FIDELITY NEW YORK MUNICIPAL TRUST, 485BPOS, 1994-03-21

FIDELITY NEW YORK MUNICIPAL TRUST
485BPOS, 1994-03-21

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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-1A

REGISTRATION STATEMENT (No. 2-83295)
UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 30 [X]
and
REGISTRATION STATEMENT UNDER
THE INVESTMENT COMPANY ACT OF 1940 [X]

Amendment No. [ ]
FIDELITY NEW YORK MUNICIPAL TRUST
(Exact Name of Registrant as Specified in Charter)
82 Devonshire St., Boston, MA 02109
(Address of Principal Executive Offices)
Registrant's Telephone Number, Including Area Code: 617-570-7000
Arthur S. Loring, Esq.
82 Devonshire Street,
Boston, Massachusetts 02109
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
( ) Immediately upon filing pursuant to paragraph (b)
(X) On March 22, 1994 pursuant to paragraph (b)
( ) 60 days after filing pursuant to paragraph (a)
( ) On ( ) pursuant to paragraph (a) of Rule 485
Registrant has filed a declaration pursuant to Rule 24f-2 under the
Investment Company Act of 1940 and intends to file the notice required by
such Rule before March 31, 1994.

FIDELITY NEW YORK TAX-FREE FUNDS:
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO
FIDLEITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO

CROSS REFERENCE SHEET
FORM N-1A

ITEM NUMBER PROSPECTUS SECTION

<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 .............................. Cover Page

2 a .............................. Expenses

b, c .............................. Contents; The Funds at a Glance; Who May Want
to Invest

3 a .............................. Financial Highlights

b .............................. *

c,d .............................. Performance

4 a i............................. Charter

ii........................... The Funds at a Glance; Investment Principles and
Risks

b .............................. *

c .............................. Who May Want to Invest; Investment Principles
and Risks

5 a .............................. Charter

b i............................. Doing Business with Fidelity; Charter

ii........................... Charter; Breakdown of Expenses

iii.......................... Expenses; Breakdown of Expenses

c, d .............................. Charter; Breakdown of Expenses; Cover Page;
FMR and Its Affiliates

e .............................. FMR and its Affiliates

f .............................. Expenses

g .............................. *

5 A .............................. Performance

6 a i............................. Charter

ii........................... How to Buy Shares; How to Sell Shares;
Transaction Details; Exchange Restrictions

iii.......................... *

b ............................. *

c .............................. Exchange Restrictions

d .............................. *

e .............................. Doing Business with Fidelity; How to Buy Shares;
How to Sell Shares; Investor Services

f, g .............................. Dividends, Capital Gains, and Taxes

7 a .............................. Charter; Cover Page

b .............................. How to Buy Shares; Transaction Details

c .............................. *

d .............................. How to Buy Shares

e .............................. *

f .............................. Breakdown of Expenses

8 .............................. How to Sell Shares; Investor Services; Transaction
Details; Exchange Restrictions

9 .............................. *

</TABLE>

* Not Applicable

CROSS REFERENCE SHEET
(CONTINUED)
FORM N-1A

ITEM NUMBER STATEMENT OF ADDITIONAL INFORMATION SECTION

<TABLE>
<CAPTION>
<S> <C> <C> <C>
10, 11 ............................ Cover Page

12 ............................ *

13 a - c ............................ Investment Policies and Limitations

d ............................ *

14 a - c ............................ Trustees and Officers

15 a, b ............................ *

c ............................ Trustees and Officers

16 a i ............................ FMR

ii ............................ Trustees and Officers

iii ............................ Management Contracts

b ............................ Management Contracts

c, d ............................ Contracts with Companies Affiliated with FMR

e ............................ *

f ............................ Distribution and Service Plans

g ............................ *

h ............................ Description of the Trusts

i ............................ Contracts with Companies Affiliated with FMR

17 a ............................ Portfolio Transactions

b ............................ *

c ............................ Portfolio Transactions

d, e ............................ *

18 a ............................ Description of the Trusts

b ............................ *

19 a ............................ Additional Purchase and Redemption Information

b ............................ Additional Purchase and Redemption Information;
Valuation of Portfolio Securities

c ............................ *

20 Distributions and Taxes

21 a, b ............................ Contracts with Companies Affiliated with FMR

c ............................ *

22 ............................ Performance

23 ............................ Financial Statements

</TABLE>

* Not Applicable
Please read this prospectus before investing, and keep it on file for
future reference. It contains important information, including how each
fund invests and the services available to shareholders.
A Statement of Additional Information dated March 22, 1994 has been filed
with the Securities and Exchange Commission, and is incorporated herein by
reference (is legally considered a part of this prospectus). The Statement
of Additional Information is available free upon request by calling
Fidelity at 1-800-544-8888.
Investments in the money market fund are neither insured nor guaranteed by
the U.S. government, and there can be no assurance that the fund will
maintain a stable $1.00 share price.
Mutual fund shares are not deposits or obligations of, or endorsed or
guaranteed by, any bank, savings association, insured depositary
institution, or government agency, nor are they federally insured or
otherwise protected by the FDIC, the Federal Reserve Board, or any other
agency. Investments in the funds involve investment risk, including
possible loss of principal. The value of the investment and its return will
fluctuate and are not guaranteed. When sold, the value of the investment
may be higher or lower than the amount originally invested.
Each of these funds seeks a high level of current income free from federal
income tax and New York State and City income taxes. The funds have
different strategies, however, and carry varying degrees of risk.
FIDELITY
NEW YORK
TAX-FREE
FUNDS
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO
PROSPECTUS
MARCH 22, 1994(FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET, BOSTON, MA
02109
LIKE ALL MUTUAL
FUNDS, THESE
SECURITIES HAVE NOT
BEEN APPROVED OR
DISAPPROVED BY THE
SECURITIES AND
EXCHANGE
COMMISSION OR ANY
STATE SECURITIES
COMMISSION, NOR HAS
THE SECURITIES AND
EXCHANGE
COMMISSION OR ANY
STATE SECURITIES
COMMISSION PASSED
UPON THE ACCURACY
OR ADEQUACY OF THIS
PROSPECTUS. ANY
REPRESENTATION TO
THE CONTRARY IS A
CRIMINAL OFFENSE.
NFR-pro-394
CONTENTS

KEY FACTS THE FUNDS AT A GLANCE

WHO MAY WANT TO INVEST

EXPENSES Each fund's yearly
operating expenses.

FINANCIAL HIGHLIGHTS A summary
of each fund's financial data.

PERFORMANCE How each fund has
done over time.

THE FUNDS IN DETAIL CHARTER How each fund is
organized.

INVESTMENT PRINCIPLES AND RISKS
Each fund's overall approach to
investing.

BREAKDOWN OF EXPENSES How
operating costs are calculated and
what they include.

YOUR ACCOUNT DOING BUSINESS WITH FIDELITY

TYPES OF ACCOUNTS Different
ways to set up your account.

HOW TO BUY SHARES Opening an
account and making additional
investments.

HOW TO SELL SHARES Taking money
out and closing your account.

INVESTOR SERVICES Services to
help you manage your account.

SHAREHOLDER AND DIVIDENDS, CAPITAL GAINS, AND
ACCOUNT POLICIES TAXES

TRANSACTION DETAILS Share price
calculations and the timing of
purchases and redemptions.

EXCHANGE RESTRICTIONS

KEY FACTS

THE FUNDS AT A GLANCE
MANAGEMENT: Fidelity Management & Research Company (FMR) is the
management arm of Fidelity Investments, which was established in 1946 and
is now America's largest mutual fund manager. FMR Texas Inc. (FTX), a
subsidiary of FMR, chooses investments for New York Tax-Free Money Market.
As with any mutual fund, there is no assurance that a fund will achieve its
goal.
NEW YORK MONEY MARKET
GOAL: High current tax-free income for New York residents while maintaining
a stable share price.
STRATEGY: Invests in high-quality , short-term securities whose
interest is free from federal income tax and New York State and City income
taxes.
NEW YORK INSURED
GOAL: High current tax-free income for New York residents.
STRATEGY: Invests mainly in long-term securities that are covered by
insurance guaranteeing the timely payment of principal and interest, and
whose interest is free from federal income tax and New York State and City
income taxes.
NEW YORK HIGH YIELD
GOAL: High current tax-free income for New York residents.
STRATEGY: Invests mainly in long-term investment-grade securities whose
interest is free from federal income tax and New York State and City income
taxes.
WHO MAY WANT TO INVEST
These non-diversified funds may be appropriate for investors in higher tax
brackets who seek high current income that is free from federal and New
York State and City income taxes. Each fund's level of risk, and potential
reward, depend on the quality and maturity of its investments.
Lower-quality and longer-term investments typically carry
higher risk and yield potential. Insurance, which covers the timely
payment of interest and principal, provides a high degree of credit
quality. However, its cost lowers the fund's yield. You should
consider your tolerance for risk when making an investment decision.
The value of the funds' investments and the income they generate will vary
from day to day, generally reflecting changes in interest rates, market
conditions, and other federal and state political and economic news.
By themselves, these funds do not constitute a balanced investment
plan.
New York Tax-Free Money Market is managed to keep its share price stable at
$1.00. When you sell your shares of either of the other funds, they
may be worth more or less than what you paid for them.
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you pay when you buy or sell
shares of a fund.
Maximum sales charge on purchases and
reinvested dividends None
Deferred sales charge on redemptions None
Exchange fee None
ANNUAL FUND OPERATING EXPENSES are paid out of each fund's assets. Each
fund pays a management fee to FMR. It also incurs other expenses for
services such as maintaining shareholder records and furnishing shareholder
statements and fund reports. A fund's expenses are factored into its share
price or dividends and are not charged directly to shareholder accounts
(see page ).
The following are projections based on historical expenses, and are
calculated as a percentage of average net assets.
NEW YORK MONEY MARKET
Management fee .4 1 %
12b-1 fee None
Other expenses .2 1 %
Total fund operating expenses .6 2 %
NEW YORK INSURED
Management fee .4 1 %
12b-1 fee None
Other expenses .1 7 %
Total fund operating expenses .5 8 %
NEW YORK HIGH YIELD
Management fee .4 1 %
12b-1 fee None
Other expenses .1 7 %
Total fund operating expenses .5 8 %
EXAMPLES: Let's say, hypothetically, that each fund's annual return is 5%
and that its operating expenses are exactly as just described. For every
$1,000 you invested, here's how much you would pay in total expenses if you
close your account after the number of years indicated:
After 1 After 3 After 5 After 10
year years years years
New York
Money Market $6 $20 $35 $77
New York Insured $6 $19 $32 $73
New York High Yield $6 $19 $32 $73
These examples illustrate the effect of expenses, but are not meant to
suggest actual or expected costs or returns, all of which may vary.
FINANCIAL HIGHLIGHTS
The tables that follow have been audited by Price Waterhouse, independent
accountants. Their unqualified report is included in the funds' Annual
Report. The Annual Report is incorporated by reference into (is legally
a part of) the Statement of Additional Information.
NEW YORK MONEY MARKET

