N-30D 1 semi.htm

Spartan®

Municipal Income

Fund

Semiannual Report

June 30, 2001

(2_fidelity_logos)(registered trademark)

Contents

President's Message

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Ned Johnson on investing strategies.

Performance

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How the fund has done over time.

Fund Talk

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The manager's review of fund performance, strategy and outlook.

Investment Changes

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A summary of major shifts in the
fund's investments.

Investments

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A complete list of the fund's investments with their market values.

Financial Statements

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Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

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Notes to the financial statements.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

(Recycle graphic)   This report is printed on recycled paper using soy-based inks.

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.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Neither the fund nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Semiannual Report

President's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Amid a slowing economy highlighted by frequent corporate earnings disappointments, mounting unemployment and waning consumer confidence, equity investors abandoned expensive, large-cap growth stocks in favor of the current earnings delivered by small- and mid-cap value stocks during the first six months of 2001. Fixed-income investments also offered a measure of stability, as corporate, mortgage and agency securities generally outperformed many popular equity indexes through the mid-point of the year.

While it's impossible to predict the future direction of the markets with any degree of certainty, there are certain basic principles that can help investors plan for their future needs.

The longer your investment time frame, the less likely it is that you will be affected by short-term market volatility. A 10-year investment horizon appropriate for saving for a college education, for example, enables you to weather market cycles in a long-term fund, which may have a higher risk potential, but also has a higher potential rate of return.

An intermediate-length fund could make sense if your investment horizon is two to four years, while a short-term bond fund could be the right choice if you need your money in one or two years.

If your time horizon is less than a year, you might want to consider moving some of your bond investment into a money market fund. These funds seek income and a stable share price by investing in high-quality, short-term investments. Of course, it's important to remember that an investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these types of funds.

Finally, no matter what your time horizon or portfolio diversity, it makes good sense to follow a regular investment plan, investing a certain amount of money in a fund at the same time each month or quarter and periodically reviewing your overall portfolio. By doing so, you won't get caught up in the excitement of a rapidly rising market, nor will you buy all your shares at market highs. While this strategy - known as dollar cost averaging - won't assure a profit or protect you from a loss in a declining market, it should help you lower the average cost of your purchases. Of course, you should consider your financial ability to continue your purchases through periods of low price levels before undertaking such a strategy.

If you have questions, please call us at 1-800-544-6666, or visit our web site at www.fidelity.com. We are available 24 hours a day, seven days a week to provide you the information you need to make the investments that are right for you.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Performance: The Bottom Line

There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). You can also look at the fund's income, as reflected in the fund's yield, to measure performance.

Cumulative Total Returns

Periods ended June 30, 2001

Past 6
months

Past 1
year

Past 5
years

Past 10
years

Spartan® Municipal Income

2.94%

10.49%

37.14%

90.23%

LB 3 Plus Year Municipal Bond

2.81%

10.42%

38.15%

n/a*

General Municipal Debt Funds Average

2.41%

9.23%

30.34%

87.78%

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Lehman Brothers 3 Plus Year Municipal Bond Index, a market value-weighted index for investment-grade municipal bonds with maturities of three years or more. To measure how the fund's performance stacked up against its peers, you can compare it to the general municipal debt funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 280 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.

Average Annual Total Returns

Periods ended June 30, 2001

Past 1
year

Past 5
years

Past 10
years

Spartan Municipal Income

10.49%

6.52%

6.64%

LB 3 Plus Year Municipal Bond

10.42%

6.68%

n/a*

General Municipal Debt Funds Average

9.23%

5.43%

6.49%

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year. (Note: Lipper calculates average annual total returns by annualizing each fund's total return, then taking an arithmetic average. This may produce a different figure than that obtained by averaging the cumulative total returns and annualizing the result.)

* Not available

Semiannual Report

Performance - continued

$10,000 Over 10 Years



$10,000 Over 10 Years: Let's say, hypothetically, that $10,000 was invested in Spartan Municipal Income Fund on June 30, 1991. As the chart shows, by June 30, 2001, the value of the investment would have grown to $19,023 - a 90.23% increase on the initial investment. For comparison, look at how the Lehman Brothers Municipal Bond Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $19,967 - a 99.67% increase.

Understanding
Performance

How a fund did yesterday is no guarantee of how it will do tomorrow. Bond prices, for example, generally move in the opposite direction of interest rates. In turn, the share price, return and yield of a fund that invests in bonds will vary. That means if you sell your shares during a market downturn, you might lose money. But if you can ride out the market's ups and downs, you may have a gain.

3

Semiannual Report

Performance - continued

Total Return Components

Six months ended June 30,

Years ended December 31,

2001

2000

1999

1998

1997

1996

Dividend returns

2.47%

5.64%

4.57%

4.88%

5.20%

5.42%

Capital returns

0.47%

6.66%

-7.05%

1.16%

4.03%

-0.48%

Total returns

2.94%

12.30%

-2.48%

6.04%

9.23%

4.94%

Total return components include both dividend returns and capital returns. A dividend return reflects the actual dividends paid by the fund. A capital return reflects both the amount paid by the fund to shareholders as capital gain distributions and changes in the fund's share price. Both returns assume the dividends or capital gains, if any, paid by the fund are reinvested.

Dividends and Yield

Periods ended June 30, 2001

Past 1
month

Past 6
months

Past 1
year

Dividends per share

5.02¢

30.93¢

62.62¢

Annualized dividend rate

4.78%

4.89%

4.99%

30-day annualized yield

4.37%

-

-

30-day annualized tax-equivalent yield

6.83%

-

-

Dividends per share show the income paid by the fund for a set period. If you annualize this number, based on an average share price of $12.77 over the past one month, $12.76 over the past six months and $12.56 over the past one year, you can compare the fund's income over these three periods. The 30-day annualized yield is a standard formula for all bond funds based on the yields of the bonds in the fund, averaged over the past 30 days. This figure shows you the yield characteristics of the fund's investments at the end of the period. It also helps you compare funds from different companies on an equal basis. The tax equivalent yield shows what you would have to earn on a taxable investment to equal the fund's tax-free yield, if you're in the 36% federal tax bracket, but does not reflect payment of the federal alternative minimum tax, if applicable.

Semiannual Report

Fund Talk: The Manager's Overview

Market Recap

In an effort to kick-start the sputtering U.S. economy, the Federal Reserve Board reduced key short-term interest rates six times during the first half of 2001, lowering the fed funds target rate from 6.50% to 3.75%. While the full effect of these cuts likely won't be felt for several months, they had an immediate impact on the performance of tax-free municipal bonds, particularly those of short and intermediate maturities, which typically benefit in a declining interest-rate environment. The muni market also received a boost given the steady demand from institutional, retail and high-net-worth investors, as well as an encouraging credit upgrade environment. For the overall six-month period ending June 30, 2001, the Lehman Brothers Municipal Bond Index - an index of approximately 40,000 investment-grade, fixed-rate, tax-exempt bonds, gained 2.88%. As is often the case in financial markets, some of the good news was offset by several factors. In April, for instance, the $25 billion downgrade of California's general obligation bonds - the largest muni downgrade on record - tempered performance. Additionally, as interest rates continued to trend downward, so did the prices of long-term munis. Also, President Bush's newly enacted tax program raised moderate concerns about higher muni supply and lower muni demand going forward.

(Portfolio Manager photograph)
An interview with George Fischer, Portfolio Manager of Spartan Municipal Income Fund

Q. How did the fund perform, George?

A. For the six month period that ended June 30, 2001, the fund had a total return of 2.94%. To get a sense of how the fund did relative to its competitors, the general municipal debt funds average returned 2.41% for the same six-month period, according to Lipper Inc. Additionally, the Lehman Brothers 3 Plus Year Municipal Bond Index, which tracks the types of securities in which the fund invests, returned 2.81%. For the 12-month period that ended June 30, 2001, the fund had a total return of 10.49%. In comparison, the general municipal debt funds average returned 9.23% and the Lehman Brothers index returned 10.42% for the same 12-month period.

Q. What factors characterized the investing environment during the past six months, and how did they affect the fund's performance?

A. Falling interest rates and balanced supply and demand conditions helped municipal bonds rally and boost the fund's returns. Municipals rallied late in 2000 based on growing optimism that the Federal Reserve Board would cut interest rates to stimulate spending and pull the economy out of its doldrums. The Fed delivered on those expectations, cutting short-term rates six times between January and June of this year, pushing short- and intermediate-term bond yields lower and their prices higher. Favorable supply and demand conditions also boosted the municipal market. The supply of municipals increased somewhat throughout the period, although demand remained reasonably strong as investors sought out alternatives to the wobbly stock market. The fund's total return for the period reflects the combination of price gains or losses plus the income generated by its holdings.

Semiannual Report

Fund Talk: The Manager's Overview - continued

Q. Which strategies worked in the fund's favor during the past six months?

A. The fund's fairly even diversification among bonds with various maturities was a positive contributor to performance. Long-maturity bonds of many types - including municipals - performed best in the final months of 2000. Their heightened interest-rate sensitivity caused them to post larger gains than shorter-maturity bonds as municipal bond yields across the board fell in anticipation of rate cuts. This year, however, longer-maturity bonds stalled and their shorter-term counterparts rallied due to concerns about the potentially inflationary effects of interest-rate cuts. Given this change in leadership, the fund benefited from its diversification among short-, intermediate- and long-term bonds throughout the period.

Q. What other factors aided the fund's performance?

A. The fund was underweighted - relative to the municipal market as a whole - in California bonds, which have performed poorly so far in 2001. That's in contrast to last year when California bonds were some of the nation's best performers, and the fund's smaller exposure to them detracted from its performance. During the past several months, however, California has endured credit problems stemming from its power crisis and the threat of more than $10 billion of power revenue bonds scheduled to be issued during the third quarter to help replenish the state's coffers.

Q. Were there any sectors that performed better or worse than others?

A. Yes, there were. After posting dismal results in 2000, many hospital bonds performed well in the first half of this year thanks to cost cutting, price increases and higher insurance reimbursements. These positive developments helped many of the fund's health care holdings. On the flip side, municipal bonds backed by a given corporation - known as industrial development bonds - generally performed poorly as corporate profits eroded. Fortunately, the fund owned only a few corporate-backed muni bonds during the period.

Q. What changes, if any, did you make to the fund's investments in response to the weakening economy?

A. I didn't really make any changes because I had anticipated economic weakness and approached the market fairly cautiously in terms of credit quality. I maintained the fund's emphasis on bonds with higher credit ratings, by having about 91% of the fund's investments in investment-grade bonds rated A or higher by Moody's or Standard & Poor's®. I also tilted the fund's investments toward essential services bonds, such as those issued by water, sewer, utility and transportation entities. Their revenues, which come in the form of fees and tolls, tend to be more stable in a slowing economy compared to general obligation bonds (GOs), which are backed by sales, income and other taxes.

Q. What's ahead for the municipal market and the fund?

A. The Fed continues to state that it's far more worried about a possible recession than it is about potential inflation. Given that, many observers are expecting rates to come down from current levels. If that's the case, municipal bonds could benefit. Attractive prices relative to U.S. treasury securities and relatively high tax-free yields could bode well for continued strong demand for municipals, ultimately aiding their performance.

Semiannual Report

Fund Talk: The Manager's Overview - continued

The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Fund Facts

Goal: a high level of income free from federal income tax

Fund number: 037

Trading symbol: FHIGX

Start date: December 1, 1977

Size: as of June 30, 2001, more than $4.6 billion

Manager: George Fischer, since 1998; manager, various Fidelity and Spartan municipal income funds; joined Fidelity in 1989

3

George Fischer on the weaker economy's effect on the nation's municipal issuers:

"Weakening economic conditions have forced most states and municipalities to re-evaluate their current budgets and assumptions about the future. A slowing economy has curtailed tax receipts - including key revenues such as corporate taxes, personal income taxes and sales taxes. Furthermore, the stock market's weakness has cut into revenue generated by taxes on stock-option profits and capital gains. This financial pinch has been exacerbated by rising expenses - particularly health care and education costs. Just a short time after enjoying surpluses, many issuers across the nation now are being forced to consider cutting spending on a wide range of programs.

"As a manager of municipal bond funds, my job is to monitor the economy's ebbs and flows to determine how they'll affect revenue collections. So far, I think that the issuers of bonds in which the fund invests have done a decent job of dealing with slower revenue growth. But, as always, I'll keep a close eye on these developments, looking for problems stemming from a slower economy."

Semiannual Report

Investment Changes

Top Five States as of June 30, 2001

% of fund's
net assets

% of fund's net assets
6 months ago

New York

13.7

16.5

Massachusetts

10.0

10.2

Illinois

9.2

8.0

Texas

8.7

8.8

Washington

5.9

4.7

Top Five Sectors as of June 30, 2001

% of fund's
net assets

% of fund's net assets
6 months ago

General Obligations

28.2

25.2

Electric Utilities

16.7

15.2

Transportation

12.2

11.4

Health Care

11.5

11.2

Water & Sewer

9.4

11.2

Average Years to Maturity as of June 30, 2001

6 months ago

Years

15.0

16.4

Average years to maturity is based on the average time remaining until principal payments are expected from each of the fund's bonds, weighted by dollar amount.

Duration as of June 30, 2001

6 months ago

Years

7.1

7.0

Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example.

Quality Diversification (Moody's Ratings)

As of June 30, 2001

As of December 31, 2000

Aaa 63.2%

Aaa 61.5%

Aa,A 28.3%

Aa,A 27.4%

Baa 6.5%

Baa 8.0%

Ba and Below 0.1%

Ba and Below 1.0%

Not Rated 1.0%

Not Rated 1.6%

Short-Term
Investments 0.9%

Short-Term
Investments 0.5%



Where Moody's ratings are not available, we have used S&P ® ratings. Amounts shown are as a percentage of the fund's investments.

Semiannual Report

Investments June 30, 2001

(Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 99.3%

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Alabama - 0.2%

Cullman Med. Park South Med. Clinic Board Rev. (Cullman Reg'l. Med. Ctr. Proj.) Series A, 6.5% 2/15/23

Baa2

$ 4,000

$ 3,855

Huntsville Gen. Oblig. Series D, 6% 8/1/08

Aa2

2,200

2,292

Mobile Wtr. & Swr. Commissioners Wtr. & Swr. Rev. 6.5% 1/1/09

A

5,100

5,265

11,412

Alaska - 1.6%

Alaska Student Ln. Corp. Student Ln. Rev.:

(State Assisted Proj.) Series A, 6% 7/1/04 (AMBAC Insured) (e)

Aaa

2,500

2,544

Series A:

5.15% 7/1/05 (AMBAC Insured) (e)

Aaa

1,500

1,548

5.55% 7/1/03 (AMBAC Insured) (e)

Aaa

1,300

1,339

5.65% 7/1/04 (AMBAC Insured) (e)

Aaa

1,300

1,354

5.9% 7/1/03 (AMBAC Insured) (e)

Aaa

2,320

2,363

North Slope Borough Gen. Oblig.:

Series 1996 B, 0% 6/30/07 (MBIA Insured)

Aaa

11,600

8,956

Series 2000 B, 0% 6/30/09 (MBIA Insured)

Aaa

10,000

6,877

Series A, 0% 6/30/03 (MBIA Insured)

Aaa

8,500

7,932

Series B:

0% 1/1/03 (MBIA Insured)

Aaa

8,225

7,812

0% 6/30/05 (FSA Insured)

Aaa

4,500

3,840

Valdez Marine Term. Rev. (BP Pipeline, Inc. Proj.) Series B, 5.5% 10/1/28

Aa1

28,205

27,974

72,539

Arizona - 1.7%

Arizona Health Facilities Auth. Hosp. Sys. Rev. (Phoenix Children's Hosp. Proj.) Series A, 6.25% 11/15/29

A2

10,000

10,256

Arizona Student Ln. Aquisition Auth. Student Ln. Rev. Sr. Series A1, 5.9% 5/1/24 (e)

Aaa

2,000

2,051

Chandler Gen. Oblig.:

0% 7/1/05 (FGIC Insured)

Aaa

5,700

4,890

0% 7/1/08 (FGIC Insured)

Aaa

1,700

1,258

Maricopa County Cmnty. College District:

(1994 Proj.) Series 2001 D, 4% 7/1/04

Aaa

12,400

12,592

Series B, 5.25% 7/1/10

Aaa

17,000

17,814

Maricopa County Hosp. Rev.
(Sun Health Corp. Proj.):

5.4% 4/1/05

Baa1

2,935

2,961

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Arizona - continued

Maricopa County Hosp. Rev. (Sun Health Corp. Proj.): - continued

5.65% 4/1/06

Baa1

$ 3,625

$ 3,691

Maricopa County Indl. Dev. Auth. Health Facilities Rev. (Catholic Health Care West Proj.) Series A, 4% 7/1/02

Baa2

3,345

3,345

Maricopa County Indl. Dev. Auth. Hosp. Facilities Rev. (Samaritan Health Svcs. Proj.) Series A, 7% 12/1/16 (MBIA Insured) (Escrowed to Maturity) (f)

Aaa

2,000

2,420

Maricopa County School District #1 Phoenix Elementary Second Series, 0% 7/1/05
(MBIA Insured)

Aaa

2,660

2,282

Maricopa County Unified School District #69 Paradise Valley Second Series, 0% 7/1/07 (AMBAC Insured)

Aaa

3,050

2,377

Pima County Unified School District #1 Tucson Series 1989 G, 8% 7/1/04 (MBIA Insured)

Aaa

2,000

2,253

Scottsdale Muni. Property Corp. Excise Tax Rev.:

5.5% 7/1/11 (c)

Aa1

3,145

3,309

5.5% 7/1/12 (c)

Aa1

3,325

3,486

5.5% 7/1/13 (c)

Aa1

3,505

3,660

78,645

Arkansas - 0.3%

Arkansas Dev. Fin. Auth. Rev. (Cap. Asset Proj.) Series B, 7.1% 3/1/08

A

515

528

Arkansas Gen. Oblig. (College Savings Prog.) Series C, 0% 6/1/05

Aa2

2,130

1,824

Little Rock Arpt. Passenger Facilities Charge Rev. 5.65% 5/1/16 (AMBAC Insured) (e)

Aaa

320

344

Little Rock School District Series 2001 C, 5.25% 2/1/33 (FSA Insured)

Aaa

8,000

7,996

North Little Rock Elec. Rev. Series A, 6.5% 7/1/10 (MBIA Insured)

Aaa

3,840

4,429

Rogers Sales & Use Tax Rev. 5% 11/1/15

A1

505

505

15,626

California - 4.0%

California Edl. Facilities Auth. Rev.
(Loyola Marymount Univ. Proj.):

0% 10/1/16 (MBIA Insured)

Aaa

2,140

959

0% 10/1/17 (MBIA Insured)

Aaa

2,050

862

0% 10/1/18 (MBIA Insured)

Aaa

1,675

662

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

California - continued

California Gen. Oblig.:

Series 1999, 5.75% 12/1/12 (FGIC Insured)

Aaa

$ 5,000

$ 5,461

5.5% 3/1/11

Aa2

22,000

23,483

5.5% 3/1/12

Aa2

2,000

2,120

5.75% 10/1/10

Aa3

7,400

8,077

5.75% 12/1/24

Aa3

4,000

4,133

6.75% 8/1/12

Aa2

5,500

6,432

California Hsg. Fin. Agcy. Rev. (Home Mtg. Prog.):

Series 1983 A, 0% 2/1/15

Aa2

187

62

Series A, 5.3% 8/1/14 (MBIA Insured)

Aaa

995

995

Series B, 5.2% 8/1/26 (MBIA Insured) (e)

Aaa

2,260

2,275

Series G:

5.9% 2/1/09 (MBIA Insured) (e)

Aaa

1,000

1,062

5.9% 8/1/09 (MBIA Insured) (e)

Aaa

2,000

2,125

California Poll. Cont. Fing. Auth. Resource Recovery Rev. (Waste Mgmt., Inc. Proj.)
Series A, 7.15% 2/1/11 (e)

Ba1

5,235

5,438

California Pub. Works Board Lease Rev.
(Various California State Univ. Projs.) Series A, 5.25% 12/1/13

Aa3

5,000

5,102

California Univ. Rev. (Hsg. Sys. Proj.) Series 1999 AY, 5.875% 11/1/30 (FGIC Insured)

Aaa

9,775

10,403

Compton Cmnty. Redev. Agcy. (Tax Allocation-Compton Redev. Proj.) Series A, 6.5% 8/1/13 (FSA Insured)

Aaa

4,000

4,427

East Bay Muni. Util. District Wtr. Sys. Rev. 5.25% 6/1/14 (MBIA Insured)

Aaa

6,775

7,031

Foothill/Eastern Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/1/08 (Escrowed to Maturity) (b)(f)

Aaa

8,000

7,466

Long Beach Hbr. Rev. 5.125% 5/15/18 (e)

Aa3

5,000

4,924

Los Angeles Dept. of Wtr. & Pwr. Rev.
Series 2001 A1:

5.25% 7/1/11 (MBIA Insured)

Aaa

11,000

11,874

5.25% 7/1/14 (MBIA Insured)

Aaa

14,000

14,648

Los Angeles Dept. Wtr. & Pwr. Wtrwks. Rev. Series 2001 A, 5.125% 7/1/41

Aa3

10,000

9,507

Los Angeles Hbr. Dept. Rev. Series A:

5.5% 8/1/08 (AMBAC Insured) (c)(e)

Aaa

5,000

5,212

5.5% 8/1/09 (AMBAC Insured) (c)(e)

Aaa

5,275

5,497

Modesto Irrigation District Elec. Rev. Series A, 9.625% 1/1/11 (Escrowed to Maturity) (f)

Aaa

4,390

5,592

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

California - continued

Placer County Wtr. Agcy. Rev. (Middle Fork Proj.) Series A:

3.75% 7/1/12

A3

$ 7,820

$ 7,284

3.75% 1/1/13

A3

1,500

1,357

Sacramento Cogeneration Auth. Cogeneration Proj. Rev. (Procter & Gamble Proj.) 6.375% 7/1/10

BBB-

700

752

Sacramento Muni. Util. District Elec. Rev.
Series 2001 O:

5.25% 8/15/14 (MBIA Insured)

Aaa

1,510

1,574

5.25% 8/15/15 (MBIA Insured)

Aaa

2,500

2,580

5.25% 8/15/16 (MBIA Insured)

Aaa

1,950

1,997

Sacramento Pwr. Auth. Cogeneration Proj. Rev.:

6.5% 7/1/07

BBB-

1,000

1,116

6.5% 7/1/09

BBB-

2,200

2,429

San Francisco City & County Arpts. Commission Int'l. Arpt. Rev.:

Second Series Issue 10A, 5.55% 5/1/14 (MBIA Insured) (e)

Aaa

5,875

6,138

Second Series 27A, 5.5% 5/1/09
(MBIA Insured) (e)

Aaa

4,330

4,687

185,743

Colorado - 3.6%

Adams County School District #12 Thorton 6.2% 12/15/10 (FGIC Insured)

Aaa

1,500

1,575

Arapahoe County School District #5 Cherry Creek (Cherry Creek Proj.) 5.5% 12/15/19

Aa1

3,500

3,608

Arapahoe County Cap. Impt. Trust Fund Hwy. Rev. Series E 470:

0% 8/31/07 (Pre-Refunded to 8/31/05 @ 89.2392) (f)

Aaa

8,000

6,097

0% 8/31/10 (Pre-Refunded to 8/31/05 @ 71.4501) (f)

Aaa

17,000

10,375

0% 8/31/15 (Pre-Refunded to 8/31/05 @ 48.6181) (f)

Aaa

16,000

6,644

Colorado Dept. of Trans. Rev. 5.25% 6/15/09 (MBIA Insured)

Aaa

22,620

24,119

Colorado Health Facilities Auth. Rev.:

Series 2001:

6.5% 11/15/31

Baa2

4,000

4,040

6.625% 11/15/26

Baa2

2,700

2,768

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Colorado - continued

Colorado Health Facilities Auth. Rev.: - continued

6.25% 2/1/04

Baa2

$ 1,300

$ 1,352

6.25% 2/1/04 (Escrowed to Maturity) (f)

Baa2

65

69

6.625% 2/1/13

Baa2

26,700

27,513

6.625% 2/1/13 (Pre-Refunded to 2/1/03
@ 102) (f)

Baa2

1,400

1,499

6.625% 2/1/22

Baa2

10,900

11,004

6.625% 2/1/22 (Pre-Refunded to 2/1/03
@ 102) (f)

Baa2

700

750

Colorado Springs Arpt. Rev. Series C:

0% 1/1/02 (MBIA Insured)

Aaa

1,550

1,529

0% 1/1/04 (MBIA Insured)

Aaa

1,530

1,393

0% 1/1/06 (MBIA Insured)

Aaa

250

208

0% 1/1/09 (MBIA Insured)

Aaa

1,655

1,169

0% 1/1/10 (MBIA Insured)

Aaa

1,500

1,004

Colorado Univ. Rev. (Biomedical Research Bldg. Proj.) 7% 6/1/09 (Pre-Refunded to 6/1/04
@ 100) (f)

Aa3

5,725

6,292

Denver City & County Arpt. Rev.:

(Unrefunded Balance Proj.) Series B, 7.25% 11/15/23 (e)

A2

1,870

1,973

Series A:

0% 11/15/02 (MBIA Insured) (e)

Aaa

4,900

4,685

0% 11/15/05 (MBIA Insured) (e)

Aaa

4,480

3,740

Series C:

6.5% 11/15/06 (e)

A2

4,075

4,290

6.55% 11/15/02 (e)

A2

4,000

4,174

Series D:

0% 11/15/03 (MBIA Insured) (e)

Aaa

5,000

4,591

0% 11/15/04 (MBIA Insured) (e)

Aaa

7,500

6,576

0% 11/15/05 (MBIA Insured) (e)

Aaa

3,000

2,504

7% 11/15/25 (e)

A2

6,980

7,038

7.4% 11/15/01 (e)

A2

3,000

3,046

El Paso County School District #20 Series A, 0% 6/15/08 (AMBAC Insured)

Aaa

2,600

1,908

Highlands Ranch Metro. District #2:

6.5% 6/15/10 (FSA Insured)

Aaa

1,000

1,157

6.5% 6/15/12 (FSA Insured)

Aaa

1,000

1,180

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Colorado - continued

Jefferson County Ctfs. of Prtn. 6.65% 12/1/08 (MBIA Insured)

Aaa

$ 3,000

$ 3,171

Thornton County Gen. Oblig. 0% 12/1/08 (FGIC Insured)

Aaa

5,000

3,595

166,636

Connecticut - 1.0%

Connecticut Gen. Oblig.:

Series B:

5.375% 6/15/13

Aa2

10,000

10,617

5.875% 6/15/17

Aa2

4,500

4,863

Series C:

5.25% 12/15/07

Aa2

6,000

6,450

5.25% 12/15/08

Aa2

14,000

15,053

Connecticut Health & Edl. Facilities Auth. Rev.:

(New Britain Memorial Hosp. Proj.) Series A, 7.5% 7/1/06 (Pre-Refunded to 7/1/02
@ 102) (f)

AAA

3,185

3,341

(Quinnipiac College Proj.) Series D, 6% 7/1/13

BBB-

550

553

Eastern Connecticut Resources Recovery Auth. Solid Waste Rev. (Wheelabrator Lisbon Proj.) Series A, 5% 1/1/04 (e)

BBB

900

899

Univ. of Connecticut Rev. (Student Fee Prog.) Series A, 5.75% 11/15/29 (FGIC Insured)

Aaa

3,680

3,899

45,675

District of Columbia - 2.5%

District of Columbia Gen. Oblig.:

Series 1998 B, 5.75% 6/1/09 (MBIA Insured)

Aaa

7,280

7,926

Series 2001 E:

5% 6/1/04 (FGIC Insured)

Aaa

65

68

5% 6/1/04 (FGIC Insured)
(Escrowed to Maturity) (f)

Aaa

900

937

Series A:

5.25% 6/1/27 (MBIA Insured)

Aaa

20,000

19,558

5.625% 6/1/02 (MBIA Insured)

Aaa

110

113

5.625% 6/1/02 (MBIA Insured)
(Escrowed to Maturity) (f)

Aaa

550

565

5.875% 6/1/05 (AMBAC Insured)

Aaa

1,010

1,086

5.875% 6/1/05 (AMBAC Insured) (Escrowed to Maturity) (f)

Aaa

760

822

5.875% 6/1/05 (MBIA Insured)

Aaa

1,530

1,645

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

District Of Columbia - continued

District of Columbia Gen. Oblig.: - continued

Series A3:

5.3% 6/1/04 (AMBAC Insured)

Aaa

$ 1,605

$ 1,680

5.3% 6/1/04 (AMBAC Insured)
(Escrowed to Maturity) (f)

Aaa

1,505

1,583

5.4% 6/1/05 (AMBAC Insured)

Aaa

1,510

1,598

5.4% 6/1/05 (AMBAC Insured)
(Escrowed to Maturity) (f)

Aaa

1,400

1,490

Series B:

5% 6/1/06 (MBIA Insured)

Aaa

4,015

4,200

5.25% 6/1/07 (MBIA Insured)

Aaa

12,000

12,682

Series E, 5% 6/1/04 (FGIC Insured) (Pre-Refunded to 6/1/03 @ 102) (f)

Aaa

35

37

District of Columbia Hosp. Rev. (Hosp. for Sick Children Proj.) Series A, 8.875% 1/1/21

-

11,250

11,570

District of Columbia Redev. Land Agcy. Washington D.C. Sports Arena Spl. Tax Rev. 5.625% 11/1/10

Baa

4,605

4,619

District of Columbia Rev.:

(American Assoc. of Advancement in Science Proj.) 5.125% 1/1/27 (AMBAC Insured)

Aaa

9,250

8,876

(George Washington Univ. Proj.) Series A, 5.75% 9/15/20 (MBIA Insured)

Aaa

9,000

9,460

(Georgetown Univ. Proj.) Series A:

5.95% 4/1/14 (MBIA Insured)

Aaa

2,000

2,176

6% 4/1/18 (MBIA Insured)

Aaa

13,835

14,930

(Nat'l. Academy of Science Proj.) Series A, 5% 1/1/28 (AMBAC Insured)

Aaa

10,000

9,387

District of Columbia Tobacco Settlement Fing. Corp. 6.25% 5/15/24

A1

1,350

1,382

118,390

Florida - 2.2%

Boynton Beach Util. Sys. Rev. 5.5% 11/1/19 (FGIC Insured) (c)

AAA

3,300

3,361

Dade County Aviation Rev. (Miami Int'l. Arpt. Proj.) Series B, 6% 10/1/24 (MBIA Insured) (e)

Aaa

3,750

3,909

Hillsborough County Util. Rev. 5% 8/1/06 (AMBAC Insured)

Aaa

5,535

5,829

Jacksonville Elec. Auth. Rev.:

(First Installment Proj.) 6% 7/1/01
(Escrowed to Maturity) (f)

Aaa

1,090

1,090

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Florida - continued

Jacksonville Elec. Auth. Rev.: - continued

(Saint Johns River Proj.) Series 13 Issue 2, 5.375% 10/1/16

Aa2

$ 4,535

$ 4,615

(Third Installment Proj.) Series 73, 6.8% 7/1/12 (Escrowed to Maturity) (f)

Aaa

3,000

3,428

Jacksonville Health Facilities Auth. Indl. Dev. Rev. (Cypress Village/Nat'l. Benevolent Assoc. Proj.) 7% 12/1/22

Baa1

2,000

2,038

Jacksonville Port Auth. Rev.:

5.5% 11/1/06 (MBIA Insured) (e)

Aaa

7,605

8,130

5.75% 11/1/09 (MBIA Insured) (e)

Aaa

1,000

1,075

Miami-Dade County Edl. Facilities Auth. Rev. Series A, 5.75% 4/1/29 (AMBAC Insured)

Aaa

5,000

5,234

Orlando Utils. Commission Wtr. & Elec. Rev. Series B, 5.25% 10/1/23

Aa2

5,465

5,468

Palm Beach County School Board Ctfs. of Prtn. Series A:

5.5% 8/1/21 (AMBAC Insured)

Aaa

6,135

6,265

5.5% 8/1/22 (AMBAC Insured)

Aaa

8,210

8,363

Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev.:

6% 4/1/08 (AMBAC Insured) (e)

Aaa

5,000

5,474

6% 4/1/09 (AMBAC Insured) (e)

Aaa

8,090

8,870

Pinellas County Resource Recovery Rev. 5.25% 10/1/05 (MBIA Insured) (e)

Aaa

4,010

4,221

Tampa Bay Wtr. Util. Sys. Rev. 6% 10/1/24 (FGIC Insured)

Aaa

6,000

6,498

Tampa Util. Tax & Spl. Rev.:

6% 10/1/05 (AMBAC Insured) (c)

Aaa

3,975

4,335

6% 10/1/06 (AMBAC Insured) (c)

Aaa

2,500

2,756

6% 10/1/07 (AMBAC Insured) (c)

Aaa

2,335

2,592

6% 10/1/09 (AMBAC Insured) (c)

Aaa

1,500

1,680

Tampa Wtr. & Swr. Rev.:

5.5% 10/1/09 (FSA Insured) (c)

Aaa

2,200

2,291

5.5% 10/1/11 (FSA Insured) (c)

Aaa

1,450

1,513

6% 10/1/15 (FSA Insured) (c)

Aaa

1,090

1,166

6% 10/1/17 (FSA Insured) (c)

Aaa

1,000

1,061

101,262

Georgia - 1.3%

Atlanta & Fulton County Resource Auth. Rev. (Downtown Area Pub. Impt. Proj.) Series A, 5.375% 12/1/21 (MBIA Insured)

Aaa

6,000

6,075

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Georgia - continued

Atlanta Downtown Dev. Auth. Rev. (Underground Atlanta Proj.):

6.25% 10/1/12

Aa3

$ 3,750

$ 3,925

6.25% 10/1/16

Aa3

3,000

3,132

Atlanta Wtr. & Swr. Rev. Series A, 5.375% 1/1/20 (FGIC Insured) (Pre-Refunded to 1/1/07 @ 101) (f)

Aaa

3,250

3,508

Fulton County School District 6.375% 5/1/14

Aa2

3,500

4,062

Fulton County Wtr. & Swr. Rev. 6.375% 1/1/14 (FGIC Insured)

Aaa

140

160

Georgia Gen. Oblig.:

Series D:

5.75% 10/1/12

Aaa

13,705

14,970

5.8% 11/1/13

Aaa

15,350

16,802

5.8% 11/1/10

Aaa

4,000

4,452

Georgia Muni. Elec. Auth. Pwr. Rev. Series B, 6.2% 1/1/10 (AMBAC Insured)

Aaa

5,000

5,667

62,753

Hawaii - 1.0%

Hawaii Arpts. Sys. Rev.:

Series 2000 A, 5.75% 7/1/21 (FGIC Insured)

Aaa

2,640

2,776

Series 2001, 5.5% 7/1/07 (FGIC Insured) (e)

Aaa

4,560

4,875

Hawaii Gen. Oblig.:

Series 1998 CR, 5.75% 4/1/09
(MBIA Insured)

Aaa

7,200

7,886

Series CN, 5.25% 3/1/12 (FGIC Insured)

Aaa

17,300

17,996

Series CU:

5.75% 10/1/12 (MBIA Insured)

Aaa

2,130

2,315

5.875% 10/1/13 (MBIA Insured)

Aaa

2,000

2,188

5.875% 10/1/14 (MBIA Insured)

Aaa

1,870

2,037

Hawaii Hsg. Fin. & Dev. Corp. Series A, 4.9% 7/1/28 (e)

Aaa

5,680

5,636

45,709

Idaho - 0.2%

Boise City Urban Renewal Agcy. Lease Rev. 5.9% 8/15/29 (AMBAC Insured)

Aaa

6,950

7,343

Idaho Falls Gen. Oblig.:

0% 4/1/06 (FGIC Insured)

Aaa

2,000

1,647

0% 4/1/07 (FGIC Insured)

Aaa

2,500

1,955

10,945

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Illinois - 9.1%

Chicago Board of Ed. (Chicago School Reform Proj.):

5.75% 12/1/20 (AMBAC Insured)

Aaa

$ 3,480

$ 3,626

5.75% 12/1/27 (AMBAC Insured)

Aaa

47,250

49,005

Chicago Gen. Oblig.:

(Neighborhoods Alive 21 Proj.) Series A, 5.75% 1/1/40 (FGIC Insured)

Aaa

16,500

17,127

Series 1993, 5.25% 1/1/18 (FGIC Insured)

Aaa

7,200

7,222

Series 2000 C, 5.5% 1/1/40 (FGIC Insured)

Aaa

4,500

4,511

Series A:

5.5% 1/1/09 (MBIA Insured)

Aaa

7,855

8,433

5.5% 1/1/38 (MBIA Insured)

Aaa

15,000

15,052

Series A2, 6.25% 1/1/15 (AMBAC Insured)

Aaa

4,885

5,555

Series C, 5.7% 1/1/30 (FGIC Insured)

Aaa

15,415

15,930

Chicago Metro. Wtr. Reclamation District Greater Chicago Series A, 5.25% 12/1/09

Aa1

5,000

5,308

Chicago Midway Arpt. Rev.:

Series A, 5.5% 1/1/29 (MBIA Insured)

Aaa

24,775

24,940

Series B:

5.25% 1/1/13 (MBIA Insured) (e)

Aaa

2,910

2,946

5.25% 1/1/14 (MBIA Insured) (e)

Aaa

3,060

3,107

6% 1/1/05 (MBIA Insured) (e)

Aaa

1,360

1,454

6% 1/1/08 (MBIA Insured) (e)

Aaa

2,170

2,361

6% 1/1/10 (MBIA Insured) (e)

Aaa

2,435

2,615

6.125% 1/1/11 (MBIA Insured) (e)

Aaa

2,580

2,795

Chicago Motor Fuel Tax Series A, 5.375% 1/1/14 (AMBAC Insured)

Aaa

4,600

4,845

Chicago O'Hare Int'l. Arpt. Rev.:

(Gen. Arpt. Proj.) Series A:

5.5% 1/1/16 (AMBAC Insured) (e)

Aaa

10,000

10,190

6.25% 1/1/09 (AMBAC Insured) (e)

Aaa

6,730

7,408

6.375% 1/1/12 (MBIA Insured)

Aaa

4,000

4,318

6.375% 1/1/15 (MBIA Insured)

Aaa

14,900

15,928

(Passenger Facility Charge Proj.):

Series A, 5.6% 1/1/10 (AMBAC Insured)

Aaa

4,500

4,790

Series B, 5.75% 1/1/30 (AMBAC Insured)

Aaa

13,420

13,961

Series 1999, 5.5% 1/1/11
(AMBAC Insured) (e)

Aaa

10,000

10,649

Chicago Residential Mtg. Rev. Series B, 0% 10/1/09 (MBIA Insured)

Aaa

2,205

1,244

Chicago Sales Tax Rev. Series 1999, 5.75% 1/1/34 (FGIC Insured)

Aaa

5,000

5,153

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Illinois - continued

Chicago Wastewtr. Transmission Rev. 5.375% 1/1/13 (FGIC Insured)

Aaa

$ 5,300

$ 5,598

Chicago Wtr. Rev. 0% 11/1/01 (FGIC Insured)

Aaa

1,960

1,943

Cook & Will Counties Township High School District #206 Series A, 0% 12/1/03
(AMBAC Insured) (Escrowed to Maturity) (f)

Aaa

2,350

2,167

Cook County Gen. Oblig. 0% 11/1/08
(AMBAC Insured) (Escrowed to Maturity) (f)

Aaa

8,280

6,020

De Kalb Single Family Mtg. Rev. Series A, 7.45% 12/1/09 (e)

Aaa

550

593

Illinois Dev. Fin. Auth. Poll. Cont. Rev. (Commonwealth Edison Co. Proj.) Series D, 6.75% 3/1/15 (AMBAC Insured)

Aaa

7,000

7,585

Illinois Gen. Oblig. First Series:

5% 5/1/06

Aa2

4,600

4,821

5.75% 12/1/13 (MBIA Insured)

Aaa

7,000

7,539

Illinois Health Facilities Auth. Rev.:

(Condell Med. Ctr. Proj.):

6.5% 5/15/30

A3

9,000

9,240

7% 5/15/22

A3

5,000

5,374

(Lutheran Gen. Health Care Sys. Proj.) Series C:

6% 4/1/18

A1

3,000

3,145

7% 4/1/14

A1

1,500

1,718

(Memorial Hosp. Proj.) 7.125% 5/1/10 (Pre-Refunded to 5/1/02 @ 102) (f)

-

3,600

3,799

(OSF Health Care Sys. Proj.) 6% 11/15/13

A2

7,000

7,011

(Riverside Health Sys. Proj.) 6.85% 11/15/29

A3

5,025

5,299

(Swedish American Hosp. Proj.):

5.375% 11/15/13 (AMBAC Insured)

Aaa

3,000

3,044

6.875% 11/15/30

A-

7,000

7,305

6.75% 2/15/15

A1

1,000

1,086

Illinois Reg'l. Trans. Auth.:

Series A, 8% 6/1/17 (AMBAC Insured)

Aaa

4,500

5,963

Series C, 7.75% 6/1/13 (FGIC Insured)

Aaa

2,045

2,602

Series D, 7.75% 6/1/04 (FGIC Insured)

Aaa

1,115

1,244

Illinois Sales Tax Rev. First Series 2001, 5.5% 6/15/12

Aa2

4,500

4,803

Lake County Cmnty. Consolidated School District #50 Woodland Series 2000 A, 6% 12/1/20 (FGIC Insured)

Aaa

6,000

6,348

Lake County Forest Preservation District:

0% 12/1/07

Aa1

10,440

7,902

0% 12/1/08

Aa1

12,505

8,965

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Illinois - continued

McHenry County Conservation District Series A, 5.625% 2/1/21 (FGIC Insured)

Aaa

$ 5,730

$ 5,891

Metro. Pier & Exposition Auth. Dedicated Tax Rev.:

(McCormick Place Expansion Proj.) Series A:

0% 6/15/08 (MBIA Insured)

Aaa

3,820

2,796

0% 6/15/08 (MBIA Insured)
(Escrowed to Maturity) (f)

Aaa

3,335

2,465

0% 6/15/10 (FGIC Insured)

Aaa

17,000

11,111

0% 6/15/12 (FGIC Insured) (b)

Aaa

250

247

5.25% 12/15/10 (AMBAC Insured)

Aaa

14,450

15,142

Series A:

0% 6/15/09 (FGIC Insured)

Aaa

18,610

12,843

0% 6/15/09 (FGIC Insured)
(Escrowed to Maturity) (f)

Aaa

2,325

1,630

Northern Illinois Univ. Revs. (Auxiliary Facilities Sys. Proj.) 6% 4/1/02 (FGIC Insured)

Aaa

1,000

1,024

424,736

Indiana - 0.3%

Indiana Bond Bank Rev. (State Revolving Fund Prog.) Series A, 7% 2/1/05

AAA

2,000

2,215

Indiana Health Facilities Fing. Auth. Hosp. Rev.:

(Columbus Reg'l. Hosp. Proj.) 7% 8/15/15 (FSA Insured)

Aaa

2,500

2,984

5.5% 2/15/30 (MBIA Insured)

Aaa

5,295

5,296

Indianapolis Arpt. Auth. Rev. Series A, 5.6% 7/1/15 (FGIC Insured)

Aaa

1,000

1,039

Indianapolis Econ. Dev. Rev. (Nat'l. Benevolent Assoc. Proj.) 7.625% 10/1/22

Baa2

3,000

3,098

14,632

Iowa - 0.4%

Iowa Fin. Auth. Hosp. Facilities Rev.:

5.875% 2/15/30 (AMBAC Insured)

Aaa

11,000

11,491

6.625% 2/15/12

A1

1,000

1,101

6.75% 2/15/12

A1

1,000

1,089

6.75% 2/15/14

A1

1,000

1,083

6.75% 2/15/15

A1

1,000

1,079

6.75% 2/15/17

A1

1,000

1,071

16,914

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Kansas - 0.7%

Johnson County Unified School District #512 (Shawnee Mission Proj.):

8% 10/1/03

Aa1

$ 1,015

$ 1,119

8% 10/1/04

Aa1

1,225

1,392

8% 10/1/05

Aa1

1,250

1,458

Kansas City Util. Sys. Rev.:

0% 3/1/09 (AMBAC Insured)
(Escrowed to Maturity) (f)

Aaa

3,975

2,823

0% 9/1/10 (AMBAC Insured)

Aaa

2,865

1,877

0% 9/1/10 (AMBAC Insured)
(Escrowed to Maturity) (f)

Aaa

3,825

2,518

Kansas Dev. Fin. Auth. Health Facilities Rev. (Sisters of Charity Proj.) Series J, 6.25% 12/1/28

Aa3

4,500

4,771

Saline County Unified School District #305 Salina Series 2001:

5.25% 9/1/11 (FSA Insured)

Aaa

3,515

3,750

5.25% 9/1/12 (FSA Insured)

Aaa

5,630

5,945

Wichita Hosp. Rev. Series III A, 6.465% 10/20/17 (MBIA Insured)

Aaa

6,000

6,297

31,950

Kentucky - 2.7%

Jefferson County Cap. Projs. Corp. Rev.
(Lease Prog.) Series A, 0% 8/15/11

A1

5,250

3,237

Jefferson County Hosp. Rev. (Alliant Health
Sys. Proj.):

6.367% 10/9/08 (MBIA Insured)

Aaa

1,800

1,887

6.367% 10/9/08 (MBIA Insured) (Pre-Refunded to 10/29/02 @ 102) (f)

Aaa

2,200

2,342

Kenton County Arpt. Board Arpt. Rev.:

(Cincinnati/Northern Kentucky Int'l. Arpt. Proj.) 5.65% 3/1/04 (MBIA Insured) (e)

Aaa

1,480

1,552

(Delta Air Lines, Inc. Proj.) Series A, 7.5% 2/1/20 (e)

Baa3

5,100

5,255

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Kentucky - continued

Kentucky Property & Bldgs. Commission Revs.:

(#69 Proj.):

Series 2001 B:

5% 8/1/03 (FSA Insured) (c)

Aaa

$ 3,000

$ 3,101

5% 8/1/05 (FSA Insured) (c)

Aaa

1,945

2,036

5% 8/1/09 (FSA Insured) (c)

Aaa

1,620

1,705

5% 8/1/11 (FSA Insured) (c)

Aaa

1,655

1,707

Series 2001 C, 5% 8/1/05 (FSA Insured) (c)

Aaa

5,340

5,593

Series 2001 D:

5.5% 8/1/07 (FSA Insured) (c)

Aaa

4,145

4,387

5.5% 8/1/09 (FSA Insured) (c)

Aaa

1,050

1,116

5.5% 8/1/11 (FSA Insured) (c)

Aaa

1,165

1,234

Louisville & Jefferson County Reg'l. Arpt. Auth. Arpt. Sys. Rev. Series 2001 A:

5.25% 7/1/09 (FSA Insured) (e)

Aaa

1,545

1,634

5.5% 7/1/10 (FSA Insured) (e)

Aaa

3,800

4,056

Louisville & Jefferson Swr. Sys. Rev. Series A, 5.75% 5/15/33 (FGIC Insured)

Aaa

65,000

67,964

Owensboro Elec. Lt. & Pwr. Rev. Series B:

0% 1/1/07 (AMBAC Insured)

Aaa

10,000

7,956

0% 1/1/08 (AMBAC Insured)

Aaa

600

453

0% 1/1/09 (AMBAC Insured)

Aaa

2,000

1,428

0% 1/1/10 (AMBAC Insured)

Aaa

8,440

5,712

124,355

Louisiana - 0.6%

Monroe-West Monroe Pub. Trust Fing. Auth. Mtg. Rev. Series C, 0% 8/20/14

AA-

9,000

4,547

New Orleans Gen. Oblig.:

0% 9/1/08 (AMBAC Insured)

Aaa

10,000

7,250

0% 9/1/09 (AMBAC Insured)

Aaa

16,500

11,276

0% 9/1/11 (AMBAC Insured)

Aaa

4,165

2,557

0% 9/1/14 (AMBAC Insured)

Aaa

5,000

2,542

28,172

Maryland - 0.4%

Howard County Mtg. Rev. (Heartlands Elderly Apts. Proj.) 8.875% 12/1/10 (MBIA Insured)

Aaa

250

257

Maryland Cmnty. Dev. Administration Dept. Hsg. & Cmnty. Dev. (Residential Proj.) Series B, 5.05% 9/1/19 (e)

Aa2

1,970

1,982

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Maryland - continued

Maryland Health & Higher Edl. Facilities Auth. Rev.:

(Good Samaritan Hosp. Proj.):

5.75% 7/1/13 (AMBAC Insured)
(Escrowed to Maturity) (f)

Aaa

$ 995

$ 1,081

5.75% 7/1/13 (Escrowed to Maturity) (f)

-

1,605

1,743

(Univ. of Maryland Med. Sys. Proj.) 6.75% 7/1/30

Baa1

10,415

11,018

Prince Georges County Solid Waste Mgmt. Sys. Rev. 5.25% 6/15/13 (FSA Insured)

Aaa

1,500

1,533

17,614

Massachusetts - 10.0%

Boston Metro. District 8% 12/1/03
(MBIA Insured)

Aaa

1,260

1,398

Massachusetts Bay Tran Auth.
Series 2000 A, 5.25% 7/1/30

Aa1

7,105

6,992

Massachusetts Bay Tran Auth. Sales Tax
Series 2000 A, 5.5% 7/1/30

Aa3

17,500

17,726

Massachusetts Bay Trans. Auth.:

Series A:

5.375% 3/1/19

Aa2

15,000

15,270

5.5% 3/1/12

Aa2

5,000

5,395

5.75% 3/1/26 (FGIC Insured)

Aa2

17,795

18,664

6.25% 3/1/12

Aa2

2,000

2,287

Series B:

5.25% 3/1/26 (FSA Insured)

Aaa

14,750

14,650

6.2% 3/1/16

Aa2

3,800

4,344

Massachusetts Ed. Ln. Auth. Ed. Ln. Rev.:

Series A Issue E, 4.9% 7/1/13
(AMBAC Insured) (e)

AAA

6,535

6,489

Series B Issue E:

5.75% 7/1/05 (AMBAC Insured) (e)

Aaa

2,045

2,148

5.85% 7/1/06 (AMBAC Insured) (e)

Aaa

2,435

2,568

5.95% 7/1/07 (AMBAC Insured) (e)

Aaa

2,640

2,782

6.05% 7/1/08 (AMBAC Insured) (e)

Aaa

2,725

2,871

6.15% 7/1/10 (AMBAC Insured) (e)

Aaa

1,095

1,150

6.25% 7/1/11 (AMBAC Insured) (e)

Aaa

650

683

6.3% 7/1/12 (AMBAC Insured) (e)

Aaa

665

698

Massachusetts Fed. Hwy.:

5.75% 6/15/11

Aa3

10,000

10,997

5.75% 6/15/12

Aa3

5,000

5,450

5.75% 6/15/13

Aa3

5,000

5,410

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Massachusetts - continued

Massachusetts Gen. Oblig.:

(Consolidated Ln. Prog.):

Series A, 7.5% 6/1/04

Aa2

$ 3,270

$ 3,506

Series B, 4.875% 10/1/13

Aa2

2,500

2,512

Series 2001 A, 5.5% 1/1/10

Aa2

7,500

8,103

Massachusetts Health & Edl. Facilities Auth. Rev.:

(Blood Research Institute Proj.) Series A, 6.5% 2/1/22

-

4,430

4,550

(Boston College Issue Proj.) Series L, 4.75% 6/1/31

Aa3

5,000

4,487

(Fairview Extended Care Proj.) Series B, 4.55% 1/1/21 (MBIA Insured)

Aaa

4,700

4,757

(Harvard Univ. Issue Proj.) Series W, 6% 7/1/35

Aaa

10,500

11,362

(Massachusetts Gen. Hosp. Proj.) Series F, 6.25% 7/1/12 (AMBAC Insured)

Aaa

2,000

2,289

(New England Med. Ctr. Hosp. Proj.) Series G, 5.375% 7/1/24 (MBIA Insured)

Aaa

3,800

3,758

(South Shore Hosp. Proj.) Series F, 5.75% 7/1/29

A2

11,930

11,561

(Tufts Univ. Proj.) Series I, 5.5% 2/15/36

Aa3

10,000

10,196

(Univ. of Massachusetts Proj.) Series A, 5.875% 10/1/29 (FGIC Insured)

Aaa

10,000

10,632

(Wellesley College Proj.) Series F, 5.125% 7/1/39

Aa1

6,500

6,235

Massachusetts Hsg. Fin. Agcy. Hsg. Rev.
(Rental Proj.) Series A:

6.6% 7/1/14 (AMBAC Insured) (e)

Aaa

2,190

2,311

6.65% 7/1/19 (AMBAC Insured) (e)

Aaa

1,760

1,868

Massachusetts Indl. Fin. Agcy. Resource Recovery Rev. (Ogden Haverhill Proj.) Series 1992 A:

4.6% 12/1/02

BBB

5,430

5,432

4.7% 12/1/03

BBB

1,975

1,976

Massachusetts Indl. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series A2:

0% 8/1/03

A+

29,600

27,519

0% 8/1/04

A+

5,000

4,447

0% 8/1/06

A+

30,800

24,907

0% 8/1/08

A+

5,000

3,636

0% 8/1/09

A+

21,800

14,873

0% 8/1/10

A+

2,000

1,288

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Massachusetts - continued

Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys. Rev.:

Series A:

5% 7/1/10 (AMBAC Insured)

Aaa

$ 4,610

$ 4,683

6.75% 7/1/08 (MBIA Insured)

Aaa

2,500

2,625

Series B:

5% 7/1/12 (MBIA Insured)

Aaa

2,715

2,747

6.75% 7/1/08 (MBIA Insured)

Aaa

5,995

6,294

Series C, 6.625% 7/1/06

Baa2

2,220

2,315

Series D, 6% 7/1/06

Baa2

1,300

1,346

Massachusetts Port Auth. Rev. Series C, 5.75% 7/1/29

Aa3

15,845

16,568

Massachusetts Tpk. Auth. Metro. Hwy. Sys. Rev. Series A:

5% 1/1/27 (MBIA Insured)

Aaa

4,000

3,812

5% 1/1/37 (MBIA Insured)

Aaa

10,000

9,211

5% 1/1/39 (AMBAC Insured)

Aaa

25,860

23,784

5.125% 1/1/23 (MBIA Insured)

Aaa

8,200

8,059

Massachusetts Tpk. Auth. Western Tpk. Rev. Series A, 5.55% 1/1/17 (MBIA Insured)

Aaa

20,380

20,888

Massachusetts Wtr. Poll. Abatement Trust Wtr. Poll. Abatement Rev. (MWRA Ln. Prog.)
Series A, 5.25% 8/1/13

Aaa

90

94

Massachusetts Wtr. Resources Auth. Rev.
Series A, 5.75% 8/1/39 (FGIC Insured)

Aaa

33,000

34,513

New England Ed. Ln. Marketing Corp. Massachusetts (Student Ln. Prog.) Series A, 5.7% 7/1/05 (e)

Aa2

18,500

19,628

Route 3 North Trans. Improvements Asscociation Lease Rev. 5.75% 6/15/16 (MBIA Insured)

Aaa

4,850

5,147

461,891

Michigan - 3.5%

Caladonia Cmnty. Schools 5.5% 5/1/26
(FGIC Insured)

Aaa

7,000

7,143

Detroit Convention Facilities Rev. (Cobo Hall Expansion Proj.) 5.25% 9/30/12

A

4,000

4,022

Detroit Wtr. Supply Sys. Rev.:

Series 2001 A, 5.75% 7/1/28 (FGIC Insured)

Aaa

8,100

8,476

Series A:

5.75% 7/1/26 (FGIC Insured) (Pre-Refunded to 1/1/10 @ 101) (f)

Aaa

14,750

16,371

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Michigan - continued

Detroit Wtr. Supply Sys. Rev.: - continued

Series A:

5.875% 7/1/22 (FGIC Insured) (Pre-Refunded to 1/1/10 @ 101) (f)

Aaa

$ 16,905

$ 18,912

5.875% 7/1/29 (FGIC Insured) (Pre-Refunded to 1/1/10 @ 101) (f)

Aaa

10,900

12,194

Holt Pub. Schools Series 2000 A, 5.5% 5/1/23 (FGIC Insured)

Aaa

2,250

2,290

Livonia Pub. School District 5.875% 5/1/25 (FGIC Insured)

Aaa

3,000

3,170

Lowell Area Schools 0% 5/1/20 (FGIC Insured) (Pre-Refunded to 5/1/05 @ 33.6439) (f)

Aaa

19,185

5,583

Michigan Bldg. Auth. Rev. Series II, 6.25% 10/1/20 (MBIA Insured)

Aaa

1,100

1,126

Michigan Hosp. Fin. Auth. Rev.:

(Mercy Health Svcs. Proj.):

Series Q, 5.375% 8/15/26 (AMBAC Insured) (Escrowed to Maturity) (f)

Aaa

4,750

4,818

Series W, 5.25% 8/15/27 (FSA Insured) (Escrowed to Maturity) (f)

Aaa

4,000

3,928

Series X, 6% 8/15/34 (MBIA Insured)

Aaa

10,675

11,290

(Sisters of Mercy Proj.) Series P, 5.375% 8/15/14 (MBIA Insured) (Escrowed to Maturity) (f)

Aaa

420

438

(Trinity Health Proj.) Series 2000 A, 6% 12/1/27

Aa3

2,000

2,045

Michigan Hsg. Dev. Auth. Rental Hsg. Rev.
Series B, 5.7% 4/1/12

AA-

3,750

3,886

Michigan Muni. Bond Auth. Rev.:

(Local Govt. Ln. Prog.) Series G, 7% 11/1/02 (AMBAC Insured)

Aaa

1,465

1,543

(State Revolving Fund Prog.) 5.125% 10/1/20

Aaa

18,300

18,198

Michigan Trunk Line Series A, 0% 10/1/09 (AMBAC Insured)

Aaa

8,010

5,501

Rankin County School District 5.5% 2/1/13 (MBIA Insured)

Aaa

2,505

2,691

Romulus Cmnty. Schools 5.25% 5/1/25

Aaa

6,350

6,316

Royal Oak Hosp. Fin. Auth. Hosp. Rev.
(William Beaumont Hosp. Proj.):

Series M, 5.25% 11/15/31 (MBIA Insured)

Aaa

7,000

6,794

5.5% 1/1/14

Aa3

3,695

3,781

6.25% 1/1/09

Aa3

400

441

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Michigan - continued

Univ. of Michigan Univ. Revs. (Univ. Hosp. Proj.) Series A, 5.75% 12/1/12

Aa2

$ 7,750

$ 8,006

Western Townships Util. Auth. Swr. Disp. Sys. 0% 1/1/05 (FSA Insured)

Aaa

2,810

2,451

161,414

Minnesota - 1.3%

Centennial Independent School District #12 Series B, 4.875% 2/1/12 (FGIC Insured)

Aaa

2,610

2,615

Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Healthspan Corp. Proj.) Series A, 4.75% 11/15/18 (AMBAC Insured)

Aaa

9,700

9,108

Minnesota Agric. & Economic Dev. Board Rev. (Health Care Sys. Proj.) Series A, 6.375% 11/15/29

A2

12,000

12,395

Minnesota Hsg. Fin. Agcy. (Single Family Mtg. Prog.) Series B, 5.8% 7/1/25 (e)

Aa1

5,750

5,790

Saint Cloud Health Care Rev. (Saint Cloud Hosp. Group Oblig. Proj.) Series A, 5.875% 5/1/30 (FSA Insured)

Aaa

8,500

8,963

Saint Cloud Hosp. Facilities Rev. (Saint Cloud Hosp. Proj.) Series C, 5.25% 10/1/13 (AMBAC Insured)

Aaa

2,000

2,041

Univ. of Minnesota Gen. Oblig. 4.8% 8/15/03

Aa2

18,600

19,030

59,942

Mississippi - 0.1%

Hinds County Rev. (Mississippi Methodist
Hosp. & Rehabilitation Proj.) 5.6% 5/1/12 (AMBAC Insured)

Aaa

4,000

4,311

Missouri - 0.9%

Kirkwood Indl. Dev. Auth. Health Care Corp. Rev. (Saint Joseph Hosp. Proj.) 7% 7/1/22 (Pre-Refunded to 7/1/02 @ 102) (f)

-

1,500

1,592

Missouri Envir. Impt. & Energy Resources Auth. Wtr. Poll. Cont. Rev. (Revolving Debt Fund Prog.) Series 2001 B:

5.5% 7/1/12

Aaa

3,000

3,260

5.5% 7/1/13

Aaa

4,000

4,332

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Missouri - continued

Missouri Health & Edl. Facilities Auth. Edl. Facilities Rev. (Washington Univ. Proj.):

Series A, 4.75% 11/15/37

Aa1

$ 4,750

$ 4,213

Series B, 6% 3/1/30

Aa1

26,050

27,827

Missouri Hsg. Dev. Commission Single Family Mtg. Rev. Series C, 5.5% 3/1/16 (e)

AAA

1,225

1,267

42,491

Montana - 0.2%

Montana Board of Invt. (Payroll Tax Workers Compensation Prog.):

Series 1996:

6.875% 6/1/20 (MBIA Insured)
(Escrowed to Maturity) (f)

Aaa

1,255

1,433

6.875% 6/1/20 (MBIA Insured)
(Escrowed to Maturity) (f)

Aaa

3,870

4,420

6.875% 6/1/20 (MBIA Insured)
(Escrowed to Maturity) (f)

Aaa

2,005

2,290

8,143

Nebraska - 0.1%

Nebraska Pub. Pwr. District Rev. Series A, 5.25% 1/1/12 (MBIA Insured)

