 1,250,000 | 1,414,550 | ||
5% 1/1/18 | 1,920,000 | 2,144,256 | ||
5% 1/1/19 | 2,225,000 | 2,455,621 | ||
5% 1/1/20 | 3,000,000 | 3,277,740 | ||
Massachusetts Dept. of Trans. Metropolitan Hwy. Sys. Rev. Series 2010 B: | ||||
5% 1/1/15 | 7,600,000 | 8,352,552 | ||
5% 1/1/25 | 13,340,000 | 15,226,409 | ||
5% 1/1/26 | 4,210,000 | 4,757,805 | ||
5% 1/1/27 | 7,000,000 | 7,858,690 | ||
5% 1/1/30 | 5,000,000 | 5,710,800 | ||
5% 1/1/35 | 4,230,000 | 4,702,068 | ||
Massachusetts Dev. Fin. Agcy. Resource Recovery Rev. Bonds (Waste Mgmt., Inc. Proj.) Series 1999 B, 3.4%, tender 12/1/12 (a)(b) | 2,000,000 | 2,040,960 | ||
Massachusetts Dev. Fin. Agcy. Rev.: | ||||
(Babson College Proj.) Series 2007 A, 5% 10/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,165,000 | 1,315,192 | ||
(Boston College Proj.) Series P: | ||||
5% 7/1/20 | 2,500,000 | 2,910,675 | ||
5% 7/1/21 | 3,090,000 | 3,568,270 | ||
(Boston Univ. Proj.): | ||||
Series T1, 5% 10/1/39 (AMBAC Insured) | 10,000,000 | 10,343,800 | ||
Series U4, 5.7% 10/1/40 | 3,100,000 | 3,453,276 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts Dev. Fin. Agcy. Rev.: - continued | ||||
(Brandeis Univ. Proj.) Series N: | ||||
5% 10/1/23 | $ 1,040,000 | $ 1,180,150 | ||
5% 10/1/24 | 1,210,000 | 1,365,993 | ||
(Carleton-Willard Village Proj.) Series 2010: | ||||
4.75% 12/1/20 | 3,355,000 | 3,547,946 | ||
5.25% 12/1/25 | 820,000 | 859,598 | ||
5.625% 12/1/30 | 1,000,000 | 1,046,590 | ||
(College of the Holy Cross Proj.): | ||||
Series 2008 A, 5% 9/1/26 | 1,500,000 | 1,740,930 | ||
Series 2008 B, 5% 9/1/22 | 1,100,000 | 1,300,200 | ||
(Deerfield Academy Proj.) 5% 10/1/40 | 10,500,000 | 11,801,055 | ||
(Partners HealthCare Sys. Proj.) Series 2011 K6, 5.375% 7/1/41 | 7,000,000 | 7,792,470 | ||
(Regis College Proj.) Series 1998: | ||||
5.25% 10/1/18 | 1,685,000 | 1,685,404 | ||
5.5% 10/1/28 | 5,660,000 | 5,268,158 | ||
(Tufts Med. Ctr. Proj.) Series I, 6.25% 1/1/27 | 8,500,000 | 9,404,145 | ||
Bonds (Dominion Energy Brayton Point Proj.) Series 2010 A, 2.25%, tender 9/1/16 (a) | 3,000,000 | 3,057,720 | ||
Series 2008, 5.75% 9/1/25 | 9,500,000 | 11,310,985 | ||
Series 2011 B, 5% 7/1/41 | 6,520,000 | 7,276,059 | ||
Series 2011 H: | ||||
5.125% 7/1/26 | 5,500,000 | 5,878,675 | ||
5.5% 7/1/31 | 7,750,000 | 8,295,988 | ||
Series 2011: | ||||
5% 10/1/20 | 1,215,000 | 1,431,549 | ||
5% 7/1/41 | 5,000,000 | 5,558,650 | ||
5.25% 10/1/41 | 5,485,000 | 5,947,276 | ||
Series I, 6.875% 1/1/41 | 9,000,000 | 9,989,100 | ||
Massachusetts Dev. Fin. Agcy. Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) Series 2002, 5.5%, tender 5/1/14 (a)(b) | 10,250,000 | 11,141,853 | ||
Massachusetts Edl. Fing. Auth. Rev.: | ||||
Series 2010 A: | ||||
5.5% 1/1/17 | 3,000,000 | 3,459,930 | ||
5.5% 1/1/22 | 3,500,000 | 4,049,850 | ||
5.5% 1/1/23 (b) | 2,150,000 | 2,359,152 | ||
Series 2010 B: | ||||
4.5% 1/1/16 (b) | 855,000 | 907,497 | ||
4.8% 1/1/17 (b) | 2,585,000 | 2,791,050 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts Fed. Hwy. Series 1998 A, 0% 6/15/15 (Escrowed to Maturity) | $ 1,455,000 | $ 1,413,562 | ||
Massachusetts Gen. Oblig.: | ||||
Series 2001 D: | ||||
5.5% 11/1/20 | 1,000,000 | 1,313,230 | ||
5.5% 11/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000,000 | 2,626,460 | ||
Series 2002 D, 5.375% 8/1/22 (Pre-Refunded to 8/1/12 @ 100) | 240,000 | 246,134 | ||
Series 2002 E, 5.25% 1/1/21 (Pre-Refunded to 1/1/13 @ 100) | 695,000 | 726,602 | ||
Series 2004 A, 5.5% 8/1/30 | 2,000,000 | 2,739,080 | ||
Series 2005 A, 5% 3/1/18 | 25,000,000 | 28,153,250 | ||
Series 2006 D, 5% 8/1/19 | 8,990,000 | 10,501,848 | ||
Series 2007 A, 0.819% 5/1/37 (a) | 20,000,000 | 15,595,400 | ||
Series 2007 C: | ||||
5% 8/1/37 | 36,375,000 | 39,976,853 | ||
5.25% 8/1/21 (AMBAC Insured) | 980,000 | 1,199,775 | ||
5.25% 8/1/22 | 4,085,000 | 4,976,715 | ||
5.25% 8/1/23 | 12,960,000 | 15,712,056 | ||
5.25% 8/1/24 | 6,550,000 | 7,894,519 | ||
5.25% 8/1/25 (FSA Insured) | 10,000,000 | 11,994,100 | ||
Series 2008 A: | ||||
5% 8/1/20 | 1,615,000 | 1,962,419 | ||
5% 8/1/22 | 3,685,000 | 4,414,704 | ||
5% 8/1/24 | 7,380,000 | 8,786,480 | ||
Series 2009 A: | ||||
5% 3/1/29 | 1,520,000 | 1,788,797 | ||
5% 3/1/39 | 17,000,000 | 18,901,110 | ||
Series 2009 B: | ||||
5% 7/1/24 | 1,800,000 | 2,200,734 | ||
5% 7/1/30 | 7,850,000 | 9,233,798 | ||
Series 2011 A: | ||||
5% 4/1/26 | 5,150,000 | 6,287,790 | ||
5% 4/1/28 | 5,880,000 | 7,066,114 | ||
Series 2011 B: | ||||
5% 8/1/23 | 5,770,000 | 7,090,811 | ||
5% 8/1/24 | 1,750,000 | 2,138,378 | ||
Series 2011 D, 5% 10/1/24 | 7,860,000 | 9,827,908 | ||
Series C, 5.5% 12/1/22 | 7,000,000 | 9,406,740 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts Health & Edl. Facilities Auth. Rev.: | ||||
(Baystate Health Sys. Proj.) Series 2009 I, 5.75% 7/1/36 | $ 7,500,000 | $ 8,060,475 | ||
(Baystate Med. Ctr. Proj.) Series F: | ||||
5.75% 7/1/17 | 1,305,000 | 1,326,754 | ||
5.75% 7/1/18 | 1,300,000 | 1,320,631 | ||
5.75% 7/1/19 | 1,455,000 | 1,477,189 | ||
5.75% 7/1/20 | 1,240,000 | 1,257,930 | ||
5.75% 7/1/33 | 3,000,000 | 3,021,000 | ||
(Berklee College of Music Proj.) Series 2007 A: | ||||
5% 10/1/16 | 1,000,000 | 1,156,000 | ||
5% 10/1/19 | 3,290,000 | 3,753,265 | ||
5% 10/1/21 | 3,270,000 | 3,686,042 | ||
5% 10/1/23 | 2,000,000 | 2,216,640 | ||
5% 10/1/25 | 5,950,000 | 6,542,323 | ||
(Blood Research Institute Proj.) Series A, 6.5% 2/1/22 (c) | 9,685,000 | 9,726,742 | ||
(Cape Cod Healthcare Proj.) Series 2004 D: | ||||
5% 11/15/31 (Assured Guaranty Corp. Insured) | 2,000,000 | 2,153,300 | ||
5.125% 11/15/35 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,061,490 | ||
6% 11/15/28 (Assured Guaranty Corp. Insured) | 2,735,000 | 3,160,867 | ||
(CareGroup, Inc. Proj.): | ||||
Series 2008 B1, 5.375% 2/1/27 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,113,610 | ||
Series 2008 B2: | ||||
5% 2/1/25 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 800,000 | 875,976 | ||
5.375% 2/1/26 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,750,000 | 1,959,633 | ||
5.375% 2/1/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000,000 | 2,217,380 | ||
Series 2008 D: | ||||
5.25% 7/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,500,000 | 1,716,165 | ||
5.25% 7/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,450,000 | 1,649,825 | ||
5.25% 7/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,134,060 | ||
5.25% 7/1/24 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,900,000 | 2,121,768 | ||
Series 2008 E1: | ||||
5% 7/1/28 | 2,525,000 | 2,688,494 | ||
Municipal Bonds - continued |
| Principal Amount | Value | |
Massachusetts - continued | |||
Massachusetts Health & Edl. Facilities Auth. Rev.: - continued | |||
(CareGroup, Inc. Proj.): - continued | |||
Series 2008 E1: - continued | |||
5.125% 7/1/33 | $ 2,000,000 | $ 2,085,840 | |
5.125% 7/1/38 | 4,040,000 | 4,170,007 | |
5.375% 7/1/21 | 10,850,000 | 12,424,118 | |
Series 2008 E2: | |||
5.375% 7/1/23 | 3,500,000 | 3,963,995 | |
5.375% 7/1/24 | 5,015,000 | 5,667,351 | |
5.375% 7/1/25 | 3,500,000 | 3,933,650 | |
(Catholic Health East Proj.) Series 2010, 5% 11/15/18 | 1,005,000 | 1,165,589 | |
(Children's Hosp. Proj.) Series 2009 M, 5.5% 12/1/39 | 20,000,000 | 22,253,800 | |
(Emerson Hosp. Proj.) Series 2005 E, 5% 8/15/35 (Radian Asset Assurance, Inc. Insured) | 2,500,000 | 2,142,075 | |
(Harvard Univ. Proj.) Series 2009 A, 5.5% 11/15/36 | 1,025,000 | 1,204,539 | |
(Lahey Clinic Med. Ctr. Proj.) Series 2005 C: | |||
5% 8/15/30 (FGIC Insured) | 5,190,000 | 5,383,587 | |
5% 8/15/33 (FGIC Insured) | 5,000,000 | 5,098,750 | |
(Massachusetts Gen. Hosp. Proj.) Series F, 6.25% 7/1/12 (Escrowed to Maturity) | 2,530,000 | 2,592,871 | |
(Massachusetts Institute of Technology Proj.): | |||
Series 2008 N, 5% 7/1/19 | 3,000,000 | 3,634,050 | |
Series 2008 O, 6% 7/1/36 | 6,400,000 | 7,693,952 | |
Series L, 5% 7/1/23 | 3,990,000 | 5,296,845 | |
(Northeastern Univ. Proj.): | |||
Series 2008 R: | |||
5% 10/1/16 | 600,000 | 693,600 | |
5% 10/1/17 | 750,000 | 884,805 | |
5% 10/1/18 | 500,000 | 595,505 | |
5% 10/1/20 | 2,000,000 | 2,302,340 | |
5% 10/1/22 | 1,160,000 | 1,308,793 | |
5% 10/1/27 | 3,030,000 | 3,339,454 | |
5% 10/1/28 | 1,000,000 | 1,095,860 | |
5% 10/1/33 | 5,000,000 | 5,325,700 | |
Series 2009 Y1: | |||
5% 10/1/15 | 1,425,000 | 1,606,346 | |
5% 10/1/16 | 1,495,000 | 1,728,220 | |
5% 10/1/17 | 1,570,000 | 1,852,192 | |
5% 10/1/19 | 1,730,000 | 2,054,998 |
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts Health & Edl. Facilities Auth. Rev.: - continued | ||||
(Northeastern Univ. Proj.): - continued | ||||
Series 2009 Y2: | ||||
5% 10/1/16 |
| $ 1,090,000 | $ 1,260,040 | |
5% 10/1/17 | 1,145,000 | 1,350,802 | ||