<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1.Selected Per-Share Data
and Ratios

2.Periods
1985C 1986D 1987D 1988D 1989D 1990D 1991D 1992D 1993E 1994
ended
January 31

3.Net asset
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
value,
0 0 0 0 0 0 0 0 0 0
beginning of
period

4.Income
.046 .047 .037 .039 .049 .052 .046 .034 .017 .018
from
Investment
Operations
Net interest
income

5. Dividends
(.046) (.047) (.037) (.039) (.049) (.052) (.046) (.034) (.017) (.018)
from net
interest
income

6.Net asset
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
value,
0 0 0 0 0 0 0 0 0 0
end of period

7.Total
4.80% 4.64% 3.78% 4.01% 4.99% 5.34% 4.74% 3.46% 1.72% 1.84%
returnB

8.Net assets,
$ 49,2 $ 166,0 $ 465,9 $ 634,5 $ 684,7 $ 622,9 $ 541,4 $ 540,3 $ 565,6 $ 608,4
end of period
32 62 03 18 23 11 72 74 19 44
(000 omitted)

9.Ratio of
.30%A .60% .60% .56% .51% .61% .61% .64% .62%A .62%
expenses to
average net
assetsF

10.Ratio of
1.00% .73% .66% .61% .61% .61% .61% .64% .62%A .62%
expenses to
A
average net
assets before
expense
reductionsF

11.Ratio of
5.59% 4.73% 3.69% 3.96% 4.91% 5.21% 4.64% 3.39% 2.26% 1.83%
net interest
A A
income to
average net
assets

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12.Selected Per-Share
Data and Ratios

</TABLE>

<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C> <C> <C>
13.Periods
1986C 1987D 1988D 1989D 1990D 1991D 1992D 1993E 1994
ended
January 31

14.Net asset
$ 10.00 $ 10.96 $ 10.47 $ 10.29 $ 10.71 $ 10.54 $ 10.99 $ 11.32 $ 11.83
value,
0 0 0 0 0 0 0 0 0
beginning of
period

15.Income
.414 .699 .693 .683 .701 .696 .684 .509 .648
from
Investment
Operations
Net interest
income

16. Net
.960 (.480) (.180) .420 (.170) .450 .330 .510 .780
realized and
unrealized
gain (loss)
on
investments

17. Total from
1.374 .219 .513 1.103 .531 1.146 1.014 1.019 1.428
investment
operations

18.Less
(.414) (.699) (.693) (.683) (.701) (.696) (.684) (.509) (.648)
Distributions
From net
interest
income

19. From net
- (.010) - - - - - - (.310)
realized gain
on investments

20. Total
(.414) (.709) (.693) (.683) (.701) (.696) (.684) (.509) (.958)
distributions

21.Net asset
$ 10.96 $ 10.47 $ 10.29 $ 10.71 $ 10.54 $ 10.99 $ 11.32 $ 11.83 $ 12.30
value, end
0 0 0 0 0 0 0 0 0
of period

22.Total
13.96 1.85% 5.11% 11.05 4.99% 11.17 9.45% 9.16% 12.36
returnB
%</r

% % %

23.Net assets,
$ 63,89 $ 172,1 $ 155,0 $ 179,4 $ 206,4 $ 246,8 $ 309,3 $ 359,3 $ 414,6
end of period
5 19 43 70 16 42 00 05 29
(000 omitted)

24.Ratio of
.60%A .60% .67% .65% .65% .64% .62% .61%A .58%
expenses to
average net
assetsF

25.Ratio of
.96%A .78% .75% .65% .65% .64% .62% .61%A .58%
expenses to
average net
assets before
expense
reductionsF

26.Ratio of net
6.81% 6.31% 6.72% 6.55% 6.47% 6.45% 6.17% 5.73% 5.31%
interest income
A A
to average net
assets

27.Portfolio
8%A 30% 29% 31% 18% 33% 17% 39%A 48%
turnover rate

</TABLE>

<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
28.Selected Per-Share

Data and Ratios

29.Periods
1985C 1986D 1987D 1988D 1989D 1990D 1991D 1992D 1993E 1994
ended
January 31

30.Net asset
$ 10.0 $ 10.6 $ 11.98 $ 11.48 $ 11.16 $ 11.64 $ 11.37 $ 11.75 $ 12.1 $ 12.6
value,
00 90 0 0 0 0 0 0 00 60
beginning of
period

31.Income
.744 .892 .815 .794 .796 .806 .789 .773 .580 .714
from
Investment
Operations
Net interest
income

32. Net
.690 1.290 (.330) (.220) .480 (.270) .380 .350 .560 .850
realized
and
unrealized
gain
(loss) on
investments

33. Total
1.434 2.182 .485 .574 1.276 .536 1.169 1.123 1.140 1.564
from
investment
operations

34.Less
(.744) (.892) (.815) (.794) (.796) (.806) (.789) (.773) (.580) (.714)
Distributions
From net
interest
income

35. From
- - (.170) (.100) - - - - - (.460)
net realized
gain on
investments

36. Total
(.744) (.892) (.985) (.894) (.796) (.806) (.789) (.773) (.580) (1.174
distributions )

37.Net asset
$ 10.6 $ 11.98 $ 11.48 $ 11.16 $ 11.64 $ 11.37 $ 11.75 $ 12.1 $ 12.6 $ 13.0
value, end of
90 0 0 0 0 0 0 00 60 50
period

38.Total
14.82 21.20 4.05% 5.26% 11.81 4.62% 10.59 9.80% 9.60% 12.70
returnB
% % % % %

39.Net
$ 28,0 $ 202,7 $ 352,3 $ 311,7 $ 368,1 $ 381,2 $ 386,1 $ 412,0 $ 445,5 $ 491,4
assets, end
21 79 10 91 74 76 69 30 06 21
of period (000
omitted)

40.Ratio of
1.00% .67% .60% .67% .63% .61% .59% .61% .61%A .58%
expenses to
A
average net
assetsF

41.Ratio of
1.49% .81% .76% .71% .63% .61% .59% .61% .61%A .58%
expenses to
A
average net
assets before
expense
reductionsF

42.Ratio of
9.05% 7.61% 6.76% 7.10% 6.99% 6.87% 6.81% 6.52% 6.08% 5.45%
net interest
A A
income to
average net
assets