Aaa

3,250

3,393

Scotts Bluff County Hosp. Auth. #1 Hosp. Rev. 6.45% 12/15/04 (Pre-Refunded to 12/15/02 @ 102) (f)

A3

785

817

4,210

Nevada - 0.5%

Las Vegas Downtown Redev. Agcy. Tax Increment Rev. (Fremont Street Proj.) Series A, 6.1% 6/15/14

BBB+

500

507

Nevada Gen. Oblig. (Cap. Impt. Proj.) Series B, 5.25% 6/1/11

Aa2

5,025

5,246

Washoe County Gen. Oblig.:

(Reno Sparks Proj.) Series B:

0% 7/1/12 (FSA Insured)

Aaa

4,605

2,671

0% 7/1/13 (FSA Insured)

Aaa

4,590

2,504

0% 7/1/14 (FSA Insured)

Aaa

3,000

1,532

(Reno-Convention Ctr. Proj.) Series A, 6.4% 7/1/29 (FSA Insured) (Pre-Refunded to 1/1/10 @ 100) (f)

Aaa

9,000

10,305

22,765

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

New Hampshire - 0.1%

New Hampshire Health & Edl. Facilities Auth. Rev. (Univ. Sys. of New Hampshire Proj.):

5.25% 7/1/08 (AMBAC Insured) (c)

Aaa

$ 1,980

$ 2,050

5.25% 7/1/09 (AMBAC Insured) (c)

Aaa

1,080

1,116

5.25% 7/1/11 (AMBAC Insured) (c)

Aaa

1,310

1,355

4,521

New Jersey - 1.0%

Middlesex County Poll. Cont. Auth. Rev. (Amerada Hess Corp. Proj.) 7.875% 6/1/22

-

7,750

8,427

New Jersey Health Care Facilities Fing. Auth. Rev. (Christ Hosp. Group Issue Proj.) 7% 7/1/06 (AMBAC Insured)

AAA

1,635

1,864

New Jersey Tpk. Auth. Tpk. Rev. Series 2000 A, 6% 1/1/11 (MBIA Insured)

Aaa

6,500

7,313

New Jersey Trans. Trust Fund Auth.
(Trans. Sys. Proj.):

Series A:

5.25% 6/15/11

Aa2

8,895

9,370

5.5% 6/15/11 (MBIA Insured)

Aaa

6,650

7,044

Series B, 5% 6/15/13 (AMBAC Insured)

Aaa

11,055

11,318

Warren County Poll. Cont. Fing. Auth. Resource Recovery Rev. 6.55% 12/1/06 (MBIA Insured)

Aaa

1,000

1,040

46,376

New Mexico - 0.7%

Albuquerque Arpt. Rev.:

Series A, 6.6% 7/1/16 (AMBAC Insured) (e)

Aaa

4,750

4,953

6.5% 7/1/08 (AMBAC Insured) (e)

Aaa

1,500

1,689

6.7% 7/1/18 (AMBAC Insured) (e)

Aaa

2,500

2,757

6.75% 7/1/09 (AMBAC Insured) (e)

Aaa

1,150

1,326

6.75% 7/1/10 (AMBAC Insured) (e)

Aaa

1,700

1,973

6.75% 7/1/12 (AMBAC Insured) (e)

Aaa

1,935

2,268

Bernalillo County Gross Receipt Tax Rev. 5.25% 10/1/26

Aa3

5,790

5,718

New Mexico Edl. Assistance Foundation Student Ln. Rev.:

Series B, 5.25% 4/1/05 (AMBAC Insured) (e)

Aaa

2,005

2,032

Series II A, 5% 12/1/02 (e)

Aaa

2,125

2,164

Univ. of New Mexico Univ. Rev. Series A, 6% 6/1/21

Aa3

5,340

5,937

30,817

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

New York - 13.7%

Metro. Trans. Auth. Commuter Facilities Rev.:

(Svc. Contract Proj.) Series 8, 5.25% 7/1/17

A3

$ 2,000

$ 2,016

Series A:

5.625% 7/1/27 (MBIA Insured)

Aaa

10,055

10,292

6% 7/1/16 (FGIC Insured)

Aaa

2,000

2,147

6% 7/1/24

Baa1

2,400

2,567

6.125% 7/1/29

Baa1

25,000

26,854

Series B:

4.75% 7/1/26 (FGIC Insured)

Aaa

12,130

11,197

4.875% 7/1/18 (FGIC Insured)

Aaa

2,540

2,492

Series C1, 5.125% 7/1/12 (FGIC Insured)

Aaa

7,570

7,848

Series D, 5.125% 7/1/22 (MBIA Insured)

Aaa

9,650

9,632

Metro. Trans. Auth. Dedicated Tax Fund:

Series 2000 A, 6% 4/1/30 (FGIC Insured)

Aaa

5,000

5,392

Series A:

5% 4/1/29 (FSA Insured)

Aaa

16,000

15,534

5.25% 4/1/26 (MBIA Insured)

Aaa

12,500

12,507

Metro. Trans. Auth. Svc. Contract Rev.:

(Commuter Facilities Proj.) Series O:

5.75% 7/1/08

A3

1,000

1,094

5.75% 7/1/13

A3

14,250

15,660

(Trans. Facilities Proj.):

Series 5, 6.9% 7/1/05

A3

1,000

1,025

Series 7, 5.4% 7/1/06

Baa1

1,000

1,069

Series O, 5.625% 7/1/05

A3

7,595

8,135

Series P, 5.75% 7/1/15

A3

9,500

9,788

Metro. Trans. Auth. Trans. Facilities Rev.:

(Svc. Contract Proj.):

Series 8:

5.25% 7/1/17

A3

3,350

3,376

5.375% 7/1/21 (FSA Insured)

Aaa

6,400

6,494

Series Q, 5.125% 7/1/13 (AMBAC Insured)

Aaa

15,305

15,756

Series R, 5.4% 7/1/10

A3

2,680

2,856

Series A, 5.75% 7/1/21 (MBIA Insured)

Aaa

13,430

14,097

Series B, 4.75% 7/1/26 (FGIC Insured)

Aaa

14,500

13,384

Series B2, 5% 7/1/17 (MBIA Insured)

Aaa

2,950

2,958

Series C:

4.75% 7/1/16 (FSA Insured)

Aaa

3,300

3,230

5.125% 7/1/14 (FSA Insured)

Aaa

1,625

1,670

Series K, 6.3% 7/1/06 (MBIA Insured)

Aaa

3,500

3,908

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

New York - continued

Nassau County Gen. Oblig. Series A:

6.5% 5/1/05 (FGIC Insured)

Aaa

$ 4,490

$ 4,937

6.5% 5/1/06 (FGIC Insured)

Aaa

4,000

4,465

New York City Gen. Oblig.:

Series A:

6% 8/1/18 (FSA Insured)
(Escrowed to Maturity) (f)

Aaa

4,900

4,905

6.375% 8/1/05

A2

3,350

3,505

7% 8/1/04

A2

4,375

4,804

7.75% 8/15/07

A2

40

41

7.75% 8/15/07 (Pre-Refunded to 8/15/01 @ 101.5) (f)

Aaa

210

214

Series B:

5.5% 8/15/01

A2

310

311

5.5% 8/15/01 (Escrowed to Maturity) (f)

Aaa

90

90

5.7% 8/15/02 (Escrowed to Maturity) (f)

Aaa

195

201

Series C:

6.4% 8/1/03

A2

4,120

4,320

6.5% 8/1/07

A2

2,425

2,535

6.5% 8/1/07 (Pre-Refunded to 8/1/02
@ 101.5) (f)

A3

10

11

Series D:

6.5% 2/15/05

A2

500

546

6.6% 2/1/03

A2

975

1,024

6.6% 2/1/03 (Escrowed to Maturity) (f)

A3

25

26

8% 2/1/05

A2

2,550

2,905

Series H Sub Series H1, 5.5% 8/1/01 (Escrowed to Maturity) (f)

A3

100

100

Series J, 6% 2/15/04

A2

1,750

1,856

6.375% 8/1/05 (Pre-Refunded to 8/1/02
@ 101.5) (f)

A2

60

63

New York City Indl. Dev. Agcy. Indl. Dev. Rev. (Japan Airlines Co. Ltd. Proj.) Series 1991, 6% 11/1/15 (FSA Insured) (e)

Aaa

1,815

1,930

New York City Indl. Dev. Agcy. Spl. Facilities Rev. (Term. One Group Assoc. Proj.) 6% 1/1/08 (e)

A3

500

527

New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.:

Series 1996 B:

5.75% 6/15/26 (MBIA Insured)

Aaa

5,970

6,165

5.875% 6/15/26

Aa2

1,125

1,170

5.875% 6/15/26 (Pre-Refunded to 6/15/06 @ 101) (f)

Aa2

200

223

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

New York - continued

New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.: - continued

Series 2000 B, 6% 6/15/33

Aa2

$ 11,250

$ 12,154

Series A, 5.75% 6/15/31 (FGIC Insured)

Aaa

2,625

2,750

Series B:

5.75% 6/15/26

Aa2

10,000

10,387

5.75% 6/15/26 (AMBAC Insured)

Aaa

10,000

10,375

5.75% 6/15/29

Aa2

56,120

58,159

5.75% 6/15/29 (MBIA Insured)

Aaa

15,950

16,548

New York City Transitional Fin. Auth. Rev.:

Series A:

5% 8/15/15

Aa2

3,375

3,393

6% 8/15/29

Aa2

10,930

11,756

Series B, 6% 11/15/29

Aa2

13,500

14,587

New York City Trust Cultural Resources Rev. (American Museum of Natural History Proj.) Series A, 5.65% 4/1/27 (MBIA Insured)

Aaa

6,500

6,647

New York State Dorm. Auth. Revs.:

(City Univ. Sys. Consolidation Proj.):

Series A, 5.75% 7/1/09

A3

4,370

4,792

Series D:

7% 7/1/09

A3

2,000

2,253

7% 7/1/09 (FGIC Insured)

Aaa

3,780

4,277

(City Univ. Sys. Proj.) Series C, 7.5% 7/1/10 (FGIC Insured)

Aaa

24,650

29,102

(State Univ. Edl. Facilities Proj.):

Series A, 5.875% 5/15/17 (FGIC Insured)

Aaa

6,865

7,653

5.75% 5/15/09

A3

2,465

2,664

5.95% 5/15/29 (FGIC Insured)

Aaa

13,250

14,210

(Suffolk County Judicial Facilities Proj.)
Series A, 9.5% 4/15/14

Baa1

690

785

New York State Envir. Facilities Corp. Clean Wtr. & Drinking Wtr. Rev. (State Wtr. Revolving Funds Prog.) Series F:

4.875% 6/15/18

Aa1

7,280

7,119

4.875% 6/15/20

Aa1

13,900

13,440

5% 6/15/15

Aa1

7,000

7,087

New York State Envir. Facilities Corp. Poll.
Cont. Rev. (State Wtr. Revolving Fund Prog.) Series D, 5.125% 6/15/19

Aaa

4,930

4,942

New York State Local Govt. Assistance Corp.:

Series A, 0% 4/1/08

A3

2,000

1,484

Series B, 0% 4/1/08

A3

5,000

3,710

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

New York - continued

New York State Local Govt. Assistance Corp.: - continued

Series C:

0% 4/1/13

A3

$ 5,000

$ 2,794

5.5% 4/1/17

A3

21,850

23,297

New York State Med. Care Facilities Fin. Agcy. Rev. (Mtg. Prog.) Series E, 6.2% 2/15/15

Aa2

1,500

1,574

New York State Thruway Auth. Gen. Rev. (Spl. Oblig. Cross Proj.) Series A, 0% 1/1/05

BBB

8,500

7,340

New York State Thruway Auth. Svc. Contract Rev. (Local Hwy. & Bridge Proj.) Series B, 5.375% 4/1/11 (MBIA Insured)

Aaa

10,000

10,643

New York State Urban Dev. Corp. Rev. (Correctional Cap. Facilities Proj.) Series A, 6.3% 1/1/03

A3

6,000

6,268

Niagara Falls Gen. Oblig. (Pub. Impt. Proj.) 7.5% 3/1/18 (MBIA Insured)

Aaa

500

647

Triborough Bridge & Tunnel Auth. Rev. (Convention Ctr. Proj.) Series E, 7.25% 1/1/10

A3

9,650

11,099

Triborough Bridge & Tunnel Auth. Revs.:

Series A:

4.75% 1/1/19

Aa3

3,155

3,014

5.125% 1/1/22

Aa3

5,550

5,512

5.25% 1/1/28

Aa3

13,315

13,331

Series B, 5.2% 1/1/27 (FGIC Insured)

Aaa

3,000

2,971

Series SR, 5.5% 1/1/12

Aa3

10,480

11,363

Series Y, 5.5% 1/1/17

Aa3

19,100

20,460

Triborough Bridge & Tunnel Auth. Spl. Oblig. Series A, 5.25% 1/1/11 (FGIC Insured)

Aaa

3,320

3,508

633,947

North Carolina - 4.6%

Charlotte Wtr. & Swr. Sys. Rev. Series 2001, 5% 6/1/18

Aa1

3,440

3,428

Harnett County Ctfs. of Prtn.:

7.5% 12/1/03 (AMBAC Insured)

Aaa

2,640

2,898

7.5% 12/1/04 (AMBAC Insured)

Aaa

2,865

3,231

Mecklenburg County Gen. Oblig. 6% 4/1/12

Aaa

5,535

6,254

North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.:

Series 1993 B, 7% 1/1/08 (MBIA Insured)

Aaa

6,900

7,916

Series A:

5.5% 1/1/05 (MBIA Insured)

Aaa

1,000

1,053

5.75% 1/1/26

Baa3

4,000

3,843

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

North Carolina - continued

North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: - continued

Series A:

6.25% 1/1/03

Baa3

$ 4,600

$ 4,741

7.875% 1/1/02

Baa3

4,000

4,088

Series B:

5.875% 1/1/21 (MBIA Insured)

Aaa

22,725

23,724

6% 1/1/05

Baa3

11,500

11,997

6% 1/1/14

Baa3

13,500

13,742

7% 1/1/08

Baa3

9,000

10,002

7.25% 1/1/07

Baa3

8,375

9,323

Series C:

5.125% 1/1/03

Baa3

7,720

7,834

5.25% 1/1/04

Baa3

1,000

1,020

5.5% 1/1/07

Baa3

5,950

6,127

7% 1/1/07

Baa3

15,715

17,306

Series D:

6.7% 1/1/19

Baa3

5,000

5,304

6.75% 1/1/26

Baa3

7,000

7,341

North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.:

Series 1992, 7.25% 1/1/07

Baa1

5,200

5,789

Series 1999 B, 6.375% 1/1/08

Baa1

7,000

7,539

Series A:

5.125% 1/1/15 (MBIA Insured)

Aaa

6,860

6,926

5.125% 1/1/17 (MBIA Insured)

Aaa

15,350

15,373

5.125% 1/1/17 (MBIA Insured)

Aaa

16,000

15,985

6.25% 1/1/17 (AMBAC Insured)

Aaa

2,050

2,132

North Carolina State Hwy. Series A, 4.75% 4/1/12

Aaa

8,000

8,138

213,054

North Dakota - 0.8%

Mercer County Poll. Cont. Rev.:

(Antelope Valley Station/Basin Elec. Pwr. Coop. Proj.) 7.2% 6/30/13 (AMBAC Insured)

Aaa

26,000

31,393

(Montana-Dakota Utils. Co. Proj.) 6.65% 6/1/22 (FGIC Insured)

Aaa

3,750

3,903

35,296

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Ohio - 2.1%

Cincinnati Gen. Oblig. (Police & Firemen's Disability Proj.) 6% 12/1/35

Aa1

$ 11,000

$ 11,812

Franklin County Hosp. Rev. 5.5% 5/1/28 (AMBAC Insured)

Aaa

4,265

4,290

Hilliard School District:

Series 2001 B, 5.5% 12/1/07

Aa2

2,635

2,856

5.75% 12/1/24 (FGIC Insured)

Aaa

4,725

4,972

Lakota Local School District 5.125% 12/1/26 (FGIC Insured)

Aaa

5,000

4,900

Montgomery County Rev. (Catholic Health Initiatives Proj.) Series A:

6% 12/1/19

Aa3

10,000

10,493

6% 12/1/26

Aa3

10,000

10,376

Ohio Bldg. Auth.:

(Adult Correctional Proj.):

Series 2001 A:

5.5% 10/1/08 (FSA Insured)

Aaa

4,000

4,337

5.5% 10/1/10 (FSA Insured)

Aaa

5,000

5,419

Series A, 5.95% 10/1/14 (MBIA Insured)

Aaa

4,000

4,196

(W. Green Bldg. Proj.) Series A, 4.75% 4/1/14

A2

15,000

14,713

Ohio Hsg. Fin. Agcy. Mtg. Rev. (Oakleaf-Toledo Apts. Proj.) 10.25% 12/20/25

AA-

1,520

1,644

Ohio Tpk. Commission Tpk. Rev. Series A:

5.6% 2/15/12 (MBIA Insured)

Aaa

1,250

1,325

5.7% 2/15/13 (MBIA Insured)

Aaa

2,750

2,919

Ohio Wtr. Dev. Auth. Poll. Cont. Facilites Rev.:

(Buckeye Pwr., Inc. Proj.) 7.8% 11/1/14 (AMBAC Insured)

Aaa

2,525

2,836

(Wtr. Cont. Ln. Fund Prog.) State Match Series, 6.5% 12/1/03 (MBIA Insured)

Aaa

2,925

3,145

Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B, 6.375% 11/15/30

A-

3,000

3,003

Univ. of Cincinnati Ctfs. of Prtn. 5.125% 6/1/28 (MBIA Insured)

Aaa

3,750

3,662

96,898

Oklahoma - 1.0%

Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) 6% 2/15/29

Aa3

15,000

15,850

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Oklahoma - continued

Oklahoma Industries Auth. Rev. (Health Sys. Oblig. Group Proj.) Series A, 5.75% 8/15/29 (MBIA Insured)

Aaa

$ 19,750

$ 20,211

Sapulpa Muni. Auth. Util. Rev. 5.75% 4/1/23 (FGIC Insured)

Aaa

8,600

8,884

44,945

Oregon - 0.5%

Multonomah County School District #3 (Park Rose Proj.):

7% 12/1/03 (FGIC Insured)

Aaa

2,000

2,175

7% 12/1/04 (FGIC Insured)

Aaa

2,540

2,824

Oregon Health Hsg. Edl. & Cultural Facilities Auth. (Lewis & Clark College Proj.) Series A:

6% 10/1/13 (MBIA Insured)

Aaa

1,750

1,866

6.125% 10/1/24 (MBIA Insured)

Aaa

1,000

1,053

Port Morrow Poll. Cont. Rev. (Pacific Northwest Proj.) Series A:

8% 7/15/06

AA-

385

404

8% 7/15/07

AA-

430

451

8% 7/15/08

AA-

480

504

8% 7/15/09

AA-

540

566

8% 7/15/10

AA-

605

635

8% 7/15/11

AA-

385

403

Portland Swr. Sys. Rev. 5.75% 8/1/20
(FGIC Insured)

Aaa

12,890

13,591

24,472

Pennsylvania - 2.9%

Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/07
(MBIA Insured) (e)

Aaa

6,500

6,981

Allegheny County Hosp. Dev. Auth. (Univ. of Pittsburgh Med. Ctr. Proj.) Series B, 5.125% 7/1/22 (MBIA Insured)

Aaa

9,640

9,416

Cambria County Hosp. Dev. Auth. Hosp. Impt. (Conemaugh Valley Hosp. Proj.) Series B, 6.375% 7/1/18 (AMBAC Insured)
(Pre-Refunded to 7/1/02 @ 102) (f)

A2

1,500

1,582

Chester County Health & Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series B, 5.25% 5/15/22 (AMBAC Insured)

Aaa

4,400

4,361

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Pennsylvania - continued

Cumberland County Muni. Auth. Rev. (Carlisle Hosp. & Health Proj.) 6.8% 11/15/23
(Pre-Refunded to 11/15/04 @ 102) (f)

Baa3

$ 8,400

$ 9,415

Delaware County Auth. Hosp. Rev. (Crozer-
Chester Med. Ctr. Proj.) 6% 12/15/20

Baa2

3,500

3,210

Delaware County Auth. Rev. (First Mtg. Riddle Village Proj.):

Series 1992 8.75% 6/1/10 (Pre-Refunded to 6/1/02 @ 102) (f)

Aaa

1,760

1,889

8.25% 6/1/22 (Escrowed to Maturity) (f)

Aaa

4,420

5,055

Northumberland County Auth. Commonwealth Lease Rev. (State Correctional Facilities Proj.) 0% 10/15/13 (MBIA Insured) (Escrowed to Maturity) (f)

Aaa

11,830

6,498

Pennsylvania Convention Ctr. Auth. Rev. Series A:

6.6% 9/1/09 (MBIA Insured)

Aaa

3,000

3,288

6.7% 9/1/14 (MBIA Insured)

Aaa

1,500

1,647

6.7% 9/1/16 (Escrowed to Maturity) (f)

Aaa

2,000

2,355

Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Amtrak Proj.) Series 2001 A, 6.375% 11/1/41 (e)

A3

8,700

8,737

Pennsylvania Higher Ed. Assistance Agcy. 5.875% 12/15/30 (MBIA Insured)

Aaa

5,500

5,809

Pennsylvania Higher Edl. Facilities Auth. Rev. (UPMC Health Sys. Proj.):

Series 2001 A, 6% 1/15/31

A+

7,600

7,693

Series A, 5% 8/1/29 (FSA Insured)

Aaa

3,500

3,290

Pennsylvania Hsg. Fin. Agcy.:

(Multi-family Mtg. Prog.) 8.1% 7/1/13

Aa

2,000

2,081

(Single Family Mtg. Prog.) Series 54A, 5.375% 10/1/28 (e)

Aa2

1,465

1,469

Philadelphia Arpt. Rev. Series 1998, 5.375% 6/15/10 (FGIC Insured) (e)

Aaa

4,425

4,675

Philadelphia Hosps. & Higher Ed. Facilities Auth. Hosp. Rev. (Pennsylvania Hosp. Proj.):

5.7% 7/1/01 (Escrowed to Maturity) (f)

Baa3

4,405

4,405

5.95% 7/1/03 (Escrowed to Maturity) (f)

Baa3

4,000

4,210

Philadelphia Muni. Auth. Rev. Series D:

6% 7/15/03

Baa1

190

193

6.125% 7/15/08

Baa1

4,000

4,073

Philadelphia School District Series C, 5.75% 3/1/29 (MBIA Insured)

Aaa

6,500

6,789

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Pennsylvania - continued

Philadelphia Wtr. & Wastewtr. Rev.:

Series 14, 0% 10/1/05 (MBIA Insured)

Aaa

$ 3,000

$ 2,534

5% 6/15/12 (FGIC Insured)

Aaa

3,000

3,022

6.75% 8/1/04 (MBIA Insured)

Aaa

3,000

3,285

Pittsburgh Wtr. & Swr. Auth. Wtr. & Swr. Sys. Rev. Series A:

0% 9/1/06 (FGIC Insured)
(Escrowed to Maturity) (f)

Aaa

3,000

2,437

4.75% 9/1/16 (FGIC Insured)

Aaa

15,335

14,848

135,247

Rhode Island - 0.1%

Rhode Island Depositor Econ. Protection Corp. Spl. Oblig. Series A, 5.75% 8/1/12
(MBIA Insured) (Escrowed to Maturity) (f)

Aaa

2,145

2,365

Rhode Island Health & Edl. Bldg. Corp. Rev. (Higher Ed./Johnson & Wales Proj.) 5% 4/1/29 (MBIA Insured)

Aaa

2,790

2,642

5,007

South Carolina - 1.1%

Charleston County Gen. Oblig. 6% 6/1/13
(Pre-Refunded to 6/1/06 @ 100) (f)

Aa1

2,500

2,751

Piedmont Muni. Pwr. Agcy. Elec. Rev.:

Series B, 5.25% 1/1/11 (MBIA Insured)

Aaa

8,625

9,049

5.5% 1/1/10 (MBIA Insured)

Aaa

1,455

1,562

5.6% 1/1/09 (MBIA Insured)

Aaa

2,945

3,173

Richland County Hosp. Facilities Rev. (Cmnty. Provider Pooled Ln. Prog.) Series A, 7.125% 7/1/17 (FSA Insured) (Escrowed to Maturity) (f)

Aaa

1,500

1,814

South Carolina Ed. Assistance Auth. Rev.
(Insured Student Ln. Prog.):

6.4% 9/1/02 (e)

-

1,500

1,542

6.625% 9/1/06 (e)

AA

10,775

11,244

South Carolina Jobs Econ. Dev. Auth. Hosp. Facilities Rev. (Palmetto Health Alliance Proj.) Series A, 7.375% 12/15/21

Baa2

4,000

4,164

South Carolina Ports Auth. Ports Rev. 5.5% 7/1/08 (FSA Insured) (e)

Aaa

3,515

3,745

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

South Carolina - continued

South Carolina Pub. Svc. Auth. Rev. Series A:

5.75% 1/1/10 (MBIA Insured)

Aaa

$ 4,705

$ 5,067

6.375% 7/1/21 (AMBAC Insured)

Aaa

3,750

3,881

6.5% 1/1/08 (MBIA Insured)

Aaa

3,530

3,909

51,901

South Dakota - 0.0%

South Dakota Lease Rev. Series A, 6.625% 9/1/12 (FSA Insured)

Aaa

1,000

1,170

Tennessee - 0.7%

Knox County Health Edl. & Hsg. Facilities Board Hosp. Facilities Rev. (Fort Sanders Alliance Proj.) Series C:

5.75% 1/1/14 (MBIA Insured)

Aaa

2,000

2,169

7.25% 1/1/10 (MBIA Insured)

Aaa

2,660

3,156

Memphis Gen. Oblig. 5.25% 7/1/16

Aa2

8,730

8,853

Memphis-Shelby County Arpt. Auth. Arpt. Rev.:

Series A:

6% 2/15/05 (MBIA Insured) (e)

Aaa

1,000

1,071

6.25% 2/15/09 (MBIA Insured) (e)

Aaa

1,500

1,667

6.25% 2/15/10 (MBIA Insured) (e)

Aaa

1,000

1,116

6.25% 2/15/11 (MBIA Insured) (e)

Aaa

1,415

1,593

Series B, 6.5% 2/15/09 (MBIA Insured) (e)

Aaa

500

564

Metro. Govt. Nashville & Davidson County Sports Auth. Rev. (Stadium Proj.) 5.875% 7/1/21 (AMBAC Insured)

Aaa

6,455

6,718

Metro. Govt. Nashville & Davidson County Wtr. & Swr. Sys. Rev. 7.7% 1/1/12 (FGIC Insured)

Aaa

5,600

6,942

33,849

Texas - 8.7%

Allen Independent School District:

0% 2/15/04

Aaa

2,120

1,924

0% 2/15/05

Aaa

2,120

1,838

Arlington Gen. Oblig.:

Series 2001 A, 5.5% 8/15/12 (FSA Insured)

Aaa

4,035

4,317

Series A, 5.5% 8/15/11 (FSA Insured)

Aaa

2,535

2,729

Austin Util. Sys. Rev.:

Series A, 0% 11/15/08 (MBIA Insured)

Aaa

3,895

2,812

0% 11/15/09 (AMBAC Insured)

Aaa

4,000

2,723

0% 5/15/10 (MBIA Insured)

Aaa

7,970

5,252

0% 11/15/10 (AMBAC Insured)

Aaa

4,900

3,154

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Texas - continued

Birdville Independent School District:

0% 2/15/11

Aaa

$ 8,665

$ 5,466

0% 2/15/13

Aaa

11,000

6,144

Brazos River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) 5.05%, tender 6/19/06 (d)(e)

Baa1

5,000

5,009

Cedar Hill Independent School District 0% 8/15/09

Aaa

1,575

1,080

Conroe Independent School District:

Lot B:

0% 2/15/07

Aaa

2,360

1,855

0% 2/15/08

Aaa

3,000

2,239

Series B:

0% 2/15/09

Aaa

1,100

775

0% 2/15/10

Aaa

2,805

1,870

0% 2/15/11

Aaa

1,500

946

Corpus Christi Independent School District 0% 8/15/01

Aaa

1,535

1,530

Cypress-Fairbanks Independent School District:

(School House Proj.) 5.25% 2/15/22

Aaa

3,500

3,474

Series A, 0% 2/15/12

Aaa

18,250

10,828

0% 2/1/04

Aaa

4,250

3,863

Dallas Fort Worth Reg'l. Arpt. Rev.:

(Joint Dallas/Fort Worth Int'l. Arpt. Proj.) 6.5% 11/1/05 (FGIC Insured)

Aaa

2,295

2,537

Series A, 7.375% 11/1/12 (FGIC Insured)

Aaa

1,000

1,102

Dallas Gen. Oblig.:

0% 2/15/03

Aaa

5,115

4,839

4.5% 2/15/14

Aaa

4,900

4,711

Dallas Hsg. Corp. Cap. Prog. Rev. (Section 8 Assorted Projs.):

7.7% 8/1/05

Baa2

1,100

1,112

7.85% 8/1/13

Baa2

1,000

1,011

Dallas Independent School District 0% 8/15/07

Aaa

10,925

8,405

El Paso Arpt. Rev. (El Paso Int'l. Arpt. Proj.) 5.125% 8/15/04 (FGIC Insured) (e)

Aaa

1,000

1,029

El Paso Independent School District 5% 2/15/12

Aaa

3,000

3,063

El Paso Property Fin. Auth. Single Family Mtg. Rev. Series A, 8.7% 12/1/18 (e)

Aaa

755

789

El Paso Wtr. & Swr. Rev.:

0% 3/1/05 (MBIA Insured)

Aaa

2,650

2,294

0% 3/1/06 (MBIA Insured)

Aaa

3,700

3,056

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Texas - continued

Garland Independent School District Series A, 4% 2/15/17

Aaa

$ 5,000

$ 4,338

Grapevine-Colleyville Independent School District 0% 8/15/06

Aaa

2,580

2,091

Harlandale Independent School District:

5.7% 8/15/30

Aaa

8,290

8,571

6% 8/15/16

Aaa

2,445

2,645

Harris County Gen. Oblig.:

(Toll Road Proj.):

0% 8/1/06

Aa1

4,245

3,446

0% 8/1/08

Aa1

8,005

5,854

0% 10/1/13 (MBIA Insured)

Aaa

5,550

3,004

0% 10/1/14 (MBIA Insured)

Aaa

11,000

5,583

Harris County Hosp. District Mtg. Rev.:

7.4% 2/15/10 (AMBAC Insured)

Aaa

1,740

2,025

7.4% 2/15/10 (AMBAC Insured)
(Escrowed to Maturity) (f)

Aaa

1,260

1,434

Houston Independent School District Series A, 0% 8/15/11

Aaa

6,400

3,942

Houston Wtr. & Swr. Sys. Rev. Series C:

0% 12/1/06 (AMBAC Insured)

Aaa

6,735

5,394

0% 12/1/09 (AMBAC Insured)

Aaa

3,000

2,038

Hurst Euless Bedford Independent School District:

0% 8/15/11

Aaa

3,620

2,230

0% 8/15/12

Aaa

5,105

2,956

0% 8/15/13

Aaa

3,610

1,966

Katy Independent School District:

Series A:

0% 2/15/07

Aaa

2,450

1,926

5% 2/15/10

Aaa

2,000

2,064

0% 8/15/11

Aaa

4,170

2,569

Keller Independent School District Series A, 5.125% 8/15/25

Aaa

3,000

2,901

Leander Independent School District 7.5% 8/15/08

Aaa

300

360

Lower Colorado River Auth. Rev.:

0% 1/1/09 (MBIA Insured) (Escrowed to Maturity) (f)

Aaa

3,000

2,147

5.25% 1/1/15 (Escrowed to Maturity) (f)

Aaa

6,000

6,295

Mesquite Independent School District 5.375% 8/15/11

Aaa

1,385

1,455

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Texas - continued

Midlothian Independent School District:

0% 2/15/07

Aaa

$ 1,935

$ 1,521

0% 2/15/09

Aaa

1,970

1,388

0% 2/15/10

Aaa

1,525

1,017

Northside Independent School District 5.5% 2/15/12

Aaa

3,715

3,956

Richardson Independent School District:

5% 2/15/04

Aaa

5,000

5,180

5% 2/15/05

Aaa

3,000

3,126

Rockwall Independent School District:

5.625% 2/15/12

Aaa

4,090

4,394

5.625% 2/15/13

Aaa

1,190

1,269

5.625% 2/15/14

Aaa

1,160

1,228

Round Rock Independent School District:

Series 2001 A:

5.5% 8/1/12

Aaa

2,685

2,866

5.5% 8/1/16

Aaa

2,305

2,387

Series A, 7.5% 8/1/03

Aaa

1,300

1,409

0% 2/15/08

Aaa

9,800

7,314

0% 8/15/09 (MBIA Insured)

Aaa

7,430

5,116

0% 8/15/10 (MBIA Insured)

Aaa

10,800

7,047

0% 8/15/11 (MBIA Insured)

Aaa

4,300

2,649

4.5% 8/1/17

Aaa

5,575

5,175

San Antonio Elec. & Gas Rev.:

Series 1991 B, 0% 2/1/05 (FGIC Insured) (Escrowed to Maturity) (f)

Aaa

12,285

10,717

Series A, 0% 2/1/05 (AMBAC Insured)

Aaa

5,850

5,080

Series B:

0% 2/1/06 (FGIC Insured)
(Escrowed to Maturity) (f)

Aaa

1,295

1,077

0% 2/1/07 (FGIC Insured)
(Escrowed to Maturity) (f)

Aaa

10,000

7,911

0% 2/1/08 (FGIC Insured)
(Escrowed to Maturity) (f)

Aaa

6,340

4,763

0% 2/1/09 (FGIC Insured)
(Escrowed to Maturity) (f)

Aaa

7,000

4,990

0% 2/1/10 (FGIC Insured)
(Escrowed to Maturity) (f)

Aaa

14,000

9,376

San Antonio Gen. Oblig. Series C, 0% 8/1/06 (MBIA Insured)

Aaa

1,920

1,559

San Antonio Wtr. Sys. Rev.:

6.5% 5/15/10 (MBIA Insured)

Aaa

1,595

1,664

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Texas - continued

San Antonio Wtr. Sys. Rev.: - continued

6.5% 5/15/10 (MBIA Insured)
(Escrowed to Maturity) (f)

Aaa

$ 440

$ 510

6.5% 5/15/10 (MBIA Insured)
(Pre-Refunded to 5/15/02 @ 102) (f)

Aaa

500

526

6.5% 5/15/10 (MBIA Insured)
(Pre-Refunded to 5/15/04 @ 100) (f)

Aaa

95

103

Southlake Gen. Oblig. Series 2000 D, 5.75% 2/15/21 (AMBAC Insured)

Aaa

2,345

2,430

Spring Branch Independent School District
Series 2001:

5% 2/1/09 (c)

Aaa

4,245

4,424

5.375% 2/1/12 (c)

Aaa

2,000

2,108

5.375% 2/1/13 (c)

Aaa

4,480

4,681

Spring Independent School District 4.875% 8/15/10

Aaa

3,500

3,590

Tarrant County Health Facilities Dev. Corp. Hosp. Rev. 5.375% 11/15/20

Baa1

5,750

5,166

Texarkana Health Facilities Dev. Corp. Hosp. Rev. (Wadley Reg'l. Med. Ctr. Proj.) 7% 10/1/05 (MBIA Insured)

Aaa

300

309

Texas A&M Univ. Rev. (Fing. Sys. Proj.) 5.5% 5/15/02

Aa1

1,610

1,648

Texas Gen. Oblig.:

(College Student Ln. Prog.) 5.8% 8/1/05 (e)

Aa1

5,350

5,465

(Pub. Fin. Auth. Proj.) Series A, 5% 10/1/14

Aa1

5,000

5,016

(Texas Pub. Fing. Auth. Proj.) 5.25% 10/1/11

Aa1

7,150

7,432

5.375% 8/1/10 (e)

Aa1

6,205

6,471

5.75% 8/1/26

Aa1

5,000

5,191

Texas Muni. Pwr. Agcy. Rev.:

0% 9/1/04 (AMBAC Insured)

Aaa

5,900

5,247

0% 9/1/05 (AMBAC Insured)

Aaa

13,000

11,025

Texas Pub. Fin. Auth. Bldg. Rev.:

Series 1990, 0% 2/1/12 (MBIA Insured)

Aaa

4,400

2,616

0% 2/1/09 (MBIA Insured)

Aaa

2,000

1,412

Texas Tpk. Auth. Dallas North Tollway Rev. (President George Bush Tpk. Proj.) 0% 1/1/10 (AMBAC Insured)

Aaa

3,000

2,012

Travis County Health Facilities Dev. Corp. Rev.:

(Ascension Health Cr. Prog.) Series A:

6.25% 11/15/18 (MBIA Insured)

Aaa

15,550

16,737

6.25% 11/15/19 (MBIA Insured)

Aaa

5,565

5,982

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Texas - continued

United Independent School District 5.25% 8/15/22

Aaa

$ 4,340

$ 4,307

Univ. of Texas Permanent Univ. Fund:

5% 7/1/10

Aaa

2,000

2,070

5.25% 7/1/11

Aaa

7,080

7,386

Univ. of Texas Univ. Revs. (Fing. Sys. Proj.) Series A:

6% 8/15/04

Aaa

1,170

1,254

6% 8/15/05

Aaa

1,000

1,086

Weatherford Independent School District:

Series 2000, 0% 2/15/25 (Pre-Refunded to 2/15/10 @ 36.782) (f)

Aaa

6,155

1,528

0% 2/15/22 (Pre-Refunded to 2/15/10
@ 45.084) (f)

Aaa

2,980

907

0% 2/15/26 (Pre-Refunded to 2/15/10
@ 34.41) (f)

Aaa

2,985

693

404,521

Utah - 3.0%

Intermountain Pwr. Agcy. Pwr. Supply Rev.:

Series A:

6% 7/1/16 (AMBAC Insured)

Aaa

5,640

6,054

6% 7/1/16 (AMBAC Insured)
(Escrowed to Maturity) (f)

Aaa

9,705

10,604

6.5% 7/1/10 (AMBAC Insured)

Aaa

600

690

6.5% 7/1/10 (AMBAC Insured)
(Escrowed to Maturity) (f)

Aaa

1,035

1,202

Series B:

5.75% 7/1/16 (MBIA Insured)

Aaa

30,260

31,824

6% 7/1/16 (MBIA Insured)

Aaa

29,500

31,428

Series D, 5% 7/1/21 (MBIA Insured)

Aaa

12,100

11,742

Series G, 10.125% 7/1/12 (Pre-Refunded to 1/1/03 @ 101) (f)

Aaa

1,660

1,830

Jordan County School District 7.625% 6/15/05

Aa2

2,000

2,282

North Salt Lake Muni. Blg Auth. Lease Rev. 8.625% 12/1/17 (Pre-Refunded to 12/1/02 @ 103) (f)

Aaa

5,925

6,559

Salt Lake City Hosp. Rev. (Intermountain Health Care Hosp., Inc. Proj.) Series A, 8.125% 5/15/15 (Escrowed to Maturity) (f)

AAA

2,975

3,806

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Utah - continued

Salt Lake County Hosp. Rev.:

(IHC Health Svcs., Inc. Proj.):

5.125% 2/25/33 (AMBAC Insured)

Aaa

$ 4,000

$ 3,846

5.5% 5/15/09 (AMBAC Insured)

Aaa

2,400

2,564

5.5% 5/15/11 (AMBAC Insured)

Aaa

9,100

9,687

5.5% 5/15/10 (AMBAC Insured)

Aaa

5,400

5,760

South Salt Lake City Indl. Rev. (Price Savers Wholesale Club Proj.) 9% 11/15/13

-

3,650

3,792

Utah Board of Regents Student Ln. Rev. Series H, 4.65% 5/1/06 (e)

Aaa

5,000

5,019

Utah Hsg. Fin. Agcy. (Single Family Mtg. Prog.) Series G, 9.25% 7/1/19 (e)

AAA

10

10

138,699

Vermont - 0.2%

Vermont Edl. & Health Bldg. Fin. Agcy. Rev. (Middlebury College Proj.) 5% 11/1/38

Aa3

3,750

3,488

Vermont Indl. Dev. Auth. Indl. Dev. Rev. (Radisson Hotel Proj.) Series B1, 7.75% 11/15/15

-

4,350

4,503

7,991

Virginia - 0.7%

Hampton Museum Rev.:

5.25% 1/1/09

A

3,825

3,932

5.25% 1/1/14

A

4,500

4,534

Henrico County Indl. Dev. Auth. Pub. Facilities Lease Rev. (Henrico County Reg'l. Jail Proj.):

7.5% 8/1/04 (Escrowed to Maturity) (f)

Aa2

2,455

2,743

7.5% 8/1/05 (Escrowed to Maturity) (f)

Aa2

2,590

2,966

Loudoun County Indl. Dev. Auth. Residential Care Facilities Rev. (Falcons Landing Proj.) Series A, 9.25% 11/1/04 (Escrowed to Maturity) (f)

-

865

967

Peninsula Ports Auth. Hosp. Facilities Rev. (Whittaker Memorial Hosp. Proj.) 8.7% 8/1/23

Aa

1,500

1,857

Virginia Beach Dev. Auth. Hosp. Facilities Rev. (Virginia Beach Gen. Hosp. Proj.):

6% 2/15/12 (AMBAC Insured)

Aaa

2,150

2,396

6% 2/15/13 (AMBAC Insured)

Aaa

1,460

1,629

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Virginia - continued

Virginia Commonwealth Trans. Board Trust Rev. (U.S. Route 58 Corridor Dev. Prog.) Series B, 5.75% 5/15/21

Aa1

$ 10,000

$ 10,551

Virginia Hsg. Dev. Auth. Multi-family Hsg. Rev. Series I, 5.95% 5/1/09 (e)

Aa1

1,890

2,001

33,576

Washington - 5.9%

Benton County Pub. Util. District #1 Elec. Rev. 6% 11/1/04 (AMBAC Insured)

Aaa

1,740

1,872

Clark County School District #117 Camas:

5.25% 12/1/11 (FSA Insured)

Aaa

3,245

3,424

5.375% 12/1/12 (FSA Insured)

Aaa

3,415

3,598

Cowlitz County Pub. Util. District #1:

5.25% 9/1/08 (AMBAC Insured)

AAA

2,420

2,566

5.25% 9/1/09 (AMBAC Insured)

AAA

1,565

1,657

Douglas County Pub. Util. District #1 Wells Hydroelectric Rev. Series A, 8.75% 9/1/18

Aa3

2,790

3,412

Energy Northwest Elec. Rev. (#1 Proj.)
Series 2001 A, 5.5% 7/1/12 (FSA Insured)

Aaa

15,000

16,095

Pierce County School District #403 Bethel
Series 2001, 5.625% 12/1/14
(MBIA Insured)

Aaa

2,500

2,648

Port of Seattle Gen. Oblig. 5.8% 5/1/09 (e)

Aa1

4,000

4,219

Port of Seattle Passenger Facilities Charge Rev. Series B, 5% 12/1/06 (AMBAC Insured) (e)

Aaa

7,930

8,267

Port of Seattle Rev. Series B:

5.5% 9/1/09 (FGIC Insured) (e)

Aaa

4,010

4,220

5.6% 9/1/10 (FGIC Insured) (e)

Aaa

4,230

4,458

Seattle Muni. Lt. & Pwr. Rev. 5.5% 3/1/09
(FSA Insured)

Aaa

15,000

16,033

Seattle Wtr. Sys. Rev. Series B, 5.75% 7/1/23 (FGIC Insured)

Aaa

3,175

3,300

Washington Ctfs. of Prtn. (Convention & Trade Ctr. Proj.) 5% 7/1/10 (MBIA Insured)

Aaa

3,495

3,635

Washington Gen. Oblig.:

Series 2000 A, 5.625% 7/1/24

Aa1

5,185

5,314

Series A, 6.5% 7/1/03

Aa1

1,000

1,062

Washington Health Care Facilities Auth. Rev. (Providence Health Systems Proj.) Series A, 5.5% 10/1/12 (MBIA Insured)

Aaa

5,455

5,763

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

Washington - continued

Washington Pub. Pwr. Supply Sys. Nuclear Proj. #1 Rev.:

(Bonneville Pwr. Administration Proj.) Series B, 7% 7/1/08

Aa1

$ 1,000

$ 1,161

Series A, 7% 7/1/08

Aa1

500

580

Series B, 5.125% 7/1/13

Aa1

10,000

10,155

5.75% 7/1/10 (MBIA Insured)

Aaa

5,000

5,378

Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev.:

(Bonneville Pwr. Administration Proj.) Series B, 5.625% 7/1/12 (MBIA Insured) (Pre-Refunded to 7/1/03 @ 102) (f)

Aaa

6,500

6,930

Series A:

0% 7/1/11 (MBIA Insured)

Aaa

1,350

829

5.125% 7/1/11 (FSA Insured)

Aaa

10,420

10,826

5.9% 7/1/04

Aa1

2,850

3,034

6% 7/1/05 (AMBAC Insured)

Aaa

2,165

2,337

6% 7/1/07

Aa1

2,500

2,741

6% 7/1/07 (MBIA Insured)

Aaa

8,500

9,320

Series B, 5.5% 7/1/03

Aa1

3,000

3,125

Series C:

0% 7/1/05

Aa1

16,080

13,650

0% 7/1/05 (MBIA Insured)

Aaa

11,000

9,356

5.4% 7/1/12

Aa1

56,550

59,040

5.55% 7/1/10 (FGIC Insured)

Aaa

31,000

31,882

Washington Pub. Pwr. Supply Sys. Nuclear Proj. #3 Rev.:

Series A, 0% 7/1/12 (MBIA Insured)

Aaa

4,000

2,307

Series B:

0% 7/1/06 (MBIA Insured)

Aaa

5,000

4,051

7.375% 7/1/04

Aa1

490

500

0% 7/1/08 (MBIA Insured)

Aaa

3,000

2,185

0% 7/1/10 (MBIA Insured)

Aaa

2,800

1,820

272,750

West Virginia - 0.7%

Marshall County Poll. Cont. Rev. (Ohio Pwr. Co./Kammer Plant Proj.) Series B, 5.45% 7/1/14 (MBIA Insured)

Aaa

22,650

23,311

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value
(Note 1) (000s)

West Virginia - continued

West Virginia Gen. Oblig. 5.5% 6/1/10
(FSA Insured)

Aaa

$ 5,000

$ 5,389

West Virginia Wtr. Dev. Auth. Infrastructure Rev. Series A, 5.625% 10/1/26 (FSA Insured)

Aaa

5,000

5,133

33,833

Wisconsin - 0.2%

Fond Du Lac School District 5.75% 4/1/16 (FGIC Insured)

-

3,100

3,272

Menomonee Falls Wtr. Sys. Mtg. Rev. 5.875% 12/1/16 (FSA Insured)

Aaa

3,375

3,527

Wisconsin Hsg. & Econ. Dev. Auth. Rev. Series F, 5.2% 9/1/26 (e)

Aa2

1,415

1,416

8,215

Wyoming - 0.2%

Gillette Spl. Purp. Wtr. & Swr. Utils. Sys. Rev. 7.7% 12/1/10 (Escrowed to Maturity) (f)

Aaa

5,465

6,684

Wyoming Farm Ln. Board Cap. Facs. Rev. 0% 10/1/05 (Escrowed to Maturity) (f)

AA-

3,995

3,390

10,074

TOTAL MUNICIPAL BONDS

(Cost $4,382,507)

4,606,034

Municipal Notes - 0.9%

Arizona - 0.2%

Maricopa County Indl. Dev. Auth. Indl. Dev. Rev.
(Citizens Communications Co. Proj.)
Series 2001, 4.95% tender 7/12/01, CP mode (e)

5,000

5,000

Mohave County Indl. Dev. Auth. Indl. Dev. Rev.
(Citizens Communications Co. Proj.)
Series 1993 E, 4.95% tender 7/12/01, CP mode (e)

2,300

2,300

Santa Cruz County Indl. Dev. Auth. Indl. Dev. Rev.
(Citizens Communications Co. Proj.)
Series 1988, 4.75% tender 7/20/01, CP mode (e)

2,180

2,180

9,480

Hawaii - 0.2%

Hawaii Dept. of Budget & Fin. Spl. Purp. Mtg. Rev.
(Citizens Communications Co. Proj.) Series 1988 A,
4.75% tender 7/27/01, CP mode (e)

7,000

7,000

Municipal Notes - continued

Principal
Amount (000s)

Value
(Note 1) (000s)

Illinois - 0.1%

Illinois Dev. Fin. Auth. Envir. Facilities Rev.
(Citizens Communications Co. Proj.)
Series 1997, 4.95% tender 7/12/01, CP mode (e)

$ 4,700

$ 4,700

Kentucky - 0.2%

Trimble County Poll. Cont. Rev. (Louisville Gas & Elec. Co. Proj.) Series 1996 A, 5% tender 7/12/01, CP mode

10,000

10,005

Pennsylvania - 0.2%

Berks County Indl. Dev. Auth. Indl. Dev. Rev.
(Citizens Communications Co. Proj.)
Series 1996, 4.95% tender 7/12/01, CP mode (e)

5,400

5,400

Northampton County Indl. Dev. Auth. Rev.
(Citizens Communications Co. Proj.)
Series 1991, 4.95% tender 7/12/01, CP mode (e)

6,200

6,200

11,600

TOTAL MUNICIPAL NOTES

(Cost $42,780)

42,785

TOTAL INVESTMENT PORTFOLIO - 100.2%

(Cost $4,425,287)

4,648,819

NET OTHER ASSETS - (0.2)%

(8,752)

NET ASSETS - 100%

$ 4,640,067

Security Type Abbreviation

CP - COMMERCIAL PAPER

Legend

(a) S&P credit ratings are used in the absence of a rating by Moody's Investors Service, Inc.

(b) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

(c) Security purchased on a delayed delivery or when-issued basis.

(d) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(f) Security collateralized by an amount sufficient to pay interest and principal.

Other Information

The composition of long-term debt holdings as a percentage of total value of investments in securities, is as follows (ratings are unaudited):

Moody's Ratings

S&P Ratings

Aaa, Aa, A

88.0%

AAA, AA, A

88.8%

Baa

6.1%

BBB

5.6%

Ba

0.1%

BB

0.0%

B

0.0%

B

0.0%

Caa

0.0%

CCC

0.0%

Ca, C

0.0%

CC, C

0.0%

D

0.0%

The percentage not rated by Moody's or S&P amounted to 1%.

The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows:

General Obligations

28.2%

Electric Utilities

16.7

Transportation

12.2

Health Care

11.5

Water & Sewer

9.4

Escrowed/Pre-Refunded

6.7

Special Tax

6.3

Education

5.3

Others* (individually less than 5%)

3.7

100.0%

* Includes net other assets.

Purchases and sales of securities, other than short-term securities, aggregated $1,445,683,000 and $1,228,245,000, respectively.

Income Tax Information

At June 30, 2001, the aggregate cost of investment securities for income tax purposes was $4,421,376,000. Net unrealized appreciation aggregated $227,443,000, of which $233,191,000 related to appreciated investment securities and $5,748,000 related to depreciated investment securities.

At December 31, 2000, the fund had a capital loss carryforward of approximately $27,140,000 of which $9,591,000, $7,601,000 and $9,948,000 will expire on December 31, 2001, 2002 and 2004, respectively. All of the loss carryforwards were acquired in fund mergers and are available to offset future capital gains of the fund to the extent provided by regulations.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)

June 30, 2001 (Unaudited)

Assets

Investment in securities, at value (cost $4,425,287) -
See accompanying schedule

$ 4,648,819

Cash

14

Receivable for investments sold

37,188

Receivable for fund shares sold

4,567

Interest receivable

68,651

Other receivables

212

Total assets

4,759,451

Liabilities

Payable for investments purchased
Regular delivery

$ 31,390

Delayed delivery

78,161

Payable for fund shares redeemed

2,413

Distributions payable

5,541

Accrued management fee

1,441

Other payables and accrued expenses

438

Total liabilities

119,384

Net Assets

$ 4,640,067

Net Assets consist of:

Paid in capital

$ 4,434,610

Undistributed net investment income

774

Accumulated undistributed net realized
gain (loss) on investments

(18,849)

Net unrealized appreciation (depreciation) on investments

223,532

Net Assets, for 363,687 shares outstanding

$ 4,640,067

Net Asset Value, offering price and redemption price per share ($4,640,067 ÷ 363,687 shares)

$12.76

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements - continued

Statement of Operations

Amounts in thousands

Six months ended June 30, 2001 (Unaudited)

Investment Income

Interest

$ 121,097

Expenses

Management fee

$ 8,611

Transfer agent fees

1,700

Accounting fees and expenses

334

Non-interested trustees' compensation

10

Custodian fees and expenses

37

Registration fees

91

Audit

24

Legal

11

Total expenses before reductions

10,818

Expense reductions

(1,326)

9,492

Net investment income

111,605

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on investment securities

18,589

Change in net unrealized appreciation (depreciation) on investment securities

2,409

Net gain (loss)

20,998

Net increase (decrease) in net assets resulting
from operations

$ 132,603

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

Amounts in thousands

Six months ended
June 30, 2001
(Unaudited)

One month ended
December 31,
2000

Year ended
November 30,
2000

Increase (Decrease) in Net Assets

Operations
Net investment income

$ 111,605

$ 18,613

$ 214,026

Net realized gain (loss)

18,589

587

4,420

Change in net unrealized
appreciation (depreciation)

2,409

104,286

107,794

Net increase (decrease) in net assets resulting from operations

132,603

123,486

326,240

Distributions to shareholders
From net investment income

(110,762)

(18,541)

(213,926)

From net realized gain

-

(1,053)

(2,068)

Total distributions

(110,762)

(19,594)

(215,994)

Share transactions
Net proceeds from sales of shares

487,671

86,173

714,961

Reinvestment of distributions

76,607

13,515

147,836

Cost of shares redeemed

(410,095)

(52,354)

(885,681)

Net increase (decrease) in net assets resulting from share transactions

154,183

47,334

(22,884)

Redemption fees

13

-

-

Total increase (decrease) in net assets

176,037

151,226

87,362

Net Assets

Beginning of period

4,464,030

4,312,804

4,225,442

End of period (including under (over) distribution of net investment income of $774, $(69) and $617, respectively)

$ 4,640,067

$ 4,464,030

$ 4,312,804

Other Information

Shares

Sold

38,188

6,868

59,087

Issued in reinvestment of distributions

6,015

1,064

12,201

Redeemed

(32,130)

(4,154)

(73,506)

Net increase (decrease)

12,073

3,778

(2,218)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

Six months ended June 30, 2001

Years ended
December 31,

Selected Per-Share Data

(Unaudited)

2000 G

2000 H

1999 H

1998 H

1997 H

1996 H

Net asset value, beginning of period

$ 12.700

$ 12.400

$ 12.070

$ 12.850

$ 12.610

$ 12.430

$ 12.300

Income from Investment Operations
Net investment income

.312 D, I

.053 D

.626 D

.595

.607

.607

.648 F

Net realized and unrealized gain (loss)

.057 I

.303

.337

(.773)

.320

.235

.109

Total from investment operations

.369

.356

.963

(.178)

.927

.842

.757

Less Distributions

From net investment income

(.309)

(.053)

(.627)

(.595)

(.607)

(.632) F

(.623)

From net realized gain

-

(.003)

(.006)

(.007)

(.080)

(.030)

(.004)

Total distributions

(.309)

(.056)

(.633)

(.602)

(.687)

(.662)

(.627)

Redemption fees added to paid in capital

.000

-

-

-

-

-

-

Net asset value, end of period

$ 12.760

$ 12.700

$ 12.400

$ 12.070

$ 12.850

$ 12.610

$ 12.430

Total Return B, C

2.94%

2.87%

8.24%

(1.44)%

7.54%

7.02%

6.39%

Ratios and Supplemental Data

Net assets, end of period (in millions)

$ 4,640

$ 4,464

$ 4,313

$ 4,225

$ 4,634

$ 2,320

$ 1,837

Ratio of expenses to average net assets

.48% A

.47% A

.48%

.49%

.53%

.55%

.56%

Ratio of expenses to average net assets after all expense reductions

.42% A, E

.42% A, E

.48%

.49%

.53%

.55%

.56%

Ratio of net investment income to average net assets

4.93% A, I

4.98% A

5.17%

4.77%

4.75%

4.92%

5.32%

Portfolio turnover rate

56% A

4% A

26%

28%

25%

31%

53%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Net investment income per share has been calculated based on average shares outstanding during the period.

E FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses.

F Net Investment income per share in 1996 reflects a payment from an issuer in bankruptcy which was distributed in 1997.

G For the one month ended December 31, 2000

H For the year ended November 30

I Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The effect of this change during the period was to increase net investment income per share by $.002 and decrease net realized and unrealized gain (loss) per share by $.002. Without this change the Ratio of net investment income to average net assets would have been 4.89%. Per share, ratios and supplemental data for prior periods have not been restated to reflect this change in presentation.

See accompanying notes which are an integral part of the financial statements.

Notes to Financial Statements

For the period ended June 30, 2001 (Unaudited)

1. Significant Accounting Policies.

Spartan Municipal Income Fund (the fund) is a fund of Fidelity Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Security Valuation. The fund calculates its net asset value per share as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern Time. Securities are valued based upon a computerized matrix system and/or appraisals by a pricing service, both of which consider market transactions and dealer-supplied valuations. Securities (including restricted securities) for which quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost or original cost plus accrued interest, both of which approximate current value. Investments in open-end investment companies are valued at their net asset value each business day.

Income Taxes. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the fund is not subject to income taxes to the extent that it distributes all of its taxable income for its fiscal year. The Schedule of Investments includes information regarding income taxes, if any, under the caption "Income Tax Information."

Investment Income. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Distributions to Shareholders. Distributions are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date.

Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences, which may result in distribution reclassifications, are primarily due to differing treatments for futures transactions, market discount, capital loss carryforwards, expiring capital loss carryforwards and losses deferred due to wash sales and futures transactions.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Distributions to Shareholders - continued

Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Undistributed net investment income and accumulated undistributed net realized gain (loss) on investments may include temporary book and tax basis differences which will reverse in a subsequent period. Any taxable gain remaining at fiscal year end is distributed in the following year.

Short-Term Trading (Redemption) Fees. Shares purchased after April 16, 2001 and held in the fund less than 30 days are subject to a short-term trading fee equal to .50% of the proceeds of the redeemed shares. The fee, which is retained by the fund, is accounted for as an addition to paid in capital.

Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost.

Change in Accounting Principle. Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The cumulative effect of this accounting change had no impact on total net assets of the fund, but resulted in a $3,448,000 increase to the cost of securities held and a corresponding increase to accumulated net undistributed realized gain (loss), based on securities held by the fund on January 1, 2001.

The effect of this change during the period, was to increase net investment income by $746,000; decrease net unrealized appreciation/depreciation by $698,000, and decrease net realized gain (loss) by $48,000. The Statement of Changes in net assets and financial highlights for the prior periods have not been restated to reflect this change in presentation.

2. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is "marked to market" daily and equivalent deliverable securities are held for the transaction. The values of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. Fees and Other Transactions with Affiliates.

Management Fee. As the fund's investment adviser, Fidelity Management & Research Company (FMR) receives a monthly fee that is calculated on the basis of a group fee rate plus a fixed individual fund fee rate applied to the average net assets of the fund. The group fee rate is the weighted average of a series of rates and is based on the monthly average net assets of all the mutual funds advised by FMR. The rates ranged from .0920% to .3700% for the period. The annual individual fund fee rate is .25%. In the event that these rates were lower than the contractual rates in effect during the period, FMR voluntarily implemented the above rates, as they resulted in the same or a lower management fee. For the period, the management fee was equivalent to an annualized rate of .38% of average net assets.

Sub-Adviser Fee. As the fund's investment sub-adviser, Fidelity Investments Money Management, Inc.(FIMM), an affiliate of FMR, receives a fee from FMR of 50% of the management fee payable to FMR. The fee is paid prior to any voluntary expense reimbursements which may be in effect.

Transfer Agent and Accounting Fees. Citibank, N.A.(Citibank) is the custodian, transfer agent and shareholder servicing agent for the fund. Citibank has entered into a sub-contract with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the fund's transfer and shareholder servicing agent and accounting functions. The fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.

For the period, the transfer agent fees were equivalent to an annualized rate of .08% of average net assets.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Expense Reductions.

Through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and transfer agent expenses by $37,000 and $1,289,000 respectively.

Semiannual 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
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1-800-544-5555

Press

1   For mutual fund and brokerage trading.

2   For quotes.*

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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.

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www.fidelity.com

If you are not currently on the Internet, call EarthLink Sprint at 1-800-288-2967, and be sure to ask for registration number SMD004 to receive a special Fidelity package that includes 30 days of free Internet access. EarthLink is North America's #1 independent Internet access provider.

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Fidelity On-line Xpress+®

Fidelity On-line Xpress+ software for Windows combines comprehensive portfolio management capabilities, securities trading and access to research and analysis tools . . . all on your desktop. Call Fidelity at 1-800-544-0240 or visit our web site for more information on how to manage your investments via your PC.

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.

Semiannual Report

To Visit Fidelity

For directions and hours,
please call 1-800-544-9797.

Arizona

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Scottsdale, AZ

California

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Brea, CA

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Campbell, CA

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Glendale, CA

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Irvine, CA

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Los Angeles, CA

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Colorado

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Connecticut

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Delaware

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Maine

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Burlington, MA

416 Belmont Street
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Semiannual Report

Michigan

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Birmingham, MI

29155 Northwestern Hwy.
Southfield, MI

Minnesota

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Missouri

700 West 47th Street
Kansas City, MO

8885 Ladue Road
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New Jersey

150 Essex Street
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56 South Street
Morristown, NJ

501 Route 17, South
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New York

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North Carolina

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Utah

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Virginia

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Wisconsin

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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Adviser

Fidelity Investments Money
Management, Inc.

