N-CSRS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-02628

Fidelity Municipal Trust
(Exact name of registrant as specified in charter)

82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices)       (Zip code)

Scott C. Goebel, Secretary

82 Devonshire St.

Boston, Massachusetts 02109
(Name and address of agent for service)

Registrant's telephone number, including area code: 617-563-7000

Date of fiscal year end:	December 31
Date of reporting period:	June 30, 2008

Item 1. Reports to Stockholders

Fidelity®
Michigan Municipal Income
Fund

and

Fidelity
Michigan Municipal Money
Market Fund

Semiannual Report

June 30, 2008
(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Fidelity Michigan Municipal Income Fund
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
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.
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
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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

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

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

Semiannual Report

This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the funds nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Domestic and international securities markets have struggled thus far in 2008. High-grade fixed-income investments produced modestly positive results, but many stock benchmarks suffered double-digit losses through the first half of this year. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2008 to June 30, 2008).

Actual Expenses

The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

Semiannual Report

	Beginning Account Value January 1, 2008	Ending Account Value June 30, 2008	Expenses Paid During Period* January 1, 2008 to June 30, 2008
Fidelity Michigan Municipal Income Fund
Actual	$ 1,000.00	$ 999.20	$ 2.44
HypotheticalA	$ 1,000.00	$ 1,022.43	$ 2.46
Fidelity Michigan Municipal Money Market Fund
Actual	$ 1,000.00	$ 1,009.30	$ 2.70
HypotheticalA	$ 1,000.00	$ 1,022.18	$ 2.72

^A 5% return per year before expenses

* Expenses are equal to each Fund's annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

	Annualized Expense Ratio
Fidelity Michigan Municipal Income Fund	.49%
Fidelity Michigan Municipal Money Market Fund	.54%

Semiannual Report

Fidelity Michigan Municipal Income Fund

Investment Changes (Unaudited)

Top Five Sectors as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
General Obligations	42.2	40.0
Water & Sewer	17.2	17.9
Escrowed/Pre-Refunded	15.7	20.3
Special Tax	7.2	7.5
Health Care	6.9	7.2
Weighted Average Maturity as of June 30, 2008
		6 months ago
Years	7.6	6.6

The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity, taking into account any maturity shortening feature such as a call, refunding or redemption provision.

Duration as of June 30, 2008
		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 (% of fund's net assets)
As of June 30, 2008		As of December 31, 2007
	AAA 30.5%		AAA 73.1%
	AA,A 66.9%		AA,A 24.8%
	BBB 2.2%		BBB 1.9%
	BB and Below 0.1%		BB and Below 0.1%
	Short-Term Investments and Net Other Assets 0.3%		Short-Term Investments and Net Other Assets 0.1%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings.

Semiannual Report

Fidelity Michigan Municipal Income Fund

Investments June 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 99.7%
	Principal Amount	Value
Guam - 0.3%
Guam Ed. Fing. Foundation (Guam Pub. School Facilities Proj.) 5% 10/1/16	$ 1,045,000	$ 1,068,304
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35	615,000	595,215
		1,663,519
Michigan - 96.7%
Algonac Cmnty. Schools Series I, 5.25% 5/1/28 (FSA Insured)	1,575,000	1,650,033
Allegan Pub. School District:
5% 5/1/14 (MBIA Insured)	1,570,000	1,669,271
5% 5/1/16 (MBIA Insured)	1,545,000	1,647,882
Anchor Bay School District 2000 School Bldg. & Site (School Bldg. & Site Prog.) 5% 5/1/29	2,155,000	2,173,899
Ann Arbor Bldg. Auth. Series 2005 A:
5% 3/1/17 (MBIA Insured)	1,405,000	1,480,491
5% 3/1/18 (MBIA Insured)	1,440,000	1,516,507
Ann Arbor Econ. Dev. Corp. Ltd. Oblig. Rev. (Glacier Hills, Inc. Proj.) 8.375% 1/15/19 (Escrowed to Maturity) (d)	2,679,000	3,270,496
Bay City Gen. Oblig. 0% 6/1/15 (AMBAC Insured)	1,725,000	1,262,303
Brighton Area School District Livingston County Series II, 0% 5/1/15 (AMBAC Insured)	10,000,000	7,444,100
Byron Ctr. Pub. Schools 5.5% 5/1/16	1,055,000	1,124,788
Caledonia Cmnty. Schools Counties of Kent, Allegan and Barry:
5.25% 5/1/17	1,370,000	1,452,447
5.25% 5/1/18	1,100,000	1,162,733
Carman-Ainsworth Cmnty. School District:
5% 5/1/16 (FSA Insured)	1,000,000	1,068,420
5% 5/1/17 (FSA Insured)	2,065,000	2,191,006
Carrier Creek Drainage District #326:
5% 6/1/16 (AMBAC Insured)	1,620,000	1,721,947
5% 6/1/25 (AMBAC Insured)	1,775,000	1,816,553
Charles Stewart Mott Cmnty. College 5% 5/1/17 (MBIA Insured)	1,675,000	1,751,715
Chelsea School District:
5% 5/1/15 (MBIA Insured)	1,720,000	1,832,368
5% 5/1/18 (MBIA Insured)	1,675,000	1,777,728
Chippewa Valley Schools 5.5% 5/1/17 (Pre-Refunded to 5/1/12 @ 100) (d)	1,125,000	1,211,164
Clarkston Cmnty. Schools:
5% 5/1/15 (FSA Insured)	1,905,000	2,054,314
Municipal Bonds - continued
	Principal Amount	Value
Michigan - continued
Clarkston Cmnty. Schools: - continued
5% 5/1/16 (FSA Insured)	$ 1,855,000	$ 2,004,402
5.375% 5/1/21 (Pre-Refunded to 5/1/13 @ 100) (d)	1,950,000	2,112,825
5.375% 5/1/22 (Pre-Refunded to 5/1/13 @ 100) (d)	1,150,000	1,246,025
Comstock Park Pub. Schools 5% 5/1/16 (FSA Insured)	1,000,000	1,067,800
Constantine Pub. Schools:
5% 5/1/25	1,130,000	1,153,707
5% 5/1/25 (Pre-Refunded to 11/1/12 @ 100) (d)	1,120,000	1,193,819
5.5% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (d)	1,220,000	1,324,798
5.5% 5/1/19 (Pre-Refunded to 11/1/12 @ 100) (d)	1,245,000	1,351,946
5.5% 5/1/21 (Pre-Refunded to 11/1/12 @ 100) (d)	1,250,000	1,357,375
Crawford AuSable School District (School Bldg. & Site Proj.) Series 2001, 5.625% 5/1/18 (Pre-Refunded to 5/1/11 @ 100) (d)	1,100,000	1,173,359
Detroit City School District:
(School Bldg. & Site Impt. Proj.) Series B, 5% 5/1/33	1,800,000	1,799,874
Series 2003 B, 5% 5/1/24 (FGIC Insured)	5,000,000	5,085,400
Series 2005 A, 5.25% 5/1/30 (FSA Insured)	5,000,000	5,323,000
Series A:
5.5% 5/1/16 (Pre-Refunded to 5/1/12 @ 100) (d)	1,500,000	1,617,675
5.5% 5/1/18 (Pre-Refunded to 5/1/12 @ 100) (d)	1,000,000	1,078,450
Series B, 5.25% 5/1/15 (FGIC Insured)	3,085,000	3,273,463
Detroit Convention Facilities Rev. (Cobo Hall Expansion Proj.):
5% 9/30/11 (MBIA Insured)	3,000,000	3,157,320
5% 9/30/12 (MBIA Insured)	4,765,000	5,049,995
Detroit Gen. Oblig.:
(Distributable State Aid Proj.) 5.25% 5/1/09 (AMBAC Insured)	4,535,000	4,646,561
Series 2003 A, 5% 4/1/11 (XL Cap. Assurance, Inc. Insured)	1,430,000	1,484,454
Series 2005 B, 5% 4/1/13 (FSA Insured)	1,830,000	1,932,553
Series 2005 C, 5% 4/1/13 (FSA Insured)	1,995,000	2,106,800
Series B1:
5% 4/1/13 (AMBAC Insured)	2,000,000	2,063,700
5% 4/1/15 (AMBAC Insured)	3,800,000	3,887,248
5.5% 4/1/17 (Pre-Refunded to 4/1/11 @ 100) (d)	2,615,000	2,779,484
5.5% 4/1/19 (Pre-Refunded to 4/1/11 @ 100) (d)	1,500,000	1,594,350
5.5% 4/1/20 (Pre-Refunded to 4/1/11 @ 100) (d)	1,250,000	1,328,625
Detroit Swr. Disp. Rev.:
ARS Series 2001 D1, 5.5%, tender 7/1/08 (MBIA Insured) (b)	10,000,000	9,300,000
Municipal Bonds - continued
	Principal Amount	Value
Michigan - continued
Detroit Swr. Disp. Rev.: - continued
Series 2001 E, 5.75% 7/1/31 (Berkshire Hathaway Assurance Corp. Insured)	$ 2,700,000	$ 2,888,460
Series A:
0% 7/1/14 (FGIC Insured)	6,730,000	5,130,077
5% 7/1/32 (FSA Insured)	535,000	532,774
5% 7/1/32 (Pre-Refunded to 7/1/13 @ 100) (d)	1,365,000	1,462,598
Series B:
5% 7/1/15 (FGIC Insured)	1,085,000	1,127,141
5% 7/1/36 (FGIC Insured)	7,800,000	7,373,652
5.5% 7/1/17 (MBIA Insured)	3,050,000	3,313,520
Detroit Wtr. Supply Sys. Rev.:
Series 1993, 6.5% 7/1/15 (FGIC Insured)	6,340,000	7,085,457
Series A:
5% 7/1/34 (MBIA Insured)	5,000,000	4,782,850
5.25% 7/1/16 (MBIA Insured)	1,000,000	1,066,480
5.25% 7/1/17 (MBIA Insured)	2,000,000	2,124,600
5.25% 7/1/21 (MBIA Insured)	6,035,000	6,258,114
5.5% 7/1/15 (Pre-Refunded to 1/1/10 @ 101) (d)	3,675,000	3,858,383
5.75% 7/1/11 (MBIA Insured)	3,050,000	3,238,124
Series B:
5% 7/1/20 (MBIA Insured)	5,000,000	5,105,700
5.5% 7/1/35 (Berkshire Hathaway Assurance Corp. Insured) (FGIC Insured)	2,800,000	2,918,020
Series C, 5% 7/1/33 (FSA Insured)	8,500,000	8,392,475
DeWitt Pub. Schools:
5% 5/1/15 (MBIA Insured)	1,475,000	1,572,276
5% 5/1/17 (MBIA Insured)	1,550,000	1,650,006
Dexter Cmnty. Schools 5% 5/1/18 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF))	1,955,000	2,037,345
Durand Area Schools Gen. Oblig.:
5% 5/1/27 (FSA Insured)	1,225,000	1,257,634
5% 5/1/28 (FSA Insured)	1,250,000	1,278,350
5% 5/1/29 (FSA Insured)	1,275,000	1,296,382
East Grand Rapids Pub. School District:
5% 5/1/16 (FSA Insured)	1,425,000	1,508,975
5% 5/1/17 (FSA Insured)	1,985,000	2,090,344
5.5% 5/1/17	1,690,000	1,784,370
East Lansing School District Gen. Oblig. Series B, 5% 5/1/30 (MBIA Insured)	3,530,000	3,556,157
Farmington Pub. School District 5% 5/1/18 (FSA Insured)	4,500,000	4,758,030
Municipal Bonds - continued
	Principal Amount	Value
Michigan - continued
Fenton Area Pub. Schools 5% 5/1/14 (FGIC Insured)	$ 1,775,000	$ 1,882,459
Ferris State Univ. Rev.:
5% 10/1/16 (MBIA Insured)	1,255,000	1,313,069
5% 10/1/17 (MBIA Insured)	1,320,000	1,372,246
Flushing Cmnty. Schools:
5.25% 5/1/17 (Pre-Refunded to 5/1/13 @ 100) (d)	1,000,000	1,077,990
5.25% 5/1/18 (Pre-Refunded to 5/1/13 @ 100) (d)	1,030,000	1,110,330
Fraser Pub. School District:
5% 5/1/16 (FSA Insured)	1,055,000	1,130,454
5% 5/1/17 (FSA Insured)	1,615,000	1,713,547
Garden City School District:
5% 5/1/14 (FSA Insured)	1,210,000	1,296,309
5% 5/1/17 (FSA Insured)	1,390,000	1,470,551
5% 5/1/19 (FSA Insured)	1,205,000	1,271,142
Genesee County Gen. Oblig. Series A:
5% 5/1/17 (MBIA Insured)	1,355,000	1,408,902
5% 5/1/18 (MBIA Insured)	1,505,000	1,554,078
Gibraltar School District:
5% 5/1/16 (FSA Insured)	1,230,000	1,306,568
5% 5/1/17 (FSA Insured)	1,230,000	1,297,527
Grand Ledge Pub. Schools District (School Bldg. & Site Proj.):
5% 5/1/23 (MBIA Insured)	1,175,000	1,204,422
5% 5/1/24 (MBIA Insured)	1,300,000	1,327,833
5% 5/1/28 (MBIA Insured)	4,300,000	4,333,282
Grand Rapids Cmnty. College:
5% 5/1/17 (FSA Insured)	1,315,000	1,420,042
5% 5/1/19 (FSA Insured)	1,315,000	1,406,577
Grand Rapids Downtown Dev. Auth. Tax Increment Rev. 0% 6/1/11 (MBIA Insured)	3,160,000	2,840,113
Grand Rapids San. Swr. Sys. Rev. 5% 1/1/34 (MBIA Insured)	3,000,000	3,024,630
Grand Rapids Wtr. Supply Sys. 5% 1/1/35 (FGIC Insured)	5,000,000	5,043,500
Grand Valley Michigan State Univ. Rev. Series A:
5% 12/1/19 (AMBAC Insured)	500,000	528,025
5% 12/1/33 (FSA Insured)	5,000,000	5,081,850
Grosse Ile Township School District Unltd. Tax Gen. Oblig.:
5% 5/1/29 (MBIA Insured)	1,950,000	1,970,007
5% 5/1/32 (MBIA Insured)	1,950,000	1,958,639
Municipal Bonds - continued
	Principal Amount	Value
Michigan - continued
Harper Creek Cmnty. School District (School Bldg. & Site Proj.):
4.75% 5/1/27 (FSA Insured) (a)	$ 500,000	$ 497,505
5.25% 5/1/21 (FSA Insured) (a)	2,000,000	2,135,980
5.25% 5/1/24 (FSA Insured) (a)	2,100,000	2,215,311
Haslett Pub. Schools 5% 5/1/16 (MBIA Insured)	1,100,000	1,151,700
Howell Pub. Schools 0% 5/1/10 (AMBAC Insured)	1,130,000	1,065,149
Hudsonville Pub. Schools 5% 5/1/16 (FSA Insured)	1,000,000	1,062,250
Huron Valley School District:
0% 5/1/10 (FGIC Insured)	2,500,000	2,347,650
0% 5/1/11 (FGIC Insured)	5,830,000	5,250,032
0% 5/1/12 (FGIC Insured)	1,420,000	1,222,080
5.25% 5/1/16	2,450,000	2,606,335
Kalamazoo Hosp. Fin. Auth. Hosp. Facilities Rev. (Bronson Methodist Hosp. Proj.):
Series A:
4% 5/15/11 (FSA Insured)	95,000	95,765
4% 5/15/12 (FSA Insured)	155,000	155,270
5% 5/15/13 (FSA Insured)	2,125,000	2,217,076
Series B:
4% 5/15/11 (FSA Insured)	1,900,000	1,915,295
4% 5/15/12 (FSA Insured)	2,125,000	2,128,698
5% 5/15/13 (FSA Insured)	2,125,000	2,217,076
Kalamazoo Pub. Schools:
5% 5/1/17 (FSA Insured)	3,165,000	3,395,539
5.25% 5/1/16 (FSA Insured)	1,500,000	1,645,995
Kent Hosp. Fin. Auth. Hosp. Facilities Rev.:
(Butterworth Hosp. Proj.) Series A, 7.25% 1/15/13	3,100,000	3,356,804
(Spectrum Health Proj.) Series A:
5.375% 1/15/11	2,420,000	2,462,592
5.375% 1/15/12	2,505,000	2,548,161
5.5%, tender 1/15/15 (b)	2,800,000	2,974,832
L'Anse Creuse Pub. Schools:
5% 5/1/24 (FSA Insured)	1,350,000	1,389,218
5.375% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (d)	1,000,000	1,078,810
5.375% 5/1/20 (Pre-Refunded to 11/1/12 @ 100) (d)	1,000,000	1,078,810
Lansing Bldg. Auth. Rev. 0% 6/1/12 (AMBAC Insured)	3,000,000	2,578,380
Lapeer Cmnty. Schools:
5% 5/1/22 (FSA Insured)	1,395,000	1,466,801
5% 5/1/37 (FSA Insured)	3,250,000	3,290,073
Municipal Bonds - continued
	Principal Amount	Value
Michigan - continued
Lawton Cmnty. Schools 5.5% 5/1/19 (Pre-Refunded to 11/1/11 @ 100) (d)	$ 1,050,000	$ 1,127,669
Lincoln Consolidated School District:
5% 5/1/14 (FSA Insured)	1,460,000	1,560,185
5% 5/1/16 (FSA Insured)	1,425,000	1,529,795
Michigan Bldg. Auth. Rev.:
(Facilities Prog.) Series III, 5% 10/15/10 (Escrowed to Maturity) (d)	1,000,000	1,046,480
Series 1, 5.25% 10/15/16 (FSA Insured)	5,000,000	5,353,700
Michigan Ctfs. of Prtn. 5.75% 6/1/17 (Pre-Refunded to 6/1/10 @ 100) (d)	3,000,000	3,164,640
Michigan Gen. Oblig.:
(Envir. Protection Prog.) 6.25% 11/1/12	5,365,000	5,690,816
5.25% 9/15/21 (FSA Insured)	5,000,000	5,341,800
Michigan Higher Ed. Student Ln. Auth. Rev. Series XII W, 4.875% 9/1/10 (AMBAC Insured) (c)	3,000,000	3,070,530
Michigan Hosp. Fin. Auth. Rev.:
(Ascension Health Cr. Group Proj.) Series A:
5%, tender 4/1/11	2,040,000	2,112,808
6% 11/15/19 (Pre-Refunded to 11/15/09 @ 101) (d)	10,645,000	11,239,081
(Crittenton Hosp. Proj.) Series A:
5.5% 3/1/13	455,000	477,654
5.5% 3/1/14	1,300,000	1,362,023
5.5% 3/1/15	1,985,000	2,072,836
(Genesys Reg'l. Med. Hosp. Proj.) Series A, 5.3% 10/1/11 (Escrowed to Maturity) (d)	1,000,000	1,017,210
(Henry Ford Health Sys. Proj.):
Series 1992 A, 6% 9/1/12 (Escrowed to Maturity) (d)	1,500,000	1,656,180
Series 2003 A, 5.5% 3/1/14 (Pre-Refunded to 3/1/13 @ 100) (d)	2,000,000	2,158,940
Series A:
5% 11/15/09	650,000	664,801
5% 11/15/12	1,485,000	1,554,186
5% 11/15/14	1,000,000	1,047,650
6% 11/15/19 (Pre-Refunded to 11/15/09 @ 101) (d)	1,945,000	2,052,208
(Mercy Health Svcs. Proj.):
Series 1996 R, 5.375% 8/15/26 (Escrowed to Maturity) (d)	2,500,000	2,508,925
Series Q:
5.25% 8/15/10 (Escrowed to Maturity) (d)	2,195,000	2,202,529
Municipal Bonds - continued
	Principal Amount	Value
Michigan - continued
Michigan Hosp. Fin. Auth. Rev.: - continued
5.375% 8/15/26 (Escrowed to Maturity) (d)	$ 2,450,000	$ 2,458,747
6% 8/15/08 (Escrowed to Maturity) (d)	1,130,000	1,134,859
6% 8/15/10 (Escrowed to Maturity) (d)	1,265,000	1,270,427
Series R, 5.375% 8/15/16 (Escrowed to Maturity) (d)	2,500,000	2,508,925
(MidMichigan Health Obligated Group Prog.) Series 2002 A, 5.5% 4/15/18 (AMBAC Insured)	2,000,000	2,092,780
(Oakwood Hosp. Proj.) Series A, 5% 7/15/17	1,000,000	1,002,140
(Oakwood Obligated Group Proj.) 5.5% 11/1/11	3,000,000	3,135,870
(Saint John Hosp. & Med. Ctr. Proj.) Series A, 6% 5/15/09 (Escrowed to Maturity) (d)	1,710,000	1,769,628
(Sisters of Mercy Health Corp. Proj.) Series P, 5.375% 8/15/14 (Escrowed to Maturity) (d)	570,000	598,107
(Sparrow Hosp. Obligated Group Proj.):
5.5% 11/15/21 (Pre-Refunded to 11/15/11 @ 101) (d)	1,435,000	1,536,211
5.625% 11/15/31 (Pre-Refunded to 11/15/11 @ 101) (d)	4,500,000	4,835,115
(Sparrow Hosp. Proj.):
Series 2007, 5% 11/15/20	2,000,000	2,023,760
5% 11/15/17	535,000	553,163
5% 11/15/18	725,000	744,604
5% 11/15/19	1,000,000	1,019,430
(Trinity Health Sys. Proj.) Series 2000 A, 6% 12/1/27	1,535,000	1,590,444
Michigan Muni. Bond Auth. Rev.:
(Detroit School District Proj.) Series B, 5% 6/1/12 (FSA Insured)	7,300,000	7,724,130
(Local Govt. Ln. Prog.):
Series B, 5% 12/1/21 (AMBAC Insured)	1,155,000	1,202,124
Series CA, 0% 6/15/13 (FSA Insured)	3,850,000	3,187,723
Series G, 0% 5/1/19 (AMBAC Insured)	1,865,000	1,106,505
7.5% 11/1/09 (AMBAC Insured)	10,000	10,024
(State Clean Wtr. Revolving Fund Proj.) 5% 10/1/27	3,725,000	3,831,163
Series C, 0% 6/15/15 (FSA Insured)	3,000,000	2,251,920
5% 10/1/18	8,000,000	8,593,440
5% 10/1/23	5,000,000	5,122,900
5.375% 10/1/19	2,005,000	2,113,110
Michigan Strategic Fund Ltd. Oblig. Rev. (Detroit Edison Co. Proj.):
Series A, 5.55% 9/1/29 (MBIA Insured) (c)	1,000,000	1,008,850
Municipal Bonds - continued
	Principal Amount	Value
Michigan - continued
Michigan Strategic Fund Ltd. Oblig. Rev. (Detroit Edison Co. Proj.): - continued
Series BB:
7% 7/15/08 (MBIA Insured)	$ 2,200,000	$ 2,202,596
7% 5/1/21 (AMBAC Insured)	8,520,000	10,073,878
Michigan Technological Univ.:
5% 10/1/38 (Assured Guaranty Corp. Insured) (a)	1,200,000	1,190,652
5.25% 10/1/17 (Assured Guaranty Corp. Insured) (a)	1,875,000	2,038,913
Michigan Tobacco Settlement Fin. Auth. Tobacco Settlement Asset Rev. Series A:
6% 6/1/34	3,000,000	2,661,450
6% 6/1/48	2,000,000	1,723,100
Michigan Trunk Line:
Series A:
0% 10/1/11 (AMBAC Insured)	3,630,000	3,218,794
5.5% 11/1/16	3,000,000	3,345,120
5.25% 11/1/15 (FGIC Insured)	5,000,000	5,436,300
5.25% 10/1/16 (FSA Insured)	3,000,000	3,190,620
Mona Shores School District 6.75% 5/1/10 (FGIC Insured)	2,220,000	2,372,603
Montague Pub. School District:
5.5% 5/1/16	430,000	457,748
5.5% 5/1/17	430,000	457,327
5.5% 5/1/19	430,000	453,590
Mount Clemens Cmnty. School District 5.5% 5/1/16 (Pre-Refunded to 11/1/11 @ 100) (d)	1,000,000	1,072,340
New Haven Cmnty. Schools 5.25% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (d)	1,175,000	1,264,194
New Lothrop Area Pub. Schools Gen. Oblig. 5% 5/1/35 (FSA Insured)	1,000,000	1,014,640
North Kent Swr. Auth. Wtr. & Swr. Rev.:
5% 11/1/19 (MBIA Insured)	420,000	441,273
5% 11/1/20 (MBIA Insured)	490,000	511,325
5% 11/1/22 (MBIA Insured)	1,645,000	1,701,506
5% 11/1/23 (MBIA Insured)	1,290,000	1,329,784
Northern Michigan Univ. Revs. 5.125% 12/1/35 (FSA Insured)	2,750,000	2,817,540
Northview Pub. Schools District 5% 5/1/21 (FSA Insured)	1,070,000	1,121,585
Northville Pub. Schools:
Series II:
5% 5/1/15 (FSA Insured)	1,525,000	1,644,530
Municipal Bonds - continued
	Principal Amount	Value
Michigan - continued
Northville Pub. Schools: - continued
5% 5/1/16 (FSA Insured)	$ 1,475,000	$ 1,566,819
5% 5/1/17 (FSA Insured)	3,675,000	3,897,448
Northwestern Michigan Cmnty. College Impt.:
5.5% 4/1/14 (FGIC Insured)	285,000	292,883
5.5% 4/1/15 (FGIC Insured)	170,000	174,388
Okemos Pub. School District:
0% 5/1/12 (MBIA Insured)	2,500,000	2,155,600
0% 5/1/13 (MBIA Insured)	1,700,000	1,400,817
Petoskey Pub. School District:
5% 5/1/14 (MBIA Insured)	1,430,000	1,520,419
5% 5/1/16 (MBIA Insured)	1,175,000	1,237,357
Plainwell Cmnty. School District:
5% 5/1/15 (FSA Insured)	1,030,000	1,104,304
5% 5/1/16 (FSA Insured)	1,025,000	1,091,963
5.5% 5/1/14	1,000,000	1,079,200
5.5% 5/1/16 (Pre-Refunded to 11/1/12 @ 100) (d)	1,000,000	1,085,900
Plymouth-Canton Cmnty. School District:
4.5% 5/1/24 (FSA Insured)	500,000	497,175
5% 5/1/20 (FSA Insured)	5,000,000	5,286,050
Port Huron Area School District County of Saint Clair 5.25% 5/1/16 (Pre-Refunded to 11/1/12 @ 100) (d)	1,175,000	1,264,194
Portage Pub. Schools 5% 5/1/22 (FSA Insured)	4,300,000	4,521,321
Ravenna Pub. Schools Gen. Oblig. (2008 School Bldg. and Site Proj.):
5% 5/1/31 (FSA Insured) (a)	2,080,000	2,094,310
5% 5/1/34 (FSA Insured) (a)	2,320,000	2,344,986
5% 5/1/38 (FSA Insured) (a)	1,000,000	999,930
Riverview Cmnty. School District:
5% 5/1/14	905,000	969,554
5% 5/1/15	955,000	1,018,985
5% 5/1/17	1,000,000	1,053,070
5% 5/1/18	1,000,000	1,048,290
Rochester Cmnty. School District 5% 5/1/19 (MBIA Insured)	1,475,000	1,572,763
Rockford Pub. Schools Gen. Oblig. (2008 School Bldg. and Site Proj.) 5% 5/1/30 (FSA Insured)	3,975,000	4,045,795
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Proj.) Series M, 5.25% 11/15/31 (MBIA Insured)	2,000,000	2,025,080
Saginaw Valley State Univ. Rev. 5% 7/1/37 (FSA Insured)	2,880,000	2,902,810
Municipal Bonds - continued
	Principal Amount	Value
Michigan - continued
Saint Clair County Gen. Oblig.:
5% 4/1/17 (AMBAC Insured)	$ 1,380,000	$ 1,445,067
5% 4/1/19 (AMBAC Insured)	1,475,000	1,532,289
Saint Joseph School District 5.5% 5/1/18 (Pre-Refunded to 11/1/11 @ 100) (d)	1,065,000	1,143,778
Shepherd Pub. Schools 5% 5/1/17 (FSA Insured)	1,025,000	1,106,877
South Lyon Cmnty. Schools (School Bldg. and Site Prog.) 5.25% 5/1/15 (Pre-Refunded to 11/1/12 @ 100) (d)	1,000,000	1,075,910
South Redford School District 5% 5/1/16 (MBIA Insured)	1,125,000	1,188,135
Southfield Pub. Schools Series A:
5.25% 5/1/17 (Pre-Refunded to 5/1/13 @ 100) (d)	1,025,000	1,104,940
5.25% 5/1/18 (Pre-Refunded to 5/1/13 @ 100) (d)	1,025,000	1,104,940
5.25% 5/1/19 (Pre-Refunded to 5/1/13 @ 100) (d)	1,025,000	1,104,940
5.25% 5/1/20 (Pre-Refunded to 5/1/13 @ 100) (d)	1,025,000	1,104,940
Taylor City Bldg. Auth. County of Wayne Bldg. Auth. Pub. Facilities 5% 10/1/21 (MBIA Insured)	1,735,000	1,775,009
Three Rivers Cmnty. Schools:
5% 5/1/14 (FSA Insured)	1,765,000	1,890,897
5% 5/1/16 (FSA Insured)	1,750,000	1,884,803
Troy School District:
5% 5/1/15	2,135,000	2,278,045
5% 5/1/15 (MBIA Insured)	1,000,000	1,072,140
5% 5/1/16 (MBIA Insured)	1,000,000	1,073,540
Utica Cmnty. Schools:
5% 5/1/15 (MBIA Insured)	1,000,000	1,075,260
5% 5/1/16 (MBIA Insured)	2,000,000	2,154,060
5% 5/1/17	3,000,000	3,152,790
5.375% 5/1/16 (Pre-Refunded to 5/1/13 @ 100) (d)	2,250,000	2,437,875
5.5% 5/1/17 (Pre-Refunded to 5/1/13 @ 100) (d)	1,000,000	1,089,010
Waverly Cmnty. School District 5% 5/1/17 (FSA Insured)	3,090,000	3,289,954
Wayne Charter County Gen. Oblig. Series 2001 A, 5.5% 12/1/17 (MBIA Insured)	1,000,000	1,056,740
West Ottawa Pub. School District 5.25% 5/1/10 (FGIC Insured)	210,000	211,695
Western Michigan Univ. Rev.:
5% 11/15/32 (FSA Insured)	2,000,000	2,034,180
5% 11/15/35 (FGIC Insured)	5,435,000	5,331,355
Whitehall District Schools 5.5% 5/1/15 (Pre-Refunded to 11/1/11 @ 100) (d)	1,000,000	1,073,970
Williamston Cmnty. Schools Gen. Oblig. 5% 5/1/18 (FGIC Insured)	1,000,000	1,041,580
Municipal Bonds - continued
	Principal Amount	Value
Michigan - continued
Willow Run Cmnty. Schools County of Washtenaw:
5% 5/1/17 (FSA Insured)	$ 1,875,000	$ 1,996,331
5.5% 5/1/16 (Pre-Refunded to 5/1/11 @ 100) (d)	1,630,000	1,733,244
Wyandotte City School District 5.375% 5/1/20 (Pre-Refunded to 5/1/12 @ 100) (d)	1,050,000	1,125,737
Wyandotte Elec. Rev.:
5.375% 10/1/14 (MBIA Insured)	3,485,000	3,537,763
5.375% 10/1/15 (MBIA Insured)	1,670,000	1,694,699
Wyoming Sewage Disp. Sys. Rev. 5% 6/1/30 (MBIA Insured)	4,000,000	3,989,280
Zeeland Pub. Schools:
5% 5/1/16 (FGIC Insured)	2,035,000	2,112,289
5% 5/1/17 (FGIC Insured)	1,500,000	1,546,245
5.25% 5/1/16 (MBIA Insured)	1,050,000	1,115,321
		596,233,938
Puerto Rico - 2.1%
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev.:
Series CC, 5.25% 7/1/36 (FSA Insured)	5,000,000	5,272,900
Series Z, 6.25% 7/1/15 (MBIA Insured)	1,280,000	1,430,221
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev. Series L, 5.25% 7/1/41 (CIFG North America Insured)	2,450,000	2,335,757
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series QQ, 5.5% 7/1/18 (XL Cap. Assurance, Inc. Insured)	1,000,000	1,054,240
Puerto Rico Pub. Bldg. Auth. Rev. Series M2, 5.75%, tender 7/1/17 (b)	2,000,000	2,069,500
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev. Series A:
0% 8/1/41 (FGIC Insured)	3,400,000	467,398
0% 8/1/54 (AMBAC Insured)	3,400,000	232,254
		12,862,270
Municipal Bonds - continued
	Principal Amount	Value
Virgin Islands - 0.6%
Virgin Islands Pub. Fin. Auth. Refinery Facilities Rev. 4.7% 7/1/22 (c)	$ 1,400,000	$ 1,193,458
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys. Rev. Series A, 5% 7/1/31	2,730,000	2,563,252
		3,756,710

TOTAL INVESTMENT PORTFOLIO - 99.7% (Cost $614,205,892)		614,516,437
NET OTHER ASSETS - 0.3%		1,765,644
NET ASSETS - 100%	$ 616,282,081

Security Type Abbreviation

ARS - Auction Rate Security

Legend

(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

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

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

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

Other Information

The following is a summary of the inputs used, as of June 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description	Total	Level 1	Level 2	Level 3
Investments in Securities	$ 614,516,437	$ -	$ 605,216,437	$ 9,300,000

The following is a reconciliation of assets for which Level 3 inputs were used in determining value:

	Investments in Securities
Beginning Balance	$ -
Total Realized Gain (Loss)	-
Total Unrealized Gain (Loss)	(809,964)
Cost of Purchases	-
Proceeds of Sales	-
Amortization/Accretion	(9,136)
Transfer in/out of Level 3	10,119,100
Ending Balance	$ 9,300,000

The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period.

Other Information

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

General Obligations	42.2%
Water & Sewer	17.2%
Escrowed/Pre-Refunded	15.7%
Special Tax	7.2%
Health Care	6.9%
Others* (individually less than 5%)	10.8%
	100.0%

*Includes net other assets

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

Semiannual Report

Fidelity Michigan Municipal Income Fund

Financial Statements

Statement of Assets and Liabilities

	June 30, 2008 (Unaudited)
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $614,205,892)		$ 614,516,437
Cash		8,141,857
Receivable for investments sold		816,623
Receivable for fund shares sold		1,099,213
Interest receivable		7,022,389
Prepaid expenses		822
Other receivables		51,667
Total assets		631,649,008
Liabilities
Payable for investments purchased on a delayed delivery basis	$ 13,515,144
Payable for fund shares redeemed	588,312
Distributions payable	781,813
Accrued management fee	187,900
Other affiliated payables	266,352
Other payables and accrued expenses	27,406
Total liabilities		15,366,927
Net Assets		$ 616,282,081
Net Assets consist of:
Paid in capital		$ 615,671,814
Undistributed net investment income		66,083
Accumulated undistributed net realized gain (loss) on investments		233,639
Net unrealized appreciation (depreciation) on investments		310,545
Net Assets, for 53,513,775 shares outstanding		$ 616,282,081
Net Asset Value, offering price and redemption price per share ($616,282,081 ÷ 53,513,775 shares)		$ 11.52

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

Semiannual Report

Fidelity Michigan Municipal Income Fund
Financial Statements - continued

Statement of Operations

Six months ended June 30, 2008 (Unaudited)
Investment Income
Interest		$ 13,184,618
Expenses
Management fee	$ 1,112,402
Transfer agent fees	245,714
Accounting fees and expenses	73,310
Custodian fees and expenses	4,554
Independent trustees' compensation	1,345
Registration fees	17,253
Audit	21,677
Legal	5,121
Miscellaneous	2,328
Total expenses before reductions	1,483,704
Expense reductions	(88,104)	1,395,600
Net investment income		11,789,018
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers		390,351
Change in net unrealized appreciation (depreciation) on investment securities		(13,027,940)
Net gain (loss)		(12,637,589)
Net increase (decrease) in net assets resulting from operations		$ (848,571)

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

Semiannual Report

Statement of Changes in Net Assets

	Six months ended June 30, 2008 (Unaudited)	Year ended December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 11,789,018	$ 22,771,257
Net realized gain (loss)	390,351	1,485,051
Change in net unrealized appreciation (depreciation)	(13,027,940)	(3,027,107)
Net increase (decrease) in net assets resulting from operations	(848,571)	21,229,201
Distributions to shareholders from net investment income	(11,782,325)	(22,800,828)
Distributions to shareholders from net realized gain	(255,599)	(1,393,611)
Total distributions	(12,037,924)	(24,194,439)
Share transactions Proceeds from sales of shares	70,989,753	102,946,687
Reinvestment of distributions	7,255,379	15,136,531
Cost of shares redeemed	(41,711,164)	(94,359,092)
Net increase (decrease) in net assets resulting from share transactions	36,533,968	23,724,126
Redemption fees	2,015	4,623
Total increase (decrease) in net assets	23,649,488	20,763,511
Net Assets
Beginning of period	592,632,593	571,869,082
End of period (including undistributed net investment income of $66,083 and undistributed net investment income of $59,390, respectively)	$ 616,282,081	$ 592,632,593
Other Information Shares
Sold	6,048,709	8,786,044
Issued in reinvestment of distributions	623,094	1,291,798
Redeemed	(3,559,545)	(8,071,215)
Net increase (decrease)	3,112,258	2,006,627

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

Semiannual Report

Financial Highlights

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 11.76	$ 11.82	$ 11.84	$ 12.11	$ 12.22	$ 12.04
Income from Investment Operations
Net investment income D	.227	.461	.469	.472	.491	.513
Net realized and unrealized gain (loss)	(.235)	(.031)	.041	(.155)	(.026)	.180
Total from investment operations	(.008)	.430	.510	.317	.465	.693
Distributions from net investment income	(.227)	(.462)	(.470)	(.472)	(.490)	(.513)
Distributions from net realized gain	(.005)	(.028)	(.060)	(.115)	(.085)	-
Total distributions	(.232)	(.490)	(.530)	(.587)	(.575)	(.513)
Redemption fees added to paid in capital D, F	-	-	-	-	-	-
Net asset value, end of period	$ 11.52	$ 11.76	$ 11.82	$ 11.84	$ 12.11	$ 12.22
Total Return B, C	(.08)%	3.73%	4.41%	2.67%	3.90%	5.87%
Ratios to Average Net Assets E
Expenses before reductions	.49% A	.49%	.49%	.49%	.50%	.50%
Expenses net of fee waivers, if any	.49%A	.49%	.49%	.49%	.50%	.50%
Expenses net of all reductions	.46%A	.44%	.44%	.45%	.48%	.49%
Net investment income	3.89%A	3.94%	3.98%	3.94%	4.05%	4.22%
Supplemental Data
Net assets, end of period (000 omitted)	$ 616,282	$ 592,633	$ 571,869	$ 565,484	$ 559,883	$ 561,394
Portfolio turnover rate	13%A	15%	17%	23%	12%	23%

^A Annualized

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

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

^D Calculated based on average shares outstanding during the period.

^E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

^F Amount represents less than $.001 per share.

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

Semiannual Report

Fidelity Michigan Municipal Money Market Fund

Investment Changes (Unaudited)

Maturity Diversification
Days	% of fund's investments 6/30/08	% of fund's investments 12/31/07	% of fund's investments 6/30/07
0 - 30	91.0	91.0	91.2
31 - 90	4.1	0.2	4.1
91 - 180	3.5	2.8	2.5
181 - 397	1.4	6.0	2.2
Weighted Average Maturity
	6/30/08	12/31/07	6/30/07
Fidelity Michigan Municipal Money Market Fund	16 Days	25 Days	18 Days
All Tax-Free Money Market Funds Average*	27 Days	30 Days	24 Days

Asset Allocation (% of fund's net assets)
As of June 30, 2008		As of December 31, 2007
	Variable Rate Demand Notes (VRDNs) 82.9%		Variable Rate Demand Notes (VRDNs) 85.5%
	Commercial Paper (including CP Mode) 1.9%		Commercial Paper (including CP Mode) 0.7%
	Tender Bonds 0.0%		Tender Bonds 0.1%
	Municipal Notes 5.3%		Municipal Notes 3.5%
	Fidelity Municipal Cash Central Fund 2.7%		Fidelity Municipal Cash Central Fund 0.0%
	Other Investments 2.7%		Other Investments 4.8%
	Net Other Assets 4.5%		Net Other Assets 5.4%

*Source: iMoneyNet, Inc.

Semiannual Report

Fidelity Michigan Municipal Money Market Fund

Investments June 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Municipal Securities - 95.5%
	Principal Amount		Value
Florida - 0.2%
Orlando Utils. Commission Wtr. & Elec. Rev. Series 2002 B, 1.52%, VRDN (a)	$ 2,100,000		$ 2,100,000
Indiana - 0.1%
Marion Econ. Dev. Rev. (Indiana Wesleyan Univ. Proj.) 1.55%, LOC Bank of America NA, VRDN (a)	1,100,000		1,100,000
Maryland - 0.5%
Maryland Cmnty. Dev. Administration Dept. of Hsg. Participating VRDN Series LB 07 P26W, 1.95% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(b)(d)	5,400,000		5,400,000
Massachusetts - 0.9%
Massachusetts Gen. Oblig. Participating VRDN Series LB P62 W, 1.7% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(d)	10,430,000		10,430,000
Michigan - 88.4%
Charlotte Hosp. Fin. Auth. Ltd. Oblig. Rev. (Hayes Green Beach Proj.) 1.6%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	13,675,000		13,675,000
Clarkston Cmnty. Schools Bonds 5% 5/1/09 (FSA Insured) (Michigan Gen. Oblig. Guaranteed)	3,470,000		3,555,944
Detroit City School District Participating VRDN:
Series DCL 08 45, 1.6% (Liquidity Facility Dexia Cr. Local de France) (a)(d)	11,050,000		11,050,000
Series Putters 2954, 1.63% (Liquidity Facility JPMorgan Chase Bank) (a)(d)	10,360,000		10,360,000
Detroit Econ. Dev. Corp. Rev.:
(Michigan Opera Theatre Proj.) 1.8%, LOC JPMorgan Chase Bank, VRDN (a)	2,100,000		2,100,000
(Waterfront Reclamation & Casino Dev. Proj.) Series 1999 B, 1.55%, LOC Bank of America NA, VRDN (a)	1,070,000		1,070,000
Detroit Gen. Oblig. TAN 3.5% 3/31/09, LOC JPMorgan Chase Bank	11,100,000		11,239,128
Detroit Swr. Disp. Rev.:
Bonds Series C, 5% 7/1/08 (MBIA Insured)	1,015,000		1,015,000
Participating VRDN:
Series EGL 06 127, 1.61% (Liquidity Facility Citibank NA) (a)(d)	6,700,000		6,700,000
Series GS 06 100 TP, 1.58% (Liquidity Facility DEPFA BANK PLC) (a)(d)	10,685		10,685
Series Merlots 08 C09, 1.61% (Liquidity Facility Wachovia Bank NA Charlotte ) (a)(d)	11,100,000		11,100,000
Series PT 2595, 1.56% (Liquidity Facility Dexia Cr. Local de France) (a)(d)	5,960,000		5,960,000
Series 2001 C1, 1.8% (FSA Insured), VRDN (a)	19,250,000		19,250,000
Municipal Securities - continued
	Principal Amount		Value
Michigan - continued
Detroit Swr. Disp. Rev.: - continued
Series B, 1.85% (FSA Insured), VRDN (a)	$ 11,600,000		$ 11,600,000
Detroit Wtr. Supply Sys. Participating VRDN Series LB 07 P25W, 1.77% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(d)	3,800,000		3,800,000
Detroit Wtr. Supply Sys. Rev. Participating VRDN:
Series LB 08 K21W, 1.97% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(d)	2,800,000		2,800,000
Series PT 2587, 1.56% (Liquidity Facility Dexia Cr. Local de France) (a)(d)	6,420,000		6,420,000
Series PT 3903, 1.56% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d)	5,000,000		5,000,000
Series Putters 2145, 1.63% (Liquidity Facility JPMorgan Chase Bank) (a)(d)	1,000,000		1,000,000
Series Putters 2813, 1.63% (Liquidity Facility JPMorgan Chase & Co.) (a)(d)	13,715,000		13,715,000
Series ROC II R 11172, 1.6% (Liquidity Facility Citibank NA) (a)(d)	5,000		5,000
East Lansing School District Gen. Oblig. Participating VRDN Series SGA 114, 1.55% (Liquidity Facility Societe Generale) (a)(d)	6,000,000		6,000,000
Eastern Michigan Univ. Revs. 1.55%, LOC Dexia Cr. Local de France, VRDN (a)	19,395,000		19,395,000
Fraser Pub. School District Participating VRDN Series AAB 05 39, 1.6% tender 12/6/08 (Liquidity Facility Bank of America NA) (a)(d)	1,515,000		1,515,000
Grand Rapids San. Swr. Sys. Rev. Participating VRDN Series ROC II R 12147, 1.62% (Liquidity Facility Landesbank Hessen-Thuringen) (a)(d)	6,500,000		6,500,000
Grand Valley Michigan State Univ. Rev. Series 2008 B, 1.48%, LOC RBS Citizens NA, VRDN (a)	7,300,000		7,300,000
Holland Charter Township Econ. Dev. Corp. Rev. (Chicago Mission Proj.) 1.62%, LOC Comerica Bank, Detroit, VRDN (a)	2,130,000		2,130,000
Holt Pub. Schools 1.8% (Michigan Gen. Oblig. Guaranteed), VRDN (a)	22,095,000		22,095,000
Jackson County Hosp. Fin. Auth. Hosp. Rev.:
(W.A. Foote Memorial Hosp. Proj.):
Series 2006 A, 1.57% (Assured Guaranty Corp. Insured), VRDN (a)	10,000,000		10,000,000
Series 2006 C, 1.59% (Assured Guaranty Corp. Insured), VRDN (a)	10,000,000		10,000,000
(Washington Foote Memorial Hosp. Proj.) Series B, 1.57% (Assured Guaranty Corp. Insured), VRDN (a)	13,900,000		13,900,000
Municipal Securities - continued
	Principal Amount		Value
Michigan - continued
Kalamazoo Gen. Oblig. TAN 3.5% 12/1/08	$ 6,000,000		$ 6,016,167
Kent County Arpt. Rev. Participating VRDN Series DB 516, 1.58% (Liquidity Facility Deutsche Bank AG) (a)(d)	2,365,000		2,365,000
Kent Hosp. Fin. Auth. Hosp. Facilities Rev. (Spectrum Health Sys. Proj.) Series 2008 B1, 1.53%, LOC RBS Citizens NA, VRDN (a)	10,000,000		10,000,000
L'Anse Creuse Pub. Schools Participating VRDN:
Series Putters 2719, 1.63% (Liquidity Facility JPMorgan Chase & Co.) (a)(d)	5,230,000		5,230,000
Series ROC II R 12177, 1.61% (Liquidity Facility Bank of New York, New York) (a)(d)	3,750,000		3,750,000
Lakeview School District Calhoun County Series B, 1.8% (Michigan Gen. Oblig. Guaranteed), VRDN (a)	10,135,000		10,135,000
Michigan Bldg. Auth. Rev.:
Bonds (Facilities Prog.) Series I, 5% 10/15/08 (FSA Insured)	6,150,000		6,188,887
Participating VRDN Series EGL 06 156, 1.61% (Liquidity Facility Citibank NA) (a)(d)	7,000,000		7,000,000
(Facilities Prog.) Series 2005 IIA, 1.52%, LOC DEPFA BANK PLC, VRDN (a)	17,195,000		17,195,000
Series 5, 1.7% 8/7/08, LOC Bank of New York, New York, LOC State Street Bank & Trust Co., Boston, CP	11,825,000		11,825,000
Series I, 1.52%, LOC JPMorgan Chase Bank, VRDN (a)	25,500,000		25,500,000
Michigan Ctfs. of Prtn. Bonds 5.25% 9/1/08 (Escrowed to Maturity) (c)	5,160,000		5,175,633
Michigan Gen. Oblig.:
Bonds (Clean Michigan Initiative Prog.) Series 2001, 5% 11/1/08	3,820,000		3,842,505
RAN Series A, 4% 9/30/08, LOC DEPFA BANK PLC	10,100,000		10,126,219
Michigan Higher Ed. Rev. (Thomas M. Cooley Law School Proj.) Series 2008 B, 1.47%, LOC RBS Citizens NA, VRDN (a)	18,000,000		18,000,000
Michigan Hosp. Fin. Auth. Rev.:
(Ascension Health Cr. Group Proj.):
Series 2008 B4, 1.49%, VRDN (a)	10,500,000		10,500,000
Series 2008 B8, 1.49%, VRDN (a)	13,600,000		13,600,000
(Ascension Health Sr. Cr. Group Proj.):
Series 2008 B2, 1.49%, VRDN (a)	8,825,000		8,825,000
Series 2008 B3, 1.35%, VRDN (a)	11,000,000		11,000,000
Series 2008 B5, 1.35%, VRDN (a)	4,400,000		4,400,000
Series 2008 B7, 1.35%, VRDN (a)	11,200,000		11,200,000
(Health Care Equip. Ln. Prog.) Series C, 1.61%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	7,500,000		7,500,000
Municipal Securities - continued
	Principal Amount		Value
Michigan - continued
Michigan Hosp. Fin. Auth. Rev.: - continued
(Healthcare Equip. Ln. Prog.) Series 2008 C, 1.61%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	$ 7,500,000		$ 7,500,000
(Henry Ford Health Sys. Proj.):
Series 2006 C, 1.54%, LOC Charter One Bank NA, VRDN (a)	11,390,000		11,390,000
Series 2007, 1.54%, LOC JPMorgan Chase Bank, VRDN (a)	2,000,000		2,000,000
Series B, 1.54%, LOC Landesbank Hessen-Thuringen, VRDN (a)	8,330,000		8,330,000
(Hosp. Equip. Ln. Prog.) Series B, 1.64%, LOC LaSalle Bank Midwest NA, VRDN (a)	3,600,000		3,600,000
(Munising Memorial Hosp. Assoc. Proj.) 1.6%, LOC Banco Santander SA, VRDN (a)	7,800,000		7,800,000
(Trinity Health Sys. Proj.):
Series E, 1.7% (Liquidity Facility Bank of Nova Scotia, New York Agcy.), VRDN (a)	4,350,000		4,350,000
Series F, 2.1% (Liquidity Facility Bank of America NA), VRDN (a)	21,790,000		21,790,000
Michigan Hsg. Dev. Auth. Multi-family Hsg. Rev.:
Bonds Series 1988 A:
1.7% tender 8/6/08, LOC Landesbank Hessen-Thuringen, CP mode (b)	1,700,000		1,700,000
1.8% tender 8/4/08, LOC Landesbank Hessen-Thuringen, CP mode (b)	7,300,000		7,300,000
(Canton Club East Apts. Proj.) Series 1998 A, 1.45%, LOC Fannie Mae, VRDN (a)(b)	1,135,000		1,135,000
(Hunt Club Apts. Proj.) 1.65%, LOC Fannie Mae, VRDN (a)(b)	6,720,000		6,720,000
Michigan Hsg. Dev. Auth. Rental Hsg. Rev.:
Series 2005 A, 1.65% (FSA Insured), VRDN (a)(b)	22,100,000		22,100,000
Series 2006 A, 2.85% (FSA Insured), VRDN (a)(b)	11,710,000		11,710,000
Series 2006 C, 2.85% (FSA Insured), VRDN (a)(b)	980,000		980,000
Series 2007 A, 2.85% (FSA Insured), VRDN (a)(b)	12,500,000		12,500,000
Michigan Hsg. Dev. Auth. Single Family Mtg. Rev.:
Series 2006 B, 1.75% (Liquidity Facility DEPFA BANK PLC), VRDN (a)(b)	7,200,000		7,200,000
Series 2006 C, 1.6% (Liquidity Facility DEPFA BANK PLC), VRDN (a)	13,050,000		13,050,000
Series 2007 B, 1.75% (Liquidity Facility DEPFA BANK PLC), VRDN (a)(b)	11,600,000		11,600,000
Municipal Securities - continued
	Principal Amount		Value
Michigan - continued
Michigan Muni. Bond Auth. Rev.:
Participating VRDN:
Series MS 718, 1.55% (Liquidity Facility Morgan Stanley) (a)(d)	$ 2,550,000		$ 2,550,000
Series ROC II R 8510, 1.55% (Liquidity Facility Citigroup, Inc.) (a)(d)	7,795,000		7,795,000
RAN Series B2, 4.5% 8/20/08, LOC Bank of Nova Scotia, New York Agcy.	14,000,000		14,027,379
Michigan Pub. Edl. Facilities Auth. Rev. RAN Series B, 4.5% 8/22/08, LOC Bank of New York, New York	3,945,000		3,949,485
Michigan South Central Pwr. Agcy. Supply Sys. Rev. Bonds 5% 11/1/08 (AMBAC Insured)	7,895,000		7,936,258
Michigan State Univ. Revs.:
Series 1998 A2, 1.5% (Liquidity Facility DEPFA BANK PLC), VRDN (a)	7,000,000		7,000,000
Series 2000 A:
1.6% (Liquidity Facility DEPFA BANK PLC), VRDN (a)	9,545,000		9,545,000
1.6% (Liquidity Facility DEPFA BANK PLC), VRDN (a)	14,310,000		14,310,000
Series 2002 A, 1.85% (Liquidity Facility DEPFA BANK PLC), VRDN (a)	2,000,000		2,000,000
1.7% (Liquidity Facility Landesbank Hessen-Thuringen), VRDN (a)	7,500,000		7,500,000
Michigan Strategic Fund Indl. Dev. Rev. (Althaus Family Investors II Proj.) Series 1997, 1.9%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)	1,325,000		1,325,000
Michigan Strategic Fund Ltd. Oblig. Rev.:
(Almond Products, Inc. Proj.) 1.7%, LOC LaSalle Bank Midwest NA, VRDN (a)(b)	7,900,000		7,900,000
(BC&C Proj.) 1.72%, LOC Comerica Bank, Detroit, VRDN (a)(b)	1,250,000		1,250,000
(Biewer of Lansing LLC Proj.) Series 1999, 1.76%, LOC LaSalle Bank Midwest NA, VRDN (a)(b)	400,000		400,000
(Bosal Ind. Proj.) Series 1998, 1.65%, LOC JPMorgan Chase Bank, VRDN (a)(b)	7,500,000		7,500,000
(CJS Properties LLC Proj.) 2.55%, LOC JPMorgan Chase Bank, VRDN (a)(b)	1,300,000		1,300,000
(Consumers Energy Co. Proj.):
1.47%, LOC Wells Fargo Bank NA, VRDN (a)	5,700,000		5,700,000
1.5%, LOC Wells Fargo Bank NA, VRDN (a)(b)	6,000,000		6,000,000
(Conti Properties LLC Proj.) Series 1997, 1.82%, LOC Comerica Bank, Detroit, VRDN (a)(b)	2,020,000		2,020,000
(Detroit Edison Co. Proj.):
Series 2008 DT, 1.65%, LOC KeyBank NA, VRDN (a)(b)	11,400,000		11,400,000
Municipal Securities - continued
	Principal Amount		Value
Michigan - continued
Michigan Strategic Fund Ltd. Oblig. Rev.: - continued
Series 2008 ET, 1.55%, LOC Bank of Nova Scotia, VRDN (a)	$ 11,100,000		$ 11,100,000
(Detroit Symphony Orchestra, Inc. Proj.) Series 2001 B, 1.7%, LOC LaSalle Bank Midwest NA, VRDN (a)	1,100,000		1,100,000
(Doss Ind. Dev. Co. Proj.) 3.05%, LOC JPMorgan Chase Bank, VRDN (a)(b)	700,000		700,000
(Dow Chemical Co. Proj.):
Series 2003 B1, 2%, VRDN (a)	5,400,000		5,400,000
Series 2003 B2, 2%, VRDN (a)	5,400,000		5,400,000
(Fintex LLC Proj.) Series 2000, 1.72%, LOC Comerica Bank, Detroit, VRDN (a)(b)	1,065,000		1,065,000
(Future Fence Co. Proj.) 1.72%, LOC Comerica Bank, Detroit, VRDN (a)(b)	2,100,000		2,100,000
(Grand Rapids Art Museum Proj.) 1.55%, LOC LaSalle Bank Midwest NA, VRDN (a)	12,000,000		12,000,000
(Holland Home Oblig. Group Proj.) 1.8%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)	1,000,000		1,000,000
(Holland Plastics Corp. Proj.) 1.75%, LOC LaSalle Bank NA, VRDN (a)(b)	3,360,000		3,360,000
(John H. Dekker & Sons Proj.) Series 1998, 2.08%, LOC LaSalle Bank Midwest NA, VRDN (a)(b)	745,000		745,000
(K&M Engineering, Inc. Proj.) 1.72%, LOC Comerica Bank, Detroit, VRDN (a)(b)	1,150,000		1,150,000
(LPB LLC Proj.) 2.65%, LOC Comerica Bank, Detroit, VRDN (a)(b)	1,700,000		1,700,000
(Majestic Ind., Inc. Proj.) 1.72%, LOC Comerica Bank, Detroit, VRDN (a)(b)	1,515,000		1,515,000
(Mid-American Products, Inc. Proj.) Series 1998 1.75%, LOC Comerica Bank, Detroit, VRDN (a)(b)	970,000		970,000
(PBL Enterprises, Inc. Proj.) Series 1997, 1.72%, LOC Comerica Bank, Detroit, VRDN (a)(b)	1,315,000		1,315,000
(Pioneer Laboratories, Inc. Proj.) 2.05%, LOC JPMorgan Chase Bank, VRDN (a)(b)	2,500,000		2,500,000
(S&S LLC Proj.) Series 2000, 1.91%, LOC LaSalle Bank Midwest NA, VRDN (a)(b)	1,505,000		1,505,000
(SBC Ventures LLC Proj.) 1.72%, LOC Comerica Bank, Detroit, VRDN (a)(b)	3,705,000		3,705,000
(TEI Invts. LLC Proj.) Series 1997, 1.72%, LOC Comerica Bank, Detroit, VRDN (a)(b)	400,000		400,000
(The Spiratex Co. Proj.) Series 1994, 3.05%, LOC JPMorgan Chase Bank, VRDN (a)(b)	400,000		400,000
Municipal Securities - continued
	Principal Amount		Value
Michigan - continued
Michigan Strategic Fund Ltd. Oblig. Rev.: - continued
(Trilan LLC Proj.) 2.55%, LOC JPMorgan Chase Bank, VRDN (a)(b)	$ 2,200,000		$ 2,200,000
(Van Andel Research Institute Proj.) 1.3%, LOC Bank of America NA, VRDN (a)	16,600,000		16,600,000
(W.H. Porter, Inc. Proj.) Series 2001, 1.8%, LOC LaSalle Bank Midwest NA, VRDN (a)(b)	2,405,000		2,405,000
(Windcrest Properties LLC Proj.) 1.83%, LOC Comerica Bank, Detroit, VRDN (a)(b)	3,200,000		3,200,000
(YMCA Metropolitan Detroit Proj.) Series 2001, 1.6%, LOC JPMorgan Chase Bank, VRDN (a)	11,760,000		11,760,000
(YMCA Metropolitan Lansing Proj.) 1.55%, LOC LaSalle Bank Midwest NA, VRDN (a)	4,675,000		4,675,000
Michigan Strategic Fund Rev. (Rest Haven Christian Services Proj.) Series A, 1.54%, LOC KBC Bank NV, VRDN (a)	3,025,000		3,025,000
Michigan Strategic Fund Solid Waste Disp. Rev. (Grayling Gen. Station Proj.) Series 1990, 1.55%, LOC Barclays Bank PLC, VRDN (a)(b)	16,208,000		16,208,000
Oakland County Econ. Dev. Corp. Ltd. Oblig. Rev.:
(Osmic, Inc. Proj.) Series 2001 A, 2.05%, LOC JPMorgan Chase Bank, VRDN (a)(b)	6,300,000		6,300,000
(Progressive Metal Manufacturing Co. Proj.) 1.72%, LOC Comerica Bank, Detroit, VRDN (a)(b)	3,500,000		3,500,000
Oakland Univ. Rev. 1.55%, LOC Allied Irish Banks PLC, VRDN (a)	10,000,000		10,000,000
Saline Area Schools 1.8% (Michigan Gen. Oblig. Guaranteed), VRDN (a)	40,600,000		40,600,001
Sanilac County Econ. Dev. Corp. (Marlette Cmnty. Hosp. Proj.) Series 2001, 1.6%, LOC Comerica Bank, Detroit, VRDN (a)	11,185,000		11,185,000
Waterford Econ. Dev. Corp. Ltd. Oblig. Rev. (Canterbury Health Care, Inc. Proj.) 1.6%, LOC KBC Bank NV, VRDN (a)	6,400,000		6,400,000
Wayne County Arpt. Auth. Rev.:
Bonds 4% 12/1/08 (Assured Guaranty Corp. Insured) (b)	2,355,000		2,367,051
Participating VRDN:
Series EGL 07 0083, 1.67% (Liquidity Facility Bayerische Landesbank) (a)(b)(d)	16,820,000		16,820,000
Series MT 115, 1.6% (Liquidity Facility Svenska Handelsbanken AB) (a)(b)(d)	4,495,000		4,495,000
(Detroit Metropolitan Wayne County Arpt. Proj.) Series 2008 B, 1.7%, LOC Landesbank Baden-Wuert, VRDN (a)(b)	11,100,000		11,100,000
Wayne State Univ. Revs. Participating VRDN Series Putters 2664, 1.63% (Liquidity Facility JPMorgan Chase Bank) (a)(d)	3,580,000		3,580,000
Municipal Securities - continued
	Principal Amount		Value
Michigan - continued
Western Michigan Univ. Rev. Participating VRDN Series Floaters 2631, 1.65% (Liquidity Facility Morgan Stanley) (a)(d)	$ 11,005,000		$ 11,005,000
Zeeland Hosp. Fin. Auth. Rev. (Zeeland Cmnty. Hosp. Proj.) 2%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)	14,935,000		14,935,000
			995,288,342
Pennsylvania - 0.2%
Harrisburg Auth. Wtr. Rev. Series 2002 B, 1.7% (FSA Insured), VRDN (a)	2,000,000		2,000,000
Puerto Rico - 2.2%
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. Participating VRDN Series BA 07 325, 1.56% (Liquidity Facility Bank of America NA) (a)(d)	3,500,000		3,500,000
Puerto Rico Commonwealth Pub. Impt. Gen. Oblig. TRAN 4.25% 7/30/08, LOC Bank of Nova Scotia, New York Agcy., LOC BNP Paribas SA	14,100,000		14,109,305
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Participating VRDN Series PA 778R, 1.55% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d)	6,890,000		6,890,000
			24,499,305
Tennessee - 0.1%
Nashville and Davidson County Metropolitan Govt. Health & Edl. Facilities Board Rev. (Belmont Univ. Proj.) 1.5%, LOC SunTrust Banks, Inc., VRDN (a)	1,100,000		1,100,000
Texas - 0.2%
Brazos River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series 2001 D2, 1.78%, LOC Citibank NA, VRDN (a)(b)	1,800,000		1,800,000
Other - 2.7%
Fidelity Municipal Cash Central Fund, 1.68% (e)(f)	31,024,000		31,024,000
TOTAL INVESTMENT PORTFOLIO - 95.5% (Cost $1,074,741,647)			1,074,741,647
NET OTHER ASSETS - 4.5%			50,439,165
NET ASSETS - 100%		$ 1,125,180,812

Security Type Abbreviations

CP - COMMERCIAL PAPER

RAN - REVENUE ANTICIPATION NOTE

TAN - TAX ANTICIPATION NOTE

TRAN - TAX AND REVENUE
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.

(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

(f) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Municipal Cash Central Fund	$ 58,543

Other Information

The following is a summary of the inputs used, as of June 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description	Total	Level 1	Level 2	Level 3
Investments in Securities	$ 1,074,741,647	$ 31,024,000	$ 1,043,717,647	$ -

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, 2008 (Unaudited)
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,043,717,647)	$ 1,043,717,647
Fidelity Central Funds (cost $31,024,000)	31,024,000
Total Investments (cost $1,074,741,647)		$ 1,074,741,647
Cash		252,296
Receivable for investments sold		41,393,933
Receivable for fund shares sold		18,462,725
Interest receivable		4,135,266
Distributions receivable from Fidelity Central Funds		18,422
Prepaid expenses		1,317
Other receivables		389,273
Total assets		1,139,394,879
Liabilities
Payable for investments purchased	$ 5,191,081
Payable for fund shares redeemed	7,918,033
Distributions payable	14,456
Accrued management fee	338,626
Other affiliated payables	726,851
Other payables and accrued expenses	25,020
Total liabilities		14,214,067
Net Assets		$ 1,125,180,812
Net Assets consist of:
Paid in capital		$ 1,124,839,715
Undistributed net investment income		58,719
Accumulated undistributed net realized gain (loss) on investments		282,378
Net Assets, for 1,124,248,970 shares outstanding		$ 1,125,180,812
Net Asset Value, offering price and redemption price per share ($1,125,180,812 ÷ 1,124,248,970 shares)		$ 1.00

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

Semiannual Report

Statement of Operations

Six months ended June 30, 2008 (Unaudited)
Investment Income
Interest		$ 12,766,738
Income from Fidelity Central Funds		58,453
Total income		12,825,191
Expenses
Management fee	$ 2,041,560
Transfer agent fees	815,808
Accounting fees and expenses	63,176
Custodian fees and expenses	9,461
Independent trustees' compensation	2,413
Registration fees	23,838
Audit	14,964
Legal	9,397
Miscellaneous	2,662
Total expenses before reductions	2,983,279
Expense reductions	(477,543)	2,505,736
Net investment income		10,319,455
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers		282,378
Net increase in net assets resulting from operations		$ 10,601,833

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, 2008 (Unaudited)	Year ended December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 10,319,455	$ 28,904,681
Net realized gain (loss)	282,378	105,213
Net increase in net assets resulting from operations	10,601,833	29,009,894
Distributions to shareholders from net investment income	(10,314,269)	(28,906,419)
Distributions to shareholders from net realized gain	-	(39,512)
Total distributions	(10,314,269)	(28,945,931)
Share transactions at net asset value of $1.00 per share Proceeds from sales of shares	1,599,543,473	3,036,262,486
Reinvestment of distributions	10,125,933	28,533,462
Cost of shares redeemed	(1,572,363,655)	(2,842,235,428)
Net increase (decrease) in net assets and shares resulting from share transactions	37,305,751	222,560,520
Total increase (decrease) in net assets	37,593,315	222,624,483
Net Assets
Beginning of period	1,087,587,497	864,963,014
End of period (including undistributed net investment income of $58,719 and undistributed net investment income of $53,533, respectively)	$ 1,125,180,812	$ 1,087,587,497

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

Semiannual Report

Financial Highlights

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Income from Investment Operations
Net investment income	.009	.032	.030	.020	.007	.006
Net realized and unrealized gain (loss) F	-	-	-	-	-	-
Total from investment operations	.009	.032	.030	.020	.007	.006
Distributions from net investment income	(.009)	(.032)	(.030)	(.020)	(.007)	(.006)
Distributions from net realized gain	-	- F	-	- F	-	-
Total distributions	(.009)	(.032)	(.030)	(.020)	(.007)	(.006)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return B, C	.93%	3.21%	3.01%	1.99%	.73%	.63%
Ratios to Average Net Assets D, E
Expenses before reductions	.54% A	.54%	.56%	.56%	.57%	.56%
Expenses net of fee waivers, if any	.54% A	.54%	.55%	.55%	.57%	.56%
Expenses net of all reductions	.45% A	.42%	.41%	.46%	.55%	.55%
Net investment income	1.85% A	3.15%	2.97%	1.97%	.72%	.61%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,125,181	$ 1,087,587	$ 864,963	$ 695,051	$ 608,121	$ 588,292

^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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

^F Amount represents less than $.001 per share.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2008 (Unaudited)

1. Organization.

Fidelity Michigan Municipal Income Fund (the Income Fund) is a fund of Fidelity Municipal Trust. Fidelity Michigan Municipal Money Market Fund (the Money Market Fund) is a fund of Fidelity Municipal Trust II. Each trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Fidelity Municipal Trust and Fidelity Municipal Trust II (the trusts) are organized as a Massachusetts business trust and a Delaware statutory trust, respectively. The Income Fund is a non-diversified fund. Each Fund is authorized to issue an unlimited number of shares. Each Fund may be affected by economic and political developments in the state of Michigan.

2. Investments in Fidelity Central Funds.

The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds as an investment of each Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, each Fund uses independent pricing services approved by the Board of Trustees to value their investments.

For the Income Fund, debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Security Valuation - continued

services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value. Actual prices received at disposition may differ.

As permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities owned by the Money Market Fund are valued at amortized cost which approximates market value.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Funds are subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Funds' fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1	Quoted prices in active markets for identical securities.
Level 2	Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3	Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Semiannual Report

3. Significant Accounting Policies - continued

Security Valuation - continued

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

The aggregate value by input level, as of June 30, 2008, for each Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of each Fund's Schedule of Investments.

Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE) normally 4:00 pm Eastern time and includes trades executed through the end of the prior business day for the Income Fund and trades executed through the end of the current business day for the Money Market Fund. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Funds' federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations,

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

which may differ from generally accepted accounting principles. In addition, Certain Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to market discount, deferred trustees compensation and futures transactions.

The Funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.

The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows for each Fund:

	Cost for Federal Income Tax Purposes	Unrealized Appreciation	Unrealized Depreciation	Net Unrealized Appreciation/ (Depreciation)
Fidelity Michigan Municipal Income Fund	$ 614,168,678	$ 10,254,317	$ (9,906,558)	$ 347,759
Fidelity Michigan Municipal Money Market Fund	1,074,741,647	-	-	-

Short-Term Trading (Redemption) Fees. Shares held in the Income Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.

4. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. Certain Funds 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

Semiannual Report

4. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable Fund's Schedule of Investments. Certain Funds may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

5. Purchases and Sales of Investments.

Purchases and sales of securities other than short-term securities, for the Income Fund aggregated $74,823,403 and $39,492,544, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and a group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, each Fund's annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:

	Individual Rate	Group Rate	Total
Fidelity Michigan Municipal Income Fund	.25%	.12%	.37%
Fidelity Michigan Municipal Money Market Fund	.25%	.12%	.37%

Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, under which FIIOC performs the activities associated with the Fund's transfer, dividend disbursing and shareholder servicing agent functions. The Funds pay account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports,

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent and Accounting Fees - continued

except proxy statements. For the period, the transfer agent fees were equivalent to the following annualized rates expressed as a percentage of average net assets:

Fidelity Michigan Municipal Income Fund	.08%	|
Fidelity Michigan Municipal Money Market Fund	.15%

Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

7. Committed Line of Credit.

The Income Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro rata portion of the line of credit, which is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:

Fidelity Michigan Municipal Income Fund $ 584

During the period, there were no borrowings on this line of credit.

8. Expense Reductions.

Through arrangements with each applicable Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.

	Custody expense reduction	Transfer Agent expense reduction	Accounting expense reduction
Fidelity Michigan Municipal Income Fund	$ 4,554	$ 83,546	$ 4
Fidelity Michigan Municipal Money Market Fund	9,461	457,516	10,566

9. Other.

The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Michigan Municipal Income Fund / Fidelity Michigan Municipal Money Market Fund

Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its June 2008 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved agreements with foreign sub-advisers Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Japan) Inc., and Fidelity Management & Research (Hong Kong) Limited.

In considering whether to renew the Advisory Contracts for each fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contracts is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that each fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.

Semiannual Report

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' investment personnel and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for each fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of a fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fees on Fidelity's Institutional Money Market Funds and launching Class IV and Institutional Class of certain of these funds; (iii) reducing the transfer agent fees for the Fidelity Select Portfolios and Investor Class of the VIP funds; and (iv) launching Class K of 29 equity funds as a lower-fee class available to certain employer-sponsored retirement plans.

Investment Performance. The Board considered whether each fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance, as well as each fund's relative investment performance measured against (i) a broad-based securities market index (bond fund only, as money market funds are typically not compared against a market index), and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. For each fund, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2007, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark") (bond fund only), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.

