Fund Evaluator:
Fidelity Arizona Municipal Income (FSAZX)
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Best Performing in Muni Single State Long Over the Last Year
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| 8.1% | T. Rowe Price GA Tax-Free Bond (GTFBX) |
| 6.8% | Fidelity Michigan Municipal Income (FMHTX) |
| 6.8% | Fidelity Arizona Municipal Income (FSAZX) |
Fund Details
Fidelity Arizona Municipal Income Overview
Fidelity Arizona Municipal Income (FSAZX) is an actively managed Municipal Bond Muni Single State Long fund. Fidelity Investments launched the fund in 1994.
The investment seeks a high level of current income, exempt from federal income tax and Arizona personal income tax. The fund normally invests at least 80% of assets in municipal securities whose interest is exempt from federal and Arizona personal income taxes. The municipal securities in which the fund invests are normally investment-grade (those of medium and high quality). It is non-diversified.
About Fidelity Arizona Municipal Income (FSAZX)
There are 3 members of the management team with an average tenure of 8.08 years: Cormac Cullen (2016), Elizah McLaughlin (2018), Michael Maka (2020). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and Bloomberg Arizona 2+Y Enh Muni Lk TR USD index with a weighting of 100%. Fidelity Arizona Municipal Income has 135 securities in its portfolio. The top 10 holdings constitute 23.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Fidelity Arizona Municipal Income is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Fidelity Arizona Municipal Income has 2.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 97.7% (95.4% domestic bond, 2.2% foreign bond and 0.0% convertible bond). Fidelity Arizona Municipal Income has 2.3% of the portfolio in cash.
Assets Under Management
The fund has $129 million in total assets, which is above the $105 million average for the Muni Single State Long category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FSAZX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Arizona Municipal Income expense ratio is average compared to funds in the Muni Single State Long category. Fidelity Arizona Municipal Income has an expense ratio of 0.55%, which is 39% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Arizona Municipal Income has a portfolio turnover rate of 22%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 15% for the Muni Single State Long category.
Recently, in the month of June 2026, Fidelity Arizona Municipal Income returned 0.8%, which earned it a grade of F, as the Muni Single State Long category had an average return of 1.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Fidelity Arizona Municipal Income has a trailing yield of 2.67%, which is below the 3.15% category average. The fund normally distributes its income monthly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Fidelity Arizona Municipal Income Grades
Year to date, the fund has returned 2.0%, 0.6 percentage points worse than the category, which translates into a grade of F. The fund has returned 6.8% over the past year (grade of F), 3.9% over the past three years (grade of C) and 0.9% per year over the past five years (grade of A) and 1.9% per year over the past 10 years (grade of B).
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FSAZX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FSAZX Return (NAV) | 0.8% | 2.4% | 6.8% | 3.9% | 0.9% | 1.9% |
| FSAZX Grade | F | F | F | C | A | B |
| +/- Category | -0.2% | -0.4% | -0.8% | 0.2% | 0.4% | 0.3% |
| Muni Single State Long Avg | 1.0% | 2.8% | 7.5% | 3.7% | 0.5% | 1.5% |
| FSAZX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | 0.0% |
FSAZX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FSAZX Return (NAV) | 2.0% | 4.1% | 1.8% | 6.0% | -8.7% | 1.2% | 4.5% | 7.2% | 0.6% | 5.4% | 0.0% |
| FSAZX Grade | F | A | D | C | A | D | B | A | D | A | D |
| +/- Category | -0.6% | 0.9% | -0.0% | 0.1% | 1.8% | -0.6% | 0.2% | 0.7% | -0.1% | 1.7% | -0.4% |
| Muni Single State Long Avg | 2.6% | 3.1% | 1.9% | 6.0% | -10.5% | 1.8% | 4.3% | 6.5% | 0.8% | 3.8% | 0.4% |
| Risk Measures | |
| Standard Deviation: | 5.0% |
| Total Risk Index: | 0.41 - Low |
| Category Risk Index: | 0.81 - Low |
| Category Risk Grade: | A (2% Rank) |
| Beta: | 0.89 |
| R-Squared: | 98% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 2.7% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | None |
| Total Assets: | $129 Mil |
| Fund Total Assets: | $ 129 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 22% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 10.2 years | |||
| Average Tenure: 8.1 years | |||
| Managers (Year): Cullen Cormac (2016), McLaughlin Elizah (2018), Maka Michael (2020) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 135 |
| % in Top 10 Holdings: | 23.6% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 2.2% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 95.4% |
| Foreign Bond: | 2.2% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 2.3% |
Purchase Information
| Fund Family: | Fidelity Investments |
| Phone Number: | 800-544-5555 |
| Website: | www.institutional.fidelity.com |
| Status: | Open |
| Inception Date: | October 11, 1994 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.55% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.90% |
| Share Class: | Fidelity Arizona Municipal Income |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