Officers

Edward C. Johnson 3d, President

Abigail P. Johnson, Senior Vice President

Dwight D. Churchill, Vice President

Stanley N. Griffith, Assistant Vice President

David L. Murphy, Vice President

George A. Fischer, Vice President

Eric D. Roiter, Secretary

Robert A. Dwight, Treasurer

Maria F. Dwyer, Deputy Treasurer

John H. Costello, Assistant Treasurer

Paul F. Maloney, Assistant Treasurer

Thomas J. Simpson, Assistant Treasurer

Board of Trustees

J. Michael Cook *

Ralph F. Cox *

Phyllis Burke Davis *

Robert M. Gates *

Abigail P. Johnson

Edward C. Johnson 3d

Donald J. Kirk *

Marie L. Knowles *

Ned C. Lautenbach *

Peter S. Lynch

Marvin L. Mann *

William O. McCoy *

Advisory Board

Robert C. Pozen

William S. Stavropoulos

General Distributor

Fidelity Distributors Corporation

Boston, MA

* Independent trustees

Transfer and Shareholder
Servicing Agent

Citibank N.A.

New York NY

Fidelity Service Company, Inc.

Boston, MA

Custodian

Citibank N.A.

New York NY

Fidelity's Municipal Bond Funds

Spartan® Arizona Municipal Income

Spartan California Municipal Income

Spartan Connecticut Municipal Income

Spartan Florida Municipal Income

Spartan Intermediate Municipal Income

Spartan Maryland Municipal Income

Spartan Massachusetts Municipal Income

Spartan Michigan Municipal Income

Spartan Minnesota Municipal Income

Spartan Municipal Income

Spartan New Jersey Municipal Income

Spartan New York Municipal Income

Spartan Ohio Municipal Income

Spartan Pennsylvania Municipal Income

Spartan Short-Intermediate
Municipal Income

The Fidelity Telephone Connection

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www.fidelity.com

Spartan®

Michigan Municipal Income
Fund

and

Fidelity ®
Michigan Municipal Money
Market Fund

Semiannual Report

June 30, 2001

(2_fidelity_logos)(registered trademark)

Contents

President's Message

<Click Here>

Ned Johnson on investing strategies.

Spartan Michigan Municipal Income Fund

Performance

<Click Here>

How the fund has done over time.

Fund Talk

<Click Here>

The managers' review of fund performance, strategy and outlook.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Fidelity Michigan Municipal Money Market Fund

Performance

<Click Here>

How the fund has done over time.

Fund Talk

<Click Here>

The manager's review of fund performance, strategy and outlook.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months
and one year.

Investments

<Click Here>

A complete list of the fund's investments.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Proxy Voting Results

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For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Semiannual Report

President's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Amid a slowing economy highlighted by frequent corporate earnings disappointments, mounting unemployment and waning consumer confidence, equity investors abandoned expensive, large-cap growth stocks in favor of the current earnings delivered by small- and mid-cap value stocks during the first six months of 2001. Fixed-income investments also offered a measure of stability, as corporate, mortgage and agency securities generally outperformed many popular equity indexes through the mid-point of the year.

While it's impossible to predict the future direction of the markets with any degree of certainty, there are certain basic principles that can help investors plan for their future needs.

The longer your investment time frame, the less likely it is that you will be affected by short-term market volatility. A 10-year investment horizon appropriate for saving for a college education, for example, enables you to weather market cycles in a long-term fund, which may have a higher risk potential, but also has a higher potential rate of return.

An intermediate-length fund could make sense if your investment horizon is two to four years, while a short-term bond fund could be the right choice if you need your money in one or two years.

If your time horizon is less than a year, you might want to consider moving some of your bond investment into a money market fund. These funds seek income and a stable share price by investing in high-quality, short-term investments. Of course, it's important to remember that an investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these types of funds.

Finally, no matter what your time horizon or portfolio diversity, it makes good sense to follow a regular investment plan, investing a certain amount of money in a fund at the same time each month or quarter and periodically reviewing your overall portfolio. By doing so, you won't get caught up in the excitement of a rapidly rising market, nor will you buy all your shares at market highs. While this strategy - known as dollar cost averaging - won't assure a profit or protect you from a loss in a declining market, it should help you lower the average cost of your purchases. Of course, you should consider your financial ability to continue your purchases through periods of low price levels before undertaking such a strategy.

If you have questions, please call us at 1-800-544-6666, or visit our web site at www.fidelity.com. We are available 24 hours a day, seven days a week to provide you the information you need to make the investments that are right for you.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Spartan Michigan Municipal Income Fund

Performance: The Bottom Line

There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). You can also look at the fund's income, as reflected in the fund's yield, to measure performance. If Fidelity had not reimbursed certain fund expenses, the past five year and past 10 year total returns would have been lower.

Cumulative Total Returns

Periods ended June 30, 2001

Past 6
months

Past 1
year

Past 5
years

Past 10
years

Spartan® MI Municipal Income

2.97%

10.11%

34.05%

90.59%

LB Michigan Municipal Bond

3.32%

10.56%

37.77%

n/a*

Michigan Municipal Debt Funds Average

2.45%

9.13%

30.12%

85.72%

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Lehman Brothers Michigan Municipal Bond Index - a market value-weighted index of Michigan investment-grade municipal bonds with maturities of one year or more. To measure how the fund's performance stacked up against its peers, you can compare it to the Michigan municipal debt funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 46 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.

Average Annual Total Returns

Periods ended June 30, 2001

Past 1
year

Past 5
years

Past 10
years

Spartan MI Municipal Income

10.11%

6.04%

6.66%

LB Michigan Municipal Bond

10.56%

6.62%

n/a*

Michigan Municipal Debt Funds Average

9.13%

5.40%

6.38%

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year. (Note: Lipper calculates average annual total returns by annualizing each fund's total return, then taking an arithmetic average. This may produce a different figure than that obtained by averaging the cumulative total returns and annualizing the result.)

* Not available

Semiannual Report

Spartan Michigan Municipal Income Fund
Performance - continued

$10,000 Over 10 Years



$10,000 Over 10 Years: Let's say hypothetically that $10,000 was invested in Spartan Michigan Municipal Income Fund on June 30, 1991. As the chart shows, by June 30, 2001, the value of the investment would have grown to $19,059 - a 90.59% increase on the initial investment. For comparison, look at how the Lehman Brothers Municipal Bond Index - a market value-weighted index of investment-grade municipal bonds with maturities of one year or more - did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $19,967 - a 99.67% increase.

Understanding
Performance

How a fund did yesterday is no guarantee of how it will do tomorrow. Bond prices, for example, generally move in the opposite direction of interest rates. In turn, the share price, return and yield of a fund that invests in bonds will vary. That means if you sell your shares during a market downturn, you might lose money. But if you can ride out the market's ups and downs, you may have a gain.

3

Semiannual Report

Spartan Michigan Municipal Income Fund
Performance - continued

Total Return Components

Six months ended June 30,

Years ended December 31,

2001

2000

1999

1998

1997

1996

Dividend returns

2.45%

5.58%

4.62%

4.91%

5.27%

5.63%

Capital returns

0.52%

5.61%

-7.25%

0.80%

3.75%

-2.25%

Total returns

2.97%

11.19%

-2.63%

5.71%

9.02%

3.38%

Total return components include both dividend returns and capital returns. A dividend return reflects the actual dividends paid by the fund. A capital return reflects both the amount paid by the fund to shareholders as capital gain distributions and changes in the fund's share price. Both returns assume the dividends or capital gains, if any, paid by the fund are reinvested.

Dividends and Yield

Periods ended June 30, 2001

Past 1
month

Past 6
months

Past 1
year

Dividends per share

4.56¢

27.77¢

56.19¢

Annualized dividend rate

4.80%

4.85%

4.94%

30-day annualized yield

4.16%

-

-

30-day annualized tax-equivalent yield

6.79%

-

-

Dividends per share show the income paid by the fund for a set period and do not reflect any tax reclassifications. If you annualize this number, based on an average share price of $11.56 over the past one month, $11.55 over the past six months and $11.38 over the past one year, you can compare the fund's income over these three periods. The 30-day annualized yield is a standard formula for all bond funds based on the yields of the bonds in the fund, averaged over the past 30 days. This figure shows you the yield characteristics of the fund's investments at the end of the period. It also helps you compare funds from different companies on an equal basis. The tax-equivalent yield shows what you would have to earn on a taxable investment to equal the fund's tax-free yield, if you're in the 38.69% combined effective federal and state income tax bracket, but does not reflect the payment of the federal alternative minimum tax, if applicable.

Semiannual Report

Spartan Michigan Municipal Income Fund

Fund Talk: The Manager's Overview

Market Recap

In an effort to kick-start the sputtering U.S. economy, the Federal Reserve Board reduced key short-term interest rates six times during the first half of 2001, lowering the fed funds target rate from 6.50% to 3.75%. While the full effect of these cuts likely won't be felt for several months, they had an immediate impact on the performance of tax-free municipal bonds, particularly those of short and intermediate maturity, which typically benefit in a declining interest-rate environment. The muni market also received a boost given the steady demand from institutional, retail and high-net-worth investors, as well as an encouraging credit upgrade environment. For the overall six-month period ending June 30, 2001, the Lehman Brothers Municipal Bond Index - an index of approximately 40,000 investment-grade, fixed-rate, tax-exempt bonds, gained 2.88%. As is often the case in financial markets, some of the good news was offset by several factors. In April, for instance, the $25 billion downgrade of California's general obligation bonds - the largest muni downgrade on record - tempered performance. Additionally, as interest rates continued to trend downward, so did the prices of long-term munis. Also, President Bush's newly enacted tax program raised moderate concerns about higher muni supply and lower muni demand going forward.

(Portfolio Manager photograph)
An interview with George Fischer, Portfolio Manager of Spartan Michigan Municipal Income Fund

Q. How did the fund perform, George?

A. For the six-month period that ended June 30, 2001, the fund had a total return of 2.97%. To get a sense of how the fund did relative to its competitors, the Michigan municipal debt funds average returned 2.45% for the same six-month period, according to Lipper Inc. Additionally, the Lehman Brothers Michigan Municipal Bond Index, which tracks the types of securities in which the fund invests, returned 3.32%. For the 12-month period that ended June 30, 2001, the fund had a total return of 10.11%. In comparison, the Michigan municipal debt funds average returned 9.13% and the Lehman Brothers index returned 10.56% for the same 12-month period.

Q. What factors characterized the investing environment during the past six months, and how did they affect the fund's performance?

A. Falling interest rates and balanced supply and demand conditions helped municipal bonds rally and boost the fund's returns. The Federal Reserve Board, looking to stimulate spending and prevent a recession, cut short-term rates six times in as many months from January through June, by a combined total of 2.75 percentage points, pushing bond yields lower and their prices higher. Favorable supply and demand conditions also boosted the market. The supply of Michigan municipals increased somewhat throughout the period, although demand remained reasonably strong as investors sought out alternatives to the wobbly stock market. The fund's total return for the period reflects the combination of price gains or losses plus the income generated by its holdings.

Semiannual Report

Spartan Michigan Municipal Income Fund

Fund Talk: The Manager's Overview - continued

Q. Which strategies worked in the fund's favor during the past six months?

A. The fund's fairly even diversification among bonds with various maturities was a positive contributor to performance. Long-maturity bonds of many types - including municipals - underperformed because inflation crept slightly higher, and there were growing concerns that lower interest rates could cause price increases in the future. By spreading the fund's investments among short-, intermediate- and long-term bonds, the fund benefited from this "steepening" of the yield curve. That said, the fund's stake in long-maturity bonds proved disappointing during the period.

Q. Were there any sectors that performed better or worse than others?

A. Yes, there were. After posting dismal results in 2000, many hospital bonds performed well in the first half of 2001 thanks to cost cutting, price increases and higher insurance reimbursements. These positive developments helped many of the fund's health care holdings. On the flip side, municipal bonds backed by a given corporation - known as industrial development bonds - generally performed poorly as corporate profits eroded. The fund owned only a few corporate-backed muni bonds early in the period, which I later sold.

Q. What changes, if any, did you make to the fund's investments in response to the weakening economy?

A. I didn't really make any major changes. Last year, I anticipated the economic weakness and I approached the market fairly cautiously in terms of credit quality. The economy had been good for so long that it was easy to get lulled into complacency. However, I maintained the fund's emphasis on bonds with higher credit ratings by having nearly 97% of the fund's investments in investment-grade bonds rated A or higher by Moody's or Standard & Poor's®. I also tilted the fund's investments toward essential services bonds, such as those issued by water, sewer and electric utility entities. Their revenues, which come in the form of fees and tolls, tend to be more stable in a slowing economy compared to general obligation bonds (GOs), which are backed by sales, income and other taxes.

Q. What's ahead for the municipal market and the fund?

A. The Fed continues to state that it's far more worried about a possible recession than it is about potential inflation. Given that, many observers are expecting rates to come down from current levels. If that's the case, municipal bonds could benefit. From a valuation standpoint, municipals remain attractive relative to U.S. Treasury securities, which could continue to fuel demand. A Aaa-rated general obligation bond issued by the state of Michigan offered a tax-equivalent yield of more than 8.00% at the end of June, compared with the 30-year Treasury bond that carried a yield of about 5.75%. Attractive prices and relatively high tax-free yields could bode well for continued strong demand for municipals, ultimately aiding their performance.

Semiannual Report

Spartan Michigan Municipal Income Fund

Fund Talk: The Manager's Overview - continued

The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Fund Facts

Goal: high current income for Michigan residents by normally investing in investment-grade securities whose interest is free from federal income tax and Michigan personal income tax

Fund number: 081

Trading symbol: FMHTX

Start date: November 12, 1985

Size: as of June 30, 2001, more than $481 million

Manager: George Fischer, since 2000; manager, various Fidelity and Spartan municipal income funds; joined Fidelity in 1989

3

George Fischer on the weaker economy's effect on Michigan's municipal issuers:

"Weakening economic conditions have forced most states - including Michigan - and municipalities to re-evaluate their current budgets and assumptions about the future. A slowing economy has curtailed tax receipts - including key revenues such as corporate taxes, personal income taxes and sales taxes. Furthermore, the stock market's weakness has cut into revenue generated by taxes on stock-option profits and capital gains. This financial pinch has been exacerbated by rising expenses, particularly health care and education costs. Just a short time after enjoying surpluses, many issuers in Michigan and across the state and nation now are being forced to consider cutting spending on a wide range of programs.

"As a manager of municipal bond funds, my job is to monitor the economy's ebbs and flows to determine how they'll affect revenue collections. So far, I think that the issuers of bonds in which the fund invests have done a decent job of dealing with slower revenue growth. But, as always, I'll keep a close eye on these developments, looking for problems stemming from a slower economy."

Semiannual Report

Spartan Michigan Municipal Income Fund

Investment Changes

Top Five Sectors as of June 30, 2001

% of fund's
net assets

% of fund's net assets
6 months ago

General Obligations

26.8

25.5

Escrowed/Pre-Refunded

19.4

13.1

Health Care

15.6

16.9

Electric Utilities

8.6

8.2

Water & Sewer

8.0

7.1

Average Years to Maturity as of June 30, 2001

6 months ago

Years

12.9

13.6

Average years to maturity is based on the average time remaining until principal payments are expected from each of the fund's bonds, weighted by dollar amount.

Duration as of June 30, 2001

6 months ago

Years

6.6

6.4

Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example.

Quality Diversification (Moody's Ratings)

As of June 30, 2001

As of December 31, 2000

Aaa 70.7%

Aaa 64.5%

Aa, A 26.2%

Aa, A 31.8%

Baa 1.7%

Baa 2.2%

Not Rated 1.4%

Not Rated 1.5%



Where Moody's ratings are not available, we have used S&P ratings. Amounts shown are as a percentage of the fund's investments.

Semiannual Report

Spartan Michigan Municipal Income

Investments June 30, 2001

(Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 98.1%

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Michigan - 97.6%

Anchor Bay School District:

(School Bldg. & Site Proj.) Series II:

5.7% 5/1/25 (FGIC Insured)

Aaa

$ 1,250,000

$ 1,299,288

5.75% 5/1/30 (FGIC Insured)

Aaa

5,625,000

5,870,588

4.75% 5/1/26 (FGIC Insured)

Aaa

2,250,000

2,056,973

Bay City Gen. Oblig. (Street Impt. Proj.) 0% 6/1/15 (AMBAC Insured)

Aaa

1,725,000

842,680

Brighton Area School District Series II, 0% 5/1/15 (AMBAC Insured)

Aaa

10,000,000

4,906,100

Caladonia Cmnty. Schools:

4.75% 5/1/22 (FGIC Insured)

Aaa

2,095,000

1,940,494

5.5% 5/1/26 (FGIC Insured)

Aaa

3,000,000

3,061,170

Clarkston Cmnty. Schools 5.55% 5/1/10 (FGIC Insured) (Pre-Refunded to 5/1/05 @ 101) (d)

Aaa

2,600,000

2,804,022

Clintondale Cmnty. Schools 5.5% 5/1/15

Aa1

2,205,000

2,272,892

Comstock Pub. Schools 0% 5/1/05 (FSA Insured)

Aaa

1,300,000

1,119,053

Crawford Ausable School District Series 2001, 5.625% 5/1/18

Aaa

1,100,000

1,147,916

Davison Cmnty. School District 5.375% 5/1/16 (FGIC Insured)

Aaa

1,000,000

1,021,980

Detroit Convention Facilities Rev. (Cobo Hall Expansion Proj.) 5.25% 9/30/12

A

12,700,000

12,769,215

Detroit Gen. Oblig. (Distributable State Aid Proj.):

5.2% 5/1/07 (AMBAC Insured)

Aaa

4,000,000

4,231,240

5.25% 5/1/09 (AMBAC Insured)

Aaa

4,500,000

4,778,595

Detroit Swr. Disp. Rev.:

Series 1993 A, 5.7% 7/1/23
(Pre-Refunded to 7/17/03 @ 102) (d)

Aaa

1,000,000

1,068,180

Series 1997 A, 6% 7/1/06 (MBIA Insured)

Aaa

2,100,000

2,293,557

Series A:

0% 7/1/14 (FGIC Insured)

Aaa

3,730,000

1,932,103

5.75% 7/1/26 (FGIC Insured)

Aaa

10,000,000

10,503,100

Series B, 6.25% 7/1/07 (MBIA Insured)

Aaa

1,130,000

1,261,521

Detroit Wtr. Supply Sys. Rev.:

Series A:

5.5% 7/1/15 (FGIC Insured)

Aaa

3,675,000

3,846,402

5.75% 7/1/26 (FGIC Insured)
(Pre-Refunded to 1/1/10 @ 101) (d)

Aaa

3,400,000

3,773,762

5.875% 7/1/29 (FGIC Insured) (Pre-Refunded to 1/1/10 @ 101) (d)

Aaa

3,000,000

3,356,250

Series B, 5.5% 7/1/33 (FGIC Insured)

Aaa

4,000,000

4,040,520

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Michigan - continued

Detroit Wtr. Supply Sys. Rev.: - continued

6.2% 7/1/04 (FGIC Insured)

Aaa

$ 3,795,000

$ 3,983,080

6.5% 7/1/15 (FGIC Insured)

Aaa

6,000,000

6,989,520

East Grand Rapids Pub. School District 5.5% 5/1/17 (b)

Aaa

1,690,000

1,750,063

Eastern Michigan Univ. Revs.:

Series 2000 B:

5.5% 6/1/20 (FGIC Insured)

Aaa

2,230,000

2,283,877

5.625% 6/1/30 (FGIC Insured)

Aaa

1,250,000

1,286,750

5.9% 6/1/02 (AMBAC Insured)

Aaa

1,000,000

1,028,860

Ecorse Pub. School District 5.5% 5/1/27
(FGIC Insured)

Aaa

430,000

435,977

Fowlerville Cmnty. School District 4.75% 5/1/26 (FSA Insured)

Aaa

2,500,000

2,285,525

Grand Rapids Downtown Dev. Auth. Tax Increment Rev. 0% 6/1/11 (MBIA Insured)

Aaa

3,160,000

1,977,086

Grand Rapids Wtr. Supply Sys. 5.75% 1/1/11 (FGIC Insured)

Aaa

2,000,000

2,198,580

Greater Detroit Resource Recovery Auth. Rev.:

Series A, 6.25% 12/13/05 (AMBAC Insured)

Aaa

4,000,000

4,379,760

Series B, 6.25% 12/13/05 (AMBAC Insured)

Aaa

2,000,000

2,189,880

Hamilton Cmnty. Schools District 5% 5/1/24 (FGIC Insured)

Aaa

1,500,000

1,444,605

Hastings School District 5.625% 5/1/18 (FGIC Insured) (Pre-Refunded to 5/1/05 @ 101) (d)

Aaa

485,000

524,343

Holt Pub. Schools Series 2000 A, 5.5% 5/1/23 (FGIC Insured)

Aaa

2,375,000

2,416,705

Howell Pub. Schools:

0% 5/1/10 (AMBAC Insured)

Aaa

1,130,000

749,924

6% 5/1/25 (MBIA Insured) (Pre-Refunded to 5/1/07 @ 100) (d)

Aaa

80,000

88,582

Huron School District 5.625% 5/1/16 (FSA Insured)

Aaa

1,050,000

1,104,884

Huron Valley School District:

0% 5/1/10 (FGIC Insured)

Aaa

2,500,000

1,659,125

0% 5/1/11 (FGIC Insured)

Aaa

5,830,000

3,661,998

0% 5/1/12 (FGIC Insured)

Aaa

1,420,000

839,163

0% 5/1/20 (FGIC Insured)
(Pre-Refunded to 5/1/06 @ 36.7422) (d)

Aaa

9,000,000

2,726,820

Imlay City Cmnty. School District (School Bldg. and Site Proj.) 0% 5/1/06 (FGIC Insured)

Aaa

1,375,000

1,129,411

Jonesville Cmnty. Schools 5.75% 5/1/17
(FGIC Insured)

Aaa

1,150,000

1,206,787

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Michigan - continued

Kent Hosp. Fin. Auth. Hosp. Facilities Rev.:

(Butterworth Hosp. Proj.) Series A, 7.25% 1/15/13

Aa3

$ 3,685,000

$ 4,384,782

(Spectrum Health Proj.) Series A:

5.375% 1/15/11

Aa3

2,420,000

2,510,484

5.375% 1/15/12

Aa3

2,505,000

2,584,659

Lake Orion Cmnty. School District Series A, 5.85% 5/1/16 (FGIC Insured)

Aaa

3,840,000

4,107,878

Lakeshore Pub. Schools (Berrien County Proj.) 6.8% 5/1/06 (MBIA Insured)

Aaa

1,000,000

1,128,790

Lansing Bldg. Auth. Rev. 0% 6/1/12
(AMBAC Insured)

Aaa

3,000,000

1,765,710

Livonia Pub. School District 5.875% 5/1/25 (FGIC Insured)

Aaa

7,000,000

7,397,740

Lowell Area Schools 0% 5/1/15 (FGIC Insured) (Pre-Refunded to 5/1/05 @ 49.0888) (d)

Aaa

11,375,000

4,830,166

Manistee Area Pub. Schools:

5.875% 5/1/24 (FGIC Insured)
(Pre-Refunded to 5/1/09 @ 100) (d)

Aaa

1,700,000

1,889,261

5.9% 5/1/29 (FGIC Insured)
(Pre-Refunded to 5/1/09 @ 100) (d)

Aaa

1,250,000

1,391,225

Marquette City Hosp. Fin. Auth. Rev. (Marquette Gen. Hosp. Proj.) Series D, 5.875% 4/1/11 (FSA Insured)

Aaa

2,750,000

2,972,750

Michigan Bldg. Auth. Rev.:

(Facilities Prog.):

Series 2001 I, 5.5% 10/15/07 (b)

Aa1

3,850,000

4,156,075

Series I, 5.5% 10/15/09 (b)

Aa1

5,000,000

5,407,600

Series I:

0% 10/1/01 (Escrowed to Maturity) (d)

Aaa

1,000,000

993,310

0% 10/1/02 (Escrowed to Maturity) (d)

Aaa

2,000,000

1,927,100

0% 10/1/04 (Escrowed to Maturity) (d)

Aaa

6,820,000

6,067,959

6.25% 10/1/20

Aa2

1,500,000

1,536,615

Series II, 6.75% 10/1/11

Aa2

1,000,000

1,026,400

Michigan Comprehensive Trans. Rev. Series B, 5.75% 5/15/04

Aa3

1,275,000

1,327,046

Michigan Gen. Oblig. (College Savings Prog.) 0% 8/1/01

Aa1

1,045,000

1,042,701

Michigan Hosp. Fin. Auth. Rev.:

(Ascension Health Cr. Proj.) Series A:

5.75% 11/15/18 (MBIA Insured)

Aaa

5,000,000

5,109,600

6% 11/15/19 (MBIA Insured)

Aaa

17,000,000

17,910,851

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Michigan - continued

Michigan Hosp. Fin. Auth. Rev.: - continued

(Crittenton Hosp. Proj.) Series A, 5.25% 3/1/14

A1

$ 6,520,000

$ 6,449,714

(Daughters of Charity Health Sys. Proj.):

5.5% 11/1/05 (Escrowed to Maturity) (d)

Aa2

2,350,000

2,463,670

7% 11/1/21 (Pre-Refunded to 11/1/01
@ 102) (d)

Aa2

1,000,000

1,033,560

(Detroit Med. Ctr. Oblig. Group Proj.)
Series A, 6.5% 8/15/18

Baa3

6,000,000

5,569,380

(Genesys Health Sys. Proj.):

Series 1995 A, 8.125% 10/1/21 (Pre-Refunded to 10/1/05 @ 102) (d)

AAA

5,400,000

6,414,444

Series A, 7.5% 10/1/27
(Pre-Refunded to 10/1/05 @ 100) (d)

AAA

5,875,000

6,747,908

(Genesys Reg'l. Med. Hosp. Proj.) Series A, 5.3% 10/1/11 (Escrowed to Maturity) (d)

Aaa

1,000,000

1,053,950

(McLaren Oblig. Group Proj.) Series A, 5.375% 10/15/13

A1

9,250,000

9,269,888

(Mercy Health Svcs. Proj.):

Series 1996 R, 5.375% 8/15/26
(AMBAC Insured) (Escrowed to Maturity) (d)

Aaa

2,500,000

2,535,825

Series Q:

5.25% 8/15/10 (AMBAC Insured) (Escrowed to Maturity) (d)

Aaa

2,195,000

2,305,606

5.375% 8/15/26 (AMBAC Insured) (Escrowed to Maturity) (d)

Aaa

2,450,000

2,485,109

6% 8/15/08 (AMBAC Insured) (Escrowed to Maturity) (d)

Aaa

1,130,000

1,239,102

6% 8/15/10 (AMBAC Insured) (Escrowed to Maturity) (d)

Aaa

1,265,000

1,375,510

Series R, 5.375% 8/15/16 (AMBAC Insured) (Escrowed to Maturity) (d)

Aaa

2,500,000

2,585,425

(Presbyterian Villages Proj.):

6.4% 1/1/15

-

1,000,000

939,840

6.5% 1/1/25

-

1,225,000

1,129,340

(Saint John Hosp. & Med. Ctr. Proj.) Series A:

6% 5/15/08 (AMBAC Insured)
(Escrowed to Maturity) (d)

Aaa

1,615,000

1,799,869

6% 5/15/09 (AMBAC Insured)
(Escrowed to Maturity) (d)

Aaa

1,710,000

1,915,388

(Sisters of Mercy Proj.) Series P, 5.375% 8/15/14 (MBIA Insured)
(Escrowed to Maturity) (d)

Aaa

570,000

594,567

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Michigan - continued

Michigan Hosp. Fin. Auth. Rev.: - continued

(Trinity Health Proj.) Series 2000 A, 6% 12/1/27

Aa3

$ 1,535,000

$ 1,569,261

Michigan Hsg. Dev. Auth. Rental Hsg. Rev.
Series B, 5.8% 4/1/19

AA-

4,650,000

4,738,071

Michigan Hsg. Dev. Auth. Single Family Mtg. Rev.:

Series A:

5.15% 12/1/26 (AMBAC Insured) (c)

Aaa

1,305,000

1,305,653

6.8% 12/1/16

AA+

485,000

499,894

Series C:

5.95% 12/1/14

AA+

2,500,000

2,613,350

6% 12/1/16

AA+

2,500,000

2,600,725

Michigan Muni. Bond Auth. Rev.:

(Clean Wtr. Revolving Fund Proj.) 5.625% 10/1/13

Aa1

2,000,000

2,136,240

(Local Govt. Ln. Prog.):

Series A:

0% 12/1/04 (FGIC Insured)

Aaa

2,000,000

1,761,720

0% 12/1/05 (FGIC Insured)

Aaa

1,855,000

1,559,721

0% 12/1/06 (FGIC Insured)

Aaa

5,000,000

4,010,950

0% 12/1/07 (FGIC Insured)

Aaa

5,340,000

4,069,721

4.75% 12/1/09 (FGIC Insured)

Aaa

6,000,000

6,008,160

Series CA, 0% 6/15/13 (FSA Insured)

Aaa

2,000,000

1,106,280

7.5% 11/1/09 (AMBAC Insured)

Aaa

65,000

66,132

(Pooled Ln. Prog.) Series B, 5.625% 10/1/19

Aaa

2,500,000

2,575,025

Michigan Pub. Pwr. Agcy. Rev. (Belle River Proj.) Series A, 5.25% 1/1/18

A1

10,000,000

10,015,700

Michigan South Central Pwr. Agcy. Supply Sys. Rev.:

5% 11/1/09 (AMBAC Insured)

Aaa

1,675,000

1,680,025

5.9% 11/1/06 (MBIA Insured)

Aaa

4,510,000

4,940,660

Michigan State Univ. Rev. Series A, 6.25% 8/15/15 (Pre-Refunded to 8/15/02 @ 101) (d)

Aa2

3,145,000

3,292,563

Michigan Strategic Fund Ltd. Oblig. Rev.:

(Detroit Edison Co. Proj.):

Series A, 5.55% 9/1/29 (MBIA Insured) (c)

Aaa

1,000,000

1,011,060

Series AA, 6.4% 9/1/25 (MBIA Insured)

Aaa

5,000,000

5,363,800

Series BB:

6.5% 2/15/16 (FGIC Insured)

Aaa

1,250,000

1,290,538

7% 7/15/08 (MBIA Insured)

Aaa

2,000,000

2,335,340

7% 5/1/21 (AMBAC Insured)

Aaa

8,500,000

10,500,390

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Michigan - continued

Michigan Strategic Fund Ltd. Oblig. Rev.: - continued

(Envir. Research Institute Proj.):

6.25% 8/15/06 (Pre-Refunded to 8/15/02 @ 101) (d)

-

$ 2,660,000

$ 2,781,801

6.375% 8/15/12 (Pre-Refunded to 8/15/02 @ 101) (d)

-

1,770,000

1,853,456

Michigan Trunk Line:

Series 1992 A:

5.5% 10/1/21

Aa3

2,520,000

2,535,347

5.5% 10/1/21 (Pre-Refunded to 10/1/02 @ 100) (d)

Aa3

7,230,000

7,463,963

Series A:

0% 10/1/11 (AMBAC Insured)

Aaa

3,630,000

2,235,681

5.5% 11/1/16

Aa3

7,000,000

7,463,050

5.75% 10/1/04

Aa3

3,395,000

3,564,003

Michigan Underground Storage Tank Fin. Assurance Auth. Rev. Series I, 6% 5/1/06 (AMBAC Insured)

Aaa

5,000,000

5,460,150

Mona Shores School District School Bldg. & Site 6.75% 5/1/10 (FGIC Insured)

Aaa

2,220,000

2,611,097

Mount Clemens Cmnty. School District 0% 5/1/17 (MBIA Insured) (Pre-Refunded to 5/1/07 @ 50.5287) (d)

Aaa

5,000,000

1,981,200

Muskegon Heights Wtr. Sys. Rev. Series 2000 A:

5.625% 11/1/20 (MBIA Insured)

Aaa

1,000,000

1,039,500

5.625% 11/1/30 (MBIA Insured)

Aaa

1,500,000

1,545,750

Okemos Pub. School District:

0% 5/1/12 (MBIA Insured)

Aaa

2,500,000

1,477,400

0% 5/1/13 (MBIA Insured)

Aaa

1,700,000

946,050

Pinckney Cmnty. Schools Livingston & Washtenaw Counties:

5.5% 5/1/10 (FGIC Insured)

Aaa

2,175,000

2,308,763

5.5% 5/1/11 (FGIC Insured)

Aaa

2,350,000

2,484,585

5.5% 5/1/14 (FGIC Insured)

Aaa

3,075,000

3,194,956

Plymouth-Canton Cmnty. School District 4.625% 5/1/23 (FGIC Insured)

Aaa

2,000,000

1,811,960

Port Huron Area School District (School Bldg. Site Proj.) 0% 5/1/08 (Liquidity Facility Michigan School Bond Ln. Fund)

Aa1

1,975,000

1,464,186

Reese Pub. Schools School District (School Bldg. & Site Proj.) 5.5% 5/1/30 (MBIA Insured)

Aaa

2,140,000

2,171,522

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Michigan - continued

Rockford Pub. Schools Series 1997, 6% 5/1/07 (FGIC Insured)

Aaa

$ 1,000,000

$ 1,102,200

Romulus Cmnty. Schools Series I, 0% 5/1/06 (FSA Insured)

Aaa

3,610,000

2,965,218

Royal Oak City School District (School Bldg. & Site Proj.) 0% 5/1/05 (AMBAC Insured)

Aaa

3,000,000

2,582,430

Royal Oak Hosp. Fin. Auth. Hosp. Rev.
(William Beaumont Hosp. Proj.):

Series M, 5.25% 11/15/31 (MBIA Insured)

Aaa

2,000,000

1,941,200

5.5% 1/1/14

Aa3

4,000,000

4,092,960

Saline Area School District Series 2000 A, 5.75%, tender 5/1/13

Aaa

2,325,000

2,500,049

South Redford School District 6.65% 5/1/06 (FGIC Insured)

Aaa

1,150,000

1,288,426

Southfield Library Bldg. Auth. 5.5% 5/1/21 (MBIA Insured)

Aaa

1,425,000

1,455,068

Standish Sterling Cmnty. Schools 5.15% 5/1/28 (FGIC Insured)

Aaa

4,900,000

4,795,777

Stockbridge Cmnty. Schools 5.625% 5/1/26

Aaa

1,400,000

1,445,808

Sturgis Pub. School District 5.625% 5/1/30

Aaa

3,000,000

3,091,740

Tecumseh Pub. Schools 5.5% 5/1/30
(FGIC Insured)

Aaa

1,250,000

1,268,413

Univ. of Michigan Univ. Revs. (Univ. Hosp. Proj.) Series A, 5.75% 12/1/12

Aa2

9,000,000

9,297,720

Walled Lake Consolidated School District 5.3% 5/1/09 (MBIA Insured) (Pre-Refunded to 5/1/07 @ 100) (d)

Aaa

3,550,000

3,802,618

Waverly Cmnty. School District:

5.75% 5/1/14 (FGIC Insured)

Aaa

1,000,000

1,080,550

5.75% 5/1/16 (FGIC Insured)

Aaa

1,000,000

1,064,130

Wayne Charter County Arpt. Rev.:

(Detroit Metro Wayne County Arpt. Proj.):

Series B, 6.875% 12/1/11 (MBIA Insured) (c)

Aaa

1,500,000

1,547,940

Series C, 5.25% 12/1/13 (MBIA Insured)

Aaa

2,000,000

2,056,760

(Detroit Metro. Wayne County Proj.) Series A:

5% 12/1/28 (MBIA Insured) (c)

Aaa

8,400,000

7,831,824

5.25% 12/1/12 (MBIA Insured) (c)

Aaa

2,500,000

2,596,450

Wayne County Bldg. Auth. Series A, 8% 3/1/17 (Pre-Refunded to 3/1/02 @ 102) (d)

A3

2,250,000

2,370,758

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Michigan - continued

West Ottawa Pub. School District:

(School Bldg. & Site Proj.) 0% 5/1/06
(MBIA Insured) (Pre-Refunded to 5/1/05
@ 95.9187) (d)

Aaa

$ 4,110,000

$ 3,410,108

5.25% 5/1/10 (FGIC Insured)

Aaa

2,875,000

3,019,641

469,968,890

Puerto Rico - 0.5%

Puerto Rico Commonwealth Urban Renewal & Hsg. Corp. 7.875% 10/1/04

Baa3

2,240,000

2,266,387

TOTAL INVESTMENT PORTFOLIO - 98.1%

(Cost $449,806,877)

472,235,277

NET OTHER ASSETS - 1.9%

9,180,915

NET ASSETS - 100%

$ 481,416,192

Legend

(a) S&P credit ratings are used in the absence of a rating by Moody's Investors Service, Inc.

(b) Security purchased on a delayed delivery or when-issued basis.

(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(d) Security collateralized by an amount sufficient to pay interest and principal.

Other Information

The composition of long-term debt holdings as a percentage of total value of investments in securities, is as follows (ratings are unaudited):

Moody's Ratings

S&P Ratings

Aaa, Aa, A

89.2%

AAA, AA, A

94.0%

Baa

1.7%

BBB

1.7%

Ba

0.0%

BB

0.0%

B

0.0%

B

0.0%

Caa

0.0%

CCC

0.0%

Ca, C

0.0%

CC, C

0.0%

D

0.0%

The percentage not rated by Moody's or S&P amounted to 1.4%.

Purchases and sales of securities, other than short-term securities, aggregated $65,580,268 and $37,907,904, respectively.

The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows:

General Obligations

26.8%

Escrowed/Pre-Refunded

19.4

Health Care

15.6

Electric Utilities

8.6

Water & Sewer

8.0

Special Tax

7.8

Others* (individually less than 5%)

13.8

100.0%

* Includes net other assets.

Income Tax Information

At June 30, 2001, the aggregate cost of investment securities for income tax purposes was $449,388,357. Net unrealized appreciation aggregated $22,846,920, of which $24,092,606 related to appreciated investment securities and $1,245,686 related to depreciated investment securities.

At December 31, 2000, the fund had a capital loss carryforward of approximately $14,335,000 of which $12,379,000 and $1,956,000 will expire on December 31, 2006 and 2007, respectively.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Michigan Municipal Income Fund

Financial Statements

Statement of Assets and Liabilities

June 30, 2001 (Unaudited)

Assets

Investment in securities, at value (cost $449,806,877) - See accompanying schedule

$ 472,235,277

Cash

16,218,333

Receivable for fund shares sold

450,031

Interest receivable

5,283,727

Other receivables

39,740

Total assets

494,227,108

Liabilities

Payable for investments purchased on a
delayed delivery basis

$ 11,352,526

Payable for fund shares redeemed

642,718

Distributions payable

607,412

Accrued management fee

149,743

Other payables and accrued expenses

58,517

Total liabilities

12,810,916

Net Assets

$ 481,416,192

Net Assets consist of:

Paid in capital

$ 473,996,550

Undistributed net investment income

97,139

Accumulated undistributed net realized
gain (loss) on investments

(15,105,897)

Net unrealized appreciation (depreciation) on investments

22,428,400

Net Assets, for 41,710,798 shares outstanding

$ 481,416,192

Net Asset Value, offering price and redemption price
per share ($481,416,192 ÷ 41,710,798 shares)

$11.54

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Michigan Municipal Income Fund
Financial Statements - continued

Statement of Operations

Six months ended June 30, 2001 (Unaudited)

Investment Income

Interest

$ 12,378,886

Expenses

Management fee

$ 886,712

Transfer agent fees

187,408

Accounting fees and expenses

70,050

Non-interested trustees' compensation

990

Custodian fees and expenses

3,809

Registration fees

18,464

Audit

15,741

Legal

897

Total expenses before reductions

1,184,071

Expense reductions

(207,581)

976,490

Net investment income

11,402,396

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on investment securities

294,537

Change in net unrealized appreciation (depreciation) on investment securities

1,894,492

Net gain (loss)

2,189,029

Net increase (decrease) in net assets resulting
from operations

$ 13,591,425

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Michigan Municipal Income Fund
Financial Statements - continued

Statement of Changes in Net Assets

Six months ended
June 30, 2001
(Unaudited)

Year ended
December 31,
2000

Increase (Decrease) in Net Assets

Operations
Net investment income

$ 11,402,396

$ 22,306,805

Net realized gain (loss)

294,537

857,868

Change in net unrealized appreciation (depreciation)

1,894,492

23,092,973

Net increase (decrease) in net assets resulting
from operations

13,591,425

46,257,646

Distributions to shareholders from net investment income

(11,311,961)

(22,283,323)

Share transactions
Net proceeds from sales of shares

49,826,225

78,971,676

Reinvestment of distributions from net investment income

7,568,181

15,108,154

Cost of shares redeemed

(37,177,716)

(84,273,786)

Net increase (decrease) in net assets resulting
from share transactions

20,216,690

9,806,044

Redemption fees

9,904

-

Total increase (decrease) in net assets

22,506,058

33,780,367

Net Assets

Beginning of period

458,910,134

425,129,767

End of period (including undistributed net investment income of $97,139 and $7,642, respectively)

$ 481,416,192

$ 458,910,134

Other Information

Shares

Sold

4,311,167

7,169,399

Issued in reinvestment of distributions

656,396

1,366,422

Redeemed

(3,220,636)

(7,670,375)

Net increase (decrease)

1,746,927

865,446

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

Six months
ended
June 30, 2001

Years ended December 31,

Selected Per-Share Data

(Unaudited)

2000

1999

1998

1997

1996

Net asset value,
beginning of period

$ 11.480

$ 10.870

$ 11.720

$ 11.630

$ 11.300

$ 11.560

Income from Investment Operations
Net investment income

.280 D, G

.570 D

.551

.557

.571

.630 E

Net realized and unrealized gain (loss)

.058 G

.610

(.850)

.093

.420

(.258)

Total from investment operations

.338

1.180

(.299)

.650

.991

.372

Less Distributions

From net
investment income

(.278)

(.570)

(.551)

(.557)

(.571)

(.630)

In excess of net investment income

-

-

-

(.003)

-

(.002)

In excess of net
realized gain

-

-

-

-

(.090)

-

Total distributions

(.278)

(.570)

(.551)

(.560)

(.661)

(.632)

Redemption fees added
to paid in capital

.000

-

-

-

-

-

Net asset value, end
of period

$ 11.540

$ 11.480

$ 10.870

$ 11.720

$ 11.630

$ 11.300

Total Return B, C

2.97%

11.19%

(2.63)%

5.71%

9.02%

3.38%

Ratios and Supplemental Data

Net assets, end of period (000 omitted)

$ 481,416

$ 458,910

$ 425,130

$ 479,935

$ 457,932

$ 455,729

Ratio of expenses to average net assets before
expense reductions

.51% A

.51%

.52%

.56%

.58%

.59%

Ratio of expenses to average net assets after
voluntary waivers

.51% A

.51%

.52%

.55%

.56%

.59%

Ratio of expenses to aver-
age net assets after all expense reductions

.42% A, F

.45% F

.52%

.55%

.56%

.59%

Ratio of net investment income to average
net assets

4.89% A, G

5.17%

4.86%

4.77%

5.08%

5.52%

Portfolio turnover rate

14% A

18%

19%

24%

16%

29%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Net investment income per share has been calculated based on average shares outstanding during the period.

E Net investment income per share reflects a payment of approximately $0.049 received from an issuer that was in bankruptcy.

F FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses.

G Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The effect of this change during the period was to increase net investment income per share by $.010 and decrease net realized and unrealized gain (loss) per share by $.010. Without this change the Ratio of net investment income to average net assets would have been 4.72%. Per share, ratios and supplemental data for prior periods have not been restated to reflect this change in presentation.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Michigan Municipal Money Market Fund

Performance: The Bottom Line

To evaluate a money market fund's historical performance, you can look at either total return or yield. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income. Yield measures the income paid by a fund. Since a money market fund tries to maintain a $1 share price, yield is an important measure of performance. If Fidelity had not reimbursed certain fund expenses, the past 10 year total return would have been lower.

Cumulative Total Returns

Periods ended June 30, 2001

Past 6
months

Past 1
year

Past 5
years

Past 10
years

Fidelity® MI Municipal Money Market

1.46%

3.40%

16.70%

34.11%

All Tax-Free Money Market Funds Average

1.40%

3.26%

16.26%

32.96%

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. To measure how the fund's performance stacked up against its peers, you can compare it to the all tax-free money market funds average, which reflects the performance of tax-free money market funds with similar objectives tracked by iMoneyNet, Inc. The past six months average represents a peer group of 507 money market funds.

Average Annual Total Returns

Periods ended June 30, 2001

Past 1
year

Past 5
years

Past 10
years

Fidelity MI Municipal Money Market

3.40%

3.14%

2.98%

All Tax-Free Money Market Funds Average

3.26%

3.06%

2.89%

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.

Semiannual Report

Fidelity Michigan Municipal Money Market Fund
Performance - continued

Yields

7/2/01

4/2/01

1/1/01

10/2/00

7/3/00

Fidelity Michigan Municipal Money Market Fund

2.50%

3.14%

4.23%

4.49%

4.10%

All Tax-Free Money Market Funds Average

2.37%

2.93%

3.97%

3.72%

3.85%

Fidelity Michigan Municipal Money Market Fund
Tax-Equivalent

4.08%

5.12%

6.90%

7.34%

6.69%

Portion of fund's income subject to state taxes

0.00%

0.00%

0.83%

0.71%

0.00%

Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, expressed as annual percentage rates. A yield that assumes income earned is reinvested or compounded is called an effective yield. The table above shows the fund's current seven-day yield at quarterly intervals over the past year. You can compare these yields to the all tax-free money market funds average as tracked by iMoneyNet, Inc. or you can look at the fund's tax-equivalent yield, which is based on a combined effective federal and state income tax rate of 38.69%. The fund's yields mentioned above reflect that a portion of the fund's income was subject to state taxes. A portion of the fund's income may be subject to the federal alternative minimum tax.

Comparing
Performance

Yields on tax-free investments are usually lower than yields on taxable investments. However, a straight comparison between the two may be misleading because it ignores the way taxes reduce taxable returns. Tax-equivalent yield - the yield you'd have to earn on a similar taxable investment to match the tax-free yield - makes the comparison more meaningful. Keep in mind that the U.S. government neither insures nor guarantees a money market fund. In fact, there is no assurance that a money market fund will maintain a $1 share price.

3

A money market fund's total returns and yields will vary, and reflect past results rather than predict future performance.

Semiannual Report

Fidelity Michigan Municipal Money Market Fund

Fund Talk: The Manager's Overview

(Portfolio Manager photograph)
Note to shareholders: Kim Miller became Portfolio Manager of Fidelity Michigan Municipal Money Market Fund on May 1, 2001.

Q. Kim, what was the investment environment like during the six months that ended June 30, 2001?

A. The market was dominated by the Federal Reserve Board's rate-cutting policy. As 2000 came to a close, signs emerged that the U.S. economy was weakening. There was a drop-off in industrial production, and corporate spending declined amid an environment of a struggling stock market and rising energy prices. In spite of higher fuel costs, however, there were no signs that inflationary pressures were building. In an attempt to prevent the U.S. economy from falling into recession, the Fed cut the rate banks charge each other for overnight loans - known as the fed funds target rate - six times. The first cut of 0.50 percentage points came as a surprise to the market, as the Fed implemented it just a few days into the new year, well in advance of its scheduled meeting at the end of January. Amid continued concerns about stagnant economic growth, the Fed reduced the fed funds rate by one-half percentage point four more times. Three of these cuts came at the Fed's regularly scheduled meetings in January, March and May. The Fed surprised the market again with a 0.50 percentage-point cut between meetings in April, and followed that move with a 0.25 percentage point decrease in June. When all was said and done, the Fed had reduced the fed funds target rate from 6.50% at the beginning of 2001 to 3.75% at the end of June 2001.

Q. Were there any other developments of note within the municipal money market?

A. Yes, there were. Municipal money market funds typically experience cash inflows and outflows at certain times of the year. For example, investors typically take assets out of money market funds in December and April in order to meet tax payments, and January usually brings with it a significant influx of new assets to money market funds. That didn't happen during this period. This time around, withdrawals in December and April were lower than anticipated, and inflows in January were higher than normal. It appears there were two factors driving this development. First, municipal money market yields remained attractive when compared to alternatives in the taxable market. In addition, investors were attracted to less-volatile investments such as money market funds due to the continuing struggles suffered by the equity markets.

Q. What kind of approach was taken with the fund?

A. As is typically the case in a declining interest-rate environment, our strategy focused on lengthening the average maturity of the fund by investing in longer-term maturities. This approach enables the fund to lock in higher rates as interest rates declined. However, two factors made it somewhat difficult for us to extend the average maturity. The significant amount of new capital coming into the fund, by nature, shortened the average maturity. Furthermore, the limited supply of new securities that came to market in Michigan was quickly sold. We made it a point to be aggressive at securing new deals when they became available.

Semiannual Report

Fidelity Michigan Municipal Money Market Fund

Fund Talk: The Manager's Overview - continued

Q. How did the fund perform?

A. The fund's seven-day yield on June 30, 2001, was 2.57%, compared to 4.20% six months ago. The latest yield was the equivalent of a 4.19% taxable yield for Michigan investors in the 38.69% combined federal and state income tax bracket. The fund's yields reflect that a portion of the fund's income was subject to state taxes. Through June 30, 2001, the fund's six-month total return was 1.46%, compared to 1.40% for the all tax-free money market funds average, according to iMoneyNet, Inc.

Q. What's your outlook?

A. We are approaching the time when the Fed should finish its program of easing rates to stimulate the economy. There are differing opinions as to when that will happen. Many economists and media commentators believe the Fed is very close to being done; others feel we will witness more rate cuts at the next two or three meetings. Within this environment, I'm looking to take advantage of opportunities along all parts of the yield curve, while maintaining a bias toward lengthening the average maturity. Another aspect that bodes well for the municipal money market is that municipal money market securities remain relatively cheap on an after-tax basis.

The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Fund Facts

Goal: high current tax-free income while maintaining a stable $1 share price by investing in high-quality, short-term municipal money market securities

Fund number: 420

Trading symbol: FMIXX

Start date: January 12, 1990

Size: as of June 30, 2001, more than $520 million

Manager: Kim Miller, since May 2001; manager, various Fidelity and Spartan municipal money market funds; joined Fidelity in 1990

3

Semiannual Report

Fidelity Michigan Municipal Money Market Fund

Investment Changes

Maturity Diversification

Days

% of fund's
investments
6/30/01

% of fund's
investments
12/31/00

% of fund's
investments
6/30/00

0 - 30

82.5

81.6

86.0

31 - 90

6.7

5.1

5.5

91 - 180

5.8

5.0

1.8

181 - 397

5.0

8.3

6.7

Weighted Average Maturity

6/30/01

12/31/00

6/30/00

Fidelity Michigan Municipal
Money Market Fund

31 Days

33 Days

33 Days

All Tax-Free Money Market
Funds Average *

42 Days

42 Days

40 Days

Asset Allocation (% of fund's net assets)

As of June 30, 2001

As of December 31, 2000

Variable Rate
Demand Notes
(VRDNs) 77.9%

Variable Rate
Demand Notes
(VRDNs) 78.8%

Commercial Paper (including
CP Mode) 5.0%

Commercial Paper (including
CP Mode) 4.7%

Tender Bonds 0.0%

Tender Bonds 4.3%

Municipal Notes 7.2%

Municipal Notes 7.4%

Other Investments 11.0%

Other Investments 3.7%

Net Other Assets** (1.1)%

Net Other Assets 1.1%



* Source: iMoneyNet, Inc.

** Net Other Assets are not included in pie chart

Semiannual Report

Fidelity Michigan Municipal Money Market Fund

Investments June 30, 2001

(Unaudited)

Showing Percentage of Net Assets

Municipal Securities - 101.1%

Principal
Amount

Value
(Note 1)

Michigan - 101.1%

Bay City School District Rev. Bonds 6.5% 5/1/08 (AMBAC Insured) (Pre-Refunded to 5/1/02 @ 101.5) (c)

$ 5,000,000

$ 5,209,189

Chelsea Econ. Dev. Corp. Ltd. Oblig. Rev. (Silver Maples of Chelsea Proj.) Series 1996, 2.8%, LOC Comerica Bank, Detroit, VRDN (a)

5,590,000

5,590,000

Chippewa Valley Schools Participating VRDN Series MSDW 00 253, 2.78% (Liquidity Facility Morgan Stanley Dean Witter & Co.) (a)(d)

3,410,000

3,410,000

Clinton Econ. Dev. Corp. Rev. (Clinton Area Care Ctr. Proj.) 2.78%, LOC Northern Trust Co., Chicago, VRDN (a)

5,800,000

5,800,000

Delta County Econ. Dev. Corp. Envir. Impt. Rev. (Escanaba Paper Co. Proj.) Series 85 D, 3.3%, LOC Cr. Suisse First Boston Bank, VRDN (a)

1,150,000

1,150,000

Detroit Econ. Dev. Corp. Rev. (Waterfront Reclamation & Casino Dev. Proj.) Series 1999 C, 2.7%, LOC Lasalle Bank NA, VRDN (a)

2,775,000

2,775,000

Detroit Swr. Disp. Rev.:

Bonds 6.625% 7/1/21 (FGIC Insured) (Pre-Refunded to 7/1/01 @ 102) (c)

5,750,000

5,865,000

Participating VRDN:

Series BS 99 81, 2.73% (Liquidity Facility Bear Stearns Companies, Inc.) (a)(d)

6,900,000

6,900,000

Series Merlots 00 I, 2.8% (Liquidity Facility First Union Nat'l. Bank, North Carolina) (a)(d)

4,300,000

4,300,000

Detroit Wtr. Supply Sys. Rev. Participating VRDN:

Series Merlots 00 D, 2.8% (Liquidity Facility First Union Nat'l. Bank, North Carolina) (a)(d)

4,500,000

4,500,000

Series Putters 200, 2.75% (Liquidity Facility Morgan Guaranty Trust Co., NY) (a)(d)

2,685,000

2,685,000

Series SG 64, 2.76% (Liquidity Facility Societe Generale) (a)(d)

3,500,000

3,500,000

Series SGB 6, 2.78% (Liquidity Facility Societe Generale) (a)(d)

7,570,000

7,570,000

Detroit Wtr. Sys. Rev. Participating VRDN:

Series EGL 99 2201, 2.78% (Liquidity Facility Citibank NA, New York) (a)(d)

4,000,000

4,000,000

Series EGL 99 2202, 2.78% (Liquidity Facility Citibank NA, New York) (a)(d)

8,200,000

8,200,000

Genesee County Economic Dev. Corp. (Creative Foam Corp. Proj.) Series 1994, 2.95%, LOC Bank One NA, Michigan, VRDN (a)(b)

2,200,000

2,200,000

Georgetown Charter Township Indl. Dev. Rev. (J&F Steel Corp. Proj.) Series 1989, 2.75%, LOC Societe Generale, VRDN (a)(b)

1,000,000

1,000,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Michigan - continued

Grand Rapids Econ. Dev. Corp. Econ. Dev. Rev. (Holland Home Proj.) Series 2000, 2.8%, LOC Old Kent Bank, Michigan, VRDN (a)

$ 3,635,000

$ 3,635,000

Hartland Consolidated School District Participating VRDN Series BS 01 127 Class A, 2.73% (Liquidity Facility Bear Stearns Companies, Inc.) (a)(d)

6,655,000

6,655,000

Jackson Pub. Schools:

BAN 3.6% 8/22/01, LOC Comerica Bank, Detroit

3,500,000

3,501,725

RAN Series B, 5% 7/3/01, LOC Comerica Bank, Detroit

3,750,000

3,750,078

Kalamazoo Gen. Oblig. TAN 3.8% 12/1/01

5,500,000

5,514,636

Kent County Arpt. Facilities Rev. Participating VRDN Series MSDW 98 118, 2.78% (Liquidity Facility Morgan Stanley Dean Witter & Co.) (a)(d)

2,245,000

2,245,000

Kentwood Pub. Schools Bonds 6.4% 5/1/12 (Pre-Refunded to 5/1/02 @ 102) (c)

7,750,000

8,122,222

Livonia Pub. School District Bonds Series II, 6.3% 5/1/22 (FGIC Insured) (Pre-Refunded to 5/1/02 @ 102) (c)

3,000,000

3,144,389

Michigan Bldg. Auth. Rev.:

Bonds:

(Facilities Prog.):

Series I:

4.5% 10/15/01

4,080,000

4,096,756

5% 10/15/01

2,410,000

2,422,630

Series II, 5% 10/15/01

3,000,000

3,013,192

(State Police Communication Proj.) Series II, 5% 10/1/01

3,230,000

3,234,938

Participating VRDN Series MSDW 00 481X, 2.78% (Liquidity Facility Morgan Stanley Dean Witter & Co.) (a)(d)

9,670,000

9,670,000

Michigan Gen. Oblig. Ctfs. of Prtn. Bonds 4% 10/1/01,
LOC Bank of New York NA

4,900,000

4,909,115

Michigan Hosp. Fin. Auth. Rev.:

Participating VRDN Series 1997 X, 2.8% (Liquidity Facility First Union Nat'l. Bank, North Carolina) (a)(d)

3,700,000

3,700,000

(Health Care Equip. Ln. Prog.) Series B, 3.04%, LOC Michigan Nat'l. Bank, Farmington Hills, VRDN (a)

4,200,000

4,200,000

(United Memorial Hosp. Assoc. Proj.) Series 1999, 2.78%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)(b)

3,810,000

3,810,000

Michigan Hsg. Dev. Auth. Multi-family Hsg. Rev.:

Bonds Series 1988 A, 3.15% tender 8/8/01, LOC Landesbank Hessen-Thuringen, CP mode (b)

3,550,000

3,550,000

(Canton Club East Apts. Proj.) Series 1998 A, 2.8%,
LOC Key Bank Nat'l. Assoc., VRDN (a)(b)

4,000,000

4,000,000

(Lexington Place Apts. Proj.) Series 1999 A, 2.75%,
LOC Bank of America NA, VRDN (a)(b)

7,520,000

7,520,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Michigan - continued

Michigan Hsg. Dev. Auth. Single Family Mtg. Rev.:

Participating VRDN:

Series PA 635R, 2.82% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(d)

$ 4,105,000

$ 4,105,000

Series PT 01 556, 2.82% (Liquidity Facility Landesbank Hessen-Thuringen) (a)(b)(d)

3,630,000

3,630,000

Series PT 58, 2.82% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(d)

3,795,000

3,795,000

Series 1999 B2, 2.9% (MBIA Insured), VRDN (a)(b)

6,850,000

6,850,000

Michigan Muni. Bond Auth. Rev.:

Bonds:

(School Ln. Prog.) 5% 12/1/01

7,000,000

7,051,954

Series 2001 A1, 4% 4/11/02

10,000,000

10,069,405

Participating VRDN:

Series EGL 00 2201, 2.78% (Liquidity Facility Citibank NA, New York) (a)(d)

6,600,000

6,600,000

Series PA 757, 2.76% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d)

3,500,000

3,500,000

BAN:

Series 2000 B1, 5% 7/2/01

8,345,000

8,345,142

Series 2000 B2, 5% 7/2/01, LOC Morgan Guaranty Trust Co., NY

6,645,000

6,645,113

RAN:

Series 2000 C1, 5% 8/23/01

3,615,000

3,618,522

Series 2000 C2, 5% 8/23/01, LOC Morgan Guaranty Trust Co., NY

5,700,000

5,705,554

Michigan Strategic Fund Indl. Dev. Rev.:

(Althaus Family Investors II Proj.) Series 1997, 2.88%,
LOC Huntington Nat'l. Bank, Columbus, VRDN (a)

2,100,000

2,100,000

(C-Tec, Inc. Proj.) 2.8%, LOC Suntrust Bank, VRDN (a)(b)

1,500,000

1,500,000

Michigan Strategic Fund Ltd. Oblig. Rev.:

Participating VRDN Series MSDW 00 382, 2.78% (Liquidity Facility Morgan Stanley Dean Witter & Co.) (a)(d)

2,000,000

2,000,000

(B&C Leasing Proj.) 2.8%, LOC Bank of America NA, VRDN (a)

1,350,000

1,350,000

(B&G Realty Co. Proj.) 3.3%, LOC Bank One, Wisconsin, VRDN (a)(b)

2,000,000

2,000,000

(BC&C Proj.) 2.9%, LOC Comerica Bank, Detroit, VRDN (a)(b)

1,680,000

1,680,000

(Bico Michigan, Inc. Proj.) Series 1999, 2.95%, LOC Bank One NA, VRDN (a)(b)

3,900,000

3,900,000

(Bosal Ind. Proj.) Series 1998, 2.8%, LOC Bank of New York NA, VRDN (a)(b)

7,500,000

7,500,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Michigan - continued

Michigan Strategic Fund Ltd. Oblig. Rev.: - continued

(CJS Properties LLC Proj.) 2.95%, LOC Bank One NA, Michigan, VRDN (a)(b)

$ 2,200,000

$ 2,200,000

(Conti Properties LLC Proj.) Series 1997, 2.9%,
LOC Comerica Bank, Detroit, VRDN (a)(b)

3,360,000

3,360,000

(Creative Foam Corp. Proj.) 2.95%, LOC Bank One NA, Michigan, VRDN (a)(b)

1,700,000

1,700,000

(Cyberplast Inds. Ltd. Proj.) 2.89%, LOC Wells Fargo Bank NA, Minnesota, VRDN (a)(b)

3,675,000

3,675,000

(Dawnbreakers LLC Proj.) Series 1998, 2.95%, LOC Bank One NA, Michigan, VRDN (a)(b)

4,540,000

4,540,000

(Doss Ind. Dev. Co. Proj.) 2.95%, LOC Bank One NA, Michigan, VRDN (a)(b)

3,100,000

3,100,000

(Dow Chemical Co. Proj.):

Series 1992, 3.4%, VRDN (a)(b)

4,000,000

4,000,000

Series 1999, 3.5%, VRDN (a)(b)

11,800,000

11,800,000

Series 2000, 3.5%, VRDN (a)(b)

13,500,000

13,500,000

(Envir. Quality Co. Proj.) Series 1995, 2.89%,
LOC Comerica Bank, Detroit, VRDN (a)(b)

945,000

945,000

(Fintex LLC Proj.) Series 2000, 2.9%, LOC Comerica Bank, Detroit, VRDN (a)(b)

4,400,000

4,400,000

(Future Fence Co. Proj.) 2.9%, LOC Comerica Bank, Detroit, VRDN (a)(b)

3,435,000

3,435,000

(Grandview Plaza Riverview Assoc. One LP Proj.) 2.95%, LOC Nat'l. City Bank, VRDN (a)(b)

2,840,000

2,840,000

(Hi-Tech Mold & Engineering Proj.) 2.95%, LOC Bank One NA, Michigan, VRDN (a)(b)

300,000

300,000

(John H. Dekker & Sons Proj.) Series 1998, 2.95%, LOC Michigan Nat'l. Bank, Farmington Hills, VRDN (a)(b)

2,190,000

2,190,000

(K&M Engineering, Inc. Proj.) 2.9%, LOC Comerica Bank, Detroit, VRDN (a)(b)

2,140,000

2,140,000

(Majestic Ind., Inc. Proj.) 2.9%, LOC Comerica Bank, Detroit, VRDN (a)(b)

3,145,000

3,145,000

(Mans Proj.) Series 1998, 2.9%, LOC Comerica Bank, Detroit, VRDN (a)(b)

3,105,000

3,105,000

(Muskegen Cast Products Proj.) 2.88%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)(b)

3,250,000

3,250,000

(Nat'l. Rubber Michigan, Inc. Proj.) Series 1995, 2.8%,
LOC Michigan Nat'l. Bank, Farmington Hills, VRDN (a)(b)

2,800,000

2,800,000

(PBL Enterprises, Inc. Proj.) Series 1997, 2.9%,
LOC Comerica Bank, Detroit, VRDN (a)(b)

2,860,000

2,860,000

(Prime Acquisition LLC Proj.) 2.9%, LOC Comerica Bank, Detroit, VRDN (a)(b)

4,400,000

4,400,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Michigan - continued

Michigan Strategic Fund Ltd. Oblig. Rev.: - continued

(Rochester Gear, Inc. Proj.) Series 1995, 2.8%,
LOC Comerica Bank, Detroit, VRDN (a)(b)

$ 3,950,000

$ 3,950,000

(S&S LLC Proj.) Series 2000, 3.22%, LOC Michigan Nat'l. Bank, Farmington Hills, VRDN (a)(b)

4,000,000

4,000,000

(TEI Investments LLC Proj.) Series 1997, 2.9%,
LOC Comerica Bank, Detroit, VRDN (a)(b)

800,000

800,000

(Temperance Enterprise Proj.) Series 1996, 2.95%,
LOC Nat'l. City Bank, VRDN (a)(b)

3,280,000

3,280,000

(Templeton Properties LLC Proj.) Series 2000, 2.95%,
LOC Bank One NA, Michigan, VRDN (a)(b)

2,000,000

2,000,000

(The Monarch Press, Inc. Proj.) Series 2000, 2.9%,
LOC Comerica Bank, Detroit, VRDN (a)(b)

2,500,000

2,500,000

(The Spiratex Co. Proj.) Series 1994, 2.95%,
LOC Bank One NA, Michigan, VRDN (a)(b)

1,800,000

1,800,000

(Trilan LLC Proj.) 2.95%, LOC Bank One NA, Michigan, VRDN (a)(b)

4,000,000

4,000,000

(True Industries-Roseville Proj.) Series 2000, 2.95%,
LOC Bank One NA, Michigan, VRDN (a)(b)

3,000,000

3,000,000

(Unified-Boring Co., Inc. Proj.) Series 1992, 2.95%,
LOC Bank One NA, Michigan, VRDN (a)(b)

1,200,000

1,200,000

(Vent-Rite Valve Corp. Proj.) 2.75%, LOC Fleet Nat'l. Bank, VRDN (a)(b)

1,505,000

1,505,000

(W.H. Porter, Inc. Proj.) Series 2001, 3.35%,
LOC Comerica Bank, Detroit, VRDN (a)(b)

3,550,000

3,550,000

(Wayland Enterprises Proj.) Series 1999, 2.95%,
LOC Bank One NA, Michigan, VRDN (a)(b)

3,000,000

3,000,000

(Whitehall Products LLC Proj.) Series 2000, 2.8%,
LOC Lasalle Bank NA, VRDN (a)(b)

3,300,000

3,300,000

(Windcrest Properties LLC Proj.) 2.8%, LOC Bank One NA, Michigan, VRDN (a)(b)

5,100,000

5,100,000

(YMCA Metro. Detroit Proj.) Series 2001, 2.78%,
LOC Bank One NA, Michigan, VRDN (a)

5,000,000

5,000,000

Series 1999, 2.99%, LOC Michigan Nat'l. Bank, Farmington Hills, VRDN (a)(b)

2,275,000

2,275,000

Michigan Strategic Fund Poll. Cont. Rev.:

Bonds (Dow Chemical Co. Proj.):

Series 1986:

3.2% tender 7/24/01, CP mode

3,600,000

3,600,000

3.2% tender 9/21/01, CP mode

1,200,000

1,200,000

Series 1988:

2.8% tender 9/10/01, CP mode (b)

10,450,000

10,450,000

3.15% tender 8/16/01, CP mode (b)

3,250,000

3,250,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Michigan - continued

Michigan Strategic Fund Poll. Cont. Rev.: - continued

(Consumers Pwr. Co. Proj.) Series 1988 A, 3.3%
(AMBAC Insured), VRDN (a)

$ 12,700,000

$ 12,700,000

(Gen. Motors Corp. Proj.) Series 1988 A, 2.75%, VRDN (a)

13,430,000

13,430,000

Michigan Strategic Fund Solid Waste Disp. Rev.:

(Grayling Gen. Station Proj.) Series 1990, 2.75%,
LOC Barclays Bank PLC, VRDN (a)(b)

7,673,000

7,673,000

(Great Lakes Recovery Proj.) 2.8%, LOC Bank One NA, Michigan, VRDN (a)(b)

1,800,000

1,800,000

Midland County Econ. Dev. Rev. (Dow Chemical Co. Proj.) Series 1993 A, 3.4%, VRDN (a)(b)

6,300,000

6,300,000

Oakland County Econ. Dev. Corp. (Pontiac Vision School Proj.) Series 2000, 2.8%, LOC Comerica Bank, Detroit, VRDN (a)

4,400,000

4,400,000

Saint Clair County Econ. Dev. Corp. Poll. Cont. Rev. Participating VRDN Series MSDW 00 282, 2.78% (Liquidity Facility Morgan Stanley Dean Witter & Co.) (a)(d)

7,995,000

7,995,000

Sanilac County Econ. Dev. Corp. (Marlette Cmnty. Hosp. Proj.) Series 2001, 2.78%, LOC Bank One NA, Michigan, VRDN (a)

5,400,000

5,400,000

Sterling Heights Econ. Dev. Corp. Ltd. Oblig. Rev. (Cherrywood Ctr. Assoc. Proj.) 2.89%, LOC Comerica Bank, Detroit, VRDN (a)(b)

4,000,000

4,000,000

Univ. of Michigan Univ. Revs.:

Series 1992 A, 3.3%, VRDN (a)

2,500,000

2,500,000

Series C, 3.2% 8/8/01, CP

4,000,000

4,000,000

Waverly Cmnty. School District Participating VRDN
Series PA 761R, 2.76% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d)

5,395,000

5,395,000

Wayne Charter County Arpt. Rev. Participating VRDN Series SG 122, 2.76% (Liquidity Facility Societe Generale) (a)(d)

13,700,000

13,700,000

Wayne-Westland Cmnty. Schools Participating VRDN:

Series MSDW 98 56, 2.78% (Liquidity Facility Morgan Stanley Dean Witter & Co.) (a)(d)

16,935,000

16,934,999

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Michigan - continued

Wayne-Westland Cmnty. Schools Participating VRDN: - continued

Series MSDW 98 67, 2.78% (Liquidity Facility Morgan Stanley Dean Witter & Co.) (a)(d)

$ 6,100,000

$ 6,100,000

Zeeland Hosp. Fin. Auth. Rev. (Zeeland Cmnty. Hosp. Proj.) Series 1999, 2.78%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)

4,620,000

4,620,000

TOTAL INVESTMENT PORTFOLIO - 101.1%

526,687,559

NET OTHER ASSETS - (1.1)%

(5,825,372)

NET ASSETS - 100%

$ 520,862,187

Total Cost for Income Tax Purposes $ 526,687,559

Security Type Abbreviations

BAN - BOND ANTICIPATION NOTE

CP - COMMERCIAL PAPER

RAN - REVENUE ANTICIPATION NOTE

TAN - TAX ANTICIPATION NOTE

VRDN - VARIABLE RATE DEMAND NOTE

Legend

(a) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(c) Security collateralized by an amount sufficient to pay interest and principal.