Semiannual Report

Fidelity Michigan Municipal Income Fund

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the first quartile for all the periods shown. The Board also stated that the investment performance of the fund was lower than its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return compared favorably to its benchmark.

Fidelity Michigan Municipal Money Market Fund

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the second quartile for the one- and three-year periods and the third quartile for the five-year period.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to each fund will benefit each fund's shareholders, particularly in light of the Board's view that each fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered each fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 27% would mean that 73% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.

Semiannual Report

Fidelity Michigan Municipal Income Fund

Fidelity Michigan Municipal Money Market Fund

The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2007.

Based on its review, the Board concluded that each fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

In its review of each fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each fund compared to competitive fund median expenses. Each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that each fund's total expenses ranked below its competitive median for 2007.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that each fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

Semiannual Report

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and determined that the amount of profit is a fair entrepreneurial profit for the management of each fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends and actions to be taken by FMR to improve certain funds' overall performance; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability and the extent to which portfolio manager compensation is linked to fund performance; (v) Fidelity's fee structures; (vi) the funds' sub-advisory arrangements; and (vii) accounts managed by Fidelity other than the Fidelity funds.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.

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

For mutual fund and brokerage trading.

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

(computer_graphic)
Fidelity's Web Site
www.fidelity.com

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

Semiannual Report

To Write Fidelity

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
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)
For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

To Visit Fidelity

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

Arizona

7001 West Ray Road
Chandler, AZ

15445 N. Scottsdale Road
Scottsdale, AZ

California

815 East Birch Street
Brea, CA

1411 Chapin Avenue
Burlingame, CA

851 East Hamilton Avenue
Campbell, CA

19200 Von Karman Avenue
Irvine, CA

601 Larkspur Landing Circle
Larkspur, CA

2000 Avenue of the Stars
Los Angeles, CA

27101 Puerta Real
Mission Viejo, CA

73-575 El Paseo
Palm Desert, CA

251 University Avenue
Palo Alto, CA

123 South Lake Avenue
Pasadena, CA

16656 Bernardo Ctr. Drive
Rancho Bernardo, CA

1220 Roseville Parkway
Roseville, CA

1740 Arden Way
Sacramento, CA

7676 Hazard Center Drive
San Diego, CA

11943 El Camino Real
San Diego, CA

8 Montgomery Street
San Francisco, CA

3793 State Street
Santa Barbara, CA

1200 Wilshire Boulevard
Santa Monica, CA

398 West El Camino Real
Sunnyvale, CA

111 South Westlake Blvd
Thousand Oaks, CA

21701 Hawthorne Boulevard
Torrance, CA

2001 North Main Street
Walnut Creek, CA

6326 Canoga Avenue
Woodland Hills, CA

Colorado

281 East Flatiron Circle
Broomfield, CO

1625 Broadway
Denver, CO

9185 Westview Road
Lone Tree, CO

Connecticut

48 West Putnam Avenue
Greenwich, CT

265 Church Street
New Haven, CT

300 Atlantic Street
Stamford, CT

29 South Main Street
West Hartford, CT

Delaware

400 Delaware Avenue
Wilmington, DE

Florida

175 East Altamonte Drive
Altamonte Springs, FL

4400 N. Federal Highway
Boca Raton, FL

121 Alhambra Plaza
Coral Gables, FL

2948 N. Federal Highway
Ft. Lauderdale, FL

4671 Town Center Parkway
Jacksonville, FL

8880 Tamiami Trail, North
Naples, FL

230 Royal Palm Way
Palm Beach, FL

3501 PGA Boulevard
Palm Beach Gardens, FL

3550 Tamiami Trail, South
Sarasota, FL

1502 N. Westshore Blvd.
Tampa, FL

2465 State Road 7
Wellington, FL

Georgia

3445 Peachtree Road, N.E.
Atlanta, GA

1000 Abernathy Road
Atlanta, GA

Illinois

One North LaSalle Street
Chicago, IL

401 North Michigan Avenue
Chicago, IL

One Skokie Valley Road
Highland Park, IL

1415 West 22nd Street
Oak Brook, IL

15105 S LaGrange Road
Orland Park, IL

1572 East Golf Road
Schaumburg, IL

Indiana

4729 East 82nd Street
Indianapolis, IN

8480 Keystone Crossing
Indianapolis, IN

Kansas

5400 College Boulevard
Overland Park, KS

Maine

Three Canal Plaza
Portland, ME

Maryland

7315 Wisconsin Avenue
Bethesda, MD

610 York Road
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

238 Main Street
Cambridge, MA

200 Endicott Street
Danvers, MA

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

Semiannual Report

405 Cochituate Road
Framingham, MA

551 Boston Turnpike
Shrewsbury, MA

Michigan

500 E. Eisenhower Pkwy.
Ann Arbor, MI

280 Old N. Woodward Ave.
Birmingham, MI

30200 Northwestern Hwy.
Farmington Hills, MI

43420 Grand River Avenue
Novi, MI

Minnesota

7740 France Avenue South
Edina, MN

8342 3rd Street North
Oakdale, MN

Missouri

1524 South Lindbergh Blvd.
St. Louis, MO

Nevada

2225 Village Walk Drive
Henderson, NV

New Jersey

501 Route 73 South
Marlton, NJ

150 Essex Street
Millburn, NJ

35 Morris Street
Morristown, NJ

396 Route 17, North
Paramus, NJ

3518 Route 1 North
Princeton, NJ

530 Broad Street
Shrewsbury, NJ

New Mexico

2261 Q Street NE
Albuquerque, NM

New York

1130 Franklin Avenue
Garden City, NY

37 West Jericho Turnpike
Huntington Station, NY

1271 Avenue of the Americas
New York, NY

980 Madison Avenue
New York, NY

61 Broadway
New York, NY

350 Park Avenue
New York, NY

200 Fifth Avenue
New York, NY

733 Third Avenue
New York, NY

11 Penn Plaza
New York, NY

2070 Broadway
New York, NY

1075 Northern Blvd.
Roslyn, NY

799 Central Park Avenue
Scarsdale, NY

North Carolina

4611 Sharon Road
Charlotte, NC

7011 Fayetteville Road
Durham, NC

Ohio

3805 Edwards Road
Cincinnati, OH

1324 Polaris Parkway
Columbus, OH

1800 Crocker Road
Westlake, OH

28699 Chagrin Boulevard
Woodmere Village, OH

Oregon

7493 SW Bridgeport Road
Tigard, OR

Pennsylvania

600 West DeKalb Pike
King of Prussia, PA

1735 Market Street
Philadelphia, PA

12001 Perry Highway
Wexford, PA

Rhode Island

10 Memorial Boulevard
Providence, RI

Tennessee

3018 Peoples Street
Johnson City, TN

7628 West Farmington Blvd.
Germantown, TN

2035 Mallory Lane
Franklin, TN

Texas

10000 Research Boulevard
Austin, TX

4001 Northwest Parkway
Dallas, TX

12532 Memorial Drive
Houston, TX

2701 Drexel Drive
Houston, TX

6560 Fannin Street
Houston, TX

1701 Lake Robbins Drive
The Woodlands, TX

6500 N. MacArthur Blvd.
Irving, TX

6005 West Park Boulevard
Plano, TX

14100 San Pedro
San Antonio, TX

1576 East Southlake Blvd.
Southlake, TX

Utah

279 West South Temple
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

Washington

10500 NE 8th Street
Bellevue, WA

1518 6th Avenue
Seattle, WA

Washington, DC

1900 K Street, N.W.
Washington, DC

Wisconsin

16020 West Bluemound Road
Brookfield, WI

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments Money
Management, Inc.

Fidelity International Investment Advisors

Fidelity Research & Analysis Company

Fidelity International Investment Advisors
(U.K.) Limited

Fidelity Management & Research
(U.K.) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Citibank, N.A.

New York, NY

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Custodian

Citibank, N.A.

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST^®) 1-800-544-5555

Automated line for quickest service

MIR-USAN-0808
1.787785.105

Fidelity®
Minnesota Municipal Income
Fund

Semiannual Report

June 30, 2008
(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
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.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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

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

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

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Domestic and international securities markets have struggled thus far in 2008. High-grade fixed-income investments produced modestly positive results, but many stock benchmarks suffered double-digit losses through the first half of this year. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2008 to June 30, 2008).

Actual Expenses

The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value January 1, 2008	Ending Account Value June 30, 2008	Expenses Paid During Period* January 1, 2008 to June 30, 2008
Actual	$ 1,000.00	$ 1,004.00	$ 2.49
Hypothetical (5% return per year before expenses)	$ 1,000.00	$ 1,022.38	$ 2.51

* Expenses are equal to the Fund's annualized expense ratio of .50%; multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

Semiannual Report

Investment Changes (Unaudited)

Top Five Sectors as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
General Obligations	37.4	33.7
Escrowed/Pre-Refunded	15.9	16.6
Electric Utilities	15.5	16.3
Health Care	13.8	16.7
Transportation	6.0	6.3
Weighted Average Maturity as of June 30, 2008
		6 months ago
Years	6.7	6.1

The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity, taking into account any maturity shortening feature such as a call, refunding or redemption provision.

Duration as of June 30, 2008
		6 months ago
Years	6.1	6.0

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

Quality Diversification (% of fund's net assets)
As of June 30, 2008		As of December 31, 2007
	AAA 27.0%		AAA 56.7%
	AA,A 64.3%		AA,A 34.3%
	BBB 4.5%		BBB 5.1%
	BB and Below 0.6%		BB and Below 0.7%
	Not Rated 1.6%		Not Rated 1.7%
	Net Other Assets 2.0%		Net Other Assets 1.5%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings.

Semiannual Report

Investments June 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 98.0%
	Principal Amount	Value
Guam - 0.4%
Guam Ed. Fing. Foundation Series A, 5% 10/1/23	$ 1,000,000	$ 966,780
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35	425,000	411,328
		1,378,108
Minnesota - 95.2%
Anoka-Hennepin Independent School District #11 Series 2004 B, 5% 2/1/20	1,880,000	1,935,084
Brainerd Independent School District #181 Series A:
5.375% 2/1/16 (FGIC Insured)	3,285,000	3,491,397
5.375% 2/1/17 (FGIC Insured)	4,100,000	4,346,451
5.375% 2/1/19 (FGIC Insured)	2,200,000	2,315,236
Brooklyn Ctr. Independent School District #286 5.1% 2/1/31 (FGIC Insured) (Pre-Refunded to 2/1/12 @ 100) (c)	6,000,000	6,324,180
Cambridge Independent School District #911 Gen. Oblig. (Minnesota School District Prog.) Series C, 5% 4/1/14 (MBIA Insured)	1,200,000	1,283,208
Centennial Independent School District #12 Series A, 5% 2/1/19 (FSA Insured) (Pre-Refunded to 2/1/12 @ 100) (c)	480,000	504,331
Chaska Elec. Rev. (Generating Facilities Proj.) Series A:
5.25% 10/1/20	2,000,000	2,081,680
5.25% 10/1/25	1,955,000	2,005,732
Duluth Econ. Dev. Auth. Health Care Facilities Rev. (Benedictine Health Sys. Saint Mary's):
5.25% 2/15/28 (Pre-Refunded to 2/15/14 @ 100) (c)	2,350,000	2,514,665
5.25% 2/15/33 (Pre-Refunded to 2/15/14 @ 100) (c)	1,035,000	1,107,522
Duluth Hsg. & Redev. Auth. Healthcare & Hsg. Rev.:
(Benedictine Health Ctr. Proj.) 5.5% 11/1/17	290,000	279,731
(Benedictine Health Ctr. Proj.) 5.7% 11/1/22	385,000	370,389
(Benedictine Health Ctr. Proj.) 5.875% 11/1/33	750,000	678,930
Elk River Independent School District #728 Series A:
5% 2/1/17 (FGIC Insured) (Pre-Refunded to 8/1/14 @ 100) (c)	2,000,000	2,133,320
5% 2/1/19 (FSA Insured)	3,500,000	3,686,970
Hopkins Independent School District #270:
5% 2/1/16 (FGIC Insured) (Pre-Refunded to 2/1/12 @ 100) (c)	1,350,000	1,418,432
5.125% 2/1/17 (FGIC Insured) (Pre-Refunded to 2/1/12 @ 100) (c)	1,015,000	1,070,683
Municipal Bonds - continued
	Principal Amount	Value
Minnesota - continued
Jackson County Central Independent School District #2895 5% 2/1/21 (Pre-Refunded to 2/1/12 @ 100) (c)	$ 1,220,000	$ 1,281,842
Lake Superior Independent School District #381 Series A:
5% 4/1/15 (Pre-Refunded to 4/1/13 @ 100) (c)	1,970,000	2,085,856
5% 4/1/16 (Pre-Refunded to 4/1/13 @ 100) (c)	2,065,000	2,186,443
5% 4/1/17 (Pre-Refunded to 4/1/13 @ 100) (c)	2,165,000	2,292,324
5% 4/1/18 (Pre-Refunded to 4/1/13 @ 100) (c)	1,260,000	1,334,101
Lakeville Independent School District #194 Series A, 5% 2/1/22 (FGIC Insured) (Pre-Refunded to 2/1/13 @ 100) (c)	1,000,000	1,054,730
Mankato Independent School District #77 Series A, 5% 2/1/12 (FSA Insured)	1,000,000	1,009,680
Maple Grove Health Care Sys. Rev.:
5.25% 5/1/24	1,500,000	1,508,310
5.25% 5/1/25	2,000,000	2,006,860
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (HealthPartners Obligated Group Proj.):
5.875% 12/1/29	800,000	796,576
6% 12/1/19	2,915,000	2,997,320
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.:
Series 13, 5.25% 1/1/11 (b)	2,840,000	2,883,935
Series 2001 C, 5.5% 1/1/16 (Pre-Refunded to 1/1/11 @ 100) (c)	2,500,000	2,643,575
Series 2005 C, 5% 1/1/31 (FGIC Insured)	2,090,000	1,979,272
Series 2007 A, 5% 1/1/21 (AMBAC Insured)	5,000,000	5,104,050
Series 2007 B, 5% 1/1/18 (FGIC Insured)	2,000,000	2,015,140
Series A:
5% 1/1/14 (b)	3,000,000	3,030,120
5% 1/1/35 (AMBAC Insured)	8,500,000	8,292,770
Series B:
5.4% 1/1/09 (FGIC Insured) (b)	1,375,000	1,391,610
5.625% 1/1/13 (FGIC Insured) (b)	1,000,000	1,014,780
Minneapolis Art Ctr. Facilities Rev. (Walker Art Ctr. Proj.) 5.125% 7/1/21	1,250,000	1,280,100
Minneapolis Cmnty. Dev. Agcy. Tax Increment Rev. (Cap. Appreciation) 0% 9/1/08 (MBIA Insured)	4,600,000	4,581,922
Minneapolis Gen. Oblig. (Sports Arena Proj.) 5.125% 10/1/20	2,565,000	2,567,873
Municipal Bonds - continued
	Principal Amount	Value
Minnesota - continued
Minneapolis Health Care Sys. Rev.:
(Allina Health Sys. Proj.) Series 2002 A, 6% 11/15/18 (Pre-Refunded to 11/15/12 @ 100) (c)	$ 2,655,000	$ 2,938,474
(Fairview Health Care Sys. Proj.):
Series B, 5% 5/15/09 (MBIA Insured)	3,180,000	3,250,405
Series D, 5% 11/15/34 (AMBAC Insured)	5,120,000	4,938,035
Minneapolis Spl. School District #1:
Series A, 5% 2/1/17 (FSA Insured)	2,000,000	2,108,240
5% 2/1/15 (MBIA Insured)	1,020,000	1,064,370
Minneapolis Spl. School District #1 Ctfs. of Prtn. 5.5% 2/1/21 (MBIA Insured) (Pre-Refunded to 2/1/09 @ 100) (c)	1,305,000	1,329,495
Minnesota Agric. & Econ. Dev. Board Rev.:
(Health Care Sys. Proj.) Series A, 6.375% 11/15/29	90,000	93,504
Series E, 5% 2/15/37 (Assured Guaranty Corp. Insured)	2,600,000	2,613,676
Minnesota Gen. Oblig.:
5% 11/1/15	10,000,000	10,785,400
5% 8/1/16	3,500,000	3,670,660
5% 8/1/18	10,775,000	11,320,962
5% 6/1/21	8,585,000	9,048,848
5% 11/1/24	9,155,000	9,475,425
5% 11/1/26	5,270,000	5,465,833
5.25% 8/1/13	545,000	555,682
5.5% 6/1/17	2,150,000	2,245,374
Minnesota Higher Ed. Facilities Auth. Rev.:
(Hamline Univ. Proj.) Series 5B, 5.95% 10/1/19	600,000	608,334
(Macalester College Proj.) Series 6P:
5% 3/1/21	2,315,000	2,420,796
5% 3/1/22	2,535,000	2,639,696
(Saint John's Univ. Proj.) 5% 10/1/08	1,000,000	1,007,140
(Saint Olaf College Proj.) Series 6O, 5% 10/1/15	1,000,000	1,062,290
(Univ. of Saint Thomas Proj.) Series 6I, 5% 4/1/23	1,000,000	1,014,030
Minnesota Muni. Pwr. Agcy. Elec. Rev.:
5.25% 10/1/21	8,450,000	8,758,172
5.25% 10/1/22	1,000,000	1,040,020
Minnesota Pub. Facilities Auth. Drinking Wtr. Rev. Series 2005 A, 5% 3/1/21	5,060,000	5,277,884
Minnesota Retirement Sys. Bldg. Rev.:
5.55% 6/1/14	590,000	607,741
5.6% 6/1/15	615,000	632,909
5.65% 6/1/16	625,000	642,606
Municipal Bonds - continued
	Principal Amount	Value
Minnesota - continued
Minnesota Retirement Sys. Bldg. Rev.: - continued
5.7% 6/1/17	$ 900,000	$ 925,344
5.75% 6/1/18	975,000	1,002,437
5.75% 6/1/19	1,050,000	1,078,770
5.8% 6/1/20	1,000,000	1,027,380
5.875% 6/1/22	2,425,000	2,492,003
Minnesota State Colleges & Univs. Board of Trustees Rev. Series A, 5% 10/1/18 (MBIA Insured)	1,465,000	1,553,427
Mounds View Independent School District #621 Series 2000 A, 5.375% 2/1/24 (Pre-Refunded to 2/1/11 @ 100) (c)	3,000,000	3,153,300
North Saint Paul-Maplewood-Oakdale Independent School District 622 Series B:
5% 2/1/17 (FSA Insured)	1,525,000	1,645,109
5% 8/1/17 (FSA Insured)	1,575,000	1,699,047
Northeast Metropolitan Intermediate School District #916 Ctfs. of Prtn. 5% 1/1/13	1,000,000	1,050,840
Northern Muni. Pwr. Agcy. Elec. Sys. Rev.:
Series A, 5% 1/1/18 (Assured Guaranty Corp. Insured)	3,000,000	3,203,280
5.25% 1/1/13 (FSA Insured)	1,000,000	1,030,310
5.375% 1/1/14 (FSA Insured)	8,400,000	8,658,048
Northfield Hosp. Rev.:
5.375% 11/1/26	1,000,000	967,670
5.5% 11/1/16	1,025,000	1,060,896
Osseo Independent School District #279:
(School Bldg. Proj.) Series 2000 A, 5.25% 2/1/21 (Pre-Refunded to 8/1/10 @ 100) (c)	2,640,000	2,758,193
Series A, 5.25% 2/1/14 (FSA Insured)	2,100,000	2,221,065
Series B, 5% 2/1/13	2,000,000	2,046,540
Owatonna Pub. Utils. Commission Pub. Utils. Rev.:
5% 1/1/11 (AMBAC Insured)	720,000	751,183
5% 1/1/13 (AMBAC Insured)	800,000	848,136
5% 1/1/15 (AMBAC Insured)	715,000	752,559
Prior Lake Independent School District #719 Series 2000, 5.5% 2/1/15 (FSA Insured) (Pre-Refunded to 2/1/10 @ 100) (c)	900,000	934,677
Ramsey County Gen. Oblig. Series A, 5% 2/1/18	1,530,000	1,605,781
Robbinsdale Independent School District #281:
5% 2/1/16 (FSA Insured)	2,410,000	2,505,822
5% 2/1/16 (Pre-Refunded to 2/1/12 @ 100) (c)	1,015,000	1,066,450
5% 2/1/17 (FSA Insured)	2,535,000	2,626,336
5% 2/1/18 (FSA Insured)	2,520,000	2,601,446
Municipal Bonds - continued
	Principal Amount	Value
Minnesota - continued
Rochester Elec. Util. Rev. Series 2007 C:
4.5% 12/1/23 (MBIA Insured)	$ 2,000,000	$ 2,002,700
5% 12/1/30	2,000,000	2,012,200
Rochester Health Care Facilities Rev.:
(Mayo Foundation Proj.) 5% 11/15/36	2,000,000	1,964,180
(Mayo Foundation/Mayo Med. Ctr. Proj.) Series I, 5.9% 11/15/09	1,000,000	1,042,340
Roseville Independent School District #623 (School District Cr. Enhancement Prog.) Series A, 5% 2/1/15 (FSA Insured)	400,000	412,960
Saint Cloud Health Care Rev. (Saint Cloud Hosp. Group Oblig. Proj.) Series A:
5.75% 5/1/26 (FSA Insured)	7,020,000	7,320,807
5.875% 5/1/30 (FSA Insured)	4,000,000	4,163,560
6.25% 5/1/20 (FSA Insured)	2,760,000	2,901,395
Saint Cloud Hosp. Facilities Rev. (Saint Cloud Hosp. Proj.) Series B, 5% 7/1/20 (AMBAC Insured)	1,000,000	1,001,690
Saint Louis Park Health Care Facilities Rev. (Park Nicollet Health Services Proj.) Series B, 5.5% 7/1/25 (Pre-Refunded to 7/1/14 @ 100) (c)	2,000,000	2,208,920
Saint Michael Independent School District #885 5% 2/1/27 (Pre-Refunded to 2/1/12 @ 100) (c)	5,500,000	5,778,795
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev.:
(HealthPartners Oblig. Group Proj.):
5% 5/15/16	345,000	342,985
5.25% 5/15/17	325,000	326,287
5.25% 5/15/36	1,000,000	895,280
(Regions Hosp. Proj.) 5.3% 5/15/28	1,250,000	1,166,988
5% 11/15/16 (MBIA Insured)	2,000,000	2,110,360
Saint Paul Hsg. & Redev. Auth. Hosp. Rev. (Healtheast Proj.) 6% 11/15/30	2,000,000	2,008,080
Saint Paul Independent School District #625:
Series 2000 A, 5.5% 2/1/21 (Pre-Refunded to 2/1/10 @ 100) (c)	1,060,000	1,100,344
Series A, 5% 2/1/17 (FSA Insured)	220,000	229,955
Series B:
5% 2/1/16 (FSA Insured)	1,025,000	1,092,896
5% 2/1/17 (FSA Insured)	1,300,000	1,377,584
5% 2/1/18 (FSA Insured)	395,000	411,025
Series C, 5% 2/1/21	1,000,000	1,027,960
Saint Paul Port Auth. 5% 3/1/37	1,500,000	1,507,230
Municipal Bonds - continued
	Principal Amount	Value
Minnesota - continued
Saint Paul Port Auth. Lease Rev.:
(HealthEast Midway Campus Proj.) Series 2003 A, 5.75% 5/1/25	$ 2,000,000	$ 1,945,220
(Regions Hosp. Package Proj.) Series 1:
5% 8/1/12	410,000	406,413
5% 8/1/13	430,000	422,617
5% 8/1/14	455,000	443,821
5% 8/1/15	480,000	464,155
5% 8/1/16	500,000	478,820
Series 2003 11, 5.25% 12/1/20	3,000,000	3,146,490
Series 2003 12:
5.125% 12/1/27	5,000,000	5,119,450
5.25% 12/1/18	3,685,000	3,901,494
Shakopee Health Care Facilities Rev. (Saint Francis Reg'l. Med. Ctr. Proj.) 5.25% 9/1/34	2,520,000	2,284,178
South Washington County Independent School District #833 Series A:
5.4% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (c)	3,925,000	4,069,008
5.5% 2/1/19 (Pre-Refunded to 2/1/10 @ 100) (c)	1,000,000	1,038,530
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev.:
(Cap. Appreciation):
Series 1994 A, 0% 1/1/21 (MBIA Insured)	14,670,000	8,041,507
Series A, 0% 1/1/19 (MBIA Insured)	5,210,000	3,202,952
Series 2002 A, 5% 1/1/12 (AMBAC Insured)	2,660,000	2,775,923
Series A:
5.25% 1/1/15 (AMBAC Insured)	1,000,000	1,064,990
5.25% 1/1/16 (AMBAC Insured)	4,450,000	4,759,542
5.25% 1/1/17 (AMBAC Insured)	2,000,000	2,138,420
Spring Lake Park Independent School District #16:
Series A, 5% 2/1/29 (FSA Insured)	4,000,000	4,080,720
Series B:
5% 2/1/15 (MBIA Insured)	2,085,000	2,197,215
5% 2/1/16 (MBIA Insured)	2,230,000	2,341,411
5% 2/1/17 (MBIA Insured)	2,400,000	2,508,600
Suburban Hennepin Reg'l. Park District 5% 2/1/12	1,000,000	1,009,910
Univ. of Minnesota Spl. Purp. Rev. (State Supported Stadium Proj.) Series 2006:
5% 8/1/20	6,625,000	6,970,759
5% 8/1/29	4,000,000	4,082,440
Virginia Hsg. & Redev. Auth. Health Care Facility Lease Rev. 5.25% 10/1/25	440,000	417,014
Municipal Bonds - continued
	Principal Amount	Value
Minnesota - continued
Washington County Gen. Oblig. 5.5% 2/1/21 (Pre-Refunded to 2/1/10 @ 100) (c)	$ 1,450,000	$ 1,506,333
Watertown Independent School District #111 Series A, 5% 2/1/22 (FSA Insured)	1,495,000	1,558,224
Wayzata Independent School District #284 Series B, 5% 2/1/16 (FSA Insured)	1,005,000	1,071,571
Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Rev. Series A:
5% 1/1/16 (FSA Insured)	1,000,000	1,073,580
5% 1/1/30 (MBIA Insured)	3,000,000	3,004,770
6.375% 1/1/16 (Escrowed to Maturity) (c)	1,120,000	1,235,024
		363,936,802
Puerto Rico - 1.9%
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. Series Z, 6.25% 7/1/15 (MBIA Insured)	1,000,000	1,117,360
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series HH, 5.25% 7/1/29 (Pre-Refunded to 7/1/10 @ 101) (c)	3,700,000	3,918,559
Puerto Rico Govt. Dev. Bank Series B, 5% 12/1/12	1,000,000	1,023,780
Puerto Rico Pub. Bldg. Auth. Rev. Series M2, 5.75%, tender 7/1/17 (a)	600,000	620,850
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev. Series A:
0% 8/1/41 (FGIC Insured)	3,000,000	412,410
0% 8/1/54 (AMBAC Insured)	3,000,000	204,930
		7,297,889
Virgin Islands - 0.5%
Virgin Islands Pub. Fin. Auth. Refinery Facilities Rev. 4.7% 7/1/22 (b)	800,000	681,976
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys. Rev. Series A, 5% 7/1/25	1,250,000	1,208,325
		1,890,301

TOTAL INVESTMENT PORTFOLIO - 98.0% (Cost $375,208,690)		374,503,100
NET OTHER ASSETS - 2.0%		7,546,856
NET ASSETS - 100%	$ 382,049,956

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.

Other Information

The following is a summary of the inputs used, as of June 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description	Total	Level 1	Level 2	Level 3
Investments in Securities	$ 374,503,100	$ -	$ 374,503,100	$ -

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

General Obligations	37.4%
Escrowed/Pre-Refunded	15.9%
Electric Utilities	15.5%
Health Care	13.8%
Transportation	6.0%
Others* (individually less than 5%)	11.4%
	100.0%

*Includes net other assets

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

	June 30, 2008 (Unaudited)
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $375,208,690)		$ 374,503,100
Cash		2,355,168
Receivable for fund shares sold		275,250
Interest receivable		5,663,888
Prepaid expenses		489
Other receivables		65,302
Total assets		382,863,197
Liabilities
Payable for fund shares redeemed	$ 195,050
Distributions payable	324,035
Accrued management fee	116,089
Transfer agent fee payable	111,769
Other affiliated payables	40,478
Other payables and accrued expenses	25,820
Total liabilities		813,241
Net Assets		$ 382,049,956
Net Assets consist of:
Paid in capital		$ 382,785,707
Undistributed net investment income		110,270
Accumulated undistributed net realized gain (loss) on investments		(140,431)
Net unrealized appreciation (depreciation) on investments		(705,590)
Net Assets, for 34,639,907 shares outstanding		$ 382,049,956
Net Asset Value, offering price and redemption price per share ($382,049,956 ÷ 34,639,907 shares)		$ 11.03

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, 2008 (Unaudited)
Investment Income
Interest		$ 7,859,645
Expenses
Management fee	$ 665,707
Transfer agent fees	133,949
Accounting fees and expenses	47,240
Custodian fees and expenses	2,729
Independent trustees' compensation	798
Registration fees	35,387
Audit	21,440
Legal	6,745
Miscellaneous	1,288
Total expenses before reductions	915,283
Expense reductions	(71,859)	843,424
Net investment income		7,016,221
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers		46,204
Change in net unrealized appreciation (depreciation) on investment securities		(5,891,080)
Net gain (loss)		(5,844,876)
Net increase (decrease) in net assets resulting from operations		$ 1,171,345

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

Semiannual Report

Statement of Changes in Net Assets

	Six months ended June 30, 2008 (Unaudited)	Year ended December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 7,016,221	$ 13,482,314
Net realized gain (loss)	46,204	2,199,967
Change in net unrealized appreciation (depreciation)	(5,891,080)	(4,844,039)
Net increase (decrease) in net assets resulting from operations	1,171,345	10,838,242
Distributions to shareholders from net investment income	(7,012,768)	(13,466,081)
Distributions to shareholders from net realized gain	(630,935)	(1,552,055)
Total distributions	(7,643,703)	(15,018,136)
Share transactions Proceeds from sales of shares	58,352,451	62,036,921
Reinvestment of distributions	5,539,334	10,831,672
Cost of shares redeemed	(25,257,078)	(54,759,035)
Net increase (decrease) in net assets resulting from share transactions	38,634,707	18,109,558
Redemption fees	1,486	1,002
Total increase (decrease) in net assets	32,163,835	13,930,666
Net Assets
Beginning of period	349,886,121	335,955,455
End of period (including undistributed net investment income of $110,270 and undistributed net investment income of $202,045, respectively)	$ 382,049,956	$ 349,886,121
Other Information Shares
Sold	5,263,785	5,515,057
Issued in reinvestment of distributions	497,804	963,195
Redeemed	(2,304,765)	(4,869,940)
Net increase (decrease)	3,456,824	1,608,312

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

Semiannual Report

Financial Highlights

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 11.22	$ 11.36	$ 11.42	$ 11.62	$ 11.69	$ 11.62
Income from Investment Operations
Net investment income D	.215	.444	.459	.460	.458	.467
Net realized and unrealized gain (loss)	(.170)	(.090)	.004	(.162)	(.012)	.133
Total from investment operations	.045	.354	.463	.298	.446	.600
Distributions from net investment income	(.215)	(.444)	(.458)	(.460)	(.459)	(.464)
Distributions from net realized gain	(.020)	(.050)	(.065)	(.038)	(.057)	(.066)
Total distributions	(.235)	(.494)	(.523)	(.498)	(.516)	(.530)
Redemption fees added to paid in capital D, F	-	-	-	-	-	-
Net asset value, end of period	$ 11.03	$ 11.22	$ 11.36	$ 11.42	$ 11.62	$ 11.69
Total ReturnB, C	.40%	3.19%	4.15%	2.61%	3.92%	5.27%
Ratios to Average Net AssetsE
Expenses before reductions	.50%A	.50%	.50%	.51%	.51%	.51%
Expenses net of fee waivers, if any	.50%A	.50%	.50%	.51%	.51%	.51%
Expenses net of all reductions	.46%A	.44%	.47%	.48%	.49%	.49%
Net investment income	3.87%A	3.95%	4.04%	3.99%	3.95%	4.00%
Supplemental Data
Net assets, end of period (000 omitted)	$ 382,050	$ 349,886	$ 335,955	$ 343,016	$ 355,461	$ 343,880
Portfolio turnover rate	6%A	11%	15%	15%	12%	15%

^A Annualized

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

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

^D Calculated based on average shares outstanding during the period.

^E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

^F Amount represents less than $.001 per share.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2008 (Unaudited)

1. Organization.

Fidelity Minnesota Municipal Income Fund (the Fund) is a non-diversified fund of Fidelity Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund may be affected by economic and political developments in the state of Minnesota.

2. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value. Actual prices received at disposition may differ.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

Semiannual Report

2. Significant Accounting Policies - continued

Security Valuation - continued

The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1	Quoted prices in active markets for identical securities.
Level 2	Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3	Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

The aggregate value by input level, as of June 30, 2008, for the Fund's investments, is included at the end of the Fund's Schedule of Investments.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 pm Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to market discount, futures transactions and deferred trustees compensation.

The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.

The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:

Unrealized appreciation	$ 4,919,350
Unrealized depreciation	(5,580,621)
Net unrealized appreciation (depreciation)	$ (661,271)
Cost for federal income tax purposes	$ 375,164,371

Semiannual Report

2. Significant Accounting Policies - continued

Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the Fund and accounted for as an addition to paid in capital.

3. Operating Policies.

Purchases and Sales of Investments. Purchases and sales of securities, other than short-term securities, aggregated $47,248,791 and $11,012,298, respectively.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .37% of the Fund's average net assets.

Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Fund. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, under which FIIOC performs the activities associated with the Fund's transfer, dividend disbursing and shareholder servicing agent functions. The Fund pays account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .07% of average net assets.

Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

5. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Committed Line of Credit - continued

pay commitment fees on its pro rata portion of the line of credit, which amounted to $345 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

6. Expense Reductions.

Through arrangements with the Fund's custodian 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 $2,729 and $69,130 respectively.

7. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Minnesota Municipal Income Fund

Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its June 2008 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved agreements with foreign sub-advisers Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Japan) Inc., and Fidelity Management & Research (Hong Kong) Limited.

In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fees on Fidelity's Institutional Money Market Funds and launching Class IV and Institutional Class of certain of these funds; (iii) reducing the transfer agent fees for the Fidelity Select Portfolios and Investor Class of the VIP funds; and (iv) launching Class K of 29 equity funds as a lower-fee class available to certain employer-sponsored retirement plans.

Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance, as well as the fund's relative investment performance measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2007, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.

Semiannual Report

Fidelity Minnesota Municipal Income Fund

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the first quartile for all the periods shown. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions that may be taken by FMR to improve the fund's below-benchmark performance.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 8% means that 92% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Minnesota Municipal Income Fund

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2007.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of the fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of the fund compared to competitive fund median expenses. The fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

Semiannual Report

The Board noted that the fund's total expenses ranked below its competitive median for 2007.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that the fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends and actions to be taken by FMR to improve certain funds' overall performance; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability and the extent to which portfolio manager compensation is linked to fund performance; (v) Fidelity's fee structures; (vi) the funds' sub-advisory arrangements; and (vii) accounts managed by Fidelity other than the Fidelity funds.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Adviser

Fidelity Investments Money
Management Inc.

Fidelity International
Investment Advisors

Fidelity International
Investment Advisors (U.K.) Limited

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Citibank, N.A.

New York, NY

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

Citibank, N.A.

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®) 1-800-544-5555

Automated line for quickest service

MNF-USAN-0808
1.787786.105

Fidelity®
Municipal Income
Fund

Semiannual Report

June 30, 2008
(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
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.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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

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

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

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Domestic and international securities markets have struggled thus far in 2008. High-grade fixed-income investments produced modestly positive results, but many stock benchmarks suffered double-digit losses through the first half of this year. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2008 to June 30, 2008).

Actual Expenses

The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

	Beginning Account Value January 1, 2008	Ending Account Value June 30, 2008	Expenses Paid During Period* January 1, 2008 to June 30, 2008
Actual	$ 1,000.00	$ 996.50	$ 2.33
Hypothetical (5% return per year before expenses)	$ 1,000.00	$ 1,022.53	$ 2.36

* Expenses are equal to the Fund's annualized expense ratio of .47%; multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

Semiannual Report

Investment Changes (Unaudited)

Top Five States as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
California	14.4	12.6
New York	12.9	13.2
Texas	11.7	11.3
Illinois	11.2	13.1
Florida	7.7	7.9
Top Five Sectors as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
General Obligations	40.9	40.0
Special Tax	9.8	9.5
Health Care	8.7	7.0
Water & Sewer	9.5	9.8
Transportation	9.8	11.3
Weighted Average Maturity as of June 30, 2008
		6 months ago
Years	8.9	7.1

The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity, taking into account any maturity shortening feature such as a call, refunding or redemption provision.

Duration as of June 30, 2008
		6 months ago
Years	7.5	7.3

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

Quality Diversification (% of fund's net assets)
As of June 30, 2008		As of December 31, 2007
	AAA 25.8%		AAA 67.6%
	AA,A 66.0%		AA,A 25.2%
	BBB 5.7%		BBB 5.6%
	BB and Below 0.7%		BB and Below 0.6%
	Not Rated 1.5%		Not Rated 1.0%
	Short-Term Investments and Net Other Assets 0.3%		Short-Term Investments and Net Other Assets 0.0%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings.