5% 10/1/18 | 1,215,000 | 1,447,077 | ||
(Partners HealthCare Sys., Inc. Proj.): | ||||
Series 2005 F: | ||||
5% 7/1/17 | 1,410,000 | 1,589,042 | ||
5% 7/1/19 | 1,760,000 | 1,970,302 | ||
5% 7/1/20 | 2,350,000 | 2,625,820 | ||
5% 7/1/21 | 1,150,000 | 1,277,259 | ||
5% 7/1/22 | 1,855,000 | 2,054,413 | ||
Series 2007 G: | ||||
5% 7/1/18 | 1,500,000 | 1,769,295 | ||
5% 7/1/20 | 1,300,000 | 1,509,183 | ||
5% 7/1/22 | 1,350,000 | 1,542,551 | ||
5% 7/1/27 | 7,750,000 | 8,588,085 | ||
5% 7/1/28 | 5,515,000 | 6,085,196 | ||
Series 2009 I3: | ||||
5% 7/1/21 | 2,300,000 | 2,741,600 | ||
5% 7/1/22 | 5,000,000 | 5,903,750 | ||
Series 2010 J1, 5% 7/1/39 | 23,500,000 | 25,352,975 | ||
Series C: | ||||
5.75% 7/1/21 | 95,000 | 95,950 | ||
5.75% 7/1/32 | 190,000 | 191,900 | ||
Series E: | ||||
5% 7/1/17 | 1,255,000 | 1,326,974 | ||
5% 7/1/19 | 1,390,000 | 1,463,475 | ||
(South Shore Hosp. Proj.) Series F: | ||||
5.5% 7/1/12 | 800,000 | 802,840 | ||
5.625% 7/1/19 | 370,000 | 370,714 | ||
5.75% 7/1/29 | 6,370,000 | 6,377,708 | ||
(Tufts Univ. Proj.): | ||||
Series 2008 O, 5.375% 8/15/38 | 4,500,000 | 5,129,775 | ||
Series J, 5.5% 8/15/17 | 500,000 | 619,910 | ||
(UMass Memorial Proj.) Series 2010 G, 5% 7/1/17 | 2,215,000 | 2,471,010 | ||
(UMass Worcester Proj.) Series 2005 D: | ||||
5% 10/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,040,000 | 3,309,830 | ||
5% 10/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,735,000 | 4,056,322 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts Health & Edl. Facilities Auth. Rev.: - continued | ||||
(Wellesley College Proj.) Series II: | ||||
5% 7/1/19 | $ 1,975,000 | $ 2,089,708 | ||
5% 7/1/20 | 2,075,000 | 2,192,196 | ||
(Williams College Proj.): | ||||
Series 2003 H, 5% 7/1/20 | 1,005,000 | 1,052,185 | ||
Series 2006 L: | ||||
5% 7/1/17 | 1,000,000 | 1,186,930 | ||
5% 7/1/18 | 1,000,000 | 1,180,240 | ||
5% 7/1/19 | 1,695,000 | 1,974,082 | ||
5% 7/1/20 | 2,410,000 | 2,795,528 | ||
5% 7/1/21 | 2,535,000 | 2,915,808 | ||
(Winchester Hosp. Proj.) Series 2010 H, 5.25% 7/1/38 | 18,975,000 | 19,506,490 | ||
(Woods Hole Oceanographic Institution Proj.) Series 2008 B: | ||||
5.25% 6/1/25 | 1,760,000 | 2,043,818 | ||
5.375% 6/1/30 | 8,000,000 | 9,186,640 | ||
(Worcester City Campus Proj.) Series 2007 E: | ||||
5% 10/1/17 (FGIC Insured) | 2,130,000 | 2,441,598 | ||
5% 10/1/18 (FGIC Insured) | 1,985,000 | 2,250,613 | ||
5% 10/1/19 (FGIC Insured) | 1,350,000 | 1,512,729 | ||
5% 10/1/20 (FGIC Insured) | 2,465,000 | 2,732,181 | ||
Bonds: | ||||
(Baystate Health Sys. Proj.) Series 2009 K, 5%, tender 7/1/15 (a) | 3,000,000 | 3,299,460 | ||
(Univ. of Massachusetts Proj.) Series 2000 A, 2.2%, tender 4/1/13 (a) | 4,000,000 | 4,071,120 | ||
Series 2008 E2. 5.375% 7/1/21 | 2,075,000 | 2,376,041 | ||
Series 2010 H, 5% 7/1/16 | 1,000,000 | 1,109,080 | ||
Series E, 5% 7/15/27 | 7,195,000 | 7,141,325 | ||
5.125% 7/15/37 | 20,000,000 | 20,196,200 | ||
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys. Rev. (Nuclear #6 Proj.): | ||||
Series 2012 A: | ||||
5% 7/1/15 | 3,500,000 | 3,956,995 | ||
5% 7/1/16 | 3,700,000 | 4,298,808 | ||
Series A, 5.25% 7/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,465,000 | 1,484,690 | ||
Massachusetts Port Auth. Rev.: | ||||
Series 1973, 5.625% 7/1/12 (Escrowed to Maturity) | 500,000 | 511,245 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts Port Auth. Rev.: - continued | ||||
Series 2003 A: | ||||
5% 7/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 2,000,000 | $ 2,109,480 | ||
5% 7/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,915,000 | 7,280,527 | ||
5% 7/1/20 | 2,505,000 | 2,627,645 | ||
5% 7/1/21 | 3,000,000 | 3,140,010 | ||
5% 7/1/22 | 2,000,000 | 2,090,180 | ||
Series 2005 A: | ||||
5% 7/1/18 (AMBAC Insured) | 5,205,000 | 5,916,471 | ||
5% 7/1/21 (AMBAC Insured) | 5,010,000 | 5,667,763 | ||
Series 2007 C: | ||||
5% 7/1/17 (FSA Insured) (b) | 1,660,000 | 1,946,715 | ||
5% 7/1/22 (FSA Insured) (b) | 6,140,000 | 6,859,485 | ||
5% 7/1/27 (FSA Insured) (b) | 5,000,000 | 5,441,200 | ||
Series 2010 A: | ||||
5% 7/1/34 | 2,000,000 | 2,243,200 | ||
5% 7/1/40 | 12,000,000 | 13,227,840 | ||
Massachusetts Port Auth. Spl. Facilities Rev.: | ||||
(BosFuel Corp. Proj.) Series 2007: | ||||
5% 7/1/18 (FGIC Insured) (b) | 1,500,000 | 1,607,700 | ||
5% 7/1/19 (FGIC Insured) (b) | 1,000,000 | 1,067,740 | ||
5% 7/1/20 (FGIC Insured) (b) | 1,560,000 | 1,657,001 | ||
5% 7/1/21 (FGIC Insured) (b) | 1,000,000 | 1,061,180 | ||
(ConRAC Proj.) Series 2011 A, 5.125% 7/1/41 | 10,000,000 | 10,817,700 | ||
(Delta Air Lines, Inc. Proj.) Series 2001 A: | ||||
5.5% 1/1/13 (AMBAC Insured) (b) | 7,015,000 | 6,941,904 | ||
5.5% 1/1/14 (AMBAC Insured) (b) | 6,040,000 | 5,902,107 | ||
5.5% 1/1/15 (AMBAC Insured) (b) | 5,000,000 | 4,819,150 | ||
5.5% 1/1/16 (AMBAC Insured) (b) | 5,000,000 | 4,748,500 | ||
5.5% 1/1/17 (AMBAC Insured) (b) | 5,555,000 | 5,202,369 | ||
5.5% 1/1/18 (AMBAC Insured) (b) | 6,000,000 | 5,556,300 | ||
5.5% 1/1/19 (AMBAC Insured) (b) | 5,000,000 | 4,558,400 | ||
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev.: | ||||
Series 2005 A: | ||||
5% 8/15/19 | 17,000,000 | 19,405,840 | ||
5% 8/15/22 | 5,540,000 | 6,274,382 | ||
5% 8/15/23 | 6,000,000 | 6,784,200 | ||
5% 8/15/24 | 26,600,000 | 29,978,200 | ||
5% 8/15/25 | 13,275,000 | 14,936,366 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev.: - continued | ||||
Series 2005 A: - continued | ||||
5% 8/15/26 | $ 2,000,000 | $ 2,246,620 | ||
5% 8/15/27 | 10,000,000 | 11,214,700 | ||
5% 8/15/30 | 130,060,000 | 144,906,337 | ||
Series 2007 A: | ||||
4.5% 8/15/35 | 18,560,000 | 19,687,520 | ||
4.75% 8/15/32 | 2,685,000 | 2,915,776 | ||
5% 8/15/17 (AMBAC Insured) | 5,000,000 | 6,074,000 | ||
5% 8/15/37 | 6,605,000 | 7,189,476 | ||
Series 2011 B: | ||||
5% 10/15/41 | 25,000,000 | 28,236,250 | ||
5.25% 10/15/35 | 12,500,000 | 14,713,125 | ||
Massachusetts Spl. Oblig. Dedicated Tax Rev.: | ||||
Series 2004, 5.25% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,935,000 | 7,006,149 | ||
Series 2005: | ||||
5% 1/1/20 (FGIC Insured) | 2,500,000 | 2,932,325 | ||
5.5% 1/1/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,257,800 | ||
5.5% 1/1/34 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,000,000 | 4,943,640 | ||
Massachusetts Spl. Oblig. Rev. Series 2005 A: | ||||
5% 6/1/23 (FSA Insured) | 2,000,000 | 2,209,200 | ||
5.5% 6/1/16 (FSA Insured) | 3,000,000 | 3,598,560 | ||
5.5% 6/1/18 (FSA Insured) | 9,740,000 | 12,304,932 | ||
5.5% 6/1/19 | 10,000,000 | 12,845,800 | ||
Massachusetts State College Bldg. Auth. Rev.: | ||||
Series 2002 A, 0% 5/1/22 (Escrowed to Maturity) | 2,250,000 | 1,772,865 | ||
Series 2003 A: | ||||
5.25% 5/1/14 (Pre-Refunded to 5/1/13 @ 100) | 2,075,000 | 2,201,139 | ||
5.25% 5/1/15 (Pre-Refunded to 5/1/13 @ 100) | 2,030,000 | 2,153,404 | ||
5.25% 5/1/16 (Pre-Refunded to 5/1/13 @ 100) | 1,295,000 | 1,373,723 | ||
5.25% 5/1/19 (Pre-Refunded to 5/1/13 @ 100) | 2,680,000 | 2,842,917 | ||
5.25% 5/1/21 (Pre-Refunded to 5/1/13 @ 100) | 1,965,000 | 2,084,452 | ||
Series 2003 B: | ||||
0% 5/1/28 (XL Cap. Assurance, Inc. Insured) | 6,080,000 | 3,476,970 | ||
5.375% 5/1/18 (XL Cap. Assurance, Inc. Insured) | 1,100,000 | 1,370,226 | ||
5.375% 5/1/20 (XL Cap. Assurance, Inc. Insured) | 1,825,000 | 2,334,011 | ||
Series 2004 A, 5% 5/1/43 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 11,410,000 | 11,723,547 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts State College Bldg. Auth. Rev.: - continued | ||||
Series 2006 A: | ||||
5% 5/1/31 (AMBAC Insured) | $ 5,000,000 | $ 5,468,550 | ||
5% 5/1/36 (AMBAC Insured) | 9,220,000 | 9,846,868 | ||
Series 2008 A: | ||||
5% 5/1/19 (Assured Guaranty Corp. Insured) | 1,730,000 | 2,095,341 | ||
5% 5/1/20 (Assured Guaranty Corp. Insured) | 2,130,000 | 2,540,536 | ||
5% 5/1/21 (Assured Guaranty Corp. Insured) | 2,440,000 | 2,905,503 | ||
5% 5/1/22 (Assured Guaranty Corp. Insured) | 2,430,000 | 2,862,127 | ||
5% 5/1/23 (Assured Guaranty Corp. Insured) | 2,490,000 | 2,919,998 | ||
Series 2009 A: | ||||
5.375% 5/1/34 | 2,150,000 | 2,472,608 | ||
5.5% 5/1/39 | 7,000,000 | 7,893,410 | ||
5.5% 5/1/49 | 3,440,000 | 3,797,932 | ||
5.75% 5/1/49 | 10,000,000 | 11,197,300 | ||
Series 2009 B: | ||||
5% 5/1/28 | 1,000,000 | 1,186,000 | ||
5% 5/1/35 | 5,500,000 | 6,182,495 | ||
5% 5/1/40 | 4,625,000 | 5,114,371 | ||
Series 2012 A: | ||||
5% 5/1/36 | 5,000,000 | 5,673,000 | ||
5% 5/1/41 | 10,000,000 | 11,208,300 | ||
Massachusetts Tpk. Auth. Metropolitan Hwy. Sys. Rev.: | ||||
Sr. Series A: | ||||
0% 1/1/25 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,110,000 | 3,107,391 | ||
0% 1/1/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,700,000 | 3,962,035 | ||