(d) Provides evidence of ownership in one or more underlying municipal bonds.

Income Tax Information

At December 31, 2000, the fund had a capital loss carryforward of approximately $50,000 all of which will expire on December 31, 2008.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Michigan Municipal Money Market Fund

Financial Statements

Statement of Assets and Liabilities

June 30, 2001 (Unaudited)

Assets

Investment in securities, at value -
See accompanying schedule

$ 526,687,559

Cash

62,068

Receivable for fund shares sold

2,957,987

Interest receivable

4,417,180

Other receivables

14,453

Prepaid expenses

8,288

Total assets

534,147,535

Liabilities

Payable for fund shares redeemed

$ 13,032,035

Distributions payable

1,622

Accrued management fee

167,489

Other payables and accrued expenses

84,202

Total liabilities

13,285,348

Net Assets

$ 520,862,187

Net Assets consist of:

Paid in capital

$ 520,786,086

Accumulated undistributed net realized
gain (loss) on investments

76,101

Net Assets, for 520,768,732 shares outstanding

$ 520,862,187

Net Asset Value, offering price and redemption price per share ($520,862,187 ÷ 520,768,732 shares)

$1.00

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Michigan Municipal Money Market Fund
Financial Statements - continued

Statement of Operations

Six months ended June 30, 2001 (Unaudited)

Investment Income

Interest

$ 8,858,966

Expenses

Management fee

$ 972,333

Transfer agent fees

347,806

Accounting fees and expenses

47,574

Non-interested trustees' compensation

900

Custodian fees and expenses

4,828

Registration fees

27,407

Audit

12,668

Reports to shareholders

13,176

Legal

4,231

Miscellaneous

8,289

Total expenses before reductions

1,439,212

Expense reductions

(60,688)

1,378,524

Net investment income

7,480,442

Net realized gain (loss) on Investments

126,360

Net increase (decrease) in net assets resulting
from operations

$ 7,606,802

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Michigan Municipal Money Market Fund
Financial Statements - continued

Statement of Changes in Net Assets

Six months ended
June 30, 2001
(Unaudited)

Year ended
December 31,
2000

Increase (Decrease) in Net Assets

Operations
Net investment income

$ 7,480,442

$ 16,105,844

Net realized gain (loss)

126,360

(25,267)

Net increase (decrease) in net assets resulting
from operations

7,606,802

16,080,577

Distributions to shareholders from net investment income

(7,480,442)

(16,105,844)

Share transactions at net asset value of $1.00 per share
Net proceeds from sales of shares

590,941,687

1,335,602,996

Reinvestment of distributions from net investment income

7,265,678

15,687,950

Cost of shares redeemed

(584,694,172)

(1,288,722,259)

Net increase (decrease) in net assets and shares
resulting from share transactions

13,513,193

62,568,687

Total increase (decrease) in net assets

13,639,553

62,543,420

Net Assets

Beginning of period

507,222,634

444,679,214

End of period

$ 520,862,187

$ 507,222,634

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

Six months
ended
June 30, 2001

Years ended December 31,

(Unaudited)

2000

1999

1998

1997

1996

Selected Per-Share Data

Net asset value, beginning of period

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

Income from Investment Operations
Net investment income

.015

.036

.028

.030

.031

.030

Less Distributions

From net investment income

(.015)

(.036)

(.028)

(.030)

(.031)

(.030)

Net asset value, end of period

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

Total Return B, C

1.46%

3.69%

2.82%

3.00%

3.18%

3.00%

Ratios and Supplemental Data

Net assets, end
of period
(000 omitted)

$ 520,862

$ 507,223

$ 444,679

$ 357,354

$ 287,940

$ 260,592

Ratio of expenses to average net assets

.56% A

.57%

.58%

.60%

.61%

.62%

Ratio of expenses to average net assets after all expense reductions

.54% A, D

.57%

.58%

.59% D

.61%

.61% D

Ratio of net investment income to average net assets

2.93% A

3.63%

2.80%

2.97%

3.14%

2.96%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2001 (Unaudited)

1. Significant Accounting Policies.

Spartan Michigan Municipal Income Fund (the income fund) is a fund of Fidelity Municipal Trust. Fidelity Michigan Municipal Money Market Fund (the money market fund) is a fund of Fidelity Municipal Trust II. Each trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Fidelity Municipal Trust and Fidelity Municipal Trust II (the trusts) are organized as a Massachusetts business trust and a Delaware business trust, respectively. Each fund is authorized to issue an unlimited number of shares. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which require management to make certain estimates and assumptions at the date of the financial statements. Each fund may be affected by economic and political developments in the state of Michigan. The following summarizes the significant accounting policies of the income fund and the money market fund:

Security Valuation.

Each fund calculates its net asset value per share as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. In addition, investments in open-end investment companies are valued at their net asset value each business day. The following summarizes the security valuation policies of the funds.

Income Fund. Securities are valued based upon a computerized matrix system and/or appraisals by a pricing service, both of which consider market transactions and dealer-supplied valuations. Securities (including restricted securities) for which quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost or original cost plus accrued interest, both of which approximate current value.

Money Market Fund. As permitted under Rule 2a-7 of the 1940 Act, and certain conditions therein, securities are valued initially at cost and thereafter assume a constant amortization to maturity of any discount or premium.

Income Taxes. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, each fund is not subject to income taxes to the extent that it distributes all of its taxable income for the fiscal year. The schedules of investments include information, if any, regarding income taxes under the caption "Income Tax Information."

Investment Income. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned.

Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Distributions to Shareholders. Dividends are declared daily and paid monthly from net investment income. Distributions to shareholders from realized capital gains on investments, if any, are recorded on the ex-dividend date.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Distributions to Shareholders - continued

Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences, which may result in distribution reclassifications, are primarily due to differing treatments for futures transactions, market discount, capital loss carryforwards and losses deferred due to futures transactions and excise tax regulations. The income fund also utilized earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.

Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Undistributed net investment income and accumulated undistributed net realized gain (loss) on investments may include temporary book and tax basis differences which will reverse in a subsequent period. Any taxable income or gain remaining at fiscal year end is distributed in the following year.

Short-Term Trading (Redemption) Fees. Shares held in the income fund less than 30 days are subject to a short-term trading fee equal to .50% of the proceeds of the redeemed shares. The fee, which is retained by the fund, is accounted for as an addition to paid in capital.

Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost.

Change in Accounting Principle. Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The cumulative effect of this accounting change had no impact on total net assets of the fund, but resulted in a $389,846 increase to the cost of securities held and a corresponding increase to accumulated net undistributed realized gain (loss), based on securities held by the fund on January 1, 2001.

The effect of this change during the period, was to increase net investment income by $47,188, decrease net unrealized appreciation/depreciation by $42,034, and decrease net realized gain (loss) by $5,154. The Statement of Changes in net assets and financial highlights for the prior periods have not been restated to reflect this change in presentation.

2. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. Each fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is "marked to market" daily and equivalent deliverable securities

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

are held for the transaction. The values of the securities purchased on a delayed delivery or when-issued basis are identified as such in each fund's Schedule of Investments. Each fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.

4. Fees and Other Transactions with Affiliates.

Management Fee. As each fund's investment adviser, Fidelity Management & Research Company (FMR) receives a monthly fee that is calculated on the basis of a group fee rate plus a fixed individual fund fee rate applied to the average net assets of each fund. The group fee rate is the weighted average of a series of rates and is based on the monthly average net assets of all the mutual funds advised by FMR. The rates ranged from .0920% to .3700% for the period. The annual individual fund fee rate is .25%. In the event that these rates were lower than the contractual rates in effect during the period, FMR voluntarily implemented the above rates, as they resulted in the same or a lower management fee. For the period, the management fees were equivalent to the following annualized rates expressed as a percentage of average net assets.

Spartan Michigan Municipal Income Fund

.38%

Fidelity Michigan Municipal Money Market Fund

.38%

Sub-Adviser Fee. As each fund's investment sub-adviser, Fidelity Investments Money Management, Inc.(FIMM), an affiliate of FMR, FIMM receives a fee from FMR of 50% of the management fee payable to FMR. The fee is paid prior to any voluntary expense reimbursements which may be in effect.

Transfer Agent and Accounting Fees. Citibank, N.A.(Citibank) is the custodian, transfer agent and shareholder servicing agent for the funds. Citibank has entered into a sub-contract with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the funds' transfer and shareholder servicing agent and accounting functions. The funds pay account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Fees and Other Transactions with Affiliates - continued

Transfer Agent and Accounting Fees - continued

mailing of all shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.

For the period, the transfer agent fees were equivalent to the following annualized rates as a percentage of the average net assets:

Spartan Michigan Municipal Income

.08%

Fidelity Michigan Municipal Money Market

.14%

Fidelity Municipal Cash Central Fund. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the funds may invest in the Fidelity Municipal Cash Central Fund (the Cash Fund) managed by FIMM, an affiliate of FMR. The Cash Fund is an open-end money market fund available only to investment companies and other accounts managed by FMR and its affiliates. The Cash Fund seeks preservation of capital, liquidity, and current income by investing in high-quality, short-term municipal securities of various states and municipalities. The Cash Fund does not pay a management fee. Income distributions from the Cash Fund are declared daily and paid monthly from net investment income. Income distributions earned by the funds are recorded as interest income in the accompanying financial statements.

Money Market Insurance. Pursuant to an Exemptive Order issued by the SEC, the money market fund, along with other money market funds advised by FMR or its affiliates, has entered into insurance agreements with FIDFUNDS Mutual Limited (FIDFUNDS), an affiliated mutual insurance company. FIDFUNDS provides limited coverage for certain loss events including issuer default as to payment of principal or interest and bankruptcy or insolvency of a credit enhancement provider. The insurance does not cover losses resulting from changes in interest rates, ratings downgrades or other market conditions. The fund may be subject to a special assessment of up to approximately 2.5 times the fund's annual gross premium if covered losses exceed certain levels. The fund pays premiums to FIDFUNDS on a calendar year basis, which are amortized over one year.

5. Expense Reductions.

Through arrangements with certain fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.

Custody
expense
reduction

Transfer
Agent
expense
reduction

Accounting expense
reduction

Spartan Michigan Municipal Income

$ 3,809

$ 183,586

$ 20,186

Fidelity Michigan Municipal Money Market

4,828

55,860

Semiannual Report

Proxy Voting Results

A special meeting of Fidelity Michigan Municipal Money Market Fund's shareholders was held on April 18, 2001. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.

PROPOSAL 1

To continue the effectiveness of Article VII, Section 7.04 of the Trust Instrument.*

# of
Votes Cast

% of
Votes Cast

Affirmative

588,735,972.83

88.967

Against

21,107,857.68

3.190

Abstain

51,905,965.49

7.844

TOTAL

661,749,796.00

100.000

Broker Non-Votes

3,928,544.00

PROPOSAL 2

To authorize the Trustees to adopt an amended and restated Trust Instrument.*

# of
Votes Cast

% of
Votes Cast

Affirmative

569,063,418.55

85.994

Against

38,954,429.61

5.887

Abstain

53,731,947.84

8.120

TOTAL

661,749,796.00

100.000

Broker Non-Votes

3,928,544.00

PROPOSAL 3

To elect the fourteen nominees specified below as Trustees.*

# of
Votes Cast

% of
Votes Cast

J. Michael Cook

Affirmative

590,566,097.42

88.716

Withheld

75,112,242.58

11.284

TOTAL

665,678,340.00

100.000

# of
Votes Cast

% of
Votes Cast

Ralph F. Cox

Affirmative

590,884,350.73

88.764

Withheld

74,793,989.27

11.236

TOTAL

665,678,340.00

100.000

Phyllis Burke Davis

Affirmative

590,088,213.15

88.645

Withheld

75,590,126.85

11.355

TOTAL

665,678,340.00

100.000

Robert M. Gates

Affirmative

590,595,725.60

88.721

Withheld

75,082,614.40

11.279

TOTAL

665,678,340.00

100.000

Abigail P. Johnson

Affirmative

587,416,641.22

88.243

Withheld

78,261,698.78

11.757

TOTAL

665,678,340.00

100.000

Edward C. Johnson 3d

Affirmative

589,796,637.97

88.601

Withheld

75,881,702.03

11.399

TOTAL

665,678,340.00

100.000

Donald J. Kirk

Affirmative

590,875,468.88

88.763

Withheld

74,802,871.12

11.237

TOTAL

665,678,340.00

100.000

Marie L. Knowles

Affirmative

590,543,328.44

88.713

Withheld

75,135,011.56

11.287

TOTAL

665,678,340.00

100.000

Ned C. Lautenbach

Affirmative

590,728,794.94

88.741

Withheld

74,949,545.06

11.259

TOTAL

665,678,340.00

100.000

# of
Votes Cast

% of
Votes Cast

Peter S. Lynch

Affirmative

591,037,063.37

88.787

Withheld

74,641,276.63

11.213

TOTAL

665,678,340.00

100.000

Marvin L. Mann

Affirmative

590,676,424.63

88.733

Withheld

75,001,915.37

11.267

TOTAL

665,678,340.00

100.000

William O. McCoy

Affirmative

590,708,035.68

88.738

Withheld

74,970,304.32

11.262

TOTAL

665,678,340.00

100.000

Robert C. Pozen

Affirmative

590,554,497.90

88.715

Withheld

75,123,842.10

11.285

TOTAL

665,678,340.00

100.000

William S. Stavropoulos

Affirmative

589,991,243.07

88.630

Withheld

75,687,096.93

11.370

TOTAL

665,678,340.00

100.000

PROPOSAL 4

To approve an amended management contract for Fidelity Michigan Municipal Money Market Fund.

# of
Votes Cast

% of
Votes Cast

Affirmative

241,179,467.49

85.853

Against

9,399,844.80

3.346

Abstain

30,343,513.99

10.801

TOTAL

280,922,826.28

100.000

PROPOSAL 6

To eliminate Fidelity Michigan Municipal Money Market Fund's fundamental 80% investment policy and adopt a comparable non-fundamental policy.

# of
Votes Cast

% of
Votes Cast

Affirmative

229,226,987.36

81.598

Against

20,264,724.93

7.213

Abstain

31,431,113.99

11.189

TOTAL

280,922,826.28

100.000

PROPOSAL 9

To amend Fidelity Michigan Municipal Money Market Fund's fundamental investment limitation concerning underwriting.

# of
Votes Cast

% of
Votes Cast

Affirmative

230,985,667.63

82.224

Against

18,972,330.65

6.753

Abstain

30,964,828.00

11.023

TOTAL

280,922,826.28

100.000

PROPOSAL 11

To amend Fidelity Michigan Municipal Money Market Fund's fundamental investment limitation concerning lending.

# of
Votes Cast

% of
Votes Cast

Affirmative

230,741,482.08

82.137

Against

19,466,009.98

6.929

Abstain

30,715,334.22

10.934

TOTAL

280,922,826.28

100.000

*Denotes trust-wide proposals and voting results.

Semiannual 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

If you are not currently on the Internet, call EarthLink Sprint at 1-800-288-2967, and be sure to ask for registration number SMD004 to receive a special Fidelity package that includes 30 days of free Internet access. EarthLink is North America's #1 independent Internet access provider.

(computer_graphic)

Fidelity On-line Xpress+®

Fidelity On-line Xpress+ software for Windows combines comprehensive portfolio management capabilities, securities trading and access to research and analysis tools . . . all on your desktop. Call Fidelity at 1-800-544-0240 or visit our web site for more information on how to manage your investments via your PC.

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.

Semiannual Report

To Write Fidelity

If more than one address is listed, please locate the address that is closest to you. We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

(letter_graphic)

Making Changes
To Your Account

(such as changing name, address, bank, etc.)

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002

(letter_graphic)

For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048

Selling shares

Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602

Overnight Express
Fidelity Investments
Attn: Redemptions - CP6I

400 East Las Colinas Blvd.
Irving, TX 75039-5587

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)

For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602

Overnight Express
Fidelity Investments
Attn: Redemptions - CP5L

400 East Las Colinas Blvd.
Irving, TX 75039-5587

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Adviser

Fidelity Investment Money
Management, Inc.

Officers

Edward C. Johnson 3d, President

Abigail P. Johnson, Senior Vice President

Dwight D. Churchill, Vice President,

David L. Murphy, Vice President,

George A. Fischer, Vice President,
Income Fund

Eric D. Roiter, Secretary

Robert A. Dwight, Treasurer

Maria F. Dwyer, Deputy Treasurer

Stanley N. Griffith, Assistant Vice President

John H. Costello, Assistant Treasurer

Paul F. Maloney, Assistant Treasurer

Thomas J. Simpson, Assistant Treasurer

Board of Trustees

J. Michael Cook *

Ralph F. Cox *

Phyllis Burke Davis *

Robert M. Gates *

Abigail P. Johnson

Edward C. Johnson 3d

Donald J. Kirk *

Marie L. Knowles *

Ned C. Lautenbach *

Peter S. Lynch

Marvin L. Mann *

William O. McCoy *

William S. Stavropoulos * -
funds of Fidelity Municipal Trust II

* Independent trustees

Advisory Board

Robert C. Pozen

William S. Stavropoulos -
funds of Fidelity Municipal Trust

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Shareholder
Servicing Agents

Citibank, N.A.

New York, NY

and

Fidelity Service Company, Inc.

Boston, MA

Custodian

Citibank, N.A.

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®) (automated graphic)    1-800-544-5555

(automated graphic)    Automated line for quickest service

MIR-SANN-0801 141117
1.705626.103

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com

Spartan®

Minnesota Municipal Income

Fund

Semiannual Report

June 30, 2001

(2_fidelity_logos)(registered trademark)

Contents

President's Message

<Click Here>

Ned Johnson on investing strategies.

Performance

<Click Here>

How the fund has done over time.

Fund Talk

<Click Here>

The manager's review of fund performance, strategy and outlook.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

(Recycle graphic)   This report is printed on recycled paper using soy-based inks.

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.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Neither the fund nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Semiannual Report

President's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Amid a slowing economy highlighted by frequent corporate earnings disappointments, mounting unemployment and waning consumer confidence, equity investors abandoned expensive, large-cap growth stocks in favor of the current earnings delivered by small- and mid-cap value stocks during the first six months of 2001. Fixed-income investments also offered a measure of stability, as corporate, mortgage and agency securities generally outperformed many popular equity indexes through the mid-point of the year.

While it's impossible to predict the future direction of the markets with any degree of certainty, there are certain basic principles that can help investors plan for their future needs.

The longer your investment time frame, the less likely it is that you will be affected by short-term market volatility. A 10-year investment horizon appropriate for saving for a college education, for example, enables you to weather market cycles in a long-term fund, which may have a higher risk potential, but also has a higher potential rate of return.

An intermediate-length fund could make sense if your investment horizon is two to four years, while a short-term bond fund could be the right choice if you need your money in one or two years.

If your time horizon is less than a year, you might want to consider moving some of your bond investment into a money market fund. These funds seek income and a stable share price by investing in high-quality, short-term investments. Of course, it's important to remember that an investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these types of funds.

Finally, no matter what your time horizon or portfolio diversity, it makes good sense to follow a regular investment plan, investing a certain amount of money in a fund at the same time each month or quarter and periodically reviewing your overall portfolio. By doing so, you won't get caught up in the excitement of a rapidly rising market, nor will you buy all your shares at market highs. While this strategy - known as dollar cost averaging - won't assure a profit or protect you from a loss in a declining market, it should help you lower the average cost of your purchases. Of course, you should consider your financial ability to continue your purchases through periods of low price levels before undertaking such a strategy.

If you have questions, please call us at 1-800-544-6666, or visit our web site at www.fidelity.com. We are available 24 hours a day, seven days a week to provide you the information you need to make the investments that are right for you.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Performance: The Bottom Line

There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). You can also look at the fund's income, as reflected in the fund's yield, to measure performance. If Fidelity had not reimbursed certain fund expenses, the past five year and past 10 year total returns would have been lower.

Cumulative Total Returns

Periods ended June 30, 2001

Past 6
months

Past 1
year

Past 5
years

Past 10
years

Spartan ® MN Municipal Income

2.45%

9.15%

32.69%

82.22%

LB Minnesota Enhanced Municipal Bond

2.94%

9.74%

35.71%

n/a*

Minnesota Municipal Debt Funds Average

2.25%

8.78%

28.83%

83.29%

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Lehman Brothers Minnesota Enhanced Municipal Bond Index - a market value-weighted index of Minnesota investment-grade municipal bonds with maturities of one year or more. To measure how the fund's performance stacked up against its peers, you can compare it to the Minnesota municipal debt funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 50 mutual funds. These benchmarks include reinvested dividends and capital gains, if any.

Average Annual Total Returns

Periods ended June 30, 2001

Past 1
year

Past 5
years

Past 10
years

Spartan MN Municipal Income

9.15%

5.82%

6.18%

LB Minnesota Enhanced Municipal Bond

9.74%

6.30%

n/a*

Minnesota Municipal Debt Funds Average

8.78%

5.19%

6.24%

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year. (Lipper calculates average annual total returns by annualizing each fund's total return, then taking the arithmetic average. This may produce a different figure than that obtained by averaging the cumulative total returns and annualizing the result.)

* Not available

Semiannual Report

Performance - continued

$10,000 Over 10 Years



$10,000 Over 10 Years: Let's say hypothetically that $10,000 was invested in Spartan® Minnesota Municipal Income Fund on June 30, 1991. As the chart shows, by June 30, 2001, the value of the investment would have grown to $18,222 - an 82.22% increase on the initial investment. For comparison, look at how the Lehman Brothers Municipal Bond Index - a market value-weighted index of investment-grade municipal bonds with maturities of one year or more - did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $19,967 - a 99.67% increase.

Understanding
Performance

How a fund did yesterday is no guarantee of how it will do tomorrow. Bond prices, for example, generally move in the opposite direction of interest rates. In turn, the share price, return and yield of a fund that invests in bonds will vary. That means if you sell your shares during a market downturn, you might lose money. But if you can ride out the market's ups and downs, you may have a gain.

3

Semiannual Report

Performance - continued

Total Return Components

Six months ended June 30,

Years ended December 31,

2001

2000

1999

1998

1997

1996

Dividend returns

2.36%

5.26%

4.41%

4.80%

5.29%

5.22%

Capital returns

0.09%

5.36%

-6.84%

0.71%

3.56%

-1.44%

Total returns

2.45%

10.62%

-2.43%

5.51%

8.85%

3.78%

Total return components include both dividend returns and capital returns. A dividend return reflects the actual dividends paid by the fund. A capital return reflects both the amount paid by the fund to shareholders as capital gain distributions and changes in the fund's share price. Both returns assume the dividends or capital gains, if any, paid by the fund are reinvested.

Dividends and Yield

Periods ended June 30, 2001

Past 1
month

Past 6
months

Past 1
year

Dividends per share

4.31¢

26.27¢

52.81¢

Annualized dividend rate

4.67%

4.71%

4.76%

30-day annualized yield

4.18%

-

-

30-day annualized tax-equivalent yield

7.09%

-

-

Dividends per share show the income paid by the fund for a set period and do not reflect any tax reclassifications. If you annualize this number, based on an average share price of $11.23 over the past one month, $11.25 over the past six months and $11.09 over the past one year, you can compare the fund's income over these three periods. The 30-day annualized yield is a standard formula for all bond funds based on the yields of the bonds in the fund, averaged over the past 30 days. This figure shows you the yield characteristics of the fund's investments at the end of the period. It also helps you compare funds from different companies on an equal basis. The tax-equivalent yield shows what you would have to earn on a taxable investment to equal the fund's tax-free yield, if you're in the 41.02% combined effective federal and state income tax bracket, but does not reflect the payment of the alternative minimum tax, if applicable.

Semiannual Report

Fund Talk: The Manager's Overview

Market Recap

In an effort to kick-start the sputtering U.S. economy, the Federal Reserve Board reduced key short-term interest rates six times during the first half of 2001, lowering the fed funds target rate from 6.50% to 3.75%. While the full effect of these cuts likely won't be felt for several months, they had an immediate impact on the performance of tax-free municipal bonds, particularly those of short and intermediate maturity, which typically benefit in a declining interest-rate environment. The muni market also received a boost given the steady demand from institutional, retail and high-net-worth investors, as well as an encouraging credit upgrade environment. For the overall six-month period ending June 30, 2001, the Lehman Brothers Municipal Bond Index - an index of approximately 40,000 investment-grade, fixed-rate, tax-exempt bonds, gained 2.88%. As is often the case in financial markets, some of the good news was offset by several factors. In April, for instance, the $25 billion downgrade of California's general obligation bonds - the largest muni downgrade on record - tempered performance. Additionally, as interest rates continued to trend downward, so did the prices of long-term munis. Also, President Bush's newly enacted tax program raised moderate concerns about higher muni supply and lower muni demand going forward.

(Portfolio Manager photograph)
An interview with Christine Thompson, Portfolio Manager of Spartan Minnesota Municipal Income Fund

Q. How did the fund perform, Christine?

A. For the six-month period that ended June 30, 2001, the fund had a total return of 2.45%. To get a sense of how the fund did relative to its competitors, the Minnesota municipal debt funds average returned 2.25% for the same six-month period, according to Lipper Inc. Additionally, the Lehman Brothers Minnesota Enhanced Municipal Bond Index, which tracks the types of securities in which the fund invests, returned 2.94%. For the 12-month period that ended June 30, 2001, the fund had a total return of 9.15%. In comparison, the Minnesota municipal debt funds average returned 8.78% and the Lehman Brothers index returned 9.74% for the same 12-month period.

Q. What drove the fund's performance and helped it outpace it peers during the past six months?

A. Falling interest rates, of course, were the main factor driving the municipal bond market's and the fund's performance during the period. Municipal bonds generally performed well as the Federal Reserve Board cut rates to stimulate the sagging economy. From January through June, the Fed cut short-term rates six times by a combined total of 2.75 percentage points. In response, short- and intermediate-maturity bond yields generally fell, pushing their prices higher. Long-maturity bonds, on the other hand, tended to stall due to concerns about creeping inflation, now and in the future. The performance discrepancy between long- and shorter-maturity bonds was a key reason why the fund outpaced its peers. I kept the fund's investments broadly diversified, emphasizing specific maturities that, based on supply and demand trends, offered the best total return potential. By doing so, the fund benefited from the rally enjoyed by shorter-term bonds. That said, the fund's stake in long-maturity bonds turned in lackluster returns on a relative basis.

Semiannual Report

Fund Talk: The Manager's Overview - continued

Q. What other factors aided performance?

A. The fund's larger weighting in health care and education bonds relative to the Lehman Brothers index also was a plus for performance because both sectors outperformed the broader Minnesota municipal market. During most of 2000, health care bonds had come under pressure due to a lack of demand for their bonds. Investors generally avoided health care bonds following the cutbacks in Medicare and the expansion of managed care programs, both of which curtailed medical reimbursement rates and put pressure on hospital operating results. This year, however, hospital financial trends have stabilized and lower valuations lured investors back to health care securities. The education sector continued to be supported by favorable demographic trends with the college-aged population expanding.

Q. Given Minnesota's economic slowdown, did you make any changes to the fund's investments during the past six months?

A. Not really, since I already had positioned the fund anticipating economic weakness in 2001. I maintained the fund's relatively high credit quality, with more than 96% of its investments in bonds rated A or higher by Moody's Investors Service or Standard & Poor's® at the end of the period. In addition, approximately one-third of the fund's investments were insured, meaning their principal and interest payments are guaranteed by a municipal bond insurer. My emphasis on these investment-grade and insured bonds reflected that, for the most part, I didn't feel lower-quality bonds offered enough incentive in the form of additional yield for their increased risk, especially given the weakness of the economy. In another strategy to prepare for a worsening economy, I kept the fund diversified away from economically sensitive sectors - such as general obligation bonds - and into groups such as education and health care bonds. General obligation bonds made up about 35.3% of the Minnesota municipal market, but only 30.5% of the fund's net assets at the end of the period.

Q. What's ahead for the municipal market?

A. The direction of interest rates and, ultimately, the performance of the bond markets largely will be determined by the strength of the economy. At the end of June, bond prices reflected expectations for further interest-rate cuts. Continued economic weakness could help sustain the drop in interest rates, while an economic rebound could spell higher rates in the fall. As for municipals in particular, their performance also will be dependent on whether investors view them as attractively valued relative to other fixed-income alternatives.

Semiannual Report

Fund Talk: The Manager's Overview - continued

The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Fund Facts

Goal: high level of current income exempt from federal and Minnesota personal income taxes by normally investing in investment-grade municipal debt securities

Fund number: 082

Trading symbol: FIMIX

Start date: November 21, 1985

Size: as of June 30, 2001, more than $306 million

Manager: Christine Thompson, since 1998; manager, various Fidelity and Spartan municipal income funds; joined Fidelity in 1985

3

Christine Thompson on credit quality trends:

"During the past year, municipal issuers across the nation and in Minnesota generally enjoyed strong revenue growth as tax receipts and user fees exceeded budget forecasts. Infrastructure spending on transportation projects and school facility improvements accelerated, but generally were met with strong taxpayer support that eased the challenges associated with financing such projects. That said, revenue growth is slowing in response to weaker economic conditions, although most Minnesota issuers have responded responsibly so far.

"Within the municipal market, there were some widely divergent trends. After two years of general decline, some health care issuers have begun to stabilize. In light of this development, the fund has taken a selective approach, concentrating hospital bond investments in those facilities identified as the dominant service providers in their market with the ability to translate their competitive strength into higher prices.

"On the other hand, corporate-backed municipal bond issues lagged as slowing economic growth gave rise to heightened concerns about leveraged corporate balance sheets. Corporate-backed municipal issues are concentrated in some cyclical industry groups - such as the paper, automobile and airline industries - and those industries that are subject to aggressive restructuring - such as the electric utility industry."

Semiannual Report

Investment Changes

Top Five Sectors as of June 30, 2001

% of fund's
net assets

% of fund's net assets
6 months ago

General Obligations

30.5

27.2

Health Care

18.1

18.9

Education

14.6

14.0

Electric Utilities

14.0

14.2

Transportation

5.5

5.4

Average Years to Maturity as of June 30, 2001

6 months ago

Years

13.6

14.8

Average years to maturity is based on the average time remaining until principal payments are expected from each of the fund's bonds, weighted by dollar amount.

Duration as of June 30, 2001

6 months ago

Years

6.3

6.1

Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example.

Quality Diversification (Moody's Ratings)

As of June 30, 2001

As of December 31, 2000

Aaa 48.8%

Aaa 45.6%

Aa, A 47.4%

Aa, A 48.6%

Baa 3.8%

Baa 5.8%



Where Moody's ratings are not available, we have used S&P ratings. Amounts shown are as a percentage of the fund's investments.

Semiannual Report

Investments June 30, 2001

(Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 99.7%

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Minnesota - 96.9%

Albany Independent School District #745
Series A, 6% 2/1/16

Aa1

$ 1,000,000

$ 1,055,660

Anoka-Hennepin Independent School District #11 Series A, 5.75% 2/1/20

Aa1

3,950,000

4,143,787

Centennial Independent School District #12 Series 1996 A, 5.625% 2/1/16

Aa1

1,000,000

1,041,310

Chanhassen Gen. Oblig. Impt. Series D, 0% 2/1/03 (AMBAC Insured)

Aaa

1,730,000

1,641,701

Cloquet Poll. Cont. Rev. (Potlach Corp. Proj.) 5.9% 10/1/26

BBB

3,995,000

3,549,637

Dakota County Hsg. & Redev. Auth. Interest For South Saint Paul Rev. (Single Family-GNMA Prog.) Series A, 8.1% 9/1/12

AAA

80,000

80,135

Golden Valley Gen. Oblig. Rev. (Covenant Retirement Cmnty. Proj.) Series A, 5.5% 12/1/29

A-

2,500,000

2,314,500

Hastings Independent School District #200 Series A, 5% 2/1/22

Aa1

4,750,000

4,618,853

Lakeville Independent School District #194 0% 2/1/05

Aa1

2,810,000

2,448,718

Maple Grove Gen. Oblig. Impt. Series A, 5.2% 2/1/17

Aa2

1,120,000

1,124,469

Metro Council Minneapolis-Saint Paul Metro. Area:

5.25% 12/1/07 (b)

Aaa

2,150,000

2,272,873

5.25% 12/1/08 (b)

Aaa

2,100,000

2,217,222

5.25% 12/1/09 (b)

Aaa

2,000,000

2,111,460

Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev.:

(Health One Oblig. Group Proj.) Series A, 7.4% 8/15/11 (MBIA Insured) (Pre-Refunded to 8/15/02 @ 100) (d)

Aaa

2,750,000

2,787,978

(Healthspan Corp. Proj.) Series A, 4.75% 11/15/18 (AMBAC Insured)

Aaa

4,500,000

4,225,185

Minneapolis & Saint Paul Metro. Arpts. Commission Arpt. Rev.:

Series 1999 A, 5.125% 1/1/31 (FGIC Insured)

Aaa

3,375,000

3,253,871

Series 2000 A, 5.75% 1/1/32 (FGIC Insured)

AAA

1,000,000

1,048,690

Series 2001 C, 5.25% 1/1/32 (FGIC Insured)

AAA

1,000,000

985,450

Series A, 5% 1/1/19 (AMBAC Insured)

Aaa

4,000,000

3,939,960

Series B:

5.25% 1/1/11 (AMBAC Insured) (c)

Aaa

3,475,000

3,627,970

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Minnesota - continued

Minneapolis & Saint Paul Metro. Arpts. Commission Arpt. Rev.: - continued

5.5% 1/1/04 (FGIC Insured) (c)

AAA

$ 2,875,000

$ 3,003,225

5.625% 1/1/13 (FGIC Insured) (c)

Aaa

1,000,000

1,057,140

Minneapolis Cmnty. Dev. Agcy. Tax Increment Rev.:

0% 9/1/07 (MBIA Insured)

Aaa

2,860,000

2,212,124

0% 9/1/08 (MBIA Insured)

Aaa

4,600,000

3,379,850

Minneapolis Gen. Oblig.:

(Sports Arena Proj.):

5.125% 10/1/20

Aaa

2,565,000

2,563,769

6% 4/1/06

Aaa

1,055,000

1,156,755

6% 10/1/06

Aaa

1,000,000

1,105,800

Series B, 5.1% 9/1/08

Aaa

2,000,000

2,077,740

6.15% 10/1/05

Aaa

2,000,000

2,078,980

6.25% 4/1/07

Aaa

2,000,000

2,077,720

Minneapolis Health Care Facilities Rev. (Children's Hosp. & Clinics Proj.) Series A 4.5% 8/15/02 (FSA Insured)

Aaa

1,360,000

1,383,433

Minneapolis Hosp. Rev. (Fairview Hosp. & Health Care Proj.) Series A, 6.5% 1/1/11 (MBIA Insured)

Aaa

3,000,000

3,098,040

Minneapolis Rev. (Univ. of Minnesota Gateway Proj.) Series 1997 A, 5.25% 12/1/24

Aa2

1,900,000

1,906,764

Minneapolis Saint Paul Hsg. Fin. Rev. (Single Family Mtg. Phase IX Proj.) 7.25% 8/1/21 (c)

AAA

1,285,000

1,311,754

Minneapolis Saint Paul Metro. Arpts. Commission Series 13, 5.25% 1/1/11 (c)

Aaa

2,840,000

2,976,150

Minneapolis Spl. School District #1 Ctfs. of Prtn.:

Series A, 5.8% 2/1/10 (MBIA Insured) (Pre-Refunded to 2/1/06 @ 100) (d)

Aaa

2,000,000

2,171,620

Series B, 5% 2/1/13

Aa1

2,575,000

2,605,385

5.75% 2/1/20

Aa1

4,210,000

4,381,979

Minnesota Agric. & Economic Dev. Board Rev. (Health Care Sys. Proj.) Series A, 6.375% 11/15/29

A2

3,000,000

3,098,730

Minnesota Gen. Oblig.:

(Duluth Arpt. Proj.) Series B, 6.25% 8/1/14 (c)

Aaa

1,000,000

1,060,870

4.875% 8/1/07

Aaa

1,000,000

1,049,880

5.2% 5/1/07

Aaa

3,750,000

3,954,150

5.3% 8/1/10

Aaa

1,450,000

1,483,611

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Minnesota - continued

Minnesota Higher Ed. Facilities Auth. Rev.:

(Carleton College Proj.):

Series 3L 1, 5.75% 11/1/12

Aa2

$ 2,000,000

$ 2,090,540

Series 4N:

5% 11/1/18

Aa2

2,000,000

1,963,240

5.25% 11/1/04

Aa2

870,000

918,998

5.25% 11/1/05

Aa2

945,000

1,001,776

(Hamline Univ. Proj.):

Series 4I, 6% 10/1/12

Baa1

2,000,000

2,078,220

Series 5B, 5.95% 10/1/19

Baa1

600,000

616,086

(MacAlester College Proj.) Series 4C:

5.2% 3/1/08

Aa3

1,070,000

1,106,220

5.5% 3/1/12

Aa3

815,000

841,585

(Saint Johns Univ. Proj.) Series 4L, 5.4% 10/1/22

A3

3,500,000

3,508,190

(Saint Thomas Univ. Proj.):

Series 3C, 6.25% 9/1/16

A2

2,310,000

2,315,244

Series 3R 1, 5.6% 10/1/15

A2

1,000,000

1,031,940

Series 3R 2:

5.45% 9/1/07

A2

650,000

673,842

5.6% 9/1/14

A2

4,275,000

4,410,902

Series 4M, 5.35% 4/1/17

A2

1,000,000

1,009,980

Minnesota Hsg. Fin. Agcy. (Single Family Mtg. Prog.):

Series A, 6.95% 7/1/16

Aa1

540,000

540,000

Series B, 5.8% 7/1/25 (c)

Aa1

7,000,000

7,048,160

Series E, 6.85% 1/1/24 (c)

Aa1

915,000

940,510

Series H, 6.5% 1/1/26 (c)

Aa1

1,530,000

1,564,823

Minnesota Pub. Facilities Auth. Wtr. Poll. Cont. Rev.:

Series A:

5% 3/1/06

Aaa

1,000,000

1,051,210

5% 3/1/16

Aaa

1,000,000

1,001,610

6% 3/1/07

Aaa

2,500,000

2,756,875

Series B:

5.125% 3/1/13

Aaa

1,000,000

1,029,640

5.125% 3/1/15

Aaa

5,000,000

5,083,700

Mounds View Independent School District #621 Series 2000 A, 5.375% 2/1/24

Aa1

3,000,000

3,042,090

Northern Muni. Pwr. Agcy. Elec. Sys. Rev.:

Series B:

4.75% 1/1/20 (AMBAC Insured)

Aaa

3,500,000

3,286,185

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Minnesota - continued

Northern Muni. Pwr. Agcy. Elec. Sys. Rev.: - continued

5.5% 1/1/18 (AMBAC Insured)

Aaa

$ 4,500,000

$ 4,589,910

5.25% 1/1/13 (FSA Insured)

Aaa

1,500,000

1,563,030

5.375% 1/1/14 (FSA Insured)

Aaa

8,500,000

8,871,535

Northfield College Facilities Rev. (Saint Olaf College Proj.):

6.3% 10/1/12

A3

1,455,000

1,518,860

6.4% 10/1/21

A3

1,690,000

1,750,536

Osseo Independent School District #279 (School Bldg. Proj.):

Series 2000 A, 5.25% 2/1/21

Aa1

2,625,000

2,649,938

Series A:

5.75% 2/1/11

Aa1

2,420,000

2,659,096

5.75% 2/1/12

Aa1

3,100,000

3,360,400

Prior Lake Ind. School District #719 Series 2000, 5.5% 2/1/15 (FSA Insured)

Aaa

1,000,000

1,049,580

Robbinsdale Independent School District #281 5% 2/1/09

Aa1

2,035,000

2,135,712

Rochester Health Care Facilities Rev.:

(Mayo Foundation Proj.):

Series A, 5.5% 11/15/27

AA+

5,750,000

5,836,020

Series H, 6.026% 11/15/15

AA+

13,000,000

13,423,150

(Mayo Foundation/Mayo Med. Ctr. Proj.) Series I:

5.875% 11/15/08

AA+

1,000,000

1,107,910

5.9% 11/15/09

AA+

1,000,000

1,114,020

Roseville Independent School District #623 (School District Cr. Enhancement Prog.)
Series A:

5% 2/1/14 (FSA Insured)

Aaa

1,460,000

1,483,681

5% 2/1/15 (FSA Insured)

Aaa

1,015,000

1,023,699

Saint Cloud Health Care Rev. (Saint Cloud Hosp. Group Oblig. Proj.) Series A:

5.75% 5/1/26 (FSA Insured)

Aaa

4,500,000

4,715,505

5.875% 5/1/30 (FSA Insured)

Aaa

4,000,000

4,217,920

Saint Cloud Hosp. Facilities Rev. (Saint Cloud Hosp. Proj.):

Series A, 5.5% 7/1/05 (AMBAC Insured)

Aaa

995,000

1,060,471

Series B, 5% 7/1/20 (AMBAC Insured)

Aaa

1,000,000

980,710

Saint Cloud Independent School District #742 Series A, 6.1% 2/1/10 (FGIC Insured)

Aaa

1,000,000

1,035,680

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Minnesota - continued

Saint Louis Park Health Care Facilities Rev.:

(Healthsystem Obligated Proj.) Series A, 5.2% 7/1/23 (AMBAC Insured)

Aaa

$ 2,750,000

$ 2,707,568

Series B, 5.1% 7/1/13 (AMBAC Insured)

Aaa

3,600,000

3,629,736

Saint Louis Park Independent School District #283:

5.65% 2/1/16

Aa1

2,630,000

2,756,924

5.75% 2/1/20

Aa1

3,765,000

3,933,898

Saint Paul Gen. Oblig. (Block 39 Proj.) 4.75% 2/1/25

Aa2

2,000,000

1,863,100

Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Regions Hosp. Proj.) 5.3% 5/15/28

BBB+

2,600,000

2,232,386

Saint Paul Independent School District #625:

Series B, 5.8% 2/1/12

Aa1

1,200,000

1,253,316

Series 2000 A, 5.5% 2/1/21

Aa1

1,060,000

1,087,772

Series C:

6.125% 2/1/03

Aa3

1,225,000

1,280,444

6.125% 2/1/04

Aa3

1,300,000

1,385,189

6.125% 2/1/05

Aa3

1,350,000

1,462,320

Saint Paul Port Auth. Energy Park Tax Increment Rev. 5% 2/1/08 (FSA Insured)

Aaa

2,500,000

2,612,075

Seaway Port Auth. Duluth Indl. Dev. Dock & Wharf Rev. (Cargill, Inc. Proj.) Series B, 6.8% 5/1/12 (e)

A1

2,750,000

2,858,763

Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series A, 5% 1/1/12

A2

6,500,000

6,562,010

Stillwater Independent School District #834 5% 2/1/05 (b)

Aa1

2,935,000

3,036,258

Suburban Hennepin Reg'l. Park District 5% 2/1/12

Aa1

1,000,000

1,022,760

Univ. of Minnesota Gen. Oblig. 4.8% 8/15/03

Aa2

15,800,000

16,165,447

Washington County Gen. Oblig. 5.5% 2/1/21

Aa2

1,450,000

1,487,990

West Saint Paul Independent School District #197:

0% 2/1/02 (MBIA Insured)

Aaa

1,550,000

1,524,503

0% 2/1/03 (MBIA Insured)

Aaa

1,180,000

1,119,773

Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Rev. Series A:

5.375% 1/1/08 (AMBAC Insured)

Aaa

3,900,000

4,155,450

5.4% 1/1/09 (AMBAC Insured)

Aaa

4,325,000

4,590,685

5.5% 1/1/11 (AMBAC Insured)

Aaa

1,000,000

1,059,140

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Minnesota - continued

Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Rev. Series A: - continued

5.5% 1/1/12 (AMBAC Insured)

Aaa

$ 1,000,000

$ 1,054,480

6.25% 1/1/04 (AMBAC Insured)

Aaa

2,600,000

2,768,350

6.25% 1/1/05 (AMBAC Insured)

Aaa

3,000,000

3,249,240

6.375% 1/1/16 (Escrowed to Maturity) (d)

Aaa

1,740,000

1,943,284

Western Minnesota Muni. Pwr. Agcy. Transmission Rev. Series A, 5.5% 1/1/09 (AMBAC Insured)

Aaa

1,000,000

1,077,540

296,624,228

Puerto Rico - 2.8%

Puerto Rico Commonwealth Gen. Oblig.
Series A, 6% 7/1/14 (Pre-Refunded to 7/1/02 @ 101.5) (d)

Baa1

1,000,000

1,048,100

Puerto Rico Commonwealth Hwy. & Trans.
Auth. Hwy. Rev.:

Series 1996 Y, 5% 7/1/36 (FSA Insured)

Aaa

1,500,000

1,459,425

Series Y, 5.5% 7/1/36 (FSA Insured)

Aaa

2,680,000

2,805,236

Puerto Rico Commonwealth Hwy. & Trans.
Auth. Rev.:

Series A, 4.75% 7/1/38 (MBIA Insured)

Aaa

1,045,000

961,984

Series B, 6% 7/1/31

Baa1

2,000,000

2,173,400

8,448,145

TOTAL INVESTMENT PORTFOLIO - 99.7%

(Cost $295,196,152)

305,072,373

NET OTHER ASSETS - 0.3%

1,014,122

NET ASSETS - 100%

$ 306,086,495

Legend

(a) S&P credit ratings are used in the absence of a rating by Moody's Investors Service, Inc.

(b) Security purchased on a delayed delivery or when-issued basis.

(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(d) Security collateralized by an amount sufficient to pay interest and principal.

(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost

Seaway Port Auth. Duluth Indl. Dev. Dock & Wharf Rev. (Cargill, Inc. Proj.) Series B, 6.8% 5/1/12

5/20/92

$ 2,750,000

Other Information

The composition of long-term debt holdings as a percentage of total value of investments in securities, is as follows (ratings are unaudited):

Moody's Ratings

S&P Ratings

Aaa, Aa, A

86.3%

AAA, AA, A

73.4%

Baa

1.9%

BBB

1.9%

Ba

0.0%

BB

0.0%

B

0.0%

B

0.0%

Caa

0.0%

CCC

0.0%

Ca, C

0.0%

CC, C

0.0%

D

0.0%

Purchases and sales of securities, other than short-term securities, aggregated $32,283,265 and $12,282,818, respectively.

The fund invested in securities that are not registered under the Securities Act of 1933. At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $2,858,763 or 0.9% of net assets.

The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows:

General Obligations

30.5%

Health Care

18.1

Education

14.6

Electric Utilities

14.0

Transportation

5.5

Special Tax

5.1

Others * (individually less than 5%)

12.2

100.0%

* Includes net other assets.

Income Tax Information

At June 30, 2001, the aggregate cost of investment securities for income tax purposes was $294,678,816. Net unrealized appreciation aggregated $10,393,557, of which $11,872,775 related to appreciated investment securities and $1,479,218 related to depreciated investment securities.

At December 31, 2000, the fund had a capital loss carryforward of approximately $3,299,000 of which $2,562,000 and $737,000 will expire on December 31, 2003 and 2008, respectively.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

June 30, 2001 (Unaudited)

Assets

Investment in securities, at value (cost $295,196,152) - See accompanying schedule

$ 305,072,373

Cash

5,852,308

Receivable for fund shares sold

63,073

Interest receivable

5,235,561

Other receivables

16,845

Total assets

316,240,160

Liabilities

Payable for investments purchased on a
delayed delivery basis

$ 9,703,341

Payable for fund shares redeemed

31,521

Distributions payable

283,965

Accrued management fee

95,269

Other payables and accrued expenses

39,569

Total liabilities

10,153,665

Net Assets

$ 306,086,495

Net Assets consist of:

Paid in capital

$ 298,703,363

Undistributed net investment income

55,963

Accumulated undistributed net realized
gain (loss) on investments

(2,549,052)

Net unrealized appreciation (depreciation) on investments

9,876,221

Net Assets, for 27,292,740 shares outstanding

$ 306,086,495

Net Asset Value, offering price and redemption price
per share ($306,086,495 ÷ 27,292,740 shares)

$11.21

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements - continued

Statement of Operations

Six months ended June 30, 2001 (Unaudited)

Investment Income

Interest

$ 7,763,691

Expenses

Management fee

$ 567,847

Transfer agent fees

120,702

Accounting fees and expenses

45,892

Non-interested trustees' compensation

624

Custodian fees and expenses

2,490

Registration fees

17,981

Audit

14,175

Legal

801

Total expenses before reductions

770,512

Expense reductions

(96,285)

674,227

Net investment income

7,089,464

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on investment securities

716,706

Change in net unrealized appreciation (depreciation)
on investment securities

(366,300)

Net gain (loss)

350,406

Net increase (decrease) in net assets resulting
from operations

$ 7,439,870

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

Six months ended
June 30, 2001
(Unaudited)

Year ended
December 31,
2000

Increase (Decrease) in Net Assets

Operations
Net investment income

$ 7,089,464

$ 13,731,717

Net realized gain (loss)

716,706

(432,169)

Change in net unrealized appreciation (depreciation)

(366,300)

15,013,982

Net increase (decrease) in net assets resulting
from operations

7,439,870

28,313,530

Distributions to shareholders from net investment income

(7,034,481)

(13,649,249)

Share transactions
Net proceeds from sales of shares

29,927,901

39,368,838

Reinvestment of distributions

5,290,025

10,158,618

Cost of shares redeemed

(23,209,664)

(55,554,857)

Net increase (decrease) in net assets resulting
from share transactions

12,008,262

(6,027,401)

Redemption fees

7,290

-

Total increase (decrease) in net assets

12,420,941

8,636,880

Net Assets

Beginning of period

293,665,554

285,028,674

End of period (including undistributed net investment income of $55,963 and $6,979, respectively)

$ 306,086,495

$ 293,665,554

Other Information

Shares

Sold

2,660,172

3,643,787

Issued in reinvestment of distributions

471,285

939,942

Redeemed

(2,064,926)

(5,169,729)

Net increase (decrease)

1,066,531

(586,000)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

Six months ended
June 30, 2001

Years ended December 31,

(Unaudited)

2000

1999

1998

1997

1996

Selected Per-Share Data

Net asset value, beginning of period

$ 11.200

$ 10.630

$ 11.410

$ 11.330

$ 10.940

$ 11.100

Income from Invest-
ment Operations
Net investment
income

.265 D, F

.529 D

.511

.531

.551

.562

Net realized and unrealized gain (loss)

.008 F

.568

(.780)

.080

.390

(.160)

Total from investment operations

.273

1.097

(.269)

.611

.941

.402

Less Distributions

From net investment income

(.263)

(.527)

(.511)

(.531)

(.551)

(.562)

Redemption fees added to paid
in capital

.000

-

-

-

-

-

Net asset value,
end of period

$ 11.210

$ 11.200

$ 10.630

$ 11.410

$ 11.330

$ 10.940

Total Return B, C

2.45%

10.62%

(2.43)%

5.51%

8.85%

3.78%

Ratios and Supplemental Data

Net assets, end of period (000 omitted)

$ 306,086

$ 293,666

$ 285,029

$ 312,036

$ 296,607

$ 294,432

Ratio of expenses to average net assets before expense reductions

.52% A

.52%

.53%

.59%

.58%

.60%

Ratio of expenses to average net assets after voluntary waivers

.52% A

.52%

.53%

.55%

.56%

.60%

Ratio of expenses to average net assets after all expense reductions

.45% A, E

.46% E

.51% E

.55%

.56%

.60%

Ratio of net invest-
ment income to average net assets

4.75% A, F

4.90%

4.62%

4.68%

5.00%

5.15%

Portfolio turnover rate

8% A

18%

21%

17%

18%

17%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Net investment income per share has been calculated based on average shares outstanding during the period.

E FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses.

F Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The effect of this change during the period was to increase net investment income (loss) per share by $.018 and decrease net realized and unrealized gain (loss) per share by $.018. Without this change the Ratio of net investment income (loss) to average net assets would have been 4.43%. Per share, ratios and supplemental data for prior periods have not been restated to reflect this change in presentation.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2001 (Unaudited)

1. Significant Accounting Policies.

Spartan Minnesota Municipal Income Fund (the fund) is a fund of Fidelity Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company organized as a Massachusetts business trust. The fund may be affected by economic and political developments in the state of Minnesota. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Security Valuation. The fund calculates its net asset value per share as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Securities are valued based upon a computerized matrix system and/or appraisals by a pricing service, both of which consider market transactions and dealer-supplied valuations. Securities (including restricted securities) for which quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost or original cost plus accrued interest, both of which approximate current value. Investments in open-end investment companies are valued at their net asset value each business day.