43.Portfolio
8%A 62% 51% 64% 49% 34% 45% 30% 45%A 70%
turnover rate

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C FROM JULY 10, 1984 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1985
D FISCAL YEARS ENDED APRIL 30
E MAY 1, 1992 TO JANUARY 31, 1993
F DURING THE PERIODS SHOWN, FMR VOLUNTARILY REIMBURSED THE FUND FOR
CERTAIN EXPENSES.
PERFORMANCE
Mutual fund performance can be measured as TOTAL RETURN or YIELD. The total
returns and yields that follow are based on historical fund results.
Each fund's fiscal year runs from February 1 through January 31. The tables
below show each fund's performance over past fiscal years compared to a
measure of inflation. The charts on page 9 help you compare the yields of
these funds to those of their competitors.
AVERAGE ANNUAL TOTAL RETURNS
Fiscal periods ended Past 1 Past 5 Life of
January 31, 1994 year years fund
New York Money Market 1.84% 3.69% 4.10%A
New York Insured 12.36% 9.71% 9.47%B
New York High Yield 12.70% 9.86% 10.82%C
Consumer Price
Index 2.52% 3.84% n/a
CUMULATIVE TOTAL RETURNS
Fiscal periods ended Past 1 Past 5 Life of
January 31, 1994 year years fund
New York Money Market 1.84% 19.85% 46.94% A
New York Insured 12.36% 58.94% 112.26%B
New York High Yield 12.70% 59.99% 167.41%C
Consumer Price
Index 2.52% 20.73% n/a
A FROM JULY 6, 1984
B FROM OCTOBER 11, 1985
C FROM JULY 10, 1984
EXPLANATION OF TERMS
TOTAL RETURN is the change in value of an investment in a fund over a given
period, assuming reinvestment of any dividends and capital gains. A
CUMULATIVE TOTAL RETURN reflects actual performance over a stated period of
time. An AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate of return that,
if achieved annually, would have produced the same cumulative total return
if performance had been constant over the entire period. Average annual
total returns smooth out variations in performance; they are not the same
as actual year-by-year results.
YIELD refers to the income generated by an investment in a fund over a
given period of time, expressed as an annual percentage rate. When a money
market fund yield assumes that income earned is reinvested, it is called an
EFFECTIVE YIELD. A TAX-EQUIVALENT YIELD shows what an investor would have
to earn before taxes to equal a tax-free yield. Yields for the bond funds
are calculated according to a standard that is required for all stock and
bond funds. Because this differs from other accounting methods, the quoted
yield may not equal the income actually paid to shareholders.
THE CONSUMER PRICE INDEX is a widely recognized measure of inflation
calculated by the U.S. government.
THE COMPETITIVE FUNDS AVERAGES for New York Tax-Free Money Market are
calculated based on the IBC/Donoghue's MONEY FUND
AVERAGES(Trademark) / New York Tax-Free Funds category,
which currently reflects the performance of over 144 mutual funds
with similar objectives. These averages are published in the MONEY FUND
REPORT(Registered trademark) by IBC USA (Publications), Inc. The
competitive funds averages for the bond funds are published by
Lipper Analytical Services, Inc. New York Tax-Free Insured and
New York Tax-Free High Yield compare their performance to the Lipper
New York Insured Municipal Debt Funds Average and Lipper New York
Municipal Debt Funds Average , respectively, which currently reflect
the performance of over 7 and 65 mutual funds with similar
objectives, respectively. All of these averages assume reinvestment of
distributions.
The funds' recent strategies, performance, and holdings are detailed twice
a year in financial reports, which are sent to all shareholders. For
current performance or a free annual report, call 1-800-544-8888.
NEW YORK TAX-FREE MONEY MARKET
7-day yields
Percentage (%)
Row: 1, Col: 1, Value: 2.61
Row: 1, Col: 2, Value: 2.69
Row: 2, Col: 1, Value: 2.65
Row: 2, Col: 2, Value: 2.62
Row: 3, Col: 1, Value: 2.8
Row: 3, Col: 2, Value: 2.97
Row: 4, Col: 1, Value: 2.87
Row: 4, Col: 2, Value: 3.07
Row: 5, Col: 1, Value: 2.92
Row: 5, Col: 2, Value: 3.0
Row: 6, Col: 1, Value: 2.26
Row: 6, Col: 2, Value: 2.46
Row: 7, Col: 1, Value: 2.03
Row: 7, Col: 2, Value: 2.14
Row: 8, Col: 1, Value: 2.13
Row: 8, Col: 2, Value: 2.15
Row: 9, Col: 1, Value: 2.57
Row: 9, Col: 2, Value: 2.67
Row: 10, Col: 1, Value: 2.16
Row: 10, Col: 2, Value: 2.13
Row: 11, Col: 1, Value: 2.16
Row: 11, Col: 2, Value: 2.16
Row: 12, Col: 1, Value: 2.53
Row: 12, Col: 2, Value: 2.69
Row: 13, Col: 1, Value: 1.77
Row: 13, Col: 2, Value: 1.81
Row: 14, Col: 1, Value: 1.74
Row: 14, Col: 2, Value: 1.87
Row: 15, Col: 1, Value: 1.78
Row: 15, Col: 2, Value: 1.96
Row: 16, Col: 1, Value: 1.8
Row: 16, Col: 2, Value: 1.98
Row: 17, Col: 1, Value: 2.05
Row: 17, Col: 2, Value: 2.13
Row: 18, Col: 1, Value: 1.67
Row: 18, Col: 2, Value: 1.79
Row: 19, Col: 1, Value: 1.78
Row: 19, Col: 2, Value: 1.86
Row: 20, Col: 1, Value: 1.93
Row: 20, Col: 2, Value: 1.97
Row: 21, Col: 1, Value: 2.12
Row: 21, Col: 2, Value: 2.16
Row: 22, Col: 1, Value: 1.96
Row: 22, Col: 2, Value: 1.95
Row: 23, Col: 1, Value: 1.92
Row: 23, Col: 2, Value: 1.91
Row: 24, Col: 1, Value: 2.14
Row: 24, Col: 2, Value: 2.13
Row: 25, Col: 1, Value: 1.73
Row: 25, Col: 2, Value: 1.71
New York
Tax-Free
Money Market
Competitive
funds average
1992
1993
1994
NEW YORK TAX-FREE INSUREDNEW YORK HIGH YIELD
30-day yields
Percentage (%)
Row: 1, Col: 1, Value: 5.7
Row: 1, Col: 2, Value: 5.81
Row: 2, Col: 1, Value: 5.38
Row: 2, Col: 2, Value: 5.63
Row: 3, Col: 1, Value: 5.5
Row: 3, Col: 2, Value: 5.7
Row: 4, Col: 1, Value: 5.63
Row: 4, Col: 2, Value: 5.7
Row: 5, Col: 1, Value: 5.6
Row: 5, Col: 2, Value: 5.76
Row: 6, Col: 1, Value: 5.63
Row: 6, Col: 2, Value: 5.69
Row: 7, Col: 1, Value: 5.41
Row: 7, Col: 2, Value: 5.5
Row: 8, Col: 1, Value: 4.8
Row: 8, Col: 2, Value: 5.17
Row: 9, Col: 1, Value: 4.859999999999999
Row: 9, Col: 2, Value: 5.149999999999999
Row: 10, Col: 1, Value: 4.970000000000001
Row: 10, Col: 2, Value: 5.319999999999999
Row: 11, Col: 1, Value: 5.18
Row: 11, Col: 2, Value: 4.57
Row: 12, Col: 1, Value: 5.07
Row: 12, Col: 2, Value: 5.35
Row: 13, Col: 1, Value: 4.99
Row: 13, Col: 2, Value: 5.23
Row: 14, Col: 1, Value: 4.970000000000001
Row: 14, Col: 2, Value: 5.14
Row: 15, Col: 1, Value: 4.58
Row: 15, Col: 2, Value: 4.859999999999999
Row: 16, Col: 1, Value: 4.55
Row: 16, Col: 2, Value: 4.84
Row: 17, Col: 1, Value: 4.55
Row: 17, Col: 2, Value: 4.79
Row: 18, Col: 1, Value: 4.64
Row: 18, Col: 2, Value: 4.77
Row: 19, Col: 1, Value: 4.64
Row: 19, Col: 2, Value: 4.71
Row: 20, Col: 1, Value: 4.609999999999999
Row: 20, Col: 2, Value: 4.72
Row: 21, Col: 1, Value: 4.52
Row: 21, Col: 2, Value: 4.51
Row: 22, Col: 1, Value: 4.42
Row: 22, Col: 2, Value: 4.38
Row: 23, Col: 1, Value: 4.359999999999999
Row: 23, Col: 2, Value: 4.3
Row: 24, Col: 1, Value: 4.609999999999999
Row: 24, Col: 2, Value: 4.49
Row: 25, Col: 1, Value: 4.51
Row: 25, Col: 2, Value: 4.44
Row: 26, Col: 1, Value: 4.4
Row: 26, Col: 2, Value: 4.29
New York
Tax-Free
Insured
Competitive
funds
average
1993
1992
1994
NEW YORK TAX-FREE HIGH YIELD
30-day yields
Percentage (%)
Row: 1, Col: 1, Value: 5.659999999999999
Row: 1, Col: 2, Value: 5.89
Row: 2, Col: 1, Value: 5.48
Row: 2, Col: 2, Value: 5.81
Row: 3, Col: 1, Value: 5.69
Row: 3, Col: 2, Value: 5.77
Row: 4, Col: 1, Value: 5.819999999999999
Row: 4, Col: 2, Value: 5.87
Row: 5, Col: 1, Value: 5.76
Row: 5, Col: 2, Value: 5.88
Row: 6, Col: 1, Value: 5.58
Row: 6, Col: 2, Value: 5.8
Row: 7, Col: 1, Value: 5.33
Row: 7, Col: 2, Value: 5.609999999999999
Row: 8, Col: 1, Value: 4.84
Row: 8, Col: 2, Value: 5.35
Row: 9, Col: 1, Value: 4.98
Row: 9, Col: 2, Value: 5.29
Row: 10, Col: 1, Value: 5.13
Row: 10, Col: 2, Value: 5.359999999999999
Row: 11, Col: 1, Value: 5.4
Row: 11, Col: 2, Value: 5.49
Row: 12, Col: 1, Value: 5.39
Row: 12, Col: 2, Value: 5.42
Row: 13, Col: 1, Value: 5.27
Row: 13, Col: 2, Value: 5.359999999999999
Row: 14, Col: 1, Value: 5.159999999999999
Row: 14, Col: 2, Value: 5.34
Row: 15, Col: 1, Value: 4.59
Row: 15, Col: 2, Value: 5.03
Row: 16, Col: 1, Value: 4.46
Row: 16, Col: 2, Value: 4.85
Row: 17, Col: 1, Value: 4.72
Row: 17, Col: 2, Value: 4.859999999999999
Row: 18, Col: 1, Value: 4.8
Row: 18, Col: 2, Value: 4.83
Row: 19, Col: 1, Value: 4.69
Row: 19, Col: 2, Value: 4.76
Row: 20, Col: 1, Value: 4.63
Row: 20, Col: 2, Value: 4.71
Row: 21, Col: 1, Value: 4.54
Row: 21, Col: 2, Value: 4.619999999999999
Row: 22, Col: 1, Value: 4.42
Row: 22, Col: 2, Value: 4.49
Row: 23, Col: 1, Value: 4.430000000000001
Row: 23, Col: 2, Value: 4.42
Row: 24, Col: 1, Value: 4.73
Row: 24, Col: 2, Value: 4.59
Row: 25, Col: 1, Value: 4.67
Row: 25, Col: 2, Value: 4.51
Row: 26, Col: 1, Value: 4.56
Row: 26, Col: 2, Value: 4.42
New York
Tax-Free
High Yield
Competitive
funds
average
1993
1992
1994
THE TOP CHART SHOWS THE 7-DAY EFFECTIVE YIELDS FOR THE FUND AND ITS
COMPETITIVE FUNDS AVERAGE AS OF THE LAST TUESDAY OF EACH MONTH FROM
JANUARY 199 2 THROUGH JANUARY 199 4 . THE BOTTOM
CHART S SHOW THE 30-DAY
ANNUALIZED NET YIELDS FOR THE FUND AND ITS COMPETITIVE FUNDS AVERAGE AS OF
THE LAST DAY OF EACH MONTH DURING THE SAME PERIOD.