Semiannual Report

Investments June 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 99.7%
	Principal Amount (000s)		Value (000s)
Alabama - 0.2%
Alabama Pub. School & College Auth. Rev. Series 1999 C, 5.75% 7/1/18	$ 2,000		$ 2,075
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09	2,700		2,723
Jefferson County Ltd. Oblig. School Warrants Series A, 5.5% 1/1/22	5,500		5,034
Univ. of Alabama - Birmingham Series A, 5.75% 9/1/22 (c)	3,000		3,107
			12,939
Alaska - 0.2%
Alaska Student Ln. Corp. Ed. Ln. Rev.:
Series A-2, 5% 6/1/12 (g)	1,000		1,030
Series A-3:
5% 6/1/10 (g)	3,500		3,593
5% 6/1/12 (g)	5,000		5,152
			9,775
Arizona - 1.1%
Arizona Health Facilities Auth. Rev. (Banner Health Sys. Proj.):
Series 2007 A, 5% 1/1/21	2,000		2,025
Series 2007 B, 2.677% 1/1/37 (d)	3,000		2,396
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/15 (FSA Insured)	1,815		1,943
Arizona State Univ. Ctfs. of Prtn. (Research Infrastructure Proj.):
5.25% 9/1/21 (AMBAC Insured)	2,545		2,647
5.25% 9/1/22 (AMBAC Insured)	1,000		1,037
Arizona Student Ln. Acquisition Auth. Student Ln. Rev. Sr. Series A1, 5.9% 5/1/24 (g)	2,000		2,023
Chandler Indl. Dev. Auth. Indl. Dev. Rev. (Intel Corp. Proj.) 4.375%, tender 12/1/10 (d)(g)	5,500		5,651
Goodyear McDowell Road Commercial Corridor Impt. District 5.25% 1/1/18 (AMBAC Insured)	1,660		1,785
Maricopa County Indl. Dev. Auth. Hosp. Facilities Rev. (Samaritan Health Svcs. Proj.) Series A, 7% 12/1/16 (Escrowed to Maturity) (h)	2,000		2,367
Phoenix Civic Impt. Corp. District Rev. (Plaza Expansion Proj.) Series 2005 B, 0% 7/1/38 (FGIC Insured) (a)	12,000		9,253
Phoenix Civic Impt. Corp. Wtr. Sys. Rev.:
5% 7/1/29 (MBIA Insured)	2,000		2,034
5.5% 7/1/19 (FGIC Insured)	900		949
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Arizona - continued
Phoenix Civic Impt. Corp. Wtr. Sys. Rev.: - continued
5.5% 7/1/20 (FGIC Insured)	$ 1,500		$ 1,578
Salt Verde Finl. Corp. Sr. Gas Rev.:
5.25% 12/1/21	3,500		3,352
5.5% 12/1/29	7,900		7,602
Scottsdale Indl. Dev. Auth. Hosp. Rev. (Scottsdale Healthcare Proj.) 5.8% 12/1/31 (Pre-Refunded to 12/1/11 @ 101) (h)	3,250		3,540
Tucson Gen. Oblig. Series 2002, 5% 7/1/10	2,520		2,628
Univ. of Arizona Univ. Revs. Series 2005 A:
5% 6/1/18 (AMBAC Insured)	1,225		1,288
5% 6/1/31 (AMBAC Insured)	2,025		2,038
			56,136
Arkansas - 0.2%
Little Rock School District Series 2001 C, 5.25% 2/1/33 (FSA Insured)	6,500		6,600
North Little Rock Elec. Rev. Series A, 6.5% 7/1/10 (MBIA Insured)	2,445		2,512
			9,112
California - 14.4%
ABC Unified School District 0% 8/1/28 (FGIC Insured)	3,925		1,285
Cabrillo Unified School District Series A, 0% 8/1/20 (AMBAC Insured)	4,275		2,321
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A, 5.5% 5/1/15 (AMBAC Insured)	8,200		8,724
California Edl. Facilities Auth. Rev. (Loyola Marymount Univ. Proj.):
0% 10/1/16 (MBIA Insured)	2,140		1,483
0% 10/1/17 (MBIA Insured)	2,050		1,342
0% 10/1/18 (MBIA Insured)	1,675		1,032
0% 10/1/22 (MBIA Insured)	5,000		2,427
California Gen. Oblig.:
Series 2007, 5.625% 5/1/20	210		219
5% 3/1/15	7,000		7,439
5% 8/1/19	34,110		35,509
5% 8/1/20	15,000		15,507
5% 11/1/23	5,000		5,097
5% 11/1/24	1,600		1,626
5% 3/1/26	5,100		5,135
5% 6/1/27 (AMBAC Insured)	4,100		4,147
5% 9/1/27	10,500		10,541
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
California - continued
California Gen. Oblig.: - continued
5% 2/1/31 (MBIA Insured)	$ 4,500		$ 4,470
5% 9/1/31	24,500		24,332
5% 12/1/31 (MBIA Insured)	5,595		5,557
5% 9/1/32	24,995		24,751
5% 8/1/33	9,725		9,601
5% 9/1/33	20,200		19,942
5% 8/1/35	17,750		17,465
5% 9/1/35	22,200		21,842
5.125% 11/1/24	4,300		4,399
5.125% 2/1/26	2,500		2,540
5.25% 2/1/15	10,000		10,654
5.25% 2/1/15	8,300		8,843
5.25% 2/1/16	4,300		4,567
5.25% 2/1/19	5,620		5,882
5.25% 2/1/20	2,000		2,084
5.25% 2/1/24	4,000		4,118
5.25% 2/1/27 (MBIA Insured)	3,700		3,777
5.25% 2/1/28	8,500		8,655
5.25% 11/1/28	4,485		4,570
5.25% 2/1/33	16,300		16,372
5.25% 12/1/33	160		162
5.25% 3/1/38	7,000		7,031
5.5% 8/1/27 (c)	14,700		15,347
5.5% 4/1/28	10		10
5.5% 8/1/29 (c)	20,150		20,955
5.5% 4/1/30	5		5
5.5% 8/1/30 (c)	14,000		14,526
5.5% 11/1/33	39,600		40,812
California Health Facilities Fing. Auth. Rev.:
(Catholic Healthcare West Proj.):
Series 2008 H, 5.125% 7/1/22	3,150		3,156
Series 2008 L, 5.125% 7/1/22	4,850		4,845
(Cedars-Sinai Med. Ctr. Proj.):
5% 11/15/09	400		411
5% 11/15/13	1,000		1,044
California Hsg. Fin. Agcy. Rev. Series 1983 A, 0% 2/1/15	157		89
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series A1, 4.7%, tender 4/1/12 (d)(g)	1,000		981
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
California - continued
California Pub. Works Board Lease Rev.:
(Butterfield State Office Complex Proj.) Series 2005 A, 5.25% 6/1/30	$ 14,000		$ 14,023
(Office of Emergency Services Proj.) Series 2007 A:
5% 3/1/21 (FGIC Insured)	3,515		3,574
5% 3/1/22 (FGIC Insured)	1,695		1,715
(Various California State Univ. Projs.) Series A, 5.25% 12/1/13	5,000		5,007
Series 2005 H:
5% 6/1/16	6,000		6,289
5% 6/1/17	5,000		5,192
5% 6/1/18	10,300		10,627
Series 2005 J, 5% 1/1/17	6,000		6,247
Series B:
5.25% 11/1/24 (XL Cap. Assurance, Inc. Insured)	1,575		1,605
5.25% 11/1/26 (XL Cap. Assurance, Inc. Insured)	2,860		2,896
California Statewide Communities Dev. Auth. Poll. Cont. Rev. (Southern California Edison Co. Proj.) Series A, 4.1%, tender 4/1/13 (XL Cap. Assurance, Inc. Insured) (d)	700		677
California Statewide Communities Dev. Auth. Rev.:
(Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (d)	3,500		3,523
(St. Joseph Health Sys. Proj.) Series 2007 C, 5.75% 7/1/47 (FGIC Insured)	5,000		5,134
Clovis Pub. Fing. Auth. Wastewtr. Rev. 5% 8/1/35 (MBIA Insured)	9,400		9,049
East Bay Muni. Util. District Wtr. Sys. Rev. Series 2005 A, 5% 6/1/35 (MBIA Insured)	4,400		4,423
Encinitas Union School District:
0% 8/1/20 (MBIA Insured)	3,500		1,923
0% 8/1/21 (MBIA Insured)	2,810		1,447
Foothill/Eastern Trans. Corridor Agcy. Toll Road Rev.:
Series A, 5% 1/1/35 (MBIA Insured)	5,070		4,699
0% 1/15/27 (a)	2,500		2,217
5% 1/15/16 (MBIA Insured)	2,800		2,855
5.75% 1/15/40	6,300		6,113
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.:
Series A:
5% 6/1/45	30,195		26,808
5% 6/1/45 (FGIC Insured)	5,370		4,893
Series A1, 5% 6/1/33	3,005		2,448
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
California - continued
Los Angeles Cmnty. Redev. Agcy. Lease Rev. (Vermont Manchester Social Svcs. Proj.):
5% 9/1/18 (AMBAC Insured)	$ 1,000		$ 1,013
5% 9/1/19 (AMBAC Insured)	2,545		2,560
Los Angeles Dept. of Wtr. & Pwr. Rev. Series A1, 5% 7/1/35 (FSA Insured)	4,000		4,042
Los Angeles Dept. of Wtr. & Pwr. Wtrwks. Rev.:
Series 2001 A, 5.125% 7/1/41	5,000		5,024
Series A, 5.125% 7/1/41 (MBIA Insured)	9,985		10,033
Los Angeles Unified School District:
Series A, 5.5% 7/1/15 (MBIA Insured)	6,155		6,641
Series F, 5% 7/1/18 (FSA Insured)	10,000		10,523
Metropolitan Wtr. District of Southern California Wtrwks. Rev. Series 2005 A, 5% 7/1/35 (FSA Insured)	5,970		6,054
Modesto Irrigation District Elec. Rev. Series A, 9.625% 1/1/11 (Escrowed to Maturity) (h)	1,750		1,922
Monrovia Unified School District Series B, 0% 8/1/29 (FGIC Insured)	4,525		1,359
Monterey County Ctfs. of Prtn. 5% 8/1/19 (AMBAC Insured)	2,320		2,379
North City West School Facilities Fing. Auth. Spl. Tax Series C, 5% 9/1/19 (AMBAC Insured)	3,015		3,119
Oxnard Fing. Auth. Wastewtr. Rev. (Redwood Trunk Swr. and Headworks Proj.) Series A, 5% 6/1/29 (FGIC Insured)	2,795		2,781
Placer County Wtr. Agcy. Rev. (Middle Fork Proj.) Series A, 3.75% 7/1/12	2,745		2,742
Port of Oakland Rev.:
Series B, 5% 11/1/19 (MBIA Insured)	7,000		7,291
Series C, 5% 11/1/18 (MBIA Insured)	7,075		7,457
Poway Unified School District Pub. Fing. Auth. Lease Rev. Series 2008 B, 0%, tender 12/1/14 (FSA Insured) (d)	6,000		4,576
San Francisco City & County Pub. Util. Commission Wtr. Rev. Series A, 5% 11/1/32 (MBIA Insured)	2,700		2,670
San Joaquin County Ctfs. of Prtn. (County Administration Bldg. Proj.) 5% 11/15/18 (MBIA Insured)	3,495		3,590
San Mateo County Cmnty. College District Series A, 0% 9/1/26 (FGIC Insured)	5,430		2,141
Santa Clara County Fing. Auth. (El Camino Hosp. Proj.) Series C, 5.75% 2/1/41 (AMBAC Insured)	10,000		10,212
Sweetwater Union High School District Series A, 5.625% 8/1/47 (FSA Insured)	45,225		48,214
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
California - continued
Torrance Ctfs. of Prtn. (Refing. & Pub. Impt. Proj.) Series B, 5.25% 6/1/34 (AMBAC Insured)	$ 4,475		$ 4,552
Union Elementary School District:
Series A, 0% 9/1/19 (FGIC Insured)	1,750		1,006
Series B, 0% 9/1/22 (FGIC Insured)	1,500		716
Univ. of California Revs.:
(Ltd. Proj.) Series B, 5% 5/15/20 (FSA Insured)	2,200		2,296
(UCLA Med. Ctr. Proj.):
Series A:
5.5% 5/15/15 (AMBAC Insured)	1,110		1,186
5.5% 5/15/16 (AMBAC Insured)	1,170		1,246
5.5% 5/15/17 (AMBAC Insured)	1,235		1,311
5.5% 5/15/19 (AMBAC Insured)	1,375		1,453
5.5% 5/15/22 (AMBAC Insured)	370		388
5.5% 5/15/23 (AMBAC Insured)	380		398
Series B:
5.5% 5/15/15 (AMBAC Insured)	1,890		2,066
5.5% 5/15/17 (AMBAC Insured)	2,545		2,747
Series K:
5% 5/15/17 (MBIA Insured)	2,815		3,009
5% 5/15/19 (MBIA Insured)	5,170		5,444
5% 5/15/20 (MBIA Insured)	10,000		10,463
5% 5/15/22	1,000		1,040
Val Verde Unified School District Ctfs. of Prtn. Series B, 5% 1/1/30 (FGIC Insured)	1,495		1,432
Washington Township Health Care District Rev. Series A:
5% 7/1/18	1,185		1,198
5% 7/1/27	1,840		1,745
			741,052
Colorado - 2.3%
Colorado Ctfs. of Prtn. (UCDHSC Fitzsimons Academic Proj.):
Series 2005 B, 5.25% 11/1/24 (MBIA Insured)	2,600		2,693
Series B, 5% 11/1/17 (MBIA Insured)	2,475		2,607
Colorado Health Facilities Auth. Retirement Hsg. Rev. (Liberty Heights Proj.) 0% 7/15/22 (Escrowed to Maturity) (h)	32,610		16,691
Colorado Health Facilities Auth. Rev.:
(Parkview Episcopal Med. Ctr. Proj.) Series B:
5% 9/1/19	1,115		1,098
5% 9/1/22	1,500		1,458
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Colorado - continued
Colorado Health Facilities Auth. Rev.: - continued
(Volunteers of America Care Proj.) Series A, 5.3% 7/1/37	$ 2,600		$ 2,120
Series 2001:
6.5% 11/15/31 (Pre-Refunded to 11/15/11 @ 101) (h)	5,040		5,597
6.625% 11/15/26 (Pre-Refunded to 11/15/11 @ 101) (h)	2,700		3,009
Colorado Springs Arpt. Rev. Series C:
0% 1/1/09 (MBIA Insured)	1,655		1,624
0% 1/1/10 (MBIA Insured)	1,500		1,407
Colorado Wtr. Resources and Pwr. Dev. Auth. Wtr. Resources Rev. (Parker Wtr. and Sanitation District Proj.) Series D, 5.25% 9/1/43 (MBIA Insured)	33,385		33,592
Dawson Ridge Metropolitan District #1:
Series 1992 A, 0% 10/1/22 (Escrowed to Maturity) (h)	32,490		16,463
Series 1992 B, 0% 10/1/17 (Escrowed to Maturity) (h)	7,900		5,336
Denver City & County Arpt. Rev.:
Series A, 5.625% 11/15/12 (FGIC Insured) (g)	2,000		2,049
Series E, 5% 11/15/32 (AMBAC Insured)	5,000		4,849
Denver Health & Hosp. Auth. Healthcare Rev. Series A:
5% 12/1/13	3,005		3,068
6.25% 12/1/33 (Pre-Refunded to 12/1/14 @ 100) (h)	2,000		2,295
Douglas and Elbert Counties School District #RE1:
5.75% 12/15/20 (FGIC Insured)	1,500		1,625
5.75% 12/15/22 (FGIC Insured)	1,000		1,076
E-470 Pub. Hwy. Auth. Rev. Series B:
0% 9/1/15 (MBIA Insured)	3,600		2,554
0% 9/1/20 (MBIA Insured)	12,100		6,248
Northwest Pkwy Pub. Hwy. Auth. Sr. Series A:
5.5% 6/15/15 (Pre-Refunded to 6/15/11 @ 102) (h)	1,000		1,072
5.5% 6/15/19 (Pre-Refunded to 6/15/11 @ 102) (h)	1,000		1,072
			119,603
District Of Columbia - 1.2%
District of Columbia Gen. Oblig.:
Series 2005 A, 5.25% 6/1/27 (MBIA Insured)	13,200		13,377
Series B, 0% 6/1/12 (MBIA Insured)	8,800		7,520
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
District Of Columbia - continued
District of Columbia Rev.:
(George Washington Univ. Proj.) Series A, 5.75% 9/15/20 (MBIA Insured)	$ 12,600		$ 12,986
(Medlantic/Helix Proj.) Series 1998 C, 5% 8/15/17 (FSA Insured)	1,700		1,809
District of Columbia Wtr. & Swr. Auth. Pub. Util. Rev. Series A, 5.5% 10/1/41 (FGIC Insured)	23,535		24,046
			59,738
Florida - 7.7%
Alachua County Health Facilities Auth. Health Facilities Rev. (Avmed/Santa Fe Health Care Sys. Proj.):
6% 11/15/09 (Escrowed to Maturity) (h)	650		667
6.05% 11/15/16 (Escrowed to Maturity) (h)	6,230		6,897
Boynton Beach Util. Sys. Rev. 5.5% 11/1/19 (FGIC Insured)	3,300		3,575
Brevard County School Board Ctfs. of Prtn. Series B:
5% 7/1/24 (AMBAC Insured)	1,365		1,381
5% 7/1/25 (AMBAC Insured)	3,540		3,571
Broward County Arpt. Sys. Rev. Series 1, 5.75% 10/1/12 (AMBAC Insured) (g)	1,210		1,257
Broward County Gen. Oblig. (Parks & Land Preservation Proj.):
5% 1/1/24	1,000		1,027
5% 1/1/25	1,000		1,026
Broward County School Board Ctfs. of Prtn.:
Series A:
5% 7/1/17 (FGIC Insured)	3,660		3,767
5% 7/1/19 (FGIC Insured)	3,700		3,789
5.25% 7/1/20 (MBIA Insured)	3,000		3,071
5.25% 7/1/16 (MBIA Insured)	6,060		6,308
Cap. Projs. Fin. Auth. Student Hsg. Rev.:
5.5% 10/1/11 (MBIA Insured)	2,275		2,407
5.5% 10/1/12 (MBIA Insured)	1,460		1,559
5.5% 10/1/13 (MBIA Insured)	1,265		1,346
Cape Canaveral Hosp. District Rev. Ctfs. 5.25% 1/1/18 (MBIA Insured)	2,765		2,796
Dade County Resource Recovery Facilities Rev. 5.5% 10/1/09 (AMBAC Insured) (g)	5,000		5,039
De Soto County Cap. Impt. Rev.:
5.25% 10/1/21 (MBIA Insured)	1,640		1,692
5.25% 10/1/22 (MBIA Insured)	1,725		1,780
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Florida - continued
Emerald Coast Utils. Auth. Rev.:
5.25% 1/1/26 (FGIC Insured)	$ 1,000		$ 1,029
5.25% 1/1/36 (FGIC Insured)	1,310		1,328
Escambia City Health Facilities Auth. Rev. (Ascension Health Cr. Group Proj.) Series 2002 C, 5.75% 11/15/32	6,900		7,046
Escambia County Utils. Auth. Util. Sys. Rev. Series B, 6.25% 1/1/15 (FGIC Insured)	3,050		3,371
Florida Board of Ed.:
Series 2001 F, 5% 6/1/32 (MBIA Insured)	5,040		5,072
Series 2003 J, 5% 6/1/31	2,500		2,527
Series 2006 A, 5% 6/1/32	1,100		1,107
Series B:
5% 6/1/33	6,950		7,006
5.5% 6/1/15 (FGIC Insured)	3,655		3,908
5.5% 6/1/16 (FGIC Insured)	2,825		3,019
Florida Board of Ed. Lottery Rev. Series 2002 A, 5.375% 7/1/17 (FGIC Insured)	1,000		1,060
Florida Board of Ed. Pub. Ed. Cap. Outlay Series 2004 A, 5% 6/1/31	1,240		1,251
Florida Dept. of Children and Family Services Ctfs. of Prtn. (South Florida Evaluation Treatment Ctr. Proj.):
5% 10/1/16	2,025		2,125
5% 10/1/17	2,130		2,218
Florida Dept. of Envir. Protection Rev. Series A, 5.375% 7/1/17 (MBIA Insured)	6,000		6,364
Florida Dept. of Trans. Rev. Series 2005 A:
5% 7/1/17	3,360		3,563
5% 7/1/18	3,320		3,496
Florida Gen. Oblig. (Dept. of Trans. Right-of-Way and Bridge Construction Proj.) Series 2003 A, 5% 7/1/33	5,295		5,311
Florida Mid-Bay Bridge Auth. Rev. Series A, 6.875% 10/1/22 (Escrowed to Maturity) (h)	3,000		3,746
Florida Wtr. Poll. Cont. Fing. Corp. Rev. 5.25% 1/15/20	1,950		2,065
Gulf Breeze Util. Sys. Rev. 5% 10/1/16 (AMBAC Insured)	1,010		1,063
Halifax Hosp. Med. Ctr. Rev. Series 2006 A:
5% 6/1/38	3,400		2,985
5.25% 6/1/19	2,375		2,375
Highlands County Health Facilities Auth. Rev.:
(Adventist Health Sys. - Sunbelt Proj.) Series B, 5% 11/15/30 (MBIA Insured)	4,050		4,072
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Florida - continued
Highlands County Health Facilities Auth. Rev.: - continued
(Adventist Health Sys./Sunbelt, Inc. Prog.):
Series 2002, 3.95%, tender 9/1/12 (d)	$ 21,245		$ 21,099
Series 2006 G:
5% 11/15/14	1,330		1,387
5% 11/15/15	1,000		1,039
5% 11/15/16	1,050		1,084
5.125% 11/15/17	2,845		2,928
5.125% 11/15/18	1,000		1,019
5.125% 11/15/19	2,000		2,026
Series A:
5% 11/15/15	1,000		1,039
5% 11/15/17	1,200		1,222
5% 11/15/22	1,000		991
Series B:
5% 11/15/15	1,000		1,039
5% 11/15/16	1,190		1,225
Hillsborough County Indl. Dev. (H Lee Moffitt Cancer Ctr. Proj.) Series A:
5% 7/1/17	1,930		1,961
5% 7/1/18	2,125		2,143
Hillsborough County Indl. Dev. Auth. Indl. Dev. Rev. (Health Facilities/Univ. Cmnty. Hosp. Proj.) Series 1999 A, 5.625% 8/15/19	5,000		5,220
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.):
5%, tender 3/15/12 (AMBAC Insured) (d)	4,500		4,450
5.1% 10/1/13	3,005		2,979
Hillsborough County School Board Ctfs. of Prtn. (Master Lease Prog.) Series A, 5.25% 7/1/22 (MBIA Insured)	4,810		4,858
Jacksonville Econ. Dev. Commission Healthcare Rev. (Mayo Clinic Foundation Proj.):
Series B, 5.5% 11/15/36 (MBIA Insured)	5,870		6,002
Series C, 5.5% 11/15/36 (MBIA Insured)	12,250		12,525
Jacksonville Elec. Auth. Elec. Sys. Rev.:
(Third Installment Proj.) Series 73, 6.8% 7/1/12 (Escrowed to Maturity) (h)	1,945		2,080
Series 3A, 5% 10/1/41 (FSA Insured)	18,800		18,884
Jacksonville Sales Tax Rev. 5.25% 10/1/19 (MBIA Insured)	1,500		1,573
Lakeland Energy Sys. Rev. 5.5% 10/1/14 (MBIA Insured)	1,000		1,054
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Florida - continued
Marco Island Util. Sys. Rev. 5% 10/1/33 (MBIA Insured)	$ 5,025		$ 4,947
Martin County Utils. Sys. Rev. 5.5% 10/1/16 (FGIC Insured)	1,265		1,346
Melbourne Arpt. Rev.:
6.75% 10/1/08 (MBIA Insured) (g)	275		277
6.75% 10/1/09 (MBIA Insured) (g)	350		362
6.75% 10/1/10 (MBIA Insured) (g)	170		181
Melbourne Wtr. & Swr. Rev. 5% 10/1/34 (FGIC Insured)	5,000		4,985
Miami Beach Health Facilities Auth. Hosp. Rev. (Mount Sinai Med. Ctr. of Florida Proj.) Series A, 6.8% 11/15/31	2,545		2,550
Miami Beach Parking Rev. 5.125% 9/1/22 (FSA Insured)	1,010		1,015
Miami Beach Stormwater Rev. 5.375% 9/1/30 (FGIC Insured)	1,000		1,013
Miami Beach Wtr. & Swr. Rev. 5.5% 9/1/27 (AMBAC Insured)	6,000		6,206
Miami Health Facilities Auth. Sys. Rev.:
(Catholic Health East Proj.) Series B, 5.125% 11/15/24	3,000		3,001
Series C, 5.125% 11/15/24	1,450		1,450
Miami-Dade County Aviation Rev. (Miami Int'l. Arpt. Proj.) Series B, 5% 10/1/37 (FGIC Insured)	12,005		11,336
Miami-Dade County Expressway Auth. Series B, 5.25% 7/1/25 (FGIC Insured)	5,000		5,103
Miami-Dade County Gen. Oblig. (Bldg. Better Communities Prog.) 5% 7/1/35 (FGIC Insured)	4,565		4,576
Miami-Dade County School Board Ctfs. of Prtn.:
Series A:
5% 8/1/17 (AMBAC Insured)	3,500		3,616
5% 8/1/18 (AMBAC Insured)	4,000		4,105
5% 8/1/20 (AMBAC Insured)	2,500		2,528
5% 8/1/21 (AMBAC Insured)	5,095		5,127
5% 8/1/22 (AMBAC Insured)	3,325		3,335
Series B:
5%, tender 5/1/11 (MBIA Insured) (d)	10,600		10,889
5.5%, tender 5/1/11 (MBIA Insured) (d)	5,400		5,619
Ocala Util. Sys. Rev. Series B, 5.25% 10/1/22 (FGIC Insured)	1,000		1,030
Okeechobee County Solid Waste Rev. (Chambers Waste Sys. Proj.) Series A, 4.2%, tender 7/1/09 (d)(g)	2,250		2,246
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Florida - continued
Orange County Edl. Facilities Auth. Ed. Rev. (Rollins College Proj.):
5.25% 12/1/32 (AMBAC Insured)	$ 1,350		$ 1,393
5.25% 12/1/37 (AMBAC Insured)	1,365		1,404
Orange County Health Facilities Auth. Rev. (Orlando Reg'l. Health Care Sys. Proj.) Series 1996 A, 6.25% 10/1/18 (MBIA Insured)	4,500		5,080
Orange County Hsg. Fin. Auth. Single Family Mtg. Rev. (Mtg. Backed Securities Prog.) 6.4% 10/1/14 (g)	65		65
Orange County Sales Tax Rev. Series B, 5% 1/1/25 (FGIC Insured)	2,800		2,834
Orange County School Board Ctfs. of Prtn. Series A:
0% 8/1/13 (MBIA Insured)	2,275		1,858
5% 8/1/16 (MBIA Insured)	2,940		3,090
Osceola County Infrastructure Sales Surtax Rev. 5.375% 10/1/17 (AMBAC Insured)	1,000		1,058
Osceola County Tourist Dev. Tax Rev. Series A, 5.5% 10/1/19 (FGIC Insured)	1,190		1,260
Palm Beach County School Board Ctfs. of Prtn. Series D, 5.25% 8/1/17 (FSA Insured)	2,025		2,126
Pasco County School Board Ctfs. of Prtn. Series A, 5% 8/1/30 (AMBAC Insured)	4,000		3,968
Peace River/Manasota Reg'l. Wtr. Supply Auth. Rev. Series A:
5% 10/1/30 (FSA Insured)	3,105		3,146
5% 10/1/35 (FSA Insured)	5,000		5,042
Plant City Util. Sys. Rev. 6% 10/1/15 (MBIA Insured)	2,200		2,419
Polk County Pub. Facilities Rev. 5% 12/1/33 (MBIA Insured)	2,000		1,958
Port Orange Gen. Oblig. 5% 4/1/29 (MBIA Insured)	2,015		2,026
Reedy Creek Impt. District Utils. Rev. Series 1, 5.25% 10/1/19 (MBIA Insured)	3,700		3,799
Seminole County School Board Ctfs. of Prtn. Series A:
5% 7/1/16 (MBIA Insured)	1,645		1,732
5% 7/1/20 (MBIA Insured)	1,745		1,792
St. Johns County School Board 5.25% 7/1/16 (MBIA Insured)	1,400		1,467
Sumter County School District Rev. (Multi-District Ln. Prog.) 7.15% 11/1/15 (FSA Insured)	985		1,191
Tallahassee Energy Sys. Rev. 5% 10/1/35 (MBIA Insured)	3,065		3,068
Tampa Rev. (Catholic Health East Proj.) Series A1, 5.5% 11/15/12 (MBIA Insured)	1,045		1,114
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Florida - continued
Tampa Sales Tax Rev. Series 2001 A:
5.375% 10/1/15 (AMBAC Insured)	$ 2,150		$ 2,280
5.375% 10/1/18 (AMBAC Insured)	2,465		2,599
5.375% 10/1/19 (AMBAC Insured)	2,650		2,782
Tampa Wtr. & Swr. Rev. 6% 10/1/17 (FSA Insured)	1,000		1,151
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001, 3%, tender 10/1/09, LOC SunTrust Banks, Inc. (d)	3,000		3,005
Univ. of Central Florida Athletics Assoc., Inc. Ctfs. of Prtn. Series A:
5% 10/1/17 (FGIC Insured)	1,805		1,834
5% 10/1/35 (FGIC Insured)	3,275		3,089
5.25% 10/1/34 (FGIC Insured)	2,000		1,964
USF Fing. Corp. Ctfs. of Prtn. (Master Lease Prog.) Series A:
5.25% 7/1/15 (AMBAC Insured)	2,690		2,850
5.25% 7/1/16 (AMBAC Insured)	2,830		2,991
Volusia County Edl. Facilities Auth. Rev.:
5% 10/15/11 (Radian Asset Assurance, Inc. Insured)	1,000		1,029
5% 10/15/12 (Radian Asset Assurance, Inc. Insured)	1,260		1,298
Walton County School Board Ctfs. of Prtn. 5.25% 7/1/18 (FSA Insured)	1,865		2,005
Winter Park Gen. Oblig. 5.25% 7/1/18	1,000		1,042
			399,541
Georgia - 2.8%
Appling County Dev. Auth. Poll. Cont. Rev. Series 2007 B, 4.75%, tender 4/1/11 (MBIA Insured) (d)	5,000		4,991
Atlanta Tax Allocation (Atlantic Station Proj.) 5.25% 12/1/20 (Assured Guaranty Corp. Insured)	2,000		2,114
Atlanta Wtr. & Wastewtr. Rev.:
5% 11/1/37 (FSA Insured)	38,395		38,433
5% 11/1/43 (FSA Insured)	57,750		57,461
Augusta Wtr. & Swr. Rev. 5.25% 10/1/39 (FSA Insured)	12,100		12,456
Colquitt County Dev. Auth. Rev. Series C, 0% 12/1/21 (Escrowed to Maturity) (h)	4,665		2,479
Fulton County Wtr. & Swr. Rev. 6.375% 1/1/14 (FGIC Insured)	140		152
Houston County Hosp. Auth. Rev. (Houston Healthcare Proj.) 5.25% 10/1/19	1,450		1,484
Main Street Natural Gas, Inc. Georgia Gas Proj. Rev. Series A:
5.25% 9/15/19	8,120		7,566
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Georgia - continued
Main Street Natural Gas, Inc. Georgia Gas Proj. Rev. Series A: - continued
5.25% 9/15/20	$ 2,500		$ 2,307
Richmond County Dev. Auth. Rev. (Southern Care Corp. Facility Proj.):
Series A, 0% 12/1/21 (Escrowed to Maturity) (h)	5,615		2,984
Series C, 0% 12/1/21 (Escrowed to Maturity) (h)	2,600		1,382
Savannah Econ. Dev. Auth. Rev. (Southern Care Corp. Proj.) Series C, 0% 12/1/21 (Escrowed to Maturity) (h)	17,000		9,034
Valdosta & Lowndes County Hosp. (South Georgia Med. Ctr. Proj.) 5% 10/1/20	1,570		1,581
			144,424
Guam - 0.0%
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35	605		586
Hawaii - 0.4%
Hawaii Arpts. Sys. Rev.:
Series 2000 A, 5.75% 7/1/21 (FGIC Insured)	2,640		2,739
Series 2000 B, 8% 7/1/11 (FGIC Insured) (g)	9,250		9,968
Honolulu City & County Board of Wtr. Supply Wtr. Sys. Rev. Series B:
5% 7/1/12 (MBIA Insured) (g)	1,690		1,753
5% 7/1/13 (MBIA Insured) (g)	1,000		1,040
5% 7/1/14 (MBIA Insured) (g)	1,140		1,185
5% 7/1/15 (MBIA Insured) (g)	1,430		1,486
5.25% 7/1/18 (MBIA Insured) (g)	3,205		3,289
			21,460
Illinois - 11.2%
Boone & Winnebago County Cmnty. Unit School District 200:
0% 1/1/21 (FGIC Insured)	1,810		944
0% 1/1/22 (FGIC Insured)	1,950		954
Chicago Board of Ed. Series 1999 A, 0% 12/1/16 (FGIC Insured)	3,200		2,170
Chicago Gen. Oblig.:
(City Colleges Proj.):
0% 1/1/14 (FGIC Insured)	17,000		13,377
0% 1/1/15 (FGIC Insured)	20,000		14,933
(Neighborhoods Alive 21 Prog.):
5% 1/1/28 (AMBAC Insured)	2,000		2,022
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Illinois - continued
Chicago Gen. Oblig.: - continued
(Neighborhoods Alive 21 Prog.):
5% 1/1/33 (AMBAC Insured)	$ 3,510		$ 3,523
Series 2000 D, 5.5% 1/1/35 (FGIC Insured)	15,000		15,396
Series 2003 A, 5.25% 1/1/22 (MBIA Insured)	740		764
Series 2003 C, 5% 1/1/35 (MBIA Insured)	1,445		1,446
Series 2004 A, 5% 1/1/34 (FSA Insured)	12,510		12,576
Series A:
5% 1/1/42 (AMBAC Insured)	565		553
5.25% 1/1/29 (FSA Insured)	435		446
5.25% 1/1/33 (MBIA Insured)	2,150		2,169
5.5% 1/1/38 (MBIA Insured)	5,620		5,731
5.5% 1/1/38 (Pre-Refunded to 1/1/11 @ 101) (h)	10		11
Series C:
5.5% 1/1/40 (FGIC Insured)	5,520		5,679
5.7% 1/1/30 (FGIC Insured)	5,760		5,988
Chicago Midway Arpt. Rev. Series B:
5.25% 1/1/13 (MBIA Insured) (g)	2,910		2,929
5.25% 1/1/14 (MBIA Insured) (g)	3,060		3,080
6% 1/1/10 (MBIA Insured) (g)	2,435		2,451
6.125% 1/1/11 (MBIA Insured) (g)	2,580		2,597
Chicago Motor Fuel Tax Rev. Series A:
5% 1/1/33 (AMBAC Insured)	3,810		3,815
5.25% 1/1/19 (AMBAC Insured)	1,780		1,873
Chicago O'Hare Int'l. Arpt. Rev.:
Series 1999, 5.5% 1/1/11 (AMBAC Insured) (g)	10,000		10,261
Series A:
5% 1/1/16 (FSA Insured)	6,800		7,160
5.5% 1/1/16 (AMBAC Insured) (g)	10,770		10,893
6.25% 1/1/09 (AMBAC Insured) (g)	6,040		6,111
Series B, 5.75% 1/1/30 (AMBAC Insured)	13,420		13,722
Chicago Park District Series A:
5.25% 1/1/18 (FGIC Insured)	4,690		4,968
5.25% 1/1/19 (FGIC Insured)	3,000		3,164
5.25% 1/1/20 (FGIC Insured)	2,195		2,305
5.5% 1/1/19 (FGIC Insured)	475		494
5.5% 1/1/20 (FGIC Insured)	490		508
Chicago Spl. Trans. Rev. Series 2001:
5.25% 1/1/31 (Pre-Refunded to 1/1/27 @ 100) (h)	11,670		11,886
5.5% 1/1/17 (Escrowed to Maturity) (h)	1,135		1,190
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Illinois - continued
Chicago Transit Auth. Cap. Grant Receipts Rev.:
5% 6/1/20 (AMBAC Insured)	$ 7,000		$ 7,252
5% 6/1/21 (AMBAC Insured)	2,600		2,681
Chicago Wtr. Rev. 0% 11/1/16 (AMBAC Insured)	7,555		5,186
Cicero Gen. Oblig. 5.25% 12/1/26 (MBIA Insured)	3,010		3,107
Cook County Gen. Oblig.:
Series B:
5% 11/15/19 (MBIA Insured)	2,600		2,764
5.25% 11/15/26 (MBIA Insured)	2,700		2,800
5.25% 11/15/28 (MBIA Insured)	1,400		1,444
Series C, 5% 11/15/25 (AMBAC Insured)	8,400		8,541
DuPage County Forest Preserve District Rev. 0% 11/1/17	6,665		4,437
Evanston Gen. Oblig. Series C:
5.25% 1/1/16	185		194
5.25% 1/1/22	380		394
Franklin Park Village Cook County Gen. Oblig. Series B, 5% 7/1/18 (AMBAC Insured)	1,450		1,508
Grundy, Kendall & Will County Cmnty. High School District #111 Gen. Oblig. Series 2006 A:
5.25% 5/1/25 (FGIC Insured)	5,000		5,171
5.5% 5/1/23 (FGIC Insured)	3,000		3,174
Hodgkins Tax Increment Rev. 5% 1/1/11	2,075		2,095
Illinois Dedicated Tax Rev. Series B, 0% 12/15/18 (AMBAC Insured)	4,500		2,730
Illinois Dev. Fin. Auth. Retirement Hsg. Regency Park Rev. 0% 7/15/23 (Escrowed to Maturity) (h)	24,975		12,010
Illinois Dev. Fin. Auth. Rev.:
(DePaul Univ. Proj.) Series 2004 C, 5.625% 10/1/17	2,800		2,993
(Revolving Fund-Master Trust Prog.):
5.5% 9/1/18	5,365		5,708
5.5% 9/1/19	4,405		4,677
Illinois Edl. Facilities Auth. Revs.:
(Northwestern Univ. Proj.) 5% 12/1/38	5,740		5,772
(Univ. of Chicago Proj.):
Series 2005 A:
5.25% 7/1/41	755		767
5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (h)	205		219
Series A, 5.125% 7/1/38 (Pre-Refunded to 7/1/08 @ 101) (h)	1,585		1,601
Illinois Fin. Auth. Gas Supply Rev. (Peoples Gas Lt. and Coke Co. Proj.) Series A, 4.3%, tender 6/1/16 (AMBAC Insured) (d)	3,860		3,607
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Illinois - continued
Illinois Fin. Auth. Rev.:
(Alexian Brothers Health Sys. Proj.) Series 2008, 5.5% 2/15/38	$ 7,000		$ 6,625
(Children's Memorial Hosp. Proj.) Series 2008 A:
5.25% 8/15/33 (Assured Guaranty Corp. Insured)	10,600		10,707
5.25% 8/15/47 (Assured Guaranty Corp. Insured)	2,000		2,003
(Edward Hosp. Obligated Group Proj.) Series 2008 A:
5.5% 2/1/40 (AMBAC Insured)	1,000		1,013
6% 2/1/28 (AMBAC Insured)	1,000		1,066
(Newman Foundation Proj.):
5% 2/1/32 (Radian Asset Assurance, Inc. Insured)	1,300		1,202
5% 2/1/37 (Radian Asset Assurance, Inc. Insured)	10,000		9,112
Illinois Gen. Oblig.:
First Series:
5.25% 12/1/17 (FSA Insured)	2,260		2,396
5.25% 12/1/20 (FSA Insured)	2,000		2,100
5.375% 12/1/14 (FSA Insured)	5,000		5,376
5.375% 7/1/15 (MBIA Insured)	3,700		3,944
5.5% 4/1/16 (FSA Insured)	1,300		1,384
5.5% 8/1/16 (MBIA Insured)	13,000		13,893
5.5% 4/1/17 (MBIA Insured)	7,065		7,305
5.5% 8/1/17 (MBIA Insured)	7,500		8,012
5.5% 2/1/18 (FGIC Insured)	1,000		1,054
5.5% 8/1/18 (MBIA Insured)	5,000		5,330
5.6% 4/1/21 (MBIA Insured)	7,500		7,711
5.75% 12/1/18 (MBIA Insured)	1,200		1,259
Series 2006, 5.5% 1/1/31	3,000		3,309
5.7% 4/1/16 (MBIA Insured)	7,350		7,646
Illinois Health Facilities Auth. Rev.:
(Condell Med. Ctr. Proj.):
6.5% 5/15/30	9,000		9,057
7% 5/15/22	5,000		5,148
(Delnor Hosp. Proj.) Series D, 5.25% 5/15/32 (FSA Insured)	3,000		2,976
(Lake Forest Hosp. Proj.):
Series A, 6.25% 7/1/22	4,200		4,421
6% 7/1/33	3,775		3,866
(Lutheran Gen. Health Care Sys. Proj.) Series C:
6% 4/1/18	3,000		3,246
7% 4/1/14	1,500		1,676
(Riverside Health Sys. Proj.) 6.85% 11/15/29 (Pre-Refunded to 11/15/10 @ 101) (h)	5,025		5,516
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Illinois - continued
Illinois Health Facilities Auth. Rev.: - continued
(Swedish American Hosp. Proj.) 6.875% 11/15/30 (Pre-Refunded to 5/15/10 @ 101) (h)	$ 6,955		$ 7,453
6.75% 2/15/15 (Escrowed to Maturity) (h)	1,000		1,062
Illinois Muni. Elec. Agcy. Pwr. Supply Series A, 5% 2/1/35 (FGIC Insured)	5,000		4,760
Illinois Reg'l. Trans. Auth. Series A, 8% 6/1/17 (AMBAC Insured)	4,500		5,790
Illinois Sales Tax Rev. First Series, 6% 6/15/20	4,600		4,818
Kane & DeKalb Counties Cmnty. Unit School District #302 5.5% 2/1/25 (FSA Insured)	3,000		3,187
Kane, McHenry, Cook & DeKalb Counties Unit School District #300:
0% 12/1/17 (AMBAC Insured)	3,700		2,390
0% 12/1/21 (AMBAC Insured)	5,000		2,535
6.5% 1/1/20 (AMBAC Insured)	7,865		9,311
Lake County Cmnty. High School District #117, Antioch Series B, 0% 12/1/18 (FGIC Insured)	7,240		4,334
Lake County Forest Preservation District Series 2007 A, 2.235% 12/15/13 (d)	2,100		2,030
Lake County Warren Township High School District #121, Gurnee Series C:
5.5% 3/1/24 (AMBAC Insured)	2,945		3,119
5.625% 3/1/21 (AMBAC Insured)	2,505		2,690
5.75% 3/1/19 (AMBAC Insured)	2,240		2,439
McHenry & Kane Counties Cmnty. Consolidated School District #158 0% 1/1/19 (FGIC Insured)	3,000		1,710
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev.:
(McCormick Place Expansion Proj.):
Series 2002 A, 5.75% 6/15/41 (MBIA Insured)	26,420		27,873
Series 2002 B, 0% 6/15/20 (MBIA Insured) (a)	2,000		1,751
Series A:
0% 6/15/15 (FGIC Insured)	15,000		11,025
0% 6/15/19 (FGIC Insured)	3,305		1,939
0% 6/15/19 (MBIA Insured)	2,935		1,731
0% 6/15/20 (FGIC Insured)	3,610		1,994
5% 12/15/28 (MBIA Insured)	2,000		2,016
5.25% 12/15/10 (AMBAC Insured)	12,950		12,966
6.65% 6/15/12 (FGIC Insured)	250		250
Series 1996 A, 0% 6/15/24 (MBIA Insured)	3,060		1,345
Series 2002:
0% 6/15/13 (Escrowed to Maturity) (h)	4,155		3,419
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Illinois - continued
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev.: - continued
Series 2002:
0% 6/15/13 (FGIC Insured)	$ 5,575		$ 4,543
Series A, 0% 12/15/19 (MBIA Insured)	2,115		1,214
Moline Gen. Oblig. Series A, 5.5% 2/1/17 (FGIC Insured)	1,000		1,046
Quincy Hosp. Rev.:
(Blessing Hosp. Proj.) 5% 11/15/16	1,200		1,229
5% 11/15/14	1,000		1,029
5% 11/15/18	1,000		1,011
Schaumburg Village Gen. Oblig. Series B, 5% 12/1/38 (FGIC Insured)	15,100		15,116
Univ. of Illinois Univ. Revs.:
Series A, 0% 4/1/21 (MBIA Insured)	4,965		2,610
0% 4/1/17 (MBIA Insured)	16,270		10,875
0% 4/1/20 (MBIA Insured)	8,000		4,469
Will County Cmnty. Unit School District #365 0% 11/1/17 (FSA Insured)	3,200		2,113
			576,466
Indiana - 2.2%
Avon 2000 Cmnty. School Bldg. Corp. 5% 7/15/17 (FSA Insured)	2,835		3,013
Clark-Pleasant 2004 School Bldg. Corp.:
5.25% 7/15/23 (FSA Insured)	1,545		1,618
5.25% 7/15/25 (FSA Insured)	1,720		1,788
Crown Point Multi-School Bldg. Corp. 0% 1/15/21 (MBIA Insured)	7,480		3,955
Franklin Township Independent School Bldg. Corp., Marion County:
5% 7/15/24 (MBIA Insured)	1,365		1,397
5.25% 7/15/17 (MBIA Insured)	1,885		2,020
GCS School Bldg. Corp. One 5% 7/15/22 (FSA Insured)	1,545		1,595
Hammond School Bldg. Corp. 5% 7/15/16 (MBIA Insured)	1,845		1,961
Hobart Bldg. Corp. 6.5% 1/15/29 (FGIC Insured)	25,900		29,740
Indiana Bond Bank Series B:
5% 2/1/19 (MBIA Insured)	1,940		1,999
5% 2/1/20 (MBIA Insured)	1,635		1,677
Indiana Dev. Fin. Auth. Rev. 5.95% 8/1/30 (g)	7,350		7,122
Indiana Dev. Fin. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.7%, tender 10/1/15 (d)(g)	3,000		2,822
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Indiana - continued
Indiana Health & Edl. Facilities Fing. Auth. Hosp. Rev. Series B:
5% 2/15/14	$ 1,060		$ 1,096
5% 2/15/15	1,500		1,547
Indiana Health Facilities Fing. Auth. Hosp. Rev. (Columbus Reg'l. Hosp. Proj.) 7% 8/15/15 (FSA Insured)	2,500		2,799
Indiana Health Facility Fing. Auth. Rev. (Ascension Health Cr. Group Proj.) Series 2005 A1, 5%, tender 5/1/13 (d)	3,000		3,136
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series A, 5% 1/1/32 (FGIC Insured)	2,500		2,429
Indiana Trans. Fin. Auth. Hwy. Rev. Series 1993 A:
0% 6/1/16 (AMBAC Insured)	6,470		4,575
0% 6/1/18 (AMBAC Insured)	1,700		1,073
Indianapolis Arpt. Auth. Rev. Series A, 5.6% 7/1/15 (FGIC Insured)	645		645
Indianapolis Local Pub. Impt. Bond Bank (Indianapolis Arpt. Auth. Proj.) Series 2006 F:
5% 1/1/16 (AMBAC Insured) (g)	1,525		1,523
5% 1/1/17 (AMBAC Insured) (g)	1,700		1,685
5.25% 1/1/14 (AMBAC Insured) (g)	2,675		2,734
Petersburg Poll. Cont. Rev. (Indianapolis Pwr. & Lt. Co. Proj.):
5.9% 12/1/24 (g)	10,000		10,051
5.95% 12/1/29 (g)	2,000		1,930
Rockport Poll. Cont. Rev. (AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (d)	4,400		4,508
Southmont School Bldg. Corp. 5% 7/15/15 (FGIC Insured)	2,000		2,065
Vigo County Hosp. Auth. Rev. (Union Hosp., Inc. Proj.):
5.7% 9/1/37	2,000		1,736
5.75% 9/1/42	1,000		861
Wayne Township Marion County School Bldg. Corp. 5.5% 1/15/31 (MBIA Insured)	5,560		5,775
Westfield Washington Multi-School Bldg. Corp. Series A, 5% 7/15/18 (FSA Insured)	1,500		1,574
Zionsville Cmnty. Schools Bldg. 5% 7/15/20 (FSA Insured)	1,945		2,059
			114,508
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Iowa - 0.3%
Iowa Fin. Auth. Hosp. Facilities Rev.:
6.75% 2/15/13 (Pre-Refunded to 2/15/10 @ 101) (h)	$ 1,000		$ 1,074
6.75% 2/15/14 (Pre-Refunded to 2/15/10 @ 101) (h)	1,280		1,374
6.75% 2/15/15 (Pre-Refunded to 2/15/10 @ 101) (h)	1,000		1,074
6.75% 2/15/17 (Pre-Refunded to 2/15/10 @ 101) (h)	1,000		1,074
Tobacco Settlement Auth. Tobacco Settlement Rev. 5.3% 6/1/25 (Pre-Refunded to 6/1/11 @ 101) (h)	10,000		10,517
			15,113
Kansas - 0.3%
Kansas Dev. Fin. Auth. Health Facilities Rev. (Sisters of Charity of Leavenworth Health Svcs. Corp. Proj.) Series J, 6.25% 12/1/28	4,500		4,699
Olathe Health Facilities Rev. (Olathe Med. Ctr. Proj.) Series 2008 A, 4.125%, tender 3/1/13 (d)	4,400		4,393
Topeka Combined Util. Impt. Rev. Series 2005 A:
6% 8/1/20 (XL Cap. Assurance, Inc. Insured)	1,200		1,346
6% 8/1/25 (XL Cap. Assurance, Inc. Insured)	1,100		1,218
6% 8/1/27 (XL Cap. Assurance, Inc. Insured)	1,235		1,358
			13,014
Kentucky - 0.7%
Jefferson County Cap. Projs. Corp. Rev. (Lease Prog.) Series A, 0% 8/15/11	5,250		4,621
Louisville & Jefferson County Metropolitan Govt. Health Facilities Rev. (Jewish Hosp. & St. Mary's HealthCare Proj.) 6.125% 2/1/37 (c)	7,400		7,442
Louisville & Jefferson County Metropolitan Swr. District Swr. & Drain Sys. Rev. Series A, 5.25% 5/15/37 (FGIC Insured)	15,750		16,116
Louisville & Jefferson County Reg'l. Arpt. Auth. Arpt. Sys. Rev. Series 2001 A:
5.25% 7/1/09 (FSA Insured) (g)	1,545		1,584
5.5% 7/1/10 (FSA Insured) (g)	3,800		3,909
			33,672
Louisiana - 1.3%
Louisiana Gas & Fuel Tax Rev. Series A, 5.375% 6/1/20 (AMBAC Insured)	3,000		3,112
Louisiana Gen. Oblig. Series 2003 A, 5% 5/1/20 (FGIC Insured)	1,500		1,535
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Louisiana - continued
Louisiana Pub. Facilities Auth. Rev.:
(Archdiocese of New Orleans Proj.):
5% 7/1/20 (CIFG North America Insured)	$ 1,000		$ 1,009
5% 7/1/21 (CIFG North America Insured)	1,000		1,004
(Nineteenth Judicial District Court Proj.):
5.375% 6/1/19 (FGIC Insured)	1,000		1,024
5.375% 6/1/32 (FGIC Insured)	1,900		1,894
5.5% 6/1/41 (FGIC Insured)	15,500		15,542
Monroe-West Monroe Pub. Trust Fing. Auth. Mtg. Rev. Series C, 0% 8/20/14	8,625		6,365
New Orleans Aviation Board Rev.:
Series 2007 A, 5% 1/1/17 (FSA Insured) (g)	1,420		1,442
Series 2007 B2, 5% 1/1/16 (FSA Insured) (g)	1,000		1,021
New Orleans Gen. Oblig.:
0% 9/1/09 (AMBAC Insured)	16,500		15,836
0% 9/1/11 (AMBAC Insured)	3,080		2,724
0% 9/1/13 (AMBAC Insured)	3,350		2,695
0% 9/1/14 (AMBAC Insured)	3,165		2,416
5% 12/1/29 (MBIA Insured)	4,690		4,363
5.25% 12/1/24 (MBIA Insured)	3,450		3,427
Tobacco Settlement Fing. Corp. Series 2001 B, 5.875% 5/15/39	1,000		908
			66,317
Maine - 0.2%
Maine Tpk. Auth. Tpk. Rev.:
Series 2004, 5.25% 7/1/30 (FSA Insured)	3,000		3,112
Series 2007, 5.25% 7/1/37 (AMBAC Insured)	8,760		8,987
			12,099
Maryland - 0.4%
Baltimore Convention Ctr. Hotel Rev. Series A, 5.25% 9/1/39 (XL Cap. Assurance, Inc. Insured)	5,735		5,151
Maryland Econ. Dev. Corp. Student Hsg. Rev. (Univ. of Maryland, Baltimore County Student Hsg. Proj.):
5% 6/1/14 (CIFG North America Insured)	1,020		1,049
5% 6/1/16 (CIFG North America Insured)	1,000		1,022
5% 6/1/19 (CIFG North America Insured)	1,500		1,496
Maryland Health & Higher Edl. Facilities Auth. Rev.:
(Good Samaritan Hosp. Proj.):
5.75% 7/1/13 (Escrowed to Maturity) (h)	1,605		1,712
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Maryland - continued
Maryland Health & Higher Edl. Facilities Auth. Rev.: - continued
(Good Samaritan Hosp. Proj.):
5.75% 7/1/13 (Escrowed to Maturity) (h)	$ 995		$ 1,061
(Johns Hopkins Med. Institutions Utils. Proj.) Series 2005 B, 5% 5/15/35	2,700		2,733
(Washington County Health Sys. Proj.):
6% 1/1/28	5,000		5,047
6% 1/1/43	1,500		1,457
			20,728
Massachusetts - 5.4%
Massachusetts Bay Trans. Auth. Series B, 6.2% 3/1/16	3,800		4,271
Massachusetts Bay Trans. Auth. Assessment Rev. Series A, 5.25% 7/1/30	580		590
Massachusetts Edl. Fing. Auth. Rev.:
Series A Issue E, 4.9% 7/1/13 (AMBAC Insured) (g)	2,060		2,066
Series B Issue E:
6.05% 7/1/08 (AMBAC Insured) (g)	110		110
6.15% 7/1/10 (AMBAC Insured) (g)	50		50
6.25% 7/1/11 (AMBAC Insured) (g)	25		25
6.3% 7/1/12 (AMBAC Insured) (g)	30		30
Massachusetts Fed. Hwy. Series 2000 A, 5.75% 6/15/13	5,000		5,336
Massachusetts Gen. Oblig.:
Series A, 2.495% 5/1/37 (d)	7,000		5,825
Series C:
5% 8/1/37 (AMBAC Insured)	36,700		37,153
5.25% 8/1/22 (FSA Insured)	7,700		8,221
5.25% 8/1/23 (FSA Insured)	3,600		3,830
5.25% 8/1/24 (FSA Insured)	9,000		9,539
Massachusetts Health & Edl. Facilities Auth. Rev.:
(Blood Research Institute Proj.) Series A, 6.5% 2/1/22 (i)	3,540		3,551
(Massachusetts Gen. Hosp. Proj.) Series F, 6.25% 7/1/12 (AMBAC Insured)	1,520		1,607
(New England Med. Ctr. Hosp. Proj.) Series G, 5.375% 7/1/24 (MBIA Insured)	1,890		1,893
(South Shore Hosp. Proj.) Series F, 5.75% 7/1/29	4,455		4,370
(Tufts Univ. Proj.) Series I, 5.5% 2/15/36	10,000		10,324
Massachusetts Indl. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series A2:
0% 8/1/09	21,800		21,265
0% 8/1/10	2,000		1,869
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Massachusetts - continued
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys. Rev. Series A, 5% 7/1/10 (Escrowed to Maturity) (h)	$ 3,010		$ 3,050
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series A:
5.5% 1/1/12 (AMBAC Insured) (g)	2,000		1,968
5.5% 1/1/14 (AMBAC Insured) (g)	2,540		2,454
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev. Series A:
4.5% 8/15/35 (AMBAC Insured)	16,000		15,022
5% 8/15/23 (FSA Insured)	29,965		31,070
5% 8/15/26 (FSA Insured)	10,000		10,277
5% 8/15/30 (FSA Insured)	30,000		30,519
5% 8/15/37 (AMBAC Insured)	15,900		15,992
Massachusetts Tpk. Auth. Metropolitan Hwy. Sys. Rev.:
Series 1999 A, 5.25% 1/1/29 (AMBAC Insured)	14,400		14,447
Sr. Series A:
5% 1/1/37 (MBIA Insured)	10,000		9,900
5.125% 1/1/23 (MBIA Insured)	7,950		8,043
Massachusetts Tpk. Auth. Western Tpk. Rev. Series A, 5.55% 1/1/17 (MBIA Insured)	7,585		7,700
Massachusetts Wtr. Poll. Abatement Trust Wtr. Poll. Abatement Rev. (MWRA Ln. Prog.) Series A, 5.25% 8/1/13	90		91
Springfield Gen. Oblig. 5% 8/1/19 (MBIA Insured)	7,015		7,307
			279,765
Michigan - 1.9%
Detroit Swr. Disp. Rev.:
Series 2001 E, 5.75% 7/1/31 (Berkshire Hathaway Assurance Corp. Insured)	8,000		8,558
Series B, 5% 7/1/36 (FGIC Insured)	20,700		19,569
Detroit Wtr. Supply Sys. Rev.:
Series A:
5% 7/1/34 (MBIA Insured)	12,000		11,479
5.25% 7/1/16 (MBIA Insured)	1,685		1,797
Series B, 5.5% 7/1/35 (Berkshire Hathaway Assurance Corp. Insured) (FGIC Insured)	5,000		5,211
5.25% 7/1/15 (MBIA Insured)	2,380		2,538
DeWitt Pub. Schools 5% 5/1/21 (MBIA Insured)	1,650		1,683
Ferris State Univ. Rev. 5% 10/1/20 (MBIA Insured)	3,165		3,245
Fowlerville Cmnty. School District 5.25% 5/1/17 (FGIC Insured)	1,425		1,500
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Michigan - continued
Kent Hosp. Fin. Auth. Hosp. Facilities Rev. (Spectrum Health Proj.) Series A, 5.25%, tender 1/15/14 (d)	$ 3,000		$ 3,148
Lapeer Cmnty. Schools 5% 5/1/33 (FSA Insured)	3,400		3,455
Michigan Hosp. Fin. Auth. Rev.:
(Mercy Health Svcs. Proj.):
Series Q, 5.375% 8/15/26 (Escrowed to Maturity) (h)	4,750		4,767
Series W, 5.25% 8/15/27 (Escrowed to Maturity) (h)	4,000		4,034
(Sisters of Mercy Health Corp. Proj.) Series P, 5.375% 8/15/14 (Escrowed to Maturity) (h)	420		441
(Trinity Health Sys. Proj.) Series 2000 A, 6% 12/1/27	2,000		2,072
Michigan Tobacco Settlement Fin. Auth. Tobacco Settlement Asset Rev. Series A, 6% 6/1/34	5,000		4,436
Portage Pub. Schools 5% 5/1/21 (FSA Insured)	6,300		6,655
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Proj.):
Series M, 5.25% 11/15/31 (MBIA Insured)	7,000		7,088
6.25% 1/1/09	400		408
Three Rivers Cmnty. Schools 5% 5/1/21 (FSA Insured)	1,710		1,799
Troy School District 5% 5/1/17 (MBIA Insured)	2,000		2,125
			96,008
Minnesota - 0.9%
Maple Grove Health Care Sys. Rev.:
5% 5/1/20	1,000		1,003
5% 5/1/21	1,500		1,497
5.25% 5/1/28	3,500		3,462
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (HealthPartners Obligated Group Proj.) 6% 12/1/18	1,000		1,033
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.:
Series 2007 A, 5% 1/1/22 (AMBAC Insured)	5,000		5,083
Series A:
5% 1/1/10 (g)	2,910		2,956
5% 1/1/12 (g)	2,000		2,027
5% 1/1/35 (AMBAC Insured)	4,000		3,902
Minnesota Agric. & Econ. Dev. Board Rev. (Health Care Sys. Proj.) Series A, 6.375% 11/15/29	375		390
Saint Cloud Health Care Rev. (Saint Cloud Hosp. Group Oblig. Proj.) Series A, 5.875% 5/1/30 (FSA Insured)	8,500		8,848
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Minnesota - continued
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (HealthPartners Oblig. Group Proj.):
5.25% 5/15/18	$ 1,650		$ 1,645
5.25% 5/15/23	2,000		1,922
5.25% 5/15/36	4,250		3,805
Saint Paul Hsg. & Redev. Auth. Hosp. Rev. (Healtheast Proj.) 6% 11/15/30	2,000		2,008
Saint Paul Port Auth. Lease Rev. Series 2003 11:
5.25% 12/1/18	1,710		1,810
5.25% 12/1/19	2,850		3,003
			44,394
Mississippi - 0.1%
Hinds County Rev. (Mississippi Methodist Hosp. & Rehabilitation Proj.) 5.6% 5/1/12 (AMBAC Insured)	2,465		2,569
Mississippi Hosp. Equip. & Facilities Auth. (Mississippi Baptist Med. Ctr. Proj.) Series 2007 A, 5% 8/15/14	2,500		2,578
			5,147
Missouri - 0.5%
Missouri Dev. Fin. Board Infrastructure Facilities Rev. (City of Branson-Branson Landing Proj.) Series 2005 A, 6% 6/1/20	2,125		2,263
Missouri Envir. Impt. & Energy Resources Auth. Wtr. Poll. Cont. & Drinking Wtr. Rev. (State Revolving Fund Prog.):
Series 2002 B, 5.5% 7/1/17	1,780		1,914
Series 2003 A:
5.125% 1/1/19	5,000		5,236
5.25% 1/1/18	1,280		1,354
Missouri Health & Edl. Facilities Auth. Rev. (Ascension Health Proj.) Series 2008 C4, 3.5%, tender 11/15/09 (d)	10,000		10,026
Missouri Hsg. Dev. Commission Single Family Mtg. Rev. Series C, 5.5% 3/1/16 (g)	20		20
Saint Louis Arpt. Rev. Series 2007 B, 5% 7/1/16 (FSA Insured) (g)	3,500		3,530
			24,343
Montana - 0.4%
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (d)	10,755		10,831
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Montana - continued
Montana Board of Invt. (Payroll Tax Workers Compensation Prog.) Series 1996:
6.875% 6/1/20 (Escrowed to Maturity) (h)	$ 2,005		$ 2,067
6.875% 6/1/20 (Escrowed to Maturity) (h)	1,255		1,294
6.875% 6/1/20 (Escrowed to Maturity) (h)	3,870		3,990
Montana Board of Regents Higher Ed. Rev. (Montana State Univ. Proj.) 5% 11/15/34 (AMBAC Insured)	2,000		2,011
			20,193
Nebraska - 0.6%
Central Plains Energy Proj. Rev. (Nebraska Gas Proj.):
2.107% 12/1/10 (d)	2,500		2,385
2.297% 12/1/17 (d)	7,900		6,504
Douglas County Hosp. Auth. #3 Health Facilities Rev. (Nebraska Methodist Health Sys. Proj.) Series 2008, 5.75% 11/1/48	4,000		3,860
Omaha Pub. Pwr. District Elec. Rev. Series A:
5% 2/1/34	6,900		6,943
5% 2/1/46	10,000		10,000
			29,692
Nevada - 0.5%
Clark County Arpt. Rev. Series 2003 C:
5.375% 7/1/17 (AMBAC Insured) (g)	4,310		4,318
5.375% 7/1/19 (AMBAC Insured) (g)	1,100		1,090
5.375% 7/1/21 (AMBAC Insured) (g)	1,600		1,567
Henderson Health Care Facilities Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08	2,700		2,700
Las Vegas Valley Wtr. District Wtr. Impt. Gen. Oblig. Series 2003 B, 5.25% 6/1/17 (MBIA Insured)	6,285		6,597
Washoe County Gen. Oblig. (Reno Sparks Proj.) Series B:
0% 7/1/12 (FSA Insured)	4,605		3,975
0% 7/1/13 (FSA Insured)	4,590		3,788
0% 7/1/14 (FSA Insured)	3,000		2,356
			26,391
New Hampshire - 0.1%
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev. (United Illumination Co.) Series A, 3.65%, tender 2/1/10 (AMBAC Insured) (d)(g)	6,100		6,123
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New Jersey - 1.4%
Garden State Preservation Trust Open Space & Farmland Preservation Series 2005 A, 5.8% 11/1/19 (FSA Insured)	$ 5,100		$ 5,729
New Jersey Econ. Dev. Auth. School Facilities Construction Rev.:
Series 2005 O:
5.125% 3/1/28	6,000		6,147
5.125% 3/1/30	5,000		5,111
5.25% 3/1/21 (MBIA Insured)	2,800		2,943
5.25% 3/1/23	4,500		4,687
5.25% 3/1/25	9,900		10,282
5.25% 3/1/26	11,305		11,735
Series 2005 P, 5.125% 9/1/28	2,445		2,509
New Jersey Tpk. Auth. Tpk. Rev. Series A, 5% 1/1/25 (FSA Insured)	6,200		6,380
New Jersey Trans. Trust Fund Auth. Series B, 5.5% 12/15/21 (MBIA Insured)	5,000		5,427
North Hudson Swr. Auth. Wtr. & Swr. Rev. Series A:
5.25% 8/1/18 (FGIC Insured)	3,235		3,313
5.25% 8/1/19 (FGIC Insured)	2,735		2,790
Union County Impt. Auth. (Juvenile Detention Ctr. Facility Proj.) 5.5% 5/1/28 (FGIC Insured)	5,560		5,754
			72,807
New Mexico - 0.2%
Albuquerque Arpt. Rev.:
6.75% 7/1/09 (AMBAC Insured) (g)	1,150		1,198
6.75% 7/1/10 (AMBAC Insured) (g)	1,700		1,787
6.75% 7/1/12 (AMBAC Insured) (g)	1,935		2,087
Univ. of New Mexico Univ. Revs. Series A, 6% 6/1/21	5,340		6,077
			11,149
New York - 12.9%
Albany Indl. Dev. Agcy. Civic Facility Rev. (St. Peters Hosp. Proj.) Series 2008 A:
5.25% 11/15/16	1,955		2,000
5.25% 11/15/17	1,500		1,532
Buffalo Muni. Wtr. Fin. Auth. Series B, 5% 7/1/16 (FSA Insured)	400		433
Erie County Indl. Dev. Agcy. School Facilities Rev. (Buffalo City School District Proj.):
Series 2003:
5.75% 5/1/15 (FSA Insured)	7,000		7,684
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New York - continued
Erie County Indl. Dev. Agcy. School Facilities Rev. (Buffalo City School District Proj.): - continued
Series 2003:
5.75% 5/1/18 (FSA Insured)	$ 3,460		$ 3,744
5.75% 5/1/21 (FSA Insured)	1,575		1,686
5.75% 5/1/23 (FSA Insured)	1,750		1,873
Series 2004:
5.75% 5/1/16 (FSA Insured)	13,120		14,496
5.75% 5/1/18 (FSA Insured)	14,720		16,167
5.75% 5/1/20 (FSA Insured)	8,000		8,773
5.75% 5/1/21 (FSA Insured)	3,845		4,215
5.75% 5/1/22 (FSA Insured)	1,000		1,096
5.75% 5/1/23 (FSA Insured)	3,000		3,287
5.75% 5/1/24 (FSA Insured)	3,000		3,278
5.75% 5/1/25 (FSA Insured)	3,400		3,716
5.75% 5/1/26 (FSA Insured)	5,200		5,683
Hudson Yards Infrastructure Corp. New York Rev. Series A:
5% 2/15/47	22,600		21,348
5% 2/15/47 (FGIC Insured)	13,100		12,560
Long Island Pwr. Auth. Elec. Sys. Rev.:
Series A:
5% 12/1/25 (FGIC Insured)	5,000		5,049
5% 12/1/26 (XL Cap. Assurance, Inc. Insured)	2,600		2,608
Series B, 5% 12/1/35	2,000		1,971
Series C, 5% 9/1/35	4,000		3,941
Metropolitan Trans. Auth. Svc. Contract Rev.:
Series 2002 A, 5.75% 7/1/31 (AMBAC Insured)	3,800		3,948
Series B, 5.5% 7/1/19 (MBIA Insured)	2,000		2,126
New York City Gen. Oblig.:
Series 2000 A, 6.5% 5/15/11	420		450
Series 2003 A, 5.5% 8/1/20 (MBIA Insured)	8,000		8,475
Series 2005 G, 5.25% 8/1/16	3,525		3,824
Series A, 5.25% 11/1/14 (MBIA Insured)	1,850		1,955
Series B, 5.75% 8/1/14	2,000		2,149
Series D1, 5.125% 12/1/22	5,000		5,234
Series J, 5.5% 6/1/19	5,195		5,487
New York City Indl. Dev. Agcy. Indl. Dev. Rev. (Japan Airlines Co. Ltd. Proj.) Series 1991, 6% 11/1/15 (FSA Insured) (g)	1,175		1,183
New York City Indl. Dev. Agcy. Rev.:
(Queens Baseball Stadium Proj.) 5% 1/1/19 (AMBAC Insured)	3,850		3,990
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New York - continued
New York City Indl. Dev. Agcy. Rev.: - continued
(Yankee Stadium Proj.) 5% 3/1/31 (FGIC Insured)	$ 5,325		$ 5,240
New York City Indl. Dev. Agcy. Spl. Facilities Rev. (Terminal One Group Assoc. Proj.) 5% 1/1/09 (g)	3,100		3,136
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.:
Series 2002 A, 5.125% 6/15/34 (FSA Insured)	3,300		3,353
Series 2003 E, 5% 6/15/34	11,120		11,197
Series 2005 D:
5% 6/15/37	2,800		2,821
5% 6/15/38	15,600		15,709
5% 6/15/39	3,540		3,563
Series A, 5.125% 6/15/34 (MBIA Insured)	13,800		14,024
Series B, 5.125% 6/15/31	4,160		4,202
Series G, 5.125% 6/15/32	2,000		2,019
New York City Transitional Fin. Auth. Rev.:
Series 2003 D, 5% 2/1/31	3,500		3,533
Series 2004 C, 5% 2/1/33 (FGIC Insured)	5,000		5,060
Series A:
5.5% 11/1/26 (b)	5,050		5,308
6% 11/1/28 (b)	7,775		8,292
Series B:
5% 8/1/32	14,715		14,852
5.25% 8/1/19	2,000		2,116
5.25% 2/1/29 (b)	13,000		13,458
New York City Trust Cultural Resources Rev. (Museum of Modern Art Proj.) Series 2001 D, 5.125% 7/1/31 (AMBAC Insured)	6,000		6,087
New York Dorm. Auth. Revs.:
(City Univ. Sys. Consolidation Proj.):
Series A:
5.75% 7/1/09	4,370		4,453
5.75% 7/1/13	8,750		9,320
Series C, 7.5% 7/1/10 (FGIC Insured)	13,655		14,257
(New York & Presbyterian Hosp. Proj.) 5% 8/15/36 (FSA Insured)	2,030		2,036
(New York Univ. Hosp. Ctr. Proj.):
Series 2006 A:
5% 7/1/15	3,000		3,012
5% 7/1/16	1,000		992
Series A, 5% 7/1/14	1,895		1,917
Series B, 5.25% 7/1/24	2,400		2,280
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New York - continued
New York Dorm. Auth. Revs.: - continued
(State Univ. Edl. Facilities Proj.) Series A:
5.25% 5/15/15 (MBIA Insured)	$ 12,400		$ 13,244
5.875% 5/15/17 (FGIC Insured)	6,865		7,768
(Suffolk County Judicial Facilities Proj.) Series A, 9.5% 4/15/14 (Escrowed to Maturity) (h)	690		844
Series 2002 A, 5.75% 10/1/17 (MBIA Insured)	3,000		3,260
New York Envir. Facilities Corp. Clean Wtr. & Drinking Wtr. (New York City Muni. Wtr. Fin. Auth. Proj.) Series 2004 F, 5% 6/15/34	3,800		3,864
New York Local Govt. Assistance Corp. Series C, 5.5% 4/1/17	22,015		24,283
New York Med. Care Facilities Fin. Agcy. Rev. (Homeowner Mtg. Prog.) Series E, 6.2% 2/15/15	1,010		1,011
New York Metropolitan Trans. Auth. Rev. Series 2008 A, 5.25% 11/15/36	26,700		27,033
New York Sales Tax Asset Receivables Corp. Series A, 5.25% 10/15/27 (AMBAC Insured)	10,500		10,926
New York Thruway Auth. Gen. Rev. Series 2005 G:
5% 1/1/32 (FSA Insured)	2,900		2,953
5.25% 1/1/27 (FSA Insured)	12,500		13,134
New York Thruway Auth. Personal Income Tax Rev. Series 2007 A, 5.25% 3/15/25	3,500		3,715
New York Urban Dev. Corp. Rev. Series 2004 A2, 5.5% 3/15/21 (MBIA Insured)	14,360		16,047
Niagara Falls City Niagara County Pub. Impt. 7.5% 3/1/18 (MBIA Insured)	460		572
Syracuse Indl. Dev. Auth. Pilot Rev. (Carousel Ctr. Co. Proj.) 5% 1/1/36 (XL Cap. Assurance, Inc. Insured) (g)	19,765		17,464
Tobacco Settlement Asset Securitization Corp. Series 1, 5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (h)	7,265		7,667
Tobacco Settlement Fing. Corp.:
Series A1:
5.25% 6/1/21 (AMBAC Insured)	5,645		5,819
5.25% 6/1/22 (AMBAC Insured)	3,850		3,959
5.5% 6/1/14	11,350		11,535
5.5% 6/1/15	37,645		38,624
5.5% 6/1/17	8,100		8,374
5.5% 6/1/18 (MBIA Insured)	2,000		2,093
5.5% 6/1/19	4,050		4,234
Series C1:
5.5% 6/1/14	9,900		10,061
5.5% 6/1/15	11,700		12,004
5.5% 6/1/16	4,070		4,221
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New York - continued
Tobacco Settlement Fing. Corp.: - continued
Series C1:
5.5% 6/1/17	$ 11,500		$ 11,889
5.5% 6/1/18	20,000		20,811
5.5% 6/1/19	10,800		11,290
5.5% 6/1/20	2,700		2,816
5.5% 6/1/20 (FGIC Insured)	5,050		5,286
5.5% 6/1/22	10,065		10,441
Triborough Bridge & Tunnel Auth. Revs.:
(Convention Ctr. Proj.) Series E, 7.25% 1/1/10 (XL Cap. Assurance, Inc. Insured)	3,260		3,397
Series 2005 A, 5.125% 1/1/22	4,000		4,109
Series A, 5% 1/1/32 (MBIA Insured)	470		475
Series B:
5.2% 1/1/27 (Pre-Refunded to 1/1/22 @ 100) (h)	2,000		2,183
5.5% 1/1/30 (Pre-Refunded to 1/1/22 @ 100) (h)	4,000		4,495
Series SR, 5.5% 1/1/12 (Escrowed to Maturity) (h)	7,790		8,179
			668,278
New York & New Jersey - 0.3%
Port Auth. of New York & New Jersey 124th Series, 5% 8/1/13 (FGIC Insured) (g)	3,400		3,437
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (MBIA Insured) (g)	10,275		11,124
			14,561
North Carolina - 1.3%
Catawba County Ctfs. of Prtn. (Pub. School and Cmnty. College Proj.) 5.25% 6/1/20 (MBIA Insured)	1,800		1,890
Charlotte-Mecklenburg Hosp. Auth. Health Care Sys. Rev. Series A, 5% 1/15/20 (FSA Insured)	4,000		4,160
Dare County Ctfs. of Prtn.:
5.25% 6/1/17 (AMBAC Insured)	1,620		1,711
5.25% 6/1/18 (AMBAC Insured)	1,620		1,700
5.25% 6/1/19 (AMBAC Insured)	1,540		1,612
5.25% 6/1/22 (AMBAC Insured)	1,620		1,684
5.25% 6/1/23 (AMBAC Insured)	1,620		1,675
North Carolina Cap. Facilities Fin. Agcy. Rev. (Duke Univ. Proj.) Series A:
5% 10/1/41	1,000		1,009
5.125% 10/1/41	1,195		1,206
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
North Carolina - continued
North Carolina Ctfs. of Prtn. (Repair and Renovation Proj.) Series B, 5.25% 6/1/17	$ 3,600		$ 3,841
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.:
Series A:
5.5% 1/1/11	8,700		9,019
5.75% 1/1/26	4,000		4,050
Series C, 5.25% 1/1/09	2,500		2,527
Series D:
5.375% 1/1/10	4,525		4,638
6.7% 1/1/19	5,000		5,192
6.75% 1/1/26	7,000		7,238
North Carolina Infrastructure Fin. Corp. Ctfs. of Prtn. (North Carolina Correctional Facilities Proj.) Series A:
5% 2/1/19	2,945		3,052
5% 2/1/20	1,500		1,547
North Carolina Med. Care Cmnty. Health (Memorial Mission Hosp. Proj.):
5% 10/1/20	1,225		1,264
5% 10/1/21	5,690		5,855
North Carolina Med. Care Commission Retirement Facilities Rev. (Southminster Proj.) 5.75% 10/1/37	4,000		3,799
			68,669
North Dakota - 0.8%
Cass County Health Care Facilities Rev. Series D, 5% 2/15/40 (Assured Guaranty Corp. Insured)	5,000		4,922
Grand Forks Health Care Sys. Rev. (Altru Health Sys. Proj.):
5% 12/1/12 (Assured Guaranty Corp. Insured)	1,475		1,537
5% 12/1/14 (Assured Guaranty Corp. Insured)	1,675		1,747
Mercer County Poll. Cont. Rev. (Antelope Valley Station/Basin Elec. Pwr. Coop. Proj.) 7.2% 6/30/13 (AMBAC Insured)	26,000		28,727
Ward County Health Care Facility Rev. (Trinity Med. Ctr. Proj.):
5.125% 7/1/19	2,765		2,687
5.25% 7/1/15	1,300		1,317
			40,937
Ohio - 1.5%
Buckeye Tobacco Settlement Fing. Auth. Series A-2:
5.75% 6/1/34	15,000		12,858
5.875% 6/1/47	13,000		10,847
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Ohio - continued
Buckeye Tobacco Settlement Fing. Auth. Series A-2: - continued
6.5% 6/1/47	$ 16,900		$ 15,503
Cleveland Parking Facilities Rev. 5.25% 9/15/18 (FSA Insured)	2,000		2,201
Lake County Hosp. Facilities Rev. (Lake Hosp. Sys., Inc. Proj.) Series 2008 C, 6% 8/15/43	5,000		4,850
Montgomery County Rev. (Catholic Health Initiatives Proj.) Series A:
6% 12/1/19	4,905		5,114
6% 12/1/19 (Escrowed to Maturity) (h)	5,095		5,412
6% 12/1/26 (Escrowed to Maturity) (h)	10,000		10,440
Ohio Gen. Oblig. (Higher Ed. Cap. Facilities Proj.) Series B, 5% 2/1/22	4,045		4,178
Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B:
6.375% 11/15/30	1,005		1,039
6.375% 11/15/30 (Pre-Refunded to 11/15/10 @ 101) (h)	1,165		1,266
Univ. of Cincinnati Ctfs. of Prtn. 5.125% 6/1/28 (MBIA Insured)	3,750		3,779
			77,487
Oklahoma - 0.4%
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (h)	2,080		1,836
Oklahoma City Pub. Property Auth. Hotel Tax Rev.:
5.25% 10/1/29 (FGIC Insured)	4,000		4,106
5.5% 10/1/22 (FGIC Insured)	2,845		3,005
5.5% 10/1/23 (FGIC Insured)	3,005		3,162
5.5% 10/1/24 (FGIC Insured)	3,175		3,333
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.):
5% 2/15/14	1,530		1,609
6% 2/15/29	3,755		3,809
Tulsa County Indl. Auth. Health Care Rev. 5% 12/15/19	1,680		1,733
			22,593
Oregon - 0.3%
Clackamas County School District #62C, Oregon City Series 2004, 5% 6/15/19 (FSA Insured)	3,395		3,551
Clackamas County School District #7J:
5.25% 6/1/23 (FSA Insured)	2,000		2,184
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Oregon - continued
Clackamas County School District #7J: - continued
5.25% 6/1/24 (FSA Insured)	$ 2,605		$ 2,841
Deschutes County Hosp. Facility Auth. Hosp. Rev. (Cascade Healthcare Cmnty., Inc. Proj.) Series 2005 B, 5.375% 1/1/35 (AMBAC Insured)	3,000		2,964
Port Morrow Poll. Cont. Rev. (Pacific Northwest Proj.) Series A:
8% 7/15/08	480		481
8% 7/15/09	540		555
8% 7/15/10	605		619
8% 7/15/11	385		393
Washington County School District #15:
5.5% 6/15/20 (FSA Insured)	1,770		1,979
5.5% 6/15/21 (FSA Insured)	1,060		1,185
			16,752
Pennsylvania - 1.9%
Allegheny County Arpt. Auth. Rev. (Pittsburg Int'l. Arpt. Proj.) Series B, 5% 1/1/16 (MBIA Insured) (g)	3,000		2,978
Allegheny County Hosp. Dev. Auth. Rev. (Pittsburgh Med. Ctr. Proj.) Series B, 5% 6/15/16	1,875		1,956
Annville-Cleona School District:
5.5% 3/1/24 (FSA Insured)	1,350		1,449
5.5% 3/1/25 (FSA Insured)	1,400		1,499
Canon McMillan School District Series 2001 B, 5.75% 12/1/33 (FGIC Insured)	3,000		3,098
Chester County Health & Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series B, 5.25% 5/15/22 (AMBAC Insured)	4,400		4,448
Easton Area School District Series 2006, 7.75% 4/1/25 (FSA Insured)	4,800		5,793
Mifflin County School District 7.75% 9/1/30 (XL Cap. Assurance, Inc. Insured)	3,400		4,102
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A:
6% 6/1/22 (AMBAC Insured)	2,000		2,274
6.1% 6/1/12 (AMBAC Insured)	3,000		3,271
6.125% 6/1/14 (AMBAC Insured)	5,230		5,845
Northumberland County Auth. Commonwealth Lease Rev. (State Correctional Facilities Proj.) 0% 10/15/13 (Escrowed to Maturity) (h)	11,455		9,374
Pennsylvania Convention Ctr. Auth. Rev. Series A, 6.7% 9/1/16 (Escrowed to Maturity) (h)	2,000		2,231
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Pennsylvania - continued
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev.:
(Amtrak Proj.) Series 2001 A, 6.375% 11/1/41 (g)	$ 8,700		$ 8,738
(Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (d)(g)	5,600		5,560
Pennsylvania Econ. Dev. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series 2004 A, 3.95%, tender 11/1/09 (d)(g)	5,000		4,931
Pennsylvania Higher Edl. Facilities Auth. Rev. (Univ. of Pennsylvania Health Systems Proj.) Series A, 5% 8/15/16 (AMBAC Insured)	3,600		3,835
Philadelphia Gas Works Rev.:
(1975 Gen. Ordinance Proj.) Seventeenth Series, 5.375% 7/1/20 (FSA Insured)	4,000		4,213
(1998 Gen. Ordinance Proj.):
Fifth Series A1, 5% 9/1/33 (FSA Insured)	4,695		4,747
Seventh Series, 5% 10/1/37 (AMBAC Insured)	8,900		8,517
Philadelphia Gen. Oblig.:
Series 2003 A, 5% 2/15/12 (XL Cap. Assurance, Inc. Insured)	1,000		1,037
Series 2008 A, 5.25% 12/15/32 (FSA Insured)	2,500		2,575
Philadelphia Redev. Auth. Rev. (Philadelphia Neighborhood Transformation Initiative Proj.) Series 2005 C, 5% 4/15/31 (FGIC Insured)	3,000		2,840
Philadelphia School District Series 2005 A, 5% 8/1/22 (AMBAC Insured)	1,675		1,703
			97,014
Puerto Rico - 0.9%
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev.:
Series 1998, 5.75% 7/1/22 (CIFG North America Insured)	2,300		2,359
5.75% 7/1/19 (FGIC Insured)	3,240		3,342
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series C, 5.5% 7/1/21 (FGIC Insured)	3,000		3,047
Puerto Rico Govt. Dev. Bank:
Series B, 5% 12/1/12	5,000		5,119
Series C, 5.25% 1/1/15 (g)	5,000		5,105
Puerto Rico Pub. Bldg. Auth. Rev.:
Series M2:
5.5%, tender 7/1/17 (AMBAC Insured) (d)	4,600		4,705
5.75%, tender 7/1/17 (d)	8,500		8,795
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Puerto Rico - continued
Puerto Rico Pub. Bldg. Auth. Rev.: - continued
Series N:
5.5% 7/1/21	$ 5,000		$ 5,121
5.5% 7/1/22	3,250		3,322
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev. Series A:
0% 8/1/41 (FGIC Insured)	20,300		2,791
0% 8/1/54 (AMBAC Insured)	51,800		3,538
			47,244
Rhode Island - 0.3%
Rhode Island Health & Edl. Bldg. Corp. Higher Ed. Facilities Rev.:
(Lifespan Corp. Proj.) Series A:
5% 5/15/11	1,680		1,733
5% 5/15/13 (FSA Insured)	4,000		4,191
(Univ. of Rhode Island Univ. Revs. Proj.) Series A:
5.25% 9/15/15 (AMBAC Insured)	1,725		1,853
5.25% 9/15/16 (AMBAC Insured)	1,815		1,938
5.25% 9/15/18 (AMBAC Insured)	1,005		1,060
5.5% 9/15/24 (AMBAC Insured)	3,400		3,573
			14,348
South Carolina - 0.9%
Greenwood Fifty School Facilities Installment:
5% 12/1/18 (Assured Guaranty Corp. Insured)	3,930		4,207
5% 12/1/19 (Assured Guaranty Corp. Insured)	2,375		2,525
Lexington County Health Svcs. District, Inc. Hosp. Rev.:
5% 11/1/18	1,090		1,100
5% 11/1/19	1,000		1,004
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5.25% 12/1/18	1,540		1,611
Richland County Hosp. Facilities Rev. (Cmnty. Provider Pooled Ln. Prog.) Series A, 7.125% 7/1/17 (Escrowed to Maturity) (h)	1,250		1,412
Rock Hill Util. Sys. Rev. Series 2003 A:
5.375% 1/1/17 (FSA Insured)	2,100		2,247
5.375% 1/1/23 (FSA Insured)	1,025		1,070
South Carolina Jobs Econ. Dev. Auth. Health Facilities Rev. (Bishop Gadsden Proj.):
5% 4/1/15	1,000		988
5% 4/1/24	4,000		3,672
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
South Carolina - continued
South Carolina Jobs Econ. Dev. Auth. Hosp. Facilities Rev. (Palmetto Health Alliance Proj.) Series A, 7.375% 12/15/21 (Pre-Refunded to 12/15/10 @ 102) (h)	$ 4,000		$ 4,495
South Carolina Pub. Svc. Auth. Rev.:
Series 2005 B, 5% 1/1/19 (MBIA Insured)	2,500		2,631
Series A, 5% 1/1/36 (MBIA Insured)	5,000		5,037
Sumter Two School Facilities, Inc. Rev.:
5% 12/1/18 (Assured Guaranty Corp. Insured)	1,000		1,054
5% 12/1/19 (Assured Guaranty Corp. Insured)	2,080		2,179
Univ. of South Carolina Athletic Facilities Rev. Series 2008 A, 5.5% 5/1/38	7,355		7,655
York County Wtr. & Swr. Rev. 5.25% 12/1/30 (MBIA Insured)	1,120		1,146
			44,033
South Dakota - 0.0%
South Dakota Lease Rev. Series A, 6.625% 9/1/12 (FSA Insured)	1,000		1,081
Tennessee - 0.8%
Clarksville Natural Gas Acquisition Corp. Gas Rev.:
5% 12/15/12	4,500		4,387
5% 12/15/13	8,000		7,735
5% 12/15/14	3,870		3,709
Knox County Health Edl. & Hsg. Facilities Board Hosp. Facilities Rev. (Fort Sanders Alliance Proj.) Series C:
5.25% 1/1/15 (MBIA Insured)	3,310		3,473
5.75% 1/1/14 (MBIA Insured)	2,000		2,146
7.25% 1/1/10 (MBIA Insured)	2,660		2,818
Knox County Health Edl. & Hsg. Facilities Board Rev. (Univ. Health Sys. Proj.) 5% 4/1/15	5,245		5,326
Memphis-Shelby County Arpt. Auth. Arpt. Rev.:
Series A:
6.25% 2/15/09 (MBIA Insured) (g)	1,500		1,526
6.25% 2/15/10 (MBIA Insured) (g)	1,000		1,031
6.25% 2/15/11 (MBIA Insured) (g)	1,415		1,476
Series B, 6.5% 2/15/09 (MBIA Insured) (g)	255		262
Metropolitan Govt. Nashville & Davidson County Wtr. & Swr. Sys. Rev. 7.7% 1/1/12 (FGIC Insured)	5,600		6,087
			39,976
Texas - 11.7%
Abilene Independent School District:
5% 2/15/18	2,000		2,104
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Abilene Independent School District: - continued
5% 2/15/23	$ 3,205		$ 3,298
Aldine Independent School District (School Bldg. Proj.) 5.25% 2/15/32	3,100		3,191
Aledo Independent School District (School Bldg. Proj.) Series A, 5.125% 2/15/33	2,775		2,802
Argyle Independent School District 5.25% 8/15/40 (FSA Insured)	1,745		1,789
Arlington Gen. Oblig. 5% 8/15/18 (FSA Insured)	1,215		1,266
Austin Cmnty. College District Rev. (Convention Ctr. Proj.) Series B, 0% 2/1/22 (AMBAC Insured)	2,900		1,448
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B:
5.75% 1/1/24	1,405		1,312
5.75% 1/1/34	1,500		1,330
Austin Util. Sys. Rev.:
0% 5/15/17 (FGIC Insured)	9,200		6,036
0% 5/15/18 (FGIC Insured)	5,000		3,086
Austin Wtr. & Wastewtr. Sys. Rev. Series A, 5% 5/15/31 (AMBAC Insured)	4,690		4,728
Bastrop Independent School District:
5.25% 2/15/37	2,700		2,756
5.25% 2/15/42	5,000		5,093
Bexar Metropolitan Wtr. District Wtrwks. Sys. Rev. 5.375% 5/1/20 (FSA Insured)	220		232
Birdville Independent School District 0% 2/15/13	13,690		11,470
Boerne Independent School District 5.25% 2/1/35	11,000		11,210
Canyon Reg'l. Wtr. Auth. Contract Rev. (Wells Ranch Proj.):
5% 8/1/19 (AMBAC Insured)	1,695		1,781
5% 8/1/20 (AMBAC Insured)	1,780		1,850
Clint Independent School District:
5.5% 8/15/19	200		214
5.5% 8/15/19 (Pre-Refunded to 8/15/12 @ 100) (h)	690		748
5.5% 8/15/20	210		224
5.5% 8/15/20 (Pre-Refunded to 8/15/12 @ 100) (h)	825		894
5.5% 8/15/21	220		234
5.5% 8/15/21 (Pre-Refunded to 8/15/12 @ 100) (h)	855		927
Conroe Independent School District 0% 2/15/11	1,500		1,369
Coppell Independent School District 0% 8/15/20	2,000		1,122
Corpus Christi Util. Sys. Rev.:
5.25% 7/15/18 (FSA Insured)	3,305		3,566
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Corpus Christi Util. Sys. Rev.: - continued
5.25% 7/15/19 (FSA Insured)	$ 4,000		$ 4,288
Corsicana Independent School District 5.125% 2/15/34	3,325		3,363
Crowley Independent School District 5.25% 8/1/33	4,000		4,092
Cypress-Fairbanks Independent School District Series A:
0% 2/15/12	20,900		18,279
0% 2/15/13	6,425		5,383
0% 2/15/14	11,475		9,161
0% 2/15/16	9,700		7,010
Dallas Area Rapid Transit Sales Tax Rev. 5.25% 12/1/38	5,000		5,125
Dallas Fort Worth Int'l. Arpt. Rev.:
Series A:
5% 11/1/15 (XL Cap. Assurance, Inc. Insured) (g)	9,900		9,936
5.25% 11/1/10 (MBIA Insured) (g)	2,150		2,190
5.25% 11/1/12 (MBIA Insured) (g)	5,820		5,894
5% 11/1/13 (XL Cap. Assurance, Inc. Insured) (g)	2,665		2,641
5% 11/1/14 (XL Cap. Assurance, Inc. Insured) (g)	2,625		2,591
5% 11/1/17 (XL Cap. Assurance, Inc. Insured) (g)	4,325		4,236
Del Mar College District 5.25% 8/15/20 (FGIC Insured)	2,960		3,089
Denton Independent School District 5% 8/15/33	11,120		11,140
DeSoto Independent School District 0% 8/15/20	3,335		1,866
Duncanville Independent School District 5.65% 2/15/28	30		32
El Paso Independent School District 5.25% 8/15/31	3,220		3,304
Freer Independent School District 5.25% 8/15/37	4,215		4,307
Frisco Independent School District:
Series C:
5% 8/15/22	2,000		2,069
5% 8/15/26	3,765		3,846
5.375% 8/15/17	2,715		2,889
Gainesville Independent School District 5.25% 2/15/36	1,900		1,937
Garland Wtr. & Swr. Rev. 5.25% 3/1/23 (AMBAC Insured)	1,315		1,374
Grand Prairie Independent School District:
Series A, 5% 2/15/20	2,000		2,101
0% 2/15/16	3,775		2,732
Guadalupe-Blanco River Auth. Contract Rev. (Western Canyon Reg'l. Wtr. Supply Proj.):
5.25% 4/15/15 (MBIA Insured)	1,570		1,669
5.25% 4/15/16 (MBIA Insured)	1,680		1,781
5.25% 4/15/17 (MBIA Insured)	2,295		2,432
5.25% 4/15/18 (MBIA Insured)	1,915		2,029
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Guadalupe-Blanco River Auth. Contract Rev. (Western Canyon Reg'l. Wtr. Supply Proj.): - continued
5.25% 4/15/19 (MBIA Insured)	$ 1,000		$ 1,053
5.25% 4/15/20 (MBIA Insured)	1,565		1,633
Harlandale Independent School District:
Series 2005, 5.7% 8/15/30	100		104
5.5% 8/15/35	45		46
6% 8/15/16	35		37
Harris County Gen. Oblig.:
Series 1996, 0% 10/1/13 (MBIA Insured)	5,550		4,481
0% 10/1/14 (MBIA Insured)	11,000		8,439
0% 8/15/25 (MBIA Insured)	3,000		1,213
0% 8/15/28 (MBIA Insured)	5,000		1,666
Harris County Hosp. District Mtg. Rev.:
7.4% 2/15/10 (AMBAC Insured)	620		640
7.4% 2/15/10 (Escrowed to Maturity) (h)	170		173
Houston Arpt. Sys. Rev. Series A:
5.625% 7/1/20 (FSA Insured) (g)	2,000		2,034
5.625% 7/1/21 (FSA Insured) (g)	3,350		3,401
Houston Independent School District 0% 8/15/13	9,835		8,071
Humble Independent School District:
Series 2000, 0% 2/15/17	3,480		2,394
Series 2005 B, 5.25% 2/15/22 (FGIC Insured)	1,995		2,082
0% 2/15/16	3,000		2,176
Hurst Euless Bedford Independent School District:
0% 8/15/11	3,620		3,243
0% 8/15/12	5,105		4,377
0% 8/15/13	3,610		2,963
Katy Independent School District:
Series A, 5% 2/15/16	2,500		2,620
0% 8/15/11	4,170		3,736
Keller Independent School District Series 1996 A, 0% 8/15/17	2,000		1,337
Kermit Independent School District 5.25% 2/15/37	4,130		4,216
Killeen Independent School District:
5.25% 2/15/17	2,105		2,212
5.25% 2/15/18	1,325		1,390
Kingsville Independent School District 5.25% 2/15/37	3,650		3,726
La Joya Independent School District 5.25% 2/15/23	2,940		3,072
Lamar Consolidated Independent School District 5% 2/15/18	2,000		2,131
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Lampasas Independent School District (School Bldg. Proj.) 5.25% 2/15/32	$ 4,000		$ 4,093
Lewisville Independent School District 5% 8/15/16	305		316
Liberty Hill Independent School District (School Bldg. Proj.) 5.25% 8/1/35	8,615		8,782
Little Elm Independent School District 5.5% 8/15/21	60		63
Lower Colorado River Auth. Rev.:
5% 5/15/31 (AMBAC Insured)	1,565		1,569
5.25% 5/15/18 (AMBAC Insured)	1,875		1,984
5.25% 5/15/18 (Pre-Refunded to 5/15/13 @ 100) (h)	5		5
5.75% 5/15/37	5,300		5,411
Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission Svcs. Corp. Proj.) Series C:
5% 5/15/33 (AMBAC Insured)	5,495		5,495
5.25% 5/15/18 (AMBAC Insured)	1,000		1,058
5.25% 5/15/19 (AMBAC Insured)	1,000		1,051
5.25% 5/15/20 (AMBAC Insured)	2,000		2,083
Lubbock Gen. Oblig. (Wtrwks. Sys. Surplus Proj.) 5% 2/15/17 (FSA Insured)	2,270		2,403
Magnolia Independent School District 5% 8/15/22	3,590		3,715
Mansfield Independent School District 5.5% 2/15/18	40		43
Mesquite Independent School District 5.375% 8/15/11	395		396
Midlothian Independent School District 0% 2/15/10	1,525		1,453
Midway Independent School District 0% 8/15/19	3,600		2,143
Montgomery County Gen. Oblig.:
Series A, 5.625% 3/1/20 (FSA Insured)	495		529
Series B, 5%, tender 9/1/10 (FSA Insured) (d)	3,700		3,859
Navasota Independent School District:
5.25% 8/15/34 (FGIC Insured)	2,275		2,278
5.5% 8/15/25 (FGIC Insured)	1,675		1,728
New Caney Independent School District 5.25% 2/15/37	5,000		5,109
North Central Texas Health Facilities Dev. Corp. Rev. Series 1997 B, 5.75% 2/15/14 (Escrowed to Maturity) (h)	5,215		5,780
North Forest Independent School District Series B, 5% 8/15/18 (FSA Insured)	1,470		1,562
North Texas Muni. Wtr. District Wtr. Sys. Rev. 5% 9/1/35 (MBIA Insured)	4,000		4,010
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series 2003 A, 5% 1/1/28 (AMBAC Insured)	7,175		7,206
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
North Texas Tollway Auth. Rev.:
Series A:
6% 1/1/23	$ 4,800		$ 5,077
6% 1/1/24	2,000		2,108
Series E3, 5.75%, tender 1/1/16 (d)	4,000		4,170
Pflugerville Gen. Oblig. 5.5% 8/1/22 (AMBAC Insured)	1,000		1,053
Pleasant Grove Independent School District 5.25% 2/15/32	3,355		3,441
Prosper Independent School District:
5.125% 8/15/30	3,110		3,165
5.375% 8/15/37	15,255		15,896
5.75% 8/15/29	1,250		1,344
Robstown Independent School District 5.25% 2/15/29	3,165		3,259
Rockdale Independent School District 5.25% 2/15/37	5,100		5,196
Rockwall Independent School District:
5.375% 2/15/19	25		26
5.375% 2/15/20	25		26
5.375% 2/15/21	30		31
Round Rock Independent School District 0% 8/15/11 (MBIA Insured)	4,300		3,832
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series B, 5.75%, tender 11/1/11 (d)(g)	16,000		15,048
San Antonio Arpt. Sys. Rev.:
5% 7/1/15 (FSA Insured) (g)	2,510		2,538
5% 7/1/17 (FSA Insured) (g)	2,765		2,759
5% 7/1/17 (FSA Insured) (g)	2,385		2,371
5.25% 7/1/19 (FSA Insured) (g)	2,635		2,646
5.25% 7/1/20 (FSA Insured) (g)	3,215		3,226
5.25% 7/1/20 (FSA Insured) (g)	2,775		2,775
San Antonio Gen. Oblig.:
Series 2006, 5.5% 2/1/15	365		388
5.5% 2/1/15 (Pre-Refunded to 2/1/12 @ 100) (h)	25		27
San Antonio Wtr. Sys. Rev.:
Series A, 5% 5/15/32 (FSA Insured)	1,550		1,565
6.5% 5/15/10 (Escrowed to Maturity) (h)	300		316
San Marcos Consolidated Independent School District:
5% 8/1/17	1,175		1,239
5% 8/1/19	1,450		1,512
5% 8/1/22	1,680		1,730
5% 8/1/23	1,760		1,807
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Seminole Independent School District Series A:
5% 2/15/19	$ 2,780		$ 2,941
5% 2/15/20	2,985		3,136
Snyder Independent School District:
5.25% 2/15/21 (AMBAC Insured)	1,035		1,081
5.25% 2/15/22 (AMBAC Insured)	1,090		1,134
5.25% 2/15/30 (AMBAC Insured)	1,800		1,832
Socorro Independent School District 5.375% 8/15/18	60		63
South San Antonio Independent School District:
5% 8/15/17	1,025		1,064
5% 8/15/35	2,000		2,008
Spring Branch Independent School District 5.375% 2/1/18	1,250		1,303
Texas Gen. Oblig.:
(College Student Ln. Prog.) 5% 8/1/12 (g)	6,655		6,904
Series A, 5% 8/1/19	2,200		2,335
5.75% 8/1/26	3,320		3,520
Texas Muni. Pwr. Agcy. Rev. 0% 9/1/16 (MBIA Insured)	18,715		12,964
Texas Pub. Fin. Auth. Bldg. Rev. Series 1990:
0% 2/1/12 (MBIA Insured)	4,400		3,827
0% 2/1/14 (MBIA Insured)	6,910		5,465
Texas Tpk. Auth. Central Texas Tpk. Sys. Rev.:
5.5% 8/15/39 (AMBAC Insured)	37,550		38,030
5.75% 8/15/38 (AMBAC Insured)	27,550		28,360
Texas Wtr. Dev. Board Rev. Series B:
5.375% 7/15/16	5,000		5,143
5.625% 7/15/21	5,900		6,057
Trinity River Auth. Rev. (Tarrant County Wtr. Proj.) 5% 2/1/17 (MBIA Insured)	4,930		5,166
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.):
5.75% 7/1/27 (Pre-Refunded to 7/1/13 @ 100) (h)	1,000		1,101
6% 7/1/31 (Pre-Refunded to 7/1/12 @ 100) (h)	6,225		6,825
Waller Independent School District:
5.5% 2/15/24	3,085		3,339
5.5% 2/15/37	4,920		5,163
Weatherford Independent School District:
0% 2/15/22 (Pre-Refunded to 2/15/10 @ 45.084) (h)	2,980		1,280
0% 2/15/26 (Pre-Refunded to 2/15/10 @ 34.41) (h)	2,985		978
0% 2/15/33	6,985		1,828
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
White Settlement Independent School District:
5.75% 8/15/30	$ 2,890		$ 3,106
5.75% 8/15/34	3,000		3,224
Williamson County Gen. Oblig.:
5.5% 2/15/18 (FSA Insured)	60		63
5.5% 2/15/20 (FSA Insured)	65		68
Wylie Independent School District 0% 8/15/20	1,790		1,004
			606,539
Utah - 0.6%
Intermountain Pwr. Agcy. Pwr. Supply Rev. Series A, 6% 7/1/16 (Escrowed to Maturity) (h)	9,205		9,318
Salt Lake City Hosp. Rev. (Intermountain Health Care Hosp., Inc. Proj.) Series A, 8.125% 5/15/15 (Escrowed to Maturity) (h)	2,645		3,047
Utah Associated Muni. Pwr. Sys. Rev. (Payson Pwr. Proj.) Series A:
5.25% 4/1/16 (FSA Insured)	3,590		3,814
5.25% 4/1/17 (FSA Insured)	4,335		4,584
Utah Transit Auth. Sales Tax Rev. Series 2008 A, 5.25% 6/15/38	8,200		8,463
			29,226
Vermont - 0.3%
Vermont Edl. & Health Bldg. Fin. Agcy. Rev.:
(Fletcher Allen Health Care, Inc. Proj.) Series 2000 A:
5.75% 12/1/18 (AMBAC Insured)	3,100		3,233
6.125% 12/1/27 (AMBAC Insured)	8,600		8,653
(Middlebury College Proj.) Series 2006 A, 5% 10/31/46	4,075		4,047
			15,933
Virginia - 0.1%
Peninsula Ports Auth. Hosp. Facilities Rev. (Whittaker Memorial Hosp. Proj.) 8.7% 8/1/23	1,410		1,517
Virginia Beach Dev. Auth. Hosp. Facilities Rev. (Virginia Beach Gen. Hosp. Proj.):
6% 2/15/12 (AMBAC Insured)	2,150		2,329
6% 2/15/13 (AMBAC Insured)	1,460		1,602
Virginia Hsg. Dev. Auth. Multi-family Hsg. Rev. Series I, 5.95% 5/1/09 (g)	1,890		1,892
			7,340
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Washington - 5.1%
Central Puget Sound Reg'l. Trans. Auth. Sales & Use Tax Rev. Series 2007 A, 5% 11/1/27 (AMBAC Insured)	$ 3,500		$ 3,563
Chelan County Pub. Util. District #1 Columbia River-Rock Island Hydro-Elec. Sys. Rev. Series A, 0% 6/1/17 (MBIA Insured)	7,200		4,694
Chelan County Pub. Util. District #1 Rev. Series 2005 A, 5.125%, tender 7/1/15 (FGIC Insured) (d)(g)	2,430		2,528
Chelan County School District #246, Wenatchee 5.5% 12/1/19 (FSA Insured)	3,535		3,769
Clark County School District #37, Vancouver Series C, 0% 12/1/19 (FGIC Insured)	2,030		1,161
Energy Northwest Elec. Rev.:
(#1 Proj.) Series 2006 A, 5% 7/1/15	8,000		8,554
(#3 Proj.) Series 2002 B, 6% 7/1/16 (AMBAC Insured)	28,000		30,209
Grant County Pub. Util. District #2 Wanapum Hydro Elec. Rev. Series B:
5.25% 1/1/18 (FGIC Insured) (g)	1,590		1,617
5.25% 1/1/20 (FGIC Insured) (g)	1,760		1,767
5.25% 1/1/23 (FGIC Insured) (g)	2,055		2,024
Kent Spl. Events Ctr. Pub. Facilities District Rev.:
5.25% 12/1/25 (FSA Insured)	2,575		2,717
5.25% 12/1/36 (FSA Insured)	9,180		9,444
King County Gen. Oblig.:
(Pub. Trans. Proj.) Series 2004, 5.125% 6/1/34 (MBIA Insured)	5,200		5,257
(Swr. Proj.) Series 2005, 5% 1/1/26 (FGIC Insured)	5,000		5,111
King County Swr. Rev. Series B, 5.125% 1/1/33 (FSA Insured)	22,390		22,650
Mead School District #354, Spokane County 5.375% 12/1/19 (FSA Insured)	2,575		2,750
Pierce County School District #10 Tacoma Series A, 5% 12/1/18 (FSA Insured)	4,000		4,233
Port of Seattle Rev. Series D:
5.75% 11/1/13 (FGIC Insured) (g)	1,500		1,544
5.75% 11/1/14 (FGIC Insured) (g)	3,055		3,132
5.75% 11/1/16 (FGIC Insured) (g)	2,250		2,287
Snohomish County School District #4, Lake Stevens 5.125% 12/1/19 (FGIC Insured)	1,875		1,949
Spokane Pub. Facilities District Hotel/Motel Tax & Sales/Use Tax Rev.:
5.75% 12/1/19 (MBIA Insured)	2,000		2,189
5.75% 12/1/21 (MBIA Insured)	2,000		2,176
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Washington - continued
Thurston & Pierce Counties Cmnty. Schools 5.25% 12/1/17 (FSA Insured)	$ 2,000		$ 2,119
Washington Gen. Oblig.:
Series 2001 C:
5.25% 1/1/16	7,070		7,331
5.25% 1/1/26 (FSA Insured)	15,800		16,219
Series B, 5% 7/1/28 (FSA Insured)	7,800		7,943
Series E, 5% 1/1/29 (MBIA Insured)	3,090		3,121
Series R 97A:
0% 7/1/17	7,045		4,627
0% 7/1/19 (MBIA Insured)	9,100		5,390
Washington Health Care Facilities Auth. Rev.:
(Childrens Hosp. Reg'l. Med. Ctr. Proj.) Series 2008 C, 5.5% 10/1/35	10,000		10,124
(MultiCare Health Sys. Proj.) Series 2007 B, 5.5% 8/15/38 (FSA Insured)	7,000		7,169
(Providence Health Systems Proj.):
Series 2001 A, 5.5% 10/1/12 (MBIA Insured)	5,455		5,745
Series 2006 D, 5.25% 10/1/33 (FSA Insured)	2,000		2,010
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #1 Rev. (Bonneville Pwr. Administration Proj.) Series B, 7% 7/1/08	1,000		1,000
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev.:
Series A, 0% 7/1/11 (Escrowed to Maturity) (h)	1,350		1,217
5.4% 7/1/12	56,550		60,467
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #3 Rev.:
Series A, 0% 7/1/12 (MBIA Insured)	4,000		3,444
0% 7/1/10 (MBIA Insured)	2,800		2,618
			265,869
Wisconsin - 0.4%
Badger Tobacco Asset Securitization Corp.:
6.125% 6/1/27	4,915		4,846
6.375% 6/1/32	2,925		2,873
Douglas County Gen. Oblig. 5.5% 2/1/19 (FGIC Insured)	1,035		1,092
Wisconsin Health & Edl. Facilities Auth. Rev.:
(Children's Hosp. of Wisconsin Proj.) 5.25% 8/15/22	2,000		2,036
(Marshfield Clinic Proj.) Series A, 5.375% 2/15/34	3,250		3,038
(Ministry Health Care Proj.) Series 2008, 5% 8/1/34 (FSA Insured)	3,100		3,021
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Wisconsin - continued
Wisconsin Health & Edl. Facilities Auth. Rev.: - continued
(Wheaton Franciscan Healthcare Sys. Proj.) Series 2003 A:
5.5% 8/15/15	$ 1,480		$ 1,499
5.5% 8/15/16	1,545		1,554
			19,959
Wyoming - 0.1%
Gillette Spl. Purp. Wtr. & Swr. Utils. Sys. Rev. 7.7% 12/1/10 (Escrowed to Maturity) (h)	4,685		5,114
TOTAL MUNICIPAL BONDS (Cost $5,194,871)		5,145,248
Money Market Funds - 0.0%
	Shares
Fidelity Municipal Cash Central Fund, 1.68% (e)(f) (Cost $139)	138,900		139
TOTAL INVESTMENT PORTFOLIO - 99.7% (Cost $5,195,010)			5,145,387
NET OTHER ASSETS - 0.3%			16,462
NET ASSETS - 100%		$ 5,161,849

Legend

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

(b) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(c) Security or a portion of the 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) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund.