Income Taxes. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the fund is not subject to income taxes to the extent that it distributes all of its taxable income for its fiscal year. The Schedule of Investments includes information regarding income taxes, if any, under the caption "Income Tax Information."

Investment Income. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Distributions to Shareholders. Distributions are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date.

Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences, which may result in distribution reclassifications, are primarily due to differing treatments for futures transactions, market discount, capital loss carryforwards and losses deferred due to futures and excise tax regulations. The fund also utilized earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Distributions to Shareholders - continued

Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Undistributed net investment income and accumulated undistributed net realized gain (loss) on investments may include temporary book and tax basis differences which will reverse in a subsequent period. Any taxable income or gain remaining at fiscal year end is distributed in the following year.

Short-Term Trading (Redemption) Fees. Shares held in the fund less than 30 days are subject to a short-term trading fee equal to .50% of the proceeds of the redeemed shares. The fee, which is retained by the fund, is accounted for as an addition to paid in capital.

Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost.

Change in Accounting Principle. Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The cumulative effect of this accounting change had no impact on total net assets of the fund, but resulted in a $468,648 increase to the cost of securities held and a corresponding increase to accumulated net undistributed realized gain (loss), based on securities held by the fund on January 1, 2001.

The effect of this change during the period, was to increase net investment income by $52,741; decrease net unrealized appreciation/depreciation by $51,481, and decrease net realized gain (loss) by $1,260. The Statement of Changes in net assets and financial highlights for the prior periods have not been restated to reflect this change in presentation.

2. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is "marked to market" daily and equivalent deliverable securities are held for the transaction. The values of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Operating Policies - continued

Restricted Securities. The fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included under the captions "Legend" and/or "Other Information" at the end of the fund's Schedule of Investments.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. Fees and Other Transactions with Affiliates.

Management Fee. As the fund's investment adviser, Fidelity Management & Research Company (FMR) receives a monthly fee that is calculated on the basis of a group fee rate plus a fixed individual fund fee rate applied to the average net assets of the fund. The group fee rate is the weighted average of a series of rates and is based on the monthly average net assets of all the mutual funds advised by FMR. The rates ranged from .0920% to .3700% for the period. The annual individual fund fee rate is .25%. In the event that these rates were lower than the contractual rates in effect during the period, FMR voluntarily implemented the above rates, as they resulted in the same or a lower management fee. For the period, the management fee was equivalent to an annualized rate of .38% of average net assets.

Sub-Adviser Fee. As the fund's investment sub-adviser, Fidelity Investments Money Management, Inc.(FIMM), an affiliate of FMR, FIMM receives a fee from FMR of 50% of the management fee payable to FMR. The fee is paid prior to any voluntary expense reimbursements which may be in effect.

Transfer Agent and Accounting Fees. Citibank, N.A.(Citibank) is the custodian, transfer agent and shareholder servicing agent for the fund. Citibank has entered into a sub-contract with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the fund's transfer and shareholder servicing agent and accounting functions. The fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.

For the period, the transfer agent fees were equivalent to an annualized rate of .08% of average net assets.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Expense Reductions.

Through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and transfer expenses by $2,490 and $93,795, respectively.

Semiannual 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

If you are not currently on the Internet, call EarthLink Sprint at 1-800-288-2967, and be sure to ask for registration number SMD004 to receive a special Fidelity package that includes 30 days of free Internet access. EarthLink is North America's #1 independent Internet access provider.

(computer_graphic)

Fidelity On-line Xpress+®

Fidelity On-line Xpress+ software for Windows combines comprehensive portfolio management capabilities, securities trading and access to research and analysis tools . . . all on your desktop. Call Fidelity at 1-800-544-0240 or visit our web site for more information on how to manage your investments via your PC.

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.

Semiannual Report

To Write Fidelity

If more than one address is listed, please locate the address that is closest to you. We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

(letter_graphic)

Making Changes
To Your Account

(such as changing name, address, bank, etc.)

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002

(letter_graphic)

For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048

Selling shares

Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602

Overnight Express
Fidelity Investments
Attn: Redemptions - CP6I

400 East Las Colinas Blvd.
Irving, TX 75039-5587

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)

For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602

Overnight Express
Fidelity Investments
Attn: Redemptions - CP5L

400 East Las Colinas Blvd.
Irving, TX 75039-5587

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

To Visit Fidelity

For directions and hours,
please call 1-800-544-9797.

Arizona

7373 N. Scottsdale Road
Scottsdale, AZ

California

815 East Birch Street
Brea, CA

851 East Hamilton Avenue
Campbell, CA

527 North Brand Boulevard
Glendale, CA

19200 Von Karman Avenue
Irvine, CA

10100 Santa Monica Blvd.
Los Angeles, CA

251 University Avenue
Palo Alto, CA

1760 Challenge Way
Sacramento, CA

7676 Hazard Center Drive
San Diego, CA

8 Montgomery Street
San Francisco, CA

950 Northgate Drive
San Rafael, CA

1400 Civic Drive
Walnut Creek, CA

6300 Canoga Avenue
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Colorado

1625 Broadway
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Connecticut

48 West Putnam Avenue
Greenwich, CT

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New Haven, CT

300 Atlantic Street
Stamford, CT

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Delaware

222 Delaware Avenue
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Florida

4400 N. Federal Highway
Boca Raton, FL

90 Alhambra Plaza
Coral Gables, FL

4090 N. Ocean Boulevard
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1907 West State Road 434
Longwood, FL

8880 Tamiami Trail, North
Naples, FL

2401 PGA Boulevard
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Sarasota, FL

1502 N. Westshore Blvd.
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Georgia

3445 Peachtree Road, N.E.
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Illinois

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Chicago, IL

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Indiana

4729 East 82nd Street
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Maine

Three Canal Plaza
Portland, ME

Maryland

7401 Wisconsin Avenue
Bethesda, MD

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Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

25 State Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

416 Belmont Street
Worcester, MA

Semiannual Report

Michigan

280 Old N. Woodward Ave.
Birmingham, MI

29155 Northwestern Hwy.
Southfield, MI

Minnesota

7600 France Avenue South
Edina, MN

Missouri

700 West 47th Street
Kansas City, MO

8885 Ladue Road
Ladue, MO

New Jersey

150 Essex Street
Millburn, NJ

56 South Street
Morristown, NJ

501 Route 17, South
Paramus, NJ

New York

1055 Franklin Avenue
Garden City, NY

999 Walt Whitman Road
Melville, L.I., NY

1271 Avenue of the Americas
New York, NY

71 Broadway
New York, NY

350 Park Avenue
New York, NY

North Carolina

4611 Sharon Road
Charlotte, NC

Ohio

600 Vine Street
Cincinnati, OH

28699 Chagrin Boulevard
Woodmere Village, OH

Oregon

16850 SW 72nd Avenue
Tigard, OR

Pennsylvania

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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC

Semiannual Report

Semiannual Report

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Adviser

Fidelity Investments Money
Management Inc.

Officers

Edward C. Johnson 3d, President

Abigail P. Johnson, Senior Vice President

Dwight D. Churchill, Vice President

Christine J. Thompson, Vice President

Boyce I. Greer, Vice President

Eric D. Roiter, Secretary

Robert A. Dwight, Treasurer

Maria F. Dwyer, Deputy Treasurer

Stanley N. Griffith, Assistant Vice President

John H. Costello, Assistant Treasurer

Paul F. Maloney, Assistant Treasurer

Thomas J. Simpson, Assistant Treasurer

Board of Trustees

J. Michael Cook *

Ralph F. Cox *

Phyllis Burke Davis *

Robert M. Gates *

Abigail P. Johnson

Edward C. Johnson 3d

Donald J. Kirk *

Marie L. Knowles *

Ned C. Lautenbach *

Peter S. Lynch

Marvin L. Mann *

William O. McCoy *

Advisory Board

Robert C. Pozen

William S. Stavropoulos

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* Independent trustees

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Fidelity's Municipal Bond Funds

Spartan® Arizona Municipal Income

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Spartan Intermediate Municipal Income

Spartan Maryland Municipal Income

Spartan Massachusetts Municipal Income

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Spartan Minnesota Municipal Income

Spartan Municipal Income

Spartan New Jersey Municipal Income

Spartan New York Municipal Income

Spartan Ohio Municipal Income

Spartan Pennsylvania Municipal Income

Spartan Short-Intermediate
Municipal Income

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Spartan®

Ohio Municipal Income
Fund

and

Fidelity ®
Ohio Municipal Money Market
Fund

Semiannual Report

June 30, 2001

(2_fidelity_logos)(registered trademark)

Contents

President's Message

<Click Here>

Ned Johnson on investing strategies.

Spartan Ohio Municipal Income Fund

Performance

<Click Here>

How the fund has done over time.

Fund Talk

<Click Here>

The manager's review of fund performance, strategy and outlook.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Fidelity Ohio Municipal Money Market Fund

Performance

<Click Here>

How the fund has done over time.

Fund Talk

<Click Here>

The manager's review of fund performance, strategy and outlook.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months
and one year.

Investments

<Click Here>

A complete list of the fund's investments.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Proxy Voting Results

<Click Here>

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

(Recycle graphic)   This report is printed on recycled paper using soy-based inks.

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.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Neither the funds nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Semiannual Report

President's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Amid a slowing economy highlighted by frequent corporate earnings disappointments, mounting unemployment and waning consumer confidence, equity investors abandoned expensive, large-cap growth stocks in favor of the current earnings delivered by small- and mid-cap value stocks during the first six months of 2001. Fixed-income investments also offered a measure of stability, as corporate, mortgage and agency securities generally outperformed many popular equity indexes through the mid-point of the year.

While it's impossible to predict the future direction of the markets with any degree of certainty, there are certain basic principles that can help investors plan for their future needs.

The longer your investment time frame, the less likely it is that you will be affected by short-term market volatility. A 10-year investment horizon appropriate for saving for a college education, for example, enables you to weather market cycles in a long-term fund, which may have a higher risk potential, but also has a higher potential rate of return.

An intermediate-length fund could make sense if your investment horizon is two to four years, while a short-term bond fund could be the right choice if you need your money in one or two years.

If your time horizon is less than a year, you might want to consider moving some of your bond investment into a money market fund. These funds seek income and a stable share price by investing in high-quality, short-term investments. Of course, it's important to remember that an investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these types of funds.

Finally, no matter what your time horizon or portfolio diversity, it makes good sense to follow a regular investment plan, investing a certain amount of money in a fund at the same time each month or quarter and periodically reviewing your overall portfolio. By doing so, you won't get caught up in the excitement of a rapidly rising market, nor will you buy all your shares at market highs. While this strategy - known as dollar cost averaging - won't assure a profit or protect you from a loss in a declining market, it should help you lower the average cost of your purchases. Of course, you should consider your financial ability to continue your purchases through periods of low price levels before undertaking such a strategy.

If you have questions, please call us at 1-800-544-6666, or visit our web site at www.fidelity.com. We are available 24 hours a day, seven days a week to provide you the information you need to make the investments that are right for you.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Spartan Ohio Municipal Income Fund

Performance: The Bottom Line

There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). You can also look at the fund's income, as reflected in its yield, to measure performance. If Fidelity had not reimbursed certain fund expenses, the past five year, and past 10 year total returns would have been lower.

Cumulative Total Returns

Periods ended June 30, 2001

Past 6
months

Past 1
year

Past 5
years

Past 10
years

Spartan OH Municipal Income

2.61%

9.75%

34.59%

92.39%

LB Ohio 4 Plus Year Enhanced Municipal Bond

2.91%

10.10%

36.23%

n/a*

Ohio Municipal Debt Funds Average

2.25%

8.76%

29.59%

87.14%

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Lehman Brothers Ohio 4 Plus Year Enhanced Municipal Bond Index - a market value-weighted index of Ohio investment-grade municipal bonds with maturities of four years or more. To measure how the fund's performance stacked up against its peers, you can compare it to the Ohio municipal debt funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 47 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.

Average Annual Total Returns

Periods ended June 30, 2001

Past 1
year

Past 5
years

Past 10
years

Spartan OH Municipal Income

9.75%

6.12%

6.76%

LB Ohio 4 Plus Year Enhanced Municipal Bond

10.10%

6.38%

n/a*

Ohio Municipal Debt Funds Average

8.76%

5.31%

6.46%

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year. (Note: Lipper calculates average annual total returns by annualizing each fund's total return, then taking the arithmetic average. This may produce a different figure than that obtained by averaging cumulative total returns and annualizing the result.)

* Not available


Semiannual Report

Spartan Ohio Municipal Income Fund

Performance - continued

$10,000 Over 10 Years



$10,000 Over 10 Years: Let's say hypothetically that $10,000 was invested in Spartan Ohio Municipal Income Fund on June 30, 1991. As the chart shows, by June 30, 2001, the value of the investment would have grown to $19,239 - a 92.39% increase on the initial investment. For comparison, look at how the Lehman Brothers Municipal Bond Index - a market value-weighted index of investment-grade municipal bonds with maturities of one year or more - did over the same period. With dividends reinvested, the same $10,000 would have grown to $19,967 - a 99.67% increase.

Understanding
Performance

How a fund did yesterday is no guarantee of how it will do tomorrow. Bond prices, for example, generally move in the opposite direction of interest rates. In turn, the share price, return and yield of a fund that invests in bonds will vary. That means if you sell your shares during a market downturn, you might lose money. But if you can ride out the market's ups and downs, you may have a gain.

3

Semiannual Report

Spartan Ohio Municipal Income Fund

Performance - continued

Total Return Components

Six months ended June 30,

Years ended December 31,

2001

2000

1999

1998

1997

1996

Dividend returns

2.35%

5.42%

4.48%

4.69%

5.08%

4.98%

Capital returns

0.26%

6.26%

-7.31%

1.10%

3.66%

-0.75%

Total returns

2.61%

11.68%

-2.83%

5.79%

8.74%

4.23%

Total Return Components include both dividend returns and capital returns. A dividend return reflects the actual dividends paid by the fund. A capital return reflects both the amount paid by the fund to shareholders as capital gain distributions and changes in the fund's share price. Both returns assume the dividends or capital gains if any, paid by the fund, are reinvested.

Dividends and Yield

Periods ended June 30, 2001

Past 1
month

Past 6
months

Past 1
year

Dividends per share

4.44¢

26.91¢

54.89¢

Annualized dividend rate

4.66%

4.67%

4.80%

30-day annualized yield

4.19%

-

-

30-day annualized tax-equivalent yield

7.04%

-

-

Dividends per share show the income paid by the fund for a set period. If you annualize this number, based on an average share price of $11.60 over the past one month, $11.61 over the past six months and $11.43 over the past one year, you can compare the fund's income over these three periods. The 30-day annualized yield is a standard formula for all bond funds based on the yields of the bonds in the fund, averaged over the past 30 days. This figure shows you the yield characteristics of the fund's investments at the end of the period. It also helps you compare funds from different companies on an equal basis. The tax-equivalent yield shows what you would have to earn on a taxable investment to equal the fund's tax-free yield, if you're in the 40.47% combined effective federal and state tax bracket, but does not reflect payment of the federal alternative minimum tax, if applicable.

Semiannual Report

Spartan Ohio Municipal Income Fund

Fund Talk: The Manager's Overview

Market Recap

In an effort to kick-start the sputtering U.S. economy, the Federal Reserve Board reduced key short-term interest rates six times during the first half of 2001, lowering the fed funds target rate from 6.50% to 3.75%. While the full effect of these cuts likely won't be felt for several months, they had an immediate impact on the performance of tax-free municipal bonds, particularly those of short and intermediate maturity, which typically benefit in a declining interest-rate environment. The muni market also received a boost given the steady demand from institutional, retail and high-net-worth investors, as well as an encouraging credit upgrade environment. For the overall six-month period ending June 30, 2001, the Lehman Brothers Municipal Bond Index - an index of approximately 40,000 investment-grade, fixed-rate, tax-exempt bonds, gained 2.88%. As is often the case in financial markets, some of the good news was offset by several factors. In April, for instance, the $25 billion downgrade of California's general obligation bonds - the largest muni downgrade on record - tempered performance. Additionally, as interest rates continued to trend downward, so did the prices of long-term munis. Also, President Bush's newly enacted tax program raised moderate concerns about higher muni supply and lower muni demand going forward.

(Portfolio Manager photograph)
An interview with George Fischer, Portfolio Manager of Spartan Ohio Municipal Income Fund

Q. How did the fund perform, George?

A. For the six-month period that ended June 30, 2001, the fund had a total return of 2.61%. To get a sense of how the fund did relative to its competitors, the Ohio municipal debt funds average returned 2.25% for the same six-month period, according to Lipper Inc. Additionally, the Lehman Brothers Ohio 4 Plus Year Enhanced Municipal Bond Index, which tracks the types of securities in which the fund invests, returned 2.91%. For the 12-month period that ended June 30, 2001, the fund had a total return of 9.75%. In comparison, the Ohio municipal debt funds average returned 8.76% and the Lehman Brothers index returned 10.10% for the same 12-month period.

Q. What factors characterized the investing environment during the past six months, and how did they affect the fund's performance?

A. Falling interest rates and balanced supply and demand conditions helped municipal bonds rally and boost the fund's returns. The Federal Reserve Board, looking to stimulate spending and prevent a recession, cut short-term rates six times in as many months between January and June by a combined total of 2.75 percentage points, pushing bond yields lower and their prices higher. Favorable supply and demand conditions also boosted the market. The supply of Ohio municipals increased somewhat throughout the period, although demand remained reasonably strong as investors sought out alternatives to the wobbly stock market. The fund's total return for the period reflects the combination of price gains or losses plus the income generated by its holdings.

Semiannual Report

Spartan Ohio Municipal Income Fund
Fund Talk: The Manager's Overview - continued

Q. Which strategies worked in the fund's favor during the past six months?

A. The fund's fairly even diversification among bonds with various maturities was a positive contributor to performance. Long-maturity bonds of many types - including municipals - underperformed because inflation crept slightly higher, and there were growing concerns that lower interest rates could cause price increases in the future. By spreading the fund's investments among short-, intermediate- and long-term bonds, the fund benefited from this "steepening" of the yield curve. That said, the fund's stake in long-maturity bonds proved disappointing during the period.

Q. Were there any sectors that performed better or worse than others?

A. Yes, there were. After posting dismal results in 2000, many hospital bonds performed well in the first half of 2001 thanks to cost cutting, price increases and higher insurance reimbursements. These positive developments helped many of the fund's health care holdings. On the flip side, the fund's small stake in municipal bonds backed by a given corporation - known as industrial development bonds - generally performed poorly as corporate profits eroded.

Q. What changes, if any, did you make to the fund's investments in response to the weakening economy?

A. I didn't really make any major changes. Last year, I anticipated the economic weakness and I approached the market fairly cautiously in terms of credit quality. The economy had been good for so long that it was easy to get lulled into complacency. However, I maintained the fund's emphasis on bonds with higher credit ratings, by having nearly 95% of the fund's investments in investment-grade bonds rated A or higher by Moody's or Standard & Poor's®. I also tilted the fund's investments toward essential services bonds, such as those issued by water, sewer, utility and transportation entities. Their revenues, which come in the form of fees and tolls, tend to be more stable in a slowing economy compared to general obligation bonds (GOs), which are backed by sales, income and other taxes.

Q. What's ahead for the municipal market and the fund?

A. The Fed continues to state that it's far more worried about a possible recession than it is about potential inflation. Given that, many observers are expecting rates to come down from current levels. If that's the case, municipal bonds could benefit. From a valuation standpoint, municipals remain attractive relative to U.S. Treasury securities, which could continue to fuel demand. A Aaa-rated general obligation bond issued by the state of Ohio offered a tax-equivalent yield of more than 8.00% at the end of June, compared with the 30-year Treasury bond that carried a yield of about 5.75%. Attractive prices and relatively high tax-free yields could bode well for continued strong demand for municipals, ultimately aiding their performance.

Semiannual Report

Spartan Ohio Municipal Income Fund
Fund Talk: The Manager's Overview - continued

The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Fund Facts

Goal: high current tax-free income for Ohio residents by normally investing in investment-grade municipal securities whose interest is free from federal income tax and Ohio personal income tax

Fund number: 088

Trading symbol: FOHFX

Start date: November 15, 1985

Size: as of June 30, 2001, more than $393 million

Manager: George Fischer, since 1997; manager, various Fidelity and Spartan municipal income funds; joined Fidelity in 1989

3

George Fischer on the weaker economy's effect on Ohio's municipal issuers:

"Weakening economic conditions have forced most states - including Ohio - and municipalities to re-evaluate their current budgets and assumptions about the future. A slowing economy has curtailed tax receipts, including key revenues such as corporate taxes, personal income taxes and sales taxes. Furthermore, the stock market's weakness has cut into revenue generated by taxes on stock-option profits and capital gains. This financial pinch has been exacerbated by rising expenses - particularly health care and education costs. Just a short time after enjoying surpluses, many issuers in Ohio and across the nation now are being forced to consider cutting spending on a wide range of programs.

"As a manager of municipal bond funds, my job is to monitor the economy's ebbs and flows to determine how they'll affect revenue collections. So far, I think that the issuers of bonds in which the fund invests have done a decent job of dealing with slower revenue growth. But, as always, I'll keep a close eye on these developments, looking for problems stemming from a slower economy."

Semiannual Report

Spartan Ohio Municipal Income Fund

Investment Changes

Top Five Sectors as of June 30, 2001

% of fund's
net assets

% of fund's net assets
6 months ago

General Obligations

48.5

42.8

Education

10.0

9.9

Escrowed/Pre-Refunded

8.5

7.0

Water & Sewer

6.9

8.6

Health Care

6.6

7.4

Average Years to Maturity as of June 30, 2001

6 months ago

Years

13.9

15.1

Average years to maturity is based on the average time remaining until principal payments are expected from each of the fund's bonds, weighted by dollar amount.

Duration as of June 30, 2001

6 months ago

Years

7.0

7.1

Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example.

Quality Diversification (Moody's Ratings)

As of June 30, 2001

As of December 31, 2000

Aaa 56.8%

Aaa 57.2%

Aa, A 37.8%

Aa, A 34.3%

Baa 3.2%

Baa 6.3%

Ba and Below 0.2%

Ba and Below 0.2%

Not Rated 2.0%

Not Rated 2.0%



Where Moody's ratings are not available, we have used S&P® ratings. Amounts shown are as a percentage of the fund's investments.

Semiannual Report

Spartan Ohio Municipal Income Fund

Investments June 30, 2001

(Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 98.6%

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Ohio - 97.0%

Adams County Valley Local School District:

(Adams & Highland County Proj.) 6.65% 12/1/05 (MBIA Insured)

Aaa

$ 1,000,000

$ 1,118,480

6.65% 12/1/03 (MBIA Insured)

Aaa

1,000,000

1,078,750

6.65% 12/1/04 (MBIA Insured)

Aaa

1,000,000

1,099,920

Akron Gen. Oblig.:

(Parking Facilities Proj.) 8.75% 11/1/03

A1

160,000

179,557

Series 1997, 6% 12/1/12 (MBIA Insured)

Aaa

1,250,000

1,408,263

5.5% 12/1/21

A1

2,000,000

2,054,860

Akron Wtrwks. Rev. (Mtg. Impt. Proj.) 4.875% 3/1/12 (MBIA Insured)

Aaa

2,000,000

2,019,540

Alliance Wtrwks. Rev. 0% 10/15/06
(FGIC Insured) (Escrowed to Maturity) (c)

Aaa

765,000

617,814

Avon Lake City School District 5.5% 12/1/26 (FGIC Insured)

Aaa

2,205,000

2,247,667

Bowling Green Univ. Gen. Receipts:

5.75% 6/1/11 (FGIC Insured)

Aaa

1,425,000

1,574,411

5.75% 6/1/14 (FGIC Insured)

Aaa

1,190,000

1,289,103

5.75% 6/1/16 (FGIC Insured)

Aaa

1,250,000

1,339,925

Buckeye Local School District (Jefferson County Proj.):

0% 12/1/06 (AMBAC Insured)

Aaa

375,000

300,821

0% 12/1/07 (AMBAC Insured)

Aaa

760,000

578,846

Buckeye Valley Local School District Delaware County Series A, 6.85% 12/1/15
(MBIA Insured)

Aaa

2,500,000

2,982,200

Butler County Trans. Impt. District Series 1997 A, 6% 4/1/10 (FSA Insured)

Aaa

1,500,000

1,666,485

Cincinnati Gen. Oblig. (Police & Firemen's Disability Proj.) 6% 12/1/35

Aa1

5,000,000

5,368,900

Cincinnati Student Ln. Fdg. Corp. Student Ln. Rev. Series A:

5.5% 12/1/01 (b)

A1

2,020,000

2,036,988

7.25% 2/1/08 (b)

A

4,000,000

4,004,560

Cincinnati Wtr. Sys. Rev. 5.5% 12/1/09

Aa2

2,200,000

2,376,902

Cleveland Arpt. Sys. Rev. Series A:

5.5% 1/1/08 (FSA Insured) (b)

Aaa

1,500,000

1,596,480

6% 1/1/10 (FGIC Insured) (b)

Aaa

2,620,000

2,768,633

Cleveland Gen. Oblig.:

5.25% 12/1/17 (FGIC Insured)

Aaa

1,355,000

1,376,057

5.375% 9/1/11 (AMBAC Insured)

Aaa

1,960,000

2,073,660

5.5% 9/1/16 (AMBAC Insured)

Aaa

2,000,000

2,065,400

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Ohio - continued

Cleveland Pub. Pwr. Sys. Rev.:

(First Mtg. Prog.):

Series A:

0% 11/15/08 (MBIA Insured)

Aaa

$ 5,480,000

$ 3,968,068

0% 11/15/10 (MBIA Insured)

Aaa

2,685,000

1,737,947

0% 11/15/11 (MBIA Insured)

Aaa

2,685,000

1,644,133

Sub Series 1, 5.125% 11/15/18
(MBIA Insured)

Aaa

2,000,000

2,002,840

5.25% 11/15/14 (MBIA Insured)

Aaa

1,000,000

1,039,050

Cleveland Wtrwks. Rev. (First Mtg. Prog.):

Series F 92A, 6.25% 1/1/15
(AMBAC Insured)

Aaa

125,000

128,608

Series F 92B, 6.25% 1/1/05
(AMBAC Insured)

Aaa

1,000,000

1,034,710

Series H, 5.75% 1/1/16 (MBIA Insured)

Aaa

45,000

47,252

Columbus Gen. Oblig.:

(Various Purp. Proj.) Series 1, 6% 5/15/10 (Pre-Refunded to 5/15/04 @ 102) (c)

Aaa

1,000,000

1,088,720

Series 1, 5.25% 9/15/11

Aaa

2,000,000

2,064,920

Series 1999 2, 5.5% 6/15/12

Aaa

4,000,000

4,312,760

Series D, 5.25% 9/15/11

Aaa

2,000,000

2,064,920

Cuyahoga County Gen. Oblig.:

Series A:

0% 10/1/08 (MBIA Insured)

Aaa

4,000,000

2,911,920

0% 10/1/09 (MBIA Insured)

Aaa

4,200,000

2,886,912

0% 10/1/11 (MBIA Insured)

Aaa

2,400,000

1,478,136

0% 10/1/12 (MBIA Insured)

Aaa

1,505,000

872,554

0% 10/1/13 (MBIA Insured)

Aaa

1,500,000

818,685

5.75% 12/1/11

Aa1

4,350,000

4,775,126

5.75% 12/1/12

Aa1

1,950,000

2,120,235

5.75% 12/1/13

Aa1

2,210,000

2,383,640

5.75% 12/1/14

Aa1

1,460,000

1,571,267

Delaware City School District:

0% 12/1/09 (FGIC Insured)

Aaa

1,000,000

682,180

5.5% 12/1/08 (FGIC Insured)

Aaa

1,400,000

1,488,172

Delaware County Gen. Oblig.:

4.75% 12/1/24 (MBIA Insured)

Aaa

1,900,000

1,755,923

6% 12/1/25

Aa2

1,000,000

1,077,720

6.25% 12/1/20

Aa2

1,250,000

1,377,275

Dublin City School District 0% 12/1/04
(AMBAC Insured)

Aaa

1,930,000

1,701,199

Dublin Gen. Oblig. Series 2000 B, 6% 12/1/15

Aa1

2,000,000

2,186,860

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Ohio - continued

Fairborn City School District (School Impt. Proj.) 5.75% 12/1/26 (FSA Insured)

Aaa

$ 2,200,000

$ 2,307,866

Fairfield City School District:

(School Impt. Proj.):

5% 12/1/10 (FGIC Insured)

Aaa

1,740,000

1,821,554

5.25% 12/1/14 (FGIC Insured)

Aaa

2,430,000

2,529,752

7.1% 12/1/07 (FGIC Insured) (Pre-Refunded to 12/1/05 @ 103) (c)

Aaa

1,120,000

1,308,048

7.45% 12/1/14 (FGIC Insured)

Aaa

1,000,000

1,271,060

Franklin County Gen. Oblig.:

5.375% 12/1/20

Aaa

2,000,000

2,051,620

5.5% 12/1/15

Aaa

1,225,000

1,270,901

5.5% 12/1/16

Aaa

1,290,000

1,334,015

Franklin County Gen. Oblig. Rev.
(Online Computer Library Ctr., Inc. Proj.):

6% 4/15/13

-

3,500,000

3,530,100

7.2% 7/15/06 (Pre-Refunded to 7/15/01 @ 100) (c)

-

1,000,000

1,001,220

Franklin County Hosp. Rev.:

(Holy Cross Health Sys. Corp. Proj.) 5.875% 6/1/21

Aa3

1,000,000

1,024,520

5.5% 5/1/13 (AMBAC Insured)

Aaa

1,130,000

1,202,535

Gallia County Hosp. Facilities Rev. (Holzer Med. Ctr. Proj.) 5.125% 10/1/13 (AMBAC Insured)

Aaa

3,000,000

3,065,820

Gateway Economic Dev. Corp. Greater Cleveland Stadium Rev. Series 1990, 6.5% 9/15/14 (b)

-

3,000,000

3,035,970

Greater Cleveland Reg'l. Trans. Auth. 5.65% 12/1/16 (FGIC Insured) (Pre-Refunded to 12/1/06 @ 101) (c)

Aaa

1,800,000

1,981,512

Greene County Gen. Oblig. Rev. (Fairview Extended Proj.) Series B, 4.5% 1/1/11
(MBIA Insured)

Aaa

2,150,000

2,171,436

Greene County Swr. Sys. Rev. 0% 12/1/09 (AMBAC Insured)

Aaa

775,000

528,690

Greene County Wtr. Sys. Rev. Series A, 6% 12/1/16 (FGIC Insured)

Aaa

2,500,000

2,716,200

Hamilton County Gen. Oblig.:

5.25% 12/1/16

Aa2

1,900,000

1,930,153

5.25% 12/1/17

Aa2

2,005,000

2,034,333

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Ohio - continued

Hamilton County Health Care Sys. Rev.
(Sisters of Charity Health Care Proj.) Series A:

6.25% 5/15/08 (AMBAC Insured) (Pre-Refunded to 5/15/03 @ 101) (c)

Aaa

$ 4,220,000

$ 4,496,663

6.25% 5/15/14 (AMBAC Insured) (Pre-Refunded to 5/15/03 @ 101) (c)

Aaa

1,000,000

1,065,560

Hamilton County Health Sys. Rev. (Providence Hosp./Franciscan Sisters Poor Health Sys. Proj.) 6.875% 7/1/15 (Pre-Refunded to 7/1/02 @ 102) (c)

Baa2

5,000,000

5,301,250

Hamilton County Swr. Sys. Rev. (Metro. Swr. District Proj.) Series A, 5.75% 12/1/25
(MBIA Insured)

Aaa

6,000,000

6,283,020

Hamilton Elec. Sys. Mtg. Rev. Series A:

6% 10/15/09 (FGIC Insured)

Aaa

2,920,000

3,052,597

6% 10/15/12 (FGIC Insured)

Aaa

2,000,000

2,085,180

Hilliard School District:

Series 2001 B, 5.5% 12/1/08

Aa2

2,780,000

3,019,136

Series A, 6% 12/1/05 (FGIC Insured)

Aaa

1,415,000

1,545,562

0% 12/1/11 (FGIC Insured)

Aaa

3,720,000

2,273,143

5.75% 12/1/28 (FGIC Insured)

Aaa

3,005,000

3,157,384

Indian Hill Exempt Village School District Hamilton County:

5.25% 12/1/13

Aa1

2,115,000

2,208,906

5.25% 12/1/14

Aa1

1,275,000

1,320,964

Kings Local School District 6.1% 12/1/25

AA-

6,800,000

7,363,040

Lakewood Gen. Oblig. Series A:

6.6% 12/1/08

Aa3

1,525,000

1,743,456

6.6% 12/1/11

Aa3

1,630,000

1,902,422

Lakota Local School District:

0% 12/1/01

A1

590,000

583,097

0% 12/1/02

Aa3

555,000

530,924

0% 12/1/03

Aa3

260,000

239,520

0% 12/1/04

Aa3

730,000

643,459

0% 12/1/05

Aa3

690,000

580,166

0% 12/1/06

Aa3

650,000

521,423

0% 12/1/07

Aa3

610,000

464,600

5.125% 12/1/26 (FGIC Insured)

Aaa

1,800,000

1,763,820

Licking Heights Local School District
(Facilities Construction & Impt. Proj.) Series A, 5.5% 12/1/24 (FGIC Insured)

Aaa

2,400,000

2,444,520

Lima Swr. Sys. Rev. Impt. 6.3% 12/1/12 (AMBAC Insured)

Aaa

2,500,000

2,624,300

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Ohio - continued

Lowellville San. Swr. Sys. Rev. (Browning-Ferris Industries, Inc. Proj.) 7.25% 6/1/06 (b)

BB-

$ 700,000

$ 710,829

Lucas County Hosp. Rev. (Promedia Health Care Oblig. Group Proj.):

5.375% 11/15/23 (AMBAC Insured)

Aaa

5,000,000

5,034,900

5.625% 11/15/12 (AMBAC Insured)

Aaa

2,000,000

2,137,620

5.625% 11/15/13 (AMBAC Insured)

Aaa

1,200,000

1,276,572

Marion County Hosp. Impt. Rev.
(Cmnty. Hosp. Proj.):

5.7% 5/15/02

BBB+

1,500,000

1,502,745

5.8% 5/15/03

BBB+

1,825,000

1,828,979

6.1% 5/15/06

BBB+

1,000,000

1,004,920

Medina City School District 5.25% 12/1/28 (FGIC Insured)

Aaa

11,175,000

11,128,171

Mentor Exempted Village School District:

0% 12/1/01 (MBIA Insured)

Aaa

795,000

785,945

0% 12/1/03 (MBIA Insured)

Aaa

840,000

773,833

Montgomery County Gen. Oblig. 5.5% 12/1/25

Aa2

2,235,000

2,296,306

Montgomery County Rev. (Catholic Health Initiatives Proj.) Series A, 6% 12/1/19

Aa3

2,000,000

2,098,540

Montgomery County Solid Waste Rev. 6% 11/1/05 (MBIA Insured)

Aaa

1,940,000

2,111,748

Newark Gen. Oblig. (Wtr. Sys. Impt. Proj.) 0% 12/1/07 (AMBAC Insured)

Aaa

455,000

346,546

North Canton School District Impt. 5.9% 12/1/14 (AMBAC Insured) (Pre-Refunded to 12/1/04 @ 102) (c)

Aaa

2,000,000

2,197,820

Northeast Ohio Reg'l. Swr. District Wastewtr. Rev. 6.25% 11/15/04 (AMBAC Insured)

Aaa

1,000,000

1,086,100

Ohio Air Quality Dev. Auth. Rev.:

(Columbus & Southern Pwr. Co. Proj.) Series A, 6.375% 12/1/20 (FGIC Insured)

Aaa

3,000,000

3,129,480

(Dayton Pwr. & Lt. Co. Proj.) 6.1% 9/1/30

A3

4,000,000

4,014,040

Ohio Bldg. Auth.:

(Administration Bldg. Fund Prog.):

Series 1999 A, 5.25% 10/1/11

Aa2

2,155,000

2,271,564

Series A:

4.75% 10/1/17

Aa2

1,000,000

955,020

4.875% 10/1/10

Aa2

1,000,000

1,025,990

(Adult Correctional Proj.):

Series 1999 A, 5.5% 10/1/11

Aa2

3,325,000

3,567,060

Series 2001 A, 5.5% 10/1/09
(FSA Insured)

Aaa

6,000,000

6,500,160

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Ohio - continued

Ohio Bldg. Auth.: - continued

Series A:

5.25% 10/1/17

Aa2

$ 1,000,000

$ 1,011,080

5.75% 4/1/11

Aa2

2,865,000

3,139,209

(Ohio Ctr. for the Arts Proj.) Series A, 5.45% 10/1/07

Aa2

1,300,000

1,397,747

(Sports Facility Bldg. Proj.) Series 1999 A, 5.25% 10/1/12

Aa2

2,940,000

3,072,212

(State Correctional Facilities Proj.) Series A, 5.7% 10/1/04

Aa2

1,125,000

1,199,036

(W. Green Bldg. Proj.) Series A, 4.75% 4/1/14

A2

4,620,000

4,531,619

Ohio Cap. Corp. for Hsg. Multi-family Rev. Series A, 7.5% 1/1/24

AAA

335,000

340,735

Ohio Gen. Oblig.:

(College Savings Prog.):

0% 8/1/09

Aa1

2,290,000

1,585,985

0% 8/1/10

Aa1

2,000,000

1,312,000

0% 8/1/14

Aa1

1,375,000

710,146

6.15% 8/1/10 (Pre-Refunded to 8/1/05
@ 102) (c)

Aa1

3,530,000

3,931,926

6.65% 8/1/05

Aa1

3,000,000

3,333,840

(Infrastructure Impt. Proj.) 6.65% 9/1/09

Aa1

1,000,000

1,136,340

(Parks & Recreation Cap. Facilities Proj.)
Series 2001 IIA, 5.5% 12/1/13

Aa2

2,020,000

2,146,997

Ohio Higher Edl. Facilities Rev.:

(Case Western Reserve Univ. Proj.):

Series B, 6.5% 10/1/20

Aa2

2,250,000

2,639,880

Series C, 5.125% 10/1/17

Aa2

2,985,000

2,989,985

6% 10/1/14

Aa2

1,500,000

1,683,855

6% 10/1/22 (Pre-Refunded to 10/1/02
@ 102) (c)

Aa2

650,000

687,518

6.125% 10/1/15

Aa2

2,000,000

2,266,200

6.25% 10/1/16

Aa2

2,500,000

2,867,700

Series II B, 5.9% 12/1/06 (AMBAC Insured) (Pre-Refunded to 12/1/01 @ 102) (c)

Aaa

1,000,000

1,032,890

Ohio Higher Edl. Facility Commission Rev.:

(Case Western Reserve Univ. Proj.) Series A, 6% 7/1/06

Aa2

1,375,000

1,503,686

(Denison Univ. Proj.):

5.3% 11/1/21

A1

3,775,000

3,784,060

5.5% 11/1/14

A1

1,000,000

1,055,690

(Oberlin College Proj.) 5% 10/1/29

AA

3,000,000

2,831,430

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Ohio - continued

Ohio Hsg. Fin. Agcy. Mtg. Rev.
(Residential Proj.):

Series B2, 5.375% 9/1/19 (b)

AAA

$ 2,585,000

$ 2,609,377

Series C, 4.9% 9/1/26 (b)

Aaa

1,110,000

1,116,704

Ohio Poll. Cont. Rev. (Standard Oil Co.-
BP Petrolium Proj.) 6.75% 12/1/15

Aa2

3,100,000

3,722,728

Ohio Pub. Facilities Commission Rev.
(Mental Health Cap. Facilities Proj.):

Series 2000 IIA, 5.375% 6/1/14

Aa2

2,200,000

2,288,902

Series IIB, 5.125% 6/1/11 (FSA Insured) (Pre-Refunded to 6/1/06 @ 100) (c)

Aaa

2,600,000

2,759,926

Ohio Tpk. Commission Tpk. Rev. Series A:

5.5% 2/15/21 (FGIC Insured)

Aaa

5,000,000

5,290,750

5.6% 2/15/12 (MBIA Insured)

Aaa

2,840,000

3,011,337

5.7% 2/15/13 (MBIA Insured)

Aaa

2,660,000

2,823,430

6% 2/15/06 (FSA Insured)

Aaa

1,000,000

1,087,430

Ohio Univ. Gen. Receipts Series A, 5.8% 12/1/29

Aa2

3,300,000

3,441,405

Ohio Wtr. Dev. Auth. Poll. Cont. Facilites Rev.:

(Wtr. Cont. Ln. Fund Prog.) State Match
Series, 6.5% 12/1/05 (MBIA Insured)

Aaa

2,735,000

3,036,616

(Wtr. Cont. Ln. Fund Proj.) 5.625% 6/1/06 (MBIA Insured)

Aaa

1,035,000

1,109,903

Ohio Wtr. Dev. Auth. Rev.:

(Pure Wtr. Proj.) Series I, 6% 12/1/16 (AMBAC Insured) (Escrowed to Maturity) (c)

Aaa

1,685,000

1,862,296

Impt. (Pure Wtr. Proj.) 5.5% 12/1/18
(AMBAC Insured)

Aaa

2,500,000

2,539,350

Ohio Wtr. Dev. Auth. Solid Waste Disp. Rev. (North Star BHP Steel/Cargill Proj.) 6.3% 9/1/20 (b)

A1

6,350,000

6,562,281

Ottawa County San. Swr. Sys. Rev. (Danbury Proj.) 0% 10/1/06 (AMBAC Insured)

Aaa

1,445,000

1,167,025

Pickerington Local School District 5.8% 12/1/09 (FGIC Insured)

Aaa

1,000,000

1,105,810

Plain Local School District 6% 12/1/25
(FGIC Insured)

Aaa

5,500,000

5,892,975

Portage County Hosp. Rev. (Robinson Memorial Hosp. Proj.) 6.5% 11/15/03 (MBIA Insured)

Aaa

1,080,000

1,158,592

Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B:

6.375% 11/15/22

A-

1,500,000

1,511,190

6.375% 11/15/30

A-

1,000,000

1,001,010

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Ohio - continued

Scioto County Marine Term. Facilities Rev. (Norfolk Southern Corp. Proj.) 5.3%
8/15/13

Baa1

$ 3,000,000

$ 2,994,000

Southwestern City School District Franklin & Pickway County Series A, 6.2% 12/1/06 (AMBAC Insured)

Aaa

1,000,000

1,056,580

Springboro Cmnty. City School District 0% 12/1/06 (AMBAC Insured)

Aaa

915,000

734,004

Summit County Gen. Oblig. 6% 12/1/21
(FGIC Insured)

Aaa

1,500,000

1,624,815

Swanton Local School District 5.25% 12/1/21 (FGIC Insured)

Aaa

3,415,000

3,430,948

Toledo Gen. Oblig.:

5.5% 12/1/08 (FGIC Insured)

Aaa

1,000,000

1,088,020

5.5% 12/1/09 (FGIC Insured)

Aaa

1,000,000

1,082,850

6.1% 12/1/14 (AMBAC Insured)

Aaa

1,750,000

1,867,495

7.625% 12/1/04 (AMBAC Insured)

Aaa

1,000,000

1,129,240

Univ. of Cincinnati Ctfs. of Prtn.:

5.5% 6/1/11 (MBIA Insured)

Aaa

1,045,000

1,132,247

5.5% 6/1/12 (MBIA Insured)

Aaa

1,315,000

1,413,231

5.5% 6/1/15 (MBIA Insured)

Aaa

1,000,000

1,046,560

Warren County Gen. Oblig.:

Swr. Impt. (P&G Co./Lower Miami Proj.)
5.5% 12/1/16

Aa2

1,455,000

1,493,427

6.1% 12/1/12

Aa2

500,000

558,405

6.65% 12/1/11

Aa2

500,000

567,590

Westerville City School District:

Series 2001, 5.5% 12/1/13
(MBIA Insured)

Aaa

1,250,000

1,335,025

5.5% 12/1/14 (MBIA Insured)

Aaa

1,430,000

1,515,586

Westlake City School District Series A, 6.15% 12/1/05

Aa3

1,060,000

1,167,844

382,090,929

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Puerto Rico - 1.6%

Puerto Rico Commonwealth Hwy. & Trans.
Auth. Hwy. Rev. Series Y, 5.5% 7/1/36
(FSA Insured)

Aaa

$ 1,000,000

$ 1,046,730

Puerto Rico Commonwealth Hwy. & Trans. Auth. Rev. Series A, 4.75% 7/1/38 (MBIA Insured)

Aaa

1,750,000

1,610,980

Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A, 5.5% 10/1/40 (Escrowed to Maturity) (c)

Aaa

3,500,000

3,603,110

6,260,820

TOTAL INVESTMENT PORTFOLIO - 98.6%

(Cost $372,618,031)

388,351,749

NET OTHER ASSETS - 1.4%

5,622,359

NET ASSETS - 100%

$ 393,974,108

Legend

(a) S&P credit ratings are used in the absence of a rating by Moody's Investors Service, Inc.

(b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(c) Security collateralized by an amount sufficient to pay interest and principal.

Other Information

The composition of long-term debt holdings as a percentage of total value of investments in securities, is as follows (ratings are unaudited):

Moody's Ratings

S&P Ratings

Aaa, Aa, A

90.6%

AAA, AA, A

82.5%

Baa

2.1%

BBB

4.3%

Ba

0.0%

BB

0.2%

B

0.0%

B

0.0%

Caa

0.0%

CCC

0.0%

Ca, C

0.0%

CC, C

0.0%

D

0.0%

The percentage not rated by Moody's or S&P amounted to 2%.

Purchases and sales of securities, other than short-term securities, aggregated $60,481,178 and $43,154,324, respectively.

The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows:

General Obligations

48.5%

Education

10.0

Escrowed/Pre-Refunded

8.5

Water & Sewer

6.9

Health Care

6.6

Electric Utilities

5.7

Others* (individually less than 5%)

13.8

100.0%

* Includes net other assets.

Income Tax Information

At June 30, 2001, the aggregate cost of investment securities for income tax purposes was $372,442,276. Net unrealized appreciation aggregated $15,909,473, of which $16,636,982 related to appreciated investment securities and $727,509 related to depreciated investment securities.

At December 31, 2000, the fund had a capital loss carryforward of approximately $848,000 all of which will expire on December 31, 2008.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Ohio Municipal Income Fund

Financial Statements

Statement of Assets and Liabilities

June 30, 2001 (Unaudited)

Assets

Investment in securities, at value (cost $372,618,031) - See accompanying schedule

$ 388,351,749

Cash

11,548,303

Receivable for fund shares sold

106,980

Interest receivable

3,452,795

Other receivables

36,278

Total assets

403,496,105

Liabilities

Payable for investments purchased

$ 7,634,824

Payable for fund shares redeemed

1,290,365

Distributions payable

422,930

Accrued management fee

123,469

Other payables and accrued expenses

50,409

Total liabilities

9,521,997

Net Assets

$ 393,974,108

Net Assets consist of:

Paid in capital

$ 379,406,944

Undistributed net investment income

88,208

Accumulated undistributed net realized
gain (loss) on investments

(1,254,762)

Net unrealized appreciation (depreciation) on investments

15,733,718

Net Assets, for 34,042,389 shares outstanding

$ 393,974,108

Net Asset Value, offering price and redemption price per share ($393,974,108 ÷ 34,042,389 shares)

$11.57

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Ohio Municipal Income Fund
Financial Statements - continued

Statement of Operations

Six months ended June 30, 2001 (Unaudited)

Investment Income

Interest

$ 10,027,572

Expenses

Management fee

$ 735,437

Transfer agent fees

153,559

Accounting fees and expenses

60,084

Non-interested trustees' compensation

825

Custodian fees and expenses

3,285

Registration fees

17,996

Audit

15,699

Legal

1,112

Total expenses before reductions

987,997

Expense reductions

(113,628)

874,369

Net investment income

9,153,203

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on investment securities

133,490

Change in net unrealized appreciation (depreciation)
on investment securities

850,974

Net gain (loss)

984,464

Net increase (decrease) in net assets resulting
from operations

$ 10,137,667

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Ohio Municipal Income Fund
Financial Statements - continued

Statement of Changes in Net Assets

Six months ended
June 30, 2001
(Unaudited)

Year ended
December 31,
2000

Increase (Decrease) in Net Assets

Operations
Net investment income

$ 9,153,203

$ 17,673,915

Net realized gain (loss)

133,490

(1,095,002)

Change in net unrealized appreciation (depreciation)

850,974

22,927,354

Net increase (decrease) in net assets resulting
from operations

10,137,667

39,506,267

Distributions to shareholders from net investment income

(9,048,852)

(17,700,231)

Share transactions
Net proceeds from sales of shares

43,783,879

54,525,383

Reinvestment of distributions

6,361,393

12,141,443

Cost of shares redeemed

(38,323,517)

(60,394,239)

Net increase (decrease) in net assets resulting
from share transactions

11,821,755

6,272,587

Redemption fees

11,630

-

Total increase (decrease) in net assets

12,922,200

28,078,623

Net Assets

Beginning of period

381,051,908

352,973,285

End of period (including undistributed net investment income of $88,208 and $6,609, respectively)

$ 393,974,108

$ 381,051,908

Other Information

Shares

Sold

3,770,820

4,903,769

Issued in reinvestment of distributions

549,202

1,094,262

Redeemed

(3,303,511)

(5,482,947)

Net increase (decrease)

1,016,511

515,084

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

Six months ended
June 30, 2001

Years ended December 31,

(Unaudited)

2000

1999

1998

1997

1996

Selected Per-Share Data

Net asset value, beginning of period

$ 11.540

$ 10.860

$ 11.740

$ 11.720

$ 11.430

$ 11.590

Income from Investment Operations
Net investment income

.271 E

.552 E

.536

.538

.554

.560

Net realized
and unrealized gain (loss)

.028

.681

(.857)

.125

.413

(.090)

Total from investment operations

.299

1.233

(.321)

.663

.967

.470

Less Distributions

From net investment income

(.269)

(.553)

(.536)

(.538)

(.554)

(.560)

From net
realized gain

-

-

(.011)

(.105)

(.105)

(.070)

In excess of net
realized gain

-

-

(.012)

-

(.018)

-

Total distributions

(.269)

(.553)

(.559)

(.643)

(.677)

(.630)

Redemption fees added to paid in capital

.000

-

-

-

-

-

Net asset value,
end of period

$ 11.570

$ 11.540

$ 10.860

$ 11.740

$ 11.720

$ 11.430

Total Return B, C

2.61%

11.68%

(2.83)%

5.79%

8.74%

4.23%

Ratios and Supplemental Data

Net assets, end of period (000 omitted)

$ 393,974

$ 381,052

$ 352,973

$ 396,166

$ 388,907

$ 381,626

Ratio of expenses to average net assets before expense reductions

.51% A

.52%

.52%

.55%

.58%

.59%

Ratio of expenses to average net assets after voluntary waivers

.51% A

.52%

.52%

.55%

.56%

.59%

Ratio of expenses to average net assets after all expense reductions

.45% A, D

.46% D

.51% D

.55%

.56%

.59%

Ratio of net investment income to average net assets

4.73% A

4.99%

4.71%

4.58%

4.83%

4.93%

Portfolio turnover rate

23% A

28%

14%

19%

15%

43%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses.

E Net investment income per share has been calculated based on average shares outstanding during the period.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Ohio Municipal Money Market Fund

Performance: The Bottom Line

To evaluate a money market fund's historical performance, you can look at either total return or yield. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). Yield measures the income paid by a fund. Since a money market fund tries to maintain a $1 share price, yield is an important measure of performance. If Fidelity had not reimbursed certain fund expenses, the past 10 year total returns would have been lower.

Cumulative Total Returns

Periods ended June 30, 2001

Past 6
months

Past 1
year

Past 5
years

Past 10
years

Fidelity OH Municipal Money Market

1.55%

3.50%

17.12%

35.20%

Ohio Tax-Free Money Market Funds Average

1.41%

3.27%

16.41%

34.44%

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. To measure how the fund's performance stacked up against its peers, you can compare it to the Ohio tax-free money market funds average, which reflects the performance of Ohio tax-free money market funds with similar objectives tracked by iMoneyNet, Inc. The past six months average represents a peer group of 14 mutual funds.

Average Annual Total Returns

Periods ended June 30, 2001

Past 1
year

Past 5
years

Past 10
years

Fidelity OH Municipal Money Market

3.50%

3.21%

3.06%

Ohio Tax-Free Money Market Funds Average

3.27%

3.08%

3.00%

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.

Semiannual Report

Fidelity Ohio Municipal Money Market Fund

Performance - continued

Yields

7/2/01

4/2/01

1/1/01

10/2/00

7/3/00

Fidelity Ohio Municipal
Money Market Fund

2.61%

3.37%

4.24%

4.44%

3.97%

Ohio Tax-Free Money Market Funds Average

2.39%

2.97%

3.91%

3.73%

3.83%

Ohio Municipal Money
Market Tax-equivalent

4.37%

5.65%

7.13%

7.46%

6.67%

Portion of fund's income
subject to state taxes

3.28%

2.12%

1.04%

0.00%

0.00%




Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, expressed as annual percentage rates. A yield that assumes income earned is reinvested or compounded is called an effective yield. The table above shows the fund's current seven-day yield at quarterly intervals over the past year. You can compare these yields to the Ohio tax-free money market funds average as tracked by iMoneyNet, Inc. or you can look at the fund's tax-equivalent yield, which is based on a combined effective federal and state income tax rate of 40.47%. The fund's yields mentioned above reflect that a portion of the fund's income was subject to states taxes. A portion of the fund's income may be subject to the federal alternative minimum tax.

A money market fund's total returns and yields will vary, and reflect past results rather than predict future performance.

Comparing
Performance

Yields on tax-free investments are usually lower than yields on taxable investments. However, a straight comparison between the two may be misleading because it ignores the way taxes reduce taxable returns. Tax-equivalent yield - the yield you'd have to earn on a similar taxable investment to match the tax-free yield - makes the comparison more meaningful. Keep in mind that the U.S. government neither insures nor guarantees a money market fund. And there is no assurance that a money fund will maintain a $1 share price.

3

Semiannual Report

Fidelity Ohio Municipal Money Market Fund

Fund Talk: The Manager's Overview

(Portfolio Manager photograph)
An interview with Norm Lind, Portfolio Manager of Fidelity Ohio Municipal Money Market Fund

Q. Norm, what was the investment environment like during the six months that ended June 30, 2001?

A. The Federal Reserve Board's rate-cutting policy dominated discussion. At the end of 2000, U.S. economic growth started to trend downward. Industrial production declined and corporate spending diminished within a climate of a struggling stock market and rising energy prices. Despite higher fuel costs, however, inflation remained under control. In order to reduce the possibility of a recession, the Fed lowered the rate banks charge each other for overnight loans - known as the fed funds target rate - six times. The Fed surprised the market by implementing the first rate cut of a half-percentage point just a few days into 2001, well in advance of its next scheduled meeting. Continued concerns about the stalling economy encouraged the Fed to follow through with four more half-percentage point reductions. Three of these moves came at the Fed's regularly scheduled meetings in January, March and May. The fourth was another surprise cut that occurred in April, which was followed by the Fed's 0.25 percentage point reduction of the target rate at the end of June. All in all, the Fed reduced the fed funds target rate from 6.50% at the beginning of 2001 to 3.75% at the end of June 2001.

Q. Were there any developments of note specific to the municipal money market during the period?

A. Yes, there were. Municipal money market funds did not experience the same kind of cash inflows and outflows that usually occur at different points during the year. For example, investors typically take assets out of money market funds in December and April in order to meet tax payments, and January usually brings with it a significant influx of new assets to money market funds. This year, withdrawals in December and April were lower than anticipated, and inflows in January were higher than normal. There were two main reasons for this anomaly. First, yields in the municipal money market remained attractive relative to alternatives in the taxable market. Second, with the equity markets experiencing some protracted struggles, investors were attracted to less-volatile investments such as money market funds.

Q. What was your strategy with the fund?

A. With interest rates on the decline, I looked to invest in longer-term maturities to lengthen the average maturity of the fund. I did so in order to lock in higher rates in a declining rate environment. However, there were two factors that made it difficult for us to extend the average maturity at times. Any new capital coming into the fund, by nature, shortened the average maturity. In addition, the constrained supply of new issuance in the Ohio market was swallowed up quickly, and we needed to be aggressive at securing new deals when they came to market.

Semiannual Report

Fidelity Ohio Municipal Money Market Fund
Fund Talk: The Manager's Overview - continued

Q. How did the fund perform?

A. The fund's seven-day yield on June 30, 2001, was 2.63%, compared to 4.22% six months ago. The more recent seven-day yield was the equivalent of a 4.46% taxable rate of return for Ohio investors in the 40.47% combined state and federal income tax bracket. Through June 30, 2001, the fund's six-month total return was 1.55%, compared to 1.41% for the Ohio tax-free money market funds average, according to iMoneyNet, Inc.

Q. What's your outlook, Norm?

A. There are differing opinions about when the Fed will finish this latest cycle of easing monetary policy. It seems that most economists and media pundits feel that the Fed is just about done. Nevertheless, it's quite conceivable that the Fed could continue to lower rates at its next two or three meetings. My approach will be a cautious one. I'll be selectively choosing investments along the yield curve that offer particular value, with a bias toward keeping the fund's average maturity on the long side. Broadly speaking, municipal money market securities remain relatively cheap on an after-tax basis.

The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Fund Facts

Goal: high current tax-free income while maintaining a stable $1 share price by investing in high-quality, short-term municipal money market securities whose interest is free from federal income tax and Ohio individual income tax

Fund number: 419

Trading symbol: FOMXX

Start date: August 29, 1989

Size: as of June 30, 2001, more than $535 million

Manager: Norm Lind, since 2000; manager, various Fidelity and Spartan municipal money market funds; joined Fidelity in 1986

3

Semiannual Report

Fidelity Ohio Municipal Money Market Fund

Investment Changes

Maturity Diversification

Days

% of fund's
investments
6/30/01

% of fund's
investments
12/31/00

% of fund's
investments
6/30/00

0 - 30

70.7

73.5

66.8

31 - 90

8.9

4.8

8.7

91 - 180

3.6

7.6

12.3

181 - 397

16.8

14.1

12.2

Weighted Average Maturity

6/30/01

12/31/00

6/30/00

Ohio Municipal Money Market Fund

64 Days

52 Days

62 Days

Ohio Tax-Free Money Market
Funds Average *

55 Days

56 Days

50 Days

Asset Allocation (% of fund's net assets)

As of June 30, 2001

As of December 31, 2000

Variable Rate
Demand Notes
(VRDNs) 65.2%

Variable Rate
Demand Notes
(VRDNs) 67.2%

Commercial Paper (including
CP Mode) 0.8%

Commercial Paper (including
CP Mode) 0.0%

Tender Bonds 2.7%

Tender Bonds 8.4%

Municipal Notes 29.1%

Municipal Notes 21.7%

Municipal Money
Market Funds 0.0%

Municipal Money
Market Funds 0.7%

Other Investments 3.4%

Other Investments 0.0%

Net Other Assets** (1.2)%

Net Other Assets 2.0%



** Net Other Assets are not included in pie chart.

*Source: iMoneyNet, Inc.