TOTAL RETURNS AND YIELDS ARE BASED ON PAST RESULTS AND ARE NOT AN
INDICATION OF FUTURE PERFORMANCE.
THE FUNDS IN DETAIL

FDC distributes and markets Fidelity's funds and services. Fidelity Service
Co. (FSC) performs transfer agent servicing functions for the funds.
FMR Corp. is the parent company of these organizations. Through ownership
of voting common stock, Edward C. Johnson 3d (President and a trustee of
the trusts), Johnson family members, and various trusts for the benefit of
the Johnson family form a controlling group with respect to FMR Corp.
United Missouri Bank, N.A., is each fund's transfer agent, although it
employs FSC to perform these functions for the funds. It is located at 1010
Grand Avenue, Kansas City, Missouri.
To carry out the funds' transactions, FMR may use its broker-dealer
affiliates and other firms that sell fund shares, provided that a fund
receives services and commission rates comparable to those of other
broker-dealers.
INVESTMENT PRINCIPLES AND RISKS
NEW YORK TAX-FREE MONEY MARKET seeks high current income that is free from
federal income tax and New York State and City income taxes while
maintaining a stable $1.00 share price by investing in high-quality,
short-term municipal securities of all types. As a result, when you
sell your shares, they should be worth the same amount as when you bought
them. Of course, there is no guarantee that the fund will maintain a stable
$1.00 share price. FMR normally invests at least 65% of the fund's total
assets in state tax-free securities, and normally invests so that at least
80% of the fund's income distributions are free from federal income tax.
The fund follows industry-standard guidelines on the quality and maturity
of its investments, which are designed to help maintain a stable $1.00
share price. The fund will purchase only high-quality securities that FMR
believes present minimal credit risks and will observe maturity
restrictions on securities it buys. It is possible that a major change in
interest rates or a default on the fund's investments could cause its share
price (and the value of your investment) to change.
NEW YORK TAX-FREE INSURED seeks high current income that is free from
federal income tax and New York State and City income taxes by investing
primarily in municipal securities that are covered by insurance
guaranteeing the timely payment of interest and principal. It is important
to note, however, that the insurance does not guarantee the market value of
a security or of the fund's shares. The insurance coverage is either
obtained by the bond's issuer or underwriter, or purchased by the fund. FMR
reviews the credit of insurance companies. The fund pays premiums for the
insurance either directly or indirectly, which increases the credit safety
of the fund's investments, but decreases its yield.
The insurance feature provides high credit quality to the fund's portfolio,
but the fund may also invest in some uninsured securities that are judged
by FMR to be of investment-grade quality. The fund normally invests in
long-term bonds, generally maintaining a dollar-weighted average maturity
of at least 20 years, although it may invest in obligations of any
maturity. FMR normally invests so that at least 80% of the fund's income
distributions are free from federal and New York State and City income
taxes.
NEW YORK TAX-FREE HIGH YIELD seeks high current income that is free from
federal income tax and New York State and City income taxes by investing
primarily in municipal securities judged by FMR to be of investment-grade
quality, although it can also invest in lower-quality securities. The fund
normally invests in long-term bonds, generally maintaining a
dollar-weighted average maturity of at least 15 years ,
although it may invest in obligations of any maturity. FMR normally invests
so that at least 80% of the fund's income distributions are free from
federal and New York State and City income taxes.
EACH FUND'S yield and each bond fund's share price change daily based on
interest rate changes and on the quality and maturity of its investments.
In general, bond prices rise when interest rates fall, and vice versa. This
effect is usually more pronounced for longer-term securities. Lower-quality
securities offer higher yields, but also carry more risk.
Each fund's performance is closely tied to the economic and political
conditions within the state of New York. Both the city and state of New
York have recently experienced significant financial difficulty, and the
state's credit standing is one of the lowest in the country.
If you are subject to the federal alternative minimum tax, you should note
that each fund may invest a portion of its assets in municipal
securities issued to finance private activities. The interest from these
investments is a tax-preference item for purposes of the tax.
FMR normally invests each fund's assets according to its investment
strategy. The funds do not expect to invest in federally taxable
obligations, and the bond funds also do not expect to invest in state
taxable obligations. When FMR considers it appropriate for defensive
purposes , however, it temporarily may invest substantially in
short-term instruments, may hold a substantial amount of uninvested
cash, or may invest more than normally permitted in taxable
obligations.
SECURITIES AND INVESTMENT PRACTICES
The following pages contain more detailed information about types of
instruments in which a fund may invest, and strategies FMR may
employ in pursuit of a fund ' s investment objective. A summary
of risks and restrictions associated with these instrument types and
investment practices is included as well. Policies and limitations are
considered at the time of purchase; the sale of instruments is not required
in the event of a subsequent change in circumstances.
FMR may not buy all of these instruments or use all of these techniques to
the full extent permitted unless it believes that doing so will help the
funds achieve their goals. As a shareholder, you will receive financial
reports every six months detailing fund holdings and describing recent
investment activities.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers to
borrow money from investors. The issuer pays the investor a fixed or
variable rate of interest, and must repay the amount borrowed at maturity.
Some debt securities, such as zero coupon bonds, do not pay current
interest, but are purchased at a discount from their face values. Debt
securities have varying degrees of quality and varying levels of
sensitivity to changes in interest rates. Longer-term bonds are generally
more sensitive to interest rate changes than short-term bonds.
Lower-quality debt securities may have speculative characteristics, and
involve greater risk of default or price changes due to changes in the
issuer's creditworthiness. The market prices of these securities may
fluctuate more than higher-quality securities and may decline significantly
in periods of general or regional economic difficulty.
The table on page 14 provides a summary of ratings assigned to debt
holdings (not including money market instruments) in New York Tax-Free High
Yield's portfolio. These figures are dollar-weighted averages of month-end
portfolio holdings during fiscal 1994, and are presented as a percentage of
total investments. These percentages are historical and do not necessarily
indicate the fund's current or future debt holdings.
NEW YORK TAX-FREE HIGH YIELD
Fiscal 1994 Debt Holdings, by Rating MOODY'S STANDARD &
POOR'S
INVESTORS SERVICE, INC. CORPORATION
Rating Average A Rating Averag
eA
INVESTMENT GRADE
Highest quality Aaa AAA
High quality Aa 48.6 % AA 69.3 %
Upper-medium grade A A
Medium grade Baa 39.7 % BBB 22.1 %
LOWER QUALITY
Moderately speculative Ba 0.2 % BB 0.0 %
Speculative B 0.0 % B 0.0 %
Highly speculative Caa 0.0 % CCC 0.0 %
Poor quality Ca CC
Lowest quality, no interest C C
In default, in arrears -- D 0.0 %
88.5 % 91.4 %
A THE DOLLAR-WEIGHTED AVERAGE OF DEBT SECURITIES NOT RATED BY MOODY'S OR
S&P AMOUNTED TO 1.0 %. THIS MAY INCLUDE SECURITIES RATED BY OTHER
NATIONALLY RECOGNIZED RATING SERVICES, AS WELL AS UNRATED SECURITIES.
FMR
HAS DETERMINED THAT UNRATED SECURITIES THAT ARE LOWER-QUALITY ACCOUNT
FOR
0.4% OF THE FUND'S TOTAL INVESTMENTS. REFER TO THE F UNDS'
STATEMENT OF
ADDITIONAL INFORMATION FOR A MORE COMPLETE DISCUSSION OF THESE RATINGS.
0.0%
0.0%
RESTRICTIONS: New York Tax-Free Insured does not currently intend to invest
more than 35% of its assets in uninsured securities, and does not currently
intend to invest in uninsured securities judged by FMR to be of
equivalent quality to those rated below Baa by Moody's or BBB by
S&P . New York Tax-Free High Yield does not currently intend to
invest more than one-third of its assets in bonds judged by FMR to
be of equivalent quality to those rated Ba or lower by Moody's
and BB or lower by S&P, and does not currently intend to invest in
bonds of equivalent quality to bonds rated lower than B. The fund
does not currently intend to invest in bonds rated below Caa by Moody's or
CCC by S&P.
MUNICIPAL SECURITIES are issued to raise money for a variety of public
purposes, including general financing for state and local governments, or
financing for specific projects or public facilities. Municipal securities
may be issued in anticipation of future revenues, and may be backed by the
full taxing power of a municipality, the revenues from a specific project,
or the credit of a private organization. A security's credit may be
enhanced by a bank, insurance company, or other financial institution. A
fund may own a municipal security directly or through a participation
interest.
STATE TAX-FREE SECURITIES include municipal obligations issued by the state
of New York or its counties, municipalities, authorities, or other
subdivisions. The ability of issuers to repay their debt can be affected by
many factors that impact the economic vitality of either the state or a
region within the state.
Other state tax-free securities include general obligations of U.S.
territories and possessions such as Guam, the Virgin Islands, and Puerto
Rico, and their political subdivisions and public corporations. The economy
of Puerto Rico is closely linked to the U.S. economy, and will depend on
the strength of the U.S. dollar, interest rates, the price stability of oil
imports, and the continued existence of favorable tax incentives. Recent
legislation reduced these incentives, but it is impossible to predict what
impact the changes will have.
MUNICIPAL LEASE OBLIGATIONS are used by municipalities to acquire land,
equipment, or facilities. If the municipality stops making payments or
transfers its obligations to a private entity, the obligation could lose
value or become taxable.
PRIVATE ENTITIES may be involved in some municipal securities. For example,
industrial revenue bonds are backed by private entities, and resource
recovery bonds often involve private corporations. The viability of a
project or tax incentives could affect the value and credit quality of
these securities.
ASSET-BACKED SECURITIES may include pools of purchase contracts, financing
leases, or sales agreements entered into by municipalities. These
securities usually rely on continued payments by a municipality, and may
also be subject to prepayment risk.
VARIABLE- AND FLOATING-RATE INSTRUMENTS may have interest rates that move
in tandem with a benchmark, helping to stabilize their prices. Inverse
floaters have interest rates that move in the opposite direction from the
benchmark, making the instrument's market value more volatile.
PUT FEATURES entitle the holder to put (sell back) an instrument to the
issuer or a financial intermediary. In exchange for this benefit, a fund
may pay periodic fees or accept a lower interest rate. Demand features,
standby commitments, and tender options are types of put features.
ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to
increase or decrease its exposure to changing security prices, interest
rates, or other factors that affect security values. These techniques may
involve derivative transactions such as buying and selling options and
futures contracts and purchasing indexed securities.
FMR can use these practices to adjust the risk and return characteristics
of a fund's portfolio of investments. If FMR judges market conditions
incorrectly or employs a strategy that does not correlate well with the
fund's investments, these techniques could result in a loss, regardless of
whether the intent was to reduce risk or increase return. These techniques
may increase the volatility of the fund and may involve a small investment
of cash relative to the magnitude of the risk assumed. In addition, these
techniques could result in a loss if the counterparty to the transaction
does not perform as promised.
WHEN-ISSUED AND DELAYED-DELIVERY TRANSACTIONS are trading practices in
which payment and delivery for the securities take place at a future date.
The market value of a security could change during this period, which could
affect a fund's yield or the market value of its assets.
ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined by
FMR, under the supervision of the Board of Trustees, to be illiquid, which
means that they may be difficult to sell promptly at an acceptable price.
The sale of other securities may be subject to legal restrictions.
Difficulty in selling securities may result in a loss or may be costly to a
fund.
RESTRICTIONS: A fund may not purchase a security if, as a result, more than
10% of its assets would be invested in illiquid securities.
DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce the
risks of investing. This may include limiting the amount of money invested
in any one issuer or, on a broader scale, in any one industry or type of
project. Economic, business, or political changes can affect all securities
of a similar type. A fund that is not diversified may be more sensitive to
these changes, and also to changes in the market value of a single issuer
or industry.
RESTRICTIONS: The funds are considered non-diversified. Generally,
to meet federal tax requirements at the close of each quarter , a
fund does not invest more than 25% of its total assets in any one issuer
and, with respect to 50% of total assets, does not invest more than 5% of
its total assets in any one issuer. These limitations do not apply to U.S.
government securities. A fund may invest more than 25% of its total assets
in tax-free securities that finance similar types of projects. New York
Tax-Free Insured may invest more than 25% of its assets in bonds insured by
the same insurance company.
BORROWING. A fund may borrow from banks or from other funds advised by FMR,
or through reverse repurchase agreements. If a bond fund borrows money, its
share price may be subject to greater fluctuation until the borrowing is
paid off. If the fund makes additional investments while borrowings are
outstanding, this may be considered a form of leverage.
RESTRICTIONS: A fund may borrow only for temporary or emergency purposes,
but not in an amount exceeding 33% of its total assets.
FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS
Some of the policies and restrictions discussed on the preceding pages are
fundamental, that is, subject to change only by shareholder approval. The
following paragraphs restate all those that are fundamental. All policies
stated throughout this prospectus, other than those identified in the
following paragraphs, can be changed without shareholder approval.
NEW YORK TAX-FREE MONEY MARKET seeks as high a level of current income
exempt from federal income tax and New York State and City income taxes as
is consistent with preservation of capital. The fund will normally invest
so that at least 80% of its income distributions are free from federal
income tax.
NEW YORK TAX-FREE INSURED seeks as high a level of current income, exempt
from federal and New York State and City income taxes, available from
investing primarily in municipal securities that are covered by insurance
guaranteeing the timely payment of principal and interest. FMR will invest
the fund's assets primarily in municipal bonds that are (1) insured under
an insurance policy obtained by the issuer or underwriter; or (2) insured
under an insurance policy purchased by the fund. Insurance will cover the
timely payment of interest and principal on municipal obligations and will
be retained from recognized insurers. The fund may invest in uninsured
municipal obligations judged to be of quality equivalent to the four
highest ratings assigned by Moody's and S&P (Baa, BBB, or better).
Under normal market conditions, such uninsured obligations may not exceed
35% of the fund's assets. The fund will normally invest so that at least
80% of its income distributions are exempt from federal and New York State
and City income taxes. During periods when FMR believes that New York
municipals that meet the fund's standards are not available, the fund may
temporarily invest more than 20% of its assets in obligations that are only
federally tax-exempt.
NEW YORK TAX-FREE HIGH YIELD seeks as high a level of current income,
exempt from federal and New York State and City income taxes, available
from investing primarily in municipal securities judged by FMR to be of
investment-grade quality. The fund may invest up to one-third of its assets
in lower-quality bonds, but may not purchase bonds that are judged by FMR
to be equivalent quality to those rated lower than B. The fund will
normally invest so that at least 80% of its income distributions are exempt
from federal and New York State and City income taxes. During periods when
FMR believes that New York municipals that meet the fund's standards are
not available, the fund may temporarily invest more than 20% of its assets
in obligations that are only federally tax-exempt.
EACH FUND may borrow only for temporary or emergency purposes, but not in
an amount exceeding 33% of its total assets.
BREAKDOWN OF EXPENSES
Like all mutual funds, the funds pay fees related to their daily
operations. Expenses paid out of a fund's assets are reflected in its share
price or dividends; they are neither billed directly to shareholders nor
deducted from shareholder accounts.
Each fund pays a MANAGEMENT FEE to FMR for managing its investments and
business affairs. FMR in turn pays fees to an affiliate who provides
assistance with these services for New York Tax-Free Money Market. Each
fund also pays OTHER EXPENSES, which are explained on page 18.
FMR may, from time to time, agree to reimburse the funds for management
fees and other expenses above a specified limit. FMR retains the ability to
be repaid by a fund if expenses fall below the specified limit prior to the
end of the fiscal year. Reimbursement arrangements, which may be terminated
at any time without notice, can decrease a fund's expenses and boost its
performance.
MANAGEMENT FEE
The management fee is calculated and paid to FMR every month. The fee is
calculated by adding a group fee rate to an individual fund fee rate, and
multiplying the result by the fund's average net assets.
The group fee rate is based on the average net assets of all the mutual
funds advised by FMR. This rate cannot rise above .37%, and it drops as
total assets under management increase.
For January 1994, the group fee rate was .1609 %. Each fund's
individual fund fee rate is .25%. Each fund's total management fee rate for
fiscal 1994 was .41 %.
UNDERSTANDING THE