(f) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

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

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

(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,551,000 or 0.1% of net assets.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost (000s)
Massachusetts Health & Edl. Facilities Auth. Rev. (Blood Research Institute Proj.) Series A, 6.5% 2/1/22	9/3/92	$ 3,337

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned (Amounts in thousands)
Fidelity Municipal Cash Central Fund	$ 2

Other Information

The following is a summary of the inputs used, as of June 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date: (Amounts in thousands)
Description	Total	Level 1	Level 2	Level 3
Investments in Securities	$ 5,145,387	$ 139	$ 5,145,248	$ -

Other Information

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

General Obligations	40.9%
Special Tax	9.8%
Health Care	8.7%
Water & Sewer	9.5%
Transportation	9.8%
Electric Utilities	9.8%
Others* (individually less than 5%)	11.5%
	100.0%

*Includes cash equivalents and
net other assets

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, 2008 (Unaudited)
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $5,194,871)	$ 5,145,248
Fidelity Central Funds (cost $139)	139
Total Investments (cost $5,195,010)		$ 5,145,387
Cash		1,753
Receivable for investments sold		24,506
Receivable for fund shares sold		6,104
Interest receivable		68,446
Prepaid expenses		7
Other receivables		162
Total assets		5,246,365
Liabilities
Payable for investments purchased on a delayed delivery basis	$ 60,890
Payable for fund shares redeemed	13,882
Distributions payable	6,120
Accrued management fee	1,586
Other affiliated payables	1,960
Other payables and accrued expenses	78
Total liabilities		84,516
Net Assets		$ 5,161,849
Net Assets consist of:
Paid in capital		$ 5,196,073
Undistributed net investment income		3,868
Accumulated undistributed net realized gain (loss) on investments		11,531
Net unrealized appreciation (depreciation) on investments		(49,623)
Net Assets, for 420,625 shares outstanding		$ 5,161,849
Net Asset Value, offering price and redemption price per share ($5,161,849 ÷ 420,625 shares)		$ 12.27

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

Semiannual Report

Statement of Operations

Amounts in thousands		Six months ended June 30, 2008 (Unaudited)
Investment Income
Interest		$ 118,219
Income from Fidelity Central Funds		2
Total income		118,221
Expenses
Management fee	$ 9,482
Transfer agent fees	2,014
Accounting fees and expenses	333
Custodian fees and expenses	38
Independent trustees' compensation	11
Registration fees	103
Audit	38
Legal	7
Miscellaneous	30
Total expenses before reductions	12,056
Expense reductions	(257)	11,799
Net investment income		106,422
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers		14,658
Change in net unrealized appreciation (depreciation) on investment securities		(138,037)
Net gain (loss)		(123,379)
Net increase (decrease) in net assets resulting from operations		$ (16,957)

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

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Financial Statements - continued

Statement of Changes in Net Assets

Amounts in thousands	Six months ended June 30, 2008 (Unaudited)	Year ended December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 106,422	$ 196,163
Net realized gain (loss)	14,658	31,462
Change in net unrealized appreciation (depreciation)	(138,037)	(82,162)
Net increase (decrease) in net assets resulting from operations	(16,957)	145,463
Distributions to shareholders from net investment income	(106,157)	(195,674)
Distributions to shareholders from net realized gain	(4,538)	(26,148)
Total distributions	(110,695)	(221,822)
Share transactions Proceeds from sales of shares	715,897	924,844
Net asset value of shares issued in exchange for the net assets of Fidelity Florida Municipal Income Fund	-	386,208
Reinvestment of distributions	71,710	146,309
Cost of shares redeemed	(638,930)	(926,342)
Net increase (decrease) in net assets resulting from share transactions	148,677	531,019
Redemption fees	67	43
Total increase (decrease) in net assets	21,092	454,703
Net Assets
Beginning of period	5,140,757	4,686,054
End of period (including undistributed net investment income of $3,868 and undistributed net investment income of $3,898, respectively)	$ 5,161,849	$ 5,140,757
Other Information Shares
Sold	58,092	73,296
Issued in exchange for the shares of Fidelity Florida Municipal Income Fund	-	30,482
Issued in reinvestment of distributions	5,800	11,598
Redeemed	(52,013)	(73,559)
Net increase (decrease)	11,879	41,817

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

Semiannual Report

Financial Highlights

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 12.58	$ 12.77	$ 12.82	$ 13.09	$ 13.18	$ 13.22
Income from Investment Operations
Net investment income D	.255	.514	.529	.549	.571	.585
Net realized and unrealized gain (loss)	(.300)	(.125)	.068	(.080)	.035	.162
Total from investment operations	(.045)	.389	.597	.469	.606	.747
Distributions from net investment income	(.254)	(.514)	(.527)	(.547)	(.571)	(.585)
Distributions from net realized gain	(.011)	(.065)	(.120)	(.192)	(.125)	(.202)
Total distributions	(.265)	(.579)	(.647)	(.739)	(.696)	(.787)
Redemption fees added to paid in capital D, I	-	-	-	-	-	-
Net asset value, end of period	$ 12.27	$ 12.58	$ 12.77	$ 12.82	$ 13.09	$ 13.18
Total Return B, C	(.35)%	3.13%	4.78%	3.66%	4.73%	5.80%
Ratios to Average Net Assets E, G
Expenses before reductions	.47% A	.47%	.47%	.47%	.47%	.48%
Expenses net of fee waivers, if any	.47% A	.47%	.47%	.47%	.47%	.48%
Expenses net of all reductions	.46% A	.44%	.45%	.45%	.47%	.47%
Net investment income	4.12% A	4.08%	4.15%	4.22%	4.36%	4.42%
Supplemental Data
Net assets, end of period (in millions)	$ 5,162	$ 5,141	$ 4,686	$ 4,676	$ 4,630	$ 4,784
Portfolio turnover rate F	16% A	22% H	25%	25%	20%	23%

^A Annualized

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

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

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

^H Portfolio turnover rate does not include the assets acquired in the merger.

^I Amount represents less than $.001 per share.

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

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Notes to Financial Statements

For the period ended June 30, 2008 (Unaudited)

(Amounts in thousands except ratios)

1. Organization.

Fidelity Municipal Income Fund (the Fund) is a fund of Fidelity Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value. Actual prices received at disposition may differ.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Security Valuation - continued

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1	Quoted prices in active markets for identical securities.
Level 2	Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3	Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

The aggregate value by input level, as of June 30, 2008, for the Fund's investments is included at the end of the Fund's Schedule of Investments.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 pm Eastern time and includes trades executed through the end of the prior business

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3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to market discount, deferred trustees compensation and losses deferred due to wash sales, futures and options transactions.

The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:

Unrealized appreciation	$ 68,289
Unrealized depreciation	(115,831)
Net unrealized appreciation (depreciation)	$ (47,542)
Cost for federal income tax purposes	$ 5,192,929

Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.

4. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

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5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $529,927 and $399,426, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .37% of the Fund's average net assets.

Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Fund. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, under which FIIOC performs the activities associated with the Fund's transfer, dividend disbursing and shareholder servicing agent functions. The Fund pays account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .08% of average net assets.

Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $5 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

8. Expense Reductions.

Through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and transfer agent expenses by $254 and $3, respectively.

9. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Municipal Income Fund

Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its June 2008 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved agreements with foreign sub-advisers Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Japan) Inc., and Fidelity Management & Research (Hong Kong) Limited.

In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fees on Fidelity's Institutional Money Market Funds and launching Class IV and Institutional Class of certain of these funds; (iii) reducing the transfer agent fees for the Fidelity Select Portfolios and Investor Class of the VIP funds; and (iv) launching Class K of 29 equity funds as a lower-fee class available to certain employer-sponsored retirement plans.

Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance, as well as the fund's relative investment performance measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2007, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Municipal Income Fund

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the first quartile for all the periods shown. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 9% means that 91% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Semiannual Report

Fidelity Municipal Income Fund

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2007.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of the fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of the fund compared to competitive fund median expenses. The fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

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Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board noted that the fund's total expenses ranked below its competitive median for 2007.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that the fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

Semiannual Report

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends and actions to be taken by FMR to improve certain funds' overall performance; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability and the extent to which portfolio manager compensation is linked to fund performance; (v) Fidelity's fee structures; (vi) the funds' sub-advisory arrangements; and (vii) accounts managed by Fidelity other than the Fidelity funds.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

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

For mutual fund and brokerage trading.

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

(computer_graphic)
Fidelity's Web Site
www.fidelity.com

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

Semiannual Report

To Write Fidelity

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
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)
For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

To Visit Fidelity

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

Arizona

7001 West Ray Road
Chandler, AZ

15445 N. Scottsdale Road
Scottsdale, AZ

California

815 East Birch Street
Brea, CA

1411 Chapin Avenue
Burlingame, CA

851 East Hamilton Avenue
Campbell, CA

19200 Von Karman Avenue
Irvine, CA

601 Larkspur Landing Circle
Larkspur, CA

2000 Avenue of the Stars
Los Angeles, CA

27101 Puerta Real
Mission Viejo, CA

73-575 El Paseo
Palm Desert, CA

251 University Avenue
Palo Alto, CA

123 South Lake Avenue
Pasadena, CA

16656 Bernardo Ctr. Drive
Rancho Bernardo, CA

1220 Roseville Parkway
Roseville, CA

1740 Arden Way
Sacramento, CA

7676 Hazard Center Drive
San Diego, CA

11943 El Camino Real
San Diego, CA

8 Montgomery Street
San Francisco, CA

3793 State Street
Santa Barbara, CA

1200 Wilshire Boulevard
Santa Monica, CA

398 West El Camino Real
Sunnyvale, CA

111 South Westlake Blvd
Thousand Oaks, CA

21701 Hawthorne Boulevard
Torrance, CA

2001 North Main Street
Walnut Creek, CA

6326 Canoga Avenue
Woodland Hills, CA

Colorado

281 East Flatiron Circle
Broomfield, CO

1625 Broadway
Denver, CO

9185 Westview Road
Lone Tree, CO

Connecticut

48 West Putnam Avenue
Greenwich, CT

265 Church Street
New Haven, CT

300 Atlantic Street
Stamford, CT

29 South Main Street
West Hartford, CT

Delaware

400 Delaware Avenue
Wilmington, DE

Florida

175 East Altamonte Drive
Altamonte Springs, FL

4400 N. Federal Highway
Boca Raton, FL

121 Alhambra Plaza
Coral Gables, FL

2948 N. Federal Highway
Ft. Lauderdale, FL

4671 Town Center Parkway
Jacksonville, FL

8880 Tamiami Trail, North
Naples, FL

230 Royal Palm Way
Palm Beach, FL

3501 PGA Boulevard
Palm Beach Gardens, FL

3550 Tamiami Trail, South
Sarasota, FL

1502 N. Westshore Blvd.
Tampa, FL

2465 State Road 7
Wellington, FL

Georgia

3445 Peachtree Road, N.E.
Atlanta, GA

1000 Abernathy Road
Atlanta, GA

Illinois

One North LaSalle Street
Chicago, IL

401 North Michigan Avenue
Chicago, IL

One Skokie Valley Road
Highland Park, IL

1415 West 22nd Street
Oak Brook, IL

15105 S LaGrange Road
Orland Park, IL

1572 East Golf Road
Schaumburg, IL

Indiana

4729 East 82nd Street
Indianapolis, IN

8480 Keystone Crossing
Indianapolis, IN

Kansas

5400 College Boulevard
Overland Park, KS

Maine

Three Canal Plaza
Portland, ME

Maryland

7315 Wisconsin Avenue
Bethesda, MD

610 York Road
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

238 Main Street
Cambridge, MA

200 Endicott Street
Danvers, MA

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

Semiannual Report

405 Cochituate Road
Framingham, MA

551 Boston Turnpike
Shrewsbury, MA

Michigan

500 E. Eisenhower Pkwy.
Ann Arbor, MI

280 Old N. Woodward Ave.
Birmingham, MI

30200 Northwestern Hwy.
Farmington Hills, MI

43420 Grand River Avenue
Novi, MI

Minnesota

7740 France Avenue South
Edina, MN

8342 3rd Street North
Oakdale, MN

Missouri

1524 South Lindbergh Blvd.
St. Louis, MO

Nevada

2225 Village Walk Drive
Henderson, NV

New Jersey

501 Route 73 South
Marlton, NJ

150 Essex Street
Millburn, NJ

35 Morris Street
Morristown, NJ

396 Route 17, North
Paramus, NJ

3518 Route 1 North
Princeton, NJ

530 Broad Street
Shrewsbury, NJ

New Mexico

2261 Q Street NE
Albuquerque, NM

New York

1130 Franklin Avenue
Garden City, NY

37 West Jericho Turnpike
Huntington Station, NY

1271 Avenue of the Americas
New York, NY

980 Madison Avenue
New York, NY

61 Broadway
New York, NY

350 Park Avenue
New York, NY

200 Fifth Avenue
New York, NY

733 Third Avenue
New York, NY

11 Penn Plaza
New York, NY

2070 Broadway
New York, NY

1075 Northern Blvd.
Roslyn, NY

799 Central Park Avenue
Scarsdale, NY

North Carolina

4611 Sharon Road
Charlotte, NC

7011 Fayetteville Road
Durham, NC

Ohio

3805 Edwards Road
Cincinnati, OH

1324 Polaris Parkway
Columbus, OH

1800 Crocker Road
Westlake, OH

28699 Chagrin Boulevard
Woodmere Village, OH

Oregon

7493 SW Bridgeport Road
Tigard, OR

Pennsylvania

600 West DeKalb Pike
King of Prussia, PA

1735 Market Street
Philadelphia, PA

12001 Perry Highway
Wexford, PA

Rhode Island

10 Memorial Boulevard
Providence, RI

Tennessee

3018 Peoples Street
Johnson City, TN

7628 West Farmington Blvd.
Germantown, TN

2035 Mallory Lane
Franklin, TN

Texas

10000 Research Boulevard
Austin, TX

4001 Northwest Parkway
Dallas, TX

12532 Memorial Drive
Houston, TX

2701 Drexel Drive
Houston, TX

6560 Fannin Street
Houston, TX

1701 Lake Robbins Drive
The Woodlands, TX

6500 N. MacArthur Blvd.
Irving, TX

6005 West Park Boulevard
Plano, TX

14100 San Pedro
San Antonio, TX

1576 East Southlake Blvd.
Southlake, TX

Utah

279 West South Temple
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

Washington

10500 NE 8th Street
Bellevue, WA

1518 6th Avenue
Seattle, WA

Washington, DC

1900 K Street, N.W.
Washington, DC

Wisconsin

16020 West Bluemound Road
Brookfield, WI

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Adviser

Fidelity Investments Money
Management, Inc.

Fidelity Research & Analysis Company

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Citibank N.A.

New York NY

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

Citibank N.A.

New York NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone(FAST^®) 1-800-544-5555

Automated line for quickest service

HIY-USAN-0808
1.787789.105

Fidelity®
Ohio Municipal Income Fund

and

Fidelity
Ohio Municipal Money Market
Fund

Semiannual Report

June 30, 2008
(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Fidelity Ohio Municipal Income Fund
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
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.
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
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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

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

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

Semiannual Report

This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the funds nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Domestic and international securities markets have struggled thus far in 2008. High-grade fixed-income investments produced modestly positive results, but many stock benchmarks suffered double-digit losses through the first half of this year. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2008 to June 30, 2008).

Actual Expenses

The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

	Beginning Account Value January 1, 2008	Ending Account Value June 30, 2008	Expenses Paid During Period* January 1, 2008 to June 30, 2008
Fidelity Ohio Municipal Income Fund
Actual	$ 1,000.00	$ 999.90	$ 2.44
HypotheticalA	$ 1,000.00	$ 1,022.43	$ 2.46
Fidelity Ohio Municipal Money Market Fund
Actual	$ 1,000.00	$ 1,009.50	$ 2.65
HypotheticalA	$ 1,000.00	$ 1,022.23	$ 2.66

^A 5% return per year before expenses

* Expenses are equal to each Fund's annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

	Annualized Expense Ratio
Fidelity Ohio Municipal Income Fund	.49%
Fidelity Ohio Municipal Money Market Fund	.53%

Semiannual Report

Fidelity Ohio Municipal Income Fund

Investment Changes (Unaudited)

Top Five Sectors as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
General Obligations	39.6	37.9
Education	12.7	11.6
Water & Sewer	11.5	12.5
Health Care	10.1	6.7
Special Tax	7.0	7.5
Weighted Average Maturity as of June 30, 2008
		6 months ago
Years	8.8	7.7

The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity, taking into account any maturity shortening feature such as a call, refunding or redemption provision.

Duration as of June 30, 2008
		6 months ago
Years	7.3	6.9

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

Quality Diversification (% of fund's net assets)
As of June 30, 2008		As of December 31, 2007
	AAA 29.7%		AAA 71.0%
	AA,A 64.1%		AA,A 23.3%
	BBB 5.2%		BBB 4.4%
	BB and Below 0.1%		BB and Below 0.1%
	Not Rated 0.5%		Not Rated 0.0%
	Short-Term Investments and Net Other Assets 0.4%		Short-Term Investments and Net Other Assets 1.2%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings.

Semiannual Report

Fidelity Ohio Municipal Income Fund

Investments June 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 99.6%
	Principal Amount	Value
Guam - 0.3%
Guam Ed. Fing. Foundation Series A, 5% 10/1/23	$ 1,000,000	$ 966,780
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35	470,000	454,880
		1,421,660
Ohio - 93.9%
Adams County Valley Local School District (Adams & Highland County Proj.) 5.25% 12/1/21 (MBIA Insured)	2,000,000	2,002,600
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A:
5% 1/1/14	1,500,000	1,547,190
5% 1/1/15	1,300,000	1,339,208
Akron City Non-tax Rev. Econ. Dev. Series 1997, 6% 12/1/12 (MBIA Insured)	1,250,000	1,346,913
Akron Ctfs. of Prtn. 5% 12/1/15 (Assured Guaranty Corp. Insured)	1,475,000	1,578,870
Akron Wtrwks. Rev. 5.25% 12/1/19 (MBIA Insured)	1,630,000	1,706,887
American Muni. Pwr. Electricity Purchase Rev. Series A:
5% 2/1/11	1,500,000	1,510,380
5% 2/1/13	2,000,000	2,007,220
American Muni. Pwr.-Ohio, Inc. Rev. (Prarie State Energy Campus Proj.) Series A, 5% 2/15/38 (a)	4,000,000	3,862,000
Avon Lake City School District 5% 12/1/14 (MBIA Insured)	1,205,000	1,292,218
Bowling Green City School District 5% 12/1/34 (FSA Insured)	2,000,000	2,027,200
Buckeye Tobacco Settlement Fing. Auth. Series A-2:
5.75% 6/1/34	4,000,000	3,428,800
6.5% 6/1/47	5,800,000	5,320,398
Buckeye Valley Local School District Delaware County Series A, 6.85% 12/1/15 (MBIA Insured)	2,105,000	2,355,137
Bucyrus City School District 5% 12/1/30 (FSA Insured)	5,120,000	5,218,355
Butler County Sales Tax (Govt. Svcs. Ctr. Proj.) Series A, 5% 12/15/16 (AMBAC Insured)	2,455,000	2,604,166
Butler County Trans. Impt. District 5% 12/1/18 (XL Cap. Assurance, Inc. Insured)	1,015,000	1,086,517
Canal Winchester Local School District:
5% 12/1/18 (MBIA Insured)	1,030,000	1,073,930
5% 12/1/18 (Pre-Refunded to 6/1/15 @ 100) (d)	1,005,000	1,086,546
Chagrin Falls Exempted Village School District 5.25% 12/1/19 (MBIA Insured)	1,915,000	2,034,649
Municipal Bonds - continued
	Principal Amount	Value
Ohio - continued
Cincinnati City School District:
5.25% 6/1/16 (FSA Insured)	$ 1,500,000	$ 1,597,545
5.25% 12/1/17 (Pre-Refunded to 12/1/13 @ 100) (d)	2,000,000	2,178,320
5.25% 12/1/18 (FGIC Insured)	3,000,000	3,250,170
Cincinnati City School District Ctfs. of Prtn. (School Impt. Proj.) 5% 12/15/28 (FSA Insured)	1,000,000	1,021,400
Cincinnati Wtr. Sys. Rev. Series B, 5% 12/1/32	2,500,000	2,544,975
Cleveland Arpt. Sys. Rev. Series C, 5% 1/1/20 (FSA Insured)	3,500,000	3,612,420
Cleveland Gen. Oblig. Series C:
5.25% 11/15/20 (FGIC Insured)	1,100,000	1,181,862
5.25% 11/15/21 (FGIC Insured)	1,145,000	1,228,116
5.25% 11/15/22 (FGIC Insured)	1,210,000	1,291,953
5.25% 11/15/23 (FGIC Insured)	1,885,000	2,008,091
Cleveland Muni. School District:
5.25% 12/1/17 (FSA Insured)	2,215,000	2,375,056
5.25% 12/1/19 (FSA Insured)	1,045,000	1,112,559
5.25% 12/1/23 (FSA Insured)	1,000,000	1,051,750
Cleveland Parking Facilities Rev. 5.25% 9/15/17 (FSA Insured)	4,480,000	4,910,842
Cleveland Pub. Pwr. Sys. Rev.:
Series A:
0% 11/15/10 (MBIA Insured)	1,435,000	1,327,734
0% 11/15/11 (MBIA Insured)	2,395,000	2,120,413
0% 11/15/10 (Escrowed to Maturity) (d)	1,250,000	1,160,875
Cleveland State Univ. Gen. Receipts:
Series 2003 A, 5% 6/1/18 (FGIC Insured)	2,490,000	2,529,965
Series 2004, 5% 6/1/34 (FGIC Insured)	5,000,000	4,851,400
Cleveland Wtrwks. Rev. (First Mtg. Prog.):
Series G, 5.5% 1/1/13 (MBIA Insured)	2,450,000	2,570,687
Series H, 5.75% 1/1/16 (MBIA Insured)	45,000	45,096
Columbus City School District:
(School Facilities Construction and Impt. Proj.) 5% 12/1/18 (FSA Insured)	5,000,000	5,342,900
5.25% 12/1/25 (Pre-Refunded to 12/1/14 @ 100) (d)	3,780,000	4,156,828
Cuyahoga County Gen. Oblig.:
Series A:
0% 10/1/11 (MBIA Insured)	2,400,000	2,134,920
0% 10/1/12 (MBIA Insured)	1,405,000	1,195,543
5% 12/1/19	3,000,000	3,210,090
Municipal Bonds - continued
	Principal Amount	Value
Ohio - continued
Dayton School District (School Facility Contruction & Impt. Proj.) Series A, 5% 12/1/31 (FGIC Insured)	$ 5,000,000	$ 4,891,750
Erie County Gen. Oblig. 5.5% 12/1/18 (FSA Insured)	1,265,000	1,365,340
Fairfield City School District 7.45% 12/1/14 (FGIC Insured)	1,000,000	1,147,320
Fairless Local School District 5% 12/1/32 (FSA Insured)	3,300,000	3,357,783
Fairview Park City School District 5% 12/1/33 (MBIA Insured)	4,350,000	4,364,921
Fairview Park Gen. Oblig. 5% 12/1/30 (MBIA Insured)	5,955,000	6,050,578
Franklin County Convention Facilities Auth. Tax & Lease Rev. 5.25% 12/1/19 (AMBAC Insured)	4,000,000	4,208,480
Franklin County Hosp. Rev. (Nationwide Children's Hosp. Proj.) Series A:
4.875% 11/1/33	565,000	537,744
5% 11/1/15	260,000	276,019
5% 11/1/16	265,000	279,183
Franklin County Rev. (OCLC Online Computer Library Ctr., Inc. Proj.) 5% 4/15/12	2,505,000	2,616,147
Gallia County Hosp. Facilities Rev. (Holzer Med. Ctr. Proj.) 5.125% 10/1/13 (AMBAC Insured)	3,000,000	3,041,370
Gallia County Local School District (School Impt. Proj.) 5% 12/1/33 (FSA Insured)	3,000,000	3,050,820
Hamilton City School District 5% 12/1/34 (FSA Insured)	2,000,000	2,027,200
Hamilton County Convention Facilities Auth. Rev.:
5% 12/1/17 (FGIC Insured)	1,985,000	2,065,174
5% 12/1/18 (FGIC Insured)	1,075,000	1,117,280
5% 12/1/19 (FGIC Insured)	2,190,000	2,254,211
5% 12/1/19 (FGIC Insured)	1,130,000	1,169,075
Hamilton County Econ. Dev. Rev. (King Highland Cmnty. Urban Redev. Corp. Proj.) Series A, 5% 6/1/17 (MBIA Insured)	1,070,000	1,122,665
Hamilton County Hosp. Facilities Rev. (Childrens Hosp. Med. Ctr. Proj.) Series J:
5.25% 5/15/15 (FGIC Insured)	1,835,000	1,906,125
5.25% 5/15/17 (FGIC Insured)	2,585,000	2,654,356
5.25% 5/15/18 (FGIC Insured)	2,720,000	2,776,195
Hamilton County Sales Tax Rev. Series B, 5.25% 12/1/32 (AMBAC Insured)	960,000	966,422
Hamilton County Swr. Sys. Rev. Series 06A, 5% 12/1/17 (MBIA Insured)	2,050,000	2,207,256
Hamilton Wtrwks. Rev. 5% 10/15/16 (MBIA Insured)	1,000,000	1,045,200
Hilliard Gen. Oblig. 5% 12/1/18 (MBIA Insured)	1,000,000	1,045,280
Hilliard School District 0% 12/1/11 (FGIC Insured)	3,040,000	2,688,941
Municipal Bonds - continued
	Principal Amount	Value
Ohio - continued
Huber Heights Wtr. Sys. Rev. 5% 12/1/30 (MBIA Insured)	$ 2,285,000	$ 2,303,189
Kent City School District Series 2004, 5% 12/1/20 (FGIC Insured)	1,400,000	1,439,340
Kings Local School District 5% 12/1/19 (MBIA Insured)	1,365,000	1,423,286
Lake County Hosp. Facilities Rev. (Lake Hosp. Sys., Inc. Proj.) Series 2008 C:
5% 8/15/14	2,055,000	2,068,871
5% 8/15/15	1,160,000	1,159,246
5% 8/15/16	1,260,000	1,249,983
5% 8/15/17	1,000,000	984,860
Lakewood City School District:
0% 12/1/15 (FSA Insured)	1,500,000	1,106,340
0% 12/1/16 (FSA Insured)	1,200,000	840,396
5.25% 12/1/15 (Pre-Refunded to 12/1/14 @ 100) (d)	1,000,000	1,099,690
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.):
5.5% 2/15/10	1,000,000	1,029,380
5.5% 2/15/11	1,875,000	1,941,300
5.5% 2/15/12	950,000	991,639
Licking Heights Local School District (Facilities Construction & Impt. Proj.) Series A, 5% 12/1/32 (MBIA Insured)	3,745,000	3,760,017
Lorain County Gen. Oblig. 5.5% 12/1/22 (FGIC Insured)	2,985,000	3,127,414
Lucas County Hosp. Rev. (Promedia Health Care Oblig. Group Proj.):
5% 11/15/13 (AMBAC Insured)	1,135,000	1,169,913
5% 11/15/38	3,950,000	3,736,029
5.375% 11/15/23 (AMBAC Insured)	5,000,000	5,106,150
5.625% 11/15/12 (AMBAC Insured)	2,000,000	2,079,040
5.625% 11/15/13 (AMBAC Insured)	1,200,000	1,245,456
Marysville Village School District 5% 12/1/29 (FSA Insured)	4,000,000	4,089,280
Marysville Wastewtr. Treatment Sys. Rev.:
4% 12/1/20 (XL Cap. Assurance, Inc. Insured)	115,000	104,058
4.125% 12/1/21 (XL Cap. Assurance, Inc. Insured)	175,000	159,700
4.15% 12/1/22 (XL Cap. Assurance, Inc. Insured)	100,000	90,533
Middletown City School District 5% 12/1/19 (Pre-Refunded to 12/1/13 @ 100) (d)	1,110,000	1,186,879
Montgomery County Gen. Oblig. 5.5% 12/1/25	2,235,000	2,333,139
Municipal Bonds - continued
	Principal Amount	Value
Ohio - continued
Montgomery County Rev. (Catholic Health Initiatives Proj.):
Series A:
6% 12/1/19	$ 1,470,000	$ 1,532,725
6% 12/1/19 (Escrowed to Maturity) (d)	1,530,000	1,625,212
6% 12/1/26 (Escrowed to Maturity) (d)	3,000,000	3,131,940
Series C1, 5% 10/1/41 (FSA Insured)	5,000,000	4,959,550
Series C2, 4.1%, tender 11/10/11 (b)	1,900,000	1,936,309
Montgomery County Wtr. Sys. Rev. Series 2002, 5.375% 11/15/16 (AMBAC Insured)	2,200,000	2,339,018
North Olmsted Gen. Oblig. Series D, 5.25% 12/1/20 (AMBAC Insured)	2,075,000	2,223,404
Oak Hills Local School District Facilities Construction and Impt. Series B, 6.9% 12/1/12 (MBIA Insured)	500,000	568,910
Ohio Bldg. Auth.:
(Adult Correctional Bldg. Fund Prog.) Series 2001 A, 5.5% 10/1/12 (FSA Insured)	1,000,000	1,068,700
(Juvenile Correctional Bldg. Fund Prog.) 5% 4/1/17 (MBIA Insured)	2,485,000	2,580,374
Ohio Gen. Oblig.:
(College Savings Prog.) 0% 8/1/14	1,375,000	1,052,274
(Common Schools Proj.) Series 2006 D, 5% 9/15/21	5,000,000	5,240,400
(Higher Ed. Cap. Facilities Proj.):
Series 2002 B, 5.25% 11/1/20	2,520,000	2,634,736
Series 2005 B, 5% 5/1/16	1,000,000	1,081,250
Series A, 5.375% 8/1/16	5,980,000	6,343,464
Series B, 5% 2/1/22	2,800,000	2,891,980
(Infrastructure Impt. Proj.) Series D, 5% 3/1/24	3,415,000	3,514,752
Series A, 5.5% 9/15/16	11,060,000	11,801,010
Ohio Higher Edl. Facility Commission Rev.:
(Case Western Reserve Univ. Proj.):
Series 1990 B, 6.5% 10/1/20	2,335,000	2,700,871
Series 1994:
6.125% 10/1/15	2,000,000	2,268,900
6.25% 10/1/16	2,500,000	2,885,850
(John Carroll Univ. Proj.) 5% 4/1/17	1,000,000	1,043,620
(Univ. Hosp. Health Sys. Proj.) Series 2007 A, 5.25% 1/15/46	4,000,000	3,678,000
(Univ. of Dayton Proj.) 5% 12/1/17 (AMBAC Insured)	2,170,000	2,277,806
Ohio Muni. Elec. Gen. Agcy. (Belleville Hydroelectric Proj.) 5% 2/15/17 (AMBAC Insured)	1,215,000	1,268,691
Municipal Bonds - continued
	Principal Amount	Value
Ohio - continued
Ohio Poll. Cont. Rev. (Standard Oil Co. Proj.) 6.75% 12/1/15	$ 3,100,000	$ 3,605,269
Ohio Solid Waste Disp. Rev. (Cargill, Inc. Proj.) 4.95% 9/1/20 (c)	3,000,000	2,848,110
Ohio State Univ. Gen. Receipts:
Series 2002 A, 5.125% 12/1/31	5,000,000	5,085,550
Series B, 5.25% 6/1/16	5,000,000	5,340,350
Ohio Tpk. Commission Tpk. Rev.:
Series 1998 A, 5.5% 2/15/20 (FGIC Insured)	3,000,000	3,294,600
Series 2001 A, 5.5% 2/15/26	3,700,000	3,835,494
Ohio Univ. Gen. Receipts Athens:
Series B, 5% 12/1/31 (FSA Insured)	3,540,000	3,610,481
5% 12/1/18 (MBIA Insured)	1,980,000	2,048,468
Ohio Wtr. Dev. Auth. Rev.:
(Drinking Wtr. Fund Prog.) Series 2005:
5.25% 6/1/18	2,610,000	2,883,685
5.25% 12/1/18	2,610,000	2,887,835
(Fresh Wtr. Impt. Proj.):
Series B, 5.5% 6/1/16 (FSA Insured)	1,560,000	1,739,681
5.25% 12/1/15	2,200,000	2,403,456
5.5% 6/1/17	3,960,000	4,448,783
(Pure Wtr. Proj.) Series I, 6% 12/1/16 (Escrowed to Maturity) (d)	1,685,000	1,844,974
5% 12/1/17	3,765,000	3,991,841
5.25% 6/1/13 (MBIA Insured)	1,295,000	1,389,755
5.25% 12/1/13 (MBIA Insured)	1,305,000	1,405,981
5.25% 6/1/14 (MBIA Insured)	1,250,000	1,349,913
5.25% 12/1/14 (MBIA Insured)	1,260,000	1,365,286
5.25% 12/1/15 (MBIA Insured)	1,180,000	1,284,005
5.25% 6/1/17 (MBIA Insured)	1,160,000	1,265,931
Ohio Wtr. Dev. Auth. Wtr. Poll. Cont. Rev.:
5% 6/1/18	2,000,000	2,109,680
5.25% 12/1/19	1,975,000	2,184,074
Olentangy Local School District:
(School Facilities Construction & Impt. Proj.) Series A, 5.5% 12/1/15 (Pre-Refunded to 6/1/14 @ 100) (d)	1,055,000	1,166,756
5% 12/1/30 (FSA Insured)	4,025,000	4,098,537
5% 12/1/30 (Pre-Refunded to 6/1/16 @ 100) (d)	1,320,000	1,434,827
Orrville City School District 5.25% 12/1/35 (AMBAC Insured)	1,000,000	1,015,540
Municipal Bonds - continued
	Principal Amount	Value
Ohio - continued
Otsego Local School District Wood, Henry & Lucas Counties 5.375% 12/1/32 (Pre-Refunded to 12/1/14 @ 100) (d)	$ 1,000,000	$ 1,106,810
Penta Career Ctr. Ctfs. of Prtn.:
(Ohio School Facilities Proj.) 5.25% 4/1/17 (FGIC Insured)	1,755,000	1,843,505
(Wood, Lucas, Sandusky, Fulton, Ottawa, Henry and Hancock Counties, Ohio School Facilities Proj.) 5.25% 4/1/19 (FGIC Insured)	1,940,000	2,014,787
Plain Local School District 6% 12/1/25 (FGIC Insured)	990,000	1,053,944
Reynoldsburg City School District (School Facilities Construction & Impt. Proj.):
0% 12/1/16 (a)	1,250,000	878,313
0% 12/1/17 (a)	1,250,000	833,725
5% 12/1/32 (a)	1,500,000	1,502,250
Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B:
6.375% 11/15/22	500,000	522,425
6.375% 11/15/22 (Pre-Refunded to 11/15/10 @ 101) (d)	1,000,000	1,087,030
6.375% 11/15/30	330,000	341,204
RiverSouth Auth. Rev. Series 2005 A, 5.25% 12/1/15	1,000,000	1,088,810
Rocky River Gen. Oblig. 5% 12/1/19 (AMBAC Insured)	2,125,000	2,213,549
Scioto County Marine Term. Facilities Rev. (Norfolk Southern Corp. Proj.) 5.3% 8/15/13	3,000,000	3,029,490
Sharonville Gen. Oblig. 5.25% 6/1/16 (FGIC Insured)	1,410,000	1,490,412
Springboro Cmnty. City School District:
5.25% 12/1/20 (FSA Insured)	2,780,000	3,029,060
5.25% 12/1/21 (Pre-Refunded to 6/1/14 @ 100) (d)	3,440,000	3,758,819
St. Marys City School District:
5% 12/1/27 (FSA Insured)	470,000	483,301
5% 12/1/35 (FSA Insured)	2,500,000	2,537,000
Summit County Gen. Oblig.:
5.25% 12/1/20	1,645,000	1,742,466
5.25% 12/1/21	1,740,000	1,838,762
Tallmadge School District Gen. Oblig. 5% 12/1/31 (FSA Insured)	4,000,000	4,079,400
Toledo Wtrwks. Rev.:
5% 11/15/16 (AMBAC Insured)	1,110,000	1,163,624
5% 11/15/30 (MBIA Insured)	3,500,000	3,516,905
Univ. of Akron Gen. Receipts:
Series A, 5.25% 1/1/30 (FSA Insured)	3,000,000	3,120,540
Series B, 5% 1/1/27 (FGIC Insured)	1,405,000	1,415,734
Municipal Bonds - continued
	Principal Amount	Value
Ohio - continued
Univ. of Cincinnati Ctfs. of Prtn.:
5.5% 6/1/11 (MBIA Insured)	$ 1,045,000	$ 1,102,559
5.5% 6/1/12 (MBIA Insured)	1,315,000	1,385,234
5.5% 6/1/15 (MBIA Insured)	1,000,000	1,047,950
Univ. of Cincinnati Gen. Receipts:
Series 2004 A:
5% 6/1/18 (AMBAC Insured)	1,445,000	1,502,598
5% 6/1/19 (AMBAC Insured)	1,520,000	1,573,352
Series C:
5% 6/1/22 (FSA Insured)	1,000,000	1,047,740
5% 6/1/23 (FSA Insured)	2,000,000	2,087,300
5% 6/1/24 (FSA Insured)	2,000,000	2,079,180
Warren County Gen. Oblig.:
6.1% 12/1/12	380,000	403,818
6.65% 12/1/11	220,000	234,362
West Muskingum Local School District School Facilities Construction and Impt. 5% 12/1/30 (FGIC Insured)	1,060,000	1,050,078
Wright State Univ. Gen. Receipts:
5% 5/1/17 (MBIA Insured)	1,375,000	1,434,153
5% 5/1/18 (MBIA Insured)	1,440,000	1,492,891
5% 5/1/19 (MBIA Insured)	1,515,000	1,565,116
		416,785,461
Puerto Rico - 4.6%
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev.:
Series CC, 5.25% 7/1/33 (FSA Insured)	10,000,000	10,575,700
Series Z, 6.25% 7/1/15 (MBIA Insured)	1,000,000	1,117,360
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A, 5.5% 10/1/40 (Escrowed to Maturity) (d)	2,725,000	2,809,966
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.:
Series KK, 5.5% 7/1/15 (FSA Insured)	1,800,000	1,953,036
Series QQ, 5.5% 7/1/17 (XL Cap. Assurance, Inc. Insured)	1,300,000	1,372,644
Puerto Rico Pub. Bldg. Auth. Rev.:
Series G, 5.25% 7/1/13	1,000,000	1,024,940
Series M2, 5.75%, tender 7/1/17 (b)	1,000,000	1,034,750
Municipal Bonds - continued
	Principal Amount	Value
Puerto Rico - continued
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev. Series A:
0% 8/1/41 (FGIC Insured)	$ 2,400,000	$ 329,928
0% 8/1/54 (AMBAC Insured)	2,400,000	163,944
		20,382,268
Virgin Islands - 0.8%
Virgin Islands Pub. Fin. Auth. Refinery Facilities Rev. 4.7% 7/1/22 (c)	1,100,000	937,717
Virgin Islands Pub. Fin. Auth. Rev. Series A, 5% 10/1/09	500,000	509,520
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys. Rev. Series A, 5% 7/1/22	2,000,000	1,952,800
		3,400,037

TOTAL INVESTMENT PORTFOLIO - 99.6% (Cost $442,815,140)	441,989,426
NET OTHER ASSETS - 0.4%		1,653,458
NET ASSETS - 100%	$ 443,642,884

Legend

(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

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

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

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

Other Information

The following is a summary of the inputs used, as of June 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to the Financial Statements.

Valuation Inputs at Reporting Date:
Description	Total	Level 1	Level 2	Level 3
Investments in Securities	$ 441,989,426	$ -	$ 441,989,426	$ -

Other Information

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

General Obligations	39.6%
Education	12.7%
Water & Sewer	11.5%
Health Care	10.1%
Special Tax	7.0%
Escrowed/Pre-Refunded	6.4%
Others* (individually less than 5%)	12.7%
	100.0%

*Includes net other assets

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

Semiannual Report

Fidelity Ohio Municipal Income Fund

Financial Statements

Statement of Assets and Liabilities

	June 30, 2008 (Unaudited)
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $442,815,140)		$ 441,989,426
Cash		2,736,578
Receivable for investments sold		2,352,480
Receivable for fund shares sold		866,454
Interest receivable		3,575,083
Prepaid expenses		596
Other receivables		35,566
Total assets		451,556,183
Liabilities
Payable for investments purchased on a delayed delivery basis	$ 6,973,955
Payable for fund shares redeemed	152,956
Distributions payable	440,072
Accrued management fee	134,685
Other affiliated payables	186,788
Other payables and accrued expenses	24,843
Total liabilities		7,913,299
Net Assets		$ 443,642,884
Net Assets consist of:
Paid in capital		$ 443,968,666
Undistributed net investment income		12,221
Accumulated undistributed net realized gain (loss) on investments		487,711
Net unrealized appreciation (depreciation) on investments		(825,714)
Net Assets, for 39,340,397 shares outstanding		$ 443,642,884
Net Asset Value, offering price and redemption price per share ($443,642,884 ÷ 39,340,397 shares)		$ 11.28

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

Semiannual Report

Statement of Operations

Six months ended June 30, 2008 (Unaudited)
Investment Income
Interest		$ 9,443,686
Expenses
Management fee	$ 797,389
Transfer agent fees	165,606
Accounting fees and expenses	56,598
Custodian fees and expenses	3,296
Independent trustees' compensation	962
Registration fees	12,590
Audit	21,511
Legal	575
Miscellaneous	1,626
Total expenses before reductions	1,060,153
Expense reductions	(49,234)	1,010,919
Net investment income		8,432,767
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers		651,645
Change in net unrealized appreciation (depreciation) on investment securities		(9,203,582)
Net gain (loss)		(8,551,937)
Net increase (decrease) in net assets resulting from operations		$ (119,170)

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

Semiannual Report

Fidelity Ohio Municipal Income Fund
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2008 (Unaudited)	Year ended December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 8,432,767	$ 16,288,390
Net realized gain (loss)	651,645	1,363,456
Change in net unrealized appreciation (depreciation)	(9,203,582)	(2,974,382)
Net increase (decrease) in net assets resulting from operations	(119,170)	14,677,464
Distributions to shareholders from net investment income	(8,432,650)	(16,287,205)
Distributions to shareholders from net realized gain	(299,285)	(1,822,045)
Total distributions	(8,731,935)	(18,109,250)
Share transactions Proceeds from sales of shares	54,658,528	60,633,272
Reinvestment of distributions	6,050,997	12,953,540
Cost of shares redeemed	(32,618,804)	(67,634,796)
Net increase (decrease) in net assets resulting from share transactions	28,090,721	5,952,016
Redemption fees	3,080	1,969
Total increase (decrease) in net assets	19,242,696	2,522,199
Net Assets
Beginning of period	424,400,188	421,877,989
End of period (including undistributed net investment income of $12,221 and undistributed net investment income of $12,104, respectively)	$ 443,642,884	$ 424,400,188
Other Information Shares
Sold	4,841,781	5,290,193
Issued in reinvestment of distributions	531,882	1,129,372
Redeemed	(2,918,092)	(5,911,725)
Net increase (decrease)	2,455,571	507,840

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

Semiannual Report

Financial Highlights

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 11.51	$ 11.60	$ 11.66	$ 11.98	$ 12.10	$ 12.03
Income from Investment Operations
Net investment income D	.221	.444	.459	.476	.496	.507
Net realized and unrealized gain (loss)	(.222)	(.040)	.050	(.135)	.026	.166
Total from investment operations	(.001)	.404	.509	.341	.522	.673
Distributions from net investment income	(.221)	(.444)	(.459)	(.476)	(.497)	(.508)
Distributions from net realized gain	(.008)	(.050)	(.110)	(.185)	(.145)	(.095)
Total distributions	(.229)	(.494)	(.569)	(.661)	(.642)	(.603)
Redemption fees added to paid in capital D, F	-	-	-	-	-	-
Net asset value, end of period	$ 11.28	$ 11.51	$ 11.60	$ 11.66	$ 11.98	$ 12.10
Total Return B, C	(.01) %	3.59%	4.47%	2.90%	4.44%	5.72%
Ratios to Average Net Assets E
Expenses before reductions	.49% A	.49%	.49%	.50%	.50%	.51%
Expenses net of fee waivers, if any	.49%A	.49%	.49%	.50%	.50%	.51%
Expenses net of all reductions	.47%A	.45%	.45%	.47%	.49%	.50%
Net investment income	3.88%A	3.88%	3.96%	4.00%	4.13%	4.20%
Supplemental Data
Net assets, end of period (000 omitted)	$ 443,643	$ 424,400	$ 421,878	$ 424,849	$ 423,597	$ 431,039
Portfolio turnover rate	4%A	22%	19%	23%	26%	22%

^A Annualized

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

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

^D Calculated based on average shares outstanding during the period.

^E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

^F Amount represents less than $.001 per share.

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

Semiannual Report

Fidelity Ohio Municipal Money Market Fund

Investment Changes (Unaudited)

Maturity Diversification
Days	% of fund's investments 6/30/08	% of fund's investments 12/31/07	% of fund's investments 6/30/07
0 - 30	76.5	82.9	83.9
31 - 90	5.7	4.7	4.8
91 - 180	11.8	5.2	3.7
181 - 397	6.0	7.2	7.6
Weighted Average Maturity
	6/30/08	12/31/07	6/30/07
Fidelity Ohio Municipal Money Market Fund	41 Days	36 Days	35 Days
Ohio Tax-Free Money Market Funds Average*	38 Days	37 Days	36 Days

Asset Allocation (% of fund's net assets)
As of June 30, 2008		As of December 31, 2007
	Variable Rate Demand Notes (VRDNs) 68.0%		Variable Rate Demand Notes (VRDNs) 82.0%
	Commercial Paper (including CP Mode) 3.0%		Commercial Paper (including CP Mode) 0.6%
	Tender Bonds 1.6%		Tender Bonds 1.3%
	Municipal Notes 18.0%		Municipal Notes 13.3%
	Other Investments 2.5%		Other Investments 3.4%
	Net Other Assets 6.9%		Net Other Assets** (0.6)%

** Net other assets are not included in the pie chart

*Source: iMoneyNet, Inc.

Semiannual Report

Fidelity Ohio Municipal Money Market Fund

Investments June 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Municipal Securities - 93.1%
	Principal Amount		Value
Ohio - 92.1%
Allen County Hosp. Facilities Rev. (Catholic Healthcare Partners Proj.) Series 2008 D, 1.52%, LOC Wachovia Bank NA Charlotte, VRDN (a)	$ 1,300,000		$ 1,300,000
American Muni. Pwr.:
Bonds (Omega Joint Venture 6 Proj.) 1.15%, tender 8/15/08 (a)	7,276,000		7,276,000
Series 2008 A:
1.7% 7/7/08, LOC JPMorgan Chase Bank, CP	23,304,000		23,304,000
1.7% 7/7/08, LOC JPMorgan Chase Bank, CP	11,400,000		11,400,000
Ashtabula County Indl. Dev. Rev. (Plasticolors, Inc. Proj.) Series 1996 A, 1.76%, LOC KeyBank NA, VRDN (a)(b)	1,395,000		1,395,000
Barberton City School District BAN (School Facilities Construction Proj.) 2.6% 11/4/08	6,000,000		6,012,182
Butler County Gen. Oblig. BAN:
4.05% 9/7/08	3,650,000		3,653,209
4.25% 8/7/08	4,135,000		4,137,053
Clark County Gen. Oblig. BAN 2% 5/6/09	1,275,000		1,277,116
Clermont County Indl. Dev. Rev. (American Micro Products Proj.) 1.76%, LOC KeyBank NA, VRDN (a)(b)	1,150,000		1,150,000
Cleveland Arpt. Sys. Rev. Participating VRDN Series DB 570, 1.58% (Liquidity Facility Deutsche Bank AG) (a)(d)	1,355,000		1,355,000
Cleveland-Cuyahoga County Port Auth. Rev.:
(Carnegie/96th Research Bldg., LLC Proj.) Series 2003, 1.51%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	10,000,000		10,000,000
(Euclid/93rd Garage & Office LLC Proj.) Series 2003, 1.51%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	4,930,000		4,930,000
Clinton Massie Local School District BAN (School Construction Proj.) 4% 11/18/08	2,180,000		2,184,515
Columbus City School District:
Participating VRDN Series 1488, 1.63% (Liquidity Facility JPMorgan Chase Bank) (a)(d)	5,000,000		5,000,000
BAN 3.75% 12/11/08	4,000,000		4,010,353
Columbus Swr. Rev. Participating VRDN:
Series BBT 08 13, 1.64% (Liquidity Facility Branch Banking & Trust Co.) (a)(d)	12,465,000		12,465,000
Series Putters 2456, 1.6% (Liquidity Facility JPMorgan Chase Bank) (a)(d)	1,400,000		1,400,000
Crawford County Hosp. Facilities Rev. (Galion Cmnty. Hosp. Proj.) 1.95%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)	4,870,000		4,870,000
Cuyahoga County Civic Facilities Rev. (Fairfax Dev. Corp. Proj.) 1.64%, LOC KeyBank NA, VRDN (a)	4,180,000		4,180,000
Municipal Securities - continued
	Principal Amount		Value
Ohio - continued
Cuyahoga County Health Care Facilities Rev. (Altenheim Proj.) 1.6%, LOC U.S. Bank NA, Minnesota, VRDN (a)	$ 12,880,000		$ 12,880,000
Cuyahoga County Indl. Dev. Rev.:
(Progressive Plastics, Inc. Proj.) 3%, LOC JPMorgan Chase Bank, VRDN (a)(b)	840,000		840,000
(The Great Lakes Brewing Co. Proj.) 2.1%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)(b)	7,435,000		7,435,000
Cuyahoga Falls Gen. Oblig. BAN 3.75% 12/11/08	8,000,000		8,014,469
Darke County Health Care Facilities Rev. (Brethren Retirement Cmnty. Proj.) 1.63%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	6,755,000		6,755,000
Dayton Montgomery County Port Auth. Spl. Arpt. Facilities Rev. (Wilmington Air Park, Inc. Proj.):
Series 2007 A, 1.77% (Deutsche Post AG Guaranteed), VRDN (a)(b)	10,000,000		10,000,000
Series 2007 B, 1.77% (Deutsche Post AG Guaranteed), VRDN (a)(b)	22,300,000		22,300,000
Series 2007 C, 1.77% (Deutsche Post AG Guaranteed), VRDN (a)(b)	39,000,000		39,000,001
Delaware County Health Care Facilities (Willow Brook Christian Cmnty. Proj.) Series 1999, 1.95%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)	3,155,000		3,155,000
Delaware Gen. Oblig. BAN:
2.5% 5/5/09	12,100,000		12,176,174
3.75% 12/11/08	15,000,000		15,031,033
Dublin City School District BAN 4% 10/16/08	2,627,623		2,631,762
Franklin County Multi-family Rev. (Hanover Ridge Apts. Proj. 1.7%, LOC Fannie Mae, VRDN (a)(b)	4,350,000		4,350,000
Geauga County Rev. (South Franklin Circle Proj.):
Series 2007 A, 2.94%, LOC KeyBank NA, VRDN (a)	6,500,000		6,500,000
Series 2007B, 2.94%, LOC KeyBank NA, VRDN (a)	29,000,000		29,000,000
Hamilton City School District Participating VRDN Series Putters 1766, 1.63% (Liquidity Facility JPMorgan Chase Bank) (a)(d)	4,245,000		4,245,000
Hamilton County Hosp. Facilities Rev. (Childrens Hosp. Med. Ctr. Proj.):
Series 1997 A, 1.55%, LOC PNC Bank NA, Pittsburgh, VRDN (a)	1,300,000		1,300,000
Series 2000, 1.55%, LOC JPMorgan Chase Bank, VRDN (a)	6,570,000		6,570,000
Hamilton County Sales Tax Rev. Participating VRDN Series MS 2671, 1.6% (Liquidity Facility Morgan Stanley) (a)(d)	8,443,500		8,443,500
Hamilton Gen. Oblig. BAN 4% 9/11/08	12,960,000		12,966,144
Kent State Univ. Revs. Series 2008 A, 1.6%, LOC KeyBank NA, VRDN (a)	10,500,000		10,500,000
Municipal Securities - continued
	Principal Amount		Value
Ohio - continued
Lake County Hosp. Facilities Rev. (Lake Hosp. Sys., Inc. Proj.) Series 2002, 1.7%, LOC JPMorgan Chase Bank, VRDN (a)	$ 12,200,000		$ 12,200,000
Lake County Indl. Dev. Rev.:
(American Bus. Co. Proj.) 1.9%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)(b)	550,000		550,000
(Norshar Co. Proj.) 2.5%, LOC JPMorgan Chase Bank, VRDN (a)(b)	2,610,000		2,610,000
Lancaster BAN 2.625% 9/26/08	4,592,000		4,597,081
Lancaster Port Auth. Gas Rev. 1.55% (Liquidity Facility Royal Bank of Canada), VRDN (a)	12,200,000		12,200,000
Lorain County Gen. Oblig. BAN 4.5% 8/15/08	2,200,000		2,202,032
Lorain County Hosp. Rev. Participating VRDN Series BA 08 1094, 1.6% (Liquidity Facility Bank of America NA) (a)(d)	5,250,000		5,250,000
Lucas County Gen. Oblig. BAN 2% 4/22/09	9,130,000		9,148,079
Lucas County Multi-family Rev. (Lakewoods Proj.) 1.76%, LOC KeyBank NA, VRDN (a)(b)	4,000,000		4,000,000
Marysville Gen. Oblig. BAN 2.5% 6/3/09	7,670,000		7,708,167
Mason City School District BAN 2.75% 2/5/09	3,750,000		3,766,493
Mason Gen. Oblig. BAN 3% 3/12/09	2,600,000		2,613,262
Mason Indl. Dev. Rev. (Crane Plastics Co. Proj.) 1.65%, LOC U.S. Bank NA, Minnesota, VRDN (a)(b)	4,000,000		4,000,000
Maumee Gen. Oblig. BAN:
Series 2005, 3.25% 12/1/08	4,706,300		4,717,883
Series 2008 A, 3.25% 12/1/08	2,643,200		2,649,705
Series 2008 B, 3.25% 12/1/08	2,407,000		2,412,924
Medina County Indl. Dev. Rev. (Rembond Proj.) Series 1996, 2.5%, LOC JPMorgan Chase Bank, VRDN (a)(b)	1,230,000		1,230,000
Miamisburg City School District BAN 2.5% 11/13/08	12,000,000		12,030,534
Milford Exempt Village School District Participating VRDN Series Putters 2471, 1.63% (Liquidity Facility JPMorgan Chase Bank) (a)(d)	4,020,000		4,020,000
Montgomery County Health Care Facilities Rev. (Eastway Corp. & Property Resource Proj.) Series 1997, 1.9%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)(b)	2,330,000		2,330,000
Ohio Air Quality Dev. Auth. Rev.:
(AK Steel Corp. Proj.) Series A, 1.65%, LOC ABN-AMRO Bank NV, VRDN (a)(b)	23,500,000		23,500,000
(Cincinnati Gas & Elec. Co. Proj.) Series A:
1.8%, LOC Cr. Lyonnais SA, VRDN (a)(b)	12,100,000		12,100,000
2.1%, VRDN (a)	11,000,000		11,000,000
(FirstEnergy Corp. Proj.) Series A, 1.57%, LOC Wachovia Bank NA Charlotte, VRDN (a)(b)	11,000,000		11,000,000
Municipal Securities - continued
	Principal Amount		Value
Ohio - continued
Ohio Bldg. Auth.:
Bonds:
(Administrative Bldg. Fund Proj.) Series 2002 B, 5.25% 10/1/08 (FSA Insured)	$ 3,000,000		$ 3,014,267
(Adult Correctional Bldg. Fund Prog.) Series A, 4.9% 10/1/08	4,370,000		4,385,497
(Vern Riffe Ctr. Proj.) Series 2004 A, 5% 10/1/08	2,000,000		2,014,844
Participating VRDN Series Putters 2707, 1.63% (Liquidity Facility JPMorgan Chase & Co.) (a)(d)	3,055,000		3,055,000
Ohio Gen. Oblig.:
Bonds:
(Infrastructure Impt. Proj.) Series A, 5% 8/1/08	4,750,000		4,755,876
(Third Frontier Research and Dev. Proj.) Series 2006 A, 4% 5/1/09	3,600,000		3,671,094
Participating VRDN:
Series PT 1831, 1.57% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d)	5,315,000		5,315,000
Series PT 2046, 1.55% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d)	6,745,000		6,745,000
Series Putters 1295, 1.6% (Liquidity Facility JPMorgan Chase Bank) (a)(d)	1,895,000		1,895,000
(Common Schools Proj.) Series 2006 C, 1.5%, VRDN (a)	5,430,000		5,430,000
Ohio Higher Edl. Facility Commission Rev.:
Bonds (John Carroll Univ. Proj.) 5.85% 4/1/20 (Pre-Refunded to 4/1/09 @ 102) (c)	2,875,000		3,008,827
(Ashland Univ. Proj.) 1.6%, LOC KeyBank NA, VRDN (a)	16,030,000		16,030,000
(Case Western Reserve Univ. Proj.) Series 2002 A, 2.2%, VRDN (a)	8,025,000		8,025,000
(Ohio Northern Univ. Proj.) Series 2008 A, 1.6%, LOC JPMorgan Chase Bank, VRDN (a)	11,300,000		11,300,000
(Pooled Fing. Prog.):
Series 1996, 2.26%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	1,200,000		1,200,000
Series 1997, 1.76%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	5,290,000		5,290,000
Series 1998, 1.51%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	9,035,000		9,035,000
Series 2005 A, 1.57%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	7,805,000		7,805,000
Series A, 1.51%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	3,045,000		3,045,000
(Univ. Hosp. Health Sys. Proj.) Series 2008 D, 1.4%, LOC JPMorgan Chase Bank, VRDN (a)	14,400,000		14,400,000
Municipal Securities - continued
	Principal Amount		Value
Ohio - continued
Ohio Higher Edl. Facility Commission Rev.: - continued
(Univ. of Northwestern Ohio Proj.) 1.95%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)	$ 9,460,000		$ 9,460,000
(Xavier Univ. Proj.) 1.75%, LOC U.S. Bank NA, Minnesota, VRDN (a)	1,285,000		1,285,000
Ohio Hsg. Participating VRDN Series Clipper 06 8, 1.67% (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(b)(d)	4,959,000		4,959,000
Ohio Hsg. Fin. Agcy. Mtg. Rev.:
Participating VRDN:
Series BA 01 I, 1.7% (Liquidity Facility Bank of America NA) (a)(b)(d)	2,475,000		2,475,000
Series LB 03 L46J, 2.02% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(b)(d)	3,515,000		3,515,000
Series Merlots 00 A1, 1.86% (Liquidity Facility Wachovia Bank NA Charlotte ) (a)(b)(d)	2,180,000		2,180,000
Series Merlots 01 A78, 1.96% (Liquidity Facility Wachovia Bank NA Charlotte ) (a)(b)(d)	2,335,000		2,335,000
Series Merlots 02 A34, 1.71% (Liquidity Facility Wachovia Bank NA Charlotte ) (a)(b)(d)	820,000		820,000
Series Merlots 05 A10, 1.96% (Liquidity Facility Bank of New York, New York) (a)(b)(d)	4,645,000		4,645,000
Series Merlots 05 A16, 1.96% (Liquidity Facility Bank of New York, New York) (a)(b)(d)	3,790,000		3,790,000
Series Merlots 06 A2, 1.96% (Liquidity Facility Bank of New York, New York) (a)(b)(d)	10,510,000		10,510,000
Series Merlots 07 C89, 1.96% (Liquidity Facility Bank of New York, New York) (a)(b)(d)	6,840,000		6,840,000
Series Putters 1334, 1.8% (Liquidity Facility JPMorgan Chase & Co.) (a)(b)(d)	9,785,000		9,785,000
(Mtg.-Backed Securities Prog.):
Series 2005 B2, 1.6% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (a)(b)	8,455,000		8,455,000
Series 2005 F, 1.6% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (a)(b)	1,000,000		1,000,000
Series 2006 F, 1.7% (Liquidity Facility Citibank NA), VRDN (a)(b)	11,200,000		11,200,000
Series B, 1.66% (Liquidity Facility Citibank NA), VRDN (a)(b)	16,000,000		16,000,000
Series 2004 D, 1.6% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (a)(b)	3,600,000		3,600,000
Series B, 1.62% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (a)(b)	11,990,000		11,990,000
Municipal Securities - continued
	Principal Amount		Value
Ohio - continued
Ohio Hsg. Fin. Agcy. Mtg. Rev.: - continued
Series F, 1.66% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (a)(b)	$ 4,000,000		$ 4,000,000
Series H, 1.66% (Liquidity Facility KBC Bank NV), VRDN (a)(b)	12,630,000		12,625,031
Ohio Hsg. Fin. Agcy. Multi-family Hsg. Rev.:
(Club at Spring Valley Apts. Proj.) Series 1996 A, 1.65%, LOC Charter One Bank NA, VRDN (a)(b)	5,700,000		5,700,000
(Pedcor Invts. Willow Lake Apts. Proj.):
Series B, 1.78%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (a)(b)	460,000		460,000
Series C, 1.78%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (a)(b)	175,000		175,000
Series D, 1.78%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (a)(b)	175,000		175,000
(Pine Crossing Apts. Proj.) 1.7%, LOC LaSalle Bank NA, VRDN (a)(b)	5,670,000		5,670,000
(Shannon Glenn Apts. Proj.) 1.65%, LOC Fannie Mae, VRDN (a)(b)	4,130,000		4,130,000
(Wingate at Belle Meadows Proj.) 1.65%, LOC Fed. Home Ln. Bank, Cincinnati, VRDN (a)(b)	6,600,000		6,600,000
Ohio Hsg. Fin. Agcy. Residential Mtg. Rev.:
Participating VRDN:
Series Putters 1549, 1.8% (Liquidity Facility JPMorgan Chase Bank) (a)(b)(d)	6,690,000		6,690,000
Series Putters PA 1422R, 1.62% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(d)	9,500,000		9,500,000
Series 2006 J, 1.66% (Liquidity Facility State Street Bank & Trust Co., Boston), VRDN (a)(b)	12,000,000		12,000,000
Series 2006 N, 1.6% (Liquidity Facility State Street Bank & Trust Co., Boston), VRDN (a)(b)	25,770,000		25,770,000
Series 2008 B, 1.62% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (a)(b)	12,100,000		12,100,000
Ohio Solid Waste Rev.:
(BP Exploration & Oil, Inc. Proj.):
Series 1998, 2.1%, VRDN (a)(b)	32,700,000		32,700,000
Series 2000, 2.1% (BP PLC Guaranteed), VRDN (a)(b)	9,475,000		9,475,000
Series 2001, 2.1% (BP PLC Guaranteed), VRDN (a)(b)	2,150,000		2,150,000
(BP Products NA, Inc. Proj.):
Series B, 2.1% (BP PLC Guaranteed), VRDN (a)(b)	6,800,000		6,800,000
Series 2004, 2.1% (BP PLC Guaranteed), VRDN (a)(b)	1,895,000		1,895,000
Municipal Securities - continued
	Principal Amount		Value
Ohio - continued
Ohio State Univ. Gen. Receipts Participating VRDN Series Putters 2548, 1.6% (Liquidity Facility JPMorgan Chase Bank) (a)(d)	$ 645,000		$ 645,000
Ohio Wtr. Dev. Auth. (Waste Mgmt., Inc. Proj.) Series B, 1.7%, LOC Bank of America NA, VRDN (a)(b)	4,700,000		4,700,000
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Series A, 1.62%, LOC Barclays Bank PLC, VRDN (a)(b)	11,600,000		11,600,000
Ohio Wtr. Dev. Auth. Rev. Bonds Series DCL 08 046, 1.64%, tender 12/11/08 (Liquidity Facility Dexia Cr. Local de France) (a)(d)(e)	11,880,000		11,880,000
Olentangy Local School District BAN 2.5% 11/17/08	11,800,000		11,830,918
Perrysburg Gen. Oblig. BAN:
(Library Impt. Proj.) 4% 11/6/08	1,165,000		1,166,770
4% 11/6/08	2,753,000		2,757,182
Port of Greater Cincinnati Dev. Auth. Rev. (Nat'l. Underground Railroad Freedom Ctr., Inc. Proj.) Series 2003 A, 1.5%, LOC JPMorgan Chase Bank, LOC Fifth Third Bank, Cincinnati, VRDN (a)	15,200,000		15,200,000
Reynoldsburg City School District BAN (School Facilities Construction & Impt. Proj.) 2.5% 9/30/08	11,400,000		11,416,162
Richland County Gen. Oblig. BAN Series C, 4.5% 7/30/08	4,000,000		4,002,202
Richland County Health Care Facilities Rev. (Mansfield Memorial Homes Proj.) Series 2002, 1.65%, LOC KeyBank NA, VRDN (a)	4,330,000		4,330,000
Rickenbacker Port Auth. Indl. Dev. (Micro Inds. Corp. Proj.) Series 2000, 2.5%, LOC JPMorgan Chase Bank, VRDN (a)(b)	2,095,000		2,095,000
Shaker Heights Gen. Oblig. Bonds 3.75% 10/31/08	6,845,000		6,851,161
Stark County Indl. Dev. Rev. (H-P Products, Inc. Proj.) 1.76%, LOC KeyBank NA, VRDN (a)(b)	1,615,000		1,615,000
Stow Gen. Oblig. BAN 2.25% 5/8/09	10,675,000		10,729,574
Summit County Civic Facilities Rev. (YMCA of Akron Proj.) 1.64%, LOC KeyBank NA, VRDN (a)	4,270,000		4,270,000
Toledo Gen. Oblig. BAN 2.5% 10/23/08	11,400,000		11,421,041
Trumbull County BAN Series A, 2.625% 9/26/08	7,770,000		7,780,434
Twinsburg Indl. Dev. Rev. (United Stationers Supply Co. Proj.) 1.8%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b)	6,800,000		6,800,000
Univ. of Cincinnati Gen. Receipts:
BAN Series A, 3.25% 1/14/09	11,000,000		11,029,959
Series 2008 B, 1.59%, LOC Bayerische Landesbank (UNGTD), VRDN (a)	11,000,000		11,000,000
Warren County Health Care Facilities Rev. (Otterbein Homes Proj.) Series 1998 B, 1.55%, LOC Fifth Third Bank, Cincinnati, VRDN (a)	1,573,000		1,573,000
Municipal Securities - continued
	Principal Amount		Value
Ohio - continued
West Clermont Local School District BAN:
3.5% 8/5/08	$ 7,500,000		$ 7,505,093
4% 8/5/08	6,000,000		6,004,769
Wood County Indl. Dev. Rev. (Dowa THT America, Inc. Proj.) Series 1999, 1.65%, LOC Comerica Bank, Detroit, VRDN (a)(b)	3,585,000		3,585,000
Zanesville-Muskingum Port Auth. Indl. Dev. Rev. (Almana II LLC Proj.) Series 2000, 2%, LOC JPMorgan Chase Bank, VRDN (a)(b)	4,000,000		4,000,000
		1,061,896,372
Puerto Rico - 1.0%
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. Participating VRDN Series DCL 08 008, 1.55% (Liquidity Facility Dexia Cr. Local de France) (a)(d)	11,000,000		11,000,000
TOTAL INVESTMENT PORTFOLIO - 93.1% (Cost $1,072,896,372)		1,072,896,372
NET OTHER ASSETS - 6.9%		80,082,068
NET ASSETS - 100%		$ 1,152,978,440

Security Type Abbreviations

BAN - BOND ANTICIPATION NOTE

CP - COMMERCIAL PAPER

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.