0% 1/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 33,195,000 | 16,112,853 | ||
Sr. Series C: | ||||
0% 1/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000,000 | 2,741,190 | ||
0% 1/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,705,000 | 6,813,377 | ||
0% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,660,000 | 1,408,394 | ||
0% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 13,815,000 | 11,176,749 | ||
Massachusetts Wtr. Poll. Abatement Trust: | ||||
(MWRA Prog.) Series 2002 A, 5.25% 8/1/20 | 1,700,000 | 1,735,377 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts Wtr. Poll. Abatement Trust: - continued | ||||
(Pool Prog.): | ||||
Series 10: | ||||
5% 8/1/22 | $ 305,000 | $ 332,688 | ||
5% 8/1/29 | 1,765,000 | 1,899,917 | ||
5% 8/1/34 | 150,000 | 161,162 | ||
5.25% 8/1/15 | 2,435,000 | 2,718,775 | ||
Series 12: | ||||
5% 8/1/19 | 13,995,000 | 16,381,987 | ||
5% 8/1/20 | 9,570,000 | 11,115,555 | ||
Series 13: | ||||
5% 8/1/19 | 3,740,000 | 4,454,003 | ||
5% 8/1/20 | 5,145,000 | 6,211,970 | ||
5% 8/1/21 | 5,350,000 | 6,412,136 | ||
5% 8/1/22 | 8,355,000 | 9,989,154 | ||
5% 8/1/23 | 6,385,000 | 7,592,787 | ||
5% 8/1/24 | 1,000,000 | 1,183,930 | ||
Series 2004 A: | ||||
5.25% 2/1/18 | 6,300,000 | 7,866,558 | ||
5.25% 8/1/22 | 6,525,000 | 8,654,238 | ||
5.25% 2/1/23 | 1,390,000 | 1,835,481 | ||
5.25% 2/1/24 | 1,170,000 | 1,560,452 | ||
5.25% 8/1/24 | 3,780,000 | 5,077,636 | ||
Series 4, 5.125% 8/1/14 | 70,000 | 70,250 | ||
Series 5, 5.25% 8/1/15 | 75,000 | 75,269 | ||
Series 6: | ||||
5.25% 8/1/19 | 30,000 | 30,110 | ||
5.5% 8/1/30 | 17,580,000 | 17,614,808 | ||
5.625% 8/1/14 | 115,000 | 115,457 | ||
5.625% 8/1/15 | 25,000 | 25,097 | ||
5.625% 8/1/16 | 485,000 | 486,819 | ||
Series 7, 5.25% 2/1/17 | 2,795,000 | 2,805,090 | ||
Series 8: | ||||
5% 8/1/17 | 110,000 | 112,342 | ||
5% 8/1/20 | 105,000 | 107,056 | ||
Series 9, 5.25% 8/1/33 | 595,000 | 616,456 | ||
Series 14: | ||||
5% 8/1/25 | 4,950,000 | 6,044,247 | ||
5% 8/1/32 | 5,685,000 | 6,638,147 | ||
5% 8/1/38 | 8,390,000 | 9,466,689 | ||
Series 2010 A, 5% 8/1/21 | 9,000,000 | 11,470,590 | ||
5% 8/1/21 | 7,520,000 | 9,336,982 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts Wtr. Poll. Abatement Trust: - continued | ||||
5% 8/1/22 | $ 4,290,000 | $ 5,282,234 | ||
5% 8/1/23 | 5,000,000 | 6,156,450 | ||
5% 8/1/24 | 4,215,000 | 5,173,238 | ||
5% 8/1/25 | 4,965,000 | 6,062,563 | ||
5% 8/1/26 | 3,205,000 | 3,885,998 | ||
5% 8/1/27 | 2,460,000 | 2,965,555 | ||
5% 8/1/28 | 3,480,000 | 4,157,800 | ||
Massachusetts Wtr. Poll. Abatement Trust Wtr. Poll. Abatement Rev. (MWRA Ln. Prog.): | ||||
Series 1993 A, 5.45% 2/1/13 (Escrowed to Maturity) | 525,000 | 526,943 | ||
Series 1998 A: | ||||
5.25% 8/1/12 | 565,000 | 567,328 | ||
5.25% 8/1/13 | 330,000 | 330,386 | ||
Series A, 5% 8/1/15 (Escrowed to Maturity) | 950,000 | 1,095,759 | ||
Massachusetts Wtr. Resources Auth. Wtr. & Swr. Rev.: | ||||
Series 1992 A, 6.5% 7/15/19 (Escrowed to Maturity) | 21,960,000 | 26,864,327 | ||
Series 1998 B: | ||||
5.5% 8/1/15 (FSA Insured) | 1,500,000 | 1,714,170 | ||
5.5% 8/1/16 (FSA Insured) | 1,425,000 | 1,717,980 | ||
Series 2002 J, 5.5% 8/1/20 | 1,000,000 | 1,303,980 | ||
Series 2005 A: | ||||
5.25% 8/1/21 | 12,645,000 | 15,114,821 | ||
5.25% 8/1/24 | 9,000,000 | 10,571,130 | ||
Series 2006 A, 5% 8/1/41 | 9,000,000 | 9,677,070 | ||
Series 2007 A: | ||||
5% 8/1/23 (FSA Insured) | 2,000,000 | 2,319,940 | ||
5% 8/1/25 (FSA Insured) | 2,000,000 | 2,301,300 | ||
5% 8/1/26 (FSA Insured) | 2,000,000 | 2,288,960 | ||
5% 8/1/27 (FSA Insured) | 2,000,000 | 2,277,720 | ||
5% 8/1/28 (FSA Insured) | 2,000,000 | 2,267,540 | ||
Series 2009 A: | ||||
5% 8/1/34 | 6,350,000 | 7,151,307 | ||
5% 8/1/39 | 8,360,000 | 9,261,710 | ||
Series 2009 B, 5% 8/1/22 | 2,540,000 | 3,117,444 | ||
Series 2011 B, 5% 8/1/41 | 16,000,000 | 18,076,320 | ||
Series 2011 C: | ||||
5% 8/1/24 | 5,000,000 | 6,247,100 | ||
5% 8/1/25 | 14,235,000 | 17,660,937 | ||
5.25% 8/1/42 | 8,425,000 | 9,710,234 | ||
Series J: | ||||
5% 8/1/42 | 100,000 | 100,871 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts Wtr. Resources Auth. Wtr. & Swr. Rev.: - continued | ||||
Series J: - continued | ||||
5% 8/1/42 (Pre-Refunded to 8/1/12 @ 100) | $ 7,300,000 | $ 7,471,258 | ||
Monson Gen. Oblig.: | ||||
5.25% 5/15/17 (AMBAC Insured) | 2,120,000 | 2,166,958 | ||
5.25% 5/15/19 (AMBAC Insured) | 2,335,000 | 2,384,946 | ||
5.25% 11/1/21 (AMBAC Insured) | 1,000,000 | 1,080,570 | ||
5.25% 5/15/22 (AMBAC Insured) | 2,985,000 | 3,044,431 | ||
Newton Gen. Oblig. Series 2009 A: | ||||
4% 4/1/23 | 1,490,000 | 1,699,613 | ||
5% 4/1/20 | 1,840,000 | 2,295,492 | ||
5% 4/1/21 | 1,915,000 | 2,353,841 | ||
Pioneer Valley Reg'l. School District: | ||||
5.375% 6/15/15 (AMBAC Insured) | 1,235,000 | 1,269,815 | ||
5.375% 6/15/16 (AMBAC Insured) | 1,000,000 | 1,028,300 | ||
Pittsfield Gen. Oblig.: | ||||
4% 3/1/15 | 1,555,000 | 1,699,506 | ||
4% 3/1/16 | 3,355,000 | 3,753,306 | ||
Plymouth Gen. Oblig.: | ||||
Series 2009: | ||||
5% 5/15/23 | 1,255,000 | 1,525,089 | ||
5% 5/15/25 | 1,150,000 | 1,382,714 | ||
5% 10/15/15 | 500,000 | 577,395 | ||
5% 10/15/16 | 1,675,000 | 2,001,424 | ||
5% 10/15/17 | 1,665,000 | 2,040,324 | ||
5% 10/15/19 | 500,000 | 632,195 | ||
Randolph Gen. Oblig.: | ||||
5% 9/1/16 (AMBAC Insured) | 1,170,000 | 1,272,562 | ||
5% 9/1/18 (AMBAC Insured) | 1,090,000 | 1,178,933 | ||
5% 9/1/19 (AMBAC Insured) | 1,085,000 | 1,168,686 | ||
Reading Gen. Oblig.: | ||||
5% 3/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,100,000 | 2,291,709 | ||
5% 3/15/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,190,000 | 2,387,012 | ||
Revere Gen. Oblig. Series 2009: | ||||
5% 4/1/28 | 515,000 | 588,758 | ||
5% 4/1/39 | 2,000,000 | 2,155,640 | ||
5.5% 4/1/27 | 2,510,000 | 2,970,108 | ||
Salem Gen. Oblig.: | ||||
5% 1/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,525,000 | 1,590,926 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Salem Gen. Oblig.: - continued | ||||
5% 1/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,350,000 | $ 1,406,255 | ||
Springfield Gen. Oblig.: | ||||
Series 2005: | ||||
5% 8/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,610,000 | 3,995,656 | ||
5% 8/1/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,050,000 | 2,259,490 | ||
Series 2007: | ||||
5% 8/1/15 (FSA Insured) | 1,000,000 | 1,133,710 | ||
5% 8/1/16 (FSA Insured) | 8,000,000 | 9,356,800 | ||
5% 8/1/17 (FSA Insured) | 5,000,000 | 5,931,750 | ||
5% 8/1/18 (FSA Insured) | 7,210,000 | 8,450,264 | ||
5.75% 8/1/14 (FSA Insured) | 4,000,000 | 4,498,640 | ||
Springfield Wtr. & Swr. Commission Rev. Series 2008 A: | ||||
5.75% 10/15/26 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,195,220 | ||
5.75% 10/15/27 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,193,180 | ||
5.75% 10/15/28 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,187,770 | ||
Taunton Gen. Oblig.: | ||||
5% 12/1/15 | 2,350,000 | 2,673,619 | ||
5% 12/1/16 | 2,340,000 | 2,741,427 | ||
5% 12/1/17 | 1,965,000 | 2,347,369 | ||
Univ. of Massachusetts Bldg. Auth. Facilities Rev.: | ||||
Series 2004 1, 5.375% 11/1/16 (AMBAC Insured) | 1,305,000 | 1,445,653 | ||
Series 2008 2, 5% 5/1/38 (FSA Insured) | 20,605,000 | 22,264,115 | ||
Woods Hole, Martha's Vineyard & Nantucket Steamship Auth. Series 2004 B, 5% 3/1/17 | 3,300,000 | 3,723,753 | ||
Worcester Gen. Oblig.: | ||||
Series 2001 A: | ||||
5.25% 8/15/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 310,000 | 310,970 | ||
5.5% 8/15/13 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 245,000 | 246,005 | ||
5.5% 8/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 220,000 | 220,812 | ||
Series 2001 B, 5.5% 10/1/14 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 225,000 | 225,835 | ||
| 2,209,822,372 | |||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Puerto Rico - 3.8% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev.: | ||||
Series 1998, 5.75% 7/1/22 (CIFG North America Insured) | $ 3,000,000 | $ 3,111,390 | ||
Series 2002 E, 5.5% 7/1/21 (FSA Insured) | 1,700,000 | 1,983,917 | ||
Puerto Rico Commonwealth Pub. Impt. Gen. Oblig.: | ||||
Series 2004 A: | ||||
5.25% 7/1/18 | 3,500,000 | 3,630,585 | ||
5.25% 7/1/18 (CIFG North America Insured) (FSA Insured) | 2,500,000 | 2,610,675 | ||
Series 2006 A: | ||||
4.425% 7/1/21 (FGIC Insured) (a) | 5,400,000 | 4,763,340 | ||
5.25% 7/1/26 | 3,000,000 | 3,156,360 | ||
5.25% 7/1/30 | 1,960,000 | 2,040,399 | ||
Series 2006 B, 5.25% 7/1/32 | 1,000,000 | 1,039,800 | ||
Series 2007 A, 5.5% 7/1/21 (FGIC Insured) | 8,000,000 | 8,926,480 | ||