Semiannual Report

Fidelity Ohio Municipal Money Market Fund

Investments June 30, 2001

(Unaudited)

Showing Percentage of Net Assets

Municipal Securities - 101.2%

Principal
Amount

Value
(Note 1)

Ohio - 101.2%

American Muni. Pwr. BAN (Cleveland Elec. Co. Proj.) 4.55% 8/22/01

$ 4,700,000

$ 4,700,000

Anthony Wayne Local School District BAN 4.77% 12/6/01

2,875,000

2,878,806

Ashland Gen. Oblig. BAN:

(Court & Jail Facilities Proj.) 4.75% 7/12/01

4,100,000

4,100,295

3% 7/11/02 (a)

3,240,000

3,251,016

Ashtabula County Indl. Dev. Rev.:

(Plasticolors, Inc. Proj.) Series 1996 A, 2.99%, LOC Key Bank Nat'l. Assoc., VRDN (b)(c)

2,140,000

2,140,000

(Zehro Plastics, Inc. Proj.) Series 1999, 2.8%, LOC Bank One NA, Michigan, VRDN (b)(c)

5,000,000

5,000,000

Bay Village Gen. Oblig. BAN 3.25% 6/28/02

3,500,000

3,515,864

Bedford Heights Indl. Dev. Rev. (Olympic Steel Proj.) Series 1989, 2.9%, LOC Nat'l. City Bank, VRDN (b)(c)

700,000

700,000

Bowling Green Gen. Oblig. BAN:

3.25% 6/13/02

4,755,000

4,776,078

4.75% 9/6/01

4,700,000

4,702,639

Brecksville Gen. Oblig. BAN:

3.2% 9/4/01

700,000

700,324

3.2% 5/30/02

1,000,000

1,002,390

Bryan Gen. Oblig. BAN 4.45% 12/12/01

2,400,000

2,400,000

Cambridge Hosp. Facilities Rev. Bonds (Southeastern Reg'l. Med. Ctr. Proj.) 3.1%, tender 8/1/01, LOC Nat'l. City Bank (b)

6,625,000

6,625,000

Cincinnati Student Ln. Fdg. Corp. Student Ln. Rev. Series 1998 A1, 2.75% (BPA Bank of America NA), VRDN (b)(c)

7,100,000

7,100,000

Clark County Gen. Oblig. BAN Series 2001 E, 3.2% 6/18/02

875,000

877,624

Clermont County Indl. Dev. Rev. (American Micro Products Proj.) 2.99%, LOC Firstar Bank NA, VRDN (b)(c)

3,800,000

3,800,000

Cleveland Wtrwks. Rev.:

Bonds Series F, 6.5% 1/1/21 (AMBAC Insured) (Pre-Refunded to 1/1/02 @ 102) (d)

8,565,000

8,869,403

Participating VRDN Series Merlots 01 A24, 2.8% (Liquidity Facility First Union Nat'l. Bank, North Carolina) (b)(e)

4,020,000

4,020,000

Columbus Wtr. Sys. Rev. Bonds 6.2% 11/1/04 (Pre-Refunded to 11/1/01 @ 102) (d)

4,090,000

4,213,317

Cuyahoga County Civic Facilities Rev. (Fairfax Dev. Corp. Proj.) 2.83%, LOC Key Bank Nat'l. Assoc., VRDN (b)

4,850,000

4,850,000

Cuyahoga County Health Care Facilities Rev. (Althenheim Proj.) 2.83%, LOC Firstar Bank NA, VRDN (b)

7,355,000

7,355,000

Cuyahoga County Indl. Dev. Rev.:

(Marine Mechanical Corp. Proj.) 2.95%, LOC Nat'l. City Bank, VRDN (b)(c)

4,540,000

4,540,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Ohio - continued

Cuyahoga County Indl. Dev. Rev.: - continued

(Progressive Plastics, Inc. Proj.) 2.95%, LOC Bank One NA, VRDN (b)(c)

$ 1,890,000

$ 1,890,000

(The Great Lakes Brewing Co. Proj.) Series 1997, 2.88%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b)(c)

4,995,000

4,995,000

Cuyahoga Falls Gen. Oblig. BAN 4.875% 9/5/01

2,000,000

2,001,484

Dayton Gen. Oblig. BAN 4.75% 8/30/01

2,150,000

2,151,129

Delaware County Health Care Facilities (Willow Brook Christian Cmnty. Proj.) Series 1999, 2.83%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b)

4,170,000

4,170,000

Erie County Indl. Dev. Rev. (US Tsubaki Proj.) Series 99, 2.8%, LOC Lasalle Bank NA, VRDN (b)(c)

5,000,000

5,000,000

Erie County Multi-family Hsg. Rev. (Providence Residential Comnty. Corp. Proj.) Series 1999 A, 2.83%, LOC Bank One NA, VRDN (b)

10,600,000

10,600,000

Euclid City School District BAN 3.2% 12/11/01

500,000

500,874

Fairfield County Gen. Oblig. BAN:

3.1% 7/9/02 (a)

3,000,000

3,013,110

3.65% 1/25/02

3,500,000

3,506,342

4.87% 7/11/01

4,600,000

4,600,446

Franklin County Econ. Dev. Rev. (Hopkins Printing, Inc. Proj.) 2.95%, LOC Nat'l. City Bank, VRDN (b)(c)

2,600,000

2,600,000

Franklin County Indl. Dev. Rev. (Inland Products, Inc. Proj.) 2.9%, LOC PNC Bank NA, VRDN (b)(c)

400,000

400,000

Franklin County Multi-family Rev.:

Bonds (BlackLick Station Apts. Proj.) Series 1999, 4.65%, tender 10/1/01, LOC Fifth Third Bank, Cincinnati (b)(c)

3,000,000

3,000,000

(Golf Pointe Apts. Proj.) Series 2000 A, 2.8%, LOC Lasalle Bank NA, VRDN (b)(c)

4,600,000

4,600,000

Franklin Multi-family Rev. Bonds (260 East Naghten Street Proj.) 5.05%, tender 8/1/01, LOC Fifth Third Bank, Cincinnati (b)(c)

4,600,000

4,600,000

Geauga County Gen. Oblig. BAN 3.75% 3/8/02

1,600,000

1,603,167

Geauga County Health Care Facilities Rev. (Montefiore Hsg. Corp. Proj.) Series 2001, 2.83%, LOC Key Bank Nat'l. Assoc., VRDN (b)

6,000,000

6,000,000

Granville Exempted Village School District BAN:

3.6% 5/2/02

2,500,000

2,510,118

4.87% 7/17/01

2,500,000

2,500,610

Hamilton County Indl. Dev. Rev. (Metro Containers, Inc. Proj.) 2.95%, LOC Bank One NA, VRDN (b)(c)

1,080,000

1,080,000

Hamilton Local School District BAN 4% 7/12/01

2,231,000

2,231,433

Highland Heights Gen. Oblig. BAN 4% 12/13/01

1,215,000

1,217,931

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Ohio - continued

Hilliard Gen. Oblig. BAN 3.76% 1/25/02

$ 2,900,000

$ 2,907,354

Kettering Indl. Dev. Rev. (Millat Industries Corp. Proj.) 2.95%, LOC Nat'l. City Bank, VRDN (b)(c)

4,225,000

4,225,000

Lake County BAN 4.75% 10/3/01

2,225,000

2,226,645

Lake County Indl. Dev. Rev.:

(American Bus. Co. Proj.) 2.88%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b)(c)

1,175,000

1,175,000

(Norshar Co. Proj.) 2.95%, LOC Bank One NA, VRDN (b)(c)

3,275,000

3,275,000

Lakewood Gen. Oblig. BAN 3.5% 5/24/02

1,350,000

1,354,681

Lebanon City School District BAN 3.03% 3/5/02

5,400,000

5,410,016

Lebanon Gen. Oblig. BAN:

3.15% 5/23/02

1,200,000

1,200,000

3.21% 5/23/02

1,290,000

1,293,133

Lorain County Hosp. Rev. (Elyria United Methodist Village Proj.) Series 1996 B, 2.76%, LOC Bank One NA, VRDN (b)

4,100,000

4,100,000

Lucas County Multi-family Rev.:

(Beacon Place/Cubbon Proj.) 2.85%, LOC Firstar Bank NA, VRDN (b)

3,120,000

3,120,000

(Lakewoods Proj.) 2.99%, LOC Key Bank Nat'l. Assoc., VRDN (b)(c)

4,000,000

4,000,000

Mason City School District BAN Series A, 3.58% 2/14/02

5,650,000

5,660,228

Medina County Indl. Dev. Rev.:

(Firedex, Inc. Proj.) Series 1997, 2.99%, LOC Key Bank Nat'l. Assoc., VRDN (b)(c)

1,015,000

1,015,000

(Rembond Proj.) Series 1996, 2.95%, LOC Firstar Bank NA, VRDN (b)(c)

2,550,000

2,550,000

Medina Wtr. Sys. Impt. BAN 4.75% 7/12/01

4,100,000

4,100,295

Miamisburg Gen. Oblig. BAN 3% 6/27/02

1,320,000

1,324,184

Montgomery County Health Care Rev. (Eastway Corp. & Property Resource Proj.) Series 1997, 2.88%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b)(c)

2,820,000

2,820,000

Montgomery County Multi-family Hsg. Dev. Rev.:

(Pedcor Investments-Lyons Gate Proj.) 2.89%, LOC Fed. Home Ln. Bank, Cincinnati, VRDN (b)(c)

4,421,000

4,421,000

(Timber Creek Village Apts. Proj.) Series 1998, 2.82%,
LOC Key Bank Nat'l. Assoc., VRDN (b)(c)

3,530,000

3,530,000

North Baltimore Local School District BAN 4% 4/11/02

1,730,000

1,737,802

North Olmsted Library Impt. BAN 4.55% 7/31/01

685,000

685,192

North Ridgeville Gen. Oblig. BAN 3.3% 5/9/02

2,000,000

2,003,470

Ohio Air Quality Dev. Auth. Rev. Bonds (Cleveland Elec. Illumination Co. Proj.) Series 1988 B, 3.2% tender 9/10/01 (FGIC Insured) (Liquidity Facility FGIC-SPI), CP mode

4,295,000

4,295,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Ohio - continued

Ohio Higher Edl. Facility Commission Rev.:

Participating VRDN Series MSDW 98 116, 2.78% (Liquidity Facility Morgan Stanley Dean Witter & Co.) (b)(e)

$ 4,500,000

$ 4,500,000

(Pooled Fing. Prog.) Series 1996, 2.8%, LOC Fifth Third Bank, Cincinnati, VRDN (b)

3,800,000

3,800,000

Ohio Hsg. Fin. Agcy. Mtg. Rev.:

Bonds Series B, 3.4% 3/1/02 (c)

5,000,000

5,000,000

Participating VRDN:

Series BA 00 Q, 2.83% (Liquidity Facility Bank of America NA) (b)(c)(e)

2,675,000

2,675,000

Series BA 98 B, 2.83% (Liquidity Facility Bank of America NA) (b)(c)(e)

14,695,000

14,695,000

Series BA 98 Q, 2.83% (Liquidity Facility Bank of America NA) (b)(c)(e)

4,600,000

4,600,000

Series BA 99 Q, 2.83% (Liquidity Facility Bank of America NA) (b)(c)(e)

12,310,000

12,310,000

Series CDC 99 A, 2.82% (Liquidity Facility Caisse des Depots et Consignations) (b)(c)(e)

4,600,000

4,600,000

Series FRRI 25, 2.95% (Liquidity Facility Bank of New York NA) (b)(c)(e)

3,100,000

3,100,000

Series Merlots 00 A1, 2.8% (Liquidity Facility First Union Nat'l. Bank, North Carolina) (b)(c)(e)

4,505,000

4,505,000

Series Merlots 00 AA, 2.85% (Liquidity Facility First Union Nat'l. Bank, North Carolina) (b)(c)(e)

6,970,000

6,970,000

Series PA 758R, 2.82% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(e)

3,950,000

3,950,000

Series PA 806, 2.82% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(e)

8,540,000

8,540,000

Series PA 93, 2.87% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(e)

679,000

679,000

Series PT 122, 2.82% (Liquidity Facility Banco Santander Central Hispano SA) (b)(c)(e)

2,815,000

2,815,000

Series PT 228, 2.82% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(e)

6,400,000

6,400,000

Series PT 241, 2.82% (Liquidity Facility Bayerische Hypo-und Vereinsbank AG) (b)(c)(e)

5,990,000

5,990,000

Series PT 282, 2.82% (Liquidity Facility Landesbank Hessen-Thuringen) (b)(c)(e)

4,400,000

4,400,000

Series PT 567, 2.82% (Liquidity Facility Banco Santander Central Hispano SA) (b)(c)(e)

5,400,000

5,400,000

Ohio Hsg. Fin. Agcy. Multi-family Hsg. Rev.:

(Club at Spring Valley Apts. Proj.) Series 1996 A, 2.89%, LOC Key Bank Nat'l. Assoc., VRDN (b)(c)

4,100,000

4,100,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Ohio - continued

Ohio Hsg. Fin. Agcy. Multi-family Hsg. Rev.: - continued

(Pedcor Invt. Willowlake Apts. Proj.):

Series A, 2.83%, LOC Bank One NA, VRDN (b)(c)

$ 3,160,000

$ 3,160,000

Series B, 2.93%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(c)

495,000

495,000

Series C, 2.93%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(c)

625,000

625,000

Series D, 2.93%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(c)

625,000

625,000

Ohio Indl. Dev. Rev.:

(Carpenter/Clapp & Haney Tool Co. Proj.) Series 1987 P, 2.89%, LOC Bank One NA, VRDN (b)(c)

105,000

105,000

(Dramex Int'l., Inc. Proj.):

Series 1988 I, 2.89%, LOC Bank One NA, VRDN (b)(c)

500,000

500,000

Series 1988 II, 2.89%, LOC PNC Bank NA, VRDN (b)(c)

200,000

200,000

(K&S Realty Proj.) Series 1989 I, 2.89%, LOC Nat'l. City Bank, VRDN (b)(c)

165,000

165,000

(K&S Realty/Starr Fabricating, Inc. Proj.) Series 1989 III, 2.89%, LOC Nat'l. City Bank, VRDN (b)(c)

180,000

180,000

(Kaufmans Bakery Co. Proj.) Series 1987 K, 2.89%,
LOC Bank One NA, VRDN (b)(c)

205,000

205,000

(Midwest Acoust-A-Fiber, Inc. Proj.) Series 1989 I, 2.89%, LOC Nat'l. City Bank, VRDN (b)(c)

210,000

210,000

(Morrow Macke Realty Proj.) Series 1988 C, 2.89%,
LOC Bank One NA, VRDN (b)(c)

240,000

240,000

(Plasticos Co. Proj.) Series 1989 III A, 2.89%, LOC Nat'l. City Bank, VRDN (b)(c)

245,000

245,000

(Southwest Fin. Svcs. Proj.) Series 1986 J, 2.89%,
LOC Nat'l. City Bank, VRDN (b)(c)

45,000

45,000

(Standby Screw & Machine Proj.) Series 1991 IA, 2.89%, LOC Nat'l. City Bank, VRDN (b)(c)

360,000

360,000

Ohio Solid Waste Rev.:

(BP Exploration & Oil, Inc. Proj.) Series 1999, 3.45%
(BP PLC Guaranteed), VRDN (b)(c)

3,000,000

3,000,000

(BP Exploration & Oil Co. Proj.) Series 2000, 3.45%
(BP PLC Guaranteed), VRDN (b)(c)

5,000,000

5,000,000

Ohio Tpk. Cmnty. Tpk. Rev. Participating VRDN
Series BS 00 104, 3.35% (Liquidity Facility Bear Stearns Companies, Inc.) (b)(e)

3,100,000

3,100,000

Ohio Tpk. Commission Tpk. Rev. Participating VRDN
Series MSDW 98 71, 2.81% (Liquidity Facility Morgan Stanley Dean Witter & Co.) (b)(e)

11,335,000

11,335,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Ohio - continued

Ohio Univ. Gen. Receipts Athens BAN:

Series 2001, 3.71% 1/25/02

$ 5,000,000

$ 5,008,519

3.68% 3/28/02

1,200,000

1,202,831

Ohio Wtr. Dev. Auth. (Waste Mgmt. Proj.) Series B, 3.05%, LOC Fleet Bank NA, VRDN (b)(c)

4,700,000

4,700,000

Ohio Wtr. Dev. Auth. Poll. Cont. Facilites Rev. (Philip Morris Co., Inc. Proj.) 2.9%, VRDN (b)

12,000,000

12,000,000

Ohio Wtr. Dev. Auth. Solid Waste Disp. Rev. (American Steel & Wire Corp. Proj.) 2.8%, LOC Bank of America NA, VRDN (b)(c)

9,100,000

9,100,000

Pepper Pike Gen. Oblig. BAN 3.6% 11/8/01

750,000

751,039

Perrysburg Gen. Oblig. BAN:

4.9% 11/15/01

2,000,000

2,003,229

5.05% 8/16/01

1,470,000

1,470,884

Port Auth. for Columbiana County (Polar Minerals, Inc. Proj.) 2.95%, LOC Nat'l. City Bank, VRDN (b)(c)

4,455,000

4,455,000

Portage County Indl. Dev. Rev. (Mantaline Corp. Proj.) 2.95%, LOC Nat'l. City Bank, VRDN (b)(c)

4,455,000

4,455,000

Richland County Indl. Dev. Rev.:

(Carton Svc., Inc. Proj.) Series 1996, 2.95%, LOC Nat'l. City Bank, VRDN (b)(c)

330,000

330,000

(Sabin Robbins Paper Co. Proj.) Series 1997, 2.85%,
LOC Fifth Third Bank, Cincinnati, VRDN (b)(c)

2,300,000

2,300,000

Rickenbacker Port Auth. Indl. Dev. (Micro Industries Corp. Proj.) Series 2000, 2.95%, LOC Bank One NA,
VRDN (b)(c)

3,250,000

3,250,000

River Valley Local School District BAN:

4.16% 7/25/01

4,825,000

4,826,758

4.95% 7/25/01

5,000,000

5,001,770

Salem City Hosp. Facilities Rev. Series 2000, 2.8%,
LOC PNC Bank NA, VRDN (b)

2,700,000

2,700,000

Seven Hills Gen. Oblig. BAN 3.4% 5/2/02

3,000,000

3,007,516

Shaker Heights Gen. Oblig. BAN 3.4% 5/23/02

3,775,000

3,788,422

Sidney City School District BAN 4.79% 8/7/01

2,500,000

2,500,961

Solon Gen. Oblig. BAN 3.25% 5/24/02

1,150,000

1,152,194

Solon Indl. Dev. Rev. (Custom Graphic, Inc. Proj.) Series 1999, 2.95%, LOC Bank One NA, VRDN (b)(c)

4,000,000

4,000,000

Solon School District BAN 3.7% 7/31/01

1,650,000

1,650,605

Southwestern City School District Franklin & Pickway County BAN 4.875% 9/6/01

2,750,000

2,752,071

Springboro Gen. Oblig. BAN 3.3% 5/30/02

1,620,000

1,623,587

Springdale Gen. Oblig. BAN 4.61% 9/21/01

2,750,000

2,751,239

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Ohio - continued

Stark County Indl. Dev. Rev.:

(H-P Products, Inc. Proj.) 2.99%, LOC Key Bank Nat'l. Assoc., VRDN (b)(c)

$ 2,970,000

$ 2,970,000

(Kidd Dev. Proj.) 2.95%, LOC Bank One NA, VRDN (b)(c)

3,475,000

3,475,000

Summit County Gen. Oblig. BAN 3.5% 5/30/02

4,200,000

4,220,462

Summit County Indl. Dev. Rev.:

(Commercial Alloys Corp. Proj.):

2.95%, LOC Nat'l. City Bank, VRDN (b)(c)

2,400,000

2,400,000

3%, LOC Nat'l. City Bank, VRDN (b)(c)

3,600,000

3,600,000

(Hampshire Properties Proj.) 2.95%, LOC Key Bank Nat'l. Assoc., VRDN (b)(c)

750,000

750,000

(Kaiser Dev. Proj.) 2.95%, LOC Bank One NA, VRDN (b)(c)

745,000

745,000

(Keltec, Inc. Proj.) Series 1987, 2.95%, LOC Bank One NA, VRDN (b)(c)

240,000

240,000

(Mannix Co. Proj.) Series 1987, 2.95%, LOC Bank One NA, VRDN (b)(c)

1,310,000

1,310,000

(Sigma Properties Proj.) Series 2000 B, 2.95%,
LOC Nat'l. City Bank, VRDN (b)(c)

2,480,000

2,480,000

(Summit Plastic Co. Proj.) 2.95%, LOC Nat'l. City Bank, VRDN (b)(c)

2,020,000

2,020,000

(Triumph Hldgs. Proj.) 2.95%, LOC Nat'l. City Bank, VRDN (b)(c)

1,635,000

1,635,000

Sylvania City School District BAN 4.7% 7/25/01

2,500,000

2,500,804

Toledo-Lucas County Port Auth. Rev. (P&G Industries Proj.) 2.95%, LOC Nat'l. City Bank, VRDN (b)(c)

3,145,000

3,145,000

Trotwood City Gen. Oblig. BAN 5% 7/25/01

2,300,000

2,300,433

Trumbull County Health Care Facilities Rev. (Shepard of the Valley Retire Howland Proj.) Series 1998, 2.8%, LOC Nat'l. City Bank, VRDN (b)

5,000,000

5,000,000

Trumbull County Indl. Dev. Rev. (McDonald Steel Corp. Proj.) Series 1990, 2.9%, LOC PNC Bank NA, VRDN (b)(c)

1,100,000

1,100,000

Twinsburg Gen. Oblig. BAN 5% 9/12/01

5,250,000

5,255,580

Union County Gen. Oblig. BAN 3.18% 6/13/02

3,000,000

3,007,750

Univ. of Toledo Gen. Receipts Participating VRDN
Series SGA 125, 2.73% (Liquidity Facility Societe Generale) (b)(e)

8,455,000

8,455,000

Van Wert County Indl. Dev. Rev. (Toledo Molding & Die, Inc. Proj.) Series 1994, 2.95%, LOC Bank One NA, VRDN (b)(c)

1,365,000

1,365,000

Wadsworth City School District BAN 3.96% 8/6/01

1,600,000

1,600,717

Warren County Health Care Facilities Rev. (Otterbein Homes Proj.) Series 1998 B, 2.95%, LOC Fifth Third Bank, Cincinnati, VRDN (b)

5,300,000

5,300,000

Wayne County Gen. Oblig. BAN 3% 7/11/02 (a)

4,900,000

4,916,660

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Ohio - continued

West Chester Township Gen. Oblig. BAN Series I, 3.73% 4/9/02

$ 2,500,000

$ 2,509,916

Wood County Indl. Dev. Rev.:

(Dowa THT America, Inc. Proj.) Series 1999, 2.8%,
LOC Comerica Bank, Detroit, VRDN (b)(c)

3,800,000

3,800,000

(TL Industries & AMPP, Inc. Proj.) 2.95%, LOC Nat'l. City Bank, VRDN (b)(c)

545,000

545,000

Zanesville-Muskingum Port Auth. Indl. Dev. Rev. (Almana II LLC Proj.) Series 2000, 2.88%, LOC Bank One NA, VRDN (b)(c)

4,700,000

4,700,000

TOTAL INVESTMENT PORTFOLIO - 101.2%

542,271,347

NET OTHER ASSETS - (1.2)%

(6,474,370)

NET ASSETS - 100%

$ 535,796,977

Total Cost for Income Tax Purposes $ 542,271,347

Security Type Abbreviations

BAN - BOND ANTICIPATION NOTE

CP - COMMERCIAL PAPER

VRDN - VARIABLE RATE DEMAND NOTE

Legend

(a) Security purchased on a delayed delivery or when-issued basis.

(b) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(d) Security collateralized by an amount sufficient to pay interest and principal.

(e) Provides evidence of ownership in one or more underlying municipal bonds.

Income Tax Information

At December 31, 2000, the fund had a capital loss carryforward of approximately $85,000 of which $1,000, $50,000, $6,000, $20,000 and $8,000 will expire on December 31, 2003, 2004, 2005, 2007 and 2008, respectively.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Ohio Municipal Money Market Fund

Financial Statements

Statement of Assets and Liabilities

June 30, 2001 (Unaudited)

Assets

Investment in securities, at value -
See accompanying schedule

$ 542,271,347

Cash

75,069

Receivable for fund shares sold

2,626,291

Interest receivable

5,271,829

Other receivables

13,989

Prepaid expenses

8,886

Total assets

550,267,411

Liabilities

Payable for investments purchased
Regular delivery

$ 1,324,184

Delayed delivery

11,180,786

Payable for fund shares redeemed

1,698,088

Distributions payable

13,637

Accrued management fee

169,909

Other payables and accrued expenses

83,830

Total liabilities

14,470,434

Net Assets

$ 535,796,977

Net Assets consist of:

Paid in capital

$ 535,882,043

Accumulated undistributed net realized
gain (loss) on investments

(85,066)

Net Assets, for 535,882,130 shares outstanding

$ 535,796,977

Net Asset Value, offering price and redemption price per share ($535,796,977 ÷ 535,882,130 shares)

$1.00

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Ohio Municipal Money Market Fund
Financial Statements - continued

Statement of Operations

Six months ended June 30, 2001 (Unaudited)

Investment Income

Interest

$ 9,312,155

Expenses

Management fee

$ 978,022

Transfer agent fees

325,825

Accounting fees and expenses

50,460

Non-interested trustees' compensation

920

Custodian fees and expenses

4,938

Registration fees

27,510

Audit

12,716

Legal

4,425

Reports to shareholders

11,848

Miscellaneous

8,888

Total expenses before reductions

1,425,552

Expense reductions

(61,915)

1,363,637

Net investment income

7,948,518

Net realized gain (loss) on investment securities

11

Net increase (decrease) in net assets resulting
from operations

$ 7,948,529

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Ohio Municipal Money Market Fund
Financial Statements - continued

Statement of Changes in Net Assets

Six months ended
June 30, 2001
(Unaudited)

Year ended
December 31,
2000

Increase (Decrease) in Net Assets

Operations
Net investment income

$ 7,948,518

$ 17,390,862

Net realized gain (loss)

11

(8,406)

Net increase (decrease) in net assets resulting
from operations

7,948,529

17,382,456

Distributions to shareholders from net investment income

(7,948,518)

(17,390,862)

Share transactions at net asset value of 1.00 per share
Proceeds from sales of shares

625,086,204

1,338,533,818

Reinvestment of distributions

7,686,358

16,792,368

Cost of shares redeemed

(612,993,814)

(1,329,270,358)

Net increase (decrease) in net assets resulting
from share transactions

19,778,748

26,055,828

Total increase (decrease) in net assets

19,778,759

26,047,422

Net Assets

Beginning of period

516,018,218

489,970,796

End of period

$ 535,796,977

$ 516,018,218

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

Six months
ended
June 30, 2001

Years ended December 31,

(Unaudited)

2000

1999

1998

1997

1996

Selected Per-Share Data

Net asset value, beginning of period

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

Income from Investment Operations
Net investment income

.015

.036

.028

.030

.032

.030

Less Distributions

From net investment income

(.015)

(.036)

(.028)

(.030)

(.032)

(.030)

Net asset value, end
of period

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

Total Return B, C

1.55%

3.71%

2.86%

3.09%

3.29%

3.08%

Ratios and Supplemental Data

Net assets, end of period (000 omitted)

$ 535,797

$ 516,018

$ 489,971

$ 400,737

$ 364,472

$ 327,593

Ratio of expenses to average net assets

.55% A

.56%

.57%

.58%

.59%

.60%

Ratio of expenses to average net assets after all expense reductions

.53% A, D

.55% D

.56% D

.57% D

.59%

.59% D

Ratio of net investment income to average net assets

3.09% A

3.64%

2.83%

3.05%

3.24%

3.03%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2001 (Unaudited)

1. Significant Accounting Policies.

Spartan Ohio Municipal Income Fund (the income fund) is a fund of Fidelity Municipal Trust. Fidelity Ohio Municipal Money Market Fund (the money market fund) is a fund of Fidelity Municipal Trust II. Each trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Fidelity Municipal Trust and Fidelity Municipal Trust II (the trusts) are organized as a Massachusetts business trust and a Delaware business trust, respectively. Each fund is authorized to issue an unlimited number of shares. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which require management to make certain estimates and assumptions at the date of the financial statements. Each fund may be affected by economic and political developments in the state of Ohio. The following summarizes the significant accounting policies of the income fund and the money market fund:

Security Valuation.

Each fund calculates its net asset value per share as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. In addition, investments in open-end investment companies are valued at their net asset value each business day. The following summarizes the security valuation policies of the funds.

Income Fund. Securities are valued based upon a computerized matrix system and/or appraisals by a pricing service, both of which consider market transactions and dealer-supplied valuations. Securities (including restricted securities) for which quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost or original cost plus accrued interest, both of which approximate current value.

Money Market Fund. As permitted under Rule 2a-7 of the 1940 Act, and certain conditions therein, securities are valued initially at cost and thereafter assume a constant amortization to maturity of any discount or premium.

Income Taxes. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, each fund is not subject to income taxes to the extent that it distributes all of its taxable income for its fiscal year. The Schedule of Investments includes information regarding income taxes, if any, under the caption "Income Tax Information."

Investment Income. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Distributions to Shareholders. Dividends are declared daily and paid monthly from net investment income. Distributions to shareholders from realized capital gains on investments, if any, are recorded on the ex-dividend date.

Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences, which may result in distribution reclassifications, are primarily due to differing treatments for futures transactions, market discount, capital loss carryforwards and losses deferred due to futures transactions and excise tax regulations. Spartan Ohio Municipal Income Fund also utilized earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.

Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Undistributed net investment income and accumulated undistributed net realized gain (loss) on investments may include temporary book and tax basis differences which will reverse in a subsequent period. Any taxable income or gain remaining at fiscal year end is distributed in the following year.

Short-Term Trading (Redemption) Fees. Shares purchased after April 16, 2001 and held in the income fund less than 30 days are subject to a short-term trading fee equal to .50% of the proceeds of the redeemed shares. The fee, which is retained by the fund, is accounted for as an addition to paid in capital.

Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost.

Change in Accounting Principle. Effective January 1, 2001, the income fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The cumulative effect of this accounting change had no impact on total net assets of the fund, but resulted in a $157,080 increase to the cost of securities held and a corresponding increase to accumulated net undistributed realized gain (loss), based on securities held by the fund on January 1, 2001.

The effect of this change during the period, was to increase net investment income by $31,782; decrease net unrealized appreciation/depreciation by $30,888; and decrease net realized gain (loss) by $894. The Statement of Changes in net assets and financial highlights for the prior periods have not been restated to reflect this change in presentation.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. Each fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is "marked to market" daily and equivalent deliverable securities are held for the transaction. The values of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable fund's Schedule of Investments. Each fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.

4. Fees and Other Transactions with Affiliates.

Management Fee. As each fund's investment adviser, Fidelity Management & Research Company (FMR) receives a monthly fee that is calculated on the basis of a group fee rate plus a fixed individual fund fee rate applied to the average net assets of the fund. The group fee rate is the weighted average of a series of rates and is based on the monthly average net assets of all the mutual funds advised by FMR. The rates ranged from .0920% to .3700% for the period. The annual individual fund fee rate is .25%. In the event that these rates were lower than the contractual rates in effect during the period, FMR voluntarily implemented the above rates, as they resulted in the same or a lower management fee. For the period, the management fees were equivalent to the following annualized rates expressed as a percentage of average net assets:

Spartan Ohio Municipal Income

.38%

Fidelity Ohio Municipal Money Market

.38%

Sub-Adviser Fee. As each fund's investment sub-adviser, Fidelity Investments Money Management, Inc.(FIMM), an affiliate of FMR, receives a fee from FMR of 50% of the management fee payable to FMR. The fee is paid prior to any voluntary expense reimbursements which may be in effect.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Fees and Other Transactions with Affiliates - continued

Transfer Agent and Accounting Fees. Citibank, N.A.(Citibank) is the custodian, transfer agent and shareholder servicing agent for the funds. Citibank has entered into a sub-contract with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the funds' transfer and shareholder servicing agent and accounting functions. The funds pay account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.

For the period, the transfer agent fees were equivalent to the following annualized rates as a percentage of average net assets:

Spartan Ohio Municipal Income

.08%

Fidelity Ohio Municipal Money Market

.13%

Fidelity Municipal Cash Central Fund. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the funds may invest in the Fidelity Municipal Cash Central Fund (the Cash Fund) managed by FIMM, an affiliate of FMR. The Cash Fund is an open-end money market fund available only to investment companies and other accounts managed by FMR and its affiliates. The Cash Fund seeks preservation of capital, liquidity, and current income by investing in high-quality, short-term municipal securities of various states and municipalities. The Cash Fund does not pay a management fee. Income distributions from the Cash Fund are declared daily and paid monthly from net investment income. Income distributions earned by the funds are recorded as interest income in the accompanying financial statements.

Money Market Insurance. Pursuant to an Exemptive Order issued by the the SEC, the money market fund, along with other money market funds advised by FMR or its affiliates, has entered into insurance agreements with FIDFUNDS Mutual Limited (FIDFUNDS), an affiliated mutual insurance company. FIDFUNDS provides limited coverage for certain loss events including issuer default as to payment of principal or interest and bankruptcy or insolvency of a credit enhancement provider. The insurance does not cover losses resulting from changes in interest rates, ratings downgrades or other market conditions. The fund may be subject to a special assessment of up to approximately 2.5 times the fund's annual gross premium if covered losses exceed certain levels. The fund pays premiums to FIDFUNDS on a calendar year basis, which are amortized over one year.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Expense Reductions.

Through arrangements with certain funds custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.

Custody
expense
reduction

Transfer
Agent
expense
reduction

Accounting
expense
reduction

Spartan Ohio Municipal Income

$ 3,285

$ 101,447

$ 8,896

Fidelity Ohio Municipal Money Market

4,930

56,985

0

Semiannual Report

Proxy Voting Results

A special meeting of the fund's shareholders was held on Wednesday, April 18, 2001. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.

PROPOSAL 1

To continue the effectiveness of Article VII, Section 7.04 of the Trust Instrument.

# of
Votes Cast

% of
Votes Cast

Affirmative

232,389,864.98

89.567

Against

9,095,391.26

3.506

Abstain

17,974,005.81

6.927

TOTAL

259,459,262.05

100.00

PROPOSAL 2

To authorize the Trustees to adopt an amended and restated Trust Instrument.*

# of
Votes Cast

% of
Votes Cast

Affirmative

226,733,555.85

87.387

Against

13,050,110.59

5.030

Abstain

19,675,595.61

7.583

TOTAL

259,459,262.05

100.00

PROPOSAL 3

To elect the fourteen nominees specified below as Trustees.*

# of
Votes Cast

% of
Votes Cast

J. Michael Cook

Affirmative

236,446,661.43

91.131

Withheld

23,012,600.62

8.869

TOTAL

259,459,262.05

100.00

Ralph F. Cox

Affirmative

236,515,558.46

91.157

Withheld

22,943,703.59

8.843

TOTAL

259,459,262.05

100.00

# of
Votes Cast

% of
Votes Cast

Phyllis Burke Davis

Affirmative

236,448,058.15

91.131

Withheld

23,011,203.90

8.869

TOTAL

259,459,262.05

100.00

Robert M. Gates

Affirmative

236,505,720.09

91.153

Withheld

22,953,541.96

8.847

TOTAL

259,459,262.05

100.00

Abigail P. Johnson

Affirmative

236,459,009.75

91.135

Withheld

23,000,252.30

8.865

TOTAL

259,459,262.05

100.00

Edward C. Johnson 3d

Affirmative

236,572,207.28

91.179

Withheld

22,887,054.77

8.821

TOTAL

259,459,262.05

100.00

Donald J. Kirk

Affirmative

236,519,386.26

91.159

Withheld

22,939,875.79

8.841

TOTAL

259,459,262.05

100.00

Marie L. Knowles

Affirmative

236,640,920.70

91.205

Withheld

22,818,341.35

8.795

TOTAL

259,459,262.05

100.00

Ned C. Lautenbach

Affirmative

236,499,070.13

91.151

Withheld

22,960,191.92

8.849

TOTAL

259,459,262.05

100.00

Peter S. Lynch

Affirmative

236,641,173.23

91.206

Withheld

22,818,088.82

8.794

TOTAL

259,459,262.05

100.00

# of
Votes Cast

% of
Votes Cast

Marvin L. Mann

Affirmative

236,504,770.70

91.153

Withheld

22,954,491.35

8.847

TOTAL

259,459,262.05

100.00

William O. McCoy

Affirmative

236,548,431.47

91.170

Withheld

22,910,830.58

8.830

TOTAL

259,459,262.05

100.00

Robert C. Pozen

Affirmative

236,606,125.33

91.192

Withheld

22,853,136.72

8.808

TOTAL

259,459,262.05

100.00

William S. Stavropoulos

Affirmative

236,586,672.58

91.185

Withheld

22,872,589.47

8.815

TOTAL

259,459,262.05

100.00

PROPOSAL 4

To approve an amended management contract for Fidelity Ohio Municipal Money Market Fund.

# of
Votes Cast

% of
Votes Cast

Affirmative

231,785,791.57

89.334

Against

8,400,837.59

3.238

Abstain

19,272,632.89

7.428

TOTAL

259,459,262.05

100.00

PROPOSAL 7

To Eliminate Fidelity Ohio Municipal Money Market Fund's fundamental 80% investment policy and adopt a comparable non-fundamental policy.

# of
Votes Cast

% of
Votes Cast

Affirmative

221,128,815.04

85.227

Against

18,840,758.90

7.261

Abstain

19,489,688.11

7.512

TOTAL

259,459,262.05

100.00

PROPOSAL 9

To amend Fidelity Ohio Municipal Money Market Fund's fundamental investment limitation concerning underwriting.

# of
Votes Cast

% of
Votes Cast

Affirmative

224,804,189.64

86.643

Against

15,155,185.34

5.841

Abstain

19,499,887.07

7.516

TOTAL

259,459,262.05

100.00

PROPOSAL 11

To amend Fidelity Ohio Municipal Money Market Fund's fundamental investment limitation concerning lending.

# of
Votes Cast

% of
Votes Cast

Affirmative

222,366,389.38

85.704

Against

17,091,837.11

6.587

Abstain

20,001,035.56

7.709

TOTAL

259,459,262.05

100.00

*Denotes trust-wide proposals and voting results.

Semiannual 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.

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1-800-544-5555

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*0   To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

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Fidelity's Web Site
www.fidelity.com

If you are not currently on the Internet, call EarthLink Sprint at 1-800-288-2967, and be sure to ask for registration number SMD004 to receive a special Fidelity package that includes 30 days of free Internet access. EarthLink is North America's #1 independent Internet access provider.

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* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.

Semiannual Report

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Semiannual Report

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Semiannual Report

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Semiannual Report

Semiannual Report

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Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Adviser

Fidelity Investments Money
Management, Inc.

Officers

Edward C. Johnson 3d, President

Abigail P. Johnson, Senior Vice President

Dwight D. Churchill, Vice President

Boyce I. Greer, Vice President -
Money Market Fund

George A. Fischer, Vice President -
Income Fund

Norman U. Lind, Vice President -
Money Market Fund

Eric D. Roiter, Secretary

Robert A. Dwight, Treasurer

Maria F. Dwyer, Deputy Treasurer

Stanley N. Griffith, Assistant Vice President

John H. Costello, Assistant Treasurer

Paul F. Maloney, Assistant Treasurer

Thomas J. Simpson, Assistant Treasurer

Board of Trustees

J. Michael Cook *

Ralph F. Cox *

Phyllis Burke Davis *

Robert M. Gates *

Abigail P. Johnson

Edward C. Johnson 3d

Donald J. Kirk *

Marie L. Knowles *

Ned C. Lautenbach *

Peter S. Lynch

Marvin L. Mann *

William O. McCoy *

William S. Stavropoulos * - the Fidelity Ohio Municipal Money Market Fund

* Independent trustees

Advisory Board

Robert C. Pozen

William S. Stavropoulos - the Spartan Ohio Municipal Income Fund

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Spartan®

Pennsylvania
Municipal

Funds

Semiannual Report

June 30, 2001

(2_fidelity_logos)(registered trademark)

Contents

President's Message

<Click Here>

Ned Johnson on investing strategies.

Spartan Pennsylvania Municipal Income Fund

Performance

<Click Here>

How the fund has done over time.

Fund Talk

<Click Here>

The manager's review of fund performance, strategy and outlook.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Spartan Pennsylvania Municipal Money Market Fund

Performance

<Click Here>

How the fund has done over time.

Fund Talk

<Click Here>

The manager's review of fund performance, strategy and outlook.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months
and one year.

Investments

<Click Here>

A complete list of the fund's investments.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Proxy Voting Results

<Click Here>

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

(Recycle graphic)   This report is printed on recycled paper using soy-based inks.

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.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Neither the funds nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Semiannual Report

President's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Amid a slowing economy highlighted by frequent corporate earnings disappointments, mounting unemployment and waning consumer confidence, equity investors abandoned expensive, large-cap growth stocks in favor of the current earnings delivered by small- and mid-cap value stocks during the first six months of 2001. Fixed-income investments also offered a measure of stability, as corporate, mortgage and agency securities generally outperformed many popular equity indexes through the mid-point of the year.

While it's impossible to predict the future direction of the markets with any degree of certainty, there are certain basic principles that can help investors plan for their future needs.

The longer your investment time frame, the less likely it is that you will be affected by short-term market volatility. A 10-year investment horizon appropriate for saving for a college education, for example, enables you to weather market cycles in a long-term fund, which may have a higher risk potential, but also has a higher potential rate of return.

An intermediate-length fund could make sense if your investment horizon is two to four years, while a short-term bond fund could be the right choice if you need your money in one or two years.

If your time horizon is less than a year, you might want to consider moving some of your bond investment into a money market fund. These funds seek income and a stable share price by investing in high-quality, short-term investments. Of course, it's important to remember that an investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these types of funds.

Finally, no matter what your time horizon or portfolio diversity, it makes good sense to follow a regular investment plan, investing a certain amount of money in a fund at the same time each month or quarter and periodically reviewing your overall portfolio. By doing so, you won't get caught up in the excitement of a rapidly rising market, nor will you buy all your shares at market highs. While this strategy - known as dollar cost averaging - won't assure a profit or protect you from a loss in a declining market, it should help you lower the average cost of your purchases. Of course, you should consider your financial ability to continue your purchases through periods of low price levels before undertaking such a strategy.

If you have questions, please call us at 1-800-544-6666, or visit our web site at www.fidelity.com. We are available 24 hours a day, seven days a week to provide you the information you need to make the investments that are right for you.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Spartan Pennsylvania Municipal Income Fund

Performance: The Bottom Line

There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). You can also look at the fund's income, as measured by the fund's yield, to measure performance.

Cumulative Total Returns

Periods ended June 30, 2001

Past 6
months

Past 1
year

Past 5
years

Past 10
years

Spartan PA Municipal Income

2.92%

9.85%

34.21%

97.63%

LB Pennsylvania Municipal Bond

3.10%

9.95%

36.08%

n/a*

Pennsylvania Municipal Debt Funds Average

2.50%

9.12%

29.09%

87.62%

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Lehman Brothers Pennsylvania Municipal Bond Index - a market value-weighted index of Pennsylvania investment-grade municipal bonds with maturities of one year or more. To measure how the fund's performance stacked up against its peers, you can compare it to the Pennsylvania municipal debt funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 63 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.

Average Annual Total Returns

Periods ended June 30, 2001

Past 1
year

Past 5
years

Past 10
years

Spartan PA Municipal Income

9.85%

6.06%

7.05%

LB Pennsylvania Municipal Bond

9.95%

6.36%

n/a*

Pennsylvania Municipal Debt Funds Average

9.12%

5.23%

6.49%

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year. (Note: Lipper calculates average annual total returns by annualizing each fund's total return, then taking the arithmetic average. This may produce a different figure than that obtained by averaging the cumulative total returns and annualizing the result.)

* Not available

Semiannual Report

Spartan Pennsylvania Municipal Income Fund
Performance - continued

$10,000 Over 10 Years



$10,000 Over 10 Years: Let's say hypothetically that $10,000 was invested in Spartan Pennsylvania Municipal Income Fund on June 30, 1991. As the chart shows, by June 30, 2001, the value of the investment would have grown to $19,763 - a 97.63% increase on the initial investment. For comparison, look at how the Lehman Brothers Municipal Bond Index - a market value-weighted index of investment-grade municipal bonds with maturities of one year or more - did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $19,967 - a 99.67% increase.

Understanding
Performance

How a fund did yesterday is no guarantee of how it will do tomorrow. Bond prices, for example, generally move in the opposite direction of interest rates. In turn, the share price, return and yield of a fund that invests in bonds will vary. That means if you sell your shares during a market downturn, you might lose money. But if you can ride out the market's ups and downs, you may have a gain.

3

Semiannual Report

Spartan Pennsylvania Municipal Income Fund
Performance - continued

Total Return Components

Six months ended June 30,

Years ended December 31,

2001

2000

1999

1998

1997

1996

Dividend returns

2.35%

5.22%

4.37%

4.55%

4.99%

5.01%

Capital returns

0.57%

5.77%

-6.53%

1.22%

3.35%

-0.99%

Total returns

2.92%

10.99%

-2.16%

5.77%

8.34%

4.02%

Total return components include both dividend returns and capital returns. A dividend return reflects the actual dividends paid by the fund. A capital return reflects both the amount paid by the fund to shareholders as capital gain distributions and changes in the fund's share price. Both returns assume the dividends or capital gains, if any, paid by the fund are reinvested.

Dividends and Yield

Periods ended June 30, 2001

Past 1
month

Past 6
months

Past 1
year

Dividends per share

4.04¢

24.68¢

49.62¢

Annualized dividend rate

4.59%

4.65%

4.71%

30-day annualized yield

4.05%

-

-

30-day annualized tax-equivalent yield

6.51%

-

-

Dividends per share show the income paid by the fund for a set period. If you annualize this number, based on an average share price of $10.72 over the past one month, $10.71 over the past six months and $10.54 over the past one year, you can compare the fund's income over these three periods. The 30-day annualized yield is a standard formula for all bond funds based on the yields of the bonds in the fund, averaged over the past 30 days. This figure shows you the yield characteristics of the fund's investments at the end of the period. It also helps you compare funds from different companies on an equal basis. The tax-equivalent yield shows what you would have to earn on a taxable investment to equal the fund's tax-free yield, if you're in the 37.79% combined effective federal and state tax bracket, but does not reflect the payment of the federal alternative minimum tax, if applicable.

Semiannual Report

Spartan Pennsylvania Municipal Income Fund

Fund Talk: The Manager's Overview

Market Recap

In an effort to kick-start the sputtering U.S. economy, the Federal Reserve Board reduced key short-term interest rates six times during the first half of 2001, lowering the fed funds target rate from 6.50% to 3.75%. While the full effect of these cuts likely won't be felt for several months, they had an immediate impact on the performance of tax-free municipal bonds, particularly those of short and intermediate maturity, which typically benefit in a declining interest-rate environment. The muni market also received a boost given the steady demand from institutional, retail and high-net-worth investors, as well as an encouraging credit upgrade environment. For the overall six-month period ending June 30, 2001, the Lehman Brothers Municipal Bond Index - an index of approximately 40,000 investment-grade, fixed-rate, tax-exempt bonds, gained 2.88%. As is often the case in financial markets, some of the good news was offset by several factors. In April, for instance, the $25 billion downgrade of California's general obligation bonds - the largest muni downgrade on record - tempered performance. Additionally, as interest rates continued to trend downward, so did the prices of long-term munis. Also, President Bush's newly enacted tax program raised moderate concerns about higher muni supply and lower muni demand going forward.

(Portfolio Manager photograph)
An interview with Christine Thompson, Portfolio Manager of Spartan Pennsylvania Municipal Income Fund

Q. How did the fund perform, Christine?

A. For the six-month period that ended June 30, 2001, the fund had a total return of 2.92%. To get a sense of how the fund did relative to its competitors, the Pennsylvania municipal debt funds average returned 2.50% for the same six-month period, according to Lipper Inc. Additionally, the Lehman Brothers Pennsylvania Municipal Bond Index, which tracks the types of securities in which the fund invests, returned 3.10%. For the 12-month period that ended June 30, 2001, the fund had a total return of 9.85%. In comparison, the Pennsylvania municipal debt funds average returned 9.12% and the Lehman Brothers index returned 9.95% for the same 12-month period.

Q. What drove the fund's performance and helped it outpace it peers during the past six months?

A. Falling interest rates, of course, were the main factor driving the municipal bond market's and the fund's performance during the period. Municipal bonds generally performed well as the Federal Reserve Board cut interest rates to stimulate the sagging economy. From January through June, the Fed cut short-term rates six times by a combined total of 2.75 percentage points. In response, short- and intermediate-maturity bond yields generally fell, pushing their prices higher. Long-maturity bonds, on the other hand, tended to stall due to concerns about creeping inflation, now and in the future. The performance discrepancy between long- and shorter-maturity bonds was a key reason why the fund outpaced its peers. I kept the fund's investments broadly diversified, emphasizing specific maturities that, based on supply and demand trends, offered the best total return potential. By doing so, the fund benefited from the rally enjoyed by shorter-term bonds. That said, the fund's stake in long-maturity bonds turned in lackluster returns on a relative basis.

Semiannual Report

Spartan Pennsylvania Municipal Income Fund
Fund Talk: The Manager's Overview - continued

Q. What other factors aided performance?

A. The fund's growing stake in health care bonds also was a plus for performance because the sector outperformed the broader Pennsylvania municipal market. During most of 2000, these groups had come under pressure due to a lack of demand for their bonds. Investors generally avoided health care bonds following the cutbacks in Medicare and the expansion of managed care programs, both of which curtailed medical reimbursement rates and put pressure on hospital operating results. This year, however, hospital financial trends have stabilized and lower valuations lured investors back to health care securities.

Q. Given Pennsylvania's economic slowdown, did you make any changes to the fund's investments during the past six months?

A. Not really, since I already had positioned the fund anticipating economic weakness in 2001. I maintained the fund's relatively high credit quality, with more than 89% of its investments in bonds rated A or higher by Moody's Investors Service or Standard & Poor's® at the end of the period. In addition, approximately two-thirds of the fund's investments were insured, meaning their principal and interest payments are guaranteed by a municipal bond insurer. My emphasis on these investment-grade and insured bonds reflected that, for the most part, I didn't feel lower-quality bonds offered enough incentive in the form of additional yield for their increased risk, especially given the weakness of the economy.

Q. What sectors did you emphasize?

A. In another strategy to prepare for a worsening economy, I kept the fund diversified away from economically sensitive sectors - such as general obligation bonds - and into groups such as education. General obligation bonds made up about 31% of the Pennsylvania municipal market, but only 24.5% of the fund's net assets at the end of the period. The education sector continued to be supported by favorable demographic trends with the college-aged population expanding. I also focused on essential service bonds - including those issued by water and sewer facilities - that have shown above-average financial stability during weaker economic cycles.

Q. What's ahead for the municipal market?

A. The direction of interest rates and, ultimately, the performance of the bond markets largely will be determined by the strength of the economy. At the end of June, bond prices reflected expectations for further interest-rate cuts. Continued economic weakness could help sustain the drop in interest rates, while an economic rebound could spell higher rates in the fall. As for municipals in particular, their performance also will be dependent on whether investors view them as attractively valued relative to other fixed-income alternatives.

Semiannual Report

Spartan Pennsylvania Municipal Income Fund
Fund Talk: The Manager's Overview - continued

The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Fund Facts

Goal: to provide high current income exempt from federal income and Pennsylvania personal income taxes

Fund number: 402

Trading symbol: FPXTX

Start date: August 6, 1986

Size: as of June 30, 2001, more than $258 million

Manager: Christine Thompson, since 1998; manager, various Fidelity and Spartan municipal income funds; joined Fidelity in 1985

3

Christine Thompson on trends in credit quality:

"During the past year, municipal issuers across the nation and in Pennsylvania generally enjoyed strong revenue growth as tax receipts and user fees exceeded budget forecasts. Infrastructure spending on transportation projects and school facility improvements accelerated, but generally were met with strong taxpayer support that eased the challenges associated with financing such projects. That said, revenue growth is slowing in response to weaker economic conditions, although most Pennsylvania issuers have responded responsibly so far.

"Within the municipal market, there were some widely divergent trends. After two years of general decline, many health care issuers have begun to stabilize. In light of this development, the fund has taken a selective approach, concentrating hospital bond investments in those companies identified as the dominant service providers in their market with the ability to translate their competitive strength into higher prices.

"On the other hand, corporate-backed municipal bond issues lagged as slowing economic growth gave rise to heightened concerns about leveraged corporate balance sheets. Corporate-backed municipal issues are concentrated in some cyclical industry groups - such as the paper, automobile and airline industries - and in those industries that are subject to aggressive restructuring - such as the electric utility industry."

Semiannual Report

Spartan Pennsylvania Municipal Income Fund

Investment Changes

Top Five Sectors as of June 30, 2001

% of fund's
net assets

% of fund's net assets
6 months ago

General Obligations

24.5

26.3

Education

17.7

16.3

Health Care

13.5

15.0

Water & Sewer

12.2

11.1

Escrowed/Pre-Refunded

11.1

10.8

Average Years to Maturity as of June 30, 2001

6 months ago

Years

13.1

14.0

Average years to maturity is based on the average time remaining until principal payments are expected from each of the fund's bonds, weighted by dollar amount.

Duration as of June 30, 2001

6 months ago

Years

6.3

6.5

Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example.

Quality Diversification (Moody's Ratings)

As of June 30, 2001

As of December 31, 2000

Aaa 65.8%

Aaa 64.6%

Aa, A 23.8%

Aa, A 23.5%

Baa 8.4%

Baa 9.8%

Not Rated 0.8%

Not Rated 0.9%

Short-term
Investments 1.2%

Short-term
Investments 1.2%



Where Moody's ratings are not available, we have used S&P ® ratings. Amounts shown are as a percentage of the fund's investments.

Semiannual Report

Spartan Pennsylvania Municipal Income Fund

Investments June 30, 2001

(Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 98.6%

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Pennsylvania - 97.0%

Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.):

Series A:

5.75% 1/1/12 (MBIA Insured) (d)

Aaa

$ 4,000,000

$ 4,346,560

5.75% 1/1/14 (MBIA Insured) (d)

Aaa

3,000,000

3,252,810

Series A1:

5.75% 1/1/07 (MBIA Insured) (d)

Aaa

1,500,000

1,611,045

5.75% 1/1/08 (MBIA Insured) (d)

Aaa

1,000,000

1,080,680

5.75% 1/1/11 (MBIA Insured) (d)

Aaa

2,000,000

2,175,940

Allegheny County Higher Ed. Bldg. Auth. Univ. Rev. (Duquesne Univ. Proj.) 6.5% 3/1/10 (AMBAC Insured)

Aaa

400,000

459,084

Allegheny County Hosp. Dev. Auth.
(Health Ctr.-UPMC Health Sys. Proj.) Series A:

4.625% 8/1/12 (MBIA Insured)

Aaa

1,000,000

977,100

4.625% 8/1/14 (MBIA Insured)

Aaa

4,060,000

3,883,634

5.55% 4/1/12 (MBIA Insured)

Aaa

2,845,000

2,990,949

Allegheny County Indl. Dev. Auth. Rev.
(YMCA Pittsburgh Proj.) Series 1990, 8.75% 3/1/10 (f)

-

1,935,000

1,970,643

Allegheny County Port Auth. Spl. Rev. 6.125% 3/1/29 (MBIA Insured) (Pre-Refunded to 3/1/09 @ 101) (e)

Aaa

2,000,000

2,261,440

Allegheny County San. Auth. Swr. Rev.:

0% 12/1/12 (FGIC Insured) (Escrowed to Maturity) (e)

Aaa

2,260,000

1,308,382

5.5% 12/1/30 (MBIA Insured)

Aaa

2,000,000

2,043,340

Butler Area School District 0% 11/15/19
(FGIC Insured) (Pre-Refunded to 11/15/07
@ 50.177) (e)

Aaa

5,650,000

2,169,600

Canon-McMillan School District Series 2001 B, 5.75% 12/1/33 (FGIC Insured)

AAA

7,695,000

8,037,428

Chester County Health & Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series B:

5% 5/15/08 (AMBAC Insured)

Aaa

600,000

626,118

5.25% 5/15/22 (AMBAC Insured)

Aaa

1,350,000

1,338,080

Cumberland County Muni. Auth. College Rev. (Dickerson College Proj.) Series A, 5.5% 11/1/30 (AMBAC Insured)

Aaa

4,200,000

4,277,238

Delaware County Auth. College Rev. (Haverford College Proj.):

5.75% 11/15/29

Aa3

5,000,000

5,229,900

6% 11/15/30

Aa3

3,620,000

3,894,758

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Pennsylvania - continued

Delaware County Auth. Hosp. Rev.
(Crozer-Chester Med. Ctr. Proj.):

6% 12/15/09

Baa2

$ 1,500,000

$ 1,490,310

6% 12/15/20

Baa2

2,700,000

2,476,278

Delaware County Indl. Dev. Auth. Rev. (Philadelphia Suburban Wtr. Co. Proj.) 6% 6/1/29 (FGIC Insured) (d)

Aaa

2,500,000

2,637,850

Harrisburg Auth. Rev. (Pooled Bond Prog.)
Series I, 5.625% 4/1/15 (MBIA Insured)

Aaa

445,000

461,443

Hazleton Area School District 6.5% 3/1/05
(FSA Insured)

AAA

2,165,000

2,365,717

Keystone Oaks School District Series C, 5.829% 9/1/16 (AMBAC Insured) (Pre-Refunded to 9/4/02 @ 102) (e)

Aaa

5,900,000

6,205,974

Meadville Gen. Oblig. Series B, 6% 10/1/05 (AMBAC Insured) (Escrowed to Maturity) (e)

Aaa

3,210,000

3,382,891

Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A, 5% 6/1/05 (AMBAC Insured)

Aaa

3,535,000

3,686,192

Montgomery County Higher Ed. & Health Auth. Rev. (Health Care-Holy Redeemer Health Proj.) Series A:

5.5% 10/1/05 (AMBAC Insured)

Aaa

2,240,000

2,386,653

5.5% 10/1/08 (AMBAC Insured)

Aaa

1,000,000

1,074,820

Northumberland County Auth. Commonwealth Lease Rev. (State Correctional Facilities Proj.) 0% 10/15/10 (MBIA Insured) (Escrowed to Maturity) (e)

Aaa

1,000,000

654,580

Pennsbury School District 6% 8/15/05
(FGIC Insured)

Aaa

1,605,000

1,743,784

Pennsylvania Convention Ctr. Auth. Rev. Series A:

6.6% 9/1/09 (MBIA Insured)

Aaa

9,150,000

10,029,681

6.7% 9/1/14 (MBIA Insured)

Aaa

3,965,000

4,354,085

Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Amtrak Proj.) Series 2001 A:

6.25% 11/1/31 (d)

A3

3,200,000

3,212,288

6.375% 11/1/41 (d)

A3

1,300,000

1,305,460

Pennsylvania Gen. Oblig.:

First Series, 6.125% 9/15/03

Aa2

5,000,000

5,175,550

Second Series:

0% 7/1/04 (MBIA Insured)

Aaa

2,700,000

2,413,395

0% 7/1/07 (AMBAC Insured)

Aaa

1,770,000

1,369,679

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Pennsylvania - continued

Pennsylvania Higher Ed. Assistance Agcy. 5.875% 12/15/30 (MBIA Insured)

Aaa

$ 1,500,000

$ 1,584,345

Pennsylvania Higher Edl. Facilities Auth. College & Univ. Rev.:

(RIDC Reg'l. Growth-Carnegie Mellon Univ.) 6% 11/1/05

AA-

1,000,000

1,088,110

(Univ. of Pennsylvania Proj.):

Series A:

5.9% 9/1/15

A1

1,200,000

1,248,060

6.5% 9/1/02

A1

2,750,000

2,858,048

6.5% 9/1/04

A1

2,650,000

2,885,400

Series B:

6.5% 9/1/02

A1

1,950,000

2,026,616

6.5% 9/1/04

A1

2,100,000

2,286,543

7% 9/1/05

A1

2,000,000

2,246,980

Pennsylvania Higher Edl. Facilities Auth. Rev.:

(Drexel Univ. Proj.):

6% 5/1/24

A-

1,000,000

1,028,180

6% 5/1/29

A-

3,470,000

3,561,122

(Lafayette College Proj.) 6% 5/1/30

Aa3

2,500,000

2,651,275

(UPMC Health Sys. Proj.):

Series 2001 A, 6% 1/15/31

A+

1,500,000

1,518,435

Series A, 4.625% 8/1/16 (FSA Insured)

Aaa

3,250,000

3,032,868

Pennsylvania Hsg. Fin. Agcy.:

(Single Family Mtg. Prog.):

Series 51, 5.65% 4/1/20 (d)

Aa2

1,305,000

1,306,462

Series 52B, 5.55% 10/1/12 (d)

Aa

1,365,000

1,391,426

Series 53A, 5.4% 10/1/27 (d)

Aa

1,315,000

1,319,155

Series 54A, 5.375% 10/1/28 (d)

Aa2

1,485,000

1,489,232

6.1% 10/1/13 (d)

Aa

5,000,000

5,151,500

Pennsylvania Indl. Dev. Auth. Rev. 7% 1/1/07 (AMBAC Insured)

Aaa

1,000,000

1,137,890

Pennsylvania State Univ.:

5% 3/1/09 (b)

Aa2

3,000,000

3,088,380

5.25% 3/1/11 (b)

Aa2

3,290,000

3,424,824

Philadelphia Arpt. Rev.:

Series 1998, 5.375% 6/15/10
(FGIC Insured) (d)

Aaa

2,000,000

2,113,060

5.375% 6/15/11 (FGIC Insured) (d)

Aaa

3,770,000

3,974,636

6% 6/15/08 (FGIC Insured) (d)

Aaa

3,000,000

3,301,440

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Pennsylvania - continued

Philadelphia Gas Works Rev.:

14th Series A:

6.375% 7/1/26

Baa2

$ 4,600,000

$ 4,523,640

6.375% 7/1/26 (Pre-Refunded to 7/1/03 @ 102) (e)

Baa2

1,905,000

2,056,409

Third Series:

5% 8/1/05 (FSA Insured)

Aaa

1,000,000

1,045,910

5% 8/1/06 (FSA Insured)

Aaa

1,000,000

1,049,370

Philadelphia Gen. Oblig.:

5.25% 9/15/12 (FSA Insured)

Aaa

1,455,000

1,532,202

5.25% 9/15/13 (FSA Insured)

Aaa

1,365,000

1,422,194

Philadelphia Hosp. & Higher Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series A:

5% 5/15/09

A1

1,000,000

1,010,410

5.5% 5/15/08

A1

1,000,000

1,046,880

Philadelphia Hosps. & Higher Ed. Facilities Auth. Hosp. Rev. (Pennsylvania Hosp. Proj.):

6.05% 7/1/04 (Escrowed to Maturity) (e)

Baa3

2,500,000

2,681,625

6.15% 7/1/05 (Escrowed to Maturity) (e)

Baa3

2,100,000

2,292,423

6.25% 7/1/06 (Escrowed to Maturity) (e)

Baa3

2,600,000

2,884,518

Philadelphia Muni. Auth. Rev. (Muni. Svcs. Bldg. Lease Prog.) 0% 3/15/11 (FSA Insured)

Aaa

1,000,000

628,940

Philadelphia School District:

Series A2, 4.5% 4/1/23 (MBIA Insured)

Aaa

3,000,000

2,656,530

Series B, 5.375% 4/1/27 (AMBAC Insured)

Aaa

4,000,000

4,013,240

Series C, 5.75% 3/1/29 (MBIA Insured)

Aaa

5,000,000

5,222,050

Philadelphia Wtr. & Wastewtr. Rev.:

Series 14, 0% 10/1/08 (MBIA Insured)

Aaa

5,300,000

3,847,376

Series 1999 A, 5% 12/15/05
(AMBAC Insured)

Aaa

2,000,000

2,104,780

5.15% 6/15/04 (FGIC Insured)

Aaa

2,000,000

2,065,940

5.5% 6/15/15 (FSA Insured)

Aaa

1,805,000

1,849,854

6.75% 8/1/04 (MBIA Insured)

Aaa

2,085,000

2,283,242

Pittsburgh Gen. Oblig. 5.5% 9/1/12
(AMBAC Insured)

Aaa

1,065,000

1,119,720

Pittsburgh School District Series C:

0% 8/1/07 (AMBAC Insured)

Aaa

2,610,000

2,012,519

0% 8/1/08 (AMBAC Insured)

Aaa

2,000,000

1,462,540

Pittsburgh Wtr. & Swr. Auth. Wtr. & Swr. Sys. Rev. Series A:

0% 9/1/04 (FGIC Insured) (Escrowed to Maturity) (e)

Aaa

3,300,000

2,942,214

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount

Value
(Note 1)

Pennsylvania - continued

Pittsburgh Wtr. & Swr. Auth. Wtr. & Swr. Sys. Rev. Series A: - continued

4.75% 9/1/16 (FGIC Insured)

Aaa

$ 3,000,000

$ 2,904,630

6.5% 9/1/13 (FGIC Insured)

Aaa

10,000,000

11,750,995

Scranton-Lackawanna Health & Welfare Auth. Rev. (Cmnty. Med. Ctr. Proj.) 5.5% 7/1/12 (MBIA Insured)

Aaa

3,375,000

3,573,045

Southeastern Pennsylvania Trans. Auth. Spl. Rev. Series A, 6.5% 3/1/04 (FGIC Insured) (Escrowed to Maturity) (e)

Aaa

85,000

91,588

Swarthmore Boro Auth. College Rev. 5% 9/15/28

Aaa

2,000,000

1,914,200

Upper Darby School District Series B, 5% 2/15/06 (AMBAC Insured)

Aaa

1,000,000

1,046,010

Westmoreland County Indl. Dev. Auth. Rev. (Nat'l. Waste & Energy Corp./Valley Landfill Expansion Proj.) 5.1%, tender 5/1/09 (c)(d)

BBB

2,700,000

2,608,470

Wilkens Area Indl. Dev. Auth. Rev. (Fairview Extended Care Proj.) Series B, 4.55% 1/1/21 (MBIA Insured)

Aaa

1,500,000

1,521,000

York County Solid Waste & Refuse Auth. Solid Waste Sys. Rev. 5.25% 12/1/05 (FGIC Insured)

Aaa

5,000,000

5,310,150

250,549,960

Puerto Rico - 1.6%

Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev.:

Series 1996 Y, 5% 7/1/36 (FSA Insured)

Aaa

3,100,000

3,016,145

Series Y, 5.5% 7/1/36 (FSA Insured)

Aaa

400,000

418,692

Puerto Rico Commonwealth Urban Renewal & Hsg. Corp. 7.875% 10/1/04

Baa3

800,000

809,424

4,244,261

TOTAL MUNICIPAL BONDS

(Cost $244,935,089)

254,794,221

Municipal Notes - 1.2%

Principal
Amount

Value
(Note 1)

Pennsylvania - 1.2%

Northampton County Indl. Dev. Auth. Rev. (Citizens Communications Co. Proj.) Series 1991, 4.95% tender 7/12/01, CP mode (d)
(Cost $3,000,000)

$ 3,000,000

$ 3,000,090

TOTAL INVESTMENT PORTFOLIO - 99.8%

(Cost $247,935,089)

257,794,311

NET OTHER ASSETS - 0.2%

495,627

NET ASSETS - 100%

$ 258,289,938

Security Type Abbreviation

CP - COMMERCIAL PAPER

Legend

(a) S&P credit ratings are used in the absence of a rating by Moody's Investors Service, Inc.