(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $11,880,000 or 1.0% of net assets.

Additional information on each holding is as follows:

Security	Acquisition Date	Cost
Ohio Wtr. Dev. Auth. Rev. Bonds Series DCL 08 046, 1.64%, tender 12/11/08 (Liquidity Facility Dexia Cr. Local de France)	4/16/08	$ 11,880,000

Other Information

The following is a summary of the inputs used, as of June 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to the Financial Statements.

Valuation Inputs at Reporting Date:
Description	Total	Level 1	Level 2	Level 3
Investments in Securities	$ 1,072,896,372	$ -	$ 1,072,896,372	$ -

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, 2008 (Unaudited)
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,072,896,372)		$ 1,072,896,372
Cash		60,335,642
Receivable for fund shares sold		26,424,778
Interest receivable		5,549,203
Prepaid expenses		1,555
Other receivables		342,326
Total assets		1,165,549,876
Liabilities
Payable for fund shares redeemed	$ 11,459,706
Distributions payable	11,335
Accrued management fee	345,348
Transfer agent fee payable	674,584
Other affiliated payables	55,260
Other payables and accrued expenses	25,203
Total liabilities		12,571,436
Net Assets		$ 1,152,978,440
Net Assets consist of:
Paid in capital		$ 1,152,718,685
Undistributed net investment income		91,097
Accumulated undistributed net realized gain (loss) on investments		168,658
Net Assets, for 1,152,638,080 shares outstanding		$ 1,152,978,440
Net Asset Value, offering price and redemption price per share ($1,152,978,440 ÷ 1,152,638,080 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, 2008 (Unaudited)
Investment Income
Interest		$ 13,890,811
Expenses
Management fee	$ 2,159,041
Transfer agent fees	822,939
Accounting fees and expenses	65,682
Custodian fees and expenses	10,079
Independent trustees' compensation	2,618
Registration fees	30,150
Audit	15,022
Legal	1,644
Miscellaneous	3,088
Total expenses before reductions	3,110,263
Expense reductions	(399,453)	2,710,810
Net investment income		11,180,001
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers		168,658
Net increase in net assets resulting from operations		$ 11,348,659

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

Semiannual Report

Statement of Changes in Net Assets

	Six months ended June 30, 2008 (Unaudited)	Year ended December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 11,180,001	$ 33,262,767
Net realized gain (loss)	168,658	68,350
Net increase in net assets resulting from operations	11,348,659	33,331,117
Distributions to shareholders from net investment income	(11,173,269)	(33,265,909)
Share transactions at net asset value of $1.00 per share Proceeds from sales of shares	1,714,060,078	3,050,431,976
Reinvestment of distributions	11,000,579	32,818,742
Cost of shares redeemed	(1,789,509,392)	(2,822,514,413)
Net increase (decrease) in net assets and shares resulting from share transactions	(64,448,735)	260,736,305
Total increase (decrease) in net assets	(64,273,345)	260,801,513
Net Assets
Beginning of period	1,217,251,785	956,450,272
End of period (including undistributed net investment income of $91,097 and undistributed net investment income of $84,365, respectively)	$ 1,152,978,440	$ 1,217,251,785

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

Semiannual Report

Financial Highlights

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Income from Investment Operations
Net investment income	.009	.032	.030	.020	.008	.006
Distributions from net investment income	(.009)	(.032)	(.030)	(.020)	(.008)	(.006)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return B, C	.95%	3.22%	3.01%	1.99%	.76%	.64%
Ratios to Average Net Assets D
Expenses before reductions	.53% A	.52%	.54%	.54%	.54%	.54%
Expenses net of fee waivers, if any	.53%A	.52%	.54%	.54%	.54%	.54%
Expenses net of all reductions	.46%A	.41%	.40%	.43%	.53%	.53%
Net investment income	1.90%A	3.17%	2.98%	1.98%	.77%	.64%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,152,978	$ 1,217,252	$ 956,450	$ 801,905	$ 770,058	$ 687,760

^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 Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

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

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Notes to Financial Statements

For the period ended June 30, 2008 (Unaudited)

1. Organization.

Fidelity Ohio Municipal Income Fund (the Income Fund) is a fund of Fidelity Municipal Trust. Fidelity Ohio Municipal Money Market Fund (the Money Market Fund) is a fund of Fidelity Municipal Trust II. Each trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Fidelity Municipal Trust and Fidelity Municipal Trust II (the trusts) are organized as a Massachusetts business trust and a Delaware statutory trust, respectively. Each Fund is authorized to issue an unlimited number of shares. Each Fund may be affected by economic and political developments in the state of Ohio.

2. Significant Accounting Policies.

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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, each Fund uses independent pricing services approved by the Board of to value their investments.

For the Income Fund, debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value. Actual prices received at disposition may differ.

As permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities owned by the Money Market Fund are valued at amortized cost which approximates market value.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Significant Accounting Policies - continued

Security Valuation - continued

The Funds are subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Funds' fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1	Quoted prices in active markets for identical securities.
Level 2	Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3	Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

The aggregate value by input level, as of June 30, 2008, for each Fund's investments is included at the end of each Fund's Schedule of Investments.

Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 pm Eastern time and includes trades executed through the end of the prior business day for the Income Fund and trades executed through the end of the current business day for the Money Market Fund. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

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2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Funds' federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to market discount, deferred trustees compensation and losses deferred due to futures and options transactions.

The Funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.

The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows for each Fund:

	Cost for Federal Income Tax Purposes	Unrealized Appreciation	Unrealized Depreciation	Net Unrealized Appreciation/ (Depreciation)
Fidelity Ohio Municipal Income Fund	$ 442,808,759	$ 6,238,641	$ (7,057,974)	$ (819,333)
Fidelity Ohio Municipal Money Market Fund	1,072,896,372	-	-	-

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Significant Accounting Policies - continued

Short-Term Trading (Redemption) Fees. Shares held in the Income Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the Fund and accounted for as an addition to paid in capital.

3. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. Certain Funds may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable Fund's Schedule of Investments. Certain Funds may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. Certain Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable Fund's Schedule of Investments.

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $61,094,307 and $8,309,412, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and a group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based

Semiannual Report

5. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, each Fund's annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:

	Individual Rate	Group Rate	Total
Fidelity Ohio Municipal Income Fund	.25%	.12%	.37%
Fidelity Ohio Municipal Money Market Fund	.25%	.12%	.37%

Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, under which FIIOC performs the activities associated with the Funds' transfer, dividend disbursing and shareholder servicing agent functions. The Funds pay account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to the following annualized rates expressed as a percentage of average net assets:

Fidelity Ohio Municipal Income Fund	.08%	|
Fidelity Ohio Municipal Money Market Fund	.14%

Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

6. Committed Line of Credit.

The Income Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro rata portion of the line of credit, which is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:

Fidelity Ohio Municipal Income Fund $ 419

During the period, there were no borrowings on this line of credit.

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Notes to Financial Statements (Unaudited) - continued

7. Expense Reductions.

Through arrangements with each applicable Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.

	Custody expense reduction	Transfer Agent expense reduction
Fidelity Ohio Municipal Income Fund	$ 3,296	$ 45,938
Fidelity Ohio Municipal Money Market Fund	10,079	389,374

8. Other.

The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Ohio Municipal Income Fund / Fidelity Ohio Municipal Money Market Fund

Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its June 2008 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved agreements with foreign sub-advisers Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Japan) Inc., and Fidelity Management & Research (Hong Kong) Limited.

In considering whether to renew the Advisory Contracts for each fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contracts is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that each fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' investment personnel and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for each fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of a fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fees on Fidelity's Institutional Money Market Funds and launching Class IV and Institutional Class of certain of these funds; (iii) reducing the transfer agent fees for the Fidelity Select Portfolios and Investor Class of the VIP funds; and (iv) launching Class K of 29 equity funds as a lower-fee class available to certain employer-sponsored retirement plans.

Investment Performance. The Board considered whether each fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance, as well as each fund's relative investment performance measured against (i) a broad-based securities market index (bond fund only, as money market funds are typically not compared against a market index), and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. For each fund, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2007, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark") (bond fund only), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Ohio Municipal Income Fund

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the first quartile for all the periods shown. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions that may be taken by FMR to improve the fund's below-benchmark performance.

Fidelity Ohio Municipal Money Market Fund

Semiannual Report

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the second quartile for all the periods shown.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to each fund will benefit each fund's shareholders, particularly in light of the Board's view that each fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered each fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 27% would mean that 73% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Ohio Municipal Income Fund

Fidelity Ohio Municipal Money Market Fund

The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2007.

Based on its review, the Board concluded that each fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

Semiannual Report

In its review of each fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each fund compared to competitive fund median expenses. Each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that each fund's total expenses ranked below its competitive median for 2007.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that each fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

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Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and determined that the amount of profit is a fair entrepreneurial profit for the management of each fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends and actions to be taken by FMR to improve certain funds' overall performance; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability and the extent to which portfolio manager compensation is linked to fund performance; (v) Fidelity's fee structures; (vi) the funds' sub-advisory arrangements; and (vii) accounts managed by Fidelity other than the Fidelity funds.

Semiannual Report

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.

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

For mutual fund and brokerage trading.

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

(computer_graphic)
Fidelity's Web Site
www.fidelity.com

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

Semiannual Report

To Visit Fidelity

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

Arizona

7001 West Ray Road
Chandler, AZ

15445 N. Scottsdale Road
Scottsdale, AZ

California

815 East Birch Street
Brea, CA

1411 Chapin Avenue
Burlingame, CA

851 East Hamilton Avenue
Campbell, CA

19200 Von Karman Avenue
Irvine, CA

601 Larkspur Landing Circle
Larkspur, CA

2000 Avenue of the Stars
Los Angeles, CA

27101 Puerta Real
Mission Viejo, CA

73-575 El Paseo
Palm Desert, CA

251 University Avenue
Palo Alto, CA

123 South Lake Avenue
Pasadena, CA

16656 Bernardo Ctr. Drive
Rancho Bernardo, CA

1220 Roseville Parkway
Roseville, CA

1740 Arden Way
Sacramento, CA

7676 Hazard Center Drive
San Diego, CA

11943 El Camino Real
San Diego, CA

8 Montgomery Street
San Francisco, CA

3793 State Street
Santa Barbara, CA

1200 Wilshire Boulevard
Santa Monica, CA

398 West El Camino Real
Sunnyvale, CA

111 South Westlake Blvd
Thousand Oaks, CA

21701 Hawthorne Boulevard
Torrance, CA

2001 North Main Street
Walnut Creek, CA

6326 Canoga Avenue
Woodland Hills, CA

Colorado

281 East Flatiron Circle
Broomfield, CO

1625 Broadway
Denver, CO

9185 Westview Road
Lone Tree, CO

Connecticut

48 West Putnam Avenue
Greenwich, CT

265 Church Street
New Haven, CT

300 Atlantic Street
Stamford, CT

29 South Main Street
West Hartford, CT

Delaware

400 Delaware Avenue
Wilmington, DE

Florida

175 East Altamonte Drive
Altamonte Springs, FL

4400 N. Federal Highway
Boca Raton, FL

121 Alhambra Plaza
Coral Gables, FL

2948 N. Federal Highway
Ft. Lauderdale, FL

4671 Town Center Parkway
Jacksonville, FL

8880 Tamiami Trail, North
Naples, FL

230 Royal Palm Way
Palm Beach, FL

3501 PGA Boulevard
Palm Beach Gardens, FL

3550 Tamiami Trail, South
Sarasota, FL

1502 N. Westshore Blvd.
Tampa, FL

2465 State Road 7
Wellington, FL

Georgia

3445 Peachtree Road, N.E.
Atlanta, GA

1000 Abernathy Road
Atlanta, GA

Illinois

One North LaSalle Street
Chicago, IL

401 North Michigan Avenue
Chicago, IL

One Skokie Valley Road
Highland Park, IL

1415 West 22nd Street
Oak Brook, IL

15105 S LaGrange Road
Orland Park, IL

1572 East Golf Road
Schaumburg, IL

Indiana

4729 East 82nd Street
Indianapolis, IN

8480 Keystone Crossing
Indianapolis, IN

Kansas

5400 College Boulevard
Overland Park, KS

Maine

Three Canal Plaza
Portland, ME

Maryland

7315 Wisconsin Avenue
Bethesda, MD

610 York Road
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

238 Main Street
Cambridge, MA

200 Endicott Street
Danvers, MA

Semiannual Report

405 Cochituate Road
Framingham, MA

551 Boston Turnpike
Shrewsbury, MA

Michigan

500 E. Eisenhower Pkwy.
Ann Arbor, MI

280 Old N. Woodward Ave.
Birmingham, MI

30200 Northwestern Hwy.
Farmington Hills, MI

43420 Grand River Avenue
Novi, MI

Minnesota

7740 France Avenue South
Edina, MN

8342 3rd Street North
Oakdale, MN

Missouri

1524 South Lindbergh Blvd.
St. Louis, MO

Nevada

2225 Village Walk Drive
Henderson, NV

New Jersey

501 Route 73 South
Marlton, NJ

150 Essex Street
Millburn, NJ

35 Morris Street
Morristown, NJ

396 Route 17, North
Paramus, NJ

3518 Route 1 North
Princeton, NJ

530 Broad Street
Shrewsbury, NJ

New Mexico

2261 Q Street NE
Albuquerque, NM

New York

1130 Franklin Avenue
Garden City, NY

37 West Jericho Turnpike
Huntington Station, NY

1271 Avenue of the Americas
New York, NY

980 Madison Avenue
New York, NY

61 Broadway
New York, NY

350 Park Avenue
New York, NY

200 Fifth Avenue
New York, NY

733 Third Avenue
New York, NY

11 Penn Plaza
New York, NY

2070 Broadway
New York, NY

1075 Northern Blvd.
Roslyn, NY

799 Central Park Avenue
Scarsdale, NY

North Carolina

4611 Sharon Road
Charlotte, NC

7011 Fayetteville Road
Durham, NC

Ohio

3805 Edwards Road
Cincinnati, OH

1324 Polaris Parkway
Columbus, OH

1800 Crocker Road
Westlake, OH

28699 Chagrin Boulevard
Woodmere Village, OH

Oregon

7493 SW Bridgeport Road
Tigard, OR

Pennsylvania

600 West DeKalb Pike
King of Prussia, PA

1735 Market Street
Philadelphia, PA

12001 Perry Highway
Wexford, PA

Rhode Island

10 Memorial Boulevard
Providence, RI

Tennessee

3018 Peoples Street
Johnson City, TN

7628 West Farmington Blvd.
Germantown, TN

2035 Mallory Lane
Franklin, TN

Texas

10000 Research Boulevard
Austin, TX

4001 Northwest Parkway
Dallas, TX

12532 Memorial Drive
Houston, TX

2701 Drexel Drive
Houston, TX

6560 Fannin Street
Houston, TX

1701 Lake Robbins Drive
The Woodlands, TX

6500 N. MacArthur Blvd.
Irving, TX

6005 West Park Boulevard
Plano, TX

14100 San Pedro
San Antonio, TX

1576 East Southlake Blvd.
Southlake, TX

Utah

279 West South Temple
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

Washington

10500 NE 8th Street
Bellevue, WA

1518 6th Avenue
Seattle, WA

Washington, DC

1900 K Street, N.W.
Washington, DC

Wisconsin

16020 West Bluemound Road
Brookfield, WI

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

Semiannual Report

To Write Fidelity

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
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)
For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments Money
Management, Inc.

Fidelity Research & Analysis Company

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Citibank, N.A.

New York, NY

Fidelity Service Company, Inc.

Boston, MA

Custodian

Citibank, N.A.

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST^®) 1-800-544-5555

Automated lines for quickest service

OFF-USAN-0808
1.787787.105

Fidelity®
Pennsylvania Municipal
Income Fund

and

Fidelity
Pennsylvania Municipal
Money Market Fund

Semiannual Report

June 30, 2008
(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Fidelity Pennsylvania Municipal Income Fund
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 Pennsylvania Municipal Money Market Fund
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
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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

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

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

Semiannual Report

This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Domestic and international securities markets have struggled thus far in 2008. High-grade fixed-income investments produced modestly positive results, but many stock benchmarks suffered double-digit losses through the first half of this year. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2008 to June 30, 2008).

Actual Expenses

The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

	Beginning Account Value January 1, 2008	Ending Account Value June 30, 2008	Expenses Paid During Period* January 1, 2008 to June 30, 2008
Fidelity Pennsylvania Municipal Income Fund
Actual	$ 1,000.00	$ 999.80	$ 2.49
Hypothetical A	$ 1,000.00	$ 1,022.38	$ 2.51
Fidelity Pennsylvania Municipal Money Market Fund
Actual	$ 1,000.00	$ 1,010.10	$ 2.50
Hypothetical A	$ 1,000.00	$ 1,022.38	$ 2.51

^A 5% return per year before expenses

* Expenses are equal to each Fund's annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

	Annualized Expense Ratio
Fidelity Pennsylvania Municipal Income Fund	.50%
Fidelity Pennsylvania Municipal Money Market Fund	.50%

Semiannual Report

Fidelity Pennsylvania Municipal Income Fund

Investment Changes (Unaudited)

Top Five Sectors as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
General Obligations	30.6	30.6
Transportation	16.1	12.3
Escrowed/Pre-Refunded	11.3	14.7
Health Care	9.5	10.1
Education	9.1	11.3
Weighted Average Maturity as of June 30, 2008
		6 months ago
Years	6.2	5.7

The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity, taking into account any maturity shortening feature such as a call, refunding or redemption provision.

Duration as of June 30, 2008
		6 months ago
Years	6.1	5.9

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

Quality Diversification (% of fund's net assets)
As of June 30, 2008		As of December 31, 2007
	AAA 23.8%		AAA 79.0%
	AA,A 64.4%		AA,A 14.5%
	BBB 7.4%		BBB 5.2%
	BB and Below 0.1%		BB and Below 0.6%
	Not Rated 1.0%		Not Rated 0.0%
	Short-Term Investments and Net Other Assets 3.3%		Short-Term Investments and Net Other Assets 0.7%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings.

Semiannual Report

Fidelity Pennsylvania Municipal Income Fund

Investments June 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 96.7%
	Principal Amount	Value
Guam - 0.1%
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35	$ 325,000	$ 314,545
New Jersey/Pennsylvania - 1.9%
Delaware River Joint Toll Bridge Commission Pennsylvania-New Jersey Bridge Rev.:
Series A, 5% 7/1/27 (MBIA Insured)	1,425,000	1,457,105
Series 2003, 5.25% 7/1/19 (Pre-Refunded to 7/1/13 @ 100) (c)	1,000,000	1,082,890
Delaware River Port Auth. Pennsylvania & New Jersey Rev.:
(Port District Proj.) Series 2001 A, 5.5% 1/1/18 (FSA Insured)	3,000,000	3,197,760
Series 1999, 6% 1/1/18 (FSA Insured)	700,000	727,860
		6,465,615
Pennsylvania - 93.8%
Allegheny County Series C55, 5.375% 11/1/15 (MBIA Insured)	3,535,000	3,771,067
Allegheny County Arpt. Auth. Rev. (Pittsburg Int'l. Arpt. Proj.) Series B, 5% 1/1/16 (MBIA Insured) (b)	2,545,000	2,526,167
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1:
5.75% 1/1/11 (MBIA Insured) (b)	2,000,000	2,049,820
5.75% 1/1/12 (MBIA Insured) (b)	3,000,000	3,088,740
5.75% 1/1/14 (MBIA Insured) (b)	3,000,000	3,108,390
Allegheny County Higher Ed. Bldg. Auth. Univ. Rev.:
(Carnegie Mellon Univ. Proj.):
5.125% 3/1/32	1,700,000	1,729,070
5.25% 3/1/32	2,000,000	2,045,920
(Duquesne Univ. Proj.) 6.5% 3/1/10 (AMBAC Insured)	50,000	52,838
Allegheny County Hosp. Dev. Auth. Rev.:
(Jefferson Reg'l. Med. Ctr. Proj.) Series B, 5% 5/1/09	1,475,000	1,488,968
(Pittsburgh Med. Ctr. Proj.):
Series A, 5% 9/1/14	2,800,000	2,938,936
Series B, 5% 6/15/10	2,000,000	2,057,940
(UPMC Health Sys. Proj.) Series A:
4.625% 8/1/12 (MBIA Insured)	1,000,000	1,012,190
4.625% 8/1/14 (MBIA Insured)	3,560,000	3,603,396
Allegheny County Sanitation Auth. Swr. Rev.:
Series A, 5% 12/1/30 (MBIA Insured)	3,725,000	3,690,134
0% 12/1/12 (Escrowed to Maturity) (c)	2,260,000	1,905,971
5.5% 12/1/30 (MBIA Insured)	305,000	315,257
Municipal Bonds - continued
	Principal Amount	Value
Pennsylvania - continued
Annville-Cleona School District:
6% 3/1/28 (FSA Insured)	$ 1,500,000	$ 1,648,965
6% 3/1/31 (FSA Insured)	1,975,000	2,157,984
Bucks County Cmnty. College Auth. College Bldg. Rev. 5% 6/15/28	250,000	257,503
Bucks County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania Suburban Wtr. Co. Proj.) Series 2002, 5.55% 9/1/32 (FGIC Insured) (b)	1,870,000	1,814,218
Canon McMillan School District:
Series 2001 B, 5.75% 12/1/33 (FGIC Insured)	8,995,000	9,288,237
Series 2002 B, 5.75% 12/1/35 (FGIC Insured)	2,500,000	2,592,275
Central Dauphin School District Gen. Oblig. 7.5% 2/1/30 (Pre-Refunded to 2/1/16 @ 100) (c)	5,000,000	6,237,850
Chambersburg Area School District:
5.25% 3/1/26 (FGIC Insured)	2,000,000	2,047,780
5.25% 3/1/27 (FGIC Insured)	2,000,000	2,042,920
5.25% 3/1/29 (FGIC Insured)	3,600,000	3,655,512
Chester County Health & Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series B, 5.25% 5/15/22 (AMBAC Insured)	1,450,000	1,465,718
Delaware County Auth. College Rev. (Haverford College Proj.):
5.75% 11/15/29	5,000,000	5,275,800
6% 11/15/30	3,620,000	3,854,467
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.):
Series A:
5% 12/15/09	865,000	870,259
5% 12/15/10	905,000	911,190
Series B, 5% 12/15/08	800,000	801,832
Delaware County Indl. Dev. Auth. Rev. (Philadelphia Suburban Wtr. Co. Proj.) 6% 6/1/29 (FGIC Insured) (b)	2,500,000	2,504,300
Delaware County Reg'l. Wtr. Quality Cont. Auth. Swr. Rev. Series 2001, 5.25% 5/1/12 (FGIC Insured)	2,165,000	2,267,664
East Stroudsburg Area School District:
Series A, 7.5% 9/1/22 (FGIC Insured)	1,000,000	1,223,110
Series 2007, 7.75% 9/1/28 (Pre-Refunded to 9/1/16 @ 100) (c)	2,750,000	3,523,713
Easton Area School District Series 2006:
7.5% 4/1/22 (FSA Insured)	2,700,000	3,244,023
7.75% 4/1/25 (FSA Insured)	875,000	1,055,950
Municipal Bonds - continued
	Principal Amount	Value
Pennsylvania - continued
Harrisburg Auth. Dauphin County School Rev. (Harrisburg School District Rfdg. Proj.) Series 2002 A, 5.5% 4/1/14 (FGIC Insured)	$ 1,655,000	$ 1,735,731
Harrisburg Auth. Wtr. Rev. 5.75% 7/15/12 (FGIC Insured)	1,115,000	1,172,478
Hollidaysburg Area School District Series C:
5% 3/15/21 (FSA Insured)	2,205,000	2,317,543
5% 3/15/23 (FSA Insured)	1,765,000	1,834,276
Kennett Consolidated School District Series A:
5.25% 2/15/15 (FGIC Insured)	705,000	745,439
5.25% 2/15/15 (Pre-Refunded to 2/15/13 @ 100) (c)	605,000	650,284
Lancaster County Hosp. Auth. Health Ctr. Rev. (Masonic Homes Proj.) Series 2006, 5% 11/1/20	1,065,000	1,075,767
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (a)(b)	2,000,000	1,989,900
Mifflin County School District:
7.5% 9/1/26 (XL Cap. Assurance, Inc. Insured)	1,125,000	1,352,554
7.75% 9/1/30 (XL Cap. Assurance, Inc. Insured)	1,175,000	1,417,755
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A, 6% 6/1/16 (AMBAC Insured)	1,000,000	1,127,220
Montgomery County Higher Ed. & Health Auth. Rev. (Health Care-Holy Redeemer Health Proj.) Series A, 5.5% 10/1/08 (AMBAC Insured)	1,000,000	1,007,820
Montgomery County Indl. Dev. Auth. Poll. Cont. Rev. (Retirement Cmnty. Proj.) 5% 11/15/09	1,300,000	1,322,269
Muhlenberg School District Series AA, 5.375% 9/1/15 (FGIC Insured)	1,055,000	1,116,675
Northumberland County Auth. Commonwealth Lease Rev. (State Correctional Facilities Proj.) 0% 10/15/10 (Escrowed to Maturity) (c)	1,000,000	932,590
Owen J. Roberts School District 5.5% 8/15/19 (Pre-Refunded to 8/15/12 @ 100) (c)	1,525,000	1,656,150
Oxford Area School District 5.375% 2/1/27 (FGIC Insured)	1,790,000	1,868,527
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev.:
(Amtrak Proj.) Series 2001 A:
6.25% 11/1/31 (b)	3,300,000	3,311,880
6.375% 11/1/41 (b)	1,300,000	1,305,746
(Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (a)(b)	3,500,000	3,475,220
Municipal Bonds - continued
	Principal Amount	Value
Pennsylvania - continued
Pennsylvania Gen. Oblig. First Series:
5% 7/1/19	$ 2,500,000	$ 2,640,275
5.25% 2/1/14	125,000	132,120
Pennsylvania Higher Edl. Facilities Auth. Rev.:
(Lafayette College Proj.) 6% 5/1/30	2,200,000	2,295,238
(Slippery Rock Univ. Proj.) 5% 7/1/39 (XL Cap. Assurance, Inc. Insured)	2,500,000	2,368,275
(Trustees of the Univ. of Pennsylvania Proj.) Series B, 5.25% 9/1/15	1,000,000	1,096,680
(Univ. of Pennsylvania Health Systems Proj.) Series A, 5% 8/15/17 (AMBAC Insured)	3,000,000	3,172,650
(UPMC Health Sys. Proj.):
Series 1999 A:
5.25% 8/1/10 (FSA Insured)	1,000,000	1,036,930
5.25% 8/1/11 (FSA Insured)	1,000,000	1,034,750
Series 2001 A:
6% 1/15/22	400,000	419,248
6% 1/15/31	1,000,000	1,042,740
Series 2000 S, 5.5% 6/15/15 (AMBAC Insured)	500,000	519,830
Pennsylvania Indl. Dev. Auth. Rev. 5.5% 7/1/16 (AMBAC Insured)	1,080,000	1,144,368
Pennsylvania Pub. School Bldg. Auth. School Rev. (Philadelphia School District Proj.) 5% 6/1/33 (Pre-Refunded to 6/1/13 @ 100) (c)	3,210,000	3,443,399
Pennsylvania State Univ.:
Series A, 5% 8/15/29	3,945,000	4,029,384
5% 9/1/29	1,550,000	1,576,009
5% 9/1/35	4,485,000	4,525,006
Pennsylvania Tpk. Commission Oil Franchise Tax Rev. Series 2003 C, 5% 12/1/29 (MBIA Insured)	3,000,000	3,026,550
Pennsylvania Tpk. Commission Tpk. Rev.:
Series 2001 S:
5.625% 6/1/12 (FGIC Insured)	2,000,000	2,150,800
5.625% 6/1/14	3,595,000	3,832,953
Series 2004 A, 5.25% 12/1/32 (AMBAC Insured)	2,900,000	2,950,344
Series 2006 A:
5% 12/1/23 (AMBAC Insured)	7,695,000	7,948,396
5% 12/1/25 (AMBAC Insured)	7,345,000	7,537,659
5% 12/1/26 (AMBAC Insured)	3,500,000	3,580,185
Series 2008 A1, 5% 6/1/38 (Assured Guaranty Corp. Insured)	2,000,000	2,023,300
Philadelphia Arpt. Rev. 5.375% 6/15/11 (FGIC Insured) (b)	3,770,000	3,847,737
Municipal Bonds - continued
	Principal Amount	Value
Pennsylvania - continued
Philadelphia Auth. Indl. Dev. Lease Rev. Series A, 5% 10/1/13 (FGIC Insured)	$ 1,500,000	$ 1,554,435
Philadelphia Gas Works Rev.:
(1975 Gen. Ordinance Proj.):
Eighteenth Series:
5.25% 8/1/17 (Assured Guaranty Corp. Insured)	1,500,000	1,602,735
5.25% 8/1/19 (Assured Guaranty Corp. Insured)	1,000,000	1,055,770
5.25% 8/1/20 (Assured Guaranty Corp. Insured)	1,000,000	1,051,390
Seventeenth Series, 5.375% 7/1/20 (FSA Insured)	2,700,000	2,844,072
(1998 Gen. Ordinance Proj.):
Fifth Series A1:
5% 9/1/33 (FSA Insured)	2,800,000	2,830,884
5.25% 9/1/17 (Assured Guaranty Corp. Insured)	3,665,000	3,918,985
5.25% 9/1/18 (Assured Guaranty Corp. Insured)	3,340,000	3,548,950
Fourth Series, 5.25% 8/1/17 (Pre-Refunded to 8/1/13 @ 100) (c)	2,290,000	2,488,222
Seventh Series, 5% 10/1/37 (AMBAC Insured)	3,000,000	2,871,030
Philadelphia Gen. Oblig.:
Series 2001, 5.25% 9/15/12 (FSA Insured)	2,455,000	2,569,796
Series 2008 A, 5.25% 12/15/32 (FSA Insured)	6,000,000	6,179,880
Philadelphia Hospitals & Higher Ed. Facilities Auth. Health Systems Rev. (Jefferson Health Sys. Proj.) Series A, 5% 5/15/09	1,000,000	1,020,280
Philadelphia Hospitals & Higher Ed. Facilities Auth. Hosp. Rev. (Temple Univ. Health Sys. Proj.) Series B, 5% 7/1/11	1,685,000	1,705,523
Philadelphia Muni. Auth. Rev.:
(Muni. Svcs. Bldg. Lease Prog.) 0% 3/15/11 (FSA Insured)	1,000,000	912,260
Series B, 5.25% 11/15/11 (FSA Insured)	2,000,000	2,126,500
Philadelphia Redev. Auth. Rev. (Philadelphia Neighborhood Transformation Initiative Proj.):
Series 2002 A, 5.5% 4/15/13 (FGIC Insured)	2,810,000	2,881,009
Series 2005 C, 5% 4/15/31 (FGIC Insured)	1,000,000	946,590
Philadelphia School District:
Series 2004 D:
5.125% 6/1/34 (Pre-Refunded to 6/1/14 @ 100) (c)	1,800,000	1,949,922
5.25% 6/1/34 (Pre-Refunded to 6/1/14 @ 100) (c)	2,785,000	3,035,372
Series 2005 A, 5% 8/1/22 (AMBAC Insured)	2,900,000	2,948,256
Series 2005 D, 5.5% 6/1/16 (FSA Insured)	2,030,000	2,249,199
Municipal Bonds - continued
	Principal Amount	Value
Pennsylvania - continued
Philadelphia Wtr. & Wastewtr. Rev. Series A:
5% 11/1/31 (FGIC Insured)	$ 400,000	$ 386,088
5% 11/1/31 (Pre-Refunded to 11/1/12 @ 100) (c)	720,000	765,965
5% 7/1/35 (FSA Insured)	4,130,000	4,176,132
5.375% 11/1/19 (FGIC Insured)	3,000,000	3,098,400
Pittsburgh Gen. Oblig.:
Series A:
5% 9/1/11 (MBIA Insured)	5,020,000	5,208,200
5.5% 9/1/16 (AMBAC Insured)	2,565,000	2,685,786
5.5% 9/1/16 (Pre-Refunded to 3/1/12 @ 100) (c)	2,435,000	2,618,209
Series B:
5.25% 9/1/15 (FSA Insured)	2,000,000	2,192,040
5.25% 9/1/16 (FSA Insured)	3,000,000	3,298,200
Pittsburgh Wtr. & Swr. Auth. Wtr. & Swr. Sys. Rev. Series A, 6.5% 9/1/13 (FGIC Insured)	10,000,000	10,812,402
Scranton-Lackawanna Health & Welfare Auth. Rev. (Cmnty. Med. Ctr. Proj.) 5.5% 7/1/12 (MBIA Insured)	3,375,000	3,413,914
Spring-Ford Area School District:
5.375% 4/1/16 (FSA Insured)	790,000	837,526
5.375% 4/1/17 (FSA Insured)	830,000	875,177
5.375% 4/1/18 (FSA Insured)	875,000	920,124
State Pub. School Bldg. Auth. College Rev.:
(Delaware County Cmnty. College Proj.) 5% 10/1/20 (FSA Insured)	1,000,000	1,052,740
(Montgomery County Cmnty. College Proj.):
5% 5/1/27 (FSA Insured)	1,775,000	1,831,942
5% 5/1/28 (FSA Insured)	1,000,000	1,028,090
Upper Saint Clair Township School District 5.375% 7/15/16 (FSA Insured)	1,855,000	1,974,703
West Allegheny School District Series B, 5.25% 2/1/12 (FGIC Insured)	1,850,000	1,937,006
Westmoreland County Gen. Oblig.:
0% 8/1/15 (Escrowed to Maturity) (c)	4,290,000	3,227,839
0% 8/1/16 (Escrowed to Maturity) (c)	2,730,000	1,956,045
Westmoreland County Indl. Dev. Auth. Rev. (Nat'l. Waste & Energy Corp./Valley Landfill Expansion Proj.) 5.1%, tender 5/1/09 (a)(b)	2,700,000	2,718,738
Westmoreland County Muni. Auth. Muni. Svc. Rev.:
Series A:
0% 8/15/19 (FGIC Insured)	5,000,000	2,795,250
0% 8/15/20 (FGIC Insured)	2,500,000	1,309,300
Series C, 0% 8/15/17 (Escrowed to Maturity) (c)	2,325,000	1,557,936
Municipal Bonds - continued
	Principal Amount	Value
Pennsylvania - continued
Wilson School District 5.25% 6/1/25 (XL Cap. Assurance, Inc. Insured)	$ 5,740,000	$ 5,792,291
York City Swr. Auth. Swr. Rev. 0% 12/1/12 (MBIA Insured)	3,235,000	2,723,514
York County School of Technology Auth. Lease Rev. 5.375% 2/15/18 (Pre-Refunded to 2/15/13 @ 100) (c)	1,000,000	1,080,140
		317,481,481
Puerto Rico - 0.9%
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.:
Series II, 5.375% 7/1/16 (MBIA Insured)	1,000,000	1,039,200
Series QQ, 5.25% 7/1/13 (XL Cap. Assurance, Inc. Insured)	500,000	521,600
Puerto Rico Govt. Dev. Bank Series B, 5% 12/1/10	1,500,000	1,538,955
		3,099,755

TOTAL INVESTMENT PORTFOLIO - 96.7% (Cost $326,226,832)		327,361,396
NET OTHER ASSETS - 3.3%		11,102,887
NET ASSETS - 100%	$ 338,464,283

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.

Other Information

The following is a summary of the inputs used, as of June 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description	Total	Level 1	Level 2	Level 3
Investments in Securities	$ 327,361,396	$ -	$ 327,361,396	$ -

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

General Obligations	30.6%
Transportation	16.1%
Escrowed/Pre-Refunded	11.3%
Health Care	9.5%
Education	9.1%
Water & Sewer	8.4%
Electric Utilities	8.4%
Others* (individually less than 5%)	6.6%
	100.0%

*Includes net other assets

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

Semiannual Report

Fidelity Pennsylvania Municipal Income Fund

Financial Statements

Statement of Assets and Liabilities

	June 30, 2008 (Unaudited)
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $326,226,832)		$ 327,361,396
Cash		7,669,469
Receivable for investments sold		54,336
Receivable for fund shares sold		292,102
Interest receivable		4,069,885
Prepaid expenses		438
Other receivables		85,224
Total assets		339,532,850
Liabilities
Payable for fund shares redeemed	$ 418,477
Distributions payable	378,048
Accrued management fee	103,455
Transfer agent fee payable	106,837
Other affiliated payables	36,421
Other payables and accrued expenses	25,329
Total liabilities		1,068,567
Net Assets		$ 338,464,283
Net Assets consist of:
Paid in capital		$ 336,937,445
Undistributed net investment income		51,825
Accumulated undistributed net realized gain (loss) on investments		340,449
Net unrealized appreciation (depreciation) on investments		1,134,564
Net Assets, for 32,177,146 shares outstanding		$ 338,464,283
Net Asset Value, offering price and redemption price per share ($338,464,283 ÷ 32,177,146 shares)		$ 10.52

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

Semiannual Report

Statement of Operations

Six months ended June 30, 2008 (Unaudited)
Investment Income
Interest		$ 7,014,679
Expenses
Management fee	$ 598,851
Transfer agent fees	127,907
Accounting fees and expenses	42,500
Custodian fees and expenses	2,477
Independent trustees' compensation	716
Registration fees	20,780
Audit	21,407
Legal	1,794
Miscellaneous	1,178
Total expenses before reductions	817,610
Expense reductions	(89,745)	727,865
Net investment income		6,286,814
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers		654,240
Change in net unrealized appreciation (depreciation) on investment securities		(7,046,133)
Net gain (loss)		(6,391,893)
Net increase (decrease) in net assets resulting from operations		$ (105,079)

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

Semiannual Report

Fidelity Pennsylvania Municipal Income Fund
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2008 (Unaudited)	Year ended December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 6,286,814	$ 12,013,728
Net realized gain (loss)	654,240	1,074,179
Change in net unrealized appreciation (depreciation)	(7,046,133)	(1,361,473)
Net increase (decrease) in net assets resulting from operations	(105,079)	11,726,434
Distributions to shareholders from net investment income	(6,282,339)	(12,001,160)
Distributions to shareholders from net realized gain	(88,467)	(1,298,961)
Total distributions	(6,370,806)	(13,300,121)
Share transactions Proceeds from sales of shares	51,191,964	60,277,345
Reinvestment of distributions	4,169,789	9,041,059
Cost of shares redeemed	(25,886,332)	(57,957,753)
Net increase (decrease) in net assets resulting from share transactions	29,475,421	11,360,651
Redemption fees	1,905	2,924
Total increase (decrease) in net assets	23,001,441	9,789,888
Net Assets
Beginning of period	315,462,842	305,672,954
End of period (including undistributed net investment income of $51,825 and undistributed net investment income of $47,896, respectively)	$ 338,464,283	$ 315,462,842
Other Information Shares
Sold	4,806,865	5,643,658
Issued in reinvestment of distributions	393,527	845,339
Redeemed	(2,428,847)	(5,426,350)
Net increase (decrease)	2,771,545	1,062,647

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

Semiannual Report

Financial Highlights

	Six months ended June 30,2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 10.73	$ 10.78	$ 10.80	$ 11.02	$ 11.06	$ 11.07
Income from Investment Operations
Net investment income D	.204	.419	.433	.440	.454	.463
Net realized and unrealized gain (loss)	(.207)	(.005)	(.009)	(.148)	.006	.091
Total from investment operations	(.003)	.414	.424	.292	.460	.554
Distributions from net investment income	(.204)	(.419)	(.433)	(.439)	(.452)	(.462)
Distributions from net realized gain	(.003)	(.045)	(.011)	(.073)	(.048)	(.102)
Total distributions	(.207)	(.464)	(.444)	(.512)	(.500)	(.564)
Redemption fees added to paid in capital D, F	-	-	-	-	-	-
Net asset value, end of period	$ 10.52	$ 10.73	$ 10.78	$ 10.80	$ 11.02	$ 11.06
Total Return B, C	(.02)%	3.94%	4.02%	2.70%	4.28%	5.11%
Ratios to Average Net Assets E
Expenses before reductions	.50% A	.50%	.50%	.50%	.50%	.51%
Expenses net of fee waivers, if any	.50% A	.50%	.50%	.50%	.50%	.51%
Expenses net of all reductions	.45% A	.46%	.42%	.45%	.49%	.50%
Net investment income	3.85% A	3.92%	4.03%	4.02%	4.14%	4.18%
Supplemental Data
Net assets, end of period (000 omitted)	$ 338,464	$ 315,463	$ 305,673	$ 306,732	$ 297,621	$ 292,019
Portfolio turnover rate	21% A	19%	19%	26%	14%	18%

^A Annualized

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

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

^D Calculated based on average shares outstanding during the period.

^E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

^F Amount represents less than $.001 per share.

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

Semiannual Report

Fidelity Pennsylvania Municipal Money Market Fund

Investment Changes (Unaudited)

Maturity Diversification
Days	% of fund's investments 6/30/08	% of fund's investments 12/31/07	% of fund's investments 6/30/07
0 - 30	90.9	85.5	93.7
31 - 90	1.8	1.5	0.4
91 - 180	1.5	6.5	0.8
181 - 397	5.8	6.5	5.1
Weighted Average Maturity
	6/30/08	12/31/07	6/30/07
Fidelity Pennsylvania Municipal Money Market Fund	25 Days	31 Days	25 Days
Pennsylvania Tax-Free Money Market Funds Average*	22 Days	23 Days	26 Days

Asset Allocation (% of fund's net assets)
As of June 30, 2008		As of December 31, 2007
	Variable Rate Demand Notes (VRDNs) 82.3%		Variable Rate Demand Notes (VRDNs) 84.3%
	Commercial Paper (including CP Mode) 2.0%		Commercial Paper (including CP Mode) 2.3%
	Tender Bonds 3.6%		Tender Bonds 3.8%
	Municipal Notes 1.7%		Municipal Notes 4.8%
	Other Investments 7.6%		Other Investments 3.5%
	Net Other Assets 2.8%		Net Other Assets 1.3%

*Source: iMoneyNet, Inc.

Semiannual Report

Fidelity Pennsylvania Municipal Money Market Fund

Investments June 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Municipal Securities - 97.2%
	Principal Amount		Value
New Jersey/Pennsylvania - 0.2%
Delaware River Port Auth. Pennsylvania & New Jersey Rev. Participating VRDN Series SGA 89, 1.7% (Liquidity Facility Societe Generale) (a)(d)	$ 2,045,000		$ 2,045,000
Pennsylvania - 95.8%
Adams County Indl. Dev. Auth. Rev. (Gettysburg Foundation Proj.) Series A, 1.21%, LOC Manufacturers & Traders Trust Co., VRDN (a)	5,300,000		5,300,000
Allegheny County Arpt. Auth. Rev. Participating VRDN:
Series MT 508, 1.6% (Liquidity Facility DEPFA BANK PLC) (a)(b)(d)	15,405,000		15,405,000
Series MT 518, 1.6% (Liquidity Facility Landesbank Hessen-Thuringen) (a)(b)(d)	14,120,000		14,120,000
Series PT 3965, 1.62% (Liquidity Facility Dexia Cr. Local de France) (a)(b)(d)	10,785,000		10,785,000
Series Putters 3743, 1.62% (Liquidity Facility Dexia Cr. Local de France) (a)(b)(d)	3,175,000		3,175,000
Allegheny County Hosp. Dev. Auth. Rev.:
Bonds:
(Pittsburgh Med. Ctr. Proj.):
Series 2008 A:
4% 9/1/08	7,600,000		7,622,158
4% 3/1/09	3,000,000		3,035,525
Series 2008 B, 4% 6/15/09	9,690,000		9,884,571
(South Hills Health Sys. Proj.) Series 2000 A, 2%, tender 6/1/09, LOC PNC Bank NA, Pittsburgh (a)	6,750,000		6,750,000
Participating VRDN Series LB 07 P59W, 2% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(d)	4,975,000		4,975,000
Allegheny County Indl. Dev. Auth. Econ. Dev. Rev. (Glassport Realty Ltd. Proj.) 2.1%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a)(b)	1,300,000		1,300,000
Allegheny County Indl. Dev. Auth. Health Care Rev. (Vincentian Collaborative Sys. Proj.) Series 2008 A, 1.54%, LOC PNC Bank NA, Pittsburgh, VRDN (a)	4,300,000		4,300,000
Allegheny County Indl. Dev. Auth. Rev.:
Bonds (Animal Friends, Inc. Proj.) 3.8%, tender 7/1/08, LOC PNC Bank NA, Pittsburgh (a)	2,375,000		2,375,000
(Union Elec. Steel Co. Proj.) Series 1996 A, 1.62%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b)	3,120,000		3,120,000
Beaver County Indl. Dev. Auth. Poll. Cont. Rev.:
(FirstEnergy Nuclear Generation Corp. Proj.) Series 2006 A, 2.5%, LOC Barclays Bank PLC, VRDN (a)	3,000,000		3,000,000
(Pennsylvania Elec. Co. Proj.) Series 2005 B, 1.61%, LOC Bank of Nova Scotia, New York Agcy., VRDN (a)(b)	5,000,000		5,000,000
Municipal Securities - continued
	Principal Amount		Value
Pennsylvania - continued
Berks County Indl. Dev. Auth. Rev. (Kutztown Univ. Foundation, Inc. Proj.) 1.5%, LOC Wachovia Bank NA Charlotte, VRDN (a)	$ 3,350,000		$ 3,350,000
Berks County Muni. Auth. Rev. (Phoebe-Devitt Homes Obligated Group Proj.) Series 2008 A, 1.5%, LOC Banco Santander SA, VRDN (a)	7,600,000		7,600,000
Bethlehem Area School District 1.7% (FSA Insured), VRDN (a)	15,050,000		15,050,000
Blair County Indl. Dev. Auth. Rev. (Homewood at Martinsburg Proj.) 1.71%, LOC Manufacturers & Traders Trust Co., VRDN (a)	3,200,000		3,200,000
Bucks County Indl. Dev. Auth. Econ. Dev. Rev. (Law School Admission Council, Inc. Proj.) Series 2003, 1.55%, LOC Allied Irish Banks PLC, VRDN (a)	1,950,000		1,950,000
Bucks County Indl. Dev. Auth. Rev.:
(Double H Plastics, Inc. Proj.) Series 1993, 1.62%, LOC Wachovia Bank NA Charlotte, VRDN (a)(b)	1,400,000		1,400,000
(Snowball Real Estate LP Proj.) 1.67%, LOC Wachovia Bank NA Charlotte, VRDN (a)(b)	1,960,000		1,960,000
Butler County Indl. Dev. Auth. Rev. (Armco, Inc. Proj.) Series 1996 A, 1.62%, LOC Fifth Third Bank, Cincinnati, VRDN (a)(b)	3,215,000		3,215,000
Cambria County Ind. Dev. Auth. (Cambria Cogen Co. Proj.):
Series 1998 A1, 2.1%, LOC Bayerische Hypo-und Vereinsbank AG, VRDN (a)(b)	11,725,000		11,725,000
Series 1998 A2, 1.7%, LOC Bayerische Hypo-und Vereinsbank AG, VRDN (a)(b)	3,300,000		3,300,000
Central York School District 1.57% (FSA Insured), VRDN (a)	3,810,000		3,810,000
Chester County Indl. Dev. Auth. Rev. (Archdiocese of Philadelphia Proj.) 1.65%, LOC Wachovia Bank NA Charlotte, VRDN (a)	4,840,000		4,840,000
Chester County Indl. Dev. Auth. Student Hsg. Rev. (Univ. Student Hsg., LLC at West Chester Univ. of Pennsylvania Proj.) Series 2008 A, 1.5%, LOC Citizens Bank of Pennsylvania, VRDN (a)	8,000,000		8,000,000
Cumberland County Muni. Auth. Rev. (Presbyterian Homes Proj.) Series 2008 B, 1.47%, LOC Bank of America NA, VRDN (a)	8,300,000		8,300,000
Dallastown Area School District York County 1.7% (FSA Insured), VRDN (a)	8,100,000		8,100,000
Delaware County Auth. College Rev. (Haverford College Proj.) 1.5%, VRDN (a)	10,900,000		10,900,000
Delaware County Indl. Dev. Auth. Poll. Cont. Rev.:
(BP Exploration & Oil, Inc. Proj.) 1.7% (BP PLC Guaranteed), VRDN (a)	6,300,000		6,300,000
Municipal Securities - continued
	Principal Amount		Value
Pennsylvania - continued
Delaware County Indl. Dev. Auth. Poll. Cont. Rev.: - continued
(PECO Energy Co. Proj.) Series 1999 A, 3%, LOC Wachovia Bank NA Charlotte, VRDN (a)	$ 4,100,000		$ 4,100,000
East Stroudsburg Area School District Participating VRDN Series BA 08 3037X, 1.6% (Liquidity Facility Bank of America NA) (a)(d)	5,250,000		5,250,000
Easton Area School District Series 2008, 1.7% (FSA Insured), VRDN (a)	8,300,000		8,300,000
Geisinger Auth. Health Sys. Rev. Participating VRDN Series ROC II R 11013, 1.55% (Liquidity Facility Citibank NA) (a)(d)	3,430,000		3,430,000
Gen. Auth. of South Central (Lutheran Social Svc. Proj.) 1.21%, LOC Manufacturers & Traders Trust Co., VRDN (a)	4,400,000		4,400,000
Harrisburg Auth. Dauphin County School Rev. (Harrisburg School District Rfdg. Proj.) Series 2006, 1.7% (FSA Insured), VRDN (a)	7,000,000		7,000,000
Harrisburg Auth. Wtr. Rev. Series 2002 B, 1.7% (FSA Insured), VRDN (a)	5,500,000		5,500,000
Haverford Township School District 1.7% (FSA Insured), VRDN (a)	8,300,000		8,300,000
Indiana County Indl. Dev. Auth. Poll. Cont. Rev. (Exelon Generation Co. LLC Proj.) Series A, 2.92%, LOC BNP Paribas SA, VRDN (a)(b)	9,700,000		9,700,000
Lancaster County Hosp. Auth. Health Ctr. Rev. (Masonic Homes Proj.):
Series 2008 B, 2.1%, LOC Wachovia Bank NA Charlotte, VRDN (a)	2,500,000		2,500,000
Series 2008 D, 2.1%, LOC JPMorgan Chase Bank, VRDN (a)	11,175,000		11,175,000
Lancaster Indl. Dev. Auth. Rev. (Mennonite Home Proj.) 1.21%, LOC Manufacturers & Traders Trust Co., VRDN (a)	7,000,000		7,000,000
Lawrence County Indl. Dev. Auth. Indl. Dev. Rev. (Atlantic States Materials Proj.) Series 1999, 1.62%, LOC Wachovia Bank NA Charlotte, VRDN (a)(b)	800,000		800,000
Lycoming County Indl. Dev. Auth. (FXD-Brodart Co. Proj.):
Series A, 1.31%, LOC Manufacturers & Traders Trust Co., VRDN (a)(b)	1,905,000		1,905,000
Series C, 1.31%, LOC Manufacturers & Traders Trust Co., VRDN (a)(b)	1,000,000		1,000,000
Montgomery County Redev. Auth. Multi-family Hsg. Rev.:
(Forge Gate Apts. Proj.) Series 2001 A, 1.8%, LOC Fannie Mae, VRDN (a)	4,990,000		4,990,000
(Kingswood Apts. Proj.) Series 2001 A, 1.8%, LOC Fannie Mae, VRDN (a)	2,805,000		2,805,000
Municipal Securities - continued
	Principal Amount		Value
Pennsylvania - continued
Northampton County Gen. Purp. College Rev. RAN 3.35% 12/1/08	$ 6,300,000		$ 6,300,000
Northampton County Indl. Dev. Auth. Rev. Bonds (American Wtr. Cap. Corp. Proj.) Series 1991, 1.85% tender 7/2/08, CP mode (b)	7,700,000		7,700,000
Northampton Indl. Dev. Auth. Rev. (Ultra-Poly Corp./Portland Ind. Park Proj.) Series 1997, 1.7%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b)	2,922,000		2,922,000
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev.:
Bonds (PSEG Pwr. LLC Proj.) 4%, tender 1/15/09 (a)(b)	6,900,000		6,900,000
(Amtrak Proj.) Series B, 1.75%, LOC JPMorgan Chase Bank, VRDN (a)(b)	20,910,000		20,910,001
(Shippingport Proj.) Series A, 1.66%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b)	10,100,000		10,100,000
Pennsylvania Econ. Dev. Fing. Auth. Health Sys. Rev. Series 2007 A, 1.7% 7/8/08, CP	7,000,000		7,000,000
Pennsylvania Econ. Dev. Fing. Auth. Indl. Dev. Rev.:
(AMC Delancey Traditions of Hershey Partners, LP Proj.) Series 2006, 1.63%, LOC Citizens Bank of Pennsylvania, VRDN (a)(b)	6,000,000		6,000,000
(Solar Innovations, Inc. Proj.) 1.26%, LOC Manufacturers & Traders Trust Co., VRDN (a)(b)	7,000,000		7,000,000
(Westrum Hanover, LP Proj.) Series 2004, 1.63%, LOC Fed. Home Ln. Bank Pittsburg, VRDN (a)(b)	7,350,000		7,350,000
(Westrum Harleysville II, LP Proj.) Series 2005, 1.63%, LOC Fed. Home Ln. Bank Pittsburg, VRDN (a)(b)	11,535,000		11,535,000
Series 2002 B5, 1.62%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b)	5,400,000		5,400,000
Series 2002 B6, 1.62%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b)	700,000		700,000
Series 2004 D2, 1.62%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b)	1,600,000		1,600,000
Series 2004 D6, 1.62%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b)	2,300,000		2,300,000
Pennsylvania Econ. Dev. Fing. Auth. Manufacturing Facility Rev. (Dodge Realty Partners Proj.) 1.62%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b)	3,700,000		3,700,000
Pennsylvania Econ. Dev. Fing. Auth. Wastewtr. Treatment Rev. (Sunoco, Inc. (R&M) Proj.):
Series A, 1.885%, VRDN (a)(b)	7,400,000		7,400,000
Series B, 1.85% (Sunoco, Inc. Guaranteed), VRDN (a)(b)	10,100,000		10,100,000
Pennsylvania Gen. Oblig.:
Bonds:
First Series, 5.25% 2/1/09	7,600,000		7,772,258
Second Series 1992, 6% 7/1/09	4,375,000		4,554,943
Municipal Securities - continued
	Principal Amount		Value
Pennsylvania - continued
Pennsylvania Gen. Oblig.: - continued
Bonds:
Second Series:
5% 7/1/08	$ 4,350,000		$ 4,350,000
5.25% 10/15/08	2,300,000		2,312,686
5.25% 1/1/09	1,320,000		1,339,557
Participating VRDN:
Series BBT 08 1, 1.56% (Liquidity Facility Branch Banking & Trust Co.) (a)(d)	5,000,000		5,000,000
Series Floaters 2223, 1.55% (Liquidity Facility Morgan Stanley) (a)(d)	2,400,000		2,400,000
Series MS 2796, 1.55% (Liquidity Facility Morgan Stanley) (a)(d)	5,180,000		5,180,000
Series ROC II R 11056, 1.55% (Liquidity Facility Citibank NA) (a)(d)	3,700,000		3,700,000
Series ROC II R 11505, 1.55% (Liquidity Facility Citibank NA) (a)(d)	4,510,000		4,510,000
Pennsylvania Higher Ed. Assistance Agcy. Student Ln. Rev. Series 2001 B, 1.63% (FSA Insured), VRDN (a)(b)	8,200,000		8,200,000
Pennsylvania Higher Edl. Facilities Auth. College & Univ. Revs. Bonds:
(Trustees of the Univ. of Pennsylvania Proj.) 5.5% 7/15/38 (Pre-Refunded to 7/15/08 @ 100) (c)	1,175,000		1,175,829
(Univ. of Pennsylvania Proj.) 5.5% 7/15/38 (Pre-Refunded to 7/15/08 @ 100) (c)	9,760,000		9,775,248
Pennsylvania Higher Edl. Facilities Auth. Hosp. Rev. Participating VRDN Series MT 42, 1.54% (Liquidity Facility Lloyds TSB Bank PLC) (a)(d)	8,590,000		8,590,000
Pennsylvania Higher Edl. Facilities Auth. Rev.:
Bonds (Point Park College Proj.) 3.38%, tender 11/3/08, LOC PNC Bank NA, Pittsburgh (a)	1,000,000		1,000,000
(Student Assoc., Inc. Student Hsg. Proj.) Series 2006 A, 1.55%, LOC Citizens Bank of Pennsylvania, VRDN (a)	8,900,000		8,900,000
Pennsylvania Hsg. Fin. Agcy. Participating VRDN:
Series LB 06 K 57, 1.65% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(b)(d)	2,500,000		2,500,000
Series LB 06 P35, 2.15% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(b)(d)	1,335,000		1,335,000
Pennsylvania Hsg. Fin. Agcy. Single Family Mtg. Rev.:
Bonds:
Series 2008 101A, 2.35%, tender 3/1/09 (a)(b)	2,700,000		2,700,000
Series 2008 101B, 2.15%, tender 3/1/09 (a)	3,260,000		3,260,000
Municipal Securities - continued
	Principal Amount		Value
Pennsylvania - continued
Pennsylvania Hsg. Fin. Agcy. Single Family Mtg. Rev.: - continued
Bonds: - continued
Series Merlots 07 C50, 2.15%, tender 8/20/08 (Liquidity Facility Bank of New York, New York) (a)(b)(d)(e)	$ 7,030,000		$ 7,030,000
Participating VRDN:
Series BA 08 1118, 1.7% (Liquidity Facility Bank of America NA) (a)(b)(d)	5,625,000		5,625,000
Series Merlots 06 B15, 1.96% (Liquidity Facility Wachovia Bank NA Charlotte ) (a)(b)(d)	4,215,000		4,215,000
Series MS 06 2158, 1.7% (Liquidity Facility Morgan Stanley) (a)(b)(d)	1,500,000		1,500,000
Series MS 08 2351, 1.7% (Liquidity Facility Morgan Stanley) (a)(b)(d)	2,290,000		2,290,000
Series MS 08 2380, 1.7% (Liquidity Facility Morgan Stanley) (a)(b)(d)	2,500,000		2,500,000
Series Putters 1213 B, 1.78% (Liquidity Facility JPMorgan Chase & Co.) (a)(b)(d)	2,735,000		2,735,000
Series Putters 152, 1.78% (Liquidity Facility JPMorgan Chase Bank) (a)(b)(d)	1,440,000		1,440,000
Series 2002 74A, 1.7% (Liquidity Facility Lloyds TSB Bank PLC), VRDN (a)(b)	8,100,000		8,100,000
Series 2002 75A, 1.7% (Liquidity Facility Lloyds TSB Bank PLC), VRDN (a)(b)	8,100,000		8,100,000
Series 2003 79B, 1.7% (Liquidity Facility BNP Paribas SA), VRDN (a)(b)	6,450,000		6,450,000
Series 2004 81C, 1.7% (Liquidity Facility Lloyds TSB Bank PLC), VRDN (a)(b)	5,000,000		5,000,000
Series 2006 92B, 2.05% (Liquidity Facility Landesbank Hessen-Thuringen), VRDN (a)(b)	15,000,000		15,000,000
Series 2006 93B, 1.5% (Liquidity Facility Dexia Cr. Local de France), VRDN (a)(b)	4,325,000		4,325,000
Series 2008 102C, 1.5% (Liquidity Facility Bank of America NA), VRDN (a)(b)	8,200,000		8,200,000
Pennsylvania Indl. Dev. Auth. Rev. Bonds 6% 7/1/08 (AMBAC Insured)	3,000,000		3,000,000
Pennsylvania Pub. School Bldg. Auth. Philadelphia School Lease Rev. Participating VRDN Series EGL 06 161, 1.63% (Liquidity Facility Landesbank Hessen-Thuringen) (a)(d)	13,600,000		13,600,000
Pennsylvania Tpk. Commission Tpk. Rev.:
Series 2008 B1, 1.5%, LOC Bank of America NA, VRDN (a)	8,300,000		8,300,000
Series 2008 B2, 1.55%, LOC Bank of America NA, VRDN (a)	8,300,000		8,300,000
Municipal Securities - continued
	Principal Amount		Value
Pennsylvania - continued
Philadelphia Arpt. Rev. Participating VRDN: - continued
Series DB 495, 1.61% (Liquidity Facility Deutsche Bank AG) (a)(b)(d)	$ 2,865,000		$ 2,865,000
Series MS 06 2157, 1.68% (Liquidity Facility Morgan Stanley) (a)(b)(d)	4,000,000		4,000,000
Series Putters 2260Z, 1.81% (Liquidity Facility JPMorgan Chase Bank) (a)(b)(d)	2,800,000		2,800,000
Philadelphia Auth. for Indl. Dev. Rev. (New Courtland Elder Services Proj.) 1.65%, LOC PNC Bank NA, Pittsburgh, VRDN (a)	13,125,000		13,125,000
Philadelphia Gas Works Rev. Bonds (1998 Gen. Ordinance Proj.):
First Series A, 5.5% 7/1/08 (FSA Insured)	1,235,000		1,235,000
First Series B, 5% 7/1/28 (Pre-Refunded to 7/1/08 @ 100) (c)	5,500,000		5,500,000
Philadelphia Gen. Oblig. Participating VRDN:
Series ROC II R 11454, 1.6% (Liquidity Facility Citibank NA) (a)(d)	4,300,000		4,300,000
Series ROC II R 12231, 1.6% (Liquidity Facility Citibank NA) (a)(d)	8,100,000		8,100,000
Philadelphia School District:
Participating VRDN:
Series DBE 554, 1.58% (Liquidity Facility Deutsche Bank AG) (a)(d)	1,080,000		1,080,000
Series Putters 2827, 1.61% (Liquidity Facility JPMorgan Chase & Co.) (a)(d)	10,400,000		10,400,000
Series 2008 A1, 1.55%, LOC Bank of America NA, VRDN (a)	16,000,000		16,000,000
Series 2008 A3, 1.55%, LOC Bank of America NA, VRDN (a)	15,000,000		15,000,000
Series 2008 B2, 1.43%, LOC Wachovia Bank NA Charlotte, VRDN (a)	8,100,000		8,100,000
Series 2008 C1, 1.55%, LOC Commerce Bank NA (OLD), VRDN (a)	8,200,000		8,200,000
Philadelphia Wtr. & Wastewtr. Rev. Participating VRDN Series EGL 7050050 Class A, 1.63% (Liquidity Facility Citibank NA) (a)(d)	2,300,000		2,300,000
Schuylkill County Indl. Dev. Auth. Resource Recovery Rev.:
(Northeastern Pwr. Co. Proj.) Series 1997 B, 2.15%, LOC Dexia Cr. Local de France, VRDN (a)(b)	915,000		915,000
(WPS Westwood Generation, LLC Proj.) 1.8%, VRDN (a)	7,200,000		7,200,000
Southcentral Pennsylvania Gen. Auth. Rev. (Hanover Lutheran Village Proj.) 1.16%, LOC Manufacturers & Traders Trust Co., VRDN (a)	3,515,000		3,515,000
Municipal Securities - continued
	Principal Amount		Value
Pennsylvania - continued
Univ. of Pittsburgh Commonwealth Sys. of Higher Ed. (Univ. Cap. Proj.):
Series 2000 B, 1.6% (Liquidity Facility Lloyds TSB Bank PLC), VRDN (a)	$ 5,000,000		$ 5,000,000
Series 2000 C, 1.6% (Liquidity Facility Lloyds TSB Bank PLC), VRDN (a)	6,200,000		6,200,000
Series 2005 A, 1.6% (Liquidity Facility DEPFA BANK PLC), VRDN (a)	11,400,000		11,400,000
Upper St. Clair Township Gen. Oblig. Series 2008, 1.7% (FSA Insured), VRDN (a)	6,460,000		6,460,000
York County Hosp. Auth. Hosp. Rev. Participating VRDN Series LB 08 P44, 2.71% (Liquidity Facility Bank of New York, New York) (a)(d)	8,400,000		8,400,000
York County Indl. Dev. Auth. Rev. (York Container Co. Proj.) 1.62%, LOC PNC Bank NA, Pittsburgh, VRDN (a)(b)	10,000,000		10,000,000
York County Indl. Poll. Cont. Rev. Bonds (Exelon Generation Co. Proj.) Series 1993 A, 1.65% tender 10/8/08, LOC BNP Paribas SA, CP mode	2,000,000		2,000,000
			784,579,776
Puerto Rico - 1.2%
Puerto Rico Commonwealth Aqueduct & Swr. Auth. Participating VRDN Series MS 2550, 1.6% (Liquidity Facility Morgan Stanley) (a)(d)	2,500,000		2,500,000
Puerto Rico Commonwealth Pub. Impt. Gen. Oblig. TRAN 4.25% 7/30/08, LOC Bank of Nova Scotia, New York Agcy., LOC BNP Paribas SA	7,000,000		7,004,620
			9,504,620
TOTAL INVESTMENT PORTFOLIO - 97.2% (Cost $796,129,396)			796,129,396
NET OTHER ASSETS - 2.8%			22,989,656
NET ASSETS - 100%		$ 819,119,052

Security Type Abbreviations

CP - COMMERCIAL PAPER

RAN - REVENUE ANTICIPATION NOTE

TRAN - TAX AND REVENUE 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.

(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,030,000 or 0.9% of net assets.

Additional information on each holding is as follows:

Security	Acquisition Date	Cost
Pennsylvania Hsg. Fin. Agcy. Single Family Mtg. Rev. Bonds Series Merlots 07 C50, 2.15%, tender 8/20/08 (Liquidity Facility Bank of New York, New York)	6/12/07 - 9/12/07	$ 7,030,000

Other Information

The following is a summary of the inputs used, as of June 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description	Total	Level 1	Level 2	Level 3
Investments in Securities	$ 796,129,396	$ -	$ 796,129,396	$ -

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

Semiannual Report

Fidelity Pennsylvania Municipal Money Market Fund

Financial Statements

Statement of Assets and Liabilities

	June 30, 2008 (Unaudited)
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $796,129,396)		$ 796,129,396
Cash		20,870,358
Receivable for fund shares sold		8,208,618
Interest receivable		3,511,451
Other receivables		207,449
Total assets		828,927,272
Liabilities
Payable for investments purchased	$ 2,808,000
Payable for fund shares redeemed	6,646,783
Distributions payable	10,722
Accrued management fee	342,003
Other affiliated payables	712
Total liabilities		9,808,220
Net Assets		$ 819,119,052
Net Assets consist of:
Paid in capital		$ 819,002,263
Undistributed net investment income		84,979
Accumulated undistributed net realized gain (loss) on investments		31,810
Net Assets, for 818,969,226 shares outstanding		$ 819,119,052
Net Asset Value, offering price and redemption price per share ($819,119,052 ÷ 818,969,226 shares)		$ 1.00

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

Semiannual Report

Fidelity Pennsylvania Municipal Money Market Fund
Financial Statements - continued

Statement of Operations

Six months ended June 30, 2008 (Unaudited)
Investment Income
Interest		$ 9,515,169
Expenses
Management fee	$ 1,972,612
Independent trustees' compensation	1,726
Total expenses before reductions	1,974,338
Expense reductions	(250,025)	1,724,313
Net investment income		7,790,856
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers		56,368
Net increase in net assets resulting from operations		$ 7,847,224

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

Semiannual Report

Statement of Changes in Net Assets

	Six months ended June 30, 2008 (Unaudited)	Year ended December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 7,790,856	$ 20,214,016
Net realized gain (loss)	56,368	51,230
Net increase in net assets resulting from operations	7,847,224	20,265,246
Distributions to shareholders from net investment income	(7,791,308)	(20,213,270)
Distributions to shareholders from net realized gain	(75,788)	-
Total distributions	(7,867,096)	(20,213,270)
Share transactions at net asset value of $1.00 per share Proceeds from sales of shares	1,305,143,143	2,164,843,353
Reinvestment of distributions	7,705,176	19,877,983
Cost of shares redeemed	(1,214,123,868)	(2,003,595,434)
Net increase (decrease) in net assets and shares resulting from share transactions	98,724,451	181,125,902
Total increase (decrease) in net assets	98,704,579	181,177,878
Net Assets
Beginning of period	720,414,473	539,236,595
End of period (including undistributed net investment income of $84,979 and undistributed net investment income of $85,431, respectively)	$ 819,119,052	$ 720,414,473

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

Semiannual Report

Financial Highlights

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Income from Investment Operations
Net investment income	.010	.032	.030	.020	.008	.006
Net realized and unrealized gain (loss) F	-	-	-	-	-	-
Total from investment operations	.010	.032	.030	.020	.008	.006
Distributions from net investment income	(.010)	(.032)	(.030)	(.020)	(.008)	(.006)
Distributions from net realized gain	- F	-	-	-	-	-
Total distributions	(.010)	(.032)	(.030)	(.020)	(.008)	(.006)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return B, C	1.01%	3.25%	3.05%	2.02%	.81%	.65%
Ratios to Average Net Assets D, E
Expenses before reductions	.50% A	.50%	.50%	.50%	.50%	.50%
Expenses net of fee waivers,if any	.50% A	.50%	.50%	.50%	.50%	.50%
Expenses net of all reductions	.44% A	.40%	.38%	.41%	.48%	.49%
Net investment income	1.98% A	3.20%	3.02%	2.02%	.80%	.66%
Supplemental Data
Net assets, end of period (000 omitted)	$ 819,119	$ 720,414	$ 539,237	$ 426,387	$ 331,836	$ 294,312

^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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

^F Amount represents less than $.001 per share.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2008 (Unaudited)

1. Organization.

Fidelity Pennsylvania Municipal Income Fund (the Income Fund) is a fund of Fidelity Municipal Trust. Fidelity Pennsylvania Municipal Money Market Fund (the Money Market Fund) is a fund of Fidelity Municipal Trust II. Each trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Fidelity Municipal Trust and Fidelity Municipal Trust II (the trusts) are organized as a Massachusetts business trust and a Delaware statutory trust, respectively. The Income Fund is a non-diversified fund. Each Fund is authorized to issue an unlimited number of shares. Each Fund may be affected by economic and political developments in the state of Pennsylvania.

2. Significant Accounting Policies.

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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, each Fund uses independent pricing services approved by the Board of to value their investments.

For the Income Fund, debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value. Actual prices received at disposition may differ.

As permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities owned by the Money Market Fund are valued at amortized cost which approximates market value.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot

Semiannual Report

2. Significant Accounting Policies - continued

Security Valuation - continued

be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Funds are subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Funds' fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1	Quoted prices in active markets for identical securities.
Level 2	Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3	Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

The aggregate value by input level as of June 30, 2008, for each Fund's investments is included at the end of each Fund's Schedule of Investments.

Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 pm Eastern time and includes trades executed through the end of the prior business day for the Income Fund and trades executed through the end of the current business day for the Money Market Fund. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Funds' federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, Certain Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, futures transactions, market discount and deferred trustees compensation.

The Funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.

Semiannual Report

2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows for each Fund:

	Cost for Federal Income Tax Purposes	Unrealized Appreciation	Unrealized Depreciation	Net Unrealized Appreciation/ (Depreciation)
Fidelity Pennsylvania Municipal Income Fund	$ 326,174,570	$ 4,838,056	$ (3,651,230)	$ 1,186,826
Fidelity Pennsylvania Municipal Money Market Fund	796,129,396	-	-	-

Short-Term Trading (Redemption) Fees. Shares held in the Income Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the Fund and accounted for as an addition to paid in capital.

3. Operating Policies.

Restricted Securities. Certain Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable Fund's Schedule of Investments.

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $54,731,247 and $33,580,436, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Income Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of.25% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .37% of the Fund's average net assets.

FMR and its affiliates provide the Money Market Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .50% of the Fund's average net assets. FMR pays all other expenses, except the compensation of the independent Trustees and certain exceptions such as interest expense. The management fee paid to FMR by the Fund is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.

Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, under which FIIOC performs the activities associated with the Funds' transfer, dividend disbursing and shareholder servicing agent functions. Under the terms of the management fee contract, FMR pays transfer agent fees on behalf of the Money Market Fund. The Income Fund pays account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the Income Fund's transfer agent fees were equivalent to the following annualized rates expressed as a percentage of average net assets:

Fidelity Pennsylvania Municipal Income Fund .08%

Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

6. Committed Line of Credit.

The Income Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro rata portion of the line of credit, which is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:

Fidelity Pennsylvania Municipal Income Fund $ 310

During the period, there were no borrowings on this line of credit.