Puerto Rico Govt. Dev. Bank Series 2006 B, 5% 12/1/12 | 3,790,000 | 3,914,274 | ||
Puerto Rico Pub. Bldg. Auth. Rev. Bonds Series M2, 5.75%, tender 7/1/17 (a) | 3,100,000 | 3,429,747 | ||
Puerto Rico Pub. Fin. Corp. Commonwealth Appropriation Bonds Series 2004 A, 5.25%, tender 2/1/12 (AMBAC Insured) (a) | 1,015,000 | 1,015,000 | ||
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev.: | ||||
Series 2007 A: | ||||
0% 8/1/41 (FGIC Insured) | 47,350,000 | 9,366,777 | ||
0% 8/1/42 (FGIC Insured) | 6,220,000 | 1,161,212 | ||
0% 8/1/45 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,100,000 | 329,154 | ||
0% 8/1/47 (AMBAC Insured) | 48,100,000 | 6,680,128 | ||
Series 2009 A: | ||||
6% 8/1/42 | 3,800,000 | 4,282,714 | ||
6.5% 8/1/44 | 5,345,000 | 6,251,940 | ||
Series 2010 A, 0% 8/1/33 | 55,000,000 | 17,792,500 | ||
Series 2011 C, 0% 8/1/39 | 16,260,000 | 3,737,198 | ||
| 89,223,590 | |||
Virgin Islands - 0.4% | ||||
Virgin Islands Pub. Fin. Auth.: | ||||
Series 2004 A: | ||||
5% 10/1/13 | 700,000 | 734,006 | ||
5.25% 10/1/16 | 750,000 | 804,360 | ||
Series 2009 A, 6.75% 10/1/37 | 4,000,000 | 4,527,600 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Virgin Islands - continued | ||||
Virgin Islands Pub. Fin. Auth.: - continued | ||||
Series 2009 A1, 5% 10/1/39 | $ 1,500,000 | $ 1,532,445 | ||
Series 2009 B, 5% 10/1/25 | 2,800,000 | 3,029,124 | ||
| 10,627,535 |
TOTAL INVESTMENT PORTFOLIO - 97.7% (Cost $2,129,468,779) | 2,315,798,699 | ||
NET OTHER ASSETS (LIABILITIES) - 2.3% | 54,161,066 | ||
NET ASSETS - 100% | $ 2,369,959,765 |
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. |
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $9,726,742 or 0.4% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Massachusetts Health & Edl. Facilities Auth. Rev. (Blood Research Institute Proj.) Series A, 6.5% 2/1/22 | 9/3/92 | $ 9,083,852 |
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): |
Special Tax | 23.8% |
General Obligations | 20.6% |
Water & Sewer | 14.6% |
Education | 14.1% |
Health Care | 10.9% |
Transportation | 8.5% |
Others* (Individually Less Than 5%) | 7.5% |
| 100.0% |
* Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Massachusetts Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 | |
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $2,129,468,779) |
| $ 2,315,798,699 |
Cash |
| 35,501,409 |
Receivable for fund shares sold | 1,967,575 | |
Interest receivable | 28,630,453 | |
Prepaid expenses | 3,931 | |
Other receivables | 1,799 | |
Total assets | 2,381,903,866 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 7,832,859 | |
Payable for fund shares redeemed | 759,173 | |
Distributions payable | 2,262,602 | |
Accrued management fee | 711,321 | |
Other affiliated payables | 329,237 | |
Other payables and accrued expenses | 48,909 | |
Total liabilities | 11,944,101 | |
|
|
|
Net Assets | $ 2,369,959,765 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,182,470,942 | |
Undistributed net investment income | 207,342 | |
Accumulated undistributed net realized gain (loss) on investments | 951,561 | |
Net unrealized appreciation (depreciation) on investments | 186,329,920 | |
Net Assets, for 187,711,810 shares outstanding | $ 2,369,959,765 | |
Net Asset Value, offering price and redemption price per share ($2,369,959,765 ÷ 187,711,810 shares) | $ 12.63 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Massachusetts Municipal Income Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2012 | |
Investment Income |
|
|
Interest |
| $ 90,947,098 |
|
|
|
Expenses | ||
Management fee | $ 7,925,360 | |
Transfer agent fees | 1,497,705 | |
Accounting fees and expenses | 389,552 | |
Custodian fees and expenses | 25,101 | |
Independent trustees' compensation | 8,014 | |
Registration fees | 18,486 | |
Audit | 55,996 | |
Legal | 10,725 | |
Miscellaneous | 22,838 | |
Total expenses before reductions | 9,953,777 | |
Expense reductions | (10,819) | 9,942,958 |
Net investment income (loss) | 81,004,140 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 9,338,132 | |
Change in net unrealized appreciation (depreciation) on investment securities | 198,102,188 | |
Net gain (loss) | 207,440,320 | |
Net increase (decrease) in net assets resulting from operations | $ 288,444,460 |
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) | $ 81,004,140 | $ 91,153,129 |
Net realized gain (loss) | 9,338,132 | 7,961,818 |
Change in net unrealized appreciation (depreciation) | 198,102,188 | (65,563,791) |
Net increase (decrease) in net assets resulting | 288,444,460 | 33,551,156 |
Distributions to shareholders from net investment income | (81,130,118) | (91,171,201) |
Distributions to shareholders from net realized gain | (7,520,465) | - |
Total distributions | (88,650,583) | (91,171,201) |
Share transactions | 373,847,502 | 444,826,071 |
Reinvestment of distributions | 60,250,869 | 65,090,011 |
Cost of shares redeemed | (359,151,890) | (728,528,082) |
Net increase (decrease) in net assets resulting from share transactions | 74,946,481 | (218,612,000) |
Redemption fees | 7,463 | 27,046 |
Total increase (decrease) in net assets | 274,747,821 | (276,204,999) |
|
|
|
Net Assets | ||
Beginning of period | 2,095,211,944 | 2,371,416,943 |
End of period (including undistributed net investment income of $207,342 and undistributed net investment income of $789,052, respectively) | $ 2,369,959,765 | $ 2,095,211,944 |
Other Information Shares | ||
Sold | 31,161,657 | 37,290,036 |
Issued in reinvestment of distributions | 5,007,200 | 5,445,964 |
Redeemed | (30,226,031) | (61,487,843) |
Net increase (decrease) | 5,942,826 | (18,751,843) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended January 31, | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 11.53 | $ 11.83 | $ 11.25 | $ 11.87 | $ 11.84 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .448 | .453 | .453 | .464 | .473 |
Net realized and unrealized gain (loss) | 1.142 | (.300) | .581 | (.606) | .077 |
Total from investment operations | 1.590 | .153 | 1.034 | (.142) | .550 |
Distributions from net investment income | (.449) | (.453) | (.453) | (.463) | (.472) |
Distributions from net realized gain | (.041) | - | - D | (.015) | (.048) |
Total distributions | (.490) | (.453) | (.454) E | (.478) | (.520) |
Redemption fees added to paid in capital B, D | - | - | - | - | - |
Net asset value, end of period | $ 12.63 | $ 11.53 | $ 11.83 | $ 11.25 | $ 11.87 |
Total Return A | 14.09% | 1.22% | 9.34% | (1.13)% | 4.77% |
Ratios to Average Net AssetsC |
|
|
|
|
|
Expenses before reductions | .46% | .46% | .47% | .46% | .46% |
Expenses net of fee waivers, if any | .46% | .46% | .47% | .46% | .46% |
Expenses net of all reductions | .46% | .46% | .46% | .44% | .42% |
Net investment income (loss) | 3.74% | 3.79% | 3.91% | 4.09% | 4.01% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,369,960 | $ 2,095,212 | $ 2,371,417 | $ 1,932,144 | $ 1,933,906 |
Portfolio turnover rate | 11% | 11% | 3% | 14% | 18% |
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.
E Total distributions of $.454 per share is comprised of distributions from net investment income of $.4534 and distributions from net realized gain of $.0003 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Massachusetts Municipal Money Market Fund
Investment Changes/Performance (Unaudited)
Effective Maturity Diversification | |||
Days | % of fund's investments 1/31/12 | % of fund's investments 7/31/11 | % of fund's |
1 - 7 | 76.8 | 87.4 | 83.6 |
8 - 30 | 3.5 | 1.3 | 2.1 |
31 - 60 | 5.0 | 5.0 | 2.0 |
61 - 90 | 6.9 | 0.5 | 4.2 |
91 - 180 | 5.0 | 2.0 | 6.2 |
> 180 | 2.8 | 3.8 | 1.9 |
Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940. |
Weighted Average Maturity | |||
| 1/31/12 | 7/31/11 | 1/31/11 |
Fidelity Massachusetts Municipal Money Market Fund | 27 Days | 21 Days | 23 Days |
Massachusetts Tax-Free Money Market Funds Average* | 29 Days | 22 Days | 25 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 | |||
| 1/31/12 | 7/31/11 | 1/31/11 |
Fidelity Massachusetts Municipal Money Market Fund | 30 Days | 21 Days | 23 Days |
Weighted Average Life (WAL) is the weighted average of the life of the securities held in a fund or portfolio and can be used as a measure of sensitivity to changes in liquidity and/or credit risk. Generally, the higher the value, the greater the sensitivity. WAL is based on the dollar-weighted average length of time until principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. The difference between WAM and WAL is that WAM takes into account interest rate resets and WAL does not. WAL for money market funds is not the same as WAL of a mortgage- or asset-backed security. |
* Source: iMoneyNet, Inc.