MANAGEMENT FEE
The management fee FMR
receives is designed to be
responsive to changes in
FMR's total assets under
management. Building this
variable into the fee
calculation assures
shareholders that they will
pay a lower rate as FMR's
assets under management
increase.
(checkmark)
FMR HAS A SUB-ADVISORY AGREEMENT with FTX, which has primary responsibility
for providing investment management for New York Tax-Free Money Market,
while FMR retains responsibility for providing other management services.
FMR pays FTX 50% of its management fee (before expense reimbursements) for
these services.
OTHER EXPENSES
While the management fee is a significant component of the funds' annual
operating costs, the funds have other expenses as well.
FSC performs many transaction and accounting functions. These services
include processing shareholder transactions, valuing each fund's
investments, and handling securities loans. In fiscal 1994, FSC received
fees equal to .18 %, .15 %, and .15 %, respectively, of
New York Tax-Free Money Market's, New York Tax-Free Insured's, and New York
Tax-Free High Yield's average net assets.
The funds also pay other expenses, such as legal, audit, and custodian
fees; proxy solicitation costs; and the compensation of trustees who are
not affiliated with Fidelity.
Each fund has adopted a Distribution and Service Plan. These plans
recognize that FMR may use its resources, including management fees, to pay
expenses associated with the sale of fund shares. This may include payments
to third parties, such as banks or broker-dealers, that provide shareholder
support services or engage in the sale of the fund's shares. It is
important to note, however, that the funds do not pay FMR any separate fees
for this service.
For fiscal 1994, the portfolio turnover rates for New York Tax-Free Insured
and New York Tax-Free High Yield were 48 % and 70 %,
respectively. These rates vary from year to year.
YOUR ACCOUNT

WAYS TO SET UP YOUR ACCOUNT
INDIVIDUAL OR JOINT TENANT
FOR YOUR GENERAL INVESTMENT NEEDS
Individual accounts are owned by one person. Joint accounts can have two or
more owners (tenants).
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA)
TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS
These custodial accounts provide a way to give money to a child and obtain
tax benefits. An individual can give up to $10,000 a year per child without
paying federal gift tax. Depending on state laws, you can set up a
custodial account under the Uniform Gifts to Minors Act (UGMA) or the
Uniform Transfers to Minors Act (UTMA).
TRUST
FOR MONEY BEING INVESTED BY A TRUST
The trust must be established before an account can be opened.
BUSINESS OR ORGANIZATION
FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, OR OTHER
GROUPS
Requires a special application.
HOW TO BUY SHARES
EACH FUND'S SHARE PRICE, called net asset value (NAV), is calculated every
business day. New York Tax-Free Money Market is managed to keep its share
price stable at $1.00. Each fund's shares are sold without a sales charge.
Shares are purchased at the next share price calculated after your
investment is received and accepted. Share price is normally calculated at
4 p.m. Eastern time, and also at noon for New York Tax-Free Money Market.
IF YOU ARE NEW TO FIDELITY, complete and sign an account application and
mail it along with your check. You may also open your account in person or
by wire as described on page . If there is no application accompanying this
prospectus, call 1-800-544-8888.
IF YOU ALREADY HAVE MONEY INVESTED IN A FIDELITY FUND, you can:
(bullet) Mail in an application with a check, or
(bullet) Open your account by exchanging from another Fidelity fund.
If you buy shares by check or Fidelity Money Line(Registered trademark),
and then sell those shares by any method other than by exchange to another
Fidelity fund, the payment may be delayed for up to seven business days to
ensure that your previous investment has cleared.
MINIMUM INVESTMENTS
TO OPEN AN ACCOUNT $2,500
For New York Money Market $5,000
TO ADD TO AN ACCOUNT $250
Through automatic investment plans $100
MINIMUM BALANCE $1,000

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<S> <C> <C>
TO OPEN AN ACCOUNT TO ADD TO AN ACCOUNT

Phone 1-800-544-777 (phone_graphic) (bullet) Exchange from another (bullet) Exchange from another
Fidelity fund account Fidelity fund account
with the same with the same
registration, including registration, including
name, address, and name, address, and
taxpayer ID number. taxpayer ID number.
(bullet) Use Fidelity Money
Line to transfer from
your bank account. Call
before your first use to
verify that this service
is in place on your
account. Maximum
Money Line: $50,000.

</TABLE>

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<CAPTION>
<S> <C> <C>
Mail (mail_graphic) (bullet) Complete and sign the (bullet) Make your check
application. Make your payable to the complete
check payable to the name of the fund.
complete name of the Indicate your fund
fund of your choice. account number on
Mail to the address your check and mail to
indicated on the the address printed on
application. your account statement.
(bullet) Exchange by mail: call
1-800-544-6666 for
instructions.

</TABLE>

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<CAPTION>
<S> <C> <C>
In Person (hand_graphic) (bullet) Bring your application (bullet) Bring your check to a
and check to a Fidelity Fidelity Investor Center.
Investor Center. Call Call 1-800-544-9797 for
1-800-544-9797 for the the center nearest you.
center nearest you.

</TABLE>

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<CAPTION>
<S> <C> <C>
Wire (wire_graphic) (bullet) Call 1-800-544-7777 to (bullet) Wire to:
set up your account Bankers Trust
and to arrange a wire Company,
transaction. Bank Routing
(bullet) Wire within 24 hours to: #021001033,
Bankers Trust Account #00163053.
Company, Specify the complete
Bank Routing name of the fund and
#021001033, include your account
Account #00163053. number and your
Specify the complete name.
name of the fund and
include your new
account number and
your name.