(b) Security purchased on a delayed delivery or when-issued basis.

(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(e) Security collateralized by an amount sufficient to pay interest and principal.

(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933.

Additional information on each holding is as follows:

Security

Acquisition Date

Cost

Allegheny County Indl. Dev. Auth. Rev. (YMCA Pittsburgh Proj.) Series 1990, 8.75% 3/1/10

3/13/90

$ 1,935,000

Other Information

The composition of long-term debt holdings as a percentage of total value of investments in securities, is as follows (ratings are unaudited):

Moody's Ratings

S&P Ratings

Aaa, Aa, A

82.8%

AAA, AA, A

83.6%

Baa

7.5%

BBB

9.2%

Ba

0.0%

BB

0.0%

B

0.0%

B

0.0%

Caa

0.0%

CCC

0.0%

Ca, C

0.0%

CC, C

0.0%

D

0.0%

The percentage not rated by Moody's or S&P amounted to 0.8%.

Purchases and sales of securities, other than short-term securities, aggregated $39,386,347 and $30,435,020.

The fund invested in securities that are not registered under the Securities Act of 1933. At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,970,643 or 0.8% of net assets.

The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows:

General Obligations

24.5%

Education

17.7

Health Care

13.5

Water & Sewer

12.2

Escrowed/Pre-Refunded

11.1

Transportation

10.2

Others* (individually less than 5%)

10.8

100.0%

* Includes short-term investments and net other assets.

Income Tax Information

At June 30, 2001, the aggregate cost of investment securities for income tax purposes was $247,843,353. Net unrealized appreciation aggregated $9,950,958, of which $10,517,481 related to appreciated investment securities and $566,523 related to depreciated investment securities.

At December 31, 2000, the fund had a capital loss carryforward of approximately $376,000 all of which will expire on December 31, 2008.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Pennsylvania Municipal Income Fund

Financial Statements

Statement of Assets and Liabilities

June 30, 2001 (Unaudited)

Assets

Investment in securities, at value (cost $247,935,089) - See accompanying schedule

$ 257,794,311

Cash

4,313,325

Receivable for fund shares sold

462

Interest receivable

3,449,816

Other receivables

39,239

Total assets

265,597,153

Liabilities

Payable for investments purchased on a
delayed delivery basis

$ 6,500,108

Payable for fund shares redeemed

432,114

Distributions payable

258,531

Accrued management fee

80,885

Other payables and accrued expenses

35,577

Total liabilities

7,307,215

Net Assets

$ 258,289,938

Net Assets consist of:

Paid in capital

$ 248,568,531

Undistributed net investment income

87,581

Accumulated undistributed net realized
gain (loss) on investments

(225,396)

Net unrealized appreciation (depreciation) on investments

9,859,222

Net Assets, for 24,139,057 shares outstanding

$ 258,289,938

Net Asset Value, offering price and redemption price per share ($258,289,938 ÷ 24,139,057 shares)

$10.70

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Pennsylvania Municipal Income Fund
Financial Statements - continued

Statement of Operations

Six months ended June 30, 2001 (Unaudited)

Investment Income

Interest

$ 6,421,747

Expenses

Management fee

$ 475,060

Transfer agent fees

94,521

Accounting fees and expenses

38,173

Non-interested trustees' compensation

524

Custodian fees and expenses

2,479

Registration fees

18,720

Audit

14,722

Legal

667

Total expenses before reductions

644,866

Expense reductions

(108,195)

536,671

Net investment income

5,885,076

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on investment securities

809,275

Change in net unrealized appreciation (depreciation)
on investment securities

514,133

Net gain (loss)

1,323,408

Net increase (decrease) in net assets resulting
from operations

$ 7,208,484

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Pennsylvania Municipal Income Fund
Financial Statements - continued

Statement of Changes in Net Assets

Six months ended
June 30, 2001
(Unaudited)

Year ended
December 31,
2000

Increase (Decrease) in Net Assets

Operations
Net investment income

$ 5,885,076

$ 11,455,241

Net realized gain (loss)

809,275

(61,595)

Change in net unrealized appreciation (depreciation)

514,133

13,228,091

Net increase (decrease) in net assets resulting
from operations

7,208,484

24,621,737

Distributions to shareholders
From net investment income

(5,813,220)

(11,464,193)

From net realized gain

(23,148)

-

Total distributions

(5,836,368)

(11,464,193)

Share transactions
Net proceeds from sales of shares

22,515,995

21,400,097

Reinvestment of distributions

4,266,051

8,241,725

Cost of shares redeemed

(13,240,677)

(41,438,892)

Net increase (decrease) in net assets resulting
from share transactions

13,541,369

(11,797,070)

Redemption fees

7,266

7,929

Total increase (decrease) in net assets

14,920,751

1,368,403

Net Assets

Beginning of period

243,369,187

242,000,784

End of period (including undistributed net investment income of $87,581 and $15,725, respectively)

$ 258,289,938

$ 243,369,187

Other Information

Shares

Sold

2,101,864

2,095,494

Issued in reinvestment of distributions

399,187

804,244

Redeemed

(1,235,800)

(4,070,043)

Net increase (decrease)

1,265,251

(1,170,305)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

Six months ended June 30, 2001

Years ended December 31,

(Unaudited)

2000

1999

1998

1997

1996

Selected Per-Share Data

Net asset value, beginning of period

$ 10.640

$ 10.060

$ 10.830

$ 10.810

$ 10.490

$ 10.670

Income from Investment Operations
Net investment
income

.251 D, F

.494 D

.482

.483

.501

.520

Net realized
and unrealized gain (loss)

.057 F

.581

(.709)

.126

.350

(.109)

Total from investment operations

.308

1.075

(.227)

.609

.851

.411

Less Distributions

From net investment income

(.247)

(.495)

(.482)

(.483)

(.501)

(.520)

From net
realized gain

(.001)

-

(.042)

(.107)

(.030)

(.071)

In excess of net
realized gain

-

-

(.020)

-

-

-

Total distributions

(.248)

(.495)

(.544)

(.590)

(.531)

(.591)

Redemption fees added to paid in capital

.000

.000

.001

.001

.000

.000

Net asset value,
end of period

$ 10.700

$ 10.640

$ 10.060

$ 10.830

$ 10.810

$ 10.490

Total Return B, C

2.92%

10.99%

(2.16)%

5.77%

8.34%

4.02%

Ratios and Supplemental Data

Net assets, end of period (000 omitted)

$ 258,290

$ 243,369

$ 242,001

$ 269,484

$ 264,693

$ 270,977

Ratio of expenses to average net assets

.52% A

.52%

.51%

.55%

.55%

.55%

Ratio of expenses to average net assets after all expense reductions

.43% A, E

.44% E

.51%

.55%

.55%

.53% E

Ratio of net investment income to average net assets

4.71% A, F

4.84%

4.58%

4.45%

4.74%

4.98%

Portfolio turnover rate

25% A

26%

28%

25%

26%

53%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Net investment income per share has been calculated based on average shares outstanding during the period.

E FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses.

F Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The effect of this change during the period was to increase net investment income per share by $.001 and decrease net realized and unrealized gain (loss) per share by $.001. Without this change the Ratio of net investment income to average net assets would have been 4.69%. Per share, ratios and supplemental data for prior periods have not been restated to reflect this change in presentation.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Pennsylvania Municipal Money Market Fund

Performance: The Bottom Line

To measure a money market fund's performance, you can look at either total return or yield. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income, but does not include the $5 account closeout fee on an average-sized account. Yield measures the income paid by a fund. Since a money market fund tries to maintain a $1 share price, yield is an important measure of performance. If Fidelity had not reimbursed certain fund expenses, the past 10 year total returns would have been lower.

Cumulative Total Returns

Periods ended June 30, 2001

Past 6
months

Past 1
year

Past 5
years

Past 10
years

Spartan PA Municipal Money Market

1.53%

3.53%

17.49%

36.29%

Pennsylvania Tax-Free Money Market
Funds Average

1.38%

3.26%

16.35%

34.19%

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. To measure how the fund's performance stacked up against its peers, you can compare it to the Pennsylvania tax-free money market funds average, which reflects the performance of tax-free money market funds with similar objectives tracked by iMoneyNet, Inc. The past six months average represents a peer group of 14 mutual funds.

Average Annual Total Returns

Periods ended June 30, 2001

Past 1
year

Past 5
years

Past 10
years

Spartan PA Municipal Money Market

3.53%

3.28%

3.14%

Pennsylvania Tax-Free Money Market
Funds Average

3.26%

3.07%

2.98%

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.

Semiannual Report

Spartan Pennsylvania Municipal Money Market Fund
Performance - continued

Yields

7/2/01

4/2/01

1/1/01

10/2/00

7/3/00

Spartan Pennsylvania
Muni Money Market

2.59%

3.24%

4.31%

4.64%

4.18%

Pennsylvania Tax-Free
Money Market Funds Average

2.33%

2.89%

3.90%

3.58%

3.83%

Spartan Pennsylvania
Municipal Money Market -
Tax-equivalent

4.16%

5.21%

6.93%

7.45%

6.72%

Portion of fund's income
subject to state taxes

1.26%

0.61%

0.00%

1.92%

0.00%



Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, expressed as annual percentage rates. A yield that assumes income earned is reinvested or compounded is called an effective yield. The table above shows the fund's current seven-day yield at quarterly intervals over the past year. You can compare these yields to the Pennsylvania tax-free money market funds average as tracked by iMoneyNet, Inc. or you can look at the fund's tax-equivalent yield, which is based on a combined effective federal and state income tax rate of 37.79%. The fund's yields mentioned above reflect that a portion of the fund's income was subject to state taxes. A portion of the fund's income may be subject to the federal alternative minimum tax.

A money market fund's total returns and yields will vary, and reflect past results rather than predict future performance.

Comparing
Performance

Yields on tax-free investments are usually lower than yields on taxable investments. However, a straight comparison between the two may be misleading because it ignores the way taxes reduce taxable returns. Tax-equivalent yield - the yield you'd have to earn on a similar taxable investment to match the tax-free yield - makes the comparison more meaningful. Keep in mind that the U.S. government neither insures nor guarantees a money market fund. In fact, there is no assurance that a money fund will maintain a $1 share price.

3

Semiannual Report

Spartan Pennsylvania Municipal Money Market Fund

Fund Talk: The Manager's Overview

(Portfolio Manager photograph)
Note to shareholders: Kim Miller became Portfolio Manager of Spartan Pennsylvania Municipal Money Market Fund on May 1, 2001.

Q. Kim, what was the investment environment like during the first six months of 2001?

A. The market was dominated by the Federal Reserve Board's rate-cutting policy. As 2000 came to a close, signs emerged that the U.S. economy was weakening. There was a drop-off in industrial production, and corporate spending declined amid an environment of a struggling stock market and rising energy prices. In spite of higher fuel costs, however, there were no signs that inflationary pressures were building. In an attempt to prevent the U.S. economy from falling into recession, the Fed cut the rate banks charge each other for overnight loans - known as the fed funds target rate - six times. The first cut of 0.50 percentage points came as a surprise to the market, as the Fed implemented it just a few days into the new year, well in advance of its scheduled meeting at the end of January. Amid continued concerns about stagnant economic growth, the Fed reduced the fed funds target rate by one-half percentage point four more times. Three of these cuts came at the Fed's regularly scheduled meetings in January, March and May. The Fed surprised the market again with a 0.50 percentage-point cut between meetings in April, and followed that move with a 0.25 percentage point decrease in June. When all was said and done, the Fed had reduced the fed funds target rate from 6.50% at the beginning of 2001 to 3.75% at the end of June 2001.

Q. Were there any other developments of note within the municipal money market?

A. Yes, there were. Municipal money market funds typically experience cash inflows and outflows at certain times of the year. For example, investors typically take assets out of money market funds in December and April in order to meet tax payments, and January usually brings with it a significant influx of new assets to money market funds. That didn't happen during this period. This time around, withdrawals in December and April were lower than anticipated, and inflows in January were higher than normal. It appears there were two factors driving this development. First, municipal money market yields remained attractive when compared to alternatives in the taxable market. In addition, investors were attracted to less-volatile investments such as money market funds due to the continuing struggles suffered by the equity markets.

Q. What strategy did the fund pursue?

A. As is typically the case in a declining interest-rate environment, our strategy focused on lengthening the average maturity of the fund by investing in longer-term maturities. This approach enables the fund to lock in higher rates as interest rates declined. However, two factors made it somewhat difficult for us to extend the average maturity. The significant amount of new capital coming into the fund, by nature, shortened the average maturity. Furthermore, the limited supply of new securities that came to market in Pennsylvania was sold quickly. We made it a point to be aggressive at securing new deals when they became available.

Semiannual Report

Spartan Pennsylvania Municipal Money Market Fund

Fund Talk: The Manager's Overview - continued

Q. How did the fund perform?

A. The fund's seven-day yield on June 30, 2001, was 2.69%, compared to 4.29% six months ago. The latest yield was the equivalent of a 4.32% taxable yield for Pennsylvania investors in the 37.79% combined federal and state income tax bracket. The fund's yields reflect that a portion of the fund's income was subject to state taxes. Through June 30, 2001, the fund's six-month total return was 1.53%, compared to 1.38% for the Pennsylvania tax-free money market funds average, according to iMoneyNet, Inc.

Q. What's your outlook?

A. We are approaching the time when the Fed should finish its program of easing rates to stimulate the economy. There are differing opinions as to when that will happen. Many economists and media commentators believe the Fed is very close to being done; others feel we will witness more rate cuts at the next two or three meetings. Within this environment, I'm looking to take advantage of opportunities along all parts of the yield curve, while maintaining a bias toward keeping the average maturity on the long side. Another aspect that bodes well for the municipal money market is that municipal money market securities remain relatively cheap on an after-tax basis.

The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Fund Facts

Goal: to seek high current income exempt from federal and Pennsylvania state income tax as is consistent with the preservation of capital

Fund number: 401

Trading symbol: FPTXX

Start date: August 6, 1986

Size: as of June 30, 2001, more than $220 million

Manager: Kim Miller, since May 2001; manager, various Fidelity and Spartan municipal money market funds; joined Fidelity in 1990

3

Semiannual Report

Spartan Pennsylvania Municipal Money Market Fund

Investment Changes

Maturity Diversification

Days

% of fund's
investments
6/30/01

% of fund's
investments
12/31/00

% of fund's
investments
6/30/00

0 - 30

78.9

80.0

78.5

31 - 90

0.9

1.2

4.4

91 - 180

8.4

14.0

1.7

181 - 397

11.8

4.8

15.4

Weighted Average Maturity

6/30/01

12/31/00

6/30/00

Spartan Pennsylvania Municipal
Money Market Fund

51 Days

43 Days

59 Days

Pennsylvania Tax-Free Money Market
Funds Average *

43 Days

39 Days

34 Days

Asset Allocation (% of fund's net assets)

As of June 30, 2001

As of December 31, 2000

Variable Rate
Demand Notes
(VRDNs) 79.3%

Variable Rate
Demand Notes
(VRDNs) 78.3%

Commercial Paper (including
CP Mode) 1.8%

Commercial Paper (including
CP Mode) 0.9%

Tender Bonds 6.4%

Tender Bonds 8.5%

Municipal Notes 4.8%

Municipal Notes 9.3%

Other Investments 9.1%

Other Investments 3.8%

Net Other
Assets** (1.4)%

Net Other
Assets** (0.8)%



** Net Other Assets are not included in the pie chart.

*Source: iMoneyNet, Inc.

Semiannual Report

Spartan Pennsylvania Municipal Money Market Fund

Investments June 30, 2001

(Unaudited)

Showing Percentage of Net Assets

Municipal Securities - 101.4%

Principal
Amount

Value
(Note 1)

Pennsylvania - 101.4%

Allegheny County Arpt. Rev. Participating VRDN Series PA 567, 2.82% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(e)

$ 2,000,000

$ 2,000,000

Allegheny County Hosp. Dev. Auth.:

Bonds (South Hills Health Sys. Proj.) Series 1998 B, 3.25%, tender 4/1/02, LOC PNC Bank NA (b)

2,000,000

2,000,000

Participating VRDN Series PA 748, 2.82% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(e)

2,095,000

2,095,000

Allegheny County Hosp. Dev. Auth. Rev. (St. Margaret Mem. Hosp. Proj.) Series 1992 A, 2.76%, LOC Mellon Bank NA, Pittsburgh, VRDN (b)

3,840,000

3,840,000

Allegheny County Indl. Dev. Auth. Rev.:

(Doren, Inc. Proj.) Series 1997 C, 2.95%, LOC Nat'l. City Bank, PA, VRDN (b)(c)

2,300,000

2,300,000

(North Versailles Shopping Ctr. Proj.) Series 1992, 2.8%, LOC Bank One NA, VRDN (b)

2,500,000

2,500,000

(R.I. Lampus Co. Proj.) Series 1997 A, 2.95%,
LOC Nat'l. City Bank, PA, VRDN (b)(c)

2,560,000

2,560,000

(Union Elec. Steel Co. Proj.) Series 1996 A, 2.9%,
LOC PNC Bank NA, VRDN (b)(c)

3,120,000

3,120,000

Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Participating VRDN Series EGL 95 3503, 2.78% (Liquidity Facility Citibank NA, New York) (b)(e)

3,500,000

3,500,000

Berks County Indl. Dev. Auth. Indl. Dev. Rev. Bonds (Citizens Communications Co. Proj.) Series 1996, 4.95% tender 7/12/01, CP mode (c)

2,000,000

2,000,000

Berks County Indl. Dev. Auth. Rev.:

(Brentwood Industries, Inc. Proj.) Series 2000, 2.8%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

2,100,000

2,100,000

(Construction Fasteners Proj.) Series 1996 B, 2.9%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

655,000

655,000

(Giorgi Mushroom Co. Proj.):

Series 2000 A, 2.85%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

1,000,000

1,000,000

Series C, 2.75%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

2,000,000

2,000,000

(Grafika Commercial Printing, Inc. Proj.) Series 1995, 2.8%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

1,155,000

1,155,000

(KTB Real Estate Partnership Proj.) 2.85%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

2,100,000

2,100,000

(RAM Industries, Inc. Proj.) Series 1996, 2.8%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

2,865,000

2,865,000

(The Bachman Co. Proj.) Series 1994, 2.85%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

2,015,000

2,015,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Pennsylvania - continued

Boyertown Area School District TRAN 3.3% 6/28/02 (a)

$ 1,800,000

$ 1,807,776

Bucks County Indl. Dev. Auth. Rev.:

(Associates Proj.) Series 1993, 2.85%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

870,000

870,000

(Double H Plastics, Inc. Proj.) Series 1993, 2.85%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

850,000

850,000

Butler County Indl. Dev. Auth. Rev. (Armco, Inc. Proj.)
Series 1996 A, 2.9%, LOC Fifth Third Bank, Cincinnati, VRDN (b)(c)

1,500,000

1,500,000

Central Bucks School District Series 2000 A, 2.76%
(FGIC Insured), VRDN (b)

4,810,000

4,810,000

Cheltenham Township Gen. Oblig. TRAN 4.24% 12/31/01

2,300,000

2,300,441

Cumberland County Indl. Dev. Auth. Rev. (Lane Enterprises, Inc. Proj.) Series 1994, 2.8%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

1,500,000

1,500,000

Dallastown Area School District York County Series 2000, 2.76% (FGIC Insured), VRDN (b)

2,500,000

2,500,000

Delaware County Indl. Dev. Auth. Arpt. Facilities Rev.
(United Parcel Svc. Proj.) Series 1985, 3.25%, VRDN (b)

5,375,000

5,375,000

Delaware County Indl. Dev. Auth. Poll. Cont. Rev.:

Bonds (Philadelphia Elec. Co. Proj.) Series 1988 A, 3.2% tender 9/10/01 (FGIC Insured) (Liquidity Facility FGIC-SPI), CP mode

2,000,000

2,000,000

(BP Oil, Inc. Proj.) Series 1985, 3.3% (British Petroleum Co. PLC Guaranteed), VRDN (b)

2,500,000

2,500,000

Emmaus Gen. Auth. Rev. (Pennsylvania Ln. Prog.) Series 2000 A, 2.76% (FSA Insured), VRDN (b)

2,000,000

2,000,000

Erie City School District Participating VRDN Series AAB 01 A5, 2.77% (Liquidity Facility ABN-AMRO Bank NV) (b)(e)

4,000,000

4,000,000

Erie County Gen. Oblig. TRAN 4.6% 12/14/01

2,100,000

2,100,917

Erie County Indl. Dev. Auth. Rev. (Carlisle Corp. Proj.) Series 1993, 2.8%, LOC Suntrust Bank, VRDN (b)(c)

1,000,000

1,000,000

Erie County Prison Auth. Lease Rev. Bonds:

6.45% 11/1/01 (MBIA Insured) (Escrowed to Maturity) (d)

2,000,000

2,021,714

6.625% 11/1/14 (MBIA Insured) (Pre-Refunded to 11/1/01 @ 100) (d)

2,500,000

2,528,573

Erie High Ed. Bldg. Auth. Univ. Rev. Bonds (Gannon Univ. Proj.) Series 1998 F, 3.35%, tender 1/15/02, LOC PNC Bank NA (b)

3,000,000

3,000,000

Geisinger Auth. Health Sys. Rev. (Geisinger Health Sys. Proj.) Series 2000, 3.25% (Liquidity Facility Morgan Guaranty Trust Co., NY), VRDN (b)

6,575,000

6,575,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Pennsylvania - continued

Huntingdon County Gen. Auth. College Rev. Bonds
(Juniata College Proj.) Series 2001 A, 4%, tender 5/1/02, LOC PNC Bank NA (b)

$ 2,000,000

$ 2,016,276

Lancaster Higher Ed. Auth. College Rev. (Franklin & Marshall College Proj.) 2.78% (BPA Chase Manhattan Bank), VRDN (b)

2,925,000

2,925,000

Lawrence County Indl. Dev. Auth. Indl. Dev. Rev. (Atlantic States Materials Proj.) Series 1999, 2.85%, LOC Wachovia Bank NA, VRDN (b)(c)

2,200,000

2,200,000

Lebanon Co. Health Facilities Auth. Rev. (ECC Retirement Village Proj.) Series 2000, 2.76%, LOC Northern Trust Co., Chicago, VRDN (b)

3,000,000

3,000,000

Lehigh County Indl. Dev. Auth. Poll. Cont. Rev. (Allegheny Elec. Coop., Inc. Proj.):

Series 1984 A, 2.8%, LOC RaboBank Nederland Coop. Central, VRDN (b)

500,000

500,000

Series 1984 B, 2.8%, LOC RaboBank Nederland Coop. Central, VRDN (b)

800,000

800,000

Mercer County Gen. Oblig. Participating VRDN Series AAB 01 18, 2.77% (Liquidity Facility ABN-AMRO Bank NV) (b)(e)

3,000,000

3,000,000

Montgomery County Indl. Dev. Auth. Rev.:

(H.P. Cadwallader, Inc. Proj.) Series 1995, 2.9%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

580,000

580,000

(RJI LP Proj.) Series 1992, 2.75%, LOC First Union Nat'l. Bank, North Carolina, VRDN (b)(c)

765,000

765,000

Neshaminy School District TRAN 3% 6/28/02 (a)

2,200,000

2,204,642

New Garden Gen. Auth. Muni. Rev. (Muni. Pooled Fing. Prog.) Series 1999, 2.7% (AMBAC Insured), VRDN (b)

3,500,000

3,500,000

North Pennsylvania Wtr. Auth. Wtr. Rev. Participating VRDN Series SGA 30, 2.73% (Liquidity Facility Societe Generale) (b)(e)

5,700,000

5,700,000

Northampton County Indl. Dev. Auth. Rev.:

(Bedford Park Proj.) Series 1996 A, 2.8%, LOC Harris Trust & Savings Bank, Chicago, VRDN (b)(c)

1,425,000

1,425,000

(Binney & Smith, Inc. Proj.) Series 1997 A, 2.8%, LOC Bank One NA, Chicago, VRDN (b)(c)

2,350,000

2,350,000

(Victoria Vogue Proj.) 2.9%, LOC PNC Bank NA, VRDN (b)(c)

1,410,000

1,410,000

Northampton Indl. Dev. Auth. Rev. (Ultra-Poly Corp., Portland Ind. Park Proj.) 2.9%, LOC PNC Bank NA, VRDN (b)(c)

1,900,000

1,900,000

Northeastern Pennsylvania Hosp. & Edl. Auth. Health Care Rev. (Wyoming Valley Health Care Proj.) Series 1994 A, 2.875% (AMBAC Insured), VRDN (b)

2,000,000

2,000,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Pennsylvania - continued

Northumberland County Indl. Dev. Auth. Rev.
(Foster Wheeler Mount Carmel, Inc. Proj.):

Series 1987 A, 2.9%, LOC UBS AG, VRDN (b)(c)

$ 1,815,000

$ 1,815,000

Series 1987 B, 2.9%, LOC UBS AG, VRDN (b)(c)

5,990,000

5,990,000

Norwin School District Participating VRDN Series AAB 01 12, 2.77% (Liquidity Facility ABN-AMRO Bank NV) (b)(e)

2,200,000

2,200,000

Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Merck & Co. Proj.) Series 2000, 2.73%, VRDN (b)(c)

5,000,000

5,000,000

Pennsylvania Econ. Dev. Fing. Auth. Indl. Dev. Rev.:

(Dodge-Regupol, Inc. Proj.) Series D4, 2.9%,
LOC PNC Bank NA, VRDN (b)(c)

900,000

900,000

(Esschem, Inc. Proj.) Series 1991 D10, 2.9%,
LOC PNC Bank NA, VRDN (b)(c)

1,525,000

1,525,000

(Pappafava Proj. ) Series 1989 D7, 2.9%,
LOC PNC Bank NA, VRDN (b)(c)

100,000

100,000

(Port Erie Plastics Proj.) Series 1989 D9, 2.9%,
LOC PNC Bank NA, VRDN (b)(c)

150,000

150,000

(Respironics, Inc. Proj.) Series 1989 F, 2.9%,
LOC PNC Bank NA, VRDN (b)(c)

400,000

400,000

(Sun Star, Inc. Proj.) Series 1994 A5, 2.9%,
LOC PNC Bank NA, VRDN (b)(c)

400,000

400,000

Series 1996 A1, 2.9%, LOC PNC Bank NA, VRDN (b)(c)

425,000

425,000

Series 1996 A2, 2.9%, LOC PNC Bank NA, VRDN (b)(c)

1,300,000

1,300,000

Series 1996 A3, 2.9%, LOC PNC Bank NA, VRDN (b)(c)

600,000

600,000

Series 1996 A7, 2.9%, LOC PNC Bank NA, VRDN (b)(c)

575,000

575,000

Pennsylvania Econ. Dev. Fing. Auth. Rev.:

(ASK Foods, Inc. Proj.) Series A1, 2.9%, LOC PNC Bank NA, VRDN (b)(c)

185,000

185,000

(Suntory Wtr. Group, Inc. Proj.) Series 1992 D, 2.85%,
LOC Wachovia Bank NA, VRDN (b)(c)

4,900,000

4,900,000

Pennsylvania Gen. Oblig. Participating VRDN Series FRRI 01 L7, 2.9% (Liquidity Facility Lehman Brothers, Inc.) (b)(e)

1,500,000

1,500,000

Pennsylvania Higher Ed. Assistance Agcy. Student Ln. Rev.:

Series 2000 A, 2.95% (AMBAC Insured), VRDN (b)(c)

2,000,000

2,000,000

2.8% (AMBAC Insured), VRDN (b)(c)

15,200,000

15,200,000

Pennsylvania Higher Edl. Facilities Auth. Rev.:

Bonds:

(Carlow College Proj.) Series 1997 B2, 4.4%, tender 11/1/01, LOC PNC Bank NA (b)

2,000,000

2,000,000

(Muhlenberg College Proj.) Series 1999 D5, 3.1%, tender 5/1/02, LOC PNC Bank NA (b)

2,000,000

2,000,000

(Waynesburg College Proj.) Series 1997, 3.2%, tender 4/1/02, LOC PNC Bank NA (b)

3,200,000

3,200,000

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Pennsylvania - continued

Pennsylvania Higher Edl. Facilities Auth. Rev.: - continued

(Carnegie-Mellon Univ. Proj.) Series C, 3.25%
(BPA Morgan Guaranty Trust Co., NY), VRDN (b)

$ 2,900,000

$ 2,900,000

Pennsylvania Hsg. Fin. Agcy. Bonds Series I, 4.5% 12/1/01 (c)

1,900,000

1,900,000

Pennsylvania Tpk. Commission Tpk. Rev. Bonds Series J, 7.2% 12/1/17 (FGIC Insured) (Pre-Refunded to 12/1/01 @ 102) (d)

6,000,000

6,218,841

Philadelphia Auth. for Indl. Dev. Revs. (30th Street Station Proj.) 3.05% (MBIA Insured), VRDN (b)(c)

2,100,000

2,100,000

Philadelphia Hosps. & Higher Ed. Facilities Auth. Hosp. Rev.:

Bonds (Childrens Hosp. of Philadelphia Proj.) Series A, 6.5% 2/15/21 (Pre-Refunded to 2/15/02 @ 102) (d)

1,000,000

1,039,664

(Childrens Hosp. of Philadelphia Proj.) Series A, 3.3%
(BPA Morgan Guaranty Trust Co., NY), VRDN (b)

6,240,000

6,240,000

Philadelphia Wtr. & Wastewtr. Rev. Participating VRDN
Series CDC 97 Q, 2.76% (Liquidity Facility Caisse des Depots et Consignations) (b)(e)

1,980,000

1,980,000

Red Lion Area School District TRAN Series 2001, 3.3% 6/28/02 (a)

2,300,000

2,311,063

Schuylkill County Indl. Dev. Auth. Resource Recovery Rev. (Northeastern Pwr. Co. Proj.):

Series 1997 A, 3.25%, LOC Dexia Cr. Local de France, VRDN (b)

3,000,000

3,000,000

Series 1997 B, 3.35%, LOC Dexia Cr. Local de France, VRDN (b)(c)

1,400,000

1,400,000

Schuylkill County Indl. Dev. Auth. Rev. (Metal Sales Manufacturing Corp.) Series 1995, 2.93%, LOC Firstar Bank NA, VRDN (b)(c)

600,000

600,000

Somerset County Gen. Auth. Commonwealth Lease Rev. Bonds 6.6% 10/15/02 (FGIC Insured) (Pre-Refunded to 10/15/01 @ 100) (d)

2,000,000

2,013,791

South Fork Muni. Auth. Hosp. Rev. (Conemaugh Health Ctr. Proj.) Series A, 3.3% (MBIA Insured), LOC Cr. Suisse First Boston Bank, VRDN (b)

5,285,000

5,285,000

Temple Univ. Commonwealth Higher Ed. Bonds 4% 5/8/02

2,200,000

2,217,819

Municipal Securities - continued

Principal
Amount

Value
(Note 1)

Pennsylvania - continued

Univ. of Pittsburgh Commonwealth Sys. of Higher Ed.:

Bonds (Pennsylvania Panthers Proj.) Series 2001 A, 4% 4/4/02

$ 2,200,000

$ 2,212,888

(Pennsylvania Panthers Proj.) 2.9%, VRDN (b)

4,400,000

4,400,000

TOTAL INVESTMENT PORTFOLIO - 101.4%

223,504,405

NET OTHER ASSETS - (1.4)%

(3,023,635)

NET ASSETS - 100%

$ 220,480,770

Total Cost for Income Tax Purposes $ 223,504,405

Security Type Abbreviations

CP - COMMERCIAL PAPER

TRAN - TAX AND REVENUE
ANTICIPATION NOTE

VRDN - VARIABLE RATE DEMAND NOTE

Legend

(a) Security purchased on a delayed delivery or when-issued basis.

(b) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(d) Security collateralized by an amount sufficient to pay interest and principal.

(e) Provides evidence of ownership in one or more underlying municipal bonds.

Income Tax Information

At December 31, 2000, the fund had a capital loss carryforward of approximately $35,000 of which $8,000 and $27,000 will expire on December 31, 2003 and 2004, respectively.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Pennsylvania Municipal Money Market Fund

Financial Statements

Statement of Assets and Liabilities

June 30, 2001 (Unaudited)

Assets

Investment in securities, at value -
See accompanying schedule

$ 223,504,405

Cash

2,236,345

Receivable for fund shares sold

325,593

Interest receivable

1,029,534

Other receivables

11,466

Total assets

227,107,343

Liabilities

Payable for investments purchased on a
delayed delivery basis

$ 6,323,481

Payable for fund shares redeemed

199,181

Distributions payable

10,370

Accrued management fee

91,024

Other payables and accrued expenses

2,517

Total liabilities

6,626,573

Net Assets

$ 220,480,770

Net Assets consist of:

Paid in capital

$ 220,515,299

Accumulated net realized gain (loss) on investments

(34,529)

Net Assets, for 220,513,152 shares outstanding

$ 220,480,770

Net Asset Value, offering price and redemption price per share ($220,480,770 ÷ 220,513,152 shares)

$1.00

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Pennsylvania Municipal Money Market Fund
Financial Statements - continued

Statement of Operations

Six months ended June 30, 2001 (Unaudited)

Investment Income

Interest

$ 3,788,313

Expenses

Management fee

$ 538,746

Non-interested trustees' compensation

466

Total expenses before reductions

539,212

Expense reductions

(26,568)

512,644

Net investment income

3,275,669

Net Realized Gain (Loss) on Investments

19

Net increase in net assets resulting from operations

$ 3,275,688

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Spartan Pennsylvania Municipal Money Market Fund
Financial Statements - continued

Statement of Changes in Net Assets

Six months ended
June 30, 2001
(Unaudited)

Year ended
December 31,
2000

Increase (Decrease) in Net Assets

Operations
Net investment income

$ 3,275,669

$ 7,634,525

Net realized gain (loss)

19

18,969

Net increase (decrease) in net assets resulting
from operations

3,275,688

7,653,494

Distributions to shareholders from net investment income

(3,275,669)

(7,634,525)

Share transactions at net asset value of $1.00 per share
Proceeds from sales of shares

77,832,638

159,483,469

Reinvestment of distributions from net investment income

3,148,721

7,274,343

Cost of shares redeemed

(74,348,049)

(154,220,445)

Net increase (decrease) in net assets and shares resulting from share transactions

6,633,310

12,537,367

Total increase (decrease) in net assets

6,633,329

12,556,336

Net Assets

Beginning of period

213,847,441

201,291,105

End of period

$ 220,480,770

$ 213,847,441

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

Six months ended June 30, 2001

Years ended December 31,

(Unaudited)

2000

1999

1998

1997

1996

Selected Per-Share Data

Net asset value, beginning of period

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

Income from Investment Operations
Net investment
income

.015

.037

.029

.031

.033

.032

Less Distributions

From net investment income

(.015)

(.037)

(.029)

(.031)

(.033)

(.032)

Net asset value,
end of period

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

$ 1.000

Total Return B, C, D

1.53%

3.80%

2.91%

3.15%

3.36%

3.21%

Ratios and Supplemental Data

Net assets, end of period (000 omitted)

$ 220,481

$ 213,847

$ 201,291

$ 216,487

$ 229,469

$ 242,386

Ratio of expenses to average net assets

.50% A

.50%

.50%

.50%

.50%

.50%

Ratio of expenses to average net assets after all expense reductions

.48% A, E

.50%

.50%

.50%

.50%

.48% E

Ratio of net investment income to average net assets

3.06% A

3.74%

2.87%

3.10%

3.31%

3.17%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Total returns do not include the effect of the account closeout fee.

E FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2001 (Unaudited)

1. Significant Accounting Policies.

Spartan Pennsylvania Municipal Income Fund (the income fund) is a fund of Fidelity Municipal Trust. Spartan Pennsylvania Municipal Money Market Fund (the money market fund) is a fund of Fidelity Municipal Trust II. Each trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Fidelity Municipal Trust and Fidelity Municipal Trust II (the trusts) are organized as a Massachusetts business trust and a Delaware business trust, respectively. Each fund is authorized to issue an unlimited number of shares. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which require management to make certain estimates and assumptions at the date of the financial statements. Each fund may be affected by economic and political developments in the state of Pennsylvania. The following summarizes the significant accounting policies of the income fund and the money market fund:

Security Valuation.

Each fund calculates its net asset value per share as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. In addition, investments in open-end investment companies are valued at their net asset value each business day. The following summarizes the security valuation policies of the funds.

Income Fund. Securities are valued based upon a computerized matrix system and/or appraisals by a pricing service, both of which consider market transactions and dealer-supplied valuations. Securities (including restricted securities) for which quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost or original cost plus accrued interest, both of which approximate current value.

Money Market Fund. As permitted under Rule 2a-7 of the 1940 Act, and certain conditions therein, securities are valued initially at cost and thereafter assume a constant amortization to maturity of any discount or premium.

Income Taxes. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, each fund is not subject to income taxes to the extent that it distributes all of its taxable income for the fiscal year. The schedules of investments include information, if any, regarding income taxes under the caption "Income Tax Information."

Investment Income. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned.

Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Distributions to Shareholders. Dividends are declared daily and paid monthly from net investment income. Distributions to shareholders from realized capital gains on investments, if any, are recorded on the ex-dividend date.

Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences, which may result in distribution reclassifications, are primarily due to differing treatments for futures transactions, market discount, capital loss carryforwards and losses deferred due to futures transactions and excise tax regulations.

Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Undistributed net investment income and accumulated undistributed net realized gain (loss) on investments may include temporary book and tax basis differences which will reverse in a subsequent period. Any taxable income or gain remaining at fiscal year end is distributed in the following year.

Short-Term Trading (Redemption) Fees. Shares held in the income fund less than 30 days are subject to a short-term trading fee equal to .50% of the proceeds of the redeemed shares. The fee, which is retained by the fund, is accounted for as an addition to paid in capital.

Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost.

Change in Accounting Principle. Effective January 1, 2001, the income fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The cumulative effect of this accounting change had no impact on total net assets of the income fund, but resulted in a $68,079 increase to the cost of securities held and a corresponding increase to accumulated net undistributed realized gain (loss), based on securities held by the fund on January 1, 2001.

The effect of this change during the period, was to increase net investment income by $28,457; decrease net unrealized appreciation/depreciation by $26,520; and decrease net realized gain (loss) by $1,937. The Statement of Changes in net assets and financial highlights for the prior periods have not been restated to reflect this change in presentation.

2. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. Each fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is "marked to market" daily and equivalent deliverable securities are held for the transaction. The values of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable fund's Schedule of Investments. Each fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. Certain funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included under the captions "Legend" and/or "Other Information" at the end of each applicable fund's Schedule of Investments.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.

4. Fees and Other Transactions with Affiliates.

Management Fee.

Income Fund. As the income fund's investment adviser, Fidelity Management & Research Company (FMR) receives a monthly fee that is calculated on the basis of a group fee rate plus a fixed individual fund fee rate applied to the average net assets of the fund. The group fee rate is the weighted average of a series of rates and is based on the monthly average net assets of all the mutual funds advised by FMR. The rates ranged from .0920% to .3700% for the period. The annual individual fund fee rate is .25%. In the event that these rates were lower than the contractual rates in effect during the period, FMR voluntarily implemented the above rates, as they resulted in the same or a lower management fee. For the period, the management fee was equivalent to an annualized rate of .38% of average net assets.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

Money Market Fund. As the money market fund's investment adviser, FMR receives a fee that is computed daily at an annual rate of .50% of the fund's average net assets. FMR pays all other expenses, except the compensation of the non-interested Trustees and certain exceptions such as interest, taxes, brokerage commissions and extraordinary expenses. The management fee paid to FMR by the fund is reduced by an amount equal to the fees and expenses paid by the fund to the non-interested Trustee.

FMR also bears the cost of providing shareholder services to the money market fund. To offset the cost of providing these services, FMR or its affiliates collected certain transaction fees from shareholders which amounted to $1,409 for the period.

Sub-Adviser Fee. As each fund's investment sub-adviser, Fidelity Investments Money Management, Inc.(FIMM), an affiliate of FMR, receives a fee from FMR of 50% of the management fee payable to FMR. The fee is paid prior to any voluntary expense reimbursements which may be in effect.

Transfer Agent and Accounting Fees. Citibank, N.A.(Citibank) is the custodian, transfer agent and shareholder servicing agent for the income fund. Citibank has entered into a sub-contract with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the fund's transfer and shareholder servicing agent and accounting functions. The fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.

For the period, the transfer agent fees were equivalent to an annualized rate of .08% of average net assets.

Fidelity Municipal Cash Central Fund. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the funds may invest in the Fidelity Municipal Cash Central Fund (the Cash Fund) managed by FIMM. The Cash Fund is an open-end money market fund available only to investment companies and other accounts managed by FMR and its affiliates. The Cash Fund seeks preservation of capital, liquidity, and current income by investing in high-quality, short-term municipal securities of various states and municipalities. The Cash Fund does not pay a management fee. Income distributions from the Cash Fund are declared daily and paid monthly from net investment income. Income distributions earned by the funds are recorded as interest income in the accompanying financial statements.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Fees and Other Transactions with Affiliates - continued

Money Market Insurance. Pursuant to an Exemptive Order issued by the SEC, the money market fund, along with other money market funds advised by FMR or its affiliates, has entered into insurance agreements with FIDFUNDS Mutual Limited (FIDFUNDS), an affiliated mutual insurance company. FIDFUNDS provides limited coverage for certain loss events including issuer default as to payment of principal or interest and bankruptcy or insolvency of a credit enhancement provider. The insurance does not cover losses resulting from changes in interest rates, ratings downgrades or other market conditions. The fund may be subject to a special assessment of up to approximately 2.5 times the fund's annual gross premium if covered losses exceed certain levels. FMR has borne the cost of the money market fund's premium payable to FIDFUNDS.

5. Expense Reductions.

Through arrangements with the income fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody, transfer agent and accounting expenses by $2,479, $86,179 and $19,537, respectively.

In addition, through an arrangement with the money market fund's custodian and transfer agent, $26,568 of credits realized as a result of uninvested cash balances were used to reduce the fund's expenses.

Semiannual Report

Proxy Voting Results

A special meeting of the fund's shareholders was held on April 18, 2001. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.

PROPOSAL 1

To continue the effectiveness of Article VII, Section 7.04 of the Trust Instrument.*

# of
Votes Cast

% of
Votes Cast

Affirmative

588,735,972.83

88.966

Against

21,107,857.68

3.190

Abstain

51,905,965.49

7.844

TOTAL

661,749,796.00

100.000

Broker
Non-Votes

3,928,544.00

PROPOSAL 2

To authorize the Trustees to adopt an amended and restated Trust Instrument.*

# of
Votes Cast

% of
Votes Cast

Affirmative

569,063,418.55

85.993

Against

38,954,429.61

5.887

Abstain

53,731,947.84

8.120

TOTAL

661,749,796.00

100.000

Broker
Non-Votes

3,928,544.00

PROPOSAL 3

To elect the fourteen nominees specified below as Trustees.*

# of
Votes Cast

% of
Votes Cast

J. Michael Cook

Affirmative

590,566,097.42

88.716

Withheld

75,112,242.58

11.284

TOTAL

665,678,340.00

100.000

Ralph F. Cox

Affirmative

590,884,350.73

88.764

Withheld

74,793,989.27

11.236

TOTAL

665,678,340.00

100.000

# of
Votes Cast

% of
Votes Cast

Phyllis Burke Davis

Affirmative

590,088,213.15

88.645

Withheld

75,590,126.85

11.355

TOTAL

665,678,340.00

100.000

Robert M. Gates

Affirmative

590,595,725.60

88.721

Withheld

75,082,614.40

11.279

TOTAL

665,678,340.00

100.000

Abigail P. Johnson

Affirmative

587,416,641.22

88.243

Withheld

78,261,698.78

11.757

TOTAL

665,678,340.00

100.000

Edward C. Johnson 3d

Affirmative

589,796,637.97

88.601

Withheld

75,881,702.03

11.399

TOTAL

665,678,340.00

100.000

Donald J. Kirk

Affirmative

590,875,468.88

88.763

Withheld

74,802,871.12

11.237

TOTAL

665,678,340.00

100.000

Marie L. Knowles

Affirmative

590,543,328.44

88.713

Withheld

75,135,011.56

11.287

TOTAL

665,678,340.00

100.000

Ned C. Lautenbach

Affirmative

590,728,794.94

88.741

Withheld

74,949,545.06

11.259

TOTAL

665,678,340.00

100.000

Peter S. Lynch

Affirmative

591,037,063.37

88.787

Withheld

74,641,276.63

11.213

TOTAL

665,678,340.00

100.000

# of
Votes Cast

% of
Votes Cast

Marvin L. Mann

Affirmative

590,676,424.63

88.733

Withheld

75,001,915.37

11.267

TOTAL

665,678,340.00

100.000

William O. McCoy

Affirmative

590,708,035.68

88.738

Withheld

74,970,304.32

11.262

TOTAL

665,678,340.00

100.000

Robert C. Pozen

Affirmative

590,554,497.90

88.715

Withheld

75,123,842.10

11.285

TOTAL

665,678,340.00

100.000

William S. Stavropoulos

Affirmative

589,991,243.07

88.630

Withheld

75,687,096.93

11.370

TOTAL

665,678,340.00

100.000

PROPOSAL 5

To approve an amended management contract for Spartan Pennsylvania Municipal Money Market Fund.

# of
Votes Cast

% of
Votes Cast

Affirmative

102,216,727.54

81.580

Against

14,445,509.61

11.529

Abstain

8,634,014.52

6.891

TOTAL

125,296,251.67

100.000

PROPOSAL 8

To eliminate Spartan Pennsylvania Municipal Money Market Fund's fundamental 80% investment policy and adopt a comparable non-fundamental policy.

# of
Votes Cast

% of
Votes Cast

Affirmative

100,452,041.02

82.767

Against

14,353,706.98

11.826

Abstain

6,561,959.67

5.407

TOTAL

121,367,707.67

100.000

Broker
Non-Votes

3,928,544.00

PROPOSAL 10

To amend Spartan Pennsylvania Municipal Money Market Fund's fundamental investment limitation concerning underwriting.

# of
Votes Cast

% of
Votes Cast

Affirmative

99,474,591.56

81.961

Against

15,846,393.58

13.057

Abstain

6,046,722.53

4.982

TOTAL

121,367,707.67

100.000

Broker
Non-Votes

3,928,544.00

PROPOSAL 11

To amend Spartan Pennsylvania Municipal Money Market Fund's fundamental investment limitation concerning lending.

# of
Votes Cast

% of
Votes Cast

Affirmative

102,042,091.62

84.077

Against

12,472,699.34

10.277

Abstain

6,852,916.71

5.646

TOTAL

121,367,707.67

100.000

Broker
Non-Votes

3,928,544.00

*Denotes trust-wide proposals and voting results.

Semiannual 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

If you are not currently on the Internet, call EarthLink Sprint at 1-800-288-2967, and be sure to ask for registration number SMD004 to receive a special Fidelity package that includes 30 days of free Internet access. EarthLink is North America's #1 independent Internet access provider.

(computer_graphic)

Fidelity On-line Xpress+®

Fidelity On-line Xpress+ software for Windows combines comprehensive portfolio management capabilities, securities trading and access to research and analysis tools . . . all on your desktop. Call Fidelity at 1-800-544-0240 or visit our web site for more information on how to manage your investments via your PC.

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.

Semiannual Report

To Write Fidelity

If more than one address is listed, please locate the address that is closest to you. We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

(letter_graphic)

Making Changes
To Your Account

(such as changing name, address, bank, etc.)

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002

(letter_graphic)

For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048

Selling shares

Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602

Overnight Express
Fidelity Investments
Attn: Redemptions - CP6I

400 East Las Colinas Blvd.
Irving, TX 75039-5587

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)

For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602

Overnight Express
Fidelity Investments
Attn: Redemptions - CP5L

400 East Las Colinas Blvd.
Irving, TX 75039-5587

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

To Visit Fidelity

For directions and hours,
please call 1-800-544-9797.

Arizona

7373 N. Scottsdale Road
Scottsdale, AZ

California

815 East Birch Street
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Campbell, CA

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Ft. Lauderdale, FL

1907 West State Road 434
Longwood, FL

8880 Tamiami Trail, North
Naples, FL

2401 PGA Boulevard
Palm Beach Gardens, FL

8065 Beneva Road
Sarasota, FL

1502 N. Westshore Blvd.
Tampa, FL

Georgia

3445 Peachtree Road, N.E.
Atlanta, GA

1000 Abernathy Road
Atlanta, GA

Illinois

One North Franklin Street
Chicago, IL

1415 West 22nd Street
Oak Brook, IL

1700 East Golf Road
Schaumburg, IL

3232 Lake Avenue
Wilmette, IL

Indiana

4729 East 82nd Street
Indianapolis, IN

Maine

Three Canal Plaza
Portland, ME

Maryland

7401 Wisconsin Avenue
Bethesda, MD

One W. Pennsylvania Ave.
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

25 State Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

416 Belmont Street
Worcester, MA

Semiannual Report

Michigan

280 Old N. Woodward Ave.
Birmingham, MI

29155 Northwestern Hwy.
Southfield, MI

Minnesota

7600 France Avenue South
Edina, MN

Missouri

700 West 47th Street
Kansas City, MO

8885 Ladue Road
Ladue, MO

New Jersey

150 Essex Street
Millburn, NJ

56 South Street
Morristown, NJ

501 Route 17, South
Paramus, NJ

New York

1055 Franklin Avenue
Garden City, NY

999 Walt Whitman Road
Melville, L.I., NY

1271 Avenue of the Americas
New York, NY

71 Broadway
New York, NY

350 Park Avenue
New York, NY

North Carolina

4611 Sharon Road
Charlotte, NC

Ohio

600 Vine Street
Cincinnati, OH

28699 Chagrin Boulevard
Woodmere Village, OH

Oregon

16850 SW 72nd Avenue
Tigard, OR

Pennsylvania

1735 Market Street
Philadelphia, PA

439 Fifth Avenue
Pittsburgh, PA

Rhode Island

47 Providence Place
Providence, RI

Tennessee

6150 Poplar Avenue
Memphis, TN

Texas

10000 Research Boulevard
Austin, TX

4017 Northwest Parkway
Dallas, TX

1155 Dairy Ashford Street
Houston, TX

2701 Drexel Drive
Houston, TX

400 East Las Colinas Blvd.
Irving, TX

14100 San Pedro
San Antonio, TX

19740 IH 45 North
Spring, TX

Utah

215 South State Street
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

Washington

411 108th Avenue, N.E.
Bellevue, WA

511 Pine Street
Seattle, WA

Washington, DC

1900 K Street, N.W.
Washington, DC

Wisconsin

595 North Barker Road
Brookfield, WI

Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Sub-Adviser

Fidelity Investments Money
Management, Inc.

Officers

Edward C. Johnson 3d, President

Abigail P. Johnson, Senior Vice President

Dwight D. Churchill, Vice President

Boyce I. Greer, Vice President

David L. Murphy, Vice President

Christine J. Thompson, Vice President -
Income Fund

Eric D. Roiter, Secretary

Robert A. Dwight, Treasurer

Maria F. Dwyer, Deputy Treasurer

Stanley N. Griffith, Assistant Vice President

John H. Costello, Assistant Treasurer

Paul F. Maloney, Assistant Treasurer

Thomas J. Simpson, Assistant Treasurer

Board of Trustees

J. Michael Cook *

Ralph F. Cox *

Phyllis Burke Davis *

Robert M. Gates *

Abigail P. Johnson

Edward C. Johnson 3d

Donald J. Kirk *

Marie L. Knowles *

Ned C. Lautenbach *

Peter S. Lynch

Marvin L. Mann *

William O. McCoy *

William S. Stavropoulos *
(Fidelity Municipal Trust II only)

* Independent trustees

Advisory Board

Robert C. Pozen

William S. Stavropoulos
(Fidelity Municipal Trust only)

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Shareholder
Servicing Agents

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New York, NY

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Custodian

Citibank, N.A.

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

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Corporate Headquarters
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www.fidelity.com

Spartan®

Short-Intermediate
Municipal Income

Fund

Semiannual Report

June 30, 2001

(2_fidelity_logos)(Registered_Trademark)

Contents

President's Message

<Click Here>

Ned Johnson on investing strategies.

Performance

<Click Here>

How the fund has done over time.

Fund Talk

<Click Here>

The manager's review of fund performance, strategy and outlook.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

(Recycle graphic)   This report is printed on recycled paper using soy-based inks.

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.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Neither the funds nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Semiannual Report

President's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Amid a slowing economy highlighted by frequent corporate earnings disappointments, mounting unemployment and waning consumer confidence, equity investors abandoned expensive, large-cap growth stocks in favor of the current earnings delivered by small- and mid-cap value stocks during the first six months of 2001. Fixed-income investments also offered a measure of stability, as corporate, mortgage and agency securities generally outperformed many popular equity indexes through the mid-point of the year.

While it's impossible to predict the future direction of the markets with any degree of certainty, there are certain basic principles that can help investors plan for their future needs.

The longer your investment time frame, the less likely it is that you will be affected by short-term market volatility. A 10-year investment horizon appropriate for saving for a college education, for example, enables you to weather market cycles in a long-term fund, which may have a higher risk potential, but also has a higher potential rate of return.

An intermediate-length fund could make sense if your investment horizon is two to four years, while a short-term bond fund could be the right choice if you need your money in one or two years.

If your time horizon is less than a year, you might want to consider moving some of your bond investment into a money market fund. These funds seek income and a stable share price by investing in high-quality, short-term investments. Of course, it's important to remember that an investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these types of funds.

Finally, no matter what your time horizon or portfolio diversity, it makes good sense to follow a regular investment plan, investing a certain amount of money in a fund at the same time each month or quarter and periodically reviewing your overall portfolio. By doing so, you won't get caught up in the excitement of a rapidly rising market, nor will you buy all your shares at market highs. While this strategy - known as dollar cost averaging - won't assure a profit or protect you from a loss in a declining market, it should help you lower the average cost of your purchases. Of course, you should consider your financial ability to continue your purchases through periods of low price levels before undertaking such a strategy.

If you have questions, please call us at 1-800-544-6666, or visit our web site at www.fidelity.com. We are available 24 hours a day, seven days a week to provide you the information you need to make the investments that are right for you.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Performance: The Bottom Line

There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). You can also look at the fund's income, as reflected in the fund's yield, to measure performance. If Fidelity had not reimbursed certain fund expenses, the past one year, past five year and past 10 year total returns and dividends would have been lower.

Cumulative Total Returns

Periods ended June 30, 2001

Past 6
months

Past 1
year

Past 5
years

Past 10
years

Spartan Short-Intermediate Municipal Income

3.35%

7.35%

26.67%

65.32%

LB 1-6 Year Municipal Bond

3.73%

7.78%

29.43%

n/a*

Short-Intermediate Municipal Debt
Funds Average

3.03%

7.05%

24.40%

67.87%

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Lehman Brothers 1-6 Year Municipal Bond Index - a market value-weighted index of investment-grade municipal bonds with maturities between one and six years. To measure how the fund's performance stacked up against its peers, you can compare it to the short-intermediate municipal debt funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 39 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.

Average Annual Total Returns

Periods ended June 30, 2001

Past 1
year

Past 5
years

Past 10
years

Spartan Short-Intermediate Municipal Income

7.35%

4.84%

5.16%

LB 1-6 Year Municipal Bond

7.78%

5.30%

n/a*

Short-Intermediate Municipal Debt
Funds Average

7.05%

4.46%

5.31%

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year. (Note: Lipper calculates average annual total returns by annualizing each fund's total return, then taking an arithmetic average. This may produce a different figure than that obtained by averaging the cumulative total returns and annualizing the result.)

* Not available

Semiannual Report

Performance - continued

$10,000 Over 10 Years



$10,000 Over 10 Years: Let's say hypothetically that $10,000 was invested in Spartan Short-Intermediate Municipal Income Fund on June 30, 1991. As the chart shows, by June 30, 2001, the value of the investment would have grown to $16,532 - a 65.32% increase on the initial investment. For comparison, look at how the Lehman Brothers Municipal Bond Index - a market value-weighted index of investment-grade municipal bonds with maturities of one year or more - did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $19,967 - a 99.67% increase.

Understanding
Performance

How a fund did yesterday is no guarantee of how it will do tomorrow. Bond prices, for example, generally move in the opposite direction of interest rates. In turn, the share price, return and yield of a fund that invests in bonds will vary. That means if you sell your shares during a market downturn, you might lose money. But if you can ride out the market's ups and downs, you may have a gain.

3

Semiannual Report

Performance - continued

Total Return Components

Six months ended June 30,

Years ended December 31,

2001

2000

1999

1998

1997

1996

Dividend returns

2.07%

4.28%

3.85%

4.19%

4.35%

4.28%

Capital returns

1.28%

1.92%

-2.24%

0.50%

1.10%

-0.40%

Total returns

3.35%

6.20%

1.61%

4.69%

5.45%

3.88%

Total return components include both dividend returns and capital returns. A dividend return reflects the actual dividends paid by the fund. A capital return reflects both the amount paid by the fund to shareholders as capital gain distributions and changes in the fund's share price. Both returns assume the dividends or capital gains, if any, paid by the fund are reinvested.

Dividends and Yield

Periods ended June 30, 2001

Past 1
month

Past 6
months

Past 1
year

Dividends per share

3.39¢

20.70¢

41.66¢

Annualized dividend rate

4.02%

4.08%

4.12%

30-day annualized yield

3.24%

-

-

30-day annualized tax-equivalent yield

5.06%

-

-

Dividends per share show the income paid by the fund for a set period. If you annualize this number, based on an average share price of $10.26 over the past one month, $10.22 over the past six months and $10.12 over the past one year, you can compare the fund's income over these three periods. The 30-day annualized yield is a standard formula for all bond funds based on the yields of the bonds in the fund, averaged over the past 30 days. This figure shows you the yield characteristics of the fund's investments at the end of the period. It also helps you compare funds from different companies on an equal basis. The tax-equivalent yield shows what you would have to earn on a taxable investment to equal the fund's tax-free yield, if you're in the 36% federal tax bracket, but does not reflect payment of the federal alternative minimum tax, if applicable.