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 | As of July 31, 2011 | ||||||
![]() | Variable Rate |
| ![]() | Variable Rate |
| ||
![]() | Commercial Paper (including CP Mode) 9.7% |
| ![]() | Commercial Paper (including CP Mode) 8.3% |
| ||
![]() | Tender Bonds 0.5% |
| ![]() | Tender Bonds 0.2% |
| ||
![]() | Municipal Notes 11.7% |
| ![]() | Municipal Notes 3.2% |
| ||
![]() | Fidelity Municipal |
| ![]() | Fidelity Municipal |
| ||
![]() | Other Investments 3.4% |
| ![]() | Other Investments 2.0% |
| ||
![]() | Net Other Assets 1.0% |
| ![]() | Net Other Assets 4.8% |
|
Current and Historical Seven-Day Yields
| 1/30/12 | 10/31/11 | 8/1/11 | 5/2/11 | 1/31/11 |
Fidelity Massachusetts 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 is possible to lose money by investing in the fund. A portion of the Fund's expenses were reimbursed and/or waived. Absent such reimbursements and/or waivers the yield for the period ending January 30, 2012, the most recent period shown in the table, would have been -0.38%.
Annual Report
Fidelity Massachusetts Municipal Money Market Fund
Investments January 31, 2012
Showing Percentage of Net Assets
Municipal Securities - 99.0% | |||
Principal Amount | Value | ||
Colorado - 0.2% | |||
Colorado Reg'l. Trans. District Sales Tax Rev. Participating VRDN Series MT 741, 0.14% 2/7/12 (Liquidity Facility Bank of America NA) (a)(e) | $ 13,300,000 | $ 13,300,000 | |
Delaware - 0.1% | |||
Delaware Econ. Dev. Auth. Rev. (Delmarva Pwr. & Lt. Co. Proj.) Series 1999 A, 0.36% 2/7/12, VRDN (a) | 4,300,000 | 4,300,000 | |
Indiana - 0.1% | |||
Michigan City Ltd. Oblig. Rev. (Palatek Proj.) 0.18% 2/7/12, LOC Comerica Bank, VRDN (a)(d) | 4,420,000 | 4,420,000 | |
Maine - 0.2% | |||
Maine Pub. Util. Fin. Pub. Util. Rev. (Maine Pub. Svc. Co. Proj.) Series 2000, 0.41% 2/7/12, LOC Bank of America NA, VRDN (a)(d) | 9,000,000 | 9,000,000 | |
Massachusetts - 82.3% | |||
Andover Gen. Oblig. BAN 1.5% 12/20/12 | 2,000,000 | 2,021,101 | |
Billerica Gen. Oblig. BAN: | |||
1.5% 5/18/12 | 5,900,000 | 5,917,500 | |
1.5% 8/10/12 | 10,000,000 | 10,060,816 | |
Boston Gen. Oblig. Bonds: | |||
Series 2008 A, 5% 4/1/12 | 7,575,000 | 7,634,802 | |
Series 2011 A, 2.5% 4/1/12 | 6,055,000 | 6,075,875 | |
Boston Indl. Dev. Rev. (New Boston Seafood Ctr., Inc. Proj.) Series 1997, 0.12% 2/7/12, LOC Bank of America NA, VRDN (a)(d) | 2,555,000 | 2,555,000 | |
Boston Wtr. & Swr. Commission Rev. Series 1994 A, 0.04% 2/7/12, LOC State Street Bank & Trust Co., Boston, VRDN (a) | 12,600,000 | 12,600,000 | |
Burlington Gen. Oblig. BAN 1.5% 7/27/12 | 13,326,000 | 13,405,010 | |
Canton Hsg. Auth. Multi-family Hsg. Mtg. Rev. (Canton Arboretum Apt. Proj.) Series 1999, 0.06% 2/7/12, LOC Fannie Mae Guaranteed Mtg. pass-thru certificates, VRDN (a)(d) | 7,665,000 | 7,665,000 | |
Carlisle Gen. Oblig. BAN 1.25% 11/16/12 | 13,436,000 | 13,542,783 | |
Chatham Gen. Oblig. BAN: | |||
1.25% 6/29/12 | 11,977,000 | 12,027,661 | |
1.5% 6/29/12 | 34,700,000 | 34,877,490 | |
Chicopee Gen. Oblig. BAN 2% 11/29/12 | 5,000,000 | 5,064,465 | |
Concord & Carlisle Reg'l. School District BAN 1.5% 12/14/12 | 5,000,000 | 5,056,372 | |
Concord Gen. Oblig. BAN 1.5% 5/31/12 | 2,675,000 | 2,686,069 | |
Duxbury Gen. Oblig. BAN 1.5% 6/28/12 | 2,665,000 | 2,676,800 | |
Fitchburg Gen. Oblig. Bonds 2% 12/1/12 | 1,270,000 | 1,286,817 | |
Framingham Gen. Oblig. Bonds 2% 6/15/12 | 3,697,000 | 3,720,259 | |
Gloucester Gen. Oblig. BAN Series A, 1% 3/16/12 | 12,818,317 | 12,829,442 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Grafton Gen. Oblig. BAN 2% 4/12/12 | $ 10,000,000 | $ 10,028,555 | |
Marblehead Gen. Oblig. BAN 1.5% 8/10/12 | 6,596,000 | 6,638,191 | |
Marlborough Gen. Oblig. BAN 1.5% 6/20/12 | 4,350,000 | 4,369,893 | |
Massachusetts Bay Trans. Auth. Bonds Series A, 6.25% 3/1/12 | 995,000 | 999,763 | |
Massachusetts Bay Trans. Auth. Sales Tax Rev.: | |||
Bonds Series C, 5% 7/1/12 | 1,600,000 | 1,631,387 | |
Participating VRDN: | |||
Series Clipper 07 18, 0.11% 2/7/12 (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(e) | 100,175,000 | 100,175,000 | |
Series PT 4368, 0.08% 2/7/12 (Liquidity Facility Wells Fargo & Co.) (a)(e) | 4,985,000 | 4,985,000 | |
Series ROC II R 11933, 0.07% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 2,000,000 | 2,000,000 | |
Series 2008 A1, 0.07% 2/7/12 (Liquidity Facility JPMorgan Chase Bank), VRDN (a) | 98,000,000 | 98,000,000 | |
Series 2008 A2, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank), VRDN (a) | 90,265,000 | 90,265,000 | |
Massachusetts Dept. of Trans. Metropolitan Hwy. Sys. Rev.: | |||
Series 2010 A1, 0.06% 2/7/12, LOC Citibank NA, VRDN (a) | 39,875,000 | 39,875,000 | |
Series 2010 A2, 0.06% 2/7/12, LOC Wells Fargo Bank NA, VRDN (a) | 95,065,000 | 95,065,000 | |
Series 2010 A3, 0.06% 2/7/12, LOC Bank of America NA, VRDN (a) | 52,000,000 | 52,000,000 | |
Series 2010 A6, 0.06% 2/7/12, LOC Bank of America NA, VRDN (a) | 81,690,000 | 81,690,000 | |
Massachusetts Dev. Fin. Agcy. Series 5, 0.16% 4/2/12, LOC TD Banknorth, NA, CP | 8,624,000 | 8,624,000 | |
Massachusetts Dev. Fin. Agcy. Electrical Utils. Rev. Bonds (Nantucket Elec. Co. Proj.) Series 2005, 0.45% tender 2/16/12, CP mode (d) | 3,600,000 | 3,600,000 | |
Massachusetts Dev. Fin. Agcy. Indl. Dev. Rev.: | |||
(Charm Sciences, Inc. Proj.) Series 1999 A, 0.76% 2/7/12, LOC Bank of America NA, VRDN (a)(d) | 2,000,000 | 2,000,000 | |
(Monkiewicz Realty Trust Proj.) 0.81% 2/7/12, LOC Bank of America NA, VRDN (a)(d) | 3,240,000 | 3,240,000 | |
Massachusetts Dev. Fin. Agcy. Multi-family Hsg. Rev.: | |||
(Archstone Reading Apts. Proj.) Series 2004 A, 0.11% 2/7/12, LOC Freddie Mac, VRDN (a)(d) | 24,840,000 | 24,840,000 | |
(Avalon Acton Apts. Proj.) Series 2006, 0.12% 2/7/12, LOC Fannie Mae Guaranteed Mtg. pass-thru certificates, VRDN (a)(d) | 38,000,000 | 38,000,000 | |
(Casco Crossing Proj.) 0.11% 2/7/12, LOC Fannie Mae Guaranteed Mtg. pass-thru certificates, VRDN (a)(d) | 10,535,000 | 10,535,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Dev. Fin. Agcy. Multi-family Hsg. Rev.: - continued | |||
(Georgetown Village Apts. Proj.) Series 2003 A, 0.1% 2/7/12, LOC Fannie Mae Guaranteed Mtg. pass-thru certificates, VRDN (a)(d) | $ 18,650,000 | $ 18,650,000 | |
(Salem Heights Apts. Proj.) Series 2003 A, 0.08% 2/7/12, LOC Fed. Home Ln. Bank of Boston, VRDN (a)(d) | 15,000,000 | 15,000,000 | |
(Tammy Brook Apts. Proj.) Series 2009, 0.08% 2/7/12, LOC Freddie Mac, VRDN (a) | 6,500,000 | 6,500,000 | |
Massachusetts Dev. Fin. Agcy. Rev.: | |||
(Abby Kelley Foster Charter Pub. School Proj.) Series 2008, 0.07% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 4,575,000 | 4,575,000 | |
(Berkshire School Proj.) Series 2001, 0.06% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 10,045,000 | 10,045,000 | |
(Boston Univ. Proj.): | |||
Series U-5A, 0.03% 2/7/12, LOC Fed. Home Ln. Bank of Boston, VRDN (a) | 22,325,000 | 22,325,000 | |
Series U-5B, 0.04% 2/7/12, LOC Fed. Home Ln. Bank of Boston, VRDN (a) | 26,200,000 | 26,200,000 | |
Series U-6C, 0.07% 2/1/12, LOC JPMorgan Chase Bank, VRDN (a) | 300,000 | 300,000 | |
Series U3, 0.03% 2/7/12, LOC Northern Trust Co., VRDN (a) | 21,315,000 | 21,315,000 | |
(Briarwood Retirement Cmnty. Proj.) Series 2004 A, 0.08% 2/7/12, LOC Manufacturers & Traders Trust Co., VRDN (a) | 14,510,000 | 14,510,000 | |
(Clark Univ. Proj.) 0.05% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 33,295,000 | 33,295,000 | |
(Ed. Lawrence Academy Proj.) Series 2003 A, 0.11% 2/7/12, LOC Bank of America NA, VRDN (a) | 1,655,000 | 1,655,000 | |
(Fay School Proj.) Series 2008, 0.07% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 5,950,000 | 5,950,000 | |
(Fessenden School Proj.) Series 2001, 0.07% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 11,770,000 | 11,770,000 | |
(Fifteen-O-Five West Housatonic LLC Proj.) Series 2007, 0.11% 2/7/12, LOC HSBC Bank USA, NA, VRDN (a)(d) | 2,655,000 | 2,655,000 | |
(Institute of Contemporary Art Proj.) Series 2004 A, 0.11% 2/7/12, LOC Bank of America NA, VRDN (a) | 3,600,000 | 3,600,000 | |
(Judge Rotenburg Ctr. Proj.) Series 2003, 0.12% 2/7/12, LOC Bank of America NA, VRDN (a) | 8,645,000 | 8,645,000 | |
(Masonic Nursing Home Proj.) Series 2002 B, 0.05% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 7,705,000 | 7,705,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Dev. Fin. Agcy. Rev.: - continued | |||
(Olin College Proj.): | |||
Series 2008 C2, 0.06% 2/1/12, LOC RBS Citizens NA, VRDN (a) | $ 17,000,000 | $ 17,000,000 | |
Series 2008 C3, 0.06% 2/1/12, LOC RBS Citizens NA, VRDN (a) | 42,000,000 | 42,000,000 | |
(Saint Mark's School Proj.) Series 2004, 0.07% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 5,085,000 | 5,085,000 | |
(Seven Hills Foundation and Affiliates Proj.) Series 2008 B, 0.06% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 5,265,000 | 5,265,000 | |
(Smith College Proj.): | |||
Series 2002, 0.05% 2/7/12, VRDN (a) | 500,000 | 500,000 | |
Series 2007, 0.08% 2/7/12 (Liquidity Facility Bank of America NA), VRDN (a) | 50,160,000 | 50,160,000 | |
(Wilber School Apts. Proj.) Series 2008 A, 0.07% 2/7/12, LOC Bank of America NA, VRDN (a) | 7,000,000 | 7,000,000 | |
(Williston Northampton School Proj.) Series 2010, 0.12% 2/7/12, LOC Bank of America NA, VRDN (a) | 6,060,000 | 6,060,000 | |
(Worcester Polytechnic Institute Proj.) Series 2008 A, 0.05% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 18,840,000 | 18,840,000 | |
(YMCA of Greater Boston Proj.) Series 2004 A, 0.07% 2/7/12, LOC Fed. Home Ln. Bank of Boston, VRDN (a) | 16,730,000 | 16,730,000 | |
Bonds Series R1, 5% 7/1/12 | 1,000,000 | 1,019,794 | |
Participating VRDN: | |||
Series Putters 3840, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 5,000,000 | 5,000,000 | |
Series Putters 3873, 0.08% 2/2/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 2,500,000 | 2,500,000 | |
Series ROC II R 11896, 0.07% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 19,800,000 | 19,800,000 | |
Series WF 10 56C, 0.08% 2/7/12 (Liquidity Facility Wells Fargo Bank NA) (a)(e) | 19,915,000 | 19,915,000 | |
Series 2001, 0.05% 2/7/12, VRDN (a) | 1,450,000 | 1,450,000 | |
Series 2001, 0.17% 3/7/12, LOC JPMorgan Chase Bank, CP | 9,950,000 | 9,950,000 | |
Series 2007 B, 0.07% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 13,335,000 | 13,335,000 | |
Series 2011 A, 0.1% 2/7/12, LOC RBS Citizens NA, VRDN (a) | 13,050,000 | 13,050,000 | |
Massachusetts Dev. Fin. Agcy. Solid Waste Disp. Rev. (Wheelabrator Millbury Proj.) 0.05% 2/1/12, LOC JPMorgan Chase Bank, VRDN (a)(d) | 2,000,000 | 2,000,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Fed. Hwy. Bonds Series 2011 B, 0% 6/15/12 (Escrowed to Maturity) | $ 1,000,000 | $ 999,074 | |