Semiannual Report

7. Expense Reductions.

Through arrangements with the Income Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce fund expenses. These expense reductions are noted in the table below.

	Custody expense reduction	Transfer Agent expense reduction	Accounting expense reduction
Fidelity Pennsylvania Municipal Income Fund	$ 2,477	$ 85,149	$ 2,119

In addition, through an arrangement with the Money Market Fund's custodian and transfer agent, $250,025 of credits realized as a result of uninvested cash balances were used to reduce the Fund's management fee.

8. Other.

The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Pennsylvania Municipal Income Fund / Fidelity Pennsylvania Municipal Money Market Fund

Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its June 2008 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved agreements with foreign sub-advisers Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Japan) Inc., and Fidelity Management & Research (Hong Kong) Limited.

In considering whether to renew the Advisory Contracts for each fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contracts is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that each fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' investment personnel and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for each fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of a fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fees on Fidelity's Institutional Money Market Funds and launching Class IV and Institutional Class of certain of these funds; (iii) reducing the transfer agent fees for the Fidelity Select Portfolios and Investor Class of the VIP funds; and (iv) launching Class K of 29 equity funds as a lower-fee class available to certain employer-sponsored retirement plans.

Investment Performance. The Board considered whether each fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance, as well as each fund's relative investment performance measured against (i) a broad-based securities market index (bond fund only, as money market funds are typically not compared against a market index), and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. For each fund, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2007, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark") (bond fund only), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Pennsylvania Municipal Income Fund

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the first quartile for the one-year period and the second quartile for the three- and five-year periods. The Board also stated that the investment performance of the fund was lower than its benchmark for the three- and five-year periods, although the fund's one year cumulative total return compared favorably to its benchmark.

Semiannual Report

Fidelity Pennsylvania Municipal Money Market Fund

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the second quartile for all the periods shown.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to each fund will benefit each fund's shareholders, particularly in light of the Board's view that each fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered each fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 23% would mean that 77% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board. For a more meaningful comparison of management fees, Fidelity Pennsylvania Municipal Money Market Fund is compared on the basis of a hypothetical "net management fee," which is derived by subtracting payments made by FMR for non-management expenses (including transfer agent fees, pricing and bookkeeping fees, and custody fees) from the fund's all-inclusive fee. In this regard, the Board realizes that net management fees can vary from year to year because of differences in non-management expenses.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Pennsylvania Municipal Income Fund

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2007.

Semiannual Report

Fidelity Pennsylvania Municipal Money Market Fund

The Board noted that the fund's hypothetical net management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2007.

Based on its review, the Board concluded that each fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of Fidelity Pennsylvania Municipal Income Fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses.

In its review of Fidelity Pennsylvania Municipal Money Market Fund's total expenses, the Board considered the fund's hypothetical net management fee as well as the fund's all-inclusive fee. The Board also considered other expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees, paid by FMR under the all-inclusive arrangement. The Board also noted the effects of any waivers and reimbursements on fees and expenses.

As part of its review, the Board also considered current and historical total expenses of each fund compared to competitive fund median expenses. Each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that each fund's total expenses ranked below its competitive median for 2007.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that each fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and determined that the amount of profit is a fair entrepreneurial profit for the management of each fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

Semiannual Report

The Board recognized that Fidelity Pennsylvania Municipal Income Fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends and actions to be taken by FMR to improve certain funds' overall performance; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability and the extent to which portfolio manager compensation is linked to fund performance; (v) Fidelity's fee structures; (vi) the funds' sub-advisory arrangements; and (vii) accounts managed by Fidelity other than the Fidelity funds.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.

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

For mutual fund and brokerage trading.

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

(computer_graphic)
Fidelity's Web Site
www.fidelity.com

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

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Sub-Adviser

Fidelity Research & Analysis Company

Fidelity Management & Research
(U.K.) Inc.

Fidelity Investments Money
Management, Inc.

Fidelity International Investment
Advisors

Fidelity International Investment
Advisors (U.K.) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Citibank, N.A.

New York, NY

Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

Citibank, N.A.

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST^®) 1-800-544-5555

Automated line for quickest service

PFR-USAN-0808
1.787788.105

Fidelity®
Short-Intermediate
Municipal Income Fund

Semiannual Report

June 30, 2008(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
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.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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

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

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

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Domestic and international securities markets have struggled thus far in 2008. High-grade fixed-income investments produced modestly positive results, but many stock benchmarks suffered double-digit losses through the first half of this year. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2008 to June 30, 2008).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

	Beginning Account Value January 1, 2008	Ending Account Value June 30, 2008	Expenses Paid During Period* January 1, 2008 to June 30, 2008
Class A
Actual	$ 1,000.00	$ 1,012.50	$ 3.75
HypotheticalA	$ 1,000.00	$ 1,021.13	$ 3.77
Class T
Actual	$ 1,000.00	$ 1,012.50	$ 3.75
HypotheticalA	$ 1,000.00	$ 1,021.13	$ 3.77
Class B
Actual	$ 1,000.00	$ 1,009.10	$ 7.14
HypotheticalA	$ 1,000.00	$ 1,017.75	$ 7.17
Class C
Actual	$ 1,000.00	$ 1,008.60	$ 7.54
HypotheticalA	$ 1,000.00	$ 1,017.35	$ 7.57
Short-Intermediate Municipal Income
Actual	$ 1,000.00	$ 1,013.80	$ 2.45
HypotheticalA	$ 1,000.00	$ 1,022.43	$ 2.46
Institutional Class
Actual	$ 1,000.00	$ 1,013.70	$ 2.55
HypotheticalA	$ 1,000.00	$ 1,022.33	$ 2.56

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

	Annualized Expense Ratio
Class A	.75%
Class T	.75%
Class B	1.43%
Class C	1.51%
Short-Intermediate Municipal Income	.49%
Institutional Class	.51%

Semiannual Report

Investment Changes (Unaudited)

Top Five States as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
New York	17.0	17.7
Texas	11.0	11.1
California	10.2	9.8
Illinois	7.9	7.7
New Jersey	5.5	5.4
Top Five Sectors as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
General Obligations	42.0	43.3
Escrowed/Pre-Refunded	14.4	14.8
Special Tax	10.5	11.1
Electric Utilities	8.8	8.8
Health Care	7.8	5.1
Weighted Average Maturity as of June 30, 2008
		6 months ago
Years	3.6	3.6

The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity, taking into account any maturity shortening feature such as a call, refunding or redemption provision.

Duration as of June 30, 2008
		6 months ago
Years	2.8	2.9

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

Quality Diversification (% of fund's net assets)
As of June 30, 2008		As of December 31, 2007
	AAA 24.3%		AAA 51.2%
	AA,A 68.8%		AA,A 41.7%
	BBB 4.4%		BBB 4.5%
	BB and Below 0.2%		BB and Below 0.5%
	Not Rated 1.9%		Not Rated 1.1%
	Short-Term Investments and Net Other Assets 0.4%		Short-Term Investments and Net Other Assets 1.0%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings.

Semiannual Report

Investments June 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 99.6%
	Principal Amount (000s)		Value (000s)
Alabama - 1.9%
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09	$ 1,100		$ 1,109
Birmingham Wtrwks. & Swr. Board Wtr. & Swr. Rev. Series B, 5% 1/1/37 (Pre-Refunded to 1/1/13 @ 100) (g)	10,000		10,670
Health Care Auth. for Baptist Health Series 2006 D:
5% 11/15/08	1,475		1,489
5% 11/15/11	1,000		1,029
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev. 5.75% 10/1/09 (MBIA Insured) (f)	4,000		4,125
Jefferson County Swr. Rev.:
Series A, 5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (g)	3,900		4,076
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (g)	2,070		2,128
Mobile Indl. Dev. Board Poll. Cont. Rev. (Alabama Pwr. Co. Barry Plant Proj.) Series 2007 A, 4.75%, tender 3/19/12 (c)	5,000		5,073
Pell City Spl. Care Facilities Rev. (Noland Health Services, Inc. Proj.) Series A:
5% 12/1/08	400		404
5% 12/1/09	500		499
5% 12/1/10	855		848
5% 12/1/12	750		737
Univ. of Alabama - Birmingham Series A, 5% 9/1/13 (b)	1,175		1,204
			33,391
Alaska - 0.3%
Alaska Student Ln. Corp. Student Ln. Rev. Series A, 5.85% 7/1/13 (Pre-Refunded to 7/1/10 @ 100) (f)(g)	3,285		3,466
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 (Pre-Refunded to 12/1/10 @ 100) (g)	2,500		2,665
			6,131
Arizona - 1.1%
Arizona Ctfs. of Prtn. Series B, 5.5% 9/1/10 (FSA Insured)	9,025		9,495
Arizona Health Facilities Auth. Rev. (Banner Health Sys. Proj.) Series 2008 A, 5% 1/1/13	2,000		2,097
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured)	1,115		1,152
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Arizona - continued
Nogales Rev. Oblig. (Wastewtr. Systems Proj.) Series 2006A, 3.75%, tender 10/1/09, LOC JPMorgan Chase Bank (c)	$ 3,000		$ 3,022
Pinal County Indl. Dev. Auth. Correctional Facilities Contract Rev. (Florence West Prison Expansion, LLC Proj.) Series A, 4.5% 10/1/08 (ACA Finl. Guaranty Corp. Insured)	660		662
Tucson Wtr. Rev. Series A:
5% 7/1/11 (FGIC Insured)	1,500		1,551
5% 7/1/15 (FGIC Insured)	1,645		1,739
			19,718
California - 10.2%
California Dept. of Wtr. Resources Pwr. Supply Rev.:
Series 2002 A, 5.5% 5/1/16 (Pre-Refunded to 5/1/12 @ 101) (g)	11,470		12,514
Series A, 5.25% 5/1/12 (MBIA Insured)	6,000		6,393
California Econ. Recovery Series 2004 A:
5.25% 1/1/11	6,500		6,839
5.25% 7/1/13	2,400		2,594
5.25% 7/1/13 (MBIA Insured)	2,900		3,133
California Gen. Oblig.:
5% 2/1/10	2,000		2,070
5% 2/1/11	4,000		4,179
5% 2/1/11	2,525		2,638
5% 10/1/11	1,650		1,740
5% 2/1/12	1,650		1,735
5% 3/1/12	15,000		15,787
5% 9/1/12	1,700		1,800
5% 10/1/12	12,600		13,349
5% 11/1/13	10,000		10,663
5.25% 9/1/10	18,550		19,520
5.25% 2/1/11	6,375		6,699
5.5% 3/1/11 (FGIC Insured)	3,210		3,398
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured)	3,525		3,731
6.5% 9/1/10	1,760		1,896
California Health Facilities Fing. Auth. Rev.:
(Catholic Healthcare West Proj.) Series 2008 H, 5.125% 7/1/22	2,850		2,855
(Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/10	1,000		1,031
California Infrastructure & Econ. Dev. Bank Rev. Series C, 3.9%, tender 12/1/11 (c)	2,100		2,146
California State Univ. Rev. 5% 11/1/13 (FSA Insured)	1,335		1,437
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
California - continued
California Statewide Communities Dev. Auth. Rev. (Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c)	$ 1,400		$ 1,409
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.:
Series A1, 5% 6/1/12	2,570		2,567
Series B:
5.5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (g)	2,000		2,153
5.625% 6/1/38 (Pre-Refunded to 6/1/13 @ 100) (g)	3,030		3,278
Los Angeles Unified School District Series E:
5% 7/1/11	6,075		6,392
5.5% 7/1/14 (MBIA Insured)	4,400		4,702
Northern California Gas Auth. #1 Gas Proj. Rev. Series 2007 A, 5% 7/1/11	2,200		2,218
Poway Unified School District Pub. Fing. Auth. Lease Rev.:
Cap. Appreciation 0%, tender 6/1/10 (FSA Insured) (c)	4,700		4,392
Series 2008 B, 0%, tender 12/1/14 (FSA Insured) (c)	7,235		5,518
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured)	3,600		3,113
Sulphur Springs Union School District Ctfs. of Prtn. 0%, tender 3/1/11 (AMBAC Insured) (c)	2,685		2,445
Univ. of California Revs.:
(UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (Escrowed to Maturity) (g)(h)	8,433		8,690
Series K, 5% 5/15/10	4,955		5,174
Western Placer Unified School District Ctfs. of Prtn. (School Facilities Proj.) Series B, 3.625%, tender 12/1/09 (FSA Insured) (c)	3,170		3,205
			183,403
Colorado - 0.3%
Colorado Health Facilities Auth. Rev.:
(Adventist Health Sys. - Sunbelt Proj.):
Series E, 5% 11/15/11	2,230		2,318
Series F, 5% 11/15/12	1,225		1,279
(Volunteers of America Care Proj.) Series A, 5% 7/1/10	615		614
Denver City & County Arpt. Rev. Series A, 5.625% 11/15/12 (FGIC Insured) (f)	2,000		2,049
			6,260
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Connecticut - 1.9%
Connecticut Gen. Oblig.:
Series 2001 D, 5.125% 11/15/18 (Pre-Refunded to 11/15/11 @ 100) (g)	$ 5,000		$ 5,282
Series F, 5% 12/1/11	23,100		24,464
Connecticut Spl. Tax Oblig. Trans. Infrastructure Rev. Series 1998 A, 5.5% 10/1/13 (FGIC Insured)	4,300		4,681
			34,427
District Of Columbia - 0.3%
District of Columbia Gen. Oblig. Series B, 0% 6/1/12 (MBIA Insured)	3,600		3,076
District of Columbia Rev. (Medlantic/Helix Proj.) Series 1998 C:
4% 8/15/09 (FSA Insured)	1,100		1,121
5% 8/15/15 (FSA Insured)	1,500		1,600
			5,797
Florida - 4.7%
Brevard County School Board Ctfs. of Prtn. Series A, 5.5% 7/1/09 (AMBAC Insured)	2,775		2,869
Broward County School Board Ctfs. of Prtn. Series 2008 A, 5% 7/1/15 (FSA Insured)	5,495		5,824
Citizens Property Ins. Corp. Series 2007 A, 5% 3/1/11 (MBIA Insured)	4,025		4,149
Florida Gen. Oblig. (Dept. of Trans. Right-of-Way and Bridge Construction Proj.) Series 2005 B, 6.375% 7/1/13	8,020		9,033
Highlands County Health Facilities Auth. Rev.: (Adventist Health Sys./Sunbelt, Inc. Prog.):
Series 2002, 3.95%, tender 9/1/12 (c)	7,550		7,498
Series 2006 G:
5% 11/15/08	420		422
5% 11/15/09	435		442
5% 11/15/10	400		413
5% 11/15/11	700		728
Series A, 5% 11/15/10	1,000		1,034
Series B, 5% 11/15/08	800		804
Series I, 5%, tender 11/16/09 (c)	4,700		4,769
ARS (Adventist Health Sys./Sunbelt, Inc. Prog.) Series 1999, 3.211%, tender 7/2/08 (FGIC Insured) (c)	2,200		2,081
Hillsborough County Indl. Dev. (H Lee Moffitt Cancer Ctr. Proj.) Series A, 5% 7/1/12	1,310		1,360
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Florida - continued
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.):
Series 2007 B, 5.15%, tender 9/1/13 (c)	$ 1,750		$ 1,739
5%, tender 3/15/12 (AMBAC Insured) (c)	1,500		1,483
Lakeland Hosp. Sys. Rev. (Reg'l. Health Systems Proj.) 5% 11/15/11	2,545		2,641
Lee County Solid Waste Sys. Rev. 5.25% 10/1/09 (MBIA Insured) (f)	1,000		1,020
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured)	1,980		2,134
Miami-Dade County Health Facilities Auth. Hosp. Rev. (Miami Children's Hosp. Proj.) Series A, 4.125%, tender 8/1/11 (c)	2,000		1,973
Miami-Dade County School Board Ctfs. of Prtn. Series B, 5%, tender 5/1/11 (MBIA Insured) (c)	1,500		1,541
Orange County Health Facilities Auth. Rev. (Orlando Reg'l. Health Care Sys. Proj.) Series 2008 A, 5% 11/1/15 (FSA Insured)	1,825		1,935
Palm Beach County School Board Ctfs. of Prtn. Series A, 6% 8/1/22 (Pre-Refunded to 8/1/10 @ 101) (g)	7,020		7,525
Polk County Cap. Impt. Rev.:
Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c)	9,000		9,517
5.5% 12/1/11 (FGIC Insured)	3,470		3,703
Polk County School District Sales Tax Rev. 5% 10/1/12 (FSA Insured)	6,080		6,451
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001, 3%, tender 10/1/09, LOC SunTrust Banks, Inc. (c)	1,000		1,002
			84,090
Georgia - 3.4%
Carroll County School District 5% 4/1/11	8,000		8,382
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1992 B, 8.25% 1/1/11 (MBIA Insured)	4,105		4,595
Henry County School District Series A, 5% 4/1/10	26,475		27,523
Main Street Natural Gas, Inc. Georgia Gas Proj. Rev. Series A, 5% 9/15/12	4,000		3,924
Monroe County Dev. Auth. Poll. Cont. Rev.:
(Georgia Pwr. Co. Plant Scherer Proj.) First Series, 4.5%, tender 4/1/11 (c)	5,200		5,267
(Georgia Pwr. Co. Proj.) Series 2007 A, 4.75%, tender 4/1/11 (MBIA Insured) (c)	5,705		5,659
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Georgia - continued
Walton County:
5% 1/1/10 (FGIC Insured)	$ 2,000		$ 2,050
5% 1/1/11 (FGIC Insured)	3,000		3,123
			60,523
Hawaii - 0.4%
Hawaii Arpts. Sys. Rev. Series 2000 B, 8% 7/1/10 (FGIC Insured) (f)	3,850		4,082
Hawaii Gen. Oblig. Series CU:
5.75% 10/1/11 (MBIA Insured)	3,040		3,223
5.75% 10/1/11 (Pre-Refunded to 10/1/10 @ 100) (g)	170		181
			7,486
Illinois - 7.9%
Chicago Board of Ed. Series 1997, 6.75% 12/1/10 (AMBAC Insured)	4,160		4,538
Chicago Gen. Oblig. Series A, 5.25% 1/1/12 (FSA Insured)	1,000		1,063
Chicago Midway Arpt. Rev. Series B:
5% 1/1/10 (AMBAC Insured)	1,225		1,252
5% 1/1/11 (AMBAC Insured)	3,625		3,756
Chicago O'Hare Int'l. Arpt. Rev.:
Series A:
5% 1/1/12 (FSA Insured)	3,500		3,663
5% 1/1/12 (MBIA Insured)	1,165		1,217
5% 1/1/13 (FSA Insured)	4,000		4,202
Series 1999, 5.5% 1/1/10 (AMBAC Insured) (f)	2,900		2,986
Chicago Park District:
Series B, 5% 1/1/11 (AMBAC Insured)	5,750		5,996
Series C, 5% 1/1/11 (AMBAC Insured)	2,515		2,623
Chicago Transit Auth. Cap. Grant Receipts Rev. (Fed. Transit Administration Section 5307 Formula Funds Proj.) Series A, 5.25% 6/1/10 (AMBAC Insured)	4,835		5,042
Granite City Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.875%, tender 5/3/10 (c)(f)	5,500		5,465
Hodgkins Tax Increment Rev. 5% 1/1/09	1,805		1,810
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) Series 2004 C, 5.5% 10/1/10	1,900		1,990
Illinois Edl. Facilities Auth. Revs.:
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c)	12,800		12,812
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Illinois - continued
Illinois Edl. Facilities Auth. Revs.: - continued
(Field Museum of Natural History Proj.) 4.05%, tender 11/1/11 (c)	$ 3,250		$ 3,283
(Univ. of Chicago Proj.):
Series A, 5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (g)	2,640		2,822
4.05%, tender 7/1/09 (c)	7,000		7,118
Illinois Fin. Auth. Rev.:
(DePaul Univ. Proj.) Series A:
5% 10/1/08	1,000		1,007
5% 10/1/11	1,450		1,506
(Rush Univ. Med. Ctr. Proj.) Series B:
5% 11/1/15 (MBIA Insured)	3,075		3,199
5% 11/1/16 (MBIA Insured)	1,700		1,763
Illinois Gen. Oblig.:
First Series 2001, 5.25% 5/1/11 (FSA Insured)	1,515		1,603
First Series:
5.375% 7/1/11 (MBIA Insured)	6,745		7,165
5.5% 8/1/10	1,495		1,575
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (g)	7,075		7,417
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (g)	1,000		1,053
Illinois Health Facilities Auth. Rev.:
(Delnor Hosp. Proj.) Series A:
5% 5/15/15 (FSA Insured)	2,250		2,356
5% 5/15/16 (FSA Insured)	2,325		2,433
(Edward Hosp. Obligated Group Proj.) Series B, 5.125% 2/15/25 (Pre-Refunded to 2/15/11 @ 101) (g)	8,500		9,010
Kane & DeKalb Counties Cmnty. Unit School District #301 0% 12/1/10 (AMBAC Insured)	2,000		1,843
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 (FSA Insured)	2,270		2,432
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) (g)	1,600		1,728
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11	2,365		2,470
Madison County Cmnty. United School District #007 Series A, 5% 12/1/11 (FSA Insured)	2,965		3,127
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Illinois - continued
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev.:
(McCormick Place Expansion Proj.) Series A, 0% 12/15/13 (MBIA Insured)	$ 2,725		$ 2,175
Series 2002, 0% 6/15/10 (Escrowed to Maturity) (g)	5,000		4,697
Quincy Hosp. Rev. (Blessing Hosp. Proj.) 5% 11/15/10	1,285		1,326
Rosemont Gen. Oblig. Series A, 0% 12/1/11 (FGIC Insured)	3,695		3,252
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Proj.) 5% 8/15/11 (AMBAC Insured)	1,360		1,428
Univ. of Illinois Univ. Revs. (Auxiliary Facilities Sys. Proj.) Series A, 5% 4/1/11 (MBIA Insured)	5,050		5,292
			141,495
Indiana - 3.0%
Carmel High School Bldg. Corp. 5% 1/10/11 (FSA Insured)	1,000		1,046
Ctr. Grove 2000 Bldg. Corp.:
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g)	1,785		1,909
5.5% 7/15/18 (Pre-Refunded to 7/15/11 @ 100) (g)	1,885		2,016
Hamilton Southeastern Consolidated School Bldg. Corp.:
Series A:
5% 1/10/10 (FSA Insured)	1,750		1,809
5.25% 7/10/11 (FSA Insured)	2,295		2,430
5.25% 1/10/12 (FSA Insured)	1,355		1,439
5% 1/15/10 (FSA Insured)	1,835		1,897
5% 1/15/11 (FSA Insured)	1,910		1,995
5% 1/15/12 (FSA Insured)	1,990		2,098
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g)	1,855		1,983
Indiana Fin. Auth. Rev. (Ascension Health Proj.) Series 2008 E7, 3.5%, tender 12/15/09 (c)	5,000		5,005
Indiana Health Facility Fing. Auth. Rev. (Ascension Health Cr. Group Proj.) Series 2005 A3, 5%, tender 7/1/11 (c)	4,100		4,236
Indiana Univ. Student Fee Revs. Series H, 0% 8/1/09 (AMBAC Insured)	3,875		3,771
Indianapolis Local Pub. Impt. Bond Bank (Wtrwks. Proj.) Series A, 5.5% 7/1/16 (Pre-Refunded to 7/1/12 @ 100) (g)	5,000		5,409
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured)	1,405		1,446
Logansport High School Bldg. Corp.:
5.25% 1/15/11 (MBIA Insured)	1,000		1,048
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Indiana - continued
Logansport High School Bldg. Corp.: - continued
5.25% 7/15/11 (MBIA Insured)	$ 1,020		$ 1,077
5.25% 1/15/12 (MBIA Insured)	1,045		1,105
5.25% 7/15/12 (MBIA Insured)	1,075		1,143
Mount Vernon of Hancock County Multi-School Corp. Series B:
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g)	1,605		1,716
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g)	1,695		1,812
Muncie School Bldg. Corp. 5.25% 7/10/12 (MBIA Insured)	1,585		1,691
New Albany Floyd County Independent School Bldg. Corp. 5% 1/15/11 (FSA Insured)	1,000		1,046
Rockport Poll. Cont. Rev. (AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (c)	1,600		1,639
West Clark 2000 School Bldg. Corp.:
5.25% 1/15/11 (MBIA Insured)	1,065		1,118
5.25% 7/15/11 (MBIA Insured)	1,125		1,190
5.25% 1/15/12 (MBIA Insured)	1,150		1,218
			54,292
Kansas - 0.2%
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L:
5.25% 11/15/10	545		567
5.25% 11/15/12	680		711
Olathe Health Facilities Rev. (Olathe Med. Ctr. Proj.) Series 2008 A, 4.125%, tender 3/1/13 (c)	1,600		1,598
			2,876
Kentucky - 0.1%
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (f)	1,185		1,204
Louisiana - 0.4%
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. Series B, 5% 2/1/12 (AMBAC Insured)	1,000		1,052
Ernest N. Morial-New Orleans Exhibit Hall Auth. Spl. Tax Series A, 5.25% 7/15/11 (Escrowed to Maturity) (g)	2,060		2,185
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Louisiana - continued
Louisiana Military Dept. Custody Receipts 5% 8/1/10	$ 1,530		$ 1,584
Louisiana Offshore Term. Auth. Deepwater Port Rev. (LOOP LLC Proj.) Series 2003 D, 4%, tender 9/1/08 (c)	2,700		2,707
			7,528
Maryland - 2.2%
Baltimore Proj. Rev. (Wtr. Projs.) Series 2007 D:
5% 7/1/10 (AMBAC Insured)	690		719
5% 7/1/11 (AMBAC Insured)	1,985		2,088
Howard County Retirement Cmnty. Rev. (Vantage House Proj.) Series A, 4.5% 4/1/09	405		403
Maryland Gen. Oblig. (State & Local Facilities Ln. Prog.):
First Series 2005 B, 5.25% 2/15/12	20,000		21,396
First Series 2008, 5% 3/1/12	10,000		10,617
Maryland Health & Higher Edl. Facilities Auth. Rev. (Johns Hopkins Health Sys. Obligated Group Proj.) Series 2008 B, 5%, tender 5/15/15 (c)	2,225		2,311
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured)	1,535		1,601
			39,135
Massachusetts - 4.0%
Massachusetts Dept. of Agricultural Resources Higher Ed. Rev. Series A, 5% 1/1/11	1,000		1,022
Massachusetts Fed. Hwy.:
Series 2000 A, 5.75% 6/15/13	3,000		3,201
Series B, 5.125% 12/15/14 (Pre-Refunded to 12/15/08 @ 101) (g)	2,775		2,831
Massachusetts Gen. Oblig.:
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (g)	2,570		2,685
Series 2000 A, 6% 2/1/10	2,500		2,629
Series 2001 A, 5.5% 1/1/11	5,000		5,286
Series 2002 C, 5.5% 11/1/10 (FSA Insured)	10,000		10,606
Series 2003 C, 5.5% 10/1/10 (MBIA Insured)	1,130		1,195
Series C, 5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (g)	2,495		2,658
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series A, 5.5% 1/1/12 (AMBAC Insured) (f)	1,000		984
Massachusetts Spl. Oblig. Rev. (Fed. Hwy. Grant Anticipation Note Prog.) Series A, 5% 12/15/12 (FSA Insured)	3,300		3,508
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Massachusetts - continued
Massachusetts Wtr. Resources Auth. Wtr. & Swr. Rev.:
Series 2000 A:
5.75% 8/1/30 (FGIC Insured) (Pre-Refunded to 8/1/10 @ 101) (g)	$ 19,000		$ 20,271
5.75% 8/1/39 (Pre-Refunded to 8/1/10 @ 101) (g)	5,000		5,334
Series B, 5.2% 8/1/22 (Pre-Refunded to 8/1/11 @ 101) (g)	8,350		8,901
			71,111
Michigan - 2.7%
Allegan Pub. School District 5% 5/1/12 (MBIA Insured)	1,590		1,675
Chelsea School District 5% 5/1/13 (MBIA Insured)	1,750		1,854
Clarkston Cmnty. Schools 5% 5/1/12 (FSA Insured)	3,000		3,182
Detroit City School District Series A, 5.5% 5/1/11 (FSA Insured)	1,200		1,278
Detroit Swr. Disp. Rev.:
Series A, 5.75% 7/1/26 (Pre-Refunded to 1/1/10 @ 101) (g)	2,000		2,107
2.407% 7/1/32 (FSA Insured) (c)	4,105		3,562
DeWitt Pub. Schools 5% 5/1/10 (MBIA Insured)	1,280		1,320
Grand Haven Area Pub. Schools 5% 5/1/12 (FSA Insured)	2,965		3,123
Grand Rapids Cmnty. College:
5% 5/1/12 (FSA Insured)	1,305		1,384
5% 5/1/13 (FSA Insured)	1,305		1,394
Kent Hosp. Fin. Auth. Hosp. Facilities Rev. (Spectrum Health Proj.) Series A, 5.25%, tender 1/15/14 (c)	2,000		2,099
Lincoln Consolidated School District 5% 5/1/12 (FSA Insured)	1,485		1,570
Michigan Bldg. Auth. Rev. (Facilities Prog.) Series I:
5.5% 10/15/09	2,705		2,806
5.5% 10/15/13	2,200		2,311
Michigan Gen. Oblig. (Envir. Protection Prog.) 6.25% 11/1/12	2,735		2,901
Michigan Hosp. Fin. Auth. Rev. (Oakwood Hosp. Proj.) Series A, 5% 7/15/11	2,700		2,774
Plymouth-Canton Cmnty. School District 5% 5/1/12 (FSA Insured)	4,000		4,242
Pontiac Tax Increment Fin. Auth. Series 2002, 6.25% 6/1/22 (Pre-Refunded to 6/1/12 @ 101) (g)	2,260		2,505
Royal Oak City School District 5% 5/1/12	2,000		2,115
Troy School District 5% 5/1/11 (MBIA Insured)	1,000		1,049
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Michigan - continued
Wayne County Cmnty. College (College Facilities Impt. Proj.) 5.25% 7/1/09 (FGIC Insured)	$ 1,220		$ 1,254
Wayne-Westland Cmnty. Schools 5% 5/1/10 (FSA Insured)	1,225		1,274
			47,779
Minnesota - 0.3%
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (HealthPartners Obligated Group Proj.):
5.25% 12/1/08	1,200		1,206
5.25% 12/1/10	500		511
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev. Series A, 5% 1/1/13 (f)	1,000		1,012
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Healthpartners Oblig. Group Proj.):
5% 5/15/09	250		252
5% 5/15/10	200		203
5% 5/15/11	300		305
Saint Paul Port Auth. Lease Rev. (HealthEast Midway Campus Proj.) Series 2003 A, 5% 5/1/10	330		334
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured)	940		984
			4,807
Mississippi - 0.4%
Mississippi Bus. Fin. Corp. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.4%, tender 3/1/11 (c)(f)	1,100		1,083
Mississippi Dev. Bank Spl. Oblig. (Marshall County Correctional Facility Proj.) Series C, 5% 8/1/11	1,050		1,081
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (f)	1,190		1,195
Mississippi Hosp. Equip. & Facilities Auth.:
(Mississippi Baptist Med. Ctr. Proj.) Series 2007 A:
5% 8/15/09	1,000		1,025
5% 8/15/11	1,000		1,031
(South Central Reg'l. Med. Ctr. Proj.) 5% 12/1/10	1,240		1,258
			6,673
Missouri - 0.8%
Bi-State Dev. Agcy. Missouri Illinois Metropolitan District Rev. 3.95%, tender 10/1/09, LOC JPMorgan Chase Bank (c)	6,600		6,647
Fenton Tax Increment Rev. (Gravois Bluffs Redev. Proj.) 5% 4/1/11	1,430		1,477
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Missouri - continued
Kansas City School District Bldg. Corp. Rev. (School District Elementary School Proj.) Series B, 5% 2/1/11 (FGIC Insured)	$ 1,850		$ 1,893
Lees Summit Indl. Dev. Auth. Sr. Living Facilities Rev. (John Knox Village Proj.) Series A, 5% 8/15/11	1,485		1,476
Saint Louis Arpt. Rev. Series 2003 A, 5.25% 7/1/11 (FSA Insured)	1,000		1,052
Saint Louis County Indl. Dev. Auth. Sr. Living Facilities Rev. (Friendship Village West County Proj.) Series A, 5% 9/1/11	1,000		1,001
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) (g)	1,050		1,133
			14,679
Montana - 0.3%
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (c)	5,675		5,715
Nebraska - 0.6%
Central Plains Energy Proj. Rev. (Nebraska Gas Proj.) Series A, 5% 12/1/11	6,500		6,518
Nebraska Pub. Pwr. District Rev. Series B, 5% 1/1/12 (FSA Insured)	3,500		3,698
			10,216
Nevada - 2.3%
Clark County Arpt. Rev.:
Series 2003 C:
5% 7/1/09 (AMBAC Insured) (f)	2,700		2,757
5% 7/1/10 (AMBAC Insured) (f)	1,225		1,243
5% 7/1/11 (AMBAC Insured) (f)	1,790		1,811
Series 2008 E:
5% 7/1/14	2,905		3,058
5% 7/1/15	3,500		3,681
Clark County Hwy. Impt. Rev. (Motor Vehicle Fuel Tax) 5% 7/1/11 (AMBAC Insured)	3,230		3,389
Clark County School District:
(Bldg. Proj.) Series 2008 A, 5% 6/15/12	10,000		10,571
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (g)	1,600		1,688
Series C, 5% 6/15/10 (MBIA Insured)	1,075		1,118
Series F, 5.375% 6/15/11 (FSA Insured)	4,090		4,350
Henderson Health Care Facilities Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08	1,100		1,100
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Nevada - continued
Lyon Co. School District Gen. Oblig. 5% 6/1/09	$ 695		$ 715
Nevada Gen. Oblig. Series A, 5% 4/1/11 (FSA Insured)	4,015		4,221
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured)	2,410		2,502
			42,204
New Hampshire - 0.2%
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev.:
(United Illumination Co.) Series A, 3.65%, tender 2/1/10 (AMBAC Insured) (c)(f)	2,500		2,509
3.5%, tender 2/1/09 (c)(f)	2,000		2,009
			4,518
New Jersey - 5.5%
Camden County Impt. Auth. Health Care Redev. Rev. (Cooper Health Sys. Obligated Group Proj.) Series B, 5.25% 2/15/09	1,250		1,260
Garden State Preservation Trust Open Space & Farmland Preservation Series B, 6.375% 11/1/11 (MBIA Insured)	7,470		8,215
New Jersey Econ. Dev. Auth. School Facilities Construction Rev.:
Series 2008 J4, 5%, tender 9/1/14 (FSA Insured) (c)	7,000		7,351
Series 2008 W, 5% 3/1/15	10,000		10,597
New Jersey Gen. Oblig. Series H, 5.25% 7/1/12 (FGIC Insured)	5,000		5,351
New Jersey Tpk. Auth. Tpk. Rev. Series A, 6% 1/1/11 (MBIA Insured)	21,785		23,118
New Jersey Trans. Trust Fund Auth.:
Series B:
5.25% 12/15/10 (FGIC Insured)	4,550		4,777
6.5% 6/15/11 (MBIA Insured)	5,000		5,429
Series C, 5.5% 12/15/10 (FSA Insured)	25,000		26,484
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (g)	7,000		7,280
			99,862
New Jersey/Pennsylvania - 0.3%
Delaware River Joint Toll Bridge Commission Pennsylvania-New Jersey Bridge Rev. 5% 7/1/09	5,170		5,317
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New Mexico - 0.2%
Albuquerque Joint Wtr. & Swr. Sys. Rev. Series A, 5.25% 7/1/11	$ 1,135		$ 1,204
Farmington Poll. Cont. Rev. Series B, 3.55%, tender 4/1/10 (FGIC Insured) (c)	1,900		1,893
			3,097
New York - 17.0%
Albany Indl. Dev. Agcy. Civic Facility Rev. (St. Peters Hosp. Proj.) Series 2008 A, 5.5% 11/15/12	1,000		1,050
Grand Central District Mgmt. Assoc., Inc.:
5% 1/1/10	1,200		1,239
5% 1/1/12	1,175		1,238
Long Island Pwr. Auth. Elec. Sys. Rev. Series F, 5% 5/1/11 (MBIA Insured)	10,000		10,460
New York City Gen. Oblig.:
Series 1996 B, 6.5% 8/15/09	3,425		3,592
Series 1997 H, 6% 8/1/12 (FGIC Insured)	1,300		1,420
Series 2000 A, 6.5% 5/15/11	155		166
Series 2003 F, 5.5% 12/15/11	7,840		8,385
Series 2004 G, 5% 8/1/09	8,000		8,250
Series 2005 C, 5% 8/1/12	19,770		20,849
Series 2005 D, 5% 8/1/12	4,925		5,194
Series 2005 F1, 5% 9/1/15	3,560		3,800
Series 2005 G, 5.625% 8/1/13 (MBIA Insured)	5,075		5,455
Series 2005 K:
5% 8/1/11	6,545		6,862
5% 8/1/12	4,360		4,598
Series 2005 O, 5% 6/1/12	7,525		7,926
Series A, 5.25% 11/1/14 (MBIA Insured)	600		634
Series B, 5.75% 8/1/14	1,000		1,075
Series E, 5% 8/1/12	5,000		5,273
Series G, 5.25% 8/1/14 (AMBAC Insured)	1,000		1,046
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev. 6% 6/15/33 (MBIA Insured) (Pre-Refunded to 6/15/10 @ 101) (g)	10,000		10,645
New York City Transitional Fin. Auth. Rev.:
Series A:
5.5% 11/1/26 (a)	3,500		3,679
6% 11/1/28 (a)	44,300		47,239
Series B:
5% 11/1/11	13,680		14,495
5.25% 2/1/29 (a)	3,100		3,209
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New York - continued
New York Counties Tobacco Trust I Series B, 6.5% 6/1/35 (Pre-Refunded to 6/1/10 @ 101) (g)	$ 5,900		$ 6,367
New York Dorm. Auth. Revs.:
(City Univ. Sys. Consolidation Proj.):
Series A:
5.75% 7/1/13	3,500		3,728
5.75% 7/1/13 (AMBAC Insured)	1,000		1,062
Series C, 7.5% 7/1/10	12,415		12,963
Series B, 5.25%, tender 5/15/12 (c)	13,000		13,690
New York Local Govt. Assistance Corp. Series A, 5% 4/1/11	20,000		21,024
New York Metropolitan Trans. Auth. Rev.:
Series 2005 C:
5% 11/15/10	1,940		2,027
5% 11/15/11	2,750		2,891
Series A, 5%, tender 11/15/12 (c)	7,300		7,607
New York Thruway Auth. Second Gen. Hwy. & Bridge Trust Fund Series A, 5% 4/1/13	2,600		2,774
New York Thruway Auth. Svc. Contract Rev. 5.5% 4/1/11	10,000		10,572
New York Urban Dev. Corp. Rev. 5% 1/1/12	5,015		5,262
Niagara County Indl. Dev. Agcy. Solid Waste Disp. Rev. Series 2001 C, 5.625%, tender 11/15/14 (c)(f)	2,450		2,440
Tobacco Settlement Asset Securitization Corp. Series 1, 5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (g)	6,540		6,902
Tobacco Settlement Fing. Corp.:
Series 2004 B1, 5% 6/1/09	3,800		3,895
Series A1:
5% 6/1/10	1,775		1,836
5.25% 6/1/13	7,780		7,790
5.5% 6/1/14	3,965		4,030
5.5% 6/1/17	6,000		6,203
Series C1:
5.5% 6/1/15	1,300		1,334
5.5% 6/1/17	4,200		4,342
			306,518
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New York & New Jersey - 0.3%
Port Auth. of New York & New Jersey 124th Series, 5% 8/1/13 (FGIC Insured) (f)	$ 1,200		$ 1,213
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (MBIA Insured) (f)	4,100		4,439
			5,652
North Carolina - 0.9%
Charlotte-Mecklenburg Hosp. Auth. Health Care Sys. Rev. Series A:
5% 1/15/10	250		257
5% 1/15/11	750		781
5% 1/15/12	400		421
Nash Health Care Sys. Health Care Facilities Rev.:
5% 11/1/13 (FSA Insured)	1,500		1,571
5% 11/1/15 (FSA Insured)	1,600		1,676
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.:
Series A, 5.5% 1/1/10	3,000		3,080
Series D, 5.375% 1/1/10	3,730		3,823
North Carolina Grant Anticipation Rev. 5% 3/1/11	5,000		5,241
			16,850
North Dakota - 0.3%
Grand Forks Health Care Sys. Rev. (Altru Health Sys. Proj.):
5% 12/1/11 (Assured Guaranty Corp. Insured)	1,575		1,632
5% 12/1/15 (Assured Guaranty Corp. Insured)	1,825		1,901
Ward County Health Care Facility Rev. 5% 7/1/10	1,595		1,610
			5,143
Ohio - 1.8%
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A, 5% 1/1/11	1,000		1,025
American Muni. Pwr. Electricity Purchase Rev. Series A, 5% 2/1/11	20,000		20,138
Cleveland Pub. Pwr. Sys. Rev.:
Series A, 0% 11/15/09 (MBIA Insured)	1,200		1,150
0% 11/15/09 (Escrowed to Maturity) (g)	1,050		1,012
Montgomery County Rev. (Catholic Health Initiatives Proj.) Series C2, 4.1%, tender 11/10/11 (c)	2,700		2,752
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Ohio - continued
Ohio Gen. Oblig. (Higher Ed. Proj.) Series 2005 C, 5% 8/1/13	$ 4,495		$ 4,815
Univ. of Cincinnati Gen. Receipts Series A, 5.5% 6/1/09 (FGIC Insured)	2,000		2,052
			32,944
Oklahoma - 0.7%
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (g)	1,000		883
Grand River Dam Auth. Rev. 6.25% 6/1/11 (AMBAC Insured)	8,940		9,640
Norman Reg'l. Hosp. Auth. Hosp. Rev. 5% 9/1/12 (Radian Asset Assurance, Inc. Insured)	1,035		1,050
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) 5% 2/15/13	1,050		1,102
			12,675
Oregon - 0.5%
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured)	1,210		1,259
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B:
5% 5/1/09 (FSA Insured)	600		615
5% 5/1/11 (FSA Insured)	1,000		1,051
Tri-County Metropolitan Trans. District Rev. 5% 5/1/11 (MBIA Insured)	5,000		5,243
			8,168
Pennsylvania - 4.0%
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (MBIA Insured) (f)	1,300		1,338
Allegheny County Hosp. Dev. Auth. Rev. (Pittsburgh Med. Ctr. Proj.):
Series A, 5% 9/1/12	6,615		6,933
Series B, 5% 6/15/14	1,385		1,448
Allegheny County Sanitation Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured)	1,495		1,606
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.) Series B:
5% 12/15/09	2,565		2,581
5% 12/15/11	2,835		2,845
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(f)	10,000		9,950
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Pennsylvania - continued
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (c)(f)	$ 2,100		$ 2,085
Pennsylvania Higher Edl. Facilities Auth. Rev. (UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09	1,750		1,785
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured)	2,750		2,875
Philadelphia Gen. Oblig.:
Series 2007 A:
5% 8/1/11 (FSA Insured)	3,570		3,717
5% 8/1/12 (FSA Insured)	5,000		5,232
Series A:
5% 12/15/14 (FSA Insured)	5,370		5,729
5% 12/15/15 (FSA Insured)	5,000		5,346
5% 12/15/16 (FSA Insured)	7,275		7,776
Philadelphia Muni. Auth. Rev. Series B, 5.25% 11/15/11 (FSA Insured)	3,400		3,615
Philadelphia School District:
Series 2005 D, 5.25% 6/1/12 (FSA Insured)	1,465		1,563
Series B, 5% 4/1/11 (AMBAC Insured)	2,160		2,237
Pittsburgh School District Series A, 5% 9/1/09 (MBIA Insured)	1,600		1,645
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) (g)	2,355		2,030
			72,336
Puerto Rico - 1.2%
Puerto Rico Convention Ctr. District Auth. Hotel Occupancy Tax Rev. Series 2006 A, 5% 7/1/10	2,000		2,043
Puerto Rico Govt. Dev. Bank Series B:
5% 12/1/10	8,000		8,208
5% 12/1/12	1,000		1,024
Univ. of Puerto Rico:
Series P, 5% 6/1/11	5,760		5,878
Series Q, 5% 6/1/11	4,825		4,924
			22,077
Rhode Island - 0.1%
Providence Spl. Oblig. Series 2005 E:
5% 6/1/09 (Radian Asset Assurance, Inc. Insured)	1,315		1,346
5% 6/1/10 (Radian Asset Assurance, Inc. Insured)	1,180		1,214
			2,560
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
South Carolina - 0.7%
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A, 5% 8/15/08	$ 1,690		$ 1,695
Greenville County Pub. Facilities Corp. Ctfs. of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 (AMBAC Insured)	1,450		1,504
Greenville County School District Installment Purp. Rev. 5% 12/1/10	1,455		1,524
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5% 12/1/09	550		568
South Carolina Pub. Svc. Auth. Rev.:
Series 2005 B, 5% 1/1/10 (MBIA Insured)	3,000		3,098
Series A, 5.5% 1/1/11 (MBIA Insured)	3,000		3,130
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured)	1,000		1,030
			12,549
Tennessee - 0.8%
Clarksville Natural Gas Acquisition Corp. Gas Rev. 5% 12/15/09	7,500		7,551
Elizabethton Health & Edl. Facilities Board Rev. (First Mtg. Prog.) 6% 7/1/11 (Escrowed to Maturity) (g)	2,005		2,174
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured)	2,000		2,066
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A, 4.5% 9/1/09 (MBIA Insured)	1,685		1,713
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured)	1,200		1,213
			14,717
Texas - 11.0%
Alief Independent School District Series 2004 B, 5% 2/15/10	1,500		1,555
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B:
6% 1/1/12	500		512
6% 1/1/13	1,270		1,300
6% 1/1/14	1,420		1,451
Austin Elec. Util. Sys. Rev.:
5% 11/15/10 (FSA Insured)	3,000		3,148
5% 11/15/11 (FSA Insured)	4,000		4,228
Austin Util. Sys. Rev. Series 1992 A:
0% 11/15/09 (MBIA Insured)	5,130		4,919
0% 11/15/10 (MBIA Insured)	5,300		4,889
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Bexar County Gen. Oblig. Series A, 5% 6/15/10 (FSA Insured)	$ 1,000		$ 1,042
Birdville Independent School District:
0% 2/15/11	5,000		4,565
5% 2/15/10	1,300		1,348
Brownsville Independent School District 5% 8/15/11	1,430		1,507
Brownsville Util. Sys. Rev. Series A, 5% 9/1/15 (FSA Insured)	2,665		2,871
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured)	1,500		1,600
College Station Independent School District 5% 2/15/10	1,000		1,037
Denton County Gen. Oblig. 5% 7/15/11 (FSA Insured)	3,065		3,226
Fort Bend Independent School District 5%, tender 8/15/09 (c)	5,000		5,153
Fort Worth Independent School District 5% 2/15/12	1,500		1,584
Frisco Gen. Oblig. Series 2003 A, 5% 2/15/10 (FSA Insured)	1,710		1,772
Harris County Health Facilities Dev. Corp. Rev. (Saint Luke's Episcopal Hosp. Proj.) Series 2001 A, 5.5% 2/15/09	3,710		3,790
Houston Cmnty. College Sys. Rev.:
5.25% 4/15/11 (FSA Insured)	3,030		3,200
5.25% 4/15/12 (FSA Insured)	2,000		2,135
Houston Gen. Oblig. Series A:
5% 3/1/12 (MBIA Insured)	3,575		3,769
5% 3/1/13 (MBIA Insured)	7,500		7,956
Houston Util. Sys. Rev.:
Series 2005 C1, 5%, tender 5/15/11 (AMBAC Insured) (c)	5,100		5,206
Series A:
5.25% 5/15/10 (MBIA Insured)	2,835		2,944
5.25% 11/15/11 (FSA Insured)	4,430		4,703
Katy Independent School District Series A, 5.25% 2/15/12	2,000		2,128
Lower Colorado River Auth. Rev. 5.25% 1/1/15 (Pre-Refunded to 1/1/11 @ 100) (g)	5,000		5,251
Lubbock Gen. Oblig.:
(Wtrwks. Sys. Surplus Proj.) 5% 2/15/11 (FSA Insured)	2,465		2,578
5% 2/15/10 (MBIA Insured)	1,845		1,907
Lubbock Health Facilities Dev. Corp. Rev. (Carillon, Inc. Proj.) Series A, 6.5% 7/1/29 (Pre-Refunded to 7/1/09 @ 102) (g)	4,800		5,117
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Magnolia Independent School District 8% 8/15/11 (FGIC Insured)	$ 1,210		$ 1,363
Montgomery County Gen. Oblig. Series B, 5%, tender 9/1/10 (FSA Insured) (c)	1,300		1,356
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C, 5%, tender 7/1/08 (c)(g)	45		45
Northside Independent School District Series A, 3.78%, tender 6/1/09 (c)	5,000		5,073
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series A, 5.5%, tender 11/1/11 (c)	1,000		939
San Angelo Wtrwks. & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured)	1,630		1,691
San Antonio Elec. & Gas Sys. Rev.:
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (g)	5,000		5,228
Series B:
0% 2/1/09 (Escrowed to Maturity) (g)	2,500		2,470
0% 2/1/10 (Escrowed to Maturity) (g)	14,000		13,351
San Antonio Muni. Drainage Util. Sys. Rev. 5.25% 2/1/12 (MBIA Insured)	1,545		1,639
San Antonio Wtr. Sys. Rev.:
5% 5/15/10 (FGIC Insured)	1,020		1,057
5% 5/15/12 (FGIC Insured)	7,000		7,363
Spring Branch Independent School District:
5.375% 2/1/14	1,090		1,143
5.375% 2/1/14 (Pre-Refunded to 2/1/11 @ 100) (g)	1,700		1,795
Tarrant County Cultural Ed. Facilities Fin. Corp. Retirement Facility Rev. (Buckner Retirement Svcs. Proj.) 5% 11/15/09	1,000		1,022
Tarrant County Health Facilities Dev. Corp. Hosp. Rev. ARS (Cook Children's Med. Ctr. Proj.) Series 2000 B, 2.739%, tender 7/7/08 (FSA Insured) (c)	625		612
Texas Gen. Oblig.:
(College Student Ln. Prog.) 5% 8/1/11 (f)	3,000		3,079
Series C, 0% 4/1/09 (Escrowed to Maturity) (g)	2,320		2,284
0% 10/1/13	6,500		5,289
Texas Pub. Fin. Auth. Bldg. Rev. 5% 2/1/11 (AMBAC Insured)	1,550		1,616
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Proj.) Series A, 5% 2/1/10 (AMBAC Insured)	1,055		1,090
Texas Tech Univ. Revs. Ninth Series, 5% 2/15/11 (AMBAC Insured)	1,250		1,304
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Texas Trans. Commission State Hwy. Fund Rev. 5% 4/1/12	$ 4,000		$ 4,235
Texas Wtr. Dev. Board Rev. Series B, 5% 7/15/11	2,780		2,933
Travis County Gen. Oblig. 5.25% 3/1/12	4,125		4,394
Univ. of Texas Board of Regents Sys. Rev.:
Series 2003 B, 5% 8/15/33 (Pre-Refunded to 8/15/13 @ 100) (g)	15,000		15,844
Series B, 5.25% 8/15/11	5,025		5,342
Wichita Falls Independent School District 0% 2/1/10	2,325		2,218
Ysleta Independent School District 0% 8/15/09	4,065		3,966
			198,132
Utah - 1.1%
Salt Lake County Wtr. Conservancy District Rev. Series A:
0% 10/1/11 (AMBAC Insured)	3,800		3,364
0% 10/1/12 (AMBAC Insured)	3,800		3,209
0% 10/1/13 (AMBAC Insured)	3,760		3,028
Utah Bldg. Ownership Auth. Lease Rev. (State Facilities Master Lease Prog.) Series A, 5% 5/15/11	1,700		1,785
Utah Gen. Oblig. Series 2006 B, 5.375% 7/1/10	7,475		7,861
			19,247
Vermont - 0.2%
Vermont Edl. & Health Bldg. Fin. Agcy. Rev. (Fletcher Allen Health Care Proj.) Series 2004 B:
3% 12/1/08 (FSA Insured)	1,000		1,004
4% 12/1/09 (FSA Insured)	1,000		1,020
5% 12/1/15 (FSA Insured)	2,225		2,342
			4,366
Virginia - 0.1%
Chesapeake Econ. Dev. Auth. Poll. Cont. Rev. (Elec. & Pwr. Co. Proj.) Series 2008 A, 3.6%, tender 2/1/13 (c)	1,800		1,756
Washington - 2.2%
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured)	1,190		1,245
Clark County Pub. Util. District #1 Elec. Rev.:
5% 1/1/11 (MBIA Insured)	1,680		1,751
5.25% 1/1/11 (FSA Insured)	1,935		2,033
King County School District #401 Highline Pub. Schools 5.5% 12/1/17 (FGIC Insured)	5,100		5,410
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Washington - continued
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured)	$ 1,740		$ 1,829
Pierce County Gen. Oblig. 5.75% 8/1/13 (Pre-Refunded to 8/1/10 @ 100) (g)	1,155		1,224
Port of Seattle Rev. Series D, 5.75% 11/1/15 (FGIC Insured) (f)	3,640		3,715
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.) 4.5% 12/1/09 (FGIC Insured)	1,000		1,019
Snohomish County School District #2, Everett 5% 6/1/10 (FSA Insured)	1,000		1,041
Vancouver Wtr. & Swr. Rev. 5.25% 6/1/11 (FSA Insured)	1,000		1,058
Washington Gen. Oblig. Series A:
5% 7/1/11 (FGIC Insured)	1,000		1,053
5.5% 7/1/11 (Pre-Refunded to 7/1/10 @ 100) (g)	3,500		3,683
5.625% 7/1/25 (Pre-Refunded to 7/1/10 @ 100) (g)	13,000		13,726
			38,787
Wisconsin - 0.8%
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured)	3,370		3,098
Wisconsin Gen. Oblig. Series 1, 5% 5/1/10 (MBIA Insured)	2,500		2,592
Wisconsin Health & Edl. Facilities Auth. Rev.:
(Marshfield Clinic Proj.):
Series 2006 A, 5% 2/15/13	875		893
Series B, 6.25% 2/15/10	1,015		1,050
(Wheaton Franciscan Healthcare Sys. Proj.):
Series 2002, 5.75% 8/15/11	1,000		1,034
Series 2003 A:
5% 8/15/09	1,765		1,802
5% 8/15/10	1,870		1,896
Series 2006 A, 5% 8/15/11	1,315		1,332
			13,697
TOTAL MUNICIPAL BONDS (Cost $1,785,631)		1,791,908

Money Market Funds - 0.0%
	Shares		Value (000s)
Fidelity Municipal Cash Central Fund, 1.68% (d)(e) (Cost $1)	900		$ 1
TOTAL INVESTMENT PORTFOLIO - 99.6% (Cost $1,785,632)			1,791,909
NET OTHER ASSETS - 0.4%			7,468
NET ASSETS - 100%		$ 1,799,377

Security Type Abbreviation

ARS - Auction Rate Security

Legend

(a) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

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

(d) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund.

(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

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

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

(h) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,690,000 or 0.5% of net assets.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost (000s)
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (Escrowed to Maturity)	3/6/02	$ 8,433

Other Information

The following is a summary of the inputs used, as of June 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
(Amounts in thousands)
Description	Total	Level 1	Level 2	Level 3
Investments in Securities	$ 1,791,909	$ 1	$ 1,789,215	$ 2,693

The following is a reconciliation of assets for which Level 3 inputs were used in determining value:

(Amounts in thousands)	Investments in Securities
Beginning Balance	$ -
Total Realized Gain (Loss)	-
Total Unrealized Gain (Loss)	-
Cost of Purchases	2,693
Proceeds of Sales	-
Amortization/Accretion	-
Transfer in/out of Level 3	-
Ending Balance	$ 2,693

The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period.

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

General Obligations	42.0%
Escrowed/Pre-Refunded	14.4%
Special Tax	10.5%
Electric Utilities	8.8%
Health Care	7.8%
Transportation	6.3%
Others* (individually less than 5%)	10.2%
	100.0%

*Includes cash equivalents and net other assets

Income Tax Information

At December 31, 2007, the fund had a capital loss carryforward of approximately $7,017,000 of which $699,000, $4,871,000 and $1,447,000 will expire on December 31, 2013, 2014 and 2015, 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 amounts)	June 30, 2008 (Unaudited)
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,785,631)	$ 1,791,908
Fidelity Central Funds (cost $1)	1
Total Investments (cost $1,785,632)		$ 1,791,909
Receivable for investments sold		1,493
Receivable for fund shares sold		5,770
Interest receivable		23,318
Prepaid expenses		2
Other receivables		207
Total assets		1,822,699
Liabilities
Payable to custodian bank	197
Payable for investments purchased Regular delivery	10,577
Delayed delivery	1,201
Payable for fund shares redeemed	8,205
Distributions payable	1,734
Accrued management fee	553
Distribution fees payable	16
Other affiliated payables	801
Other payables and accrued expenses	38
Total liabilities		23,322
Net Assets		$ 1,799,377
Net Assets consist of:
Paid in capital		$ 1,797,669
Distributions in excess of net investment income		(84)
Accumulated undistributed net realized gain (loss) on investments		(4,485)
Net unrealized appreciation (depreciation) on investments		6,277
Net Assets		$ 1,799,377

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

Semiannual Report

Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)	June 30, 2008 (Unaudited)
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($22,870 ÷ 2,218.45 shares)		$ 10.31
Maximum offering price per share (100/97.25 of $10.31)		$ 10.60
Class T: Net Asset Value and redemption price per share ($10,807 ÷ 1,049.97 shares)		$ 10.29
Maximum offering price per share (100/97.25 of $10.29)		$ 10.58
Class B: Net Asset Value and offering price per share ($1,341 ÷ 130.15 shares)A		$ 10.30
Class C: Net Asset Value and offering price per share ($10,167 ÷ 987.91 shares)A		$ 10.29
Short-Intermediate Municipal Income: Net Asset Value, offering price and redemption price per share ($1,741,767 ÷ 169,213.12 shares)		$ 10.29
Institutional Class: Net Asset Value, offering price and redemption price per share ($12,425 ÷ 1,206.50 shares)		$ 10.30

^A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

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

Semiannual Report

Financial Statements - continued

Statement of Operations

Amounts in thousands		Six months ended June 30, 2008 (Unaudited)
Investment Income
Interest		$ 31,552
Expenses
Management fee	$ 3,207
Transfer agent fees	794
Distribution fees	80
Accounting fees and expenses	163
Custodian fees and expenses	12
Independent trustees' compensation	4
Registration fees	94
Audit	23
Legal	2
Miscellaneous	7
Total expenses before reductions	4,386
Expense reductions	(234)	4,152
Net investment income		27,400
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	2,237
Swap agreements	295
Total net realized gain (loss)		2,532
Change in net unrealized appreciation (depreciation) on: Investment securities	(6,662)
Swap agreements	(341)
Total change in net unrealized appreciation (depreciation)		(7,003)
Net gain (loss)		(4,471)
Net increase (decrease) in net assets resulting from operations		$ 22,929

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

Semiannual Report

Statement of Changes in Net Assets

Amounts in thousands	Six months ended June 30, 2008 (Unaudited)	Year ended December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 27,400	$ 50,145
Net realized gain (loss)	2,532	(928)
Change in net unrealized appreciation (depreciation)	(7,003)	20,276
Net increase (decrease) in net assets resulting from operations	22,929	69,493
Distributions to shareholders from net investment income	(27,392)	(50,136)
Share transactions - net increase (decrease)	120,524	143,977
Redemption fees	51	16
Total increase (decrease) in net assets	116,112	163,350
Net Assets
Beginning of period	1,683,265	1,519,915
End of period (including distributions in excess of net investment income of $84 and distributions in excess of net investment income of $92, respectively)	$ 1,799,377	$ 1,683,265

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

Semiannual Report

Financial Highlights - Class A

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.33	$ 10.21	$ 10.21	$ 10.39	$ 10.50	$ 10.49
Income from Investment Operations
Net investment income E	.149	.302	.292	.268	.250	.115
Net realized and unrealized gain (loss)	(.020)	.118	(.001)	(.177)	(.090)	.071
Total from investment operations	.129	.420	.291	.091	.160	.186
Distributions from net investment income	(.149)	(.300)	(.291)	(.268)	(.251)	(.111)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.149)	(.300)	(.291)	(.271)	(.270)	(.176)
Redemption fees added to paid in capital E, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.31	$ 10.33	$ 10.21	$ 10.21	$ 10.39	$ 10.50
Total ReturnB, C, D	1.25%	4.19%	2.89%	.89%	1.55%	1.78%
Ratios to Average Net AssetsF,I
Expenses before reductions	.75%A	.71%	.65%	.65%	.65%	.65%A
Expenses net of fee waivers, if any	.75%A	.71%	.65%	.65%	.65%	.65%A
Expenses net of all reductions	.72%A	.64%	.56%	.58%	.64%	.64%A
Net investment income	2.89%A	2.95%	2.86%	2.61%	2.41%	2.52%A
Supplemental Data
Net assets, end of period (in millions)	$ 23	$ 12	$ 10	$ 14	$ 12	$ 9
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 23, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Class T

	Six months ended June 31, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.31	$ 10.19	$ 10.20	$ 10.37	$ 10.48	$ 10.49
Income from Investment Operations
Net investment income E	.149	.297	.281	.257	.238	.110
Net realized and unrealized gain (loss)	(.020)	.120	(.011)	(.167)	(.089)	.050
Total from investment operations	.129	.417	.270	.090	.149	.160
Distributions from net investment income	(.149)	(.297)	(.280)	(.257)	(.240)	(.105)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.149)	(.297)	(.280)	(.260)	(.259)	(.170)
Redemption fees added to paid in capital E, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.29	$ 10.31	$ 10.19	$ 10.20	$ 10.37	$ 10.48
Total ReturnB, C, D	1.25%	4.17%	2.69%	.88%	1.44%	1.54%
Ratios to Average Net AssetsF, I
Expenses before reductions	.75%A	.74%	.75%	.76%	.76%	.77%A
Expenses net of fee waivers, if any	.75%A	.74%	.75%	.76%	.76%	.77%A
Expenses net of all reductions	.72%A	.69%	.66%	.69%	.75%	.76%A
Net investment income	2.89%A	2.91%	2.76%	2.50%	2.30%	2.41%A
Supplemental Data
Net assets, end of period (in millions)	$ 11	$ 10	$ 13	$ 15	$ 20	$ 12
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Class B

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.32	$ 10.20	$ 10.21	$ 10.39	$ 10.49	$ 10.49
Income from Investment Operations
Net investment incomeE	.114	.228	.215	.190	.172	.081
Net realized and unrealized gain (loss)	(.020)	.121	(.012)	(.177)	(.080)	.059
Total from investment operations	.094	.349	.203	.013	.092	.140
Distributions from net investment income	(.114)	(.229)	(.213)	(.190)	(.173)	(.075)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.114)	(.229)	(.213)	(.193)	(.192)	(.140)
Redemption fees added to paid in capitalE, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.30	$ 10.32	$ 10.20	$ 10.21	$ 10.39	$ 10.49
Total ReturnB, C, D	.91%	3.47%	2.02%	.13%	.89%	1.34%
Ratios to Average Net AssetsF, I
Expenses before reductions	1.43%A	1.41%	1.41%	1.41%	1.40%	1.40%A
Expenses net of fee waivers, if any	1.43%A	1.41%	1.41%	1.41%	1.40%	1.40%A
Expenses net of all reductions	1.40%A	1.36%	1.31%	1.34%	1.39%	1.39%A
Net investment income	2.21%A	2.23%	2.11%	1.85%	1.65%	1.78%A
Supplemental Data
Net assets, end of period (in millions)	$ 1	$ 1	$ 2	$ 3	$ 4	$ 2
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the contingent deferred sales charge.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Class C

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48	$ 10.49
Income from Investment Operations
Net investment incomeE	.109	.219	.204	.178	.159	.077
Net realized and unrealized gain (loss)	(.019)	.120	(.011)	(.176)	(.080)	.048
Total from investment operations	.090	.339	.193	.002	.079	.125
Distributions from net investment income	(.110)	(.219)	(.203)	(.179)	(.160)	(.070)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.110)	(.219)	(.203)	(.182)	(.179)	(.135)
Redemption fees added to paid in capitalE, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.29	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48
Total ReturnB, C, D	.86%	3.37%	1.92%	.02%	.77%	1.20%
Ratios to Average Net AssetsF, I
Expenses before reductions	1.51%A	1.51%	1.51%	1.52%	1.52%	1.50%A
Expenses net of fee waivers, if any	1.51%A	1.51%	1.51%	1.52%	1.52%	1.50%A
Expenses net of all reductions	1.49%A	1.45%	1.41%	1.45%	1.51%	1.49%A
Net investment income	2.13%A	2.14%	2.01%	1.74%	1.53%	1.67%A
Supplemental Data
Net assets, end of period (in millions)	$ 10	$ 6	$ 7	$ 10	$ 11	$ 8
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the contingent deferred sales charge.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Short-Intermediate Municipal Income

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48	$ 10.52
Income from Investment Operations
Net investment incomeD	.163	.323	.307	.284	.268	.283
Net realized and unrealized gain (loss)	(.020)	.120	(.010)	(.177)	(.080)	.030
Total from investment operations	.143	.443	.297	.107	.188	.313
Distributions from net investment income	(.163)	(.323)	(.307)	(.284)	(.269)	(.283)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.070)
Total distributions	(.163)	(.323)	(.307)	(.287)	(.288)	(.353)
Redemption fees added to paid in capitalD, H	-	-	-	-	-	-
Net asset value, end of period	$ 10.29	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48
Total ReturnB, C	1.38%	4.43%	2.95%	1.06%	1.82%	3.01%
Ratios to Average Net AssetsE, G
Expenses before reductions	.49%A	.49%	.49%	.49%	.49%	.49%
Expenses net of fee waivers, if any	.49%A	.49%	.49%	.49%	.48%	.49%
Expenses net of all reductions	.47%A	.43%	.41%	.42%	.47%	.47%
Net investment income	3.14%A	3.17%	3.01%	2.77%	2.57%	2.69%
Supplemental Data
Net assets, end of period (in millions)	$ 1,742	$ 1,650	$ 1,485	$ 1,665	$ 1,841	$ 1,843
Portfolio turnover rateF	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^H Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Institutional Class

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.32	$ 10.20	$ 10.20	$ 10.38	$ 10.49	$ 10.49
Income from Investment Operations
Net investment incomeD	.160	.320	.306	.283	.265	.125
Net realized and unrealized gain (loss)	(.019)	.120	-I	(.176)	(.088)	.059
Total from investment operations	.141	.440	.306	.107	.177	.184
Distributions from net investment income	(.161)	(.320)	(.306)	(.284)	(.268)	(.119)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.161)	(.320)	(.306)	(.287)	(.287)	(.184)
Redemption fees added to paid in capitalD, I	-	-	-	-	-	-
Net asset value, end of period	$ 10.30	$ 10.32	$ 10.20	$ 10.20	$ 10.38	$ 10.49
Total ReturnB, C	1.37%	4.39%	3.05%	1.05%	1.71%	1.77%
Ratios to Average Net AssetsE, H
Expenses before reductions	.51%A	.52%	.50%	.49%	.49%	.48%A
Expenses net of fee waivers, if any	.51%A	.52%	.50%	.49%	.49%	.48%A
Expenses net of all reductions	.49%A	.45%	.41%	.42%	.48%	.47%A
Net investment income	3.13%A	3.14%	3.01%	2.77%	2.57%	2.69%A
Supplemental Data
Net assets, end of period (000 omitted)	$ 12,425	$ 4,645	$ 3,357	$ 2,625	$ 1,253	$ 414
Portfolio turnover rateF	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I Amount represents less than $.001 per share.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2008 (Unaudited)

(Amounts in thousands except ratios)

1. Organization.

Fidelity Short-Intermediate Municipal Income Fund (the Fund) is a fund of Fidelity Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of four years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:

Semiannual Report

3. Significant Accounting Policies - continued

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value. Actual prices received at disposition may differ.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1	Quoted prices in active markets for identical securities.
Level 2	Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3	Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Security Valuation - continued

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

The aggregate value by input level, as of June 30, 2008, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 pm Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements.

Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.

Semiannual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to futures transactions, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to excise tax regulations.

The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.

The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:

Unrealized appreciation	$ 14,242
Unrealized depreciation	(7,953)
Net unrealized appreciation (depreciation)	$ 6,289
Cost for federal income tax purposes	$ 1,785,620

Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.

New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for fiscal years beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Fund invests in derivative instruments, the accounting treatment and the effect derivatives have on financial performance. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Fund's financial statement disclosures.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

4. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

Swap Agreements. The Fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.

Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.

Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with a fund's custodian in compliance with swap contracts.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $297,923 and $160,354, respectively.

Semiannual Report

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .37% of the Fund's average net assets.

Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:

	Distribution Fee	Service Fee	Paid to FDC	Retained by FDC
Class A	0%	.25%	$ 20	$ 2
Class T	0%	.25%	13	-
Class B	.65%	.25%	7	5
Class C	.75%	.25%	40	14
			$ 80	$ 21

Sales Load. FDC receives a front-end sales charge of up to 2.75% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3% to 1% for Class B, 1% for Class C, ..75% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

	Retained by FDC
Class A	$ 6
Class T	1
Class B*	1
Class C*	2
	$ 10

* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the Fund's Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the Fund, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:

	Amount	% of Average Net Assets*
Class A	$ 8	.09
Class T	5	.10
Class B	1	.13
Class C	4	.10
Short-Intermediate Municipal Income	772	.09
Institutional Class	4	.11
	$ 794

* Annualized

Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, to maintain the Fund's accounting records. The fee is based on the level of average net assets for the month.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Semiannual Report

8. Expense Reductions.

Through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $12 and $150, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.

	Transfer Agent expense reduction
Class A	$ 1
Short-Intermediate Municipal Income	71
	$ 72

9. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended June 30, 2008	Year ended December 31, 2007
From net investment income
Class A	$ 234	$ 281
Class T	151	296
Class B	16	44
Class C	83	121
Short-Intermediate Municipal Income	26,803	49,282
Institutional Class	105	112
Total	$ 27,392	$ 50,136

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

11. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended June 30, 2008	Year ended December 31, 2007	Six months ended June 30, 2008	Year ended December 31, 2007
Class A
Shares sold	1,478	398	$ 15,383	$ 4,082
Reinvestment of distributions	17	23	177	231
Shares redeemed	(410)	(268)	(4,260)	(2,734)
Net increase (decrease)	1,085	153	$ 11,300	$ 1,579
Class T
Shares sold	199	200	$ 2,070	$ 2,060
Reinvestment of distributions	12	24	123	241
Shares redeemed	(123)	(489)	(1,278)	(4,985)
Net increase (decrease)	88	(265)	$ 915	$ (2,684)
Class B
Shares sold	40	72	$ 429	$ 729
Reinvestment of distributions	1	3	10	28
Shares redeemed	(51)	(165)	(535)	(1,685)
Net increase (decrease)	(10)	(90)	$ (96)	$ (928)
Class C
Shares sold	549	151	$ 5,714	$ 1,547
Reinvestment of distributions	5	7	51	76
Shares redeemed	(110)	(253)	(1,140)	(2,584)
Net increase (decrease)	444	(95)	$ 4,625	$ (961)
Short-Intermediate Municipal Income
Shares sold	36,044	43,647	$ 374,687	$ 445,094
Reinvestment of distributions	1,598	3,143	16,585	32,070
Shares redeemed	(28,427)	(32,503)	(295,345)	(331,437)
Net increase (decrease)	9,215	14,287	$ 95,927	$ 145,727
Institutional Class
Shares sold	836	258	$ 8,681	$ 2,627
Reinvestment of distributions	4	4	40	46
Shares redeemed	(83)	(141)	(868)	(1,429)
Net increase (decrease)	757	121	$ 7,853	$ 1,244

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Short-Intermediate Municipal Income Fund

Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its June 2008 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved agreements with foreign sub-advisers Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Japan) Inc., and Fidelity Management & Research (Hong Kong) Limited.

