Exhibit 15
SPARTAN MUNICIPAL INCOME FUND
FIDELITY ADIVSOR MUNICIPAL BOND FUND
PRO FORMA COMBINING STATEMENT OF ASSETS & LIABILITIES AS OF NOVEMBER 30, 1997
(UNAUDITED)
SPARTAN FIDELITY ADVISOR PRO FORMA PRO FORMA
MUNICIPAL INCOME MUNICIPAL BOND COMBINED ADJUSTMENTS COMBINED
ASSETS
Investment in securities, at value
- See accompanying schedule $ 2,320,518,980 $ 943,928,008 $3,264,446,988 -
$3,264,446,988
Interest receivable 32,239,033 15,205,744 47,444,777 - 47,444,777
Receivable for daily variation on - 3,969 3,969 - 3,969
futures contracts
Receivable for Investments Sold 5,902,120 498,532 6,400,652 - 6,400,652
Prepaid Expenses - 5,221 5,221 - 5,221
Other receivables 18,516 22,483 40,999 - 40,999
TOTAL ASSETS 2,358,678,649 959,663,957 3,318,342,606 - 3,318,342,606
LIABILITIES
Payable for investments
purchased
Delayed Delivery $ 34,515,703 $ 18,444,500 $ 52,960,203 - $ 52,960,203
Payable for fund shares redeemed 1,103,162 1,269,789 2,372,951 - 2,372,951
Distributions payable 2,129,327 3,611,485 5,740,812 - 5,740,812
Accrued management fee 746,241 301,762 1,048,003 - 1,048,003
Other payables and accrued 357,712 179,029 536,741 - 536,741
expenses
TOTAL LIABILITIES 38,852,145 23,806,565 62,658,710 - 62,658,710
NET ASSETS $ 2,319,826,504 $ 935,857,392 $3,255,683,896 $ - $3,255,683,896
Net Assets consist of:
Paid in capital $ 2,234,547,486 $ 890,990,070 $3,125,537,556 - $3,125,537,556
Accumulated undistributed net
realized gain (loss)
on investments (12,735,104) (11,572,775) (24,307,879) - (24,307,879)
Net unrealized appreciation
(depreciation) on
investments 98,014,122 56,440,097 154,454,219 - 154,454,219
NET ASSETS $ 2,319,826,504 $ 935,857,392 $3,255,683,896 $ - $3,255,683,896
SPARTAN
MUNICIPAL INCOME COMBINED
$2,319,826,504 $935,857,392 $3,255,683,896 3,255,683,896
NET ASSET VALUE,offering price $12.61 $12.61
and redemption price per share
Shares outstanding 183,940,016 111,198,587 295,138,603 (36,983,092) 258,155,511
Class A:
Net Assets 737,804.70 8.42
Net Asset Value and 8.42
redemption price per share
Shares outstanding 87,671.77 58,509
Maximum offering price per 8.84
share (100/95.25 of $8.42)
Class T
Net Assets 7,007,719.84 8.41
Net Asset Value and 8.41
redemption price per share
Shares outstanding 833,239.90 555,727
Maximum offering price per 8.72
share (100/96.5 of $8.41)
Class B:
Net Assets 2,134,266.53 8.41
Net Asset Value and offering 8.41
price per share (A)
Shares outstanding 253,714.74 169,252
Class C:
Net Assets 1,208,175.77 8.41
Net Asset Value and offering 8.41
price per share (A)
Shares outstanding 143,650.46 95,811
Initial Class
Net Assets 924,769,425.62 8.42
Net Asset Value, offering price 8.42
and redemption price per
share
Shares outstanding 109,880,310.31 73,336,196
(A) Redemption price per share is equal to net asset value less any applicable contingent deferred
sales charge.
SPARTAN MUNICIPAL INCOME FUND
FIDELITY ADIVSOR MUNICIPAL BOND FUND
PRO FORMA COMBINING STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1997
(UNAUDITED)
SPARTAN FIDELITY ADVISOR PRO FORMA PRO FORMA
MUNICIPAL INCOME MUNICIPAL BOND COMBINED ADJUSTMENTS COMBINED
INTEREST INCOME $ 9,974,240 $ 53,986,048 $153,960,288 - $153,960,288
EXPENSES
Management fee 7,134,992 3,656,357 10,791,349 - 10,791,349
Transfer agent fees:
Class A - 3,992
Class T - 1,036,671
Class B - 491
Inital Class - 926
Institutional Class - 1,673
Total Transfer Agent Fees 2,086,376 1,043,753 3,130,129 (26,771) (c) 3,103,358
Distribution fees: -
Class T - 10,889
Class B - 7,201
Inital Class - 527
Total Distribution Fees - 18,617 18,617 (18,617) (f) -
Accounting fees and expenses 475,765 287,440 763,205 (93,226) (b) 669,979
Non-interested trustees' 5,646 200 5,846 - 5,846
compensation
Custodian fees and expenses 81,727 53,231 134,958 (11,340) (c) 123,618
Registration fees
Class A - 25,049
Class T - 30,010
Class B - 32,251
Inital Class - 24,448
Institutional Class - 34,819
Total Registration Fees 152,040 146,577 298,617 21,815 (d) 320,432
Audit 67,405 52,805 120,210 (50,305) (c) 69,905
Legal 49,066 29,939 79,005 (15,000) (c) 64,005
Miscellaneous - 6,015 6,015 - 6,015
Total expenses before reductions 10,053,017 5,294,934 15,347,951 (193,444) 15,154,507
Expense reductions (11,248) (122,375) (133,623) (366,850) (e) (500,473)
Total expenses 10,041,769 5,172,559 15,214,328 (560,294) 14,654,034
NET INTEREST INCOME 89,932,471 48,813,489 138,745,960 560,294 139,306,254
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 15,819,996 7,881,503 23,701,499 - 23,701,499