Massachusetts Gen. Oblig.: | |||
Bonds: | |||
Series 1995 A, 5% 7/1/12 | 1,395,000 | 1,422,542 | |
Series 2001 D, 5.5% 11/1/12 | 6,650,000 | 6,913,252 | |
Series 2002 C, 5.5% 11/1/12 | 2,000,000 | 2,078,335 | |
Series 2002 E, 5.5% 1/1/13 | 1,000,000 | 1,048,411 | |
Series 2006 A, 5% 7/1/12 | 1,925,000 | 1,962,884 | |
Series 2007 A, 5% 5/1/12 | 1,500,000 | 1,517,735 | |
Series 2007 B: | |||
4% 11/1/12 | 1,000,000 | 1,028,672 | |
5% 11/1/12 | 1,035,000 | 1,071,596 | |
Series 2009 B, 3% 7/1/12 | 2,150,000 | 2,174,174 | |
Series 2011 A, 0.08% 2/1/12 (a) | 13,800,000 | 13,800,000 | |
Series 2011 B, 4% 10/1/12 | 39,925,000 | 40,928,043 | |
Series 2012 A, 0.06% 2/1/13 (a) | 35,000,000 | 35,000,000 | |
Participating VRDN: | |||
Series Clipper 07 06, 0.11% 2/7/12 (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(e) | 53,850,000 | 53,850,000 | |
Series Clipper 07 39, 0.11% 2/7/12 (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(e) | 13,325,000 | 13,325,000 | |
Series EGL 07 0124, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 12,235,000 | 12,235,000 | |
Series EGL 07 0149, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 29,300,000 | 29,300,000 | |
Series MT 723, 0.14% 2/7/12 (Liquidity Facility Bank of America NA) (a)(e) | 6,400,000 | 6,400,000 | |
Series MT 725, 0.14% 2/7/12 (Liquidity Facility Bank of America NA) (a)(e) | 20,500,000 | 20,500,000 | |
Series Putters 2022, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 35,995,000 | 35,995,000 | |
Series Putters 2648, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 9,250,000 | 9,250,000 | |
Series Putters 3699, 0.09% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 3,920,000 | 3,920,000 | |
Series Putters 3896, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 3,755,000 | 3,755,000 | |
Series Putters 3898, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 4,000,000 | 4,000,000 | |
RAN: | |||
Series 2011 A, 2% 4/26/12 | 287,700,000 | 288,948,825 | |
Series 2011 B, 2% 5/31/12 | 134,700,000 | 135,515,638 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Gen. Oblig.: - continued | |||
Series 2001 C, 0.05% 2/7/12 (Liquidity Facility State Street Bank & Trust Co., Boston), VRDN (a) | $ 163,275,000 | $ 163,275,000 | |
Series 2006 B, 0.06% 2/1/12 (Liquidity Facility Bank of America NA), VRDN (a) | 13,000,000 | 13,000,000 | |
Massachusetts Health & Edl. Facilities Auth. Rev.: | |||
(Baystate Health Sys. Proj.): | |||
Series 2009 J1, 0.07% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 21,300,000 | 21,300,000 | |
Series 2009 J2, 0.07% 2/1/12, LOC JPMorgan Chase Bank, VRDN (a) | 10,150,000 | 10,150,000 | |
(Baystate Med. Ctr. Proj.) Series 2005 G, 0.08% 2/7/12, LOC Bank of America NA, VRDN (a) | 17,005,000 | 17,005,000 | |
(Bentley College Proj.) Series K, 0.06% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 15,100,000 | 15,100,000 | |
(Boston Univ. Proj.) Series H, 0.04% 2/7/12, LOC State Street Bank & Trust Co., Boston, VRDN (a) | 21,220,000 | 21,220,000 | |
(Children's Hosp. Proj.): | |||
Series 2010 N1, 0.03% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 10,650,000 | 10,650,000 | |
Series 2010 N2, 0.04% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 59,400,000 | 59,400,000 | |
Series 2010 N3, 0.06% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 5,000,000 | 5,000,000 | |
Series 2010 N4, 0.06% 2/1/12, LOC JPMorgan Chase Bank, VRDN (a) | 16,055,000 | 16,055,000 | |
(CIL Realty of Massachusetts Proj.) Series 2007, 0.05% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 14,150,000 | 14,150,000 | |
(Dana-Farber Cancer Institute Proj.) Series 2008 L1, 0.05% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 34,500,000 | 34,500,000 | |
(Endicott College Proj.): | |||
Series 2004 D, 0.12% 2/7/12, LOC Bank of America NA, VRDN (a) | 23,065,000 | 23,065,000 | |
Series 2007 E, 0.12% 2/7/12, LOC Bank of America NA, VRDN (a) | 12,550,000 | 12,550,000 | |
(Fairview Extended Care Proj.) Series B, 0.15% 2/7/12, LOC Bank of America NA, VRDN (a) | 26,580,000 | 26,580,000 | |
(Harvard Vanguard Med. Associates Proj.) Series 2004, 0.06% 2/7/12, LOC TD Banknorth, NA, VRDN (a) | 2,700,000 | 2,700,000 | |
(Northeast Hosp. Corp. Proj.): | |||
Series 2004 G, 0.09% 2/7/12, LOC JPMorgan Chase Bank, VRDN (a) | 37,600,000 | 37,600,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Health & Edl. Facilities Auth. Rev.: - continued | |||
(Northeast Hosp. Corp. Proj.): - continued | |||
Series 2006 H, 0.1% 2/7/12, LOC Bank of America NA, VRDN (a) | $ 23,000,000 | $ 23,000,000 | |
(Peabody Essex Museum Proj.) Series 2002, 0.1% 2/7/12, LOC Bank of America NA, VRDN (a) | 15,025,000 | 15,025,000 | |
(Southcoast Health Sys. Obligated Group Proj.) Series 2008 C, 0.07% 2/7/12, LOC Bank of America NA, VRDN (a) | 15,000,000 | 15,000,000 | |
(Stonehill College Proj.) Series 2008 K, 0.07% 2/1/12, LOC Bank of America NA, VRDN (a) | 25,500,000 | 25,500,000 | |
(Williams College Proj.): | |||
Series I, 0.04% 2/7/12, VRDN (a) | 18,900,000 | 18,900,000 | |
Series J, 0.04% 2/7/12, VRDN (a) | 12,061,000 | 12,061,000 | |
(Winchester Hosp. Proj.) Series 2004 F, 0.09% 2/7/12, LOC Bank of America NA, VRDN (a) | 15,170,000 | 15,170,000 | |
Bonds: | |||
(Massachusetts Institute of Technology Proj.) Series K, 5.25% 7/1/12 | 1,000,000 | 1,020,856 | |
(Northeastern Univ. Proj.): | |||
Series 2008 T2, 4.1%, tender 4/19/12 (a) | 1,575,000 | 1,587,643 | |
Series 2009 T1, 4.125%, tender 2/16/12 (a) | 24,550,000 | 24,587,735 | |
(Partners HealthCare Sys., Inc. Proj.): | |||
Series 2008 H1: | |||
0.1% tender 4/9/12, CP mode | 12,500,000 | 12,500,000 | |
0.15% tender 3/8/12, CP mode | 2,660,000 | 2,660,000 | |
0.16% tender 3/1/12, CP mode | 8,000,000 | 8,000,000 | |
0.16% tender 3/30/12, CP mode | 15,100,000 | 15,100,000 | |
0.23% tender 2/9/12, CP mode | 10,000,000 | 10,000,000 | |
0.24% tender 2/9/12, CP mode | 10,000,000 | 10,000,000 | |
Series 2008 H2: | |||
0.11% tender 4/5/12, CP mode | 7,020,000 | 7,020,000 | |
0.15% tender 2/6/12, CP mode | 19,790,000 | 19,790,000 | |
0.17% tender 2/3/12, CP mode | 14,040,000 | 14,040,000 | |
0.17% tender 2/8/12, CP mode | 19,790,000 | 19,790,000 | |
Participating VRDN: | |||
Series BA 08 1056, 0.18% 2/7/12 (Liquidity Facility Bank of America NA) (a)(e) | 3,290,000 | 3,290,000 | |
Series BA 08 3320, 0.14% 2/7/12 (Liquidity Facility Bank of America NA) (a)(e) | 2,810,000 | 2,810,000 | |
Series BBT 08 54, 0.07% 2/7/12 (Liquidity Facility Branch Banking & Trust Co.) (a)(e) | 12,530,000 | 12,530,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Health & Edl. Facilities Auth. Rev.: - continued | |||
Participating VRDN: | |||
Series BBT 08 56, 0.07% 2/7/12 (Liquidity Facility Branch Banking & Trust Co.) (a)(e) | $ 15,395,000 | $ 15,395,000 | |
Series BC 10 15W, 0.06% 2/7/12 (Liquidity Facility Barclays Bank PLC) (a)(e) | 6,500,000 | 6,500,000 | |
Series BC 10 20W, 0.06% 2/7/12 (Liquidity Facility Barclays Bank PLC) (a)(e) | 5,335,000 | 5,335,000 | |
Series Clipper 07 08, 0.08% 2/7/12 (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(e) | 11,250,000 | 11,250,000 | |
Series Putters 3104, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 3,620,000 | 3,620,000 | |
Series Putters 3529, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 26,660,000 | 26,660,000 | |
Series Putters 3530, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 1,000,000 | 1,000,000 | |
Series Putters 3531, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 12,495,000 | 12,495,000 | |
Series Putters 3548, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 9,925,000 | 9,925,000 | |
Series Putters 3650, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 11,800,000 | 11,800,000 | |
Series 2009 O-1, 0.05% 2/7/12, LOC Fed. Home Ln. Bank of Boston, VRDN (a) | 50,645,000 | 50,645,000 | |
Series EE: | |||
0.07% 2/6/12, CP | 19,000,000 | 19,000,000 | |
0.08% 4/3/12, CP | 15,981,000 | 15,981,000 | |
0.12% 3/2/12, CP | 18,500,000 | 18,500,000 | |
0.13% 3/7/12, CP | 50,000,000 | 50,000,000 | |
0.13% 3/8/12, CP | 19,502,000 | 19,502,000 | |
0.13% 3/8/12, CP | 51,105,000 | 51,105,000 | |
0.13% 3/12/12, CP | 37,672,000 | 37,672,000 | |
0.14% 2/16/12, CP | 8,500,000 | 8,500,000 | |
0.14% 2/16/12, CP | 1,000,000 | 1,000,000 | |
0.14% 3/8/12, CP | 11,900,000 | 11,900,000 | |
0.14% 3/15/12, CP | 11,900,000 | 11,900,000 | |
Massachusetts Health & Educational Facilities Auth. Rev. (Mount Ida College Proj.) Series 2007 A, 0.1% 2/7/12, LOC Bank of America NA, VRDN (a) | 20,150,000 | 20,150,000 | |
Massachusetts Hsg. Fin. Agcy. Hsg. Rev. Series 2004 A, 0.1% 2/7/12, LOC Lloyds TSB Bank PLC, VRDN (a)(d) | 28,215,000 | 28,215,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Hsg. Fin. Agcy. Multi-Family Rev. (Princeton Crossing LP Proj.) Series 1996 A, 0.08% 2/7/12, LOC Fannie Mae Guaranteed Mtg. pass-thru certificates, VRDN (a)(d) | $ 20,300,000 | $ 20,300,000 | |
Massachusetts Indl. Fin. Agcy. Indl. Dev. Rev.: | |||
(346 Univ. LLC Proj.) Series 1996, 1.51% 2/7/12, LOC Bank of America NA, VRDN (a)(d) | 1,000,000 | 1,000,000 | |
(BBB Esq. LLC Proj.) Series 1996, 1.51% 2/7/12, LOC Bank of America NA, VRDN (a)(d) | 1,700,000 | 1,700,000 | |
(Boutwell Owens & Co., Inc. Proj.) Series 1998, 1.46% 2/7/12, LOC Wells Fargo Bank NA, VRDN (a)(d) | 560,000 | 560,000 | |
(Brady Enterprises Proj.) Series 1996, 1.51% 2/7/12, LOC Bank of America NA, VRDN (a)(d) | 1,050,000 | 1,050,000 | |
(Decas Cranberry Proj.) Series 1997, 0.36% 2/7/12, LOC TD Banknorth, NA, VRDN (a)(d) | 2,250,000 | 2,250,000 | |
(United Plastics Proj.) Series 1997, 0.86% 2/7/12, LOC Wells Fargo Bank NA, VRDN (a)(d) | 1,380,000 | 1,380,000 | |
Massachusetts Indl. Fin. Agcy. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.): | |||
Series 1992: | |||
0.4% tender 2/1/12, CP mode | 1,000,000 | 1,000,000 | |
0.5% tender 2/1/12, CP mode | 7,860,000 | 7,860,000 | |
Series 1993 A, 0.4% tender 2/16/12, CP mode | 200,000 | 200,000 | |
Series 1993 B, 0.6% tender 2/28/12, CP mode | 2,020,000 | 2,020,000 | |
Massachusetts Indl. Fin. Agcy. Rev. Bonds (Tufts Univ. Proj.) Series H, 5.5% 2/15/12 | 2,265,000 | 2,269,422 | |
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys. Rev. Bonds: | |||
(Nuclear #4 Proj.): | |||
Series 2012 A, 4% 7/1/12 | 5,015,000 | 5,091,257 | |
Series A, 5.25% 7/1/12 | 8,510,000 | 8,595,100 | |
(Nuclear #5 Proj.) Series 2012 A, 4% 7/1/12 | 1,450,000 | 1,472,048 | |
(Nuclear #6 Proj.) Series 2012 A, 4% 7/1/12 | 10,045,000 | 10,197,742 | |
(Nuclear Mix #1 Proj.): | |||
Series 2012 A, 4% 7/1/12 | 3,555,000 | 3,609,057 | |
Series A, 5.25% 7/1/12 | 8,000,000 | 8,080,000 | |
Massachusetts Port Auth. Rev.: | |||