</TABLE>

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<CAPTION>
<S> <C> <C>
Automatically (automatic_graphic) (bullet) Not available. (bullet) Use Fidelity Automatic
Account Builder. Sign
up for this service
when opening your
account, or call
1-800-544-6666 to add
it.

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HOW TO SELL SHARES
You can arrange to take money out of your fund account at any time by
selling (redeeming) some or all of your shares. Your shares will be sold at
the next share price calculated after your order is received and accepted.
Share price is normally calculated at 4 p.m. Eastern time, and also at noon
for New York Tax-Free Money Market.
TO SELL SHARES THROUGH YOUR FIDELITY ULTRA SERVICE OR FIDELITYPLUS ACCOUNT,
call 1-800-544-6262 to receive a handbook with instructions.
IF YOU ARE SELLING SOME BUT NOT ALL OF YOUR SHARES, leave at least $1,000
worth of shares in the account to keep it open.
TO SELL SHARES BY BANK WIRE OR FIDELITY MONEY LINE, you will need to sign
up for these services in advance.
CERTAIN REQUESTS MUST INCLUDE A SIGNATURE GUARANTEE. It is designed to
protect you and Fidelity from fraud. Your request must be made in writing
and include a signature guarantee if any of the following situations apply:
(bullet) You wish to redeem more than $100,000 worth of shares,
(bullet) Your account registration has changed within the last 30 days,
(bullet) The check is being mailed to a different address than the one on
your account (record address),
(bullet) The check is being made payable to someone other than the account
owner, or
(bullet) The redemption proceeds are being transferred to a Fidelity
account with a different registration.
You should be able to obtain a signature guarantee from a bank, broker
(including Fidelity Investor Centers), dealer, credit union (if authorized
under state law), securities exchange or association, clearing agency, or
savings association. A notary public cannot provide a signature guarantee.
SELLING SHARES IN WRITING
Write a "letter of instruction" with:
(bullet) Your name,
(bullet) The fund's name,
(bullet) Your fund account number,
(bullet) The dollar amount or number of shares to be redeemed, and
(bullet) Any other applicable requirements listed in the table at right.
Unless otherwise instructed, Fidelity will send a check to the record
address. Deliver your letter to a Fidelity Investor Center, or mail it to:
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
CHECKWRITING
If you have a checkbook for your account, you may write an unlimited number
of checks. Do not, however, try to close out your account by check.
ACCOUNT TYPE SPECIAL REQUIREMENTS

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Phone 1-800-544-777 (phone_graphic) All account types (bullet) Maximum check request:
$100,000.
(bullet) For Money Line transfers to
your bank account; minimum:
$10; maximum: $100,000.
(bullet) You may exchange to other
Fidelity funds if both
accounts are registered with
the same name(s), address,
and taxpayer ID number.

Mail or in Person (mail_graphic)(hand_graphic) Individual, Joint (bullet) The letter of instruction must
Tenant, be signed by all persons
Sole Proprietorship required to sign for
, UGMA, UTMA transactions, exactly as their
Trust names appear on the
account.
(bullet) The trustee must sign the
letter indicating capacity as
Business or trustee. If the trustee's name
Organization is not in the account
registration, provide a copy of
the trust document certified
within the last 60 days.
(bullet) At least one person
Executor, authorized by corporate
Administrator, resolution to act on the
Conservator, account must sign the letter.
Guardian (bullet) Include a corporate
resolution with corporate seal
or a signature guarantee.
(bullet) Call 1-800-544-6666 for
instructions.

Wire (wire_graphic) All account types (bullet) You must sign up for the wire
feature before using it. To
verify that it is in place, call
1-800-544-6666. Minimum
wire: $5,000.
(bullet) Your wire redemption request
must be received by Fidelity
before 4 p.m. Eastern time
for money to be wired on the
next business day.

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Check (check_graphic) All account types (bullet) Minimum check: $500.
(bullet) All account owners must sign
a signature card to receive a
checkbook.

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INVESTOR SERVICES
Fidelity provides a variety of services to help you manage your account.
INFORMATION SERVICES
FIDELITY'S TELEPHONE REPRESENTATIVES are available 24 hours a day, 365 days
a year. Whenever you call, you can speak with someone equipped to provide
the information or service you need.
24-HOUR SERVICE
ACCOUNT ASSISTANCE
1-800-544-6666
ACCOUNT BALANCES
1-800-544-7544
ACCOUNT TRANSACTIONS
1-800-544-7777
PRODUCT INFORMATION
1-800-544-8888
QUOTES
1-800-544-8544
RETIREMENT ACCOUNT
ASSISTANCE
1-800-544-4774
AUTOMATED SERVICE
(checkmark)
STATEMENTS AND REPORTS that Fidelity sends to you include the following:
(bullet) Confirmation statements (after every transaction, except
reinvestments, that affects your account balance or your account
registration)
(bullet) Account statements (quarterly)
(bullet) Financial reports (every six months)

To reduce expenses, only one copy of most financial reports will be mailed
to your household, even if you have more than one account in the fund. Call
1-800-544-6666 if you need copies of financial reports or historical
account information.
TRANSACTION SERVICES
EXCHANGE PRIVILEGE. You may sell your fund shares and buy shares of other
Fidelity funds by telephone or in writing.
Note that exchanges out of a fund are limited to four per calendar year
(except for New York Tax-Free Money Market), and that they may have tax
consequences for you. For details on policies and restrictions
governing exchanges, including circumstances under which a shareholder's
exchange privilege may be suspended or revoked, see page .
SYSTEMATIC WITHDRAWAL PLANS let you set up monthly or quarterly redemptions
from your account.
FIDELITY MONEY LINE(Registered trademark) enables you to transfer money by
phone between your bank account and your fund account. Most transfers are
complete within three business days of your call.
REGULAR INVESTMENT PLANS
One easy way to pursue your financial goals is to invest money regularly.
Fidelity offers convenient services that let you transfer money into your
fund account, or between fund accounts, automatically. While regular
investment plans do not guarantee a profit and will not protect you against
loss in a declining market, they can be an excellent way to invest for a
home, educational expenses, and other long-term financial goals.
REGULAR INVESTMENT PLANS

FIDELITY AUTOMATIC ACCOUNT BUILDERSM
TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY FUND

MINIMUM FREQUENCY SETTING UP OR CHANGING
$100 Monthly or (bullet) For a new account, complete the
quarterly appropriate section on the fund
application.
(bullet) For existing accounts, call
1-800-544-6666 for an application.
(bullet) To change the amount or frequency of
your investment, call 1-800-544-6666 at
least three business days prior to your
next scheduled investment date.

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DIRECT DEPOSIT
TO SEND ALL OR A PORTION OF YOUR PAYCHECK OR GOVERNMENT CHECK TO A FIDELITY FUNDA

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MINIMUM FREQUENCY SETTING UP OR CHANGING
$100 Every pay (bullet) Check the appropriate box on the fund
period application, or call 1-800-544-6666 for an
authorization form.
(bullet) Changes require a new authorization
form.

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FIDELITY AUTOMATIC EXCHANGE SERVICE
TO MOVE MONEY FROM A FIDELITY MONEY MARKET FUND TO ANOTHER FIDELITY FUND

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MINIMUM FREQUENCY SETTING UP OR CHANGING
$100 Monthly, (bullet) To establish, call 1-800-544-6666 after
bimonthly, both accounts are opened.
quarterly, or (bullet) To change the amount or frequency of
annually your investment, call 1-800-544-6666.

</TABLE>

A BECAUSE BOND FUND SHARE PRICES FLUCTUATE, THOSE FUNDS MAY NOT BE
APPROPRIATE CHOICES FOR DIRECT DEPOSIT OF YOUR ENTIRE CHECK.
SHAREHOLDER AND ACCOUNT POLICIES