Semiannual Report

Fund Talk: The Manager's Overview

Market Recap

In an effort to kick-start the sputtering U.S. economy, the Federal Reserve Board reduced key short-term interest rates six times during the first half of 2001, lowering the fed funds target rate from 6.50% to 3.75%. While the full effect of these cuts likely won't be felt for several months, they had an immediate impact on the performance of tax-free municipal bonds, particularly those of short and intermediate maturity, which typically benefit in a declining interest-rate environment. The muni market also received a boost given the steady demand from institutional, retail and high-net-worth investors, as well as an encouraging credit upgrade environment. For the overall six-month period ending June 30, 2001, the Lehman Brothers Municipal Bond Index - an index of approximately 40,000 investment-grade, fixed-rate, tax-exempt bonds, gained 2.88%. As is often the case in financial markets, some of the good news was offset by several factors. In April, for instance, the $25 billion downgrade of California's general obligation bonds - the largest muni downgrade on record - tempered performance. Additionally, as interest rates continued to trend downward, so did the prices of long-term munis. Also, President Bush's newly enacted tax program raised moderate concerns about higher muni supply and lower muni demand going forward.

(Portfolio Manager photograph)
An interview with Christine Thompson, Portfolio Manager of Spartan Short-Intermediate Municipal Income Fund

Q. How did the fund perform, Christine?

A. For the six-month period that ended June 30, 2001, the fund had a total return of 3.35%. To get a sense of how the fund did relative to its competitors, the short-intermediate municipal debt funds average returned 3.03% for the same six-month period, according to Lipper Inc. Additionally, the Lehman Brothers 1-6 Year Municipal Bond Index, which tracks the types of securities in which the fund invests, returned 3.73%. For the 12-month period that ended June 30, 2001, the fund had a total return of 7.35%. In comparison, the short-intermediate municipal debt funds average returned 7.05% and the Lehman Brothers index returned 7.78% for the same 12-month period.

Q. What drove the fund's performance and helped it outpace it peers during the past six months?

A. Falling interest rates, of course, were the main factor driving the municipal bond market's and the fund's performance during the period. Short- and intermediate-maturity municipal bonds performed quite well, as the Federal Reserve Board cut short-term rates six times in as many months. In response, short- and intermediate-maturity municipal bond yields generally fell and their prices typically rose. Long-maturity bonds, on the other hand, tended to stall due to growing concerns about creeping inflation, both now and in the future. Part of the reason why the fund outpaced its peers was its focus on very short-term bonds - such as those maturing in about a year - which posted strong gains during the period thanks to very high demand.

Semiannual Report

Fund Talk: The Manager's Overview - continued

Q. What other factors aided performance?

A. One of last year's disappointments turned out to be one of this year's best decisions and boosted the fund's performance. The fund's significant underweighting of California munis detracted from performance last year. Gains in personal income and the technology stock slump prompted strong demand for tax-free California bonds, helping them to outperform most other states throughout the second half of 2000. But given their expensive prices compared to other states, I generally avoided California bonds. This year, a litany of woes - including a weakening economy, the state's ongoing power crisis and the credit rating downgrade of California state-issued general obligation bonds - caused California municipals to lag the nation as a whole. Further clouding the outlook for the California municipal market was the threat of about $10 billion in power revenue bonds scheduled to be issued later this year to help replenish the state's coffers and pay for future power needs.

Q. Which states did you emphasize?

A. Generally speaking, I emphasized bonds from states that offered attractive relative valuations and underweighted bonds from states with high levels of state income taxes and/or strong wealth levels. Just as it did in California, strong wealth levels and high state taxes spurred demand for tax-free investments in states such as New York and Florida, and their prices tended to be quite expensive as a result. So I focused on finding bargains in states such as Texas, where credit quality was high and demand was firm, but where muni prices were more reasonable.

Q. Given the nation's economic slowdown, did you make any other changes to the fund's investments during the past six months?

A. Not really, since I already had positioned the fund anticipating economic weakness in 2001. I maintained the fund's relatively high credit quality, with more than 89% of its investments in bonds rated A or higher by Moody's Investors Service or Standard & Poor's® at the end of the period. My emphasis on these investment-grade bonds reflected that, for the most part, I didn't feel lower-quality bonds offered enough incentive in the form of additional yield for their increased risk, especially given the weakness of the economy. In terms of sectors, I had previously diversified away from economically sensitive sectors - such as general obligation bonds - into groups such as education, electric utilities and transportation.

Q. What's ahead for the municipal market?

A. The direction of interest rates and, ultimately, the performance of the bond markets largely will be determined by the strength of the economy. At the end of June, bond prices reflected expectations for further interest-rate cuts. Continued economic weakness could help sustain the drop in interest rates, while an economic rebound could spell higher rates in the fall. As for municipals in particular, their performance also will be dependent on whether investors view them as attractively valued relative to other fixed-income alternatives.

Semiannual Report

Fund Talk: The Manager's Overview - continued

The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Fund Facts

Goal: seeks as high a level of current income, exempt from federal income tax, as is consistent with preservation of capital

Fund number: 404

Trading symbol: FSTFX

Start date: December 24, 1986

Size: as of June 30, 2001, more than $1.0 billion

Manager: Christine Thompson, since 2000; manager, various Fidelity and Spartan municipal income funds; joined Fidelity in 1985

3

Christine Thompson on trends in credit quality:

"Municipal issuers generally enjoyed strong revenue growth during the past year as tax receipts and user fees exceeded budget forecasts. Infrastructure spending on transportation projects and school facility improvements accelerated, but generally were met with strong taxpayer support that eased the challenges associated with financing such projects. That said, revenue growth is slowing in response to weaker economic conditions across the country.

"Within the municipal market, there were some widely divergent trends. After two years of general decline, many health care issuers have begun to stabilize. In light of this development, the fund has taken a selective approach, concentrating hospital bond investments in those facilities identified as the dominant service providers in their market with the ability to translate their competitive strength into higher prices.

"On the other hand, corporate-backed municipal bond issues lagged as slowing economic growth gave rise to heightened concerns about leveraged corporate balance sheets. Corporate-backed municipal issues are concentrated in some cyclical industry groups - such as the paper, automobile and airline industries - and those that are subject to aggressive restructuring - such as the electric utility industry."

Semiannual Report

Investment Changes

Top Five States as of June 30, 2001

% of fund's
net assets

% of fund's net assets
6 months ago

Texas

18.5

15.8

Georgia

9.0

9.1

Washington

7.9

5.6

New Jersey

5.4

7.5

Arizona

5.3

4.1

Top Five Sectors as of June 30, 2001

% of fund's net assets

% of fund's net assets
6 months ago

General Obligations

45.6

38.0

Electric Utilities

17.4

17.6

Escrowed/Pre-Refunded

11.2

17.2

Transportation

9.7

8.8

Special Tax

6.8

5.5

Average Years to Maturity as of June 30, 2001

6 months ago

Years

3.2

3.4

Average years to maturity is based on the average time remaining until principal payments are expected from each of the fund's bonds, weighted by dollar amount.

Duration as of June 30, 2001

6 months ago

Years

2.9

2.7

Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example.

Quality Diversification (Moody's Ratings)

As of June 30, 2001

As of December 31, 2000

Aaa 58.9%

Aaa 64.0%

Aa, A 30.5%

Aa, A 25.5%

Baa 5.0%

Baa 6.9%

Not Rated 1.4%

Not Rated 0.6%

Short-term
Investments 4.2%

Short-term
Investments 3.0%



Where Moody's ratings are not available, we have used S&P ® ratings. Amounts shown are as a percentage of the fund's investments.

Semiannual Report

Investments June 30, 2001

(Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 102.0%

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Alabama - 0.2%

Alabama Agric. & Mechanical Univ. Revs. 6.5% 11/1/25 (MBIA Insured) (Pre-Refunded to 11/1/05 @ 102) (e)

Aaa

$ 2,000

$ 2,264

Alaska - 2.2%

Alaska Student Ln. Corp. Student Ln. Rev.
Series A:

5.1% 7/1/04 (AMBAC Insured) (d)

Aaa

2,700

2,770

5.55% 7/1/03 (AMBAC Insured) (d)

Aaa

1,000

1,030

Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 (FGIC Insured)

Aaa

2,500

2,746

North Slope Borough Gen. Oblig.:

Series 1996 B, 0% 6/30/07 (MBIA Insured)

Aaa

2,400

1,853

Series A, 0% 6/30/03 (MBIA Insured)

Aaa

9,000

8,399

Series B:

0% 6/30/05 (FSA Insured)

Aaa

3,000

2,560

0% 6/30/08 (MBIA Insured)

Aaa

1,240

904

0% 6/30/06 (MBIA Insured)

Aaa

3,500

2,846

23,108

Arizona - 3.7%

Arizona Trans. Board Excise Tax Rev. (Maricopa County Reg'l. Area Road Fund Prog.):

Series 1993 A, 5.6% 7/1/03
(AMBAC Insured)

Aaa

1,790

1,875

Series B, 6% 7/1/03 (AMBAC Insured)

Aaa

5,000

5,277

5.25% 7/1/05 (AMBAC Insured)

Aaa

10,000

10,600

Maricopa County Cmnty. College District (1994 Proj.) Series 2001 D, 4% 7/1/03

Aaa

3,000

3,048

Maricopa County School District #28 Kyrene Elementary Series B, 0% 7/1/04
(FGIC Insured)

Aaa

3,000

2,692

Maricopa County School District #6 Washington Elementary (1996 Proj.) Series C, 5% 7/1/04 (FGIC Insured)

Aaa

3,150

3,288

Mesa Street & Hwy. Rev. 6.5% 7/1/11
(FSA Insured)

Aaa

1,000

1,170

Mesa Util. Sys. Rev. 6.5% 7/1/11 (FGIC Insured)

Aaa

5,250

6,141

Pima County Cmnty. College District Rev. Series 2001, 5% 7/1/04 (AMBAC Insured)

Aaa

1,300

1,357

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Arizona - continued

Salt River Proj. Agric. Impt. & Pwr. District Elec. Sys. Rev. Series D, 5.7% 1/1/04

Aa2

$ 1,000

$ 1,053

Scottsdale Muni. Property Corp. Excise Tax Rev. 5.5% 7/1/05 (b)

Aa1

2,285

2,354

38,855

Arkansas - 0.9%

Arkansas Student Ln. Auth. Rev. Sr. Series A1:

6.05% 6/1/02 (d)

Aa

4,700

4,817

6.05% 12/1/02 (d)

Aa

4,455

4,594

9,411

California - 3.7%

California Gen. Oblig.:

5.5% 6/1/03

Aa3

20,000

20,809

6% 10/1/09

Aa2

2,100

2,326

Long Beach Hbr. Rev. Series 2000 A:

5.5% 5/15/05 (d)

Aa3

3,490

3,723

5.5% 5/15/06 (d)

Aa3

3,000

3,223

Los Angeles Dept. Wtr. & Pwr. Elec. Plant Rev. Second Issue:

9% 10/15/01

Aa3

1,840

1,872

9% 10/15/01 (Escrowed to Maturity) (e)

Aa3

160

163

Los Angeles Hbr. Dept. Rev. Series A:

5.5% 8/1/04 (AMBAC Insured) (b)(d)

Aaa

2,000

2,053

5.5% 8/1/06 (AMBAC Insured) (b)(d)

Aaa

1,495

1,552

San Francisco City & County Arpts. Commission Int'l. Arpt. Rev. Second Series 27A, 5% 5/1/05 (MBIA Insured) (d)

Aaa

3,680

3,865

39,586

Colorado - 2.6%

Arapahoe County School District #5 Cherry Creek Series B, 6% 12/15/04

Aa1

2,395

2,591

Arapahoe County Cap. Impt. Trust Fund Hwy. Rev.:

Series C, 0% 8/31/08 (Pre-Refunded to 8/31/05 @ 82.9449) (e)

Aaa

4,500

3,187

Series E 470, 0% 8/31/07 (Pre-Refunded to 8/31/05 @ 89.2392) (e)

Aaa

2,000

1,524

Colorado Pub. Hwy. Auth. E-470 Series B, 0% 9/1/07 (MBIA Insured)

Aaa

3,200

2,454

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Colorado - continued

Denver City & County Arpt. Rev.:

Series 2001 B, 5.25% 11/15/04 (FGIC Insured) (b)(d)

Aaa

$ 1,200

$ 1,257

Series A, 0% 11/15/03 (MBIA Insured) (d)

Aaa

3,370

3,094

Series C:

5.1% 11/15/01 (d)

A2

2,320

2,338

6.55% 11/15/02 (d)

A2

1,420

1,482

Jefferson County School District #R 001:

5.5% 12/15/06 (MBIA Insured)

Aaa

2,000

2,164

6.5% 12/15/10 (MBIA Insured)

Aaa

2,575

3,008

Kentucky Asset/Liability Commission Gen. Fund Rev. First Series 2001, 5% 2/1/04

Aa3

4,000

4,148

27,247

Delaware - 0.6%

Delaware Trans. Auth. Trans. Sys. Rev. 6% 7/1/05 (AMBAC Insured)

Aaa

6,160

6,700

District Of Columbia - 1.9%

District of Columbia Gen. Oblig.:

Series 1993 A3, 5.2% 6/1/03 (MBIA Insured)

Aaa

6,450

6,672

Series 1993 B2, 5.5% 6/1/07 (FSA Insured)

Aaa

3,500

3,745

District of Columbia Rev. (Medstar Univ. Hosp. Proj.) Series D, 6.875%, tender 2/15/07 (c)

Baa2

9,000

9,421

19,838

Florida - 3.2%

Dade County Spl. Oblig. Series B, 0% 10/1/21 (AMBAC Insured) (Pre-Refunded to 10/1/08 @ 45.5634) (e)

Aaa

10,000

3,337

Florida Division of Bond Fin. Dept. Gen. Svcs. Revs. (Dept. of Envir. Preservation Proj.) Series 2000 A, 6% 7/1/03 (AMBAC Insured)

Aaa

5,000

5,269

Florida Ports Fing. Commission Rev. (State Trans. Trust Fund Proj.) 6% 6/1/05 (MBIA Insured) (d)

Aaa

4,575

4,927

Florida Tpk. Auth. Tpk. Rev. Series A, 6.5% 7/1/07 (FSA Insured)

Aaa

5,515

6,245

Jacksonville Elec. Auth. Rev. (Third Installment Proj.) 5.2% 7/1/01 (Escrowed to Maturity) (e)

Aaa

435

435

Lee County Indl. Dev. Auth. Health Care Facilities Rev. (Shell Point Village Proj.) Series A:

5.25% 11/15/04

BBB-

500

499

5.25% 11/15/05

BBB-

685

680

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Florida - continued

Lee County Indl. Dev. Auth. Health Care Facilities Rev. (Shell Point Village Proj.) Series A: - continued

5.25% 11/15/06

BBB-

$ 1,145

$ 1,129

Okeechobee Wtr. & Swr. Rev. Series A, 6.25% 1/1/11 (MBIA Insured) (Pre-Refunded to 1/1/03 @ 102) (e)

Aaa

2,265

2,397

Tampa Florida Guaranteed Entitlement Rev.:

6% 10/1/02 (AMBAC Insured) (b)

Aaa

1,725

1,788

6% 10/1/03 (AMBAC Insured) (b)

Aaa

1,600

1,693

6% 10/1/04 (AMBAC Insured) (b)

Aaa

2,000

2,147

Tampa Gen. Oblig. (Catholic Health East Proj.) Series A3, 5.5% 11/15/02 (MBIA Insured)

Aaa

1,000

1,033

Tampa Wtr. & Swr. Rev. 5% 10/1/03 (FSA Insured) (b)

Aaa

2,460

2,507

34,086

Georgia - 9.0%

Atlanta Wtr. & Swr. Rev. 4.75% 1/1/23 (FGIC Insured) (Pre-Refunded to 1/1/04 @ 102) (e)

Aaa

4,475

4,701

Chatham County School District 6.75% 8/1/19 (MBIA Insured) (Pre-Refunded to 8/1/03 @ 102) (e)

Aaa

4,000

4,364

Cherokee County Gen. Oblig. 5% 8/1/02

Aa2

7,045

7,220

Dalton Bldg. Auth. Rev. Series 2001:

5% 7/1/03

Aa3

5,225

5,405

5% 7/1/05

Aa3

6,030

6,327

Dougherty County Gen. Oblig.:

5.25% 10/1/03 (FSA Insured)

Aaa

1,860

1,940

5.25% 10/1/04 (FSA Insured)

Aaa

2,000

2,111

Fayette County School District 5% 3/1/04

Aa3

1,350

1,399

Georgia Gen. Oblig.:

Series 1997 C, 6.25% 8/1/04

Aaa

5,000

5,414

Series 2000 A, 5.8% 3/1/03

Aaa

1,330

1,386

Series 2000 B, 4.75% 7/1/03

Aaa

1,595

1,644

Series A, 5.8% 3/1/05

Aaa

3,780

4,062

Series B:

6.1% 3/1/05

Aaa

4,540

4,925

6.25% 4/1/03

Aaa

7,500

7,890

6.3% 3/1/09

Aaa

2,250

2,550

Series C:

6% 7/1/04

Aaa

5,000

5,365

6.5% 7/1/07

Aaa

3,470

3,929

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Georgia - continued

Georgia Gen. Oblig.: - continued

Series C:

7.25% 7/1/06

Aaa

$ 2,000

$ 2,306

Series D:

5.8% 11/1/05

Aaa

2,000

2,174

5.8% 11/1/07

Aaa

4,105

4,516

6.7% 8/1/08

Aaa

3,500

4,049

Series E:

5.5% 7/1/03

Aaa

1,750

1,829

6% 7/1/04

Aaa

4,720

5,065

Series F, 6.5% 12/1/03

Aaa

4,460

4,802

95,373

Hawaii - 2.4%

Hawaii Arpts. Sys. Rev. Series 2001, 5.5% 7/1/05 (FGIC Insured) (d)

Aaa

3,000

3,183

Hawaii Gen. Oblig.:

Series 1997 CP, 5% 10/1/04 (FGIC Insured)

Aaa

5,000

5,228

Series CN, 6.25% 3/1/03 (FGIC Insured)

Aaa

4,365

4,573

Series CU, 5.75% 10/1/11 (MBIA Insured)

Aaa

2,210

2,432

5.25% 4/1/03 (MBIA Insured)

Aaa

4,730

4,887

Honolulu City & County Gen. Oblig. Series B:

5.5% 11/1/04 (FGIC Insured)

Aaa

465

494

5.5% 11/1/04 (FGIC Insured) (Escrowed to Maturity) (e)

Aaa

4,160

4,429

25,226

Illinois - 2.7%

Chicago Midway Arpt. Rev. Series A:

6.25% 1/1/14 (MBIA Insured) (Pre-Refunded to 1/1/04 @ 102) (d)(e)

Aaa

2,230

2,412

6.25% 1/1/24 (MBIA Insured) (Pre-Refunded to 1/1/04 @ 102) (d)(e)

Aaa

6,810

7,366

Chicago Tax Increment Rev. Series 2000 A, 0% 12/1/08 (AMBAC Insured)

Aaa

10,000

7,169

Cook County High School District #218 Dwight D. Eisenhower 0% 12/1/03 (FSA Insured)

Aaa

1,150

1,056

Illinois Gen. Oblig.:

First Series:

5% 5/1/04

Aa2

1,000

1,039

5.5% 6/1/04

Aa2

1,000

1,054

5.25% 12/1/02 (MBIA Insured)

Aaa

1,000

1,031

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Illinois - continued

Kendall, Kane & Will Counties Cmnty. Unit School District #308:

5% 10/1/03 (FGIC Insured)

AAA

$ 645

$ 670

5% 10/1/04 (FGIC Insured)

AAA

510

533

5.25% 10/1/05 (FGIC Insured)

AAA

560

593

5.25% 10/1/06 (FGIC Insured)

AAA

695

739

Rosemont Gen. Oblig. (Tax Increment #3 Proj.) 0% 12/1/07 (FGIC Insured)

Aaa

3,000

2,271

Will County School District #122 Series B, 0% 11/1/08 (FSA Insured)

Aaa

1,500

1,079

Winnebago & Boone Cntys. Cmnty. High School District #207 6.25% 12/30/10 (AMBAC Insured) (Pre-Refunded to 12/30/03 @ 100) (e)

Aaa

1,200

1,285

28,297

Indiana - 1.0%

Indiana Univ. Revs. (Student Fee Proj.):

Series 2001 N, 5% 8/1/03

Aa2

5,460

5,641

Series H, 0% 8/1/05 (AMBAC Insured)

Aaa

5,500

4,680

10,321

Iowa - 0.5%

Iowa Student Ln. Liquidity Corp. Student Ln. Rev. Series B, 6.65% 3/1/03 (d)

Aa1

4,900

5,070

Kentucky - 1.7%

Kentucky Asset/Liability Commission Gen. Fund Rev. First Series 2001, 5% 2/1/03

Aa3

2,000

2,055

Kentucky Property & Bldgs. Commission Revs.:

(#68 Proj.):

5.25% 10/1/02

Aa3

2,520

2,591

5.25% 10/1/03

Aa3

2,305

2,407

(#69 Proj.):

Series 2001 B, 5% 8/1/04 (FSA Insured) (b)

Aaa

1,860

1,939

Series 2001 C:

5% 8/1/02 (FSA Insured) (b)

Aaa

365

374

5% 8/1/03 (FSA Insured) (b)

Aaa

2,360

2,435

5.5% 9/1/07

Aa3

2,065

2,230

5.5% 9/1/08

Aa3

3,930

4,250

18,281

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Louisiana - 0.2%

Lafayette Parish School Board Sales Tax Rev. 6% 4/1/04 (FGIC Insured)

Aaa

$ 2,000

$ 2,132

Maine - 0.3%

Maine Edl. Ln. Marketing Corp. Student Ln. Rev. 6.9% 11/1/03 (d)

A

2,725

2,820

Maryland - 0.2%

Prince Georges County Ctfs. of Prtn.
(Equip. Acquisition Prog.) 4.5% 6/15/03 (MBIA Insured)

Aaa

1,905

1,952

Massachusetts - 1.3%

Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C:

5.75% 8/1/06

A2

1,200

1,266

5.875% 8/1/08

A2

1,630

1,733

Massachusetts Health & Edl. Facilities Auth. Rev. (Fairview Extended Care Proj.) Series B, 4.55% 1/1/21 (MBIA Insured)

Aaa

3,700

3,745

Massachusetts Indl. Fin. Agcy. Resource Recovery Rev. (Ogden Haverhill Proj.) Series 1992 A, 4.5% 12/1/01

BBB

3,000

3,001

New England Ed. Ln. Marketing Corp. Massachusetts (Student Ln. Prog.) Series A, 5.7% 7/1/05 (d)

Aa2

2,800

2,971

Plymouth Gen. Oblig. 5.5% 10/15/02
(MBIA Insured)

Aaa

1,565

1,617

14,333

Michigan - 0.4%

Detroit Convention Facilities Rev. (Cobo Hall Expansion Proj.) 4.8% 9/30/01

A

1,000

1,005

Michigan Hosp. Fin. Auth. Rev. (Genesys Reg'l. Med. Hosp. Proj.) Series A:

5.25% 10/1/02 (Escrowed to Maturity) (e)

Aaa

2,040

2,100

5.25% 10/1/03 (Escrowed to Maturity) (e)

Aaa

1,000

1,046

4,151

Minnesota - 1.9%

Minnesota Gen. Oblig.:

(Various Purp. Projs.) 4.75% 6/1/03

Aaa

7,000

7,208

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Minnesota - continued

Minnesota Gen. Oblig.: - continued

5.2% 8/1/07

Aaa

$ 9,000

$ 9,241

5.9% 8/1/05 (Pre-Refunded to 8/1/02 @ 100) (e)

Aaa

3,815

3,946

20,395

Mississippi - 0.1%

Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (d)

A2

1,190

1,231

Missouri - 0.8%

Kansas City Arpt. Rev. (Gen. Impt. Proj.) Series A, 5.25% 9/1/03 (FSA Insured) (d)

Aaa

4,085

4,245

Missouri Gen. Oblig. Series 1996 A, 6% 8/1/04

Aaa

1,655

1,780

Missouri Highways & Trans. Commisson State Road Rev. Series 2000 A, 5.25% 2/1/03

Aa2

1,950

2,013

8,038

Nebraska - 1.3%

Nebraska Pub. Pwr. District Rev.:

Series 1998 B, 5% 1/1/03

A1

2,310

2,372

Series B, 5.25% 1/1/13 (MBIA Insured) (Pre-Refunded to 1/1/03 @ 102) (e)

Aaa

2,500

2,624

5.4% 7/1/01

A1

3,085

3,085

5.8% 1/1/06 (Pre-Refunded to 1/1/03 @ 102) (e)

Aaa

3,500

3,702

6.125% 1/1/15 (MBIA Insured) (Pre-Refunded to 1/1/03 @ 102) (e)

Aaa

2,000

2,125

13,908

Nevada - 0.3%

Clark County Gen. Oblig. (Flood Cont. Proj.) 6% 11/1/01

Aa2

1,000

1,011

Clark County Passenger Facility Charge Rev.
(Las Vegas/McCarran Intl. Aprt. Proj.)
Series 2000 A, 6.25% 7/1/03
(MBIA Insured) (d)

Aaa

2,350

2,477

3,488

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

New Hampshire - 0.3%

New Hampshire Health & Edl. Facilities Auth. Rev. (Univ. Sys. of New Hampshire Proj.):

5.25% 7/1/04 (AMBAC Insured) (b)

Aaa

$ 1,710

$ 1,770

5.25% 7/1/05 (AMBAC Insured) (b)

Aaa

1,695

1,760

3,530

New Jersey - 5.4%

New Jersey Econ. Dev. Auth. Rev. (Trans. Proj.) Series A, 5.5% 5/1/07 (FSA Insured)

Aaa

15,835

17,114

New Jersey Gen. Oblig.:

Series E, 6% 7/15/03

Aa1

8,830

9,329

5% 3/1/03

Aa1

3,000

3,091

New Jersey Health Care Facilities Fing. Auth. Rev. (Atlantic City Med. Ctr. Proj.) Series C, 6.45% 7/1/02

A3

3,500

3,581

New Jersey Tpk. Auth. Tpk. Rev. Series 2000 A, 6% 1/1/11 (MBIA Insured)

Aaa

2,500

2,813

New Jersey Trans. Corp.:

Series 2000 C, 5.25% 2/1/04 (AMBAC Insured)

Aaa

10,000

10,434

Series A, 5% 2/1/03 (AMBAC Insured)

Aaa

3,100

3,138

Series C, 5.25% 2/1/03 (AMBAC Insured)

Aaa

5,225

5,391

South Jersey Trans. Auth. Trans. Sys. Rev.
Series B, 5.9% 11/1/06 (MBIA Insured)
(Pre-Refunded to 11/1/02 @ 102) (e)

Aaa

1,965

2,081

56,972

New Mexico - 0.3%

Albuquerque Arpt. Rev. 6.25% 7/1/01
(AMBAC Insured) (d)

Aaa

980

980

New Mexico Edl. Assistance Foundation Student Ln. Rev. Sr. Series IV A1, 6.5% 3/1/04 (d)

Aaa

1,875

1,958

2,938

New York - 3.8%

Metro. Trans. Auth. Commuter Facilities Rev.:

Series 1998 E, 5.5% 7/1/06
(AMBAC Insured)

Aaa

2,000

2,159

Series A:

5% 7/1/06

Baa1

1,520

1,597

5.125% 7/1/07

Baa1

3,015

3,185

5.25% 7/1/08

Baa1

3,640

3,874

5.375% 7/1/09

Baa1

3,635

3,895

5.5% 7/1/10

Baa1

4,220

4,525

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

New York - continued

Metro. Trans. Auth. Svc. Contract Rev. Series O, 5.375% 7/1/02

A3

$ 2,000

$ 2,053

New York City Gen. Oblig.:

Series A, 5.7% 8/1/02

A2

1,500

1,548

Series D:

6.6% 2/1/03

A2

975

1,024

6.6% 2/1/03 (Escrowed to Maturity) (e)

A3

25

26

Series E, 5.4% 2/15/03

A2

6,285

6,491

Series J, 6% 2/15/04

A2

1,750

1,856

New York State Thruway Auth. Svc. Contract Rev. (Local Hwy. & Bridge Proj.) 6% 4/1/03

A3

2,300

2,408

New York State Urban Dev. Corp. Rev. (Correctional Cap. Facilities Proj.) Series 1995 6, 6% 1/1/02

Baa1

2,165

2,199

Triborough Bridge & Tunnel Auth. Revs. Series B, 6% 1/1/03

Aa3

3,885

4,048

40,888

North Carolina - 3.5%

Mecklenburg County Gen. Oblig. Series 1998 B, 4.4% 2/1/03

Aaa

8,635

8,803

North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.:

Series 1993 B, 7% 1/1/08 (MBIA Insured)

Aaa

1,500

1,721

Series A, 7.875% 1/1/02

Baa3

9,255

9,458

Series B, 5.5% 1/1/02

Baa3

1,000

1,011

North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.:

5.75% 1/1/02

Baa1

1,000

1,012

6% 1/1/04 (AMBAC Insured)

Aaa

4,500

4,753

6% 1/1/05 (AMBAC Insured)

Aaa

9,750

10,284

37,042

Ohio - 4.3%

Cleveland Arpt. Sys. Rev. Series A, 5.5% 1/1/05 (FSA Insured) (d)

Aaa

1,000

1,053

Franklin County Gen. Oblig. (Courthouse Proj.) 6.375% 12/1/17 (Pre-Refunded to 12/1/01 @ 102) (e)

-

3,800

3,931

Ohio Bldg. Auth.:

(Adult Correctional Proj.):

Series 2001 A, 5% 10/1/03

Aa2

5,000

5,186

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Ohio - continued

Ohio Bldg. Auth.: - continued

Series A:

5.5% 4/1/02

Aa2

$ 1,390

$ 1,419

5.5% 4/1/03

Aa2

2,280

2,366

5.75% 4/1/08

Aa2

3,555

3,871

(Correctional Facilities Proj.) Series A, 6% 10/1/05

Aa2

5,600

6,091

Ohio Pub. Facilities Commission Rev. (Higher Ed. Cap. Facilities Proj.):

Series 1992 IIC, 5.5% 12/1/02

Aa2

4,850

5,021

Series 1998 IIB, 4.5% 6/1/03 (MBIA Insured)

Aaa

3,300

3,377

Series 1999 IIA, 4.5% 11/1/03

Aa2

6,610

6,795

Ohio Wtr. Dev. Auth. Poll. Cont. Facilites Rev. (Wtr. Cont. Ln. Fund Prog.):

5.25% 6/1/06 (MBIA Insured)

Aaa

1,810

1,922

5.5% 12/1/02

Aaa

3,860

3,996

Ohio Wtr. Dev. Auth. Rev. (Fresh Wtr. Svc. Proj.) Series A, 5.4% 6/1/05 (AMBAC Insured)

Aaa

1,000

1,061

46,089

Oklahoma - 1.4%

Oklahoma Dev. Fin. Auth. Rev. (Samuel Roberts Noble, Inc. Proj.) Series 2001:

5% 5/1/03

Aaa

5,105

5,274

5% 5/1/04

Aaa

2,015

2,107

5% 5/1/05

Aaa

7,615

8,031

15,412

Oregon - 0.6%

Deschutes & Jefferson Counties School District #2J Redmond:

5.5% 6/1/05 (FGIC Insured)

Aaa

1,000

1,066

5.5% 6/1/06 (FGIC Insured)

Aaa

2,610

2,805

Oregon Gen. Oblig. 8.25% 1/1/07

Aa2

1,000

1,198

Tri-County Metro. Trans. District Rev. Series A, 5.75% 8/1/11

Aa3

1,395

1,532

6,601

Pennsylvania - 3.8%

Allegheny County San. Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured)

Aaa

1,495

1,691

Hazleton Area School District 6.5% 3/1/06
(FSA Insured)

AAA

1,155

1,281

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Pennsylvania - continued

Pennsylvania Higher Edl. Facilities Auth. Rev. (UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09

A+

$ 1,750

$ 1,830

Pennsylvania Intergovernmental Coop. Auth. Rev. (City of Philadelphia Fdg. Prog.) 5.5% 6/15/09 (FGIC Insured) (Pre-Refunded to 6/15/03 @ 100) (e)

Aaa

4,425

4,620

Pennsylvania State Univ.:

5% 3/1/04 (b)

Aa2

4,605

4,740

5% 3/1/05 (b)

Aa2

6,935

7,168

5% 3/1/06 (b)

Aa2

7,280

7,539

Philadelphia Gas Works Rev. First Series A, 5.25% 7/1/05 (FSA Insured)

Aaa

5,000

5,274

Philadelphia Wtr. & Wastewtr. Rev.:

5.15% 6/15/04 (FGIC Insured)

Aaa

2,450

2,531

6.75% 8/1/05 (MBIA Insured)

Aaa

3,360

3,742

40,416

Puerto Rico - 2.0%

Puerto Rico Commonwealth Gen. Oblig. 5% 7/1/05 (FGIC Insured) (b)

Aaa

20,890

21,739

South Carolina - 1.3%

Berkeley County School District 7% 4/1/07

Aa1

2,615

3,006

South Carolina Ed. Assistance Auth. Rev.
(Insured Student Ln. Prog.) 6.3% 9/1/01 (d)

-

1,400

1,407

South Carolina Gen. Oblig.:

Series 2001 B, 5.5% 4/1/08

Aaa

1,035

1,121

Series A, 5.5% 10/1/03

Aaa

3,470

3,646

South Carolina Jobs Econ. Dev. Auth. Hosp. Facilities Rev. (Palmetto Health Alliance Proj.) Series A:

6.125% 12/15/02

Baa2

1,670

1,697

6.3% 12/15/03

Baa2

2,940

3,005

13,882

Tennessee - 1.7%

Shelby County Gen. Oblig. Series A:

0% 5/1/10 (Pre-Refunded to 5/1/05 @ 74.444) (e)

AA+

15,750

10,112

0% 5/1/12 (Pre-Refunded to 5/1/05 @ 65.1568) (e)

AA+

15,130

8,502

18,614

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Texas - 18.5%

Austin Arpt. Sys. Rev. Series A:

6.5% 11/15/05 (MBIA Insured) (d)

Aaa

$ 6,870

$ 7,571

6.5% 11/15/05 (MBIA Insured) (Escrowed to Maturity) (d)(e)

Aaa

940

1,043

Austin Gen. Oblig.:

5% 9/1/03 (b)

Aa2

20,990

21,744

5.25% 9/1/04 (b)

Aa2

6,000

6,300

Austin Util. Sys. Rev.:

Series 1992 A, 0% 11/15/09 (MBIA Insured)

Aaa

4,130

2,812

Series A, 5.5% 11/15/06

A2

5,000

5,232

Brazos River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.):

Series A, 4.8%, tender 4/1/03 (c)(d)

A3

9,000

9,118

5.05%, tender 6/19/06 (c)(d)

Baa1

2,500

2,505

Brazos River Auth. Rev. (Reliant Energy, Inc. Proj.) Series B, 5.2%, tender 12/1/02 (c)

Baa1

5,000

5,055

Corpus Christi Independent School District 0% 8/15/01

Aaa

1,600

1,595

Cypress-Fairbanks Independent School District Series B, 0% 8/1/07 (AMBAC Insured)

Aaa

10,000

7,706

Dallas County Gen. Oblig. 7% 8/15/01

Aaa

1,750

1,758

Dallas Gen. Oblig. 5% 2/15/03

Aaa

5,345

5,495

Garland Independent School District:

0% 2/15/06

Aaa

2,000

1,652

0% 2/15/07

Aaa

1,610

1,261

Harris County Gen. Oblig.:

(Toll Road Proj.):

Series A, 0% 8/15/02 (MBIA Insured)

Aaa

3,000

2,897

0% 8/1/01

Aa1

3,490

3,482

Series A, 0% 8/15/07 (FGIC Insured)

Aaa

4,400

3,385

Houston Arpt. Sys. Rev. Series 1998 A, 5.5% 7/1/03 (FGIC Insured) (d)

Aaa

2,620

2,725

Houston Gen. Oblig. 5% 3/1/03

Aa3

4,765

4,896

Houston Independent School District 5% 7/15/02

Aa3

2,750

2,815

Houston Wtr. & Swr. Sys. Rev.:

Series 1991 C, 0% 12/1/03 (AMBAC Insured)

Aaa

12,000

11,039

Series A, 6.375% 12/1/22 (MBIA Insured) (Pre-Refunded to 12/1/02 @ 102) (e)

Aaa

3,300

3,522

Irving Independent School District 0% 2/15/03

Aaa

3,100

2,933

Klein Independent School District 5.25%
8/1/06

Aaa

2,000

2,123

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Texas - continued

New Braunfels Independent School District 0% 2/1/07

Aaa

$ 2,000

$ 1,575

North East Texas Independent School District:

7% 2/1/02

Aaa

1,250

1,280

7% 2/1/03

Aaa

1,500

1,585

7% 2/1/04

Aaa

2,250

2,440

7% 2/1/05

Aaa

2,500

2,770

7% 2/1/11

Aaa

2,600

3,051

North Texas Health Facilities Dev. Corp. Hosp. Rev. (United Reg'l. Health Care Sys., Inc. Proj.) 4.5% 9/1/02 (MBIA Insured)

Aaa

2,050

2,083

Pflugerville Independent School District 5% 8/15/12 (Pre-Refunded to 8/15/02 @ 100) (e)

Aaa

3,550

3,633

Port Houston Auth. Harris County 6% 10/1/06 (FGIC Insured) (d)

Aaa

2,000

2,183

San Antonio Elec. & Gas Rev.:

Series 1991 A, 0% 2/1/05 (FGIC Insured) (Escrowed to Maturity) (e)

Aaa

1,000

872

Series B, 0% 2/1/08 (FGIC Insured)
(Escrowed to Maturity) (e)

Aaa

3,830

2,877

San Antonio Wtr. Sys. Rev.:

6.2% 5/15/03 (FGIC Insured)

Aaa

4,490

4,695

6.2% 5/15/03 (FGIC Insured) (Pre-Refunded to 5/15/02 @ 102) (e)

Aaa

175

185

Texas Gen. Oblig.:

(Texas Pub. Fin. Auth. Proj.) Series 1994 A, 6.25% 10/1/06 (Pre-Refunded to 10/1/04 @ 100) (e)

Aa1

16,210

17,604

(Texas Pub. Fing. Auth. Proj.) Series 1996 B:

5.25% 10/1/02

Aa1

5,000

5,139

6% 10/1/03

Aa1

4,000

4,235

Series 1992 A, 5.6% 10/1/02

Aa1

2,000

2,064

Texas Muni. Pwr. Agcy. Rev. 5.25% 9/1/06 (MBIA Insured)

Aaa

10,000

10,607

Texas Pub. Fin. Auth. Bldg. Rev. 0% 2/1/05 (MBIA Insured)

Aaa

3,725

3,235

Univ. of Texas Univ. Revs. (Fing. Sys. Proj.):

Series 1996 B, 5.25% 8/15/04

Aaa

2,695

2,830

Series A, 6% 8/15/04

Aaa

1,500

1,608

197,215

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Utah - 2.7%

Intermountain Pwr. Agcy. Pwr. Supply Rev.:

Series B, 0% 7/1/01 (AMBAC Insured)

Aaa

$ 12,495

$ 12,495

Series C, 6% 7/1/01 (MBIA Insured)

Aaa

2,000

2,000

Jordan County School District 5.75% 6/15/07

AAA

4,670

5,093

Utah Gen. Oblig. Series 2001 B, 4.5% 7/1/05

Aaa

8,500

8,753

28,341

Virginia - 0.7%

Richmond Metro. Auth. Expressway Rev.
Series A, 6.375% 7/15/16 (FGIC Insured) (Pre-Refunded to 7/15/02 @ 102) (e)

Aaa

5,400

5,709

Virginia Pub. School Auth. Series A, 6% 8/1/02

Aa1

2,000

2,070

7,779

Washington - 7.9%

Cowlitz County Pub. Util. District #1:

5% 9/1/03 (AMBAC Insured)

AAA

3,395

3,514

5% 9/1/04 (AMBAC Insured)

AAA

4,615

4,812

Pierce County School District #10 Tacoma 5% 12/1/02 (FSA Insured)

Aaa

11,295

11,610

Port of Seattle Rev. Series B:

5.5% 2/1/06 (MBIA Insured) (d)

Aaa

4,250

4,492

5.5% 2/1/07 (MBIA Insured) (d)

Aaa

5,775

6,119

Seattle Muni. Lt. & Pwr. Rev.:

4.5% 3/28/03

-

10,000

10,154

5.25% 3/1/04 (FSA Insured)

Aaa

1,100

1,147

5.25% 3/1/07 (FSA Insured)

Aaa

1,690

1,783

Snohomish County School District #2 Everett:

4% 6/1/02

Aa1

1,110

1,122

4% 12/1/02

Aa1

2,160

2,193

4.5% 12/1/03

Aa1

1,450

1,494

Washington Gen. Oblig.:

(Motor Vehicle Fuel Tax Proj.) Series B, 7% 9/1/05

Aa1

3,120

3,501

(Various Purp. Projs.) Series A, 5.5% 7/1/11

Aa1

3,500

3,744

Series R 93C, 5.125% 9/1/04

Aa1

1,200

1,257

Series R 96 B, 5.5% 7/1/03

Aa1

1,000

1,043

Washington Pub. Pwr. Supply Sys. Nuclear Proj. #1 Rev. Series A, 6.5% 7/1/02

Aa1

3,000

3,060

Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev.:

(Bonneville Pwr. Administration Proj.) Series A, 6% 7/1/08 (AMBAC Insured)

Aaa

3,000

3,305

Municipal Bonds - continued

Moody's Ratings
(unaudited) (a)

Principal
Amount (000s)

Value (Note 1)
(000s)

Washington - continued

Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev.: - continued

Series A:

5.75% 7/1/08

Aa1

$ 3,000

$ 3,258

6.5% 7/1/02

Aa1

2,220

2,270

Series B, 5.5% 7/1/03

Aa1

2,000

2,084

Washington Pub. Pwr. Supply Sys. Nuclear Proj. #3 Rev.:

Series B, 0% 7/1/03

Aa1

7,065

6,577

Series C, 5% 7/1/06 (FSA Insured)

Aaa

5,000

5,225

83,764

Wisconsin - 0.7%

Wisconsin Gen. Oblig. Series 5, 4.65% 11/1/04

Aa2

4,255

4,319

Wisconsin Health & Edl. Facilities Auth. Rev. (Saint Lukes Med. Ctr. Proj.) 7.1% 8/15/11 (MBIA Insured) (Pre-Refunded to 8/15/01
@ 102) (e)

Aaa

3,000

3,074

7,393

TOTAL MUNICIPAL BONDS

(Cost $1,061,755)

1,084,726

Municipal Notes - 4.5%

Arizona - 1.6%

Coconino County Indl. Dev. Rev. (Citizens Utils. Co. Proj.) Series 1997, 5%, VRDN (c)(d)

4,500

4,500

Mohave County Indl. Dev. Auth. Indl. Dev. Rev. (Citizens Communications Co. Proj.):

Series 1988, 4.75% tender 7/20/01, CP mode (d)

4,500

4,500

Series 1997 4.5%, VRDN (c)(d)

2,090

2,090

Santa Cruz County Indl. Dev. Auth. Indl. Dev. Rev. (Citizens Communications Co. Proj.) Series 1988, 4.75% tender 7/20/01, CP mode (d)

5,500

5,500

16,590

Hawaii - 1.1%

Hawaii Dept. of Budget & Fin. Spl. Purp. Mtg. Rev.
(Citizens Communications Co. Proj.):

Series 1985, 4.9% tender 7/12/01, CP mode

3,200

3,200

Municipal Notes - continued

Principal
Amount (000s)

Value (Note 1)
(000s)

Hawaii - continued

Hawaii Dept. of Budget & Fin. Spl. Purp. Mtg. Rev.
(Citizens Communications Co. Proj.): - continued

Series 1988 B, 4.95% tender 7/12/01, CP mode (d)

$ 1,100

$ 1,100

Series 1988 C, 4.75% tender 7/27/01, CP mode (d)

7,500

7,500

11,800

Illinois - 0.4%

Illinois Health Facilities Auth. Rev. (Resurrection Health Care Proj.) Series 1999A, 3.35% (FSA Insured), VRDN (c)

4,400

4,400

Kentucky - 0.1%

Trimble County Poll. Cont. Rev. (Louisville Gas & Elec. Co. Proj.) Series 1996 A, 3.25% tender 8/16/01, CP mode

1,000

1,000

Pennsylvania - 1.3%

Northampton County Indl. Dev. Auth. Rev. (Citizens Communications Co. Proj.):

Series 1988, 4.75% tender 7/20/01, CP mode (d)

7,750

7,750

Series 1991, 4.95% tender 7/12/01, CP mode (d)

5,750

5,750

13,500

TOTAL MUNICIPAL NOTES

(Cost $47,290)

47,290

TOTAL INVESTMENT PORTFOLIO - 106.5%

(Cost $1,109,045)

1,132,016

NET OTHER ASSETS - (6.5)%

(68,892)

NET ASSETS - 100%

$ 1,063,124

Security Type Abbreviations

CP - COMMERCIAL PAPER

VRDN - VARIABLE RATE DEMAND NOTE

Legend

(a) S&P credit ratings are used in the absence of a rating by Moody's Investors Service, Inc.

(b) Security purchased on a delayed delivery or when-issued basis.

(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(e) Security collateralized by an amount sufficient to pay interest and principal.

Other Information

The composition of long-term debt holdings as a percentage of total value of investments in securities, is as follows (ratings are unaudited):

Moody's Ratings

S&P Ratings

Aaa, Aa, A

85.9%

AAA, AA, A

85.3%

Baa

4.5%

BBB

3.3%

Ba

0.0%

BB

0.0%

B

0.0%

B

0.0%

Caa

0.0%

CCC

0.0%

Ca, C

0.0%

CC, C

0.0%

D

0.0%

The percentage not rated by Moody's or S&P amounted to 1.4%.

Purchases and sales of securities, other than short-term securities, aggregated $892,706,000 and $713,196,000, respectively.

The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows:

General Obligations

45.6%

Electric Utilities

17.4

Escrowed/Pre-Refunded

11.2

Transportation

9.7

Special Tax

6.8

Education

6.3

Others* (individually less than 5%)

3.0

100.0%

* Includes net other assets.

Income Tax Information

At June 30, 2001, the aggregate cost of investment securities for income tax purposes was $1,108,984,000. Net unrealized appreciation aggregated $23,032,000, of which $23,259,000 related to appreciated investment securities and $227,000 related to depreciated investment securities.

At December 31, 2000, the fund had a capital loss carryforward of approximately $1,456,000 of which $218,000 and $1,238,000 will expire on December 31, 2007 and 2008, respectively.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amount)

June 30, 2001 (Unaudited)

Assets

Investment in securities, at value (cost $1,109,045) -
See accompanying schedule

$ 1,132,016

Cash

10,095

Receivable for investments sold

19,386

Receivable for fund shares sold

2,757

Interest receivable

14,186

Total assets

1,178,440

Liabilities

Payable for investments purchased
Regular delivery

$ 21,099

Delayed delivery

92,500

Payable for fund shares redeemed

843

Distributions payable

530

Accrued management fee

327

Other payables and accrued expenses

17

Total liabilities

115,316

Net Assets

$ 1,063,124

Net Assets consist of:

Paid in capital

$ 1,039,097

Undistributed net investment income

4

Accumulated undistributed net realized
gain (loss) on investments

1,052

Net unrealized appreciation (depreciation) on investments

22,971

Net Assets, for 103,770 shares outstanding

$ 1,063,124

Net Asset Value, offering price and redemption price
per share ($1,063,124 ÷ 103,770 shares)

$10.25

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements - continued

Statement of Operations

Amounts in thousands

Six months ended June 30, 2001 (Unaudited)

Investment Income

Interest

$ 22,865

Expenses

Management fee

$ 1,930

Transfer agent fees

347

Accounting fees and expenses

123

Non-interested trustees' compensation

2

Custodian fees and expenses

9

Registration fees

32

Audit

16

Legal

16

Total expenses before reductions

2,475

Expense reductions

(411)

2,064

Net investment income

20,801

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on investment securities

2,568

Change in net unrealized appreciation (depreciation) on investment securities

9,477

Net gain (loss)

12,045

Net increase (decrease) in net assets resulting
from operations

$ 32,846

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

Amounts in thousands

Six months ended
June 30, 2001
(Unaudited)

Four months ended
December 31,

2000

Year ended
August 31,
2000

Increase (Decrease) in Net Assets

Operations
Net investment income

$ 20,801

$ 12,701

$ 30,672

Net realized gain (loss)

2,568

800

(1,866)

Change in net unrealized
appreciation (depreciation)

9,477

7,353

6,149

Net increase (decrease) in net assets resulting from operations

32,846

20,854

34,955

Distributions to shareholders
From net investment income

(20,741)

(12,727)

(30,876)

From net realized gain

-

(93)

-

In excess of net realized gain

-

-

(235)

Total distributions

(20,741)

(12,820)

(31,111)

Share transactions
Net proceeds from sales of shares

307,275

172,803

706,425

Reinvestment of distributions

17,425

10,583

25,165

Cost of shares redeemed

(239,136)

(129,484)

(529,688)

Net increase (decrease) in net assets resulting from share transactions

85,564

53,902

201,902

Redemption fees

1

-

-

Total increase (decrease) in
net assets

97,670

61,936

205,746

Net Assets

Beginning of period

965,454

903,518

697,772

End of period (including under (over) distribution of net investment income of $4, $(56) and $9, respectively)

$ 1,063,124

$ 965,454

$ 903,518

Other Information

Shares

Sold

30,051

17,211

71,021

Issued in reinvestment of distributions

1,705

1,054

2,530

Redeemed

(23,403)

(12,909)

(53,282)

Net increase (decrease)

8,353

5,356

20,269

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

Six months ended
June 30, 2001

Years ended December 31,

(Unaudited)

2000 F

2000 G

1999 G

1998 G

1997 G

1996 G

Selected Per-Share Data

Net asset value, beginning of period

$ 10.120

$ 10.030

$ 10.000

$ 10.150

$ 10.040

$ 9.930

$ 9.980

Income from Investment Operations
Net investment income

.209 D

.139 D

.399 D

.395

.419

.425

.418

Net realized and unrealized gain (loss)

.128

.092

.034

(.150)

.110

.110

(.050)

Total from investment operations

.337

.231

.433

.245

.529

.535

.368

Less Distributions

From net investment income

(.207)

(.140)

(.400)

(.395)

(.419)

(.425)

(.418)

From net realized gain

-

(.001)

-

-

-

-

-

In excess of net realized gain

-

-

(.003)

-

-

-

-

Total distributions

(.207)

(.141)

(.403)

(.395)

(.419)

(.425)

(.418)

Redemption fees added to paid in capital

.000

-

-

-

-

-

-

Net asset value, end of period

$ 10.250

$ 10.120

$ 10.030

$ 10.000

$ 10.150

$ 10.040

$ 9.930

Total Return B, C

3.35%

2.32%

4.45%

2.44%

5.37%

5.49%

3.75%

Ratios and Supplemental Data

Net assets, end of period (in millions)

$ 1,063

$ 965

$ 904

$ 698

$ 649

$ 726

$ 791

Ratio of expenses to average net assets before
expense reductions

.49% A

.49% A

.55%

.55%

.55%

.55%

.55%

Ratio of expenses to average net assets
after voluntary waivers

.49% A

.49% A

.54%

.55%

.55%

.55%

.54%

Ratio of expenses to average net assets after all
expense reductions

.41% A, E

.45% A, E

.54%

.55%

.55%

.55%

.54%

Ratio of net investment income to average net assets

4.10% A

4.17% A

4.02%

3.89%

4.15%

4.25%

4.17%

Portfolio turnover rate

146% A

106% A

53%

66%

33%

32%

78%

A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Net investment income per share has been calculated based on average shares outstanding during the period. E FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses. F For the four months ended December 31 G For the year ended August 31

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2001 (Unaudited)

1. Significant Accounting Policies.

Spartan Short-Intermediate Municipal Income Fund (the fund) is a fund of Fidelity Municipal Trust (the trust), (formerly a fund of Fidelity Union Street trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Security Valuation. The fund calculates its net asset value per share as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Securities are valued based upon a computerized matrix system and/or appraisals by a pricing service, both of which consider market transactions and dealer-supplied valuations. Securities (including restricted securities) for which quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost or original cost plus accrued interest, both of which approximate current value. Investments in open-end investment companies are valued at their net asset value each business day.

Income Taxes. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the fund is not subject to income taxes to the extent that it distributes all of its taxable income for its fiscal year. The Schedule of Investments includes information regarding income taxes, if any, under the caption "Income Tax Information."

Investment Income. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Distributions to Shareholders. Distributions are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date.

Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences, which may result in distribution reclassifications, are primarily due to differing treatments for futures transactions, market discount, capital loss carryforwards and losses deferred due to futures transactions and excise tax regulations.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Distributions to Shareholders - continued

Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Undistributed net investment income and accumulated undistributed net realized gain (loss) on investments may include temporary book and tax basis differences which will reverse in a subsequent period. Any taxable income or gain remaining at fiscal year end is distributed in the following year.

Short-Term Trading (Redemption) Fees. Shares purchased after April 16, 2001 and held in the fund less than 30 days are subject to a short-term trading fee equal to .50% of the proceeds of the redeemed shares. The fee, which is retained by the fund, is accounted for as an addition to paid in capital.

Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost.

Change in Accounting Principle. Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The cumulative effect of this accounting change had no impact on total net assets of the fund, but resulted in a $8,570 increase to the cost of securities held and a corresponding increase to accumulated net undistributed realized gain (loss), based on securities held by the fund on January 1, 2001.

The effect of this change during the period, was to increase net investment income by $52,493 and decrease net unrealized appreciation/depreciation by $52,493. The Statement of Changes in net assets and financial highlights for the prior periods have not been restated to reflect this change in presentation.

2. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is "marked to market" daily and equivalent deliverable securities are held for the transaction. The values of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. Fees and Other Transactions with Affiliates.

Management Fee. As the fund's investment adviser, Fidelity Management & Research Company (FMR) receives a monthly fee that is calculated on the basis of a group fee rate plus a fixed individual fund fee rate applied to the average net assets of the fund. The group fee rate is the weighted average of a series of rates and is based on the monthly average net assets of all the mutual funds advised by FMR. The rates ranged from .0920% to .3700% for the period. The annual individual fund fee rate is .25%. In the event that these rates were lower than the contractual rates in effect during the period, FMR voluntarily implemented the above rates, as they resulted in the same or a lower management fee. For the period, the management fee was equivalent to an annualized rate of .38% of average net assets.

Sub-Adviser Fee. As the fund's investment sub-adviser, Fidelity Investments Money Management, Inc.(FIMM), an affiliate of FMR, receives a fee from FMR of 50% of the management fee payable to FMR. The fee is paid prior to any voluntary expense reimbursements which may be in effect.

Transfer Agent and Accounting Fees. Citibank, N.A.(Citibank) is the custodian, transfer agent and shareholder servicing agent for the fund. Citibank has entered into a sub-contract with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the fund's transfer and shareholder servicing agent and accounting functions. The fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.

For the period, the transfer agent fees were equivalent to an annualized rate of .07% of average net assets.

5. Expense Reductions.

Through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody, transfer agent and accounting expenses by $9,000, $300,000 and $102,000, respectively.

Semiannual 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

If you are not currently on the Internet, call EarthLink Sprint at 1-800-288-2967, and be sure to ask for registration number SMD004 to receive a special Fidelity package that includes 30 days of free Internet access. EarthLink is North America's #1 independent Internet access provider.

(computer_graphic)

Fidelity On-line Xpress+®

Fidelity On-line Xpress+ software for Windows combines comprehensive portfolio management capabilities, securities trading and access to research and analysis tools . . . all on your desktop. Call Fidelity at 1-800-544-0240 or visit our web site for more information on how to manage your investments via your PC.

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.

Semiannual Report

To Write Fidelity

If more than one address is listed, please locate the address that is closest to you. We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

(letter_graphic)

Making Changes
To Your Account

(such as changing name, address, bank, etc.)

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002

(letter_graphic)

For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048

Selling shares

Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602

Overnight Express
Fidelity Investments
Attn: Redemptions - CP6I

400 East Las Colinas Blvd.
Irving, TX 75039-5587

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)

For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602

Overnight Express
Fidelity Investments
Attn: Redemptions - CP5L

400 East Las Colinas Blvd.
Irving, TX 75039-5587

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

To Visit Fidelity

For directions and hours,
please call 1-800-544-9797.

Arizona

7373 N. Scottsdale Road
Scottsdale, AZ

California

815 East Birch Street
Brea, CA

851 East Hamilton Avenue
Campbell, CA

527 North Brand Boulevard
Glendale, CA

19200 Von Karman Avenue
Irvine, CA

10100 Santa Monica Blvd.
Los Angeles, CA

251 University Avenue
Palo Alto, CA

1760 Challenge Way
Sacramento, CA

7676 Hazard Center Drive
San Diego, CA

8 Montgomery Street
San Francisco, CA

950 Northgate Drive
San Rafael, CA

1400 Civic Drive
Walnut Creek, CA

6300 Canoga Avenue
Woodland Hills, CA

Colorado

1625 Broadway
Denver, 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

Delaware

222 Delaware Avenue
Wilmington, DE

Florida

4400 N. Federal Highway
Boca Raton, FL

90 Alhambra Plaza
Coral Gables, FL

4090 N. Ocean Boulevard
Ft. Lauderdale, FL

1907 West State Road 434
Longwood, FL

8880 Tamiami Trail, North
Naples, FL

2401 PGA Boulevard
Palm Beach Gardens, FL

8065 Beneva Road
Sarasota, FL

1502 N. Westshore Blvd.
Tampa, FL

Georgia

3445 Peachtree Road, N.E.
Atlanta, GA

1000 Abernathy Road
Atlanta, GA

Illinois

One North Franklin Street
Chicago, IL

1415 West 22nd Street
Oak Brook, IL

1700 East Golf Road
Schaumburg, IL

3232 Lake Avenue
Wilmette, IL

Indiana

4729 East 82nd Street
Indianapolis, IN

Maine

Three Canal Plaza
Portland, ME

Maryland

7401 Wisconsin Avenue
Bethesda, MD

One W. Pennsylvania Ave.
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

25 State Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

416 Belmont Street
Worcester, MA

Semiannual Report

Michigan

280 Old N. Woodward Ave.
Birmingham, MI

29155 Northwestern Hwy.
Southfield, MI

Minnesota

7600 France Avenue South
Edina, MN

Missouri

700 West 47th Street
Kansas City, MO

8885 Ladue Road
Ladue, MO

New Jersey

150 Essex Street
Millburn, NJ

56 South Street
Morristown, NJ

501 Route 17, South
Paramus, NJ

New York

1055 Franklin Avenue
Garden City, NY

999 Walt Whitman Road
Melville, L.I., NY

1271 Avenue of the Americas
New York, NY

71 Broadway
New York, NY

350 Park Avenue
New York, NY

North Carolina

4611 Sharon Road
Charlotte, NC

Ohio

600 Vine Street
Cincinnati, OH

28699 Chagrin Boulevard
Woodmere Village, OH

Oregon

16850 SW 72nd Avenue
Tigard, OR

Pennsylvania

1735 Market Street
Philadelphia, PA

439 Fifth Avenue
Pittsburgh, PA

Rhode Island

47 Providence Place
Providence, RI

Tennessee

6150 Poplar Avenue
Memphis, TN

Texas

10000 Research Boulevard
Austin, TX

4017 Northwest Parkway
Dallas, TX

1155 Dairy Ashford Street
Houston, TX

2701 Drexel Drive
Houston, TX

400 East Las Colinas Blvd.
Irving, TX

14100 San Pedro
San Antonio, TX

19740 IH 45 North
Spring, TX

Utah

215 South State Street
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

Washington

411 108th Avenue, N.E.
Bellevue, WA

511 Pine Street
Seattle, WA

Washington, DC

1900 K Street, N.W.
Washington, DC

Wisconsin

595 North Barker Road
Brookfield, WI

Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Adviser

Fidelity Investments Money
Management, Inc.

Officers

Edward C. Johnson 3d, President

Abigail P. Johnson, Senior Vice President

Dwight D. Churchill, Vice President

Stanley N. Griffith, Assistant Vice President

David L. Murphy, Vice President

Christine J. Thompson, Vice President

Eric D. Roiter, Secretary

Robert A. Dwight, Treasurer

Maria F. Dwyer, Deputy Treasurer

John H. Costello, Assistant Treasurer

Paul F. Maloney, Assistant Treasurer

Thomas J. Simpson, Assistant Treasurer

Board of Trustees

J. Michael Cook *

Ralph F. Cox *

Phyllis Burke Davis *

Robert M. Gates *

Abigail P. Johnson

Edward C. Johnson 3d

Donald J. Kirk *

Marie L. Knowles *

Ned C. Lautenbach *

Peter S. Lynch

Marvin L. Mann *

William O. McCoy *

Advisory Board

Robert C. Pozen

William S. Stavropoulos

General Distributor

Fidelity Distributors Corporation

Boston, MA

* Independent trustees

Transfer and Shareholder
Servicing Agents

Citibank, N.A.
New York, NY

Fidelity Service Company, Inc.
Boston, MA

Custodian

Citibank, N.A.

New York, NY

Fidelity's Municipal Bond Funds

Spartan(automated graphic)    Arizona Municipal Income

Spartan California Municipal Income

Spartan Connecticut Municipal Income

Spartan Florida Municipal Income

Spartan Intermediate Municipal Income

Spartan Maryland Municipal Income

Spartan Massachusetts Municipal Income

Spartan Michigan Municipal Income

Spartan Minnesota Municipal Income

Spartan Municipal Income

Spartan New Jersey Municipal Income

Spartan New York Municipal Income

Spartan Ohio Municipal Income

Spartan Pennsylvania Municipal Income

Spartan Short-Intermediate
Municipal Income

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®) (automated graphic)    1-800-544-5555

(automated graphic)    Automated line for quickest service

STM-SANN-0801 140658
1.701069.103

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com