Futures contracts 738,025 272,343 1,010,368 - 1,010,368
Change in net unrealized apprecation - - -
(depreciation) on:
Investment securities 19,310,613 4,851,786 24,162,399 - 24,162,399
Futures contracts 431,389 209,573 640,962 - 640,962
NET GAIN (LOSS) 36,300,023 13,215,205 49,515,228 - 49,515,228
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING
FROM OPERATIONS $126,232,494 62,028,694 188,261,188 $560,294 $188,821,482
Scenario 1
Merger of
37 and 12
and 13 does
not get
shareholder
approval
Net Assets Nav Per Shares o/s
Share
Advisor
Municipal
Bond
Class A $737,805 $8.42 87,672
Class T $7,007,720 $8.41 833,240
Class B $2,134,267 $8.41 253,715
Institutional $1,208,176 $8.41 143,650
Class
Initial Class $924,769,426 $8.42 109,880,310
Spartan $2,319,826,504 $12.61 183,940,016
Municipal
Income
Proforma $3,255,683,896 $12.61 258,155,511 74,215,495
Combined
Scenario 2
Both
Aggressive
and Insured
(12 and 13
are
approved by
shareholder
s)
Net Assets Nav Per Shares o/s
Share
Advisor
Municipal
Bond
Class A $737,805 $8.42 87,672
Class T $7,007,720 $8.41 833,240
Class B $2,134,267 $8.41 253,715
Institutional $1,208,176 $8.41 143,650
Class
Initial Class $924,769,426 $8.42 109,880,310
Spartan $3,594,458,286 $12.61 285,021,125
Municipal
Income
Proforma $4,530,315,678 $12.61 359,236,620 74,215,495
Combined
Scenario 3
Only
Aggressive
is approved
by
shareholder
s
Net Assets Nav Per Shares o/s
Share
Advisor
Municipal
Bond
Class A $737,805 $8.42 87,672
Class T $7,007,720 $8.41 833,240
Class B $2,134,267 $8.41 253,715
Institutional $1,208,176 $8.41 143,650
Class
Initial Class $924,769,426 $8.42 109,880,310
Spartan $3,267,818,514 $12.61 259,117,812
Municipal
Income
Proforma $4,203,675,906 $12.61 333,333,307 74,215,495
Combined
Scenario 4
Only Insured
is approved
by
shareholder
s
Net Assets Nav Per Shares o/s
Share
Advisor
Municipal
Bond
Class A $737,805 $8.42 87,672
Class T1 $7,007,720 $8.41 833,240
Class B $2,134,267 $8.41 253,715
Institutional $1,208,176 $8.41 143,650
Class
Initial Class $924,769,426 $8.42 109,880,310
Spartan $2,646,466,276 $12.61 209,843,329
Municipal
Income
Proforma $3,582,323,668 $12.61 284,058,824 74,215,495
Combined
Spartan Municipal Income Fund
Fidelity Advisor Municipal Bond Fund
Notes to Pro Forma Combining Financial Statements
(Unaudited)
The accompanying unaudited Pro Forma Combining Schedule of
Investments and Statement of Assets and Liabilities as of November
30, 1997 and the unaudited Pro Forma Combining Statement of Operations
for the year ended November 30, 1997 are intended to present the
financial condition and related results of operations of Spartan
Municipal Income Fund as if the reorganization with Fidelity Advisor
Municipal Bond Fund, had been consummated at December 1, 1996. Had
the pro forma adjustments not included the effect of the expense
limitation, Pro Forma Combined Expense reductions would have been
$12,159, resulting in Pro Forma Combined Net Interest Income and Pro
Forma Combined Net Increase in Net Assets resulting from operations of
$138,817,940 and $188,333,168, respectively.
The pro forma adjustments to these pro forma financial statements are
comprised of:
(a) Reflects the exchange of the Fidelity Advisor Municipal Bond
Fund's shares for shares of Spartan Municipal Income Fund as of
November 30, 1997.
(b) Decrease in fees reflects contractual rates charged against
combined average net assets.
(c) Decrease in fees reflects elimination of duplicate services or
charges.
(d) Increase in fees reflects net increase in costs incurred as a
result of the reorganization offset with savings in duplicate charges.
(e) Reflects reduction in expenses due to FMR's agreement to
voluntarily limit the combined fund's expenses to 0.53% of average net
assets.
(f) Decrease reflects elimination of non applicable expense type.
The unaudited pro forma combining statements should be read in
conjunction with the separate annual audited financial statements as
of December 31, 1997 for Fidelity Advisor Municipal Bond Fund and
November 30, 1997 for Spartan Municipal Income Fund, which are
incorporated by reference in the Statement of Additional Information
to this Proxy Statement and Prospectus. The unaudited pro forma
combining financial statements do not include the effect of the merger
of Spartan Aggressive Municipal Income Fund and Spartan Insured
Municipal Income Fund with Spartan Municipal Income Fund which is
pending shareholder approval.