DIVIDENDS, CAPITAL GAINS, AND TAXES
Each fund distributes substantially all of its net investment income and
capital gains, if any, to shareholders each year. Income dividends are
declared daily and paid monthly. Capital gains earned by the bond funds are
normally distributed in March and December.
DISTRIBUTION OPTIONS
When you open an account, specify on your application how you want to
receive your distributions. If the option you prefer is not listed on the
application, call 1-800-544-6666 for instructions. Each fund offers four
options (three for New York Tax-Free Money Market):
1. REINVESTMENT OPTION. Your dividend and capital gain distributions, if
any, will be automatically reinvested in additional shares of the fund. If
you do not indicate a choice on your application, you will be assigned this
option.
2. INCOME-EARNED OPTION. Your capital gain distributions, if any, will be
automatically reinvested, but you will be sent a check for each dividend
distribution. This option is not available for New York Tax-Free Money
Market.
3. CASH OPTION. You will be sent a check for your dividend and capital gain
distributions, if any.
4. DIRECTED DIVIDENDS(Registered trademark) OPTION. Your dividend and
capital gain distributions, if any, will be automatically invested in
another identically registered Fidelity fund.
Dividends will be reinvested at the fund's NAV on the last day of the
month. Capital gain distributions, if any, will be reinvested at the NAV as
of the date the fund deducts the distribution from its NAV. The mailing of
distribution checks will begin within seven days.
UNDERSTANDING
DISTRIBUTIONS
As a fund shareholder, you
are entitled to your share of
the fund's net income and
gains on its investments. The
fund passes its earnings
along to its investors as
DISTRIBUTIONS.
Each fund earns interest from
its investments. These are
passed along as DIVIDEND
DISTRIBUTIONS. The fund may
realize capital gains if it sells
securities for a higher price
than it paid for them. These
are passed along as CAPITAL
GAIN DISTRIBUTIONS. Money
market funds usually don't
make capital gain
distributions.
(checkmark)
TAXES
As with any investment, you should consider how an investment in a tax-free
fund could affect you. Below are some of the funds' tax implications.
TAXES ON DISTRIBUTIONS. Interest income that a fund earns is distributed to
shareholders as income dividends. Interest that is federally tax-free
remains tax-free when it is distributed.
However, gain on the sale of tax-free bonds results in taxable
distributions. Short-term capital gains and a portion of the gain on bonds
purchased at a discount are taxed as dividends. Long-term capital gain
distributions are taxed as long-term capital gains. These distributions are
taxable when they are paid, whether you take them in cash or reinvest them.
However, distributions declared in December and paid in January are taxable
as if they were paid on December 31. Fidelity will send you and the IRS a
statement showing the tax status of the distributions paid to you in the
previous year.
The interest from some municipal securities is subject to the federal
alternative minimum tax. Each fund may invest up to 20% of its
assets in these securities. Individuals who are subject to the tax
must report this interest on their tax returns.
To the extent that a fund's income dividends are derived from state
tax-free investments, they will be free from New York State and City income
taxes.
During fiscal 1994, 100 % of each fund's income dividends was free
from federal income tax and New York State and City income taxes. 15.3%
of New York Tax-Free Money Market's and 0.2% of New York Tax-Free
Insured's income dividends were subject to the federal alternative
minimum tax.
TAXES ON TRANSACTIONS. Your bond fund redemptions - including exchanges to
other Fidelity funds - are subject to capital gains tax. A capital gain or
loss is the difference between the cost of your shares and the price you
receive when you sell them.
Whenever you sell shares of a fund, Fidelity will send you a confirmation
statement showing how many shares you sold and at what price. You will also
receive a consolidated transaction statement every January. However, it is
up to you or your tax preparer to determine whether this sale resulted in a
capital gain and, if so, the amount of tax to be paid. Be sure to keep your
regular account statements; the information they contain will be essential
in calculating the amount of your capital gains.
"BUYING A DIVIDEND." If you buy shares just before a fund deducts a capital
gain distribution from its NAV, you will pay the full price for the shares
and then receive a portion of the price back in the form of a taxable
distribution.
TRANSACTION DETAILS
THE FUNDS ARE OPEN FOR BUSINESS each day the New York Stock Exchange (NYSE)
is open. Fidelity normally calculates each fund's net asset value as of the
close of business of the NYSE, normally 4 p.m. Eastern time, and also at
noon for New York Tax-Free Money Market.
EACH FUND'S NAV is the value of a single share. The NAV is computed by
adding the value of the fund's investments, cash, and other assets,
subtracting its liabilities, and then dividing the result by the number of
shares outstanding.
The money market fund values the securities it owns on the basis of
amortized cost. This method minimizes the effect of changes in a security's
market value and helps the fund to maintain a stable $1.00 share price. For
the bond funds, assets are valued primarily on the basis of market
quotations, if available. Since market quotations are often unavailable,
assets are usually valued by a method that the Board of Trustees believes
accurately reflects fair value.
EACH FUND'S OFFERING PRICE (price to buy one share) and REDEMPTION PRICE
(price to sell one share) are its NAV.
WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify that
your Social Security or taxpayer identification number is correct and that
you are not subject to 31% backup withholding for failing to report income
to the IRS. If you violate IRS regulations, the IRS can require a fund to
withhold 31% of your taxable distributions and redemptions.
YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE. Note that Fidelity will
not be responsible for any losses resulting from unauthorized transactions
if it follows reasonable procedures designed to verify the identity of the
caller. Fidelity will request personalized security codes or other
information, and may also record calls. You should verify the accuracy of
your confirmation statements immediately after you receive them. If you do
not want the ability to redeem and exchange by telephone, call Fidelity for
instructions.
IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during periods
of unusual market activity), consider placing your order by mail or by
visiting a Fidelity Investor Center.
EACH FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING OF SHARES for a period
of time. Each fund also reserves the right to reject any specific purchase
order, including certain purchases by exchange. See "Exchange Restrictions"
on page . Purchase orders may be refused if, in FMR's opinion, they are of
a size that would disrupt management of a fund.
WHEN YOU PLACE AN ORDER TO BUY SHARES, your order will be processed at the
next offering price calculated after your order is received and accepted.
Note the following:
(bullet) All of your purchases must be made in U.S. dollars and checks
must be drawn on U.S. banks.
(bullet) Fidelity does not accept cash.
(bullet) When making a purchase with more than one check, each check must
have a value of at least $50.
(bullet) Each fund reserves the right to limit the number of checks
processed at one time.
(bullet) If your check does not clear, your purchase will be cancelled and
you could be liable for any losses or fees a fund or its transfer agent has
incurred.
(bullet) You begin to earn dividends as of the first business day
following the day of your purchase.
TO AVOID THE COLLECTION PERIOD associated with check and Money Line
purchases, consider buying shares by bank wire, U.S. Postal money order,
U.S. Treasury check, Federal Reserve check, or direct deposit instead.
YOU MAY BUY OR SELL SHARES OF THE FUNDS THROUGH A BROKER, who may charge
you a fee for this service. If you invest through a broker or other
institution, read its program materials for any additional service features
or fees that may apply.
CERTAIN FINANCIAL INSTITUTIONS that have entered into sales agreements with
Fidelity Distributors Corporation (FDC) may enter confirmed purchase orders
on behalf of customers by phone, with payment to follow no later than the
time when a fund is priced on the following business day. If payment is not
received by that time, the financial institution could be held liable for
resulting fees or losses.
WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at the
next NAV calculated after your request is received and accepted. Note the
following:
(bullet) Normally, redemption proceeds will be mailed to you on the next
business day, but if making immediate payment could adversely affect a
fund, it may take up to seven days to pay you.
(bullet) Shares will earn dividends through the date of redemption;
however, shares redeemed on a Friday or prior to a holiday will continue to
earn dividends until the next business day.
(bullet) Fidelity Money Line redemptions generally will be credited to
your bank account on the second or third business day after your phone
call.
(bullet) Each fund may hold payment on redemptions until it is reasonably
satisfied that investments made by check or Fidelity Money Line have been
collected, which can take up to seven business days.
(bullet) Redemptions may be suspended or payment dates postponed when the
NYSE is closed (other than weekends or holidays), when trading on the NYSE
is restricted, or as permitted by the SEC.
(bullet) If you sell shares by writing a check and the amount of the check
is greater than the value of your account, your check will be returned to
you and you may be subject to additional charges.
IF YOUR ACCOUNT BALANCE FALLS BELOW $1,000, you will be given 30 days'
notice to reestablish the minimum balance. If you do not increase your
balance, Fidelity reserves the right to close your account and send the
proceeds to you. Your shares will be redeemed at the NAV on the day your
account is closed.
FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing
historical account documents, that are beyond the normal scope of its
services.
FDC may, at its own expense, provide promotional incentives to qualified
recipients who support the sale of shares of the funds without
reimbursement from the funds. Qualified recipients are securities dealers
who have sold fund shares or others, including banks and other financial
institutions, under special arrangements in connection with FDC's sales
activities. In some instances, these incentives may be offered only to
certain institutions whose representatives provide services in connection
with the sale or expected sale of significant amounts of shares.
EXCHANGE RESTRICTIONS
As a shareholder, you have the privilege of exchanging shares of a fund for
shares of other Fidelity funds. However, you should note the following:
(bullet) The fund you are exchanging into must be registered for sale in
your state.
(bullet) You may only exchange between accounts that are registered in the
same name, address, and taxpayer identification number.
(bullet) Before exchanging into a fund, read its prospectus.
(bullet) If you exchange into a fund with a sales charge, you pay the
percentage-point difference between that fund's sales charge and any sales
charge you have previously paid in connection with the shares you are
exchanging. For example, if you had already paid a sales charge of 2% on
your shares and you exchange them into a fund with a 3% sales charge, you
would pay an additional 1% sales charge.
(bullet) Exchanges may have tax consequences for you.
(bullet) Because excessive trading can hurt fund performance and
shareholders, New York Tax-Free Insured and New York Tax-Free High Yield
reserve the right to temporarily or permanently terminate the exchange
privilege of any investor who makes more than four exchanges out of the
fund per calendar year. Accounts under common ownership or control,
including accounts with the same taxpayer identification number, will be
counted together for purposes of the four exchange limit.
(bullet) Each fund reserves the right to refuse exchange purchases by any
person or group if, in FMR's judgment, the fund would be unable to invest
the money effectively in accordance with its investment objective and
policies, or would otherwise potentially be adversely affected.
(bullet) Your exchanges may be restricted or refused if a fund receives or
anticipates simultaneous orders affecting significant portions of the
fund's assets. In particular, a pattern of exchanges that coincide with a
"market timing" strategy may be disruptive to a fund.
Although the funds will attempt to give you prior notice whenever they are
reasonably able to do so, they may impose these restrictions at any time.
The funds reserve the right to terminate or modify the exchange privilege
in the future.
OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose
administrative fees of up to $7.50 and redemption fees of up to 1.50% on
exchanges. Check each fund's prospectus for details.

This prospectus is printed on recycled paper using soy-based inks.

FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO
A FUND OF FIDELITY NEW YORK MUNICIPAL TRUST II
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO
A FUND OF FIDELITY NEW YORK MUNICIPAL TRUST
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO
A FUND OF FIDELITY NEW YORK MUNICIPAL TRUST
STATEMENT OF ADDITIONAL INFORMATION
MARCH 22, 1994
This Statement is not a prospectus but should be read in conjunction with
the funds' current Prospectus (dated March 22, 1994). Please retain this
document for future reference. The Annual Report for the fiscal
year ended January 31, 1994 is incorporated herein by reference. To
obtain an additional copy of the Prospectus or the Annual Report, please
call Fidelity Distributors Corporation at 1-800-544-8888.
TABLE OF CONTENTS PAGE

Investment Policies and Limitations

Special Factors Affecting New York

Special Factors Affecting Puerto Rico

Portfolio Transactions

Valuation of Portfolio Securities

Performance

Additional Purchase and Redemption Information

Distributions and Taxes

FMR

Trustees and Officers

Management Contracts

Distribution and Service Plans

Interest of FMR Affiliates

Description of the Trusts

Financial Statements

Appendix

INVESTMENT ADVISER
Fidelity Management & Research Company (FMR)
INVESTMENT SUB-ADVISER (MONEY MARKET FUND ONLY)
FMR Texas Inc. (FMR Texas)
DISTRIBUTOR
Fidelity Distributors Corporation (FDC)
TRANSFER AGENT
United Missouri Bank, N.A. (United Missouri) and Fidelity Service Co. (FSC)
NFR-ptb-394