In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fees on Fidelity's Institutional Money Market Funds and launching Class IV and Institutional Class of certain of these funds; (iii) reducing the transfer agent fees for the Fidelity Select Portfolios and Investor Class of the VIP funds; and (iv) launching Class K of 29 equity funds as a lower-fee class available to certain employer-sponsored retirement plans.

Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2007, as available, the cumulative total returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.

Semiannual Report

Fidelity Short-Intermediate Municipal Income Fund

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity Short-Intermediate Municipal Income (retail class) of the fund was in the first quartile for the one-year period and the second quartile for the three- and five-year periods. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions that may be taken by FMR to improve the fund's below-benchmark performance.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 20% means that 80% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Fidelity Short-Intermediate Municipal Income Fund

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2007.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

Semiannual Report

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each of Class A, Class T, Class B, Institutional Class, and Fidelity Short-Intermediate Municipal Income (retail class) ranked below its competitive median for 2007, and the total expenses of Class C ranked above its competitive median for 2007. The Board considered that the total expenses of Class C were above the median primarily due to higher transfer agent fees. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Semiannual Report

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends and actions to be taken by FMR to improve certain funds' overall performance; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability and the extent to which portfolio manager compensation is linked to fund performance; (v) Fidelity's fee structures; (vi) the funds' sub-advisory arrangements; and (vii) accounts managed by Fidelity other than the Fidelity funds.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

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

For mutual fund and brokerage trading.

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

(computer_graphic)
Fidelity's Web Site
www.fidelity.com

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

Semiannual Report

To Write Fidelity

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
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)
For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Adviser

Fidelity Investments Money
Management, Inc.

Fidelity Research & Analysis Company

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

Fidelity Management & Research
(U.K.) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Citibank, N.A.
New York, NY

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

Citibank, N.A.

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST^®) 1-800-544-5555

Automated line for quickest service

STM-USAN-0808
1.787790.105

(Fidelity Investment logo)(registered trademark)

Fidelity Advisor
Short-Intermediate
Municipal Income
Fund - Class A, Class T, Class B
and Class C

Semiannual Report

June 30, 2008

Class A, Class T, Class B,
and Class C are classes of
Fidelity® Short-Intermediate
Municipal Income Fund

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
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.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

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

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

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

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Domestic and international securities markets have struggled thus far in 2008. High-grade fixed-income investments produced modestly positive results, but many stock benchmarks suffered double-digit losses through the first half of this year. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2008 to June 30, 2008).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

	Beginning Account Value January 1, 2008	Ending Account Value June 30, 2008	Expenses Paid During Period* January 1, 2008 to June 30, 2008
Class A
Actual	$ 1,000.00	$ 1,012.50	$ 3.75
HypotheticalA	$ 1,000.00	$ 1,021.13	$ 3.77
Class T
Actual	$ 1,000.00	$ 1,012.50	$ 3.75
HypotheticalA	$ 1,000.00	$ 1,021.13	$ 3.77
Class B
Actual	$ 1,000.00	$ 1,009.10	$ 7.14
HypotheticalA	$ 1,000.00	$ 1,017.75	$ 7.17
Class C
Actual	$ 1,000.00	$ 1,008.60	$ 7.54
HypotheticalA	$ 1,000.00	$ 1,017.35	$ 7.57
Short-Intermediate Municipal Income
Actual	$ 1,000.00	$ 1,013.80	$ 2.45
HypotheticalA	$ 1,000.00	$ 1,022.43	$ 2.46
Institutional Class
Actual	$ 1,000.00	$ 1,013.70	$ 2.55
HypotheticalA	$ 1,000.00	$ 1,022.33	$ 2.56

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

	Annualized Expense Ratio
Class A	.75%
Class T	.75%
Class B	1.43%
Class C	1.51%
Short-Intermediate Municipal Income	.49%
Institutional Class	.51%

Semiannual Report

Investment Changes (Unaudited)

Top Five States as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
New York	17.0	17.7
Texas	11.0	11.1
California	10.2	9.8
Illinois	7.9	7.7
New Jersey	5.5	5.4
Top Five Sectors as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
General Obligations	42.0	43.3
Escrowed/Pre-Refunded	14.4	14.8
Special Tax	10.5	11.1
Electric Utilities	8.8	8.8
Health Care	7.8	5.1
Weighted Average Maturity as of June 30, 2008
		6 months ago
Years	3.6	3.6

The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity, taking into account any maturity shortening feature such as a call, refunding or redemption provision.

Duration as of June 30, 2008
		6 months ago
Years	2.8	2.9

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

Quality Diversification (% of fund's net assets)
As of June 30, 2008		As of December 31, 2007
	AAA 24.3%		AAA 51.2%
	AA,A 68.8%		AA,A 41.7%
	BBB 4.4%		BBB 4.5%
	BB and Below 0.2%		BB and Below 0.5%
	Not Rated 1.9%		Not Rated 1.1%
	Short-Term Investments and Net Other Assets 0.4%		Short-Term Investments and Net Other Assets 1.0%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings.

Semiannual Report

Investments June 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 99.6%
	Principal Amount (000s)		Value (000s)
Alabama - 1.9%
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09	$ 1,100		$ 1,109
Birmingham Wtrwks. & Swr. Board Wtr. & Swr. Rev. Series B, 5% 1/1/37 (Pre-Refunded to 1/1/13 @ 100) (g)	10,000		10,670
Health Care Auth. for Baptist Health Series 2006 D:
5% 11/15/08	1,475		1,489
5% 11/15/11	1,000		1,029
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev. 5.75% 10/1/09 (MBIA Insured) (f)	4,000		4,125
Jefferson County Swr. Rev.:
Series A, 5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (g)	3,900		4,076
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (g)	2,070		2,128
Mobile Indl. Dev. Board Poll. Cont. Rev. (Alabama Pwr. Co. Barry Plant Proj.) Series 2007 A, 4.75%, tender 3/19/12 (c)	5,000		5,073
Pell City Spl. Care Facilities Rev. (Noland Health Services, Inc. Proj.) Series A:
5% 12/1/08	400		404
5% 12/1/09	500		499
5% 12/1/10	855		848
5% 12/1/12	750		737
Univ. of Alabama - Birmingham Series A, 5% 9/1/13 (b)	1,175		1,204
			33,391
Alaska - 0.3%
Alaska Student Ln. Corp. Student Ln. Rev. Series A, 5.85% 7/1/13 (Pre-Refunded to 7/1/10 @ 100) (f)(g)	3,285		3,466
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 (Pre-Refunded to 12/1/10 @ 100) (g)	2,500		2,665
			6,131
Arizona - 1.1%
Arizona Ctfs. of Prtn. Series B, 5.5% 9/1/10 (FSA Insured)	9,025		9,495
Arizona Health Facilities Auth. Rev. (Banner Health Sys. Proj.) Series 2008 A, 5% 1/1/13	2,000		2,097
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured)	1,115		1,152
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Arizona - continued
Nogales Rev. Oblig. (Wastewtr. Systems Proj.) Series 2006A, 3.75%, tender 10/1/09, LOC JPMorgan Chase Bank (c)	$ 3,000		$ 3,022
Pinal County Indl. Dev. Auth. Correctional Facilities Contract Rev. (Florence West Prison Expansion, LLC Proj.) Series A, 4.5% 10/1/08 (ACA Finl. Guaranty Corp. Insured)	660		662
Tucson Wtr. Rev. Series A:
5% 7/1/11 (FGIC Insured)	1,500		1,551
5% 7/1/15 (FGIC Insured)	1,645		1,739
			19,718
California - 10.2%
California Dept. of Wtr. Resources Pwr. Supply Rev.:
Series 2002 A, 5.5% 5/1/16 (Pre-Refunded to 5/1/12 @ 101) (g)	11,470		12,514
Series A, 5.25% 5/1/12 (MBIA Insured)	6,000		6,393
California Econ. Recovery Series 2004 A:
5.25% 1/1/11	6,500		6,839
5.25% 7/1/13	2,400		2,594
5.25% 7/1/13 (MBIA Insured)	2,900		3,133
California Gen. Oblig.:
5% 2/1/10	2,000		2,070
5% 2/1/11	4,000		4,179
5% 2/1/11	2,525		2,638
5% 10/1/11	1,650		1,740
5% 2/1/12	1,650		1,735
5% 3/1/12	15,000		15,787
5% 9/1/12	1,700		1,800
5% 10/1/12	12,600		13,349
5% 11/1/13	10,000		10,663
5.25% 9/1/10	18,550		19,520
5.25% 2/1/11	6,375		6,699
5.5% 3/1/11 (FGIC Insured)	3,210		3,398
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured)	3,525		3,731
6.5% 9/1/10	1,760		1,896
California Health Facilities Fing. Auth. Rev.:
(Catholic Healthcare West Proj.) Series 2008 H, 5.125% 7/1/22	2,850		2,855
(Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/10	1,000		1,031
California Infrastructure & Econ. Dev. Bank Rev. Series C, 3.9%, tender 12/1/11 (c)	2,100		2,146
California State Univ. Rev. 5% 11/1/13 (FSA Insured)	1,335		1,437
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
California - continued
California Statewide Communities Dev. Auth. Rev. (Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c)	$ 1,400		$ 1,409
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.:
Series A1, 5% 6/1/12	2,570		2,567
Series B:
5.5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (g)	2,000		2,153
5.625% 6/1/38 (Pre-Refunded to 6/1/13 @ 100) (g)	3,030		3,278
Los Angeles Unified School District Series E:
5% 7/1/11	6,075		6,392
5.5% 7/1/14 (MBIA Insured)	4,400		4,702
Northern California Gas Auth. #1 Gas Proj. Rev. Series 2007 A, 5% 7/1/11	2,200		2,218
Poway Unified School District Pub. Fing. Auth. Lease Rev.:
Cap. Appreciation 0%, tender 6/1/10 (FSA Insured) (c)	4,700		4,392
Series 2008 B, 0%, tender 12/1/14 (FSA Insured) (c)	7,235		5,518
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured)	3,600		3,113
Sulphur Springs Union School District Ctfs. of Prtn. 0%, tender 3/1/11 (AMBAC Insured) (c)	2,685		2,445
Univ. of California Revs.:
(UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (Escrowed to Maturity) (g)(h)	8,433		8,690
Series K, 5% 5/15/10	4,955		5,174
Western Placer Unified School District Ctfs. of Prtn. (School Facilities Proj.) Series B, 3.625%, tender 12/1/09 (FSA Insured) (c)	3,170		3,205
			183,403
Colorado - 0.3%
Colorado Health Facilities Auth. Rev.:
(Adventist Health Sys. - Sunbelt Proj.):
Series E, 5% 11/15/11	2,230		2,318
Series F, 5% 11/15/12	1,225		1,279
(Volunteers of America Care Proj.) Series A, 5% 7/1/10	615		614
Denver City & County Arpt. Rev. Series A, 5.625% 11/15/12 (FGIC Insured) (f)	2,000		2,049
			6,260
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Connecticut - 1.9%
Connecticut Gen. Oblig.:
Series 2001 D, 5.125% 11/15/18 (Pre-Refunded to 11/15/11 @ 100) (g)	$ 5,000		$ 5,282
Series F, 5% 12/1/11	23,100		24,464
Connecticut Spl. Tax Oblig. Trans. Infrastructure Rev. Series 1998 A, 5.5% 10/1/13 (FGIC Insured)	4,300		4,681
			34,427
District Of Columbia - 0.3%
District of Columbia Gen. Oblig. Series B, 0% 6/1/12 (MBIA Insured)	3,600		3,076
District of Columbia Rev. (Medlantic/Helix Proj.) Series 1998 C:
4% 8/15/09 (FSA Insured)	1,100		1,121
5% 8/15/15 (FSA Insured)	1,500		1,600
			5,797
Florida - 4.7%
Brevard County School Board Ctfs. of Prtn. Series A, 5.5% 7/1/09 (AMBAC Insured)	2,775		2,869
Broward County School Board Ctfs. of Prtn. Series 2008 A, 5% 7/1/15 (FSA Insured)	5,495		5,824
Citizens Property Ins. Corp. Series 2007 A, 5% 3/1/11 (MBIA Insured)	4,025		4,149
Florida Gen. Oblig. (Dept. of Trans. Right-of-Way and Bridge Construction Proj.) Series 2005 B, 6.375% 7/1/13	8,020		9,033
Highlands County Health Facilities Auth. Rev.: (Adventist Health Sys./Sunbelt, Inc. Prog.):
Series 2002, 3.95%, tender 9/1/12 (c)	7,550		7,498
Series 2006 G:
5% 11/15/08	420		422
5% 11/15/09	435		442
5% 11/15/10	400		413
5% 11/15/11	700		728
Series A, 5% 11/15/10	1,000		1,034
Series B, 5% 11/15/08	800		804
Series I, 5%, tender 11/16/09 (c)	4,700		4,769
ARS (Adventist Health Sys./Sunbelt, Inc. Prog.) Series 1999, 3.211%, tender 7/2/08 (FGIC Insured) (c)	2,200		2,081
Hillsborough County Indl. Dev. (H Lee Moffitt Cancer Ctr. Proj.) Series A, 5% 7/1/12	1,310		1,360
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Florida - continued
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.):
Series 2007 B, 5.15%, tender 9/1/13 (c)	$ 1,750		$ 1,739
5%, tender 3/15/12 (AMBAC Insured) (c)	1,500		1,483
Lakeland Hosp. Sys. Rev. (Reg'l. Health Systems Proj.) 5% 11/15/11	2,545		2,641
Lee County Solid Waste Sys. Rev. 5.25% 10/1/09 (MBIA Insured) (f)	1,000		1,020
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured)	1,980		2,134
Miami-Dade County Health Facilities Auth. Hosp. Rev. (Miami Children's Hosp. Proj.) Series A, 4.125%, tender 8/1/11 (c)	2,000		1,973
Miami-Dade County School Board Ctfs. of Prtn. Series B, 5%, tender 5/1/11 (MBIA Insured) (c)	1,500		1,541
Orange County Health Facilities Auth. Rev. (Orlando Reg'l. Health Care Sys. Proj.) Series 2008 A, 5% 11/1/15 (FSA Insured)	1,825		1,935
Palm Beach County School Board Ctfs. of Prtn. Series A, 6% 8/1/22 (Pre-Refunded to 8/1/10 @ 101) (g)	7,020		7,525
Polk County Cap. Impt. Rev.:
Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c)	9,000		9,517
5.5% 12/1/11 (FGIC Insured)	3,470		3,703
Polk County School District Sales Tax Rev. 5% 10/1/12 (FSA Insured)	6,080		6,451
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001, 3%, tender 10/1/09, LOC SunTrust Banks, Inc. (c)	1,000		1,002
			84,090
Georgia - 3.4%
Carroll County School District 5% 4/1/11	8,000		8,382
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1992 B, 8.25% 1/1/11 (MBIA Insured)	4,105		4,595
Henry County School District Series A, 5% 4/1/10	26,475		27,523
Main Street Natural Gas, Inc. Georgia Gas Proj. Rev. Series A, 5% 9/15/12	4,000		3,924
Monroe County Dev. Auth. Poll. Cont. Rev.:
(Georgia Pwr. Co. Plant Scherer Proj.) First Series, 4.5%, tender 4/1/11 (c)	5,200		5,267
(Georgia Pwr. Co. Proj.) Series 2007 A, 4.75%, tender 4/1/11 (MBIA Insured) (c)	5,705		5,659
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Georgia - continued
Walton County:
5% 1/1/10 (FGIC Insured)	$ 2,000		$ 2,050
5% 1/1/11 (FGIC Insured)	3,000		3,123
			60,523
Hawaii - 0.4%
Hawaii Arpts. Sys. Rev. Series 2000 B, 8% 7/1/10 (FGIC Insured) (f)	3,850		4,082
Hawaii Gen. Oblig. Series CU:
5.75% 10/1/11 (MBIA Insured)	3,040		3,223
5.75% 10/1/11 (Pre-Refunded to 10/1/10 @ 100) (g)	170		181
			7,486
Illinois - 7.9%
Chicago Board of Ed. Series 1997, 6.75% 12/1/10 (AMBAC Insured)	4,160		4,538
Chicago Gen. Oblig. Series A, 5.25% 1/1/12 (FSA Insured)	1,000		1,063
Chicago Midway Arpt. Rev. Series B:
5% 1/1/10 (AMBAC Insured)	1,225		1,252
5% 1/1/11 (AMBAC Insured)	3,625		3,756
Chicago O'Hare Int'l. Arpt. Rev.:
Series A:
5% 1/1/12 (FSA Insured)	3,500		3,663
5% 1/1/12 (MBIA Insured)	1,165		1,217
5% 1/1/13 (FSA Insured)	4,000		4,202
Series 1999, 5.5% 1/1/10 (AMBAC Insured) (f)	2,900		2,986
Chicago Park District:
Series B, 5% 1/1/11 (AMBAC Insured)	5,750		5,996
Series C, 5% 1/1/11 (AMBAC Insured)	2,515		2,623
Chicago Transit Auth. Cap. Grant Receipts Rev. (Fed. Transit Administration Section 5307 Formula Funds Proj.) Series A, 5.25% 6/1/10 (AMBAC Insured)	4,835		5,042
Granite City Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.875%, tender 5/3/10 (c)(f)	5,500		5,465
Hodgkins Tax Increment Rev. 5% 1/1/09	1,805		1,810
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) Series 2004 C, 5.5% 10/1/10	1,900		1,990
Illinois Edl. Facilities Auth. Revs.:
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c)	12,800		12,812
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Illinois - continued
Illinois Edl. Facilities Auth. Revs.: - continued
(Field Museum of Natural History Proj.) 4.05%, tender 11/1/11 (c)	$ 3,250		$ 3,283
(Univ. of Chicago Proj.):
Series A, 5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (g)	2,640		2,822
4.05%, tender 7/1/09 (c)	7,000		7,118
Illinois Fin. Auth. Rev.:
(DePaul Univ. Proj.) Series A:
5% 10/1/08	1,000		1,007
5% 10/1/11	1,450		1,506
(Rush Univ. Med. Ctr. Proj.) Series B:
5% 11/1/15 (MBIA Insured)	3,075		3,199
5% 11/1/16 (MBIA Insured)	1,700		1,763
Illinois Gen. Oblig.:
First Series 2001, 5.25% 5/1/11 (FSA Insured)	1,515		1,603
First Series:
5.375% 7/1/11 (MBIA Insured)	6,745		7,165
5.5% 8/1/10	1,495		1,575
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (g)	7,075		7,417
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (g)	1,000		1,053
Illinois Health Facilities Auth. Rev.:
(Delnor Hosp. Proj.) Series A:
5% 5/15/15 (FSA Insured)	2,250		2,356
5% 5/15/16 (FSA Insured)	2,325		2,433
(Edward Hosp. Obligated Group Proj.) Series B, 5.125% 2/15/25 (Pre-Refunded to 2/15/11 @ 101) (g)	8,500		9,010
Kane & DeKalb Counties Cmnty. Unit School District #301 0% 12/1/10 (AMBAC Insured)	2,000		1,843
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 (FSA Insured)	2,270		2,432
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) (g)	1,600		1,728
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11	2,365		2,470
Madison County Cmnty. United School District #007 Series A, 5% 12/1/11 (FSA Insured)	2,965		3,127
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Illinois - continued
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev.:
(McCormick Place Expansion Proj.) Series A, 0% 12/15/13 (MBIA Insured)	$ 2,725		$ 2,175
Series 2002, 0% 6/15/10 (Escrowed to Maturity) (g)	5,000		4,697
Quincy Hosp. Rev. (Blessing Hosp. Proj.) 5% 11/15/10	1,285		1,326
Rosemont Gen. Oblig. Series A, 0% 12/1/11 (FGIC Insured)	3,695		3,252
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Proj.) 5% 8/15/11 (AMBAC Insured)	1,360		1,428
Univ. of Illinois Univ. Revs. (Auxiliary Facilities Sys. Proj.) Series A, 5% 4/1/11 (MBIA Insured)	5,050		5,292
			141,495
Indiana - 3.0%
Carmel High School Bldg. Corp. 5% 1/10/11 (FSA Insured)	1,000		1,046
Ctr. Grove 2000 Bldg. Corp.:
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g)	1,785		1,909
5.5% 7/15/18 (Pre-Refunded to 7/15/11 @ 100) (g)	1,885		2,016
Hamilton Southeastern Consolidated School Bldg. Corp.:
Series A:
5% 1/10/10 (FSA Insured)	1,750		1,809
5.25% 7/10/11 (FSA Insured)	2,295		2,430
5.25% 1/10/12 (FSA Insured)	1,355		1,439
5% 1/15/10 (FSA Insured)	1,835		1,897
5% 1/15/11 (FSA Insured)	1,910		1,995
5% 1/15/12 (FSA Insured)	1,990		2,098
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g)	1,855		1,983
Indiana Fin. Auth. Rev. (Ascension Health Proj.) Series 2008 E7, 3.5%, tender 12/15/09 (c)	5,000		5,005
Indiana Health Facility Fing. Auth. Rev. (Ascension Health Cr. Group Proj.) Series 2005 A3, 5%, tender 7/1/11 (c)	4,100		4,236
Indiana Univ. Student Fee Revs. Series H, 0% 8/1/09 (AMBAC Insured)	3,875		3,771
Indianapolis Local Pub. Impt. Bond Bank (Wtrwks. Proj.) Series A, 5.5% 7/1/16 (Pre-Refunded to 7/1/12 @ 100) (g)	5,000		5,409
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured)	1,405		1,446
Logansport High School Bldg. Corp.:
5.25% 1/15/11 (MBIA Insured)	1,000		1,048
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Indiana - continued
Logansport High School Bldg. Corp.: - continued
5.25% 7/15/11 (MBIA Insured)	$ 1,020		$ 1,077
5.25% 1/15/12 (MBIA Insured)	1,045		1,105
5.25% 7/15/12 (MBIA Insured)	1,075		1,143
Mount Vernon of Hancock County Multi-School Corp. Series B:
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g)	1,605		1,716
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g)	1,695		1,812
Muncie School Bldg. Corp. 5.25% 7/10/12 (MBIA Insured)	1,585		1,691
New Albany Floyd County Independent School Bldg. Corp. 5% 1/15/11 (FSA Insured)	1,000		1,046
Rockport Poll. Cont. Rev. (AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (c)	1,600		1,639
West Clark 2000 School Bldg. Corp.:
5.25% 1/15/11 (MBIA Insured)	1,065		1,118
5.25% 7/15/11 (MBIA Insured)	1,125		1,190
5.25% 1/15/12 (MBIA Insured)	1,150		1,218
			54,292
Kansas - 0.2%
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L:
5.25% 11/15/10	545		567
5.25% 11/15/12	680		711
Olathe Health Facilities Rev. (Olathe Med. Ctr. Proj.) Series 2008 A, 4.125%, tender 3/1/13 (c)	1,600		1,598
			2,876
Kentucky - 0.1%
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (f)	1,185		1,204
Louisiana - 0.4%
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. Series B, 5% 2/1/12 (AMBAC Insured)	1,000		1,052
Ernest N. Morial-New Orleans Exhibit Hall Auth. Spl. Tax Series A, 5.25% 7/15/11 (Escrowed to Maturity) (g)	2,060		2,185
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Louisiana - continued
Louisiana Military Dept. Custody Receipts 5% 8/1/10	$ 1,530		$ 1,584
Louisiana Offshore Term. Auth. Deepwater Port Rev. (LOOP LLC Proj.) Series 2003 D, 4%, tender 9/1/08 (c)	2,700		2,707
			7,528
Maryland - 2.2%
Baltimore Proj. Rev. (Wtr. Projs.) Series 2007 D:
5% 7/1/10 (AMBAC Insured)	690		719
5% 7/1/11 (AMBAC Insured)	1,985		2,088
Howard County Retirement Cmnty. Rev. (Vantage House Proj.) Series A, 4.5% 4/1/09	405		403
Maryland Gen. Oblig. (State & Local Facilities Ln. Prog.):
First Series 2005 B, 5.25% 2/15/12	20,000		21,396
First Series 2008, 5% 3/1/12	10,000		10,617
Maryland Health & Higher Edl. Facilities Auth. Rev. (Johns Hopkins Health Sys. Obligated Group Proj.) Series 2008 B, 5%, tender 5/15/15 (c)	2,225		2,311
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured)	1,535		1,601
			39,135
Massachusetts - 4.0%
Massachusetts Dept. of Agricultural Resources Higher Ed. Rev. Series A, 5% 1/1/11	1,000		1,022
Massachusetts Fed. Hwy.:
Series 2000 A, 5.75% 6/15/13	3,000		3,201
Series B, 5.125% 12/15/14 (Pre-Refunded to 12/15/08 @ 101) (g)	2,775		2,831
Massachusetts Gen. Oblig.:
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (g)	2,570		2,685
Series 2000 A, 6% 2/1/10	2,500		2,629
Series 2001 A, 5.5% 1/1/11	5,000		5,286
Series 2002 C, 5.5% 11/1/10 (FSA Insured)	10,000		10,606
Series 2003 C, 5.5% 10/1/10 (MBIA Insured)	1,130		1,195
Series C, 5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (g)	2,495		2,658
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series A, 5.5% 1/1/12 (AMBAC Insured) (f)	1,000		984
Massachusetts Spl. Oblig. Rev. (Fed. Hwy. Grant Anticipation Note Prog.) Series A, 5% 12/15/12 (FSA Insured)	3,300		3,508
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Massachusetts - continued
Massachusetts Wtr. Resources Auth. Wtr. & Swr. Rev.:
Series 2000 A:
5.75% 8/1/30 (FGIC Insured) (Pre-Refunded to 8/1/10 @ 101) (g)	$ 19,000		$ 20,271
5.75% 8/1/39 (Pre-Refunded to 8/1/10 @ 101) (g)	5,000		5,334
Series B, 5.2% 8/1/22 (Pre-Refunded to 8/1/11 @ 101) (g)	8,350		8,901
			71,111
Michigan - 2.7%
Allegan Pub. School District 5% 5/1/12 (MBIA Insured)	1,590		1,675
Chelsea School District 5% 5/1/13 (MBIA Insured)	1,750		1,854
Clarkston Cmnty. Schools 5% 5/1/12 (FSA Insured)	3,000		3,182
Detroit City School District Series A, 5.5% 5/1/11 (FSA Insured)	1,200		1,278
Detroit Swr. Disp. Rev.:
Series A, 5.75% 7/1/26 (Pre-Refunded to 1/1/10 @ 101) (g)	2,000		2,107
2.407% 7/1/32 (FSA Insured) (c)	4,105		3,562
DeWitt Pub. Schools 5% 5/1/10 (MBIA Insured)	1,280		1,320
Grand Haven Area Pub. Schools 5% 5/1/12 (FSA Insured)	2,965		3,123
Grand Rapids Cmnty. College:
5% 5/1/12 (FSA Insured)	1,305		1,384
5% 5/1/13 (FSA Insured)	1,305		1,394
Kent Hosp. Fin. Auth. Hosp. Facilities Rev. (Spectrum Health Proj.) Series A, 5.25%, tender 1/15/14 (c)	2,000		2,099
Lincoln Consolidated School District 5% 5/1/12 (FSA Insured)	1,485		1,570
Michigan Bldg. Auth. Rev. (Facilities Prog.) Series I:
5.5% 10/15/09	2,705		2,806
5.5% 10/15/13	2,200		2,311
Michigan Gen. Oblig. (Envir. Protection Prog.) 6.25% 11/1/12	2,735		2,901
Michigan Hosp. Fin. Auth. Rev. (Oakwood Hosp. Proj.) Series A, 5% 7/15/11	2,700		2,774
Plymouth-Canton Cmnty. School District 5% 5/1/12 (FSA Insured)	4,000		4,242
Pontiac Tax Increment Fin. Auth. Series 2002, 6.25% 6/1/22 (Pre-Refunded to 6/1/12 @ 101) (g)	2,260		2,505
Royal Oak City School District 5% 5/1/12	2,000		2,115
Troy School District 5% 5/1/11 (MBIA Insured)	1,000		1,049
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Michigan - continued
Wayne County Cmnty. College (College Facilities Impt. Proj.) 5.25% 7/1/09 (FGIC Insured)	$ 1,220		$ 1,254
Wayne-Westland Cmnty. Schools 5% 5/1/10 (FSA Insured)	1,225		1,274
			47,779
Minnesota - 0.3%
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (HealthPartners Obligated Group Proj.):
5.25% 12/1/08	1,200		1,206
5.25% 12/1/10	500		511
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev. Series A, 5% 1/1/13 (f)	1,000		1,012
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Healthpartners Oblig. Group Proj.):
5% 5/15/09	250		252
5% 5/15/10	200		203
5% 5/15/11	300		305
Saint Paul Port Auth. Lease Rev. (HealthEast Midway Campus Proj.) Series 2003 A, 5% 5/1/10	330		334
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured)	940		984
			4,807
Mississippi - 0.4%
Mississippi Bus. Fin. Corp. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.4%, tender 3/1/11 (c)(f)	1,100		1,083
Mississippi Dev. Bank Spl. Oblig. (Marshall County Correctional Facility Proj.) Series C, 5% 8/1/11	1,050		1,081
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (f)	1,190		1,195
Mississippi Hosp. Equip. & Facilities Auth.:
(Mississippi Baptist Med. Ctr. Proj.) Series 2007 A:
5% 8/15/09	1,000		1,025
5% 8/15/11	1,000		1,031
(South Central Reg'l. Med. Ctr. Proj.) 5% 12/1/10	1,240		1,258
			6,673
Missouri - 0.8%
Bi-State Dev. Agcy. Missouri Illinois Metropolitan District Rev. 3.95%, tender 10/1/09, LOC JPMorgan Chase Bank (c)	6,600		6,647
Fenton Tax Increment Rev. (Gravois Bluffs Redev. Proj.) 5% 4/1/11	1,430		1,477
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Missouri - continued
Kansas City School District Bldg. Corp. Rev. (School District Elementary School Proj.) Series B, 5% 2/1/11 (FGIC Insured)	$ 1,850		$ 1,893
Lees Summit Indl. Dev. Auth. Sr. Living Facilities Rev. (John Knox Village Proj.) Series A, 5% 8/15/11	1,485		1,476
Saint Louis Arpt. Rev. Series 2003 A, 5.25% 7/1/11 (FSA Insured)	1,000		1,052
Saint Louis County Indl. Dev. Auth. Sr. Living Facilities Rev. (Friendship Village West County Proj.) Series A, 5% 9/1/11	1,000		1,001
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) (g)	1,050		1,133
			14,679
Montana - 0.3%
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (c)	5,675		5,715
Nebraska - 0.6%
Central Plains Energy Proj. Rev. (Nebraska Gas Proj.) Series A, 5% 12/1/11	6,500		6,518
Nebraska Pub. Pwr. District Rev. Series B, 5% 1/1/12 (FSA Insured)	3,500		3,698
			10,216
Nevada - 2.3%
Clark County Arpt. Rev.:
Series 2003 C:
5% 7/1/09 (AMBAC Insured) (f)	2,700		2,757
5% 7/1/10 (AMBAC Insured) (f)	1,225		1,243
5% 7/1/11 (AMBAC Insured) (f)	1,790		1,811
Series 2008 E:
5% 7/1/14	2,905		3,058
5% 7/1/15	3,500		3,681
Clark County Hwy. Impt. Rev. (Motor Vehicle Fuel Tax) 5% 7/1/11 (AMBAC Insured)	3,230		3,389
Clark County School District:
(Bldg. Proj.) Series 2008 A, 5% 6/15/12	10,000		10,571
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (g)	1,600		1,688
Series C, 5% 6/15/10 (MBIA Insured)	1,075		1,118
Series F, 5.375% 6/15/11 (FSA Insured)	4,090		4,350
Henderson Health Care Facilities Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08	1,100		1,100
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Nevada - continued
Lyon Co. School District Gen. Oblig. 5% 6/1/09	$ 695		$ 715
Nevada Gen. Oblig. Series A, 5% 4/1/11 (FSA Insured)	4,015		4,221
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured)	2,410		2,502
			42,204
New Hampshire - 0.2%
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev.:
(United Illumination Co.) Series A, 3.65%, tender 2/1/10 (AMBAC Insured) (c)(f)	2,500		2,509
3.5%, tender 2/1/09 (c)(f)	2,000		2,009
			4,518
New Jersey - 5.5%
Camden County Impt. Auth. Health Care Redev. Rev. (Cooper Health Sys. Obligated Group Proj.) Series B, 5.25% 2/15/09	1,250		1,260
Garden State Preservation Trust Open Space & Farmland Preservation Series B, 6.375% 11/1/11 (MBIA Insured)	7,470		8,215
New Jersey Econ. Dev. Auth. School Facilities Construction Rev.:
Series 2008 J4, 5%, tender 9/1/14 (FSA Insured) (c)	7,000		7,351
Series 2008 W, 5% 3/1/15	10,000		10,597
New Jersey Gen. Oblig. Series H, 5.25% 7/1/12 (FGIC Insured)	5,000		5,351
New Jersey Tpk. Auth. Tpk. Rev. Series A, 6% 1/1/11 (MBIA Insured)	21,785		23,118
New Jersey Trans. Trust Fund Auth.:
Series B:
5.25% 12/15/10 (FGIC Insured)	4,550		4,777
6.5% 6/15/11 (MBIA Insured)	5,000		5,429
Series C, 5.5% 12/15/10 (FSA Insured)	25,000		26,484
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (g)	7,000		7,280
			99,862
New Jersey/Pennsylvania - 0.3%
Delaware River Joint Toll Bridge Commission Pennsylvania-New Jersey Bridge Rev. 5% 7/1/09	5,170		5,317
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New Mexico - 0.2%
Albuquerque Joint Wtr. & Swr. Sys. Rev. Series A, 5.25% 7/1/11	$ 1,135		$ 1,204
Farmington Poll. Cont. Rev. Series B, 3.55%, tender 4/1/10 (FGIC Insured) (c)	1,900		1,893
			3,097
New York - 17.0%
Albany Indl. Dev. Agcy. Civic Facility Rev. (St. Peters Hosp. Proj.) Series 2008 A, 5.5% 11/15/12	1,000		1,050
Grand Central District Mgmt. Assoc., Inc.:
5% 1/1/10	1,200		1,239
5% 1/1/12	1,175		1,238
Long Island Pwr. Auth. Elec. Sys. Rev. Series F, 5% 5/1/11 (MBIA Insured)	10,000		10,460
New York City Gen. Oblig.:
Series 1996 B, 6.5% 8/15/09	3,425		3,592
Series 1997 H, 6% 8/1/12 (FGIC Insured)	1,300		1,420
Series 2000 A, 6.5% 5/15/11	155		166
Series 2003 F, 5.5% 12/15/11	7,840		8,385
Series 2004 G, 5% 8/1/09	8,000		8,250
Series 2005 C, 5% 8/1/12	19,770		20,849
Series 2005 D, 5% 8/1/12	4,925		5,194
Series 2005 F1, 5% 9/1/15	3,560		3,800
Series 2005 G, 5.625% 8/1/13 (MBIA Insured)	5,075		5,455
Series 2005 K:
5% 8/1/11	6,545		6,862
5% 8/1/12	4,360		4,598
Series 2005 O, 5% 6/1/12	7,525		7,926
Series A, 5.25% 11/1/14 (MBIA Insured)	600		634
Series B, 5.75% 8/1/14	1,000		1,075
Series E, 5% 8/1/12	5,000		5,273
Series G, 5.25% 8/1/14 (AMBAC Insured)	1,000		1,046
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev. 6% 6/15/33 (MBIA Insured) (Pre-Refunded to 6/15/10 @ 101) (g)	10,000		10,645
New York City Transitional Fin. Auth. Rev.:
Series A:
5.5% 11/1/26 (a)	3,500		3,679
6% 11/1/28 (a)	44,300		47,239
Series B:
5% 11/1/11	13,680		14,495
5.25% 2/1/29 (a)	3,100		3,209
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New York - continued
New York Counties Tobacco Trust I Series B, 6.5% 6/1/35 (Pre-Refunded to 6/1/10 @ 101) (g)	$ 5,900		$ 6,367
New York Dorm. Auth. Revs.:
(City Univ. Sys. Consolidation Proj.):
Series A:
5.75% 7/1/13	3,500		3,728
5.75% 7/1/13 (AMBAC Insured)	1,000		1,062
Series C, 7.5% 7/1/10	12,415		12,963
Series B, 5.25%, tender 5/15/12 (c)	13,000		13,690
New York Local Govt. Assistance Corp. Series A, 5% 4/1/11	20,000		21,024
New York Metropolitan Trans. Auth. Rev.:
Series 2005 C:
5% 11/15/10	1,940		2,027
5% 11/15/11	2,750		2,891
Series A, 5%, tender 11/15/12 (c)	7,300		7,607
New York Thruway Auth. Second Gen. Hwy. & Bridge Trust Fund Series A, 5% 4/1/13	2,600		2,774
New York Thruway Auth. Svc. Contract Rev. 5.5% 4/1/11	10,000		10,572
New York Urban Dev. Corp. Rev. 5% 1/1/12	5,015		5,262
Niagara County Indl. Dev. Agcy. Solid Waste Disp. Rev. Series 2001 C, 5.625%, tender 11/15/14 (c)(f)	2,450		2,440
Tobacco Settlement Asset Securitization Corp. Series 1, 5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (g)	6,540		6,902
Tobacco Settlement Fing. Corp.:
Series 2004 B1, 5% 6/1/09	3,800		3,895
Series A1:
5% 6/1/10	1,775		1,836
5.25% 6/1/13	7,780		7,790
5.5% 6/1/14	3,965		4,030
5.5% 6/1/17	6,000		6,203
Series C1:
5.5% 6/1/15	1,300		1,334
5.5% 6/1/17	4,200		4,342
			306,518
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New York & New Jersey - 0.3%
Port Auth. of New York & New Jersey 124th Series, 5% 8/1/13 (FGIC Insured) (f)	$ 1,200		$ 1,213
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (MBIA Insured) (f)	4,100		4,439
			5,652
North Carolina - 0.9%
Charlotte-Mecklenburg Hosp. Auth. Health Care Sys. Rev. Series A:
5% 1/15/10	250		257
5% 1/15/11	750		781
5% 1/15/12	400		421
Nash Health Care Sys. Health Care Facilities Rev.:
5% 11/1/13 (FSA Insured)	1,500		1,571
5% 11/1/15 (FSA Insured)	1,600		1,676
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.:
Series A, 5.5% 1/1/10	3,000		3,080
Series D, 5.375% 1/1/10	3,730		3,823
North Carolina Grant Anticipation Rev. 5% 3/1/11	5,000		5,241
			16,850
North Dakota - 0.3%
Grand Forks Health Care Sys. Rev. (Altru Health Sys. Proj.):
5% 12/1/11 (Assured Guaranty Corp. Insured)	1,575		1,632
5% 12/1/15 (Assured Guaranty Corp. Insured)	1,825		1,901
Ward County Health Care Facility Rev. 5% 7/1/10	1,595		1,610
			5,143
Ohio - 1.8%
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A, 5% 1/1/11	1,000		1,025
American Muni. Pwr. Electricity Purchase Rev. Series A, 5% 2/1/11	20,000		20,138
Cleveland Pub. Pwr. Sys. Rev.:
Series A, 0% 11/15/09 (MBIA Insured)	1,200		1,150
0% 11/15/09 (Escrowed to Maturity) (g)	1,050		1,012
Montgomery County Rev. (Catholic Health Initiatives Proj.) Series C2, 4.1%, tender 11/10/11 (c)	2,700		2,752
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Ohio - continued
Ohio Gen. Oblig. (Higher Ed. Proj.) Series 2005 C, 5% 8/1/13	$ 4,495		$ 4,815
Univ. of Cincinnati Gen. Receipts Series A, 5.5% 6/1/09 (FGIC Insured)	2,000		2,052
			32,944
Oklahoma - 0.7%
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (g)	1,000		883
Grand River Dam Auth. Rev. 6.25% 6/1/11 (AMBAC Insured)	8,940		9,640
Norman Reg'l. Hosp. Auth. Hosp. Rev. 5% 9/1/12 (Radian Asset Assurance, Inc. Insured)	1,035		1,050
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) 5% 2/15/13	1,050		1,102
			12,675
Oregon - 0.5%
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured)	1,210		1,259
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B:
5% 5/1/09 (FSA Insured)	600		615
5% 5/1/11 (FSA Insured)	1,000		1,051
Tri-County Metropolitan Trans. District Rev. 5% 5/1/11 (MBIA Insured)	5,000		5,243
			8,168
Pennsylvania - 4.0%
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (MBIA Insured) (f)	1,300		1,338
Allegheny County Hosp. Dev. Auth. Rev. (Pittsburgh Med. Ctr. Proj.):
Series A, 5% 9/1/12	6,615		6,933
Series B, 5% 6/15/14	1,385		1,448
Allegheny County Sanitation Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured)	1,495		1,606
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.) Series B:
5% 12/15/09	2,565		2,581
5% 12/15/11	2,835		2,845
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(f)	10,000		9,950
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Pennsylvania - continued
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (c)(f)	$ 2,100		$ 2,085
Pennsylvania Higher Edl. Facilities Auth. Rev. (UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09	1,750		1,785
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured)	2,750		2,875
Philadelphia Gen. Oblig.:
Series 2007 A:
5% 8/1/11 (FSA Insured)	3,570		3,717
5% 8/1/12 (FSA Insured)	5,000		5,232
Series A:
5% 12/15/14 (FSA Insured)	5,370		5,729
5% 12/15/15 (FSA Insured)	5,000		5,346
5% 12/15/16 (FSA Insured)	7,275		7,776
Philadelphia Muni. Auth. Rev. Series B, 5.25% 11/15/11 (FSA Insured)	3,400		3,615
Philadelphia School District:
Series 2005 D, 5.25% 6/1/12 (FSA Insured)	1,465		1,563
Series B, 5% 4/1/11 (AMBAC Insured)	2,160		2,237
Pittsburgh School District Series A, 5% 9/1/09 (MBIA Insured)	1,600		1,645
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) (g)	2,355		2,030
			72,336
Puerto Rico - 1.2%
Puerto Rico Convention Ctr. District Auth. Hotel Occupancy Tax Rev. Series 2006 A, 5% 7/1/10	2,000		2,043
Puerto Rico Govt. Dev. Bank Series B:
5% 12/1/10	8,000		8,208
5% 12/1/12	1,000		1,024
Univ. of Puerto Rico:
Series P, 5% 6/1/11	5,760		5,878
Series Q, 5% 6/1/11	4,825		4,924
			22,077
Rhode Island - 0.1%
Providence Spl. Oblig. Series 2005 E:
5% 6/1/09 (Radian Asset Assurance, Inc. Insured)	1,315		1,346
5% 6/1/10 (Radian Asset Assurance, Inc. Insured)	1,180		1,214
			2,560
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
South Carolina - 0.7%
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A, 5% 8/15/08	$ 1,690		$ 1,695
Greenville County Pub. Facilities Corp. Ctfs. of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 (AMBAC Insured)	1,450		1,504
Greenville County School District Installment Purp. Rev. 5% 12/1/10	1,455		1,524
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5% 12/1/09	550		568
South Carolina Pub. Svc. Auth. Rev.:
Series 2005 B, 5% 1/1/10 (MBIA Insured)	3,000		3,098
Series A, 5.5% 1/1/11 (MBIA Insured)	3,000		3,130
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured)	1,000		1,030
			12,549
Tennessee - 0.8%
Clarksville Natural Gas Acquisition Corp. Gas Rev. 5% 12/15/09	7,500		7,551
Elizabethton Health & Edl. Facilities Board Rev. (First Mtg. Prog.) 6% 7/1/11 (Escrowed to Maturity) (g)	2,005		2,174
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured)	2,000		2,066
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A, 4.5% 9/1/09 (MBIA Insured)	1,685		1,713
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured)	1,200		1,213
			14,717
Texas - 11.0%
Alief Independent School District Series 2004 B, 5% 2/15/10	1,500		1,555
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B:
6% 1/1/12	500		512
6% 1/1/13	1,270		1,300
6% 1/1/14	1,420		1,451
Austin Elec. Util. Sys. Rev.:
5% 11/15/10 (FSA Insured)	3,000		3,148
5% 11/15/11 (FSA Insured)	4,000		4,228
Austin Util. Sys. Rev. Series 1992 A:
0% 11/15/09 (MBIA Insured)	5,130		4,919
0% 11/15/10 (MBIA Insured)	5,300		4,889
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Bexar County Gen. Oblig. Series A, 5% 6/15/10 (FSA Insured)	$ 1,000		$ 1,042
Birdville Independent School District:
0% 2/15/11	5,000		4,565
5% 2/15/10	1,300		1,348
Brownsville Independent School District 5% 8/15/11	1,430		1,507
Brownsville Util. Sys. Rev. Series A, 5% 9/1/15 (FSA Insured)	2,665		2,871
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured)	1,500		1,600
College Station Independent School District 5% 2/15/10	1,000		1,037
Denton County Gen. Oblig. 5% 7/15/11 (FSA Insured)	3,065		3,226
Fort Bend Independent School District 5%, tender 8/15/09 (c)	5,000		5,153
Fort Worth Independent School District 5% 2/15/12	1,500		1,584
Frisco Gen. Oblig. Series 2003 A, 5% 2/15/10 (FSA Insured)	1,710		1,772
Harris County Health Facilities Dev. Corp. Rev. (Saint Luke's Episcopal Hosp. Proj.) Series 2001 A, 5.5% 2/15/09	3,710		3,790
Houston Cmnty. College Sys. Rev.:
5.25% 4/15/11 (FSA Insured)	3,030		3,200
5.25% 4/15/12 (FSA Insured)	2,000		2,135
Houston Gen. Oblig. Series A:
5% 3/1/12 (MBIA Insured)	3,575		3,769
5% 3/1/13 (MBIA Insured)	7,500		7,956
Houston Util. Sys. Rev.:
Series 2005 C1, 5%, tender 5/15/11 (AMBAC Insured) (c)	5,100		5,206
Series A:
5.25% 5/15/10 (MBIA Insured)	2,835		2,944
5.25% 11/15/11 (FSA Insured)	4,430		4,703
Katy Independent School District Series A, 5.25% 2/15/12	2,000		2,128
Lower Colorado River Auth. Rev. 5.25% 1/1/15 (Pre-Refunded to 1/1/11 @ 100) (g)	5,000		5,251
Lubbock Gen. Oblig.:
(Wtrwks. Sys. Surplus Proj.) 5% 2/15/11 (FSA Insured)	2,465		2,578
5% 2/15/10 (MBIA Insured)	1,845		1,907
Lubbock Health Facilities Dev. Corp. Rev. (Carillon, Inc. Proj.) Series A, 6.5% 7/1/29 (Pre-Refunded to 7/1/09 @ 102) (g)	4,800		5,117
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Magnolia Independent School District 8% 8/15/11 (FGIC Insured)	$ 1,210		$ 1,363
Montgomery County Gen. Oblig. Series B, 5%, tender 9/1/10 (FSA Insured) (c)	1,300		1,356
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C, 5%, tender 7/1/08 (c)(g)	45		45
Northside Independent School District Series A, 3.78%, tender 6/1/09 (c)	5,000		5,073
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series A, 5.5%, tender 11/1/11 (c)	1,000		939
San Angelo Wtrwks. & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured)	1,630		1,691
San Antonio Elec. & Gas Sys. Rev.:
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (g)	5,000		5,228
Series B:
0% 2/1/09 (Escrowed to Maturity) (g)	2,500		2,470
0% 2/1/10 (Escrowed to Maturity) (g)	14,000		13,351
San Antonio Muni. Drainage Util. Sys. Rev. 5.25% 2/1/12 (MBIA Insured)	1,545		1,639
San Antonio Wtr. Sys. Rev.:
5% 5/15/10 (FGIC Insured)	1,020		1,057
5% 5/15/12 (FGIC Insured)	7,000		7,363
Spring Branch Independent School District:
5.375% 2/1/14	1,090		1,143
5.375% 2/1/14 (Pre-Refunded to 2/1/11 @ 100) (g)	1,700		1,795
Tarrant County Cultural Ed. Facilities Fin. Corp. Retirement Facility Rev. (Buckner Retirement Svcs. Proj.) 5% 11/15/09	1,000		1,022
Tarrant County Health Facilities Dev. Corp. Hosp. Rev. ARS (Cook Children's Med. Ctr. Proj.) Series 2000 B, 2.739%, tender 7/7/08 (FSA Insured) (c)	625		612
Texas Gen. Oblig.:
(College Student Ln. Prog.) 5% 8/1/11 (f)	3,000		3,079
Series C, 0% 4/1/09 (Escrowed to Maturity) (g)	2,320		2,284
0% 10/1/13	6,500		5,289
Texas Pub. Fin. Auth. Bldg. Rev. 5% 2/1/11 (AMBAC Insured)	1,550		1,616
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Proj.) Series A, 5% 2/1/10 (AMBAC Insured)	1,055		1,090
Texas Tech Univ. Revs. Ninth Series, 5% 2/15/11 (AMBAC Insured)	1,250		1,304
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Texas Trans. Commission State Hwy. Fund Rev. 5% 4/1/12	$ 4,000		$ 4,235
Texas Wtr. Dev. Board Rev. Series B, 5% 7/15/11	2,780		2,933
Travis County Gen. Oblig. 5.25% 3/1/12	4,125		4,394
Univ. of Texas Board of Regents Sys. Rev.:
Series 2003 B, 5% 8/15/33 (Pre-Refunded to 8/15/13 @ 100) (g)	15,000		15,844
Series B, 5.25% 8/15/11	5,025		5,342
Wichita Falls Independent School District 0% 2/1/10	2,325		2,218
Ysleta Independent School District 0% 8/15/09	4,065		3,966
			198,132
Utah - 1.1%
Salt Lake County Wtr. Conservancy District Rev. Series A:
0% 10/1/11 (AMBAC Insured)	3,800		3,364
0% 10/1/12 (AMBAC Insured)	3,800		3,209
0% 10/1/13 (AMBAC Insured)	3,760		3,028
Utah Bldg. Ownership Auth. Lease Rev. (State Facilities Master Lease Prog.) Series A, 5% 5/15/11	1,700		1,785
Utah Gen. Oblig. Series 2006 B, 5.375% 7/1/10	7,475		7,861
			19,247
Vermont - 0.2%
Vermont Edl. & Health Bldg. Fin. Agcy. Rev. (Fletcher Allen Health Care Proj.) Series 2004 B:
3% 12/1/08 (FSA Insured)	1,000		1,004
4% 12/1/09 (FSA Insured)	1,000		1,020
5% 12/1/15 (FSA Insured)	2,225		2,342
			4,366
Virginia - 0.1%
Chesapeake Econ. Dev. Auth. Poll. Cont. Rev. (Elec. & Pwr. Co. Proj.) Series 2008 A, 3.6%, tender 2/1/13 (c)	1,800		1,756
Washington - 2.2%
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured)	1,190		1,245
Clark County Pub. Util. District #1 Elec. Rev.:
5% 1/1/11 (MBIA Insured)	1,680		1,751
5.25% 1/1/11 (FSA Insured)	1,935		2,033
King County School District #401 Highline Pub. Schools 5.5% 12/1/17 (FGIC Insured)	5,100		5,410
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Washington - continued
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured)	$ 1,740		$ 1,829
Pierce County Gen. Oblig. 5.75% 8/1/13 (Pre-Refunded to 8/1/10 @ 100) (g)	1,155		1,224
Port of Seattle Rev. Series D, 5.75% 11/1/15 (FGIC Insured) (f)	3,640		3,715
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.) 4.5% 12/1/09 (FGIC Insured)	1,000		1,019
Snohomish County School District #2, Everett 5% 6/1/10 (FSA Insured)	1,000		1,041
Vancouver Wtr. & Swr. Rev. 5.25% 6/1/11 (FSA Insured)	1,000		1,058
Washington Gen. Oblig. Series A:
5% 7/1/11 (FGIC Insured)	1,000		1,053
5.5% 7/1/11 (Pre-Refunded to 7/1/10 @ 100) (g)	3,500		3,683
5.625% 7/1/25 (Pre-Refunded to 7/1/10 @ 100) (g)	13,000		13,726
			38,787
Wisconsin - 0.8%
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured)	3,370		3,098
Wisconsin Gen. Oblig. Series 1, 5% 5/1/10 (MBIA Insured)	2,500		2,592
Wisconsin Health & Edl. Facilities Auth. Rev.:
(Marshfield Clinic Proj.):
Series 2006 A, 5% 2/15/13	875		893
Series B, 6.25% 2/15/10	1,015		1,050
(Wheaton Franciscan Healthcare Sys. Proj.):
Series 2002, 5.75% 8/15/11	1,000		1,034
Series 2003 A:
5% 8/15/09	1,765		1,802
5% 8/15/10	1,870		1,896
Series 2006 A, 5% 8/15/11	1,315		1,332
			13,697
TOTAL MUNICIPAL BONDS (Cost $1,785,631)		1,791,908

Money Market Funds - 0.0%
	Shares		Value (000s)
Fidelity Municipal Cash Central Fund, 1.68% (d)(e) (Cost $1)	900		$ 1
TOTAL INVESTMENT PORTFOLIO - 99.6% (Cost $1,785,632)			1,791,909
NET OTHER ASSETS - 0.4%			7,468
NET ASSETS - 100%		$ 1,799,377

Security Type Abbreviation

ARS - Auction Rate Security

Legend

(a) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

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

(d) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund.

(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

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

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

(h) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,690,000 or 0.5% of net assets.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost (000s)
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (Escrowed to Maturity)	3/6/02	$ 8,433

Other Information

The following is a summary of the inputs used, as of June 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
(Amounts in thousands)
Description	Total	Level 1	Level 2	Level 3
Investments in Securities	$ 1,791,909	$ 1	$ 1,789,215	$ 2,693

The following is a reconciliation of assets for which Level 3 inputs were used in determining value:

(Amounts in thousands)	Investments in Securities
Beginning Balance	$ -
Total Realized Gain (Loss)	-
Total Unrealized Gain (Loss)	-
Cost of Purchases	2,693
Proceeds of Sales	-
Amortization/Accretion	-
Transfer in/out of Level 3	-
Ending Balance	$ 2,693

The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period.

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

General Obligations	42.0%
Escrowed/Pre-Refunded	14.4%
Special Tax	10.5%
Electric Utilities	8.8%
Health Care	7.8%
Transportation	6.3%
Others* (individually less than 5%)	10.2%
	100.0%

*Includes cash equivalents and net other assets

Income Tax Information

At December 31, 2007, the fund had a capital loss carryforward of approximately $7,017,000 of which $699,000, $4,871,000 and $1,447,000 will expire on December 31, 2013, 2014 and 2015, 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 amounts)	June 30, 2008 (Unaudited)
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,785,631)	$ 1,791,908
Fidelity Central Funds (cost $1)	1
Total Investments (cost $1,785,632)		$ 1,791,909
Receivable for investments sold		1,493
Receivable for fund shares sold		5,770
Interest receivable		23,318
Prepaid expenses		2
Other receivables		207
Total assets		1,822,699
Liabilities
Payable to custodian bank	197
Payable for investments purchased Regular delivery	10,577
Delayed delivery	1,201
Payable for fund shares redeemed	8,205
Distributions payable	1,734
Accrued management fee	553
Distribution fees payable	16
Other affiliated payables	801
Other payables and accrued expenses	38
Total liabilities		23,322
Net Assets		$ 1,799,377
Net Assets consist of:
Paid in capital		$ 1,797,669
Distributions in excess of net investment income		(84)
Accumulated undistributed net realized gain (loss) on investments		(4,485)
Net unrealized appreciation (depreciation) on investments		6,277
Net Assets		$ 1,799,377

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

Semiannual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)	June 30, 2008 (Unaudited)
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($22,870 ÷ 2,218.45 shares)		$ 10.31
Maximum offering price per share (100/97.25 of $10.31)		$ 10.60
Class T: Net Asset Value and redemption price per share ($10,807 ÷ 1,049.97 shares)		$ 10.29
Maximum offering price per share (100/97.25 of $10.29)		$ 10.58
Class B: Net Asset Value and offering price per share ($1,341 ÷ 130.15 shares)A		$ 10.30
Class C: Net Asset Value and offering price per share ($10,167 ÷ 987.91 shares)A		$ 10.29
Short-Intermediate Municipal Income: Net Asset Value, offering price and redemption price per share ($1,741,767 ÷ 169,213.12 shares)		$ 10.29
Institutional Class: Net Asset Value, offering price and redemption price per share ($12,425 ÷ 1,206.50 shares)		$ 10.30

^A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

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

Semiannual Report

Statement of Operations

Amounts in thousands		Six months ended June 30, 2008 (Unaudited)
Investment Income
Interest		$ 31,552
Expenses
Management fee	$ 3,207
Transfer agent fees	794
Distribution fees	80
Accounting fees and expenses	163
Custodian fees and expenses	12
Independent trustees' compensation	4
Registration fees	94
Audit	23
Legal	2
Miscellaneous	7
Total expenses before reductions	4,386
Expense reductions	(234)	4,152
Net investment income		27,400
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	2,237
Swap agreements	295
Total net realized gain (loss)		2,532
Change in net unrealized appreciation (depreciation) on: Investment securities	(6,662)
Swap agreements	(341)
Total change in net unrealized appreciation (depreciation)		(7,003)
Net gain (loss)		(4,471)
Net increase (decrease) in net assets resulting from operations		$ 22,929

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, 2008 (Unaudited)	Year ended December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 27,400	$ 50,145
Net realized gain (loss)	2,532	(928)
Change in net unrealized appreciation (depreciation)	(7,003)	20,276
Net increase (decrease) in net assets resulting from operations	22,929	69,493
Distributions to shareholders from net investment income	(27,392)	(50,136)
Share transactions - net increase (decrease)	120,524	143,977
Redemption fees	51	16
Total increase (decrease) in net assets	116,112	163,350
Net Assets
Beginning of period	1,683,265	1,519,915
End of period (including distributions in excess of net investment income of $84 and distributions in excess of net investment income of $92, respectively)	$ 1,799,377	$ 1,683,265

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

Semiannual Report

Financial Highlights - Class A

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.33	$ 10.21	$ 10.21	$ 10.39	$ 10.50	$ 10.49
Income from Investment Operations
Net investment income E	.149	.302	.292	.268	.250	.115
Net realized and unrealized gain (loss)	(.020)	.118	(.001)	(.177)	(.090)	.071
Total from investment operations	.129	.420	.291	.091	.160	.186
Distributions from net investment income	(.149)	(.300)	(.291)	(.268)	(.251)	(.111)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.149)	(.300)	(.291)	(.271)	(.270)	(.176)
Redemption fees added to paid in capital E, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.31	$ 10.33	$ 10.21	$ 10.21	$ 10.39	$ 10.50
Total ReturnB, C, D	1.25%	4.19%	2.89%	.89%	1.55%	1.78%
Ratios to Average Net AssetsF,I
Expenses before reductions	.75%A	.71%	.65%	.65%	.65%	.65%A
Expenses net of fee waivers, if any	.75%A	.71%	.65%	.65%	.65%	.65%A
Expenses net of all reductions	.72%A	.64%	.56%	.58%	.64%	.64%A
Net investment income	2.89%A	2.95%	2.86%	2.61%	2.41%	2.52%A
Supplemental Data
Net assets, end of period (in millions)	$ 23	$ 12	$ 10	$ 14	$ 12	$ 9
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 23, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Class T

	Six months ended June 31, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.31	$ 10.19	$ 10.20	$ 10.37	$ 10.48	$ 10.49
Income from Investment Operations
Net investment income E	.149	.297	.281	.257	.238	.110
Net realized and unrealized gain (loss)	(.020)	.120	(.011)	(.167)	(.089)	.050
Total from investment operations	.129	.417	.270	.090	.149	.160
Distributions from net investment income	(.149)	(.297)	(.280)	(.257)	(.240)	(.105)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.149)	(.297)	(.280)	(.260)	(.259)	(.170)
Redemption fees added to paid in capital E, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.29	$ 10.31	$ 10.19	$ 10.20	$ 10.37	$ 10.48
Total ReturnB, C, D	1.25%	4.17%	2.69%	.88%	1.44%	1.54%
Ratios to Average Net AssetsF, I
Expenses before reductions	.75%A	.74%	.75%	.76%	.76%	.77%A
Expenses net of fee waivers, if any	.75%A	.74%	.75%	.76%	.76%	.77%A
Expenses net of all reductions	.72%A	.69%	.66%	.69%	.75%	.76%A
Net investment income	2.89%A	2.91%	2.76%	2.50%	2.30%	2.41%A
Supplemental Data
Net assets, end of period (in millions)	$ 11	$ 10	$ 13	$ 15	$ 20	$ 12
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Class B

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.32	$ 10.20	$ 10.21	$ 10.39	$ 10.49	$ 10.49
Income from Investment Operations
Net investment incomeE	.114	.228	.215	.190	.172	.081
Net realized and unrealized gain (loss)	(.020)	.121	(.012)	(.177)	(.080)	.059
Total from investment operations	.094	.349	.203	.013	.092	.140
Distributions from net investment income	(.114)	(.229)	(.213)	(.190)	(.173)	(.075)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.114)	(.229)	(.213)	(.193)	(.192)	(.140)
Redemption fees added to paid in capitalE, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.30	$ 10.32	$ 10.20	$ 10.21	$ 10.39	$ 10.49
Total ReturnB, C, D	.91%	3.47%	2.02%	.13%	.89%	1.34%
Ratios to Average Net AssetsF, I
Expenses before reductions	1.43%A	1.41%	1.41%	1.41%	1.40%	1.40%A
Expenses net of fee waivers, if any	1.43%A	1.41%	1.41%	1.41%	1.40%	1.40%A
Expenses net of all reductions	1.40%A	1.36%	1.31%	1.34%	1.39%	1.39%A
Net investment income	2.21%A	2.23%	2.11%	1.85%	1.65%	1.78%A
Supplemental Data
Net assets, end of period (in millions)	$ 1	$ 1	$ 2	$ 3	$ 4	$ 2
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the contingent deferred sales charge.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Class C

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48	$ 10.49
Income from Investment Operations
Net investment incomeE	.109	.219	.204	.178	.159	.077
Net realized and unrealized gain (loss)	(.019)	.120	(.011)	(.176)	(.080)	.048
Total from investment operations	.090	.339	.193	.002	.079	.125
Distributions from net investment income	(.110)	(.219)	(.203)	(.179)	(.160)	(.070)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.110)	(.219)	(.203)	(.182)	(.179)	(.135)
Redemption fees added to paid in capitalE, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.29	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48
Total ReturnB, C, D	.86%	3.37%	1.92%	.02%	.77%	1.20%
Ratios to Average Net AssetsF, I
Expenses before reductions	1.51%A	1.51%	1.51%	1.52%	1.52%	1.50%A
Expenses net of fee waivers, if any	1.51%A	1.51%	1.51%	1.52%	1.52%	1.50%A
Expenses net of all reductions	1.49%A	1.45%	1.41%	1.45%	1.51%	1.49%A
Net investment income	2.13%A	2.14%	2.01%	1.74%	1.53%	1.67%A
Supplemental Data
Net assets, end of period (in millions)	$ 10	$ 6	$ 7	$ 10	$ 11	$ 8
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the contingent deferred sales charge.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Short-Intermediate Municipal Income

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48	$ 10.52
Income from Investment Operations
Net investment incomeD	.163	.323	.307	.284	.268	.283
Net realized and unrealized gain (loss)	(.020)	.120	(.010)	(.177)	(.080)	.030
Total from investment operations	.143	.443	.297	.107	.188	.313
Distributions from net investment income	(.163)	(.323)	(.307)	(.284)	(.269)	(.283)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.070)
Total distributions	(.163)	(.323)	(.307)	(.287)	(.288)	(.353)
Redemption fees added to paid in capitalD, H	-	-	-	-	-	-
Net asset value, end of period	$ 10.29	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48
Total ReturnB, C	1.38%	4.43%	2.95%	1.06%	1.82%	3.01%
Ratios to Average Net AssetsE, G
Expenses before reductions	.49%A	.49%	.49%	.49%	.49%	.49%
Expenses net of fee waivers, if any	.49%A	.49%	.49%	.49%	.48%	.49%
Expenses net of all reductions	.47%A	.43%	.41%	.42%	.47%	.47%
Net investment income	3.14%A	3.17%	3.01%	2.77%	2.57%	2.69%
Supplemental Data
Net assets, end of period (in millions)	$ 1,742	$ 1,650	$ 1,485	$ 1,665	$ 1,841	$ 1,843
Portfolio turnover rateF	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^H Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Institutional Class

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.32	$ 10.20	$ 10.20	$ 10.38	$ 10.49	$ 10.49
Income from Investment Operations
Net investment incomeD	.160	.320	.306	.283	.265	.125
Net realized and unrealized gain (loss)	(.019)	.120	-I	(.176)	(.088)	.059
Total from investment operations	.141	.440	.306	.107	.177	.184
Distributions from net investment income	(.161)	(.320)	(.306)	(.284)	(.268)	(.119)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.161)	(.320)	(.306)	(.287)	(.287)	(.184)
Redemption fees added to paid in capitalD, I	-	-	-	-	-	-
Net asset value, end of period	$ 10.30	$ 10.32	$ 10.20	$ 10.20	$ 10.38	$ 10.49
Total ReturnB, C	1.37%	4.39%	3.05%	1.05%	1.71%	1.77%
Ratios to Average Net AssetsE, H
Expenses before reductions	.51%A	.52%	.50%	.49%	.49%	.48%A
Expenses net of fee waivers, if any	.51%A	.52%	.50%	.49%	.49%	.48%A
Expenses net of all reductions	.49%A	.45%	.41%	.42%	.48%	.47%A
Net investment income	3.13%A	3.14%	3.01%	2.77%	2.57%	2.69%A
Supplemental Data
Net assets, end of period (000 omitted)	$ 12,425	$ 4,645	$ 3,357	$ 2,625	$ 1,253	$ 414
Portfolio turnover rateF	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I Amount represents less than $.001 per share.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2008 (Unaudited)

(Amounts in thousands except ratios)

1. Organization.

Fidelity Short-Intermediate Municipal Income Fund (the Fund) is a fund of Fidelity Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of four years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:

Semiannual Report

3. Significant Accounting Policies - continued

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value. Actual prices received at disposition may differ.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1	Quoted prices in active markets for identical securities.
Level 2	Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3	Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Security Valuation - continued

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

The aggregate value by input level, as of June 30, 2008, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 pm Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements.

Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.

Semiannual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to futures transactions, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to excise tax regulations.

The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.

The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:

Unrealized appreciation	$ 14,242
Unrealized depreciation	(7,953)
Net unrealized appreciation (depreciation)	$ 6,289
Cost for federal income tax purposes	$ 1,785,620

Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.

New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for fiscal years beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Fund invests in derivative instruments, the accounting treatment and the effect derivatives have on financial performance. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Fund's financial statement disclosures.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

4. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

Swap Agreements. The Fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.

Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.

Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with a fund's custodian in compliance with swap contracts.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $297,923 and $160,354, respectively.

Semiannual Report

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .37% of the Fund's average net assets.

Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:

	Distribution Fee	Service Fee	Paid to FDC	Retained by FDC
Class A	0%	.25%	$ 20	$ 2
Class T	0%	.25%	13	-
Class B	.65%	.25%	7	5
Class C	.75%	.25%	40	14
			$ 80	$ 21

Sales Load. FDC receives a front-end sales charge of up to 2.75% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3% to 1% for Class B, 1% for Class C, ..75% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

	Retained by FDC
Class A	$ 6
Class T	1
Class B*	1
Class C*	2
	$ 10

* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the Fund's Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the Fund, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:

	Amount	% of Average Net Assets*
Class A	$ 8	.09
Class T	5	.10
Class B	1	.13
Class C	4	.10
Short-Intermediate Municipal Income	772	.09
Institutional Class	4	.11
	$ 794

* Annualized

Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, to maintain the Fund's accounting records. The fee is based on the level of average net assets for the month.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Semiannual Report

8. Expense Reductions.

Through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $12 and $150, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.

	Transfer Agent expense reduction
Class A	$ 1
Short-Intermediate Municipal Income	71
	$ 72

9. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended June 30, 2008	Year ended December 31, 2007
From net investment income
Class A	$ 234	$ 281
Class T	151	296
Class B	16	44
Class C	83	121
Short-Intermediate Municipal Income	26,803	49,282
Institutional Class	105	112
Total	$ 27,392	$ 50,136

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

11. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended June 30, 2008	Year ended December 31, 2007	Six months ended June 30, 2008	Year ended December 31, 2007
Class A
Shares sold	1,478	398	$ 15,383	$ 4,082
Reinvestment of distributions	17	23	177	231
Shares redeemed	(410)	(268)	(4,260)	(2,734)
Net increase (decrease)	1,085	153	$ 11,300	$ 1,579
Class T
Shares sold	199	200	$ 2,070	$ 2,060
Reinvestment of distributions	12	24	123	241
Shares redeemed	(123)	(489)	(1,278)	(4,985)
Net increase (decrease)	88	(265)	$ 915	$ (2,684)
Class B
Shares sold	40	72	$ 429	$ 729
Reinvestment of distributions	1	3	10	28
Shares redeemed	(51)	(165)	(535)	(1,685)
Net increase (decrease)	(10)	(90)	$ (96)	$ (928)
Class C
Shares sold	549	151	$ 5,714	$ 1,547
Reinvestment of distributions	5	7	51	76
Shares redeemed	(110)	(253)	(1,140)	(2,584)
Net increase (decrease)	444	(95)	$ 4,625	$ (961)
Short-Intermediate Municipal Income
Shares sold	36,044	43,647	$ 374,687	$ 445,094
Reinvestment of distributions	1,598	3,143	16,585	32,070
Shares redeemed	(28,427)	(32,503)	(295,345)	(331,437)
Net increase (decrease)	9,215	14,287	$ 95,927	$ 145,727
Institutional Class
Shares sold	836	258	$ 8,681	$ 2,627
Reinvestment of distributions	4	4	40	46
Shares redeemed	(83)	(141)	(868)	(1,429)
Net increase (decrease)	757	121	$ 7,853	$ 1,244

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Short-Intermediate Municipal Income Fund

Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its June 2008 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved agreements with foreign sub-advisers Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Japan) Inc., and Fidelity Management & Research (Hong Kong) Limited.

In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fees on Fidelity's Institutional Money Market Funds and launching Class IV and Institutional Class of certain of these funds; (iii) reducing the transfer agent fees for the Fidelity Select Portfolios and Investor Class of the VIP funds; and (iv) launching Class K of 29 equity funds as a lower-fee class available to certain employer-sponsored retirement plans.

Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2007, as available, the cumulative total returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.

Semiannual Report

Fidelity Short-Intermediate Municipal Income Fund

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity Short-Intermediate Municipal Income (retail class) of the fund was in the first quartile for the one-year period and the second quartile for the three- and five-year periods. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions that may be taken by FMR to improve the fund's below-benchmark performance.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 20% means that 80% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Fidelity Short-Intermediate Municipal Income Fund

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2007.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

Semiannual Report

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each of Class A, Class T, Class B, Institutional Class, and Fidelity Short-Intermediate Municipal Income (retail class) ranked below its competitive median for 2007, and the total expenses of Class C ranked above its competitive median for 2007. The Board considered that the total expenses of Class C were above the median primarily due to higher transfer agent fees. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Semiannual Report

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends and actions to be taken by FMR to improve certain funds' overall performance; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability and the extent to which portfolio manager compensation is linked to fund performance; (v) Fidelity's fee structures; (vi) the funds' sub-advisory arrangements; and (vii) accounts managed by Fidelity other than the Fidelity funds.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments Money
Management, Inc.

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

Fidelity Research & Analysis Company

Fidelity Management & Research
(U.K.) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Citibank, N.A.

New York, NY

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Custodian

Citibank, N.A.