Bonds Series 2010 C, 3% 7/1/12 (d) | 500,000 | 504,923 | |
Participating VRDN Series Solar 06 108, 0.07% 2/7/12 (Liquidity Facility U.S. Bank NA, Minnesota) (a)(e) | 14,140,000 | 14,140,000 | |
Series 2003 A, 0.06% 2/15/12, LOC Bank of New York, New York, CP | 5,000,000 | 5,000,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Port Auth. Rev.: - continued | |||
Series 2003 B: | |||
0.08% 2/10/12, LOC Bank of New York, New York, CP (d) | $ 14,000,000 | $ 14,000,000 | |
0.08% 2/13/12, LOC Bank of New York, New York, CP (d) | 15,000,000 | 15,000,000 | |
0.08% 2/15/12, LOC Bank of New York, New York, CP (d) | 15,000,000 | 15,000,000 | |
0.08% 2/16/12, LOC Bank of New York, New York, CP (d) | 15,000,000 | 15,000,000 | |
0.1% 4/5/12, LOC Bank of New York, New York, CP (d) | 10,000,000 | 10,000,000 | |
Series 2003A, 0.16% 3/8/12, LOC Bank of New York, New York, CP | 5,000,000 | 5,000,000 | |
Series 2008 A, 0.08% 2/7/12, LOC Bank of America NA, VRDN (a) | 11,700,000 | 11,700,000 | |
Series 2010 D, 0.08% 2/7/12, LOC Bank of America NA, VRDN (a)(d) | 90,305,000 | 90,305,000 | |
Massachusetts Port Auth. Spl. Proj. Rev. (Harborside Hyatt Proj.) Series 2001 A, 0.1% 2/7/12, LOC Royal Bank of Scotland PLC, VRDN (a)(d) | 37,100,000 | 37,100,000 | |
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev.: | |||
Bonds Series 2005 A, 5% 8/15/12 | 3,300,000 | 3,385,994 | |
Participating VRDN: | |||
ROC II R 12193, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 8,000,000 | 8,000,000 | |
Series BA 08 1082, 0.14% 2/7/12 (Liquidity Facility Bank of America NA) (a)(e) | 7,620,000 | 7,620,000 | |
Series BA 08 3307, 0.18% 2/7/12 (Liquidity Facility Bank of America NA) (a)(e) | 5,000,000 | 5,000,000 | |
Series BC 11 113B, 0.07% 2/7/12 (Liquidity Facility Barclays Bank PLC) (a)(e) | 2,725,000 | 2,725,000 | |
Series EGL 07 0031, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 47,600,000 | 47,600,000 | |
Series EGL 07 0032, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 69,300,000 | 69,300,000 | |
Series EGL 07 0067, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 41,660,000 | 41,660,000 | |
Series EGL 07 0092, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 46,095,000 | 46,095,000 | |
Series MS 3228X, 0.14% 2/7/12 (Liquidity Facility Morgan Stanley Bank, West Valley City Utah) (a)(e) | 2,500,000 | 2,500,000 | |
Series Putters 2479Z, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 2,340,000 | 2,340,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev.: - continued | |||
Participating VRDN: | |||
Series Putters 3691, 0.09% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | $ 2,100,000 | $ 2,100,000 | |
Series Putters 3990, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 3,000,000 | 3,000,000 | |
Series Putters 4030, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 3,070,000 | 3,070,000 | |
Series ROC II R 12254, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 14,000,000 | 14,000,000 | |
Series Solar 05 03, 0.07% 2/7/12 (Liquidity Facility U.S. Bank NA, Minnesota) (a)(e) | 20,230,000 | 20,230,000 | |
Massachusetts Spl. Oblig. Rev. Bonds Series 2010 A: | |||
3% 12/15/12 | 1,700,000 | 1,741,660 | |
4% 12/15/12 | 4,720,000 | 4,873,616 | |
Massachusetts St Wtr. Resources Auth. Participating VRDN Series Putters 3690, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 1,300,000 | 1,300,000 | |
Massachusetts State Dev. Fin. Agcy. Elec. Util. Rev. Bonds (Nantucket Elec. Co. Proj.) Series 2007, 0.45% tender 2/8/12, CP mode (d) | 12,200,000 | 12,200,000 | |
Massachusetts State Dev. Fing. Agcy. Poll. Cont. Rev. Bonds (Massachusetts Elec. Co. Proj.) Series 2004 M, 0.9% tender 2/2/12, CP mode | 200,000 | 200,000 | |
Massachusetts Wtr. Poll. Abatement Trust: | |||
Bonds: | |||
Series 14, 5% 8/1/12 | 7,800,000 | 7,984,421 | |
Series 2002 A, 5% 8/1/12 (Pre-Refunded to 8/1/12 @ 100) | 1,000,000 | 1,023,741 | |
Participating VRDN: | |||
Series BBT 08 40, 0.07% 2/7/12 (Liquidity Facility Branch Banking & Trust Co.) (a)(e) | 15,400,000 | 15,400,000 | |
Series Clipper 06 11, 0.11% 2/7/12 (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(e) | 23,900,000 | 23,900,000 | |
Series Putters 3159, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 15,490,000 | 15,490,000 | |
Massachusetts Wtr. Resources Auth. Wtr. & Swr. Rev.: | |||
Participating VRDN: | |||
Series EGL 06 0054, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 4,300,000 | 4,300,000 | |
Series EGL 7050011 Class A, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 10,990,000 | 10,990,000 | |
Series Putters 2848, 0.08% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 19,075,000 | 19,075,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Massachusetts - continued | |||
Massachusetts Wtr. Resources Auth. Wtr. & Swr. Rev.: - continued | |||
Participating VRDN: | |||
Series Putters 3911, 0.11% 2/7/12 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | $ 6,665,000 | $ 6,665,000 | |
Series ROC II R 11914, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 1,760,000 | 1,760,000 | |
Series ROC II R 11968, 0.08% 2/7/12 (Liquidity Facility Citibank NA) (a)(e) | 2,185,000 | 2,185,000 | |
Series Solar 06 86, 0.07% 2/7/12 (Liquidity Facility U.S. Bank NA, Minnesota) (a)(e) | 21,920,000 | 21,920,000 | |
Series 1999, 0.16% 3/9/12, LOC State Street Bank & Trust Co., Boston, CP | 18,000,000 | 18,000,000 | |
Series 2008 B, 0.08% 2/7/12 (Liquidity Facility Bank of America NA), VRDN (a) | 60,430,000 | 60,430,000 | |
Series 2008 E, 0.07% 2/7/12 (Liquidity Facility JPMorgan Chase Bank), VRDN (a) | 57,370,000 | 57,370,000 | |
Series 2008 F, 0.03% 2/7/12 (Liquidity Facility Bank of Nova Scotia New York Branch), VRDN (a) | 46,355,000 | 46,355,000 | |
Melrose Gen. Oblig. BAN 1.5% 11/15/12 | 12,125,000 | 12,242,903 | |
Middleton Gen. Oblig. BAN 1.5% 8/17/12 | 12,600,000 | 12,685,746 | |
Nantucket Gen. Oblig. BAN 1.5% 2/24/12 | 5,750,000 | 5,753,939 | |
Needham Gen. Oblig. BAN 1.5% 6/15/12 | 5,762,000 | 5,788,924 | |
New Bedford Gen. Oblig. Bonds 4% 3/1/12 | 1,190,000 | 1,193,473 | |
Shrewsbury Gen. Oblig. BAN 1.5% 7/13/12 | 3,625,000 | 3,643,652 | |
Stow Gen. Oblig. BAN 1.5% 9/28/12 | 6,700,000 | 6,753,409 | |
Tewksbury Gen. Oblig. BAN 1% 2/7/12 | 10,350,000 | 10,350,870 | |
Univ. of Massachusetts Bldg. Auth. Facilities Rev. Series 2008 1, 0.1% 2/7/12, LOC Lloyds TSB Bank PLC, VRDN (a) | 141,320,000 | 141,320,000 | |
Wayland Massachusetts Bonds 2% 2/1/12 | 2,430,000 | 2,430,000 | |
| 4,404,628,157 | ||
Michigan - 1.0% | |||
Michigan Fin. Auth. Rev. Series 2011 L, 0.11% 2/7/12, LOC Citibank NA, VRDN (a) | 54,000,000 | 54,000,000 | |
Ohio - 0.1% | |||
Ohio Air Quality Dev. Auth. Rev. (Cincinnati Gas & Elec. Co. Proj.) Series B, 0.25% 2/7/12, VRDN (a) | 4,000,000 | 4,000,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Puerto Rico - 1.8% | |||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev. Series 1998 A, 0.05% 2/7/12, LOC Bank of Nova Scotia New York Branch, VRDN (a) | $ 64,165,000 | $ 64,165,000 | |
Puerto Rico Commonwealth Pub. Impt. Gen. Oblig. Series 2003 C5-2, 0.08% 2/7/12, LOC Barclays Bank PLC NY Branch, VRDN (a) | 34,110,000 | 34,110,000 | |
| 98,275,000 | ||
Shares |
| ||
Other - 13.2% | |||
Fidelity Municipal Cash Central Fund, 0.08% (b)(c) | 708,575,000 | 708,575,000 | |
TOTAL INVESTMENT PORTFOLIO - 99.0% (Cost $5,300,498,157) | 5,300,498,157 | ||
NET OTHER ASSETS (LIABILITIES) - 1.0% | 53,017,049 | ||
NET ASSETS - 100% | $ 5,353,515,206 |
Security Type Abbreviations | ||
BAN | - | BOND ANTICIPATION NOTE |
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 | $ 1,041,028 |
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, 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. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Massachusetts Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $4,591,923,157) | $ 4,591,923,157 |
|
Fidelity Central Funds (cost $708,575,000) | 708,575,000 |
|
Total Investments (cost $5,300,498,157) |
| $ 5,300,498,157 |
Cash |
| 674,074 |
Receivable for investments sold | 39,595,054 | |
Receivable for fund shares sold | 42,099,916 | |
Interest receivable | 5,448,955 | |
Distributions receivable from Fidelity Central Funds | 46,256 | |
Prepaid expenses | 10,207 | |
Other receivables | 3,770 | |
Total assets | 5,388,376,389 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 1,000,405 | |
Payable for fund shares redeemed | 32,800,603 | |
Distributions payable | 479 | |
Accrued management fee | 401,038 | |
Other affiliated payables | 622,131 | |
Other payables and accrued expenses | 36,527 | |
Total liabilities | 34,861,183 | |
|
|
|
Net Assets | $ 5,353,515,206 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,353,470,081 | |
Accumulated undistributed net realized gain (loss) on investments | 45,125 | |
Net Assets, for 5,348,961,623 shares outstanding | $ 5,353,515,206 | |
Net Asset Value, offering price and redemption price per share ($5,353,515,206 ÷ 5,348,961,623 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended January 31, 2012 | |
Investment Income |
|
|
Interest |
| $ 8,085,380 |
Income from Fidelity Central Funds |
| 1,041,028 |
Total income |
| 9,126,408 |
|
|
|
Expenses | ||
Management fee | $ 18,895,435 | |
Transfer agent fees | 6,400,436 | |
Accounting fees and expenses | 442,158 | |
Custodian fees and expenses | 55,777 | |
Independent trustees' compensation | 18,726 | |
Registration fees | 37,892 | |
Audit | 41,686 | |
Legal | 25,350 | |
Miscellaneous | 34,728 | |
Total expenses before reductions | 25,952,188 | |
Expense reductions | (17,370,335) | 8,581,853 |
Net investment income (loss) | 544,555 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 60,195 |
Net increase in net assets resulting from operations | $ 604,750 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Massachusetts 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) | $ 544,555 | $ 493,806 |
Net realized gain (loss) | 60,195 | 239,751 |
Net increase in net assets resulting | 604,750 | 733,557 |
Distributions to shareholders from net investment income | (516,194) | (493,559) |
Distributions to shareholders from net realized gain | - | (294,896) |
Total distributions | (516,194) | (788,455) |
Share transactions at net asset value of $1.00 per share | 13,535,055,039 | 13,651,016,277 |
Reinvestment of distributions | 511,842 | 782,779 |
Cost of shares redeemed | (13,405,140,958) | (13,314,297,650) |
Net increase (decrease) in net assets and shares resulting from share transactions | 130,425,923 | 337,501,406 |
Total increase (decrease) in net assets | 130,514,479 | 337,446,508 |
|
|
|
Net Assets | ||
Beginning of period | 5,223,000,727 | 4,885,554,219 |
End of period | $ 5,353,515,206 | $ 5,223,000,727 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended January 31, | 2012 | 2011 | 2010 | 2009 | 2008 |
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 | .014 | .031 |
Net realized and unrealized gain (loss) D | - | - | - | - | - |
Total from investment operations | - D | - D | .001 | .014 | .031 |
Distributions from net investment income | - D | - D | (.001) | (.014) | (.031) |
Distributions from net realized gain | - | - D | - | - D | - |
Total distributions | - D | - D | (.001) | (.014) | (.031) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return A | .01% | .02% | .06% | 1.46% | 3.16% |
Ratios to Average Net Assets B,C |
|
|
|
| |
Expenses before reductions | .50% | .50% | .55% | .52% | .50% |
Expenses net of fee waivers, if any | .17% | .29% | .45% | .52% | .50% |
Expenses net of all reductions | .17% | .29% | .45% | .47% | .40% |
Net investment income (loss) | .01% | .01% | .06% | 1.43% | 3.11% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,353,515 | $ 5,223,001 | $ 4,885,554 | $ 5,328,417 | $ 5,574,800 |
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 January 31, 2012
1. Organization.
Fidelity Massachusetts Municipal Income Fund (the Income Fund) and Fidelity Massachusetts Municipal Money Market Fund (the Money Market Fund) are funds of Fidelity Massachusetts Municipal Trust (the Trust). 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 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 Massachusetts.
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 does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.
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 January 31, 2012, 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 and losses deferred due to wash sales 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 appreciation |
Fidelity Massachusetts Municipal Income Fund | $ 2,129,336,063 | $ 194,741,096 | $ (8,278,460) | $ 186,462,636 |
Fidelity Massachusetts Municipal Money Market Fund | 5,300,498,157 | - | - | - |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed | Undistributed | Undistributed long-term | Net unrealized appreciation |
Fidelity Massachusetts Municipal Income Fund | $ 76,143 | $ - | $ 951,561 | $ 186,462,636 |
Fidelity Massachusetts Municipal Money Market Fund | 29,057 | 12,735 | 6,234 | - |
The tax character of distributions paid was as follows:
January 31, 2012 | Tax-Exempt | Ordinary | Long-term | Total |
Fidelity Massachusetts Municipal Income Fund | $ 81,130,118 | $ 550,278 | $ 6,970,187 | $ 88,650,583 |
Fidelity Massachusetts Municipal Money Market Fund | 516,194 | - | - | 516,194 |
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
January 31, 2011 | Tax-Exempt | Ordinary | Long-term | Total |
Fidelity Massachusetts Municipal Income Fund | $ 91,171,201 | $ - | $ - | $ 91,171,201 |
Fidelity Massachusetts Municipal Money Market Fund | 493,559 | - | 294,896 | 788,455 |
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.
Restricted Securities. The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $301,500,182 and $244,356,996, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and 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 Massachusetts Municipal Income Fund | .25% | .12% | .37% |
Fidelity Massachusetts Municipal Money Market Fund | .25% | .12% | .37% |
Annual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of 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, exceptproxy statements. For the period, the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Fidelity Massachusetts Municipal Income Fund | .07% |
Fidelity Massachusetts Municipal Money Market Fund | .12% |
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.
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 Massachusetts Municipal Income Fund | $ 6,373 |
During the period, there were no borrowings on this line of credit.
Annual Report
Notes to Financial Statements - continued
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 $17,335,618.
In addition, through arrangements with the Income Fund's and Money Market 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 Massachusetts Municipal Income Fund | $ 10,819 |
Fidelity Massachusetts Municipal Money Market Fund | 34,717 |
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 Massachusetts Municipal Trust and Shareholders of Fidelity Massachusetts Municipal Income Fund and Fidelity Massachusetts Municipal Money Market Fund:
We have audited the accompanying statements of assets and liabilities of Fidelity Massachusetts Municipal Income Fund and Fidelity Massachusetts Municipal Money Market Fund (the Funds), funds of Fidelity Massachusetts Municipal Trust, including the schedules of investments, as of January 31, 2012, and the related statements of operations for the year then ended, the statements of changes in 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. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits 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 and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of January 31, 2012, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Massachusetts Municipal Income Fund and Fidelity Massachusetts Municipal Money Market Fund as of January 31, 2012, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 13, 2012
Annual Report
Trustees and Officers
The Trustees and executive officers of the trust 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 204 funds advised by FMR or an affiliate. Mr. Curvey oversees 430 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 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 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 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 (65) | |
| 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 (44) | |
| 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. |
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 Massachusetts Municipal Income Fund | 03/12/12 | 03/09/12 | $0.006 |
Fidelity Massachusetts Municipal Money | 03/12/12 | 03/09/12 | $0.000 |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended January 31, 2012, or, if subsequently determined to be different, the net capital gain of such year.
Fund |
|
Fidelity Massachusetts Municipal Income Fund | $8,131,031 |
Fidelity Massachusetts Municipal Money Market Fund | $6,234 |
During fiscal year ended 2012, 100% of each fund's income dividends were free from federal income tax, and 4.30% and 16.96% of Fidelity Massachusetts Municipal Income Fund and Fidelity Massachusetts Municipal Money Market Fund's income dividends, respectively, were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2013 of amounts for use in preparing 2012 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Massachusetts Municipal Income Fund / Fidelity Massachusetts 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 Massachusetts 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 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.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Massachusetts 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 Massachusetts 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
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Massachusetts Municipal Money Market Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and above 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 Massachusetts Municipal Money Market Fund, and also noted that Fidelity retains the ability to be repaid by the fund in certain circumstances.
Annual Report
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.
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.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
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 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.
(phone graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains 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.
(envelope graphic)Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(envelope graphic)For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(envelope graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
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
Investment Adviser
Fidelity Management & Research
Company
Boston, MA
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
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
MAS-UANN-0312 1.789255.110
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Item 2. Code of Ethics
As of the end of the period, January 31, 2012, Fidelity Massachusetts 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 Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, "Deloitte Entities") in each of the last two fiscal years for services rendered to Fidelity Massachusetts AMT Tax-Free Money Market Fund, Fidelity Massachusetts Municipal Income Fund and Fidelity Massachusetts Municipal Money Market Fund (the "Funds"):
Services Billed by Deloitte Entities
January 31, 2012 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Massachusetts AMT Tax-Free Money Market Fund | $23,000 | $- | $4,600 | $500 |
Fidelity Massachusetts Municipal Income Fund | $43,000 | $- | $4,600 | $600 |
Fidelity Massachusetts Municipal Money Market Fund | $23,000 | $- | $4,600 | $1,000 |
January 31, 2011 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Massachusetts AMT Tax-Free Money Market Fund | $26,000 | $- | $4,600 | $- |
Fidelity Massachusetts Municipal Income Fund | $43,000 | $- | $4,600 | $- |
Fidelity Massachusetts Municipal Money Market Fund | $26,000 | $- | $4,600 | $- |
A Amounts may reflect rounding.
The following table presents fees billed by Deloitte Entities 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 Deloitte Entities
| January 31, 2012A | January 31, 2011A |
Audit-Related Fees | $612,000 | $645,000 |
Tax Fees | $- | $- |
All Other Fees | $635,000 | $705,000 |
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 Deloitte Entities 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 | January 31, 2012 A | January 31, 2011 A |
Deloitte Entities | $1,360,000 | $1,460,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its audit of the Funds, taking into account representations from Deloitte Entities, 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 Massachusetts Municipal Trust
By: | /s/John R. Hebble |
| John R. Hebble |
| President and Treasurer |
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|
Date: | March 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: | March 27, 2012 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
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Date: | March 27, 2012 |