New York, NY

ASTM-USAN-0808
1.803547.104

(Fidelity Investment logo)(registered trademark)

Fidelity Advisor
Short-Intermediate
Municipal Income
Fund - Institutional Class

Semiannual Report

June 30, 2008

Institutional Class is a class of
Fidelity® Short-Intermediate
Municipal Income Fund

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
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.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

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

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

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

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Domestic and international securities markets have struggled thus far in 2008. High-grade fixed-income investments produced modestly positive results, but many stock benchmarks suffered double-digit losses through the first half of this year. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2008 to June 30, 2008).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

	Beginning Account Value January 1, 2008	Ending Account Value June 30, 2008	Expenses Paid During Period* January 1, 2008 to June 30, 2008
Class A
Actual	$ 1,000.00	$ 1,012.50	$ 3.75
HypotheticalA	$ 1,000.00	$ 1,021.13	$ 3.77
Class T
Actual	$ 1,000.00	$ 1,012.50	$ 3.75
HypotheticalA	$ 1,000.00	$ 1,021.13	$ 3.77
Class B
Actual	$ 1,000.00	$ 1,009.10	$ 7.14
HypotheticalA	$ 1,000.00	$ 1,017.75	$ 7.17
Class C
Actual	$ 1,000.00	$ 1,008.60	$ 7.54
HypotheticalA	$ 1,000.00	$ 1,017.35	$ 7.57
Short-Intermediate Municipal Income
Actual	$ 1,000.00	$ 1,013.80	$ 2.45
HypotheticalA	$ 1,000.00	$ 1,022.43	$ 2.46
Institutional Class
Actual	$ 1,000.00	$ 1,013.70	$ 2.55
HypotheticalA	$ 1,000.00	$ 1,022.33	$ 2.56

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

	Annualized Expense Ratio
Class A	.75%
Class T	.75%
Class B	1.43%
Class C	1.51%
Short-Intermediate Municipal Income	.49%
Institutional Class	.51%

Semiannual Report

Investment Changes (Unaudited)

Top Five States as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
New York	17.0	17.7
Texas	11.0	11.1
California	10.2	9.8
Illinois	7.9	7.7
New Jersey	5.5	5.4
Top Five Sectors as of June 30, 2008
	% of fund's net assets	% of fund's net assets 6 months ago
General Obligations	42.0	43.3
Escrowed/Pre-Refunded	14.4	14.8
Special Tax	10.5	11.1
Electric Utilities	8.8	8.8
Health Care	7.8	5.1
Weighted Average Maturity as of June 30, 2008
		6 months ago
Years	3.6	3.6

The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity, taking into account any maturity shortening feature such as a call, refunding or redemption provision.

Duration as of June 30, 2008
		6 months ago
Years	2.8	2.9

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

Quality Diversification (% of fund's net assets)
As of June 30, 2008		As of December 31, 2007
	AAA 24.3%		AAA 51.2%
	AA,A 68.8%		AA,A 41.7%
	BBB 4.4%		BBB 4.5%
	BB and Below 0.2%		BB and Below 0.5%
	Not Rated 1.9%		Not Rated 1.1%
	Short-Term Investments and Net Other Assets 0.4%		Short-Term Investments and Net Other Assets 1.0%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings.

Semiannual Report

Investments June 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Municipal Bonds - 99.6%
	Principal Amount (000s)		Value (000s)
Alabama - 1.9%
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09	$ 1,100		$ 1,109
Birmingham Wtrwks. & Swr. Board Wtr. & Swr. Rev. Series B, 5% 1/1/37 (Pre-Refunded to 1/1/13 @ 100) (g)	10,000		10,670
Health Care Auth. for Baptist Health Series 2006 D:
5% 11/15/08	1,475		1,489
5% 11/15/11	1,000		1,029
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev. 5.75% 10/1/09 (MBIA Insured) (f)	4,000		4,125
Jefferson County Swr. Rev.:
Series A, 5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (g)	3,900		4,076
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (g)	2,070		2,128
Mobile Indl. Dev. Board Poll. Cont. Rev. (Alabama Pwr. Co. Barry Plant Proj.) Series 2007 A, 4.75%, tender 3/19/12 (c)	5,000		5,073
Pell City Spl. Care Facilities Rev. (Noland Health Services, Inc. Proj.) Series A:
5% 12/1/08	400		404
5% 12/1/09	500		499
5% 12/1/10	855		848
5% 12/1/12	750		737
Univ. of Alabama - Birmingham Series A, 5% 9/1/13 (b)	1,175		1,204
			33,391
Alaska - 0.3%
Alaska Student Ln. Corp. Student Ln. Rev. Series A, 5.85% 7/1/13 (Pre-Refunded to 7/1/10 @ 100) (f)(g)	3,285		3,466
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 (Pre-Refunded to 12/1/10 @ 100) (g)	2,500		2,665
			6,131
Arizona - 1.1%
Arizona Ctfs. of Prtn. Series B, 5.5% 9/1/10 (FSA Insured)	9,025		9,495
Arizona Health Facilities Auth. Rev. (Banner Health Sys. Proj.) Series 2008 A, 5% 1/1/13	2,000		2,097
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured)	1,115		1,152
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Arizona - continued
Nogales Rev. Oblig. (Wastewtr. Systems Proj.) Series 2006A, 3.75%, tender 10/1/09, LOC JPMorgan Chase Bank (c)	$ 3,000		$ 3,022
Pinal County Indl. Dev. Auth. Correctional Facilities Contract Rev. (Florence West Prison Expansion, LLC Proj.) Series A, 4.5% 10/1/08 (ACA Finl. Guaranty Corp. Insured)	660		662
Tucson Wtr. Rev. Series A:
5% 7/1/11 (FGIC Insured)	1,500		1,551
5% 7/1/15 (FGIC Insured)	1,645		1,739
			19,718
California - 10.2%
California Dept. of Wtr. Resources Pwr. Supply Rev.:
Series 2002 A, 5.5% 5/1/16 (Pre-Refunded to 5/1/12 @ 101) (g)	11,470		12,514
Series A, 5.25% 5/1/12 (MBIA Insured)	6,000		6,393
California Econ. Recovery Series 2004 A:
5.25% 1/1/11	6,500		6,839
5.25% 7/1/13	2,400		2,594
5.25% 7/1/13 (MBIA Insured)	2,900		3,133
California Gen. Oblig.:
5% 2/1/10	2,000		2,070
5% 2/1/11	4,000		4,179
5% 2/1/11	2,525		2,638
5% 10/1/11	1,650		1,740
5% 2/1/12	1,650		1,735
5% 3/1/12	15,000		15,787
5% 9/1/12	1,700		1,800
5% 10/1/12	12,600		13,349
5% 11/1/13	10,000		10,663
5.25% 9/1/10	18,550		19,520
5.25% 2/1/11	6,375		6,699
5.5% 3/1/11 (FGIC Insured)	3,210		3,398
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured)	3,525		3,731
6.5% 9/1/10	1,760		1,896
California Health Facilities Fing. Auth. Rev.:
(Catholic Healthcare West Proj.) Series 2008 H, 5.125% 7/1/22	2,850		2,855
(Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/10	1,000		1,031
California Infrastructure & Econ. Dev. Bank Rev. Series C, 3.9%, tender 12/1/11 (c)	2,100		2,146
California State Univ. Rev. 5% 11/1/13 (FSA Insured)	1,335		1,437
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
California - continued
California Statewide Communities Dev. Auth. Rev. (Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c)	$ 1,400		$ 1,409
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.:
Series A1, 5% 6/1/12	2,570		2,567
Series B:
5.5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (g)	2,000		2,153
5.625% 6/1/38 (Pre-Refunded to 6/1/13 @ 100) (g)	3,030		3,278
Los Angeles Unified School District Series E:
5% 7/1/11	6,075		6,392
5.5% 7/1/14 (MBIA Insured)	4,400		4,702
Northern California Gas Auth. #1 Gas Proj. Rev. Series 2007 A, 5% 7/1/11	2,200		2,218
Poway Unified School District Pub. Fing. Auth. Lease Rev.:
Cap. Appreciation 0%, tender 6/1/10 (FSA Insured) (c)	4,700		4,392
Series 2008 B, 0%, tender 12/1/14 (FSA Insured) (c)	7,235		5,518
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured)	3,600		3,113
Sulphur Springs Union School District Ctfs. of Prtn. 0%, tender 3/1/11 (AMBAC Insured) (c)	2,685		2,445
Univ. of California Revs.:
(UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (Escrowed to Maturity) (g)(h)	8,433		8,690
Series K, 5% 5/15/10	4,955		5,174
Western Placer Unified School District Ctfs. of Prtn. (School Facilities Proj.) Series B, 3.625%, tender 12/1/09 (FSA Insured) (c)	3,170		3,205
			183,403
Colorado - 0.3%
Colorado Health Facilities Auth. Rev.:
(Adventist Health Sys. - Sunbelt Proj.):
Series E, 5% 11/15/11	2,230		2,318
Series F, 5% 11/15/12	1,225		1,279
(Volunteers of America Care Proj.) Series A, 5% 7/1/10	615		614
Denver City & County Arpt. Rev. Series A, 5.625% 11/15/12 (FGIC Insured) (f)	2,000		2,049
			6,260
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Connecticut - 1.9%
Connecticut Gen. Oblig.:
Series 2001 D, 5.125% 11/15/18 (Pre-Refunded to 11/15/11 @ 100) (g)	$ 5,000		$ 5,282
Series F, 5% 12/1/11	23,100		24,464
Connecticut Spl. Tax Oblig. Trans. Infrastructure Rev. Series 1998 A, 5.5% 10/1/13 (FGIC Insured)	4,300		4,681
			34,427
District Of Columbia - 0.3%
District of Columbia Gen. Oblig. Series B, 0% 6/1/12 (MBIA Insured)	3,600		3,076
District of Columbia Rev. (Medlantic/Helix Proj.) Series 1998 C:
4% 8/15/09 (FSA Insured)	1,100		1,121
5% 8/15/15 (FSA Insured)	1,500		1,600
			5,797
Florida - 4.7%
Brevard County School Board Ctfs. of Prtn. Series A, 5.5% 7/1/09 (AMBAC Insured)	2,775		2,869
Broward County School Board Ctfs. of Prtn. Series 2008 A, 5% 7/1/15 (FSA Insured)	5,495		5,824
Citizens Property Ins. Corp. Series 2007 A, 5% 3/1/11 (MBIA Insured)	4,025		4,149
Florida Gen. Oblig. (Dept. of Trans. Right-of-Way and Bridge Construction Proj.) Series 2005 B, 6.375% 7/1/13	8,020		9,033
Highlands County Health Facilities Auth. Rev.: (Adventist Health Sys./Sunbelt, Inc. Prog.):
Series 2002, 3.95%, tender 9/1/12 (c)	7,550		7,498
Series 2006 G:
5% 11/15/08	420		422
5% 11/15/09	435		442
5% 11/15/10	400		413
5% 11/15/11	700		728
Series A, 5% 11/15/10	1,000		1,034
Series B, 5% 11/15/08	800		804
Series I, 5%, tender 11/16/09 (c)	4,700		4,769
ARS (Adventist Health Sys./Sunbelt, Inc. Prog.) Series 1999, 3.211%, tender 7/2/08 (FGIC Insured) (c)	2,200		2,081
Hillsborough County Indl. Dev. (H Lee Moffitt Cancer Ctr. Proj.) Series A, 5% 7/1/12	1,310		1,360
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Florida - continued
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.):
Series 2007 B, 5.15%, tender 9/1/13 (c)	$ 1,750		$ 1,739
5%, tender 3/15/12 (AMBAC Insured) (c)	1,500		1,483
Lakeland Hosp. Sys. Rev. (Reg'l. Health Systems Proj.) 5% 11/15/11	2,545		2,641
Lee County Solid Waste Sys. Rev. 5.25% 10/1/09 (MBIA Insured) (f)	1,000		1,020
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured)	1,980		2,134
Miami-Dade County Health Facilities Auth. Hosp. Rev. (Miami Children's Hosp. Proj.) Series A, 4.125%, tender 8/1/11 (c)	2,000		1,973
Miami-Dade County School Board Ctfs. of Prtn. Series B, 5%, tender 5/1/11 (MBIA Insured) (c)	1,500		1,541
Orange County Health Facilities Auth. Rev. (Orlando Reg'l. Health Care Sys. Proj.) Series 2008 A, 5% 11/1/15 (FSA Insured)	1,825		1,935
Palm Beach County School Board Ctfs. of Prtn. Series A, 6% 8/1/22 (Pre-Refunded to 8/1/10 @ 101) (g)	7,020		7,525
Polk County Cap. Impt. Rev.:
Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c)	9,000		9,517
5.5% 12/1/11 (FGIC Insured)	3,470		3,703
Polk County School District Sales Tax Rev. 5% 10/1/12 (FSA Insured)	6,080		6,451
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001, 3%, tender 10/1/09, LOC SunTrust Banks, Inc. (c)	1,000		1,002
			84,090
Georgia - 3.4%
Carroll County School District 5% 4/1/11	8,000		8,382
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1992 B, 8.25% 1/1/11 (MBIA Insured)	4,105		4,595
Henry County School District Series A, 5% 4/1/10	26,475		27,523
Main Street Natural Gas, Inc. Georgia Gas Proj. Rev. Series A, 5% 9/15/12	4,000		3,924
Monroe County Dev. Auth. Poll. Cont. Rev.:
(Georgia Pwr. Co. Plant Scherer Proj.) First Series, 4.5%, tender 4/1/11 (c)	5,200		5,267
(Georgia Pwr. Co. Proj.) Series 2007 A, 4.75%, tender 4/1/11 (MBIA Insured) (c)	5,705		5,659
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Georgia - continued
Walton County:
5% 1/1/10 (FGIC Insured)	$ 2,000		$ 2,050
5% 1/1/11 (FGIC Insured)	3,000		3,123
			60,523
Hawaii - 0.4%
Hawaii Arpts. Sys. Rev. Series 2000 B, 8% 7/1/10 (FGIC Insured) (f)	3,850		4,082
Hawaii Gen. Oblig. Series CU:
5.75% 10/1/11 (MBIA Insured)	3,040		3,223
5.75% 10/1/11 (Pre-Refunded to 10/1/10 @ 100) (g)	170		181
			7,486
Illinois - 7.9%
Chicago Board of Ed. Series 1997, 6.75% 12/1/10 (AMBAC Insured)	4,160		4,538
Chicago Gen. Oblig. Series A, 5.25% 1/1/12 (FSA Insured)	1,000		1,063
Chicago Midway Arpt. Rev. Series B:
5% 1/1/10 (AMBAC Insured)	1,225		1,252
5% 1/1/11 (AMBAC Insured)	3,625		3,756
Chicago O'Hare Int'l. Arpt. Rev.:
Series A:
5% 1/1/12 (FSA Insured)	3,500		3,663
5% 1/1/12 (MBIA Insured)	1,165		1,217
5% 1/1/13 (FSA Insured)	4,000		4,202
Series 1999, 5.5% 1/1/10 (AMBAC Insured) (f)	2,900		2,986
Chicago Park District:
Series B, 5% 1/1/11 (AMBAC Insured)	5,750		5,996
Series C, 5% 1/1/11 (AMBAC Insured)	2,515		2,623
Chicago Transit Auth. Cap. Grant Receipts Rev. (Fed. Transit Administration Section 5307 Formula Funds Proj.) Series A, 5.25% 6/1/10 (AMBAC Insured)	4,835		5,042
Granite City Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.875%, tender 5/3/10 (c)(f)	5,500		5,465
Hodgkins Tax Increment Rev. 5% 1/1/09	1,805		1,810
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) Series 2004 C, 5.5% 10/1/10	1,900		1,990
Illinois Edl. Facilities Auth. Revs.:
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c)	12,800		12,812
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Illinois - continued
Illinois Edl. Facilities Auth. Revs.: - continued
(Field Museum of Natural History Proj.) 4.05%, tender 11/1/11 (c)	$ 3,250		$ 3,283
(Univ. of Chicago Proj.):
Series A, 5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (g)	2,640		2,822
4.05%, tender 7/1/09 (c)	7,000		7,118
Illinois Fin. Auth. Rev.:
(DePaul Univ. Proj.) Series A:
5% 10/1/08	1,000		1,007
5% 10/1/11	1,450		1,506
(Rush Univ. Med. Ctr. Proj.) Series B:
5% 11/1/15 (MBIA Insured)	3,075		3,199
5% 11/1/16 (MBIA Insured)	1,700		1,763
Illinois Gen. Oblig.:
First Series 2001, 5.25% 5/1/11 (FSA Insured)	1,515		1,603
First Series:
5.375% 7/1/11 (MBIA Insured)	6,745		7,165
5.5% 8/1/10	1,495		1,575
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (g)	7,075		7,417
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (g)	1,000		1,053
Illinois Health Facilities Auth. Rev.:
(Delnor Hosp. Proj.) Series A:
5% 5/15/15 (FSA Insured)	2,250		2,356
5% 5/15/16 (FSA Insured)	2,325		2,433
(Edward Hosp. Obligated Group Proj.) Series B, 5.125% 2/15/25 (Pre-Refunded to 2/15/11 @ 101) (g)	8,500		9,010
Kane & DeKalb Counties Cmnty. Unit School District #301 0% 12/1/10 (AMBAC Insured)	2,000		1,843
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 (FSA Insured)	2,270		2,432
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) (g)	1,600		1,728
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11	2,365		2,470
Madison County Cmnty. United School District #007 Series A, 5% 12/1/11 (FSA Insured)	2,965		3,127
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Illinois - continued
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev.:
(McCormick Place Expansion Proj.) Series A, 0% 12/15/13 (MBIA Insured)	$ 2,725		$ 2,175
Series 2002, 0% 6/15/10 (Escrowed to Maturity) (g)	5,000		4,697
Quincy Hosp. Rev. (Blessing Hosp. Proj.) 5% 11/15/10	1,285		1,326
Rosemont Gen. Oblig. Series A, 0% 12/1/11 (FGIC Insured)	3,695		3,252
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Proj.) 5% 8/15/11 (AMBAC Insured)	1,360		1,428
Univ. of Illinois Univ. Revs. (Auxiliary Facilities Sys. Proj.) Series A, 5% 4/1/11 (MBIA Insured)	5,050		5,292
			141,495
Indiana - 3.0%
Carmel High School Bldg. Corp. 5% 1/10/11 (FSA Insured)	1,000		1,046
Ctr. Grove 2000 Bldg. Corp.:
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g)	1,785		1,909
5.5% 7/15/18 (Pre-Refunded to 7/15/11 @ 100) (g)	1,885		2,016
Hamilton Southeastern Consolidated School Bldg. Corp.:
Series A:
5% 1/10/10 (FSA Insured)	1,750		1,809
5.25% 7/10/11 (FSA Insured)	2,295		2,430
5.25% 1/10/12 (FSA Insured)	1,355		1,439
5% 1/15/10 (FSA Insured)	1,835		1,897
5% 1/15/11 (FSA Insured)	1,910		1,995
5% 1/15/12 (FSA Insured)	1,990		2,098
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g)	1,855		1,983
Indiana Fin. Auth. Rev. (Ascension Health Proj.) Series 2008 E7, 3.5%, tender 12/15/09 (c)	5,000		5,005
Indiana Health Facility Fing. Auth. Rev. (Ascension Health Cr. Group Proj.) Series 2005 A3, 5%, tender 7/1/11 (c)	4,100		4,236
Indiana Univ. Student Fee Revs. Series H, 0% 8/1/09 (AMBAC Insured)	3,875		3,771
Indianapolis Local Pub. Impt. Bond Bank (Wtrwks. Proj.) Series A, 5.5% 7/1/16 (Pre-Refunded to 7/1/12 @ 100) (g)	5,000		5,409
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured)	1,405		1,446
Logansport High School Bldg. Corp.:
5.25% 1/15/11 (MBIA Insured)	1,000		1,048
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Indiana - continued
Logansport High School Bldg. Corp.: - continued
5.25% 7/15/11 (MBIA Insured)	$ 1,020		$ 1,077
5.25% 1/15/12 (MBIA Insured)	1,045		1,105
5.25% 7/15/12 (MBIA Insured)	1,075		1,143
Mount Vernon of Hancock County Multi-School Corp. Series B:
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g)	1,605		1,716
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g)	1,695		1,812
Muncie School Bldg. Corp. 5.25% 7/10/12 (MBIA Insured)	1,585		1,691
New Albany Floyd County Independent School Bldg. Corp. 5% 1/15/11 (FSA Insured)	1,000		1,046
Rockport Poll. Cont. Rev. (AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (c)	1,600		1,639
West Clark 2000 School Bldg. Corp.:
5.25% 1/15/11 (MBIA Insured)	1,065		1,118
5.25% 7/15/11 (MBIA Insured)	1,125		1,190
5.25% 1/15/12 (MBIA Insured)	1,150		1,218
			54,292
Kansas - 0.2%
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L:
5.25% 11/15/10	545		567
5.25% 11/15/12	680		711
Olathe Health Facilities Rev. (Olathe Med. Ctr. Proj.) Series 2008 A, 4.125%, tender 3/1/13 (c)	1,600		1,598
			2,876
Kentucky - 0.1%
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (f)	1,185		1,204
Louisiana - 0.4%
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. Series B, 5% 2/1/12 (AMBAC Insured)	1,000		1,052
Ernest N. Morial-New Orleans Exhibit Hall Auth. Spl. Tax Series A, 5.25% 7/15/11 (Escrowed to Maturity) (g)	2,060		2,185
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Louisiana - continued
Louisiana Military Dept. Custody Receipts 5% 8/1/10	$ 1,530		$ 1,584
Louisiana Offshore Term. Auth. Deepwater Port Rev. (LOOP LLC Proj.) Series 2003 D, 4%, tender 9/1/08 (c)	2,700		2,707
			7,528
Maryland - 2.2%
Baltimore Proj. Rev. (Wtr. Projs.) Series 2007 D:
5% 7/1/10 (AMBAC Insured)	690		719
5% 7/1/11 (AMBAC Insured)	1,985		2,088
Howard County Retirement Cmnty. Rev. (Vantage House Proj.) Series A, 4.5% 4/1/09	405		403
Maryland Gen. Oblig. (State & Local Facilities Ln. Prog.):
First Series 2005 B, 5.25% 2/15/12	20,000		21,396
First Series 2008, 5% 3/1/12	10,000		10,617
Maryland Health & Higher Edl. Facilities Auth. Rev. (Johns Hopkins Health Sys. Obligated Group Proj.) Series 2008 B, 5%, tender 5/15/15 (c)	2,225		2,311
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured)	1,535		1,601
			39,135
Massachusetts - 4.0%
Massachusetts Dept. of Agricultural Resources Higher Ed. Rev. Series A, 5% 1/1/11	1,000		1,022
Massachusetts Fed. Hwy.:
Series 2000 A, 5.75% 6/15/13	3,000		3,201
Series B, 5.125% 12/15/14 (Pre-Refunded to 12/15/08 @ 101) (g)	2,775		2,831
Massachusetts Gen. Oblig.:
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (g)	2,570		2,685
Series 2000 A, 6% 2/1/10	2,500		2,629
Series 2001 A, 5.5% 1/1/11	5,000		5,286
Series 2002 C, 5.5% 11/1/10 (FSA Insured)	10,000		10,606
Series 2003 C, 5.5% 10/1/10 (MBIA Insured)	1,130		1,195
Series C, 5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (g)	2,495		2,658
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series A, 5.5% 1/1/12 (AMBAC Insured) (f)	1,000		984
Massachusetts Spl. Oblig. Rev. (Fed. Hwy. Grant Anticipation Note Prog.) Series A, 5% 12/15/12 (FSA Insured)	3,300		3,508
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Massachusetts - continued
Massachusetts Wtr. Resources Auth. Wtr. & Swr. Rev.:
Series 2000 A:
5.75% 8/1/30 (FGIC Insured) (Pre-Refunded to 8/1/10 @ 101) (g)	$ 19,000		$ 20,271
5.75% 8/1/39 (Pre-Refunded to 8/1/10 @ 101) (g)	5,000		5,334
Series B, 5.2% 8/1/22 (Pre-Refunded to 8/1/11 @ 101) (g)	8,350		8,901
			71,111
Michigan - 2.7%
Allegan Pub. School District 5% 5/1/12 (MBIA Insured)	1,590		1,675
Chelsea School District 5% 5/1/13 (MBIA Insured)	1,750		1,854
Clarkston Cmnty. Schools 5% 5/1/12 (FSA Insured)	3,000		3,182
Detroit City School District Series A, 5.5% 5/1/11 (FSA Insured)	1,200		1,278
Detroit Swr. Disp. Rev.:
Series A, 5.75% 7/1/26 (Pre-Refunded to 1/1/10 @ 101) (g)	2,000		2,107
2.407% 7/1/32 (FSA Insured) (c)	4,105		3,562
DeWitt Pub. Schools 5% 5/1/10 (MBIA Insured)	1,280		1,320
Grand Haven Area Pub. Schools 5% 5/1/12 (FSA Insured)	2,965		3,123
Grand Rapids Cmnty. College:
5% 5/1/12 (FSA Insured)	1,305		1,384
5% 5/1/13 (FSA Insured)	1,305		1,394
Kent Hosp. Fin. Auth. Hosp. Facilities Rev. (Spectrum Health Proj.) Series A, 5.25%, tender 1/15/14 (c)	2,000		2,099
Lincoln Consolidated School District 5% 5/1/12 (FSA Insured)	1,485		1,570
Michigan Bldg. Auth. Rev. (Facilities Prog.) Series I:
5.5% 10/15/09	2,705		2,806
5.5% 10/15/13	2,200		2,311
Michigan Gen. Oblig. (Envir. Protection Prog.) 6.25% 11/1/12	2,735		2,901
Michigan Hosp. Fin. Auth. Rev. (Oakwood Hosp. Proj.) Series A, 5% 7/15/11	2,700		2,774
Plymouth-Canton Cmnty. School District 5% 5/1/12 (FSA Insured)	4,000		4,242
Pontiac Tax Increment Fin. Auth. Series 2002, 6.25% 6/1/22 (Pre-Refunded to 6/1/12 @ 101) (g)	2,260		2,505
Royal Oak City School District 5% 5/1/12	2,000		2,115
Troy School District 5% 5/1/11 (MBIA Insured)	1,000		1,049
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Michigan - continued
Wayne County Cmnty. College (College Facilities Impt. Proj.) 5.25% 7/1/09 (FGIC Insured)	$ 1,220		$ 1,254
Wayne-Westland Cmnty. Schools 5% 5/1/10 (FSA Insured)	1,225		1,274
			47,779
Minnesota - 0.3%
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (HealthPartners Obligated Group Proj.):
5.25% 12/1/08	1,200		1,206
5.25% 12/1/10	500		511
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev. Series A, 5% 1/1/13 (f)	1,000		1,012
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Healthpartners Oblig. Group Proj.):
5% 5/15/09	250		252
5% 5/15/10	200		203
5% 5/15/11	300		305
Saint Paul Port Auth. Lease Rev. (HealthEast Midway Campus Proj.) Series 2003 A, 5% 5/1/10	330		334
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured)	940		984
			4,807
Mississippi - 0.4%
Mississippi Bus. Fin. Corp. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.4%, tender 3/1/11 (c)(f)	1,100		1,083
Mississippi Dev. Bank Spl. Oblig. (Marshall County Correctional Facility Proj.) Series C, 5% 8/1/11	1,050		1,081
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (f)	1,190		1,195
Mississippi Hosp. Equip. & Facilities Auth.:
(Mississippi Baptist Med. Ctr. Proj.) Series 2007 A:
5% 8/15/09	1,000		1,025
5% 8/15/11	1,000		1,031
(South Central Reg'l. Med. Ctr. Proj.) 5% 12/1/10	1,240		1,258
			6,673
Missouri - 0.8%
Bi-State Dev. Agcy. Missouri Illinois Metropolitan District Rev. 3.95%, tender 10/1/09, LOC JPMorgan Chase Bank (c)	6,600		6,647
Fenton Tax Increment Rev. (Gravois Bluffs Redev. Proj.) 5% 4/1/11	1,430		1,477
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Missouri - continued
Kansas City School District Bldg. Corp. Rev. (School District Elementary School Proj.) Series B, 5% 2/1/11 (FGIC Insured)	$ 1,850		$ 1,893
Lees Summit Indl. Dev. Auth. Sr. Living Facilities Rev. (John Knox Village Proj.) Series A, 5% 8/15/11	1,485		1,476
Saint Louis Arpt. Rev. Series 2003 A, 5.25% 7/1/11 (FSA Insured)	1,000		1,052
Saint Louis County Indl. Dev. Auth. Sr. Living Facilities Rev. (Friendship Village West County Proj.) Series A, 5% 9/1/11	1,000		1,001
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) (g)	1,050		1,133
			14,679
Montana - 0.3%
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (c)	5,675		5,715
Nebraska - 0.6%
Central Plains Energy Proj. Rev. (Nebraska Gas Proj.) Series A, 5% 12/1/11	6,500		6,518
Nebraska Pub. Pwr. District Rev. Series B, 5% 1/1/12 (FSA Insured)	3,500		3,698
			10,216
Nevada - 2.3%
Clark County Arpt. Rev.:
Series 2003 C:
5% 7/1/09 (AMBAC Insured) (f)	2,700		2,757
5% 7/1/10 (AMBAC Insured) (f)	1,225		1,243
5% 7/1/11 (AMBAC Insured) (f)	1,790		1,811
Series 2008 E:
5% 7/1/14	2,905		3,058
5% 7/1/15	3,500		3,681
Clark County Hwy. Impt. Rev. (Motor Vehicle Fuel Tax) 5% 7/1/11 (AMBAC Insured)	3,230		3,389
Clark County School District:
(Bldg. Proj.) Series 2008 A, 5% 6/15/12	10,000		10,571
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (g)	1,600		1,688
Series C, 5% 6/15/10 (MBIA Insured)	1,075		1,118
Series F, 5.375% 6/15/11 (FSA Insured)	4,090		4,350
Henderson Health Care Facilities Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08	1,100		1,100
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Nevada - continued
Lyon Co. School District Gen. Oblig. 5% 6/1/09	$ 695		$ 715
Nevada Gen. Oblig. Series A, 5% 4/1/11 (FSA Insured)	4,015		4,221
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured)	2,410		2,502
			42,204
New Hampshire - 0.2%
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev.:
(United Illumination Co.) Series A, 3.65%, tender 2/1/10 (AMBAC Insured) (c)(f)	2,500		2,509
3.5%, tender 2/1/09 (c)(f)	2,000		2,009
			4,518
New Jersey - 5.5%
Camden County Impt. Auth. Health Care Redev. Rev. (Cooper Health Sys. Obligated Group Proj.) Series B, 5.25% 2/15/09	1,250		1,260
Garden State Preservation Trust Open Space & Farmland Preservation Series B, 6.375% 11/1/11 (MBIA Insured)	7,470		8,215
New Jersey Econ. Dev. Auth. School Facilities Construction Rev.:
Series 2008 J4, 5%, tender 9/1/14 (FSA Insured) (c)	7,000		7,351
Series 2008 W, 5% 3/1/15	10,000		10,597
New Jersey Gen. Oblig. Series H, 5.25% 7/1/12 (FGIC Insured)	5,000		5,351
New Jersey Tpk. Auth. Tpk. Rev. Series A, 6% 1/1/11 (MBIA Insured)	21,785		23,118
New Jersey Trans. Trust Fund Auth.:
Series B:
5.25% 12/15/10 (FGIC Insured)	4,550		4,777
6.5% 6/15/11 (MBIA Insured)	5,000		5,429
Series C, 5.5% 12/15/10 (FSA Insured)	25,000		26,484
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (g)	7,000		7,280
			99,862
New Jersey/Pennsylvania - 0.3%
Delaware River Joint Toll Bridge Commission Pennsylvania-New Jersey Bridge Rev. 5% 7/1/09	5,170		5,317
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New Mexico - 0.2%
Albuquerque Joint Wtr. & Swr. Sys. Rev. Series A, 5.25% 7/1/11	$ 1,135		$ 1,204
Farmington Poll. Cont. Rev. Series B, 3.55%, tender 4/1/10 (FGIC Insured) (c)	1,900		1,893
			3,097
New York - 17.0%
Albany Indl. Dev. Agcy. Civic Facility Rev. (St. Peters Hosp. Proj.) Series 2008 A, 5.5% 11/15/12	1,000		1,050
Grand Central District Mgmt. Assoc., Inc.:
5% 1/1/10	1,200		1,239
5% 1/1/12	1,175		1,238
Long Island Pwr. Auth. Elec. Sys. Rev. Series F, 5% 5/1/11 (MBIA Insured)	10,000		10,460
New York City Gen. Oblig.:
Series 1996 B, 6.5% 8/15/09	3,425		3,592
Series 1997 H, 6% 8/1/12 (FGIC Insured)	1,300		1,420
Series 2000 A, 6.5% 5/15/11	155		166
Series 2003 F, 5.5% 12/15/11	7,840		8,385
Series 2004 G, 5% 8/1/09	8,000		8,250
Series 2005 C, 5% 8/1/12	19,770		20,849
Series 2005 D, 5% 8/1/12	4,925		5,194
Series 2005 F1, 5% 9/1/15	3,560		3,800
Series 2005 G, 5.625% 8/1/13 (MBIA Insured)	5,075		5,455
Series 2005 K:
5% 8/1/11	6,545		6,862
5% 8/1/12	4,360		4,598
Series 2005 O, 5% 6/1/12	7,525		7,926
Series A, 5.25% 11/1/14 (MBIA Insured)	600		634
Series B, 5.75% 8/1/14	1,000		1,075
Series E, 5% 8/1/12	5,000		5,273
Series G, 5.25% 8/1/14 (AMBAC Insured)	1,000		1,046
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev. 6% 6/15/33 (MBIA Insured) (Pre-Refunded to 6/15/10 @ 101) (g)	10,000		10,645
New York City Transitional Fin. Auth. Rev.:
Series A:
5.5% 11/1/26 (a)	3,500		3,679
6% 11/1/28 (a)	44,300		47,239
Series B:
5% 11/1/11	13,680		14,495
5.25% 2/1/29 (a)	3,100		3,209
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New York - continued
New York Counties Tobacco Trust I Series B, 6.5% 6/1/35 (Pre-Refunded to 6/1/10 @ 101) (g)	$ 5,900		$ 6,367
New York Dorm. Auth. Revs.:
(City Univ. Sys. Consolidation Proj.):
Series A:
5.75% 7/1/13	3,500		3,728
5.75% 7/1/13 (AMBAC Insured)	1,000		1,062
Series C, 7.5% 7/1/10	12,415		12,963
Series B, 5.25%, tender 5/15/12 (c)	13,000		13,690
New York Local Govt. Assistance Corp. Series A, 5% 4/1/11	20,000		21,024
New York Metropolitan Trans. Auth. Rev.:
Series 2005 C:
5% 11/15/10	1,940		2,027
5% 11/15/11	2,750		2,891
Series A, 5%, tender 11/15/12 (c)	7,300		7,607
New York Thruway Auth. Second Gen. Hwy. & Bridge Trust Fund Series A, 5% 4/1/13	2,600		2,774
New York Thruway Auth. Svc. Contract Rev. 5.5% 4/1/11	10,000		10,572
New York Urban Dev. Corp. Rev. 5% 1/1/12	5,015		5,262
Niagara County Indl. Dev. Agcy. Solid Waste Disp. Rev. Series 2001 C, 5.625%, tender 11/15/14 (c)(f)	2,450		2,440
Tobacco Settlement Asset Securitization Corp. Series 1, 5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (g)	6,540		6,902
Tobacco Settlement Fing. Corp.:
Series 2004 B1, 5% 6/1/09	3,800		3,895
Series A1:
5% 6/1/10	1,775		1,836
5.25% 6/1/13	7,780		7,790
5.5% 6/1/14	3,965		4,030
5.5% 6/1/17	6,000		6,203
Series C1:
5.5% 6/1/15	1,300		1,334
5.5% 6/1/17	4,200		4,342
			306,518
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
New York & New Jersey - 0.3%
Port Auth. of New York & New Jersey 124th Series, 5% 8/1/13 (FGIC Insured) (f)	$ 1,200		$ 1,213
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (MBIA Insured) (f)	4,100		4,439
			5,652
North Carolina - 0.9%
Charlotte-Mecklenburg Hosp. Auth. Health Care Sys. Rev. Series A:
5% 1/15/10	250		257
5% 1/15/11	750		781
5% 1/15/12	400		421
Nash Health Care Sys. Health Care Facilities Rev.:
5% 11/1/13 (FSA Insured)	1,500		1,571
5% 11/1/15 (FSA Insured)	1,600		1,676
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.:
Series A, 5.5% 1/1/10	3,000		3,080
Series D, 5.375% 1/1/10	3,730		3,823
North Carolina Grant Anticipation Rev. 5% 3/1/11	5,000		5,241
			16,850
North Dakota - 0.3%
Grand Forks Health Care Sys. Rev. (Altru Health Sys. Proj.):
5% 12/1/11 (Assured Guaranty Corp. Insured)	1,575		1,632
5% 12/1/15 (Assured Guaranty Corp. Insured)	1,825		1,901
Ward County Health Care Facility Rev. 5% 7/1/10	1,595		1,610
			5,143
Ohio - 1.8%
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A, 5% 1/1/11	1,000		1,025
American Muni. Pwr. Electricity Purchase Rev. Series A, 5% 2/1/11	20,000		20,138
Cleveland Pub. Pwr. Sys. Rev.:
Series A, 0% 11/15/09 (MBIA Insured)	1,200		1,150
0% 11/15/09 (Escrowed to Maturity) (g)	1,050		1,012
Montgomery County Rev. (Catholic Health Initiatives Proj.) Series C2, 4.1%, tender 11/10/11 (c)	2,700		2,752
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Ohio - continued
Ohio Gen. Oblig. (Higher Ed. Proj.) Series 2005 C, 5% 8/1/13	$ 4,495		$ 4,815
Univ. of Cincinnati Gen. Receipts Series A, 5.5% 6/1/09 (FGIC Insured)	2,000		2,052
			32,944
Oklahoma - 0.7%
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (g)	1,000		883
Grand River Dam Auth. Rev. 6.25% 6/1/11 (AMBAC Insured)	8,940		9,640
Norman Reg'l. Hosp. Auth. Hosp. Rev. 5% 9/1/12 (Radian Asset Assurance, Inc. Insured)	1,035		1,050
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) 5% 2/15/13	1,050		1,102
			12,675
Oregon - 0.5%
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured)	1,210		1,259
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B:
5% 5/1/09 (FSA Insured)	600		615
5% 5/1/11 (FSA Insured)	1,000		1,051
Tri-County Metropolitan Trans. District Rev. 5% 5/1/11 (MBIA Insured)	5,000		5,243
			8,168
Pennsylvania - 4.0%
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (MBIA Insured) (f)	1,300		1,338
Allegheny County Hosp. Dev. Auth. Rev. (Pittsburgh Med. Ctr. Proj.):
Series A, 5% 9/1/12	6,615		6,933
Series B, 5% 6/15/14	1,385		1,448
Allegheny County Sanitation Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured)	1,495		1,606
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.) Series B:
5% 12/15/09	2,565		2,581
5% 12/15/11	2,835		2,845
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(f)	10,000		9,950
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Pennsylvania - continued
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (c)(f)	$ 2,100		$ 2,085
Pennsylvania Higher Edl. Facilities Auth. Rev. (UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09	1,750		1,785
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured)	2,750		2,875
Philadelphia Gen. Oblig.:
Series 2007 A:
5% 8/1/11 (FSA Insured)	3,570		3,717
5% 8/1/12 (FSA Insured)	5,000		5,232
Series A:
5% 12/15/14 (FSA Insured)	5,370		5,729
5% 12/15/15 (FSA Insured)	5,000		5,346
5% 12/15/16 (FSA Insured)	7,275		7,776
Philadelphia Muni. Auth. Rev. Series B, 5.25% 11/15/11 (FSA Insured)	3,400		3,615
Philadelphia School District:
Series 2005 D, 5.25% 6/1/12 (FSA Insured)	1,465		1,563
Series B, 5% 4/1/11 (AMBAC Insured)	2,160		2,237
Pittsburgh School District Series A, 5% 9/1/09 (MBIA Insured)	1,600		1,645
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) (g)	2,355		2,030
			72,336
Puerto Rico - 1.2%
Puerto Rico Convention Ctr. District Auth. Hotel Occupancy Tax Rev. Series 2006 A, 5% 7/1/10	2,000		2,043
Puerto Rico Govt. Dev. Bank Series B:
5% 12/1/10	8,000		8,208
5% 12/1/12	1,000		1,024
Univ. of Puerto Rico:
Series P, 5% 6/1/11	5,760		5,878
Series Q, 5% 6/1/11	4,825		4,924
			22,077
Rhode Island - 0.1%
Providence Spl. Oblig. Series 2005 E:
5% 6/1/09 (Radian Asset Assurance, Inc. Insured)	1,315		1,346
5% 6/1/10 (Radian Asset Assurance, Inc. Insured)	1,180		1,214
			2,560
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
South Carolina - 0.7%
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A, 5% 8/15/08	$ 1,690		$ 1,695
Greenville County Pub. Facilities Corp. Ctfs. of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 (AMBAC Insured)	1,450		1,504
Greenville County School District Installment Purp. Rev. 5% 12/1/10	1,455		1,524
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5% 12/1/09	550		568
South Carolina Pub. Svc. Auth. Rev.:
Series 2005 B, 5% 1/1/10 (MBIA Insured)	3,000		3,098
Series A, 5.5% 1/1/11 (MBIA Insured)	3,000		3,130
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured)	1,000		1,030
			12,549
Tennessee - 0.8%
Clarksville Natural Gas Acquisition Corp. Gas Rev. 5% 12/15/09	7,500		7,551
Elizabethton Health & Edl. Facilities Board Rev. (First Mtg. Prog.) 6% 7/1/11 (Escrowed to Maturity) (g)	2,005		2,174
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured)	2,000		2,066
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A, 4.5% 9/1/09 (MBIA Insured)	1,685		1,713
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured)	1,200		1,213
			14,717
Texas - 11.0%
Alief Independent School District Series 2004 B, 5% 2/15/10	1,500		1,555
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B:
6% 1/1/12	500		512
6% 1/1/13	1,270		1,300
6% 1/1/14	1,420		1,451
Austin Elec. Util. Sys. Rev.:
5% 11/15/10 (FSA Insured)	3,000		3,148
5% 11/15/11 (FSA Insured)	4,000		4,228
Austin Util. Sys. Rev. Series 1992 A:
0% 11/15/09 (MBIA Insured)	5,130		4,919
0% 11/15/10 (MBIA Insured)	5,300		4,889
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Bexar County Gen. Oblig. Series A, 5% 6/15/10 (FSA Insured)	$ 1,000		$ 1,042
Birdville Independent School District:
0% 2/15/11	5,000		4,565
5% 2/15/10	1,300		1,348
Brownsville Independent School District 5% 8/15/11	1,430		1,507
Brownsville Util. Sys. Rev. Series A, 5% 9/1/15 (FSA Insured)	2,665		2,871
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured)	1,500		1,600
College Station Independent School District 5% 2/15/10	1,000		1,037
Denton County Gen. Oblig. 5% 7/15/11 (FSA Insured)	3,065		3,226
Fort Bend Independent School District 5%, tender 8/15/09 (c)	5,000		5,153
Fort Worth Independent School District 5% 2/15/12	1,500		1,584
Frisco Gen. Oblig. Series 2003 A, 5% 2/15/10 (FSA Insured)	1,710		1,772
Harris County Health Facilities Dev. Corp. Rev. (Saint Luke's Episcopal Hosp. Proj.) Series 2001 A, 5.5% 2/15/09	3,710		3,790
Houston Cmnty. College Sys. Rev.:
5.25% 4/15/11 (FSA Insured)	3,030		3,200
5.25% 4/15/12 (FSA Insured)	2,000		2,135
Houston Gen. Oblig. Series A:
5% 3/1/12 (MBIA Insured)	3,575		3,769
5% 3/1/13 (MBIA Insured)	7,500		7,956
Houston Util. Sys. Rev.:
Series 2005 C1, 5%, tender 5/15/11 (AMBAC Insured) (c)	5,100		5,206
Series A:
5.25% 5/15/10 (MBIA Insured)	2,835		2,944
5.25% 11/15/11 (FSA Insured)	4,430		4,703
Katy Independent School District Series A, 5.25% 2/15/12	2,000		2,128
Lower Colorado River Auth. Rev. 5.25% 1/1/15 (Pre-Refunded to 1/1/11 @ 100) (g)	5,000		5,251
Lubbock Gen. Oblig.:
(Wtrwks. Sys. Surplus Proj.) 5% 2/15/11 (FSA Insured)	2,465		2,578
5% 2/15/10 (MBIA Insured)	1,845		1,907
Lubbock Health Facilities Dev. Corp. Rev. (Carillon, Inc. Proj.) Series A, 6.5% 7/1/29 (Pre-Refunded to 7/1/09 @ 102) (g)	4,800		5,117
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Magnolia Independent School District 8% 8/15/11 (FGIC Insured)	$ 1,210		$ 1,363
Montgomery County Gen. Oblig. Series B, 5%, tender 9/1/10 (FSA Insured) (c)	1,300		1,356
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C, 5%, tender 7/1/08 (c)(g)	45		45
Northside Independent School District Series A, 3.78%, tender 6/1/09 (c)	5,000		5,073
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series A, 5.5%, tender 11/1/11 (c)	1,000		939
San Angelo Wtrwks. & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured)	1,630		1,691
San Antonio Elec. & Gas Sys. Rev.:
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (g)	5,000		5,228
Series B:
0% 2/1/09 (Escrowed to Maturity) (g)	2,500		2,470
0% 2/1/10 (Escrowed to Maturity) (g)	14,000		13,351
San Antonio Muni. Drainage Util. Sys. Rev. 5.25% 2/1/12 (MBIA Insured)	1,545		1,639
San Antonio Wtr. Sys. Rev.:
5% 5/15/10 (FGIC Insured)	1,020		1,057
5% 5/15/12 (FGIC Insured)	7,000		7,363
Spring Branch Independent School District:
5.375% 2/1/14	1,090		1,143
5.375% 2/1/14 (Pre-Refunded to 2/1/11 @ 100) (g)	1,700		1,795
Tarrant County Cultural Ed. Facilities Fin. Corp. Retirement Facility Rev. (Buckner Retirement Svcs. Proj.) 5% 11/15/09	1,000		1,022
Tarrant County Health Facilities Dev. Corp. Hosp. Rev. ARS (Cook Children's Med. Ctr. Proj.) Series 2000 B, 2.739%, tender 7/7/08 (FSA Insured) (c)	625		612
Texas Gen. Oblig.:
(College Student Ln. Prog.) 5% 8/1/11 (f)	3,000		3,079
Series C, 0% 4/1/09 (Escrowed to Maturity) (g)	2,320		2,284
0% 10/1/13	6,500		5,289
Texas Pub. Fin. Auth. Bldg. Rev. 5% 2/1/11 (AMBAC Insured)	1,550		1,616
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Proj.) Series A, 5% 2/1/10 (AMBAC Insured)	1,055		1,090
Texas Tech Univ. Revs. Ninth Series, 5% 2/15/11 (AMBAC Insured)	1,250		1,304
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Texas - continued
Texas Trans. Commission State Hwy. Fund Rev. 5% 4/1/12	$ 4,000		$ 4,235
Texas Wtr. Dev. Board Rev. Series B, 5% 7/15/11	2,780		2,933
Travis County Gen. Oblig. 5.25% 3/1/12	4,125		4,394
Univ. of Texas Board of Regents Sys. Rev.:
Series 2003 B, 5% 8/15/33 (Pre-Refunded to 8/15/13 @ 100) (g)	15,000		15,844
Series B, 5.25% 8/15/11	5,025		5,342
Wichita Falls Independent School District 0% 2/1/10	2,325		2,218
Ysleta Independent School District 0% 8/15/09	4,065		3,966
			198,132
Utah - 1.1%
Salt Lake County Wtr. Conservancy District Rev. Series A:
0% 10/1/11 (AMBAC Insured)	3,800		3,364
0% 10/1/12 (AMBAC Insured)	3,800		3,209
0% 10/1/13 (AMBAC Insured)	3,760		3,028
Utah Bldg. Ownership Auth. Lease Rev. (State Facilities Master Lease Prog.) Series A, 5% 5/15/11	1,700		1,785
Utah Gen. Oblig. Series 2006 B, 5.375% 7/1/10	7,475		7,861
			19,247
Vermont - 0.2%
Vermont Edl. & Health Bldg. Fin. Agcy. Rev. (Fletcher Allen Health Care Proj.) Series 2004 B:
3% 12/1/08 (FSA Insured)	1,000		1,004
4% 12/1/09 (FSA Insured)	1,000		1,020
5% 12/1/15 (FSA Insured)	2,225		2,342
			4,366
Virginia - 0.1%
Chesapeake Econ. Dev. Auth. Poll. Cont. Rev. (Elec. & Pwr. Co. Proj.) Series 2008 A, 3.6%, tender 2/1/13 (c)	1,800		1,756
Washington - 2.2%
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured)	1,190		1,245
Clark County Pub. Util. District #1 Elec. Rev.:
5% 1/1/11 (MBIA Insured)	1,680		1,751
5.25% 1/1/11 (FSA Insured)	1,935		2,033
King County School District #401 Highline Pub. Schools 5.5% 12/1/17 (FGIC Insured)	5,100		5,410
Municipal Bonds - continued
	Principal Amount (000s)		Value (000s)
Washington - continued
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured)	$ 1,740		$ 1,829
Pierce County Gen. Oblig. 5.75% 8/1/13 (Pre-Refunded to 8/1/10 @ 100) (g)	1,155		1,224
Port of Seattle Rev. Series D, 5.75% 11/1/15 (FGIC Insured) (f)	3,640		3,715
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.) 4.5% 12/1/09 (FGIC Insured)	1,000		1,019
Snohomish County School District #2, Everett 5% 6/1/10 (FSA Insured)	1,000		1,041
Vancouver Wtr. & Swr. Rev. 5.25% 6/1/11 (FSA Insured)	1,000		1,058
Washington Gen. Oblig. Series A:
5% 7/1/11 (FGIC Insured)	1,000		1,053
5.5% 7/1/11 (Pre-Refunded to 7/1/10 @ 100) (g)	3,500		3,683
5.625% 7/1/25 (Pre-Refunded to 7/1/10 @ 100) (g)	13,000		13,726
			38,787
Wisconsin - 0.8%
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured)	3,370		3,098
Wisconsin Gen. Oblig. Series 1, 5% 5/1/10 (MBIA Insured)	2,500		2,592
Wisconsin Health & Edl. Facilities Auth. Rev.:
(Marshfield Clinic Proj.):
Series 2006 A, 5% 2/15/13	875		893
Series B, 6.25% 2/15/10	1,015		1,050
(Wheaton Franciscan Healthcare Sys. Proj.):
Series 2002, 5.75% 8/15/11	1,000		1,034
Series 2003 A:
5% 8/15/09	1,765		1,802
5% 8/15/10	1,870		1,896
Series 2006 A, 5% 8/15/11	1,315		1,332
			13,697
TOTAL MUNICIPAL BONDS (Cost $1,785,631)		1,791,908

Money Market Funds - 0.0%
	Shares		Value (000s)
Fidelity Municipal Cash Central Fund, 1.68% (d)(e) (Cost $1)	900		$ 1
TOTAL INVESTMENT PORTFOLIO - 99.6% (Cost $1,785,632)			1,791,909
NET OTHER ASSETS - 0.4%			7,468
NET ASSETS - 100%		$ 1,799,377

Security Type Abbreviation

ARS - Auction Rate Security

Legend

(a) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

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

(d) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund.

(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

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

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

(h) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,690,000 or 0.5% of net assets.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost (000s)
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (Escrowed to Maturity)	3/6/02	$ 8,433

Other Information

The following is a summary of the inputs used, as of June 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
(Amounts in thousands)
Description	Total	Level 1	Level 2	Level 3
Investments in Securities	$ 1,791,909	$ 1	$ 1,789,215	$ 2,693

The following is a reconciliation of assets for which Level 3 inputs were used in determining value:

(Amounts in thousands)	Investments in Securities
Beginning Balance	$ -
Total Realized Gain (Loss)	-
Total Unrealized Gain (Loss)	-
Cost of Purchases	2,693
Proceeds of Sales	-
Amortization/Accretion	-
Transfer in/out of Level 3	-
Ending Balance	$ 2,693

The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period.

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

General Obligations	42.0%
Escrowed/Pre-Refunded	14.4%
Special Tax	10.5%
Electric Utilities	8.8%
Health Care	7.8%
Transportation	6.3%
Others* (individually less than 5%)	10.2%
	100.0%

*Includes cash equivalents and net other assets

Income Tax Information

At December 31, 2007, the fund had a capital loss carryforward of approximately $7,017,000 of which $699,000, $4,871,000 and $1,447,000 will expire on December 31, 2013, 2014 and 2015, 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 amounts)	June 30, 2008 (Unaudited)
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,785,631)	$ 1,791,908
Fidelity Central Funds (cost $1)	1
Total Investments (cost $1,785,632)		$ 1,791,909
Receivable for investments sold		1,493
Receivable for fund shares sold		5,770
Interest receivable		23,318
Prepaid expenses		2
Other receivables		207
Total assets		1,822,699
Liabilities
Payable to custodian bank	197
Payable for investments purchased Regular delivery	10,577
Delayed delivery	1,201
Payable for fund shares redeemed	8,205
Distributions payable	1,734
Accrued management fee	553
Distribution fees payable	16
Other affiliated payables	801
Other payables and accrued expenses	38
Total liabilities		23,322
Net Assets		$ 1,799,377
Net Assets consist of:
Paid in capital		$ 1,797,669
Distributions in excess of net investment income		(84)
Accumulated undistributed net realized gain (loss) on investments		(4,485)
Net unrealized appreciation (depreciation) on investments		6,277
Net Assets		$ 1,799,377

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

Semiannual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)	June 30, 2008 (Unaudited)
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($22,870 ÷ 2,218.45 shares)		$ 10.31
Maximum offering price per share (100/97.25 of $10.31)		$ 10.60
Class T: Net Asset Value and redemption price per share ($10,807 ÷ 1,049.97 shares)		$ 10.29
Maximum offering price per share (100/97.25 of $10.29)		$ 10.58
Class B: Net Asset Value and offering price per share ($1,341 ÷ 130.15 shares)A		$ 10.30
Class C: Net Asset Value and offering price per share ($10,167 ÷ 987.91 shares)A		$ 10.29
Short-Intermediate Municipal Income: Net Asset Value, offering price and redemption price per share ($1,741,767 ÷ 169,213.12 shares)		$ 10.29
Institutional Class: Net Asset Value, offering price and redemption price per share ($12,425 ÷ 1,206.50 shares)		$ 10.30

^A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

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

Semiannual Report

Statement of Operations

Amounts in thousands		Six months ended June 30, 2008 (Unaudited)
Investment Income
Interest		$ 31,552
Expenses
Management fee	$ 3,207
Transfer agent fees	794
Distribution fees	80
Accounting fees and expenses	163
Custodian fees and expenses	12
Independent trustees' compensation	4
Registration fees	94
Audit	23
Legal	2
Miscellaneous	7
Total expenses before reductions	4,386
Expense reductions	(234)	4,152
Net investment income		27,400
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	2,237
Swap agreements	295
Total net realized gain (loss)		2,532
Change in net unrealized appreciation (depreciation) on: Investment securities	(6,662)
Swap agreements	(341)
Total change in net unrealized appreciation (depreciation)		(7,003)
Net gain (loss)		(4,471)
Net increase (decrease) in net assets resulting from operations		$ 22,929

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, 2008 (Unaudited)	Year ended December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 27,400	$ 50,145
Net realized gain (loss)	2,532	(928)
Change in net unrealized appreciation (depreciation)	(7,003)	20,276
Net increase (decrease) in net assets resulting from operations	22,929	69,493
Distributions to shareholders from net investment income	(27,392)	(50,136)
Share transactions - net increase (decrease)	120,524	143,977
Redemption fees	51	16
Total increase (decrease) in net assets	116,112	163,350
Net Assets
Beginning of period	1,683,265	1,519,915
End of period (including distributions in excess of net investment income of $84 and distributions in excess of net investment income of $92, respectively)	$ 1,799,377	$ 1,683,265

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

Semiannual Report

Financial Highlights - Class A

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.33	$ 10.21	$ 10.21	$ 10.39	$ 10.50	$ 10.49
Income from Investment Operations
Net investment income E	.149	.302	.292	.268	.250	.115
Net realized and unrealized gain (loss)	(.020)	.118	(.001)	(.177)	(.090)	.071
Total from investment operations	.129	.420	.291	.091	.160	.186
Distributions from net investment income	(.149)	(.300)	(.291)	(.268)	(.251)	(.111)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.149)	(.300)	(.291)	(.271)	(.270)	(.176)
Redemption fees added to paid in capital E, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.31	$ 10.33	$ 10.21	$ 10.21	$ 10.39	$ 10.50
Total ReturnB, C, D	1.25%	4.19%	2.89%	.89%	1.55%	1.78%
Ratios to Average Net AssetsF,I
Expenses before reductions	.75%A	.71%	.65%	.65%	.65%	.65%A
Expenses net of fee waivers, if any	.75%A	.71%	.65%	.65%	.65%	.65%A
Expenses net of all reductions	.72%A	.64%	.56%	.58%	.64%	.64%A
Net investment income	2.89%A	2.95%	2.86%	2.61%	2.41%	2.52%A
Supplemental Data
Net assets, end of period (in millions)	$ 23	$ 12	$ 10	$ 14	$ 12	$ 9
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 23, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Class T

	Six months ended June 31, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.31	$ 10.19	$ 10.20	$ 10.37	$ 10.48	$ 10.49
Income from Investment Operations
Net investment income E	.149	.297	.281	.257	.238	.110
Net realized and unrealized gain (loss)	(.020)	.120	(.011)	(.167)	(.089)	.050
Total from investment operations	.129	.417	.270	.090	.149	.160
Distributions from net investment income	(.149)	(.297)	(.280)	(.257)	(.240)	(.105)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.149)	(.297)	(.280)	(.260)	(.259)	(.170)
Redemption fees added to paid in capital E, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.29	$ 10.31	$ 10.19	$ 10.20	$ 10.37	$ 10.48
Total ReturnB, C, D	1.25%	4.17%	2.69%	.88%	1.44%	1.54%
Ratios to Average Net AssetsF, I
Expenses before reductions	.75%A	.74%	.75%	.76%	.76%	.77%A
Expenses net of fee waivers, if any	.75%A	.74%	.75%	.76%	.76%	.77%A
Expenses net of all reductions	.72%A	.69%	.66%	.69%	.75%	.76%A
Net investment income	2.89%A	2.91%	2.76%	2.50%	2.30%	2.41%A
Supplemental Data
Net assets, end of period (in millions)	$ 11	$ 10	$ 13	$ 15	$ 20	$ 12
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Class B

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.32	$ 10.20	$ 10.21	$ 10.39	$ 10.49	$ 10.49
Income from Investment Operations
Net investment incomeE	.114	.228	.215	.190	.172	.081
Net realized and unrealized gain (loss)	(.020)	.121	(.012)	(.177)	(.080)	.059
Total from investment operations	.094	.349	.203	.013	.092	.140
Distributions from net investment income	(.114)	(.229)	(.213)	(.190)	(.173)	(.075)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.114)	(.229)	(.213)	(.193)	(.192)	(.140)
Redemption fees added to paid in capitalE, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.30	$ 10.32	$ 10.20	$ 10.21	$ 10.39	$ 10.49
Total ReturnB, C, D	.91%	3.47%	2.02%	.13%	.89%	1.34%
Ratios to Average Net AssetsF, I
Expenses before reductions	1.43%A	1.41%	1.41%	1.41%	1.40%	1.40%A
Expenses net of fee waivers, if any	1.43%A	1.41%	1.41%	1.41%	1.40%	1.40%A
Expenses net of all reductions	1.40%A	1.36%	1.31%	1.34%	1.39%	1.39%A
Net investment income	2.21%A	2.23%	2.11%	1.85%	1.65%	1.78%A
Supplemental Data
Net assets, end of period (in millions)	$ 1	$ 1	$ 2	$ 3	$ 4	$ 2
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the contingent deferred sales charge.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Class C

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48	$ 10.49
Income from Investment Operations
Net investment incomeE	.109	.219	.204	.178	.159	.077
Net realized and unrealized gain (loss)	(.019)	.120	(.011)	(.176)	(.080)	.048
Total from investment operations	.090	.339	.193	.002	.079	.125
Distributions from net investment income	(.110)	(.219)	(.203)	(.179)	(.160)	(.070)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.110)	(.219)	(.203)	(.182)	(.179)	(.135)
Redemption fees added to paid in capitalE, J	-	-	-	-	-	-
Net asset value, end of period	$ 10.29	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48
Total ReturnB, C, D	.86%	3.37%	1.92%	.02%	.77%	1.20%
Ratios to Average Net AssetsF, I
Expenses before reductions	1.51%A	1.51%	1.51%	1.52%	1.52%	1.50%A
Expenses net of fee waivers, if any	1.51%A	1.51%	1.51%	1.52%	1.52%	1.50%A
Expenses net of all reductions	1.49%A	1.45%	1.41%	1.45%	1.51%	1.49%A
Net investment income	2.13%A	2.14%	2.01%	1.74%	1.53%	1.67%A
Supplemental Data
Net assets, end of period (in millions)	$ 10	$ 6	$ 7	$ 10	$ 11	$ 8
Portfolio turnover rateG	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Total returns do not include the effect of the contingent deferred sales charge.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Short-Intermediate Municipal Income

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48	$ 10.52
Income from Investment Operations
Net investment incomeD	.163	.323	.307	.284	.268	.283
Net realized and unrealized gain (loss)	(.020)	.120	(.010)	(.177)	(.080)	.030
Total from investment operations	.143	.443	.297	.107	.188	.313
Distributions from net investment income	(.163)	(.323)	(.307)	(.284)	(.269)	(.283)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.070)
Total distributions	(.163)	(.323)	(.307)	(.287)	(.288)	(.353)
Redemption fees added to paid in capitalD, H	-	-	-	-	-	-
Net asset value, end of period	$ 10.29	$ 10.31	$ 10.19	$ 10.20	$ 10.38	$ 10.48
Total ReturnB, C	1.38%	4.43%	2.95%	1.06%	1.82%	3.01%
Ratios to Average Net AssetsE, G
Expenses before reductions	.49%A	.49%	.49%	.49%	.49%	.49%
Expenses net of fee waivers, if any	.49%A	.49%	.49%	.49%	.48%	.49%
Expenses net of all reductions	.47%A	.43%	.41%	.42%	.47%	.47%
Net investment income	3.14%A	3.17%	3.01%	2.77%	2.57%	2.69%
Supplemental Data
Net assets, end of period (in millions)	$ 1,742	$ 1,650	$ 1,485	$ 1,665	$ 1,841	$ 1,843
Portfolio turnover rateF	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^H Amount represents less than $.001 per share.

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

Semiannual Report

Financial Highlights - Institutional Class

	Six months ended June 30, 2008	Years ended December 31,
	(Unaudited)	2007	2006	2005	2004	2003G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.32	$ 10.20	$ 10.20	$ 10.38	$ 10.49	$ 10.49
Income from Investment Operations
Net investment incomeD	.160	.320	.306	.283	.265	.125
Net realized and unrealized gain (loss)	(.019)	.120	-I	(.176)	(.088)	.059
Total from investment operations	.141	.440	.306	.107	.177	.184
Distributions from net investment income	(.161)	(.320)	(.306)	(.284)	(.268)	(.119)
Distributions from net realized gain	-	-	-	(.003)	(.019)	(.065)
Total distributions	(.161)	(.320)	(.306)	(.287)	(.287)	(.184)
Redemption fees added to paid in capitalD, I	-	-	-	-	-	-
Net asset value, end of period	$ 10.30	$ 10.32	$ 10.20	$ 10.20	$ 10.38	$ 10.49
Total ReturnB, C	1.37%	4.39%	3.05%	1.05%	1.71%	1.77%
Ratios to Average Net AssetsE, H
Expenses before reductions	.51%A	.52%	.50%	.49%	.49%	.48%A
Expenses net of fee waivers, if any	.51%A	.52%	.50%	.49%	.49%	.48%A
Expenses net of all reductions	.49%A	.45%	.41%	.42%	.48%	.47%A
Net investment income	3.13%A	3.14%	3.01%	2.77%	2.57%	2.69%A
Supplemental Data
Net assets, end of period (000 omitted)	$ 12,425	$ 4,645	$ 3,357	$ 2,625	$ 1,253	$ 414
Portfolio turnover rateF	19%A	23%	28%	27%	45%	34%

^A Annualized

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

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

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period July 23, 2003 (commencement of sale of shares)to December 31, 2003.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I Amount represents less than $.001 per share.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2008 (Unaudited)

(Amounts in thousands except ratios)

1. Organization.

Fidelity Short-Intermediate Municipal Income Fund (the Fund) is a fund of Fidelity Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of four years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:

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3. Significant Accounting Policies - continued

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value. Actual prices received at disposition may differ.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1	Quoted prices in active markets for identical securities.
Level 2	Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3	Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Security Valuation - continued

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

The aggregate value by input level, as of June 30, 2008, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 pm Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements.

Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.

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3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to futures transactions, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to excise tax regulations.

The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.

The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:

Unrealized appreciation	$ 14,242
Unrealized depreciation	(7,953)
Net unrealized appreciation (depreciation)	$ 6,289
Cost for federal income tax purposes	$ 1,785,620

Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.

New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for fiscal years beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Fund invests in derivative instruments, the accounting treatment and the effect derivatives have on financial performance. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Fund's financial statement disclosures.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

4. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

Swap Agreements. The Fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.

Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.

Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with a fund's custodian in compliance with swap contracts.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $297,923 and $160,354, respectively.

Semiannual Report

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .37% of the Fund's average net assets.

Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:

	Distribution Fee	Service Fee	Paid to FDC	Retained by FDC
Class A	0%	.25%	$ 20	$ 2
Class T	0%	.25%	13	-
Class B	.65%	.25%	7	5
Class C	.75%	.25%	40	14
			$ 80	$ 21

Sales Load. FDC receives a front-end sales charge of up to 2.75% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3% to 1% for Class B, 1% for Class C, ..75% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

	Retained by FDC
Class A	$ 6
Class T	1
Class B*	1
Class C*	2
	$ 10

* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the Fund's Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the Fund, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:

	Amount	% of Average Net Assets*
Class A	$ 8	.09
Class T	5	.10
Class B	1	.13
Class C	4	.10
Short-Intermediate Municipal Income	772	.09
Institutional Class	4	.11
	$ 794

* Annualized

Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, to maintain the Fund's accounting records. The fee is based on the level of average net assets for the month.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Semiannual Report

8. Expense Reductions.

Through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $12 and $150, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.

	Transfer Agent expense reduction
Class A	$ 1
Short-Intermediate Municipal Income	71
	$ 72

9. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended June 30, 2008	Year ended December 31, 2007
From net investment income
Class A	$ 234	$ 281
Class T	151	296
Class B	16	44
Class C	83	121
Short-Intermediate Municipal Income	26,803	49,282
Institutional Class	105	112
Total	$ 27,392	$ 50,136

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

11. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended June 30, 2008	Year ended December 31, 2007	Six months ended June 30, 2008	Year ended December 31, 2007
Class A
Shares sold	1,478	398	$ 15,383	$ 4,082
Reinvestment of distributions	17	23	177	231
Shares redeemed	(410)	(268)	(4,260)	(2,734)
Net increase (decrease)	1,085	153	$ 11,300	$ 1,579
Class T
Shares sold	199	200	$ 2,070	$ 2,060
Reinvestment of distributions	12	24	123	241
Shares redeemed	(123)	(489)	(1,278)	(4,985)
Net increase (decrease)	88	(265)	$ 915	$ (2,684)
Class B
Shares sold	40	72	$ 429	$ 729
Reinvestment of distributions	1	3	10	28
Shares redeemed	(51)	(165)	(535)	(1,685)
Net increase (decrease)	(10)	(90)	$ (96)	$ (928)
Class C
Shares sold	549	151	$ 5,714	$ 1,547
Reinvestment of distributions	5	7	51	76
Shares redeemed	(110)	(253)	(1,140)	(2,584)
Net increase (decrease)	444	(95)	$ 4,625	$ (961)
Short-Intermediate Municipal Income
Shares sold	36,044	43,647	$ 374,687	$ 445,094
Reinvestment of distributions	1,598	3,143	16,585	32,070
Shares redeemed	(28,427)	(32,503)	(295,345)	(331,437)
Net increase (decrease)	9,215	14,287	$ 95,927	$ 145,727
Institutional Class
Shares sold	836	258	$ 8,681	$ 2,627
Reinvestment of distributions	4	4	40	46
Shares redeemed	(83)	(141)	(868)	(1,429)
Net increase (decrease)	757	121	$ 7,853	$ 1,244

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Short-Intermediate Municipal Income Fund

Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its June 2008 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved agreements with foreign sub-advisers Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Japan) Inc., and Fidelity Management & Research (Hong Kong) Limited.

In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fees on Fidelity's Institutional Money Market Funds and launching Class IV and Institutional Class of certain of these funds; (iii) reducing the transfer agent fees for the Fidelity Select Portfolios and Investor Class of the VIP funds; and (iv) launching Class K of 29 equity funds as a lower-fee class available to certain employer-sponsored retirement plans.

Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2007, as available, the cumulative total returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.

Semiannual Report

Fidelity Short-Intermediate Municipal Income Fund

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity Short-Intermediate Municipal Income (retail class) of the fund was in the first quartile for the one-year period and the second quartile for the three- and five-year periods. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions that may be taken by FMR to improve the fund's below-benchmark performance.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 20% means that 80% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Fidelity Short-Intermediate Municipal Income Fund

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2007.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

Semiannual Report

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each of Class A, Class T, Class B, Institutional Class, and Fidelity Short-Intermediate Municipal Income (retail class) ranked below its competitive median for 2007, and the total expenses of Class C ranked above its competitive median for 2007. The Board considered that the total expenses of Class C were above the median primarily due to higher transfer agent fees. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Semiannual Report

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends and actions to be taken by FMR to improve certain funds' overall performance; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's fund profitability methodology, the profitability of certain fund service providers, and profitability trends for certain funds; (iv) Fidelity's compensation structure for portfolio managers and key personnel, including its effects on fund profitability and the extent to which portfolio manager compensation is linked to fund performance; (v) Fidelity's fee structures; (vi) the funds' sub-advisory arrangements; and (vii) accounts managed by Fidelity other than the Fidelity funds.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments Money
Management, Inc.

Fidelity Research & Analysis Company

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

Fidelity Management & Research
(U.K.) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Citibank, N.A.

New York, NY

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Custodian

Citibank, N.A.

New York, NY

ASTMI-USAN-0808
1.803550.104

Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Investments

(a) Not applicable.

(b) Not applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Municipal Trust's Board of Trustees.

Item 11. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Municipal Trust's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 12. Exhibits

(a)	(1)	Not applicable.
(a)	(2)	Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
(a)	(3)	Not applicable.
(b)		Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Fidelity Municipal Trust

By:	/s/ John R. Hebble
	John R. Hebble
	President and Treasurer
Date:	August 22, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ John R. Hebble
	John R. Hebble
	President and Treasurer
Date:	August 22, 2008

By:	/s/Christine Reynolds
	Christine Reynolds
	Chief Financial Officer
Date:	August 22, 2008

EX-99.CERT

Exhibit EX-99.CERT

I, John R. Hebble, certify that:

1. I have reviewed this report on Form N-CSR of Fidelity Municipal Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 22, 2008

/s/John R. Hebble

John R. Hebble

President and Treasurer

I, Christine Reynolds, certify that:

1. I have reviewed this report on Form N-CSR of Fidelity Municipal Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 22, 2008

/s/Christine Reynolds

Christine Reynolds

Chief Financial Officer

EX-99.906 CERT

Exhibit EX-99.906CERT

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code)

In connection with the attached Report of Fidelity Municipal Trust (the "Trust") on Form N-CSR to be filed with the Securities and Exchange Commission (the "Report"), each of the undersigned officers of the Trust does hereby certify that, to the best of such officer's knowledge:

1. The Report fully complies with the requirements of 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust as of, and for, the periods presented in the Report.

Dated: August 22, 2008

/s/John R. Hebble

John R. Hebble

President and Treasurer

Dated: August 22, 2008

/s/Christine Reynolds

Christine Reynolds

Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request.