1INVESTMENT POLICIES AND LIMITATIONS
The following policies and limitations supplement those set forth in the
Prospectus. Unless otherwise noted, whenever an investment policy or
limitation states a maximum percentage of a fund's assets that may be
invested in any security or other asset, or sets forth a policy regarding
quality standards, such standard or percentage limitation will be
determined immediately after and as a result of the fund's acquisition of
such security or other asset. Accordingly, any subsequent change in
values, net assets, or other circumstances will not be considered when
determining whether the investment complies with the fund's investment
policies and limitations.
Each fund's fundamental investment policies and limitations cannot be
changed without approval by a "majority of the outstanding voting
securities" (as defined in the Investment Company Act of 1940 (the 1940
Act)) of a fund. However, with respect to the money market fund, except
for the fundamental investment limitations set forth below, the investment
policies and limitations described in this Statement of Additional
Information are not fundamental and may be changed without shareholder
approval.
INVESTMENT LIMITATIONS OF NEW YORK TAX-FREE MONEY MARKET PORTFOLIO
(MONEY MARKET FUND)
THE FOLLOWING ARE THE MONEY MARKET FUND'S FUNDAMENTAL INVESTMENT
LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities;
(2) make short sales of securities;
(3) purchase any securities on margin, except for such short-term credits
as are necessary for the clearance of transactions;
(4) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of the value of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings that
come to exceed 33 1/3% of the fund's total assets by reason of a decline in
net assets will be reduced (within three business days) to the extent
necessary to comply with the 33 1/3% limitation;
(5) underwrite any issue of securities, except to the extent that the
purchase of municipal bonds in accordance with the fund's investment
objective, policies, and limitations, either directly from the issuer, or
from an underwriter for an issuer, may be deemed to be underwriting;
(6) purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities, or tax-exempt obligations issued or guaranteed by a U.S.
territory or possession or a state or local government, or a political
subdivision of any of the foregoing) if, as a result, more than 25% of the
fund's total assets would be invested in securities of companies whose
principal business activities are in the same industry;
(7) purchase or sell real estate, but this shall not prevent the fund from
investing in municipal bonds or other obligations secured by real estate or
interests therein;
(8) purchase or sell commodities or commodity (futures) contracts;
(9) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties (but this limit
does not apply to purchases of debt securities or repurchase agreements);
or
(10) invest in oil, gas, or other mineral exploration or development
programs.
Investment limitation (4) is construed in conformity with the 1940 Act,
and, accordingly, "three business days" means three days exclusive of
Sundays and holidays.

THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED
WITHOUT SHAREHOLDER APPROVAL.
(i) To meet federal tax requirements for qualification as a "regulated
investment company," the fund limits its investments so that at the close
of each quarter of its taxable year: (a) with regard to at least 50% of
total assets, no more than 5% of total assets are invested in the
securities of a single issuer, and (b) no more than 25% of total assets are
invested in the securities of a single issuer. Limitations (a) and (b) do
not apply to "Government securities" as defined for federal tax purposes.
(ii) The fund does not currently intend to sell securities short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (4)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(v) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vi) The fund does not currently intend to invest more than 25% of its
total assets in industrial revenue bonds related to a single industry.
(vii) The fund does not currently intend to purchase or sell futures
contracts or call options. This limitation does not apply to options
attached to, or acquired or traded together with, their underlying
securities, and does not apply to securities that incorporate features
similar to options or futures contracts.
(viii) The fund does not currently intend to engage in repurchase
agreements or make loans, but this limitation does not apply to purchases
of debt securities.
(ix) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.
(x) The fund does not currently intend to invest all of its assets in the
securities of a single open-end management investment company with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
For purposes of limitations (6) and (i), FMR identifies the issuer of a
security depending on its terms and conditions. In identifying the issuer,
FMR will consider the entity or entities responsible for payment of
interest and repayment of principal and the source of such payments; the
way in which assets and revenues of an issuing political subdivision are
separated from those of other political entities; and whether a
governmental body is guaranteeing the security.
For the money market fund's limitations on quality and maturity, see
the section entitled "Quality and Maturity" on page .
INVESTMENT LIMITATIONS OF NEW YORK TAX-FREE INSURED PORTFOLIO
(INSURED FUND)
THE FOLLOWING ARE THE INSURED FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities, or tax-exempt obligations issued or guaranteed by a U.S.
territory or possession or a state or local government, or a political
subdivision of any of the foregoing) if, as a result, more than 25% of the
fund's total assets would be invested in securities of companies whose
principal business activities are in the same industry;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business ) ;
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
the fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities);
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements; or
(8) invest in companies for the purpose of exercising control or
management.
(9) The fund may, notwithstanding any other fundamental investment policy
or limitation, invest all of its assets in the securities of a single
open-end management investment company with substantially the same
fundamental investment objective, policies, and limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED
WITHOUT SHAREHOLDER APPROVAL.
(i) To meet federal tax requirements for qualification as a "regulated
investment company," the fund limits its investments so that at the close
of each quarter of its taxable year: (a) with regard to at least 50% of
total assets, no more than 5% of total assets are invested in the
securities of a single issuer, and (b) no more than 25% of total assets are
invested in the securities of a single issuer. Limitations (a) and (b) do
not apply to "Government securities" as defined for federal tax purposes.
(ii) The fund does not currently intend to sell securities short, unless
it owns or has the right to obtain securities equivalent in kind and amount
to the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(v) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vi) The fund does not currently intend to invest more than 25% of its
total assets in industrial revenue bonds related to a single industry.
(vii) The fund does not currently intend to engage in repurchase
agreements or make loans, but this limitation does not apply to purchases
of debt securities.
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.
(ix) The fund does not currently intend to invest in oil, gas, or other
mineral exploration or development programs or leases.
(x) The fund does not currently intend to invest all of its assets in the
securities of a single open-end management investment company with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
For purposes of limitations (4) and (i), FMR identifies the issuer of a
security depending on its terms and conditions. In identifying the issuer,
FMR will consider the entity or entities responsible for payment of
interest and repayment of principal and the source of such payments; the
way in which assets and revenues of an issuing political subdivision are
separated from those of other political entities; and whether a
governmental body is guaranteeing the security.
For the insured fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
beginning on page .
INSURANCE FEATURE. Under normal market conditions, the insured fund will
invest primarily in municipal bonds that, at the time of purchase, either
are (1) insured under an insurance policy obtained by the issuer or
underwriter of such bonds at the time of their original issuance (issuer
insurance), or (2) insured under an insurance policy purchased by the fund
(portfolio insurance). If a municipal bond is already covered by issuer
insurance when acquired by the fund, then coverage will not be duplicated
by portfolio insurance; if a municipal bond is not covered by issuer
insurance, it may be covered by portfolio insurance purchased by the fund.
The fund may also purchase municipal notes that are insured, although, in
general, municipal notes are not presently issued with issuer insurance,
and the fund generally does not expect to cover municipal notes under its
portfolio insurance. Accordingly, the fund does not presently expect that
any significant portion of the municipal notes it purchases will be covered
by insurance. Securities other than municipal bonds and notes purchased by
the fund will not be covered by insurance. Based upon the expected
composition of the fund, FMR estimates that the annual premiums for
portfolio insurance will range from .10% to .35% of the fund's average net
assets. In the 1992 fiscal year, no portfolio insurance was purchased.
Although the insurance feature reduces certain financial risks, the
premiums for portfolio insurance, which are paid from the fund's assets,
and the restrictions on investments imposed by portfolio insurance
guidelines, reduce the fund's current yield.
Insurance will cover the timely payment of interest and principal on
municipal obligations and will be obtained from recognized insurers. In
order to be considered as eligible insurance by the fund, such insurance
policies must guarantee the timely payment of all interest and principal on
the municipal bonds as they become due. However, such insurance may
provide that in the event of non-payment of interest or principal when due,
with respect to an insured municipal bond, the insurer is not obligated to
make such payment until a specified time period (which may be 30 days or
more) after it has been notified by the fund that such non-payment has
occurred. For these purposes, a payment of principal is due only at final
maturity of the municipal bond and not at the time any earlier sinking fund
payment is due. The insurance does not guarantee the market value of the
municipal bonds or the value of the shares of the fund and, except as
described below and in the section entitled "Valuation of Portfolio
Securities," has no effect on the price or redemption value of fund shares.
Municipal bonds are generally eligible to be insured under portfolio
insurance if, at the time of purchase by the fund, they are identified
separately or by category in qualitative guidelines furnished by the
portfolio insurer and are in compliance with the aggregate limitations on
amounts set forth in such guidelines. Premium variations are based in part
on the rating of the municipal bond being insured at the time the fund
purchases the bond. The insurer may prospectively withdraw particular
municipal bonds from the classifications of bonds eligible for insurance or
change the aggregate amount limitation of each issue or category of
eligible municipal bonds, but must continue to insure the full amount of
bonds previously acquired which the insurer has indicated are eligible so
long as they remain in the fund's portfolio. The qualitative guidelines
and aggregate amount limitations established by the insurer from time to
time will not necessarily be the same as those the fund or FMR would use to
govern selection of municipal bonds for the fund's investments. Therefore,
from time to time, such guidelines and limitations may affect investment
decisions.
Because coverage under portfolio insurance terminates upon sale of a
municipal bond from the fund's portfolio, the insurance does not have any
effect on the resale value of such a bond. It is the fund's intention to
retain any insured municipal bonds that are in default or, in FMR's view,
in significant risk of default, and to place a value on the insurance
coverage because it guarantees that interest and principal will be paid.
This value will ordinarily be equal to the difference between the market
value of the defaulted security (or those in risk of default) and the
market value of similar securities that are not in default. As a result,
FMR may be limited in its ability to manage the fund's portfolio to the
extent that it holds defaulted municipal bonds, which will limit its
ability in certain circumstances to purchase other municipal bonds. While
a defaulted municipal bond is held by the fund, the fund continues to pay
the insurance premium thereon but also collects interest payments from the
insurer and retains the right to collect the full amount of principal from
the insurer when the municipal bond comes due. The fund expects that the
market value of a defaulted municipal bond covered by issuer insurance will
generally be greater than the market value of an otherwise comparable
defaulted municipal bond covered by portfolio insurance.
PRINCIPAL BOND INSURERS. AMBAC Indemnity Corporation (AMBAC Indemnity) is
a Wisconsin-domiciled stock insurance corporation regulated by the Office
of the Commissioner of Insurance of the State of Wisconsin and licensed to
do business in 50 states, the District of Columbia, and the Commonwealth of
Puerto Rico, with admitted assets of approximately $1.9 billion (unaudited)
and statutory capital of approximately $1.1 b illion (unaudited) as
of December 31 , 1993. Statutory capital consists of AMBAC
Indemnity's policyholders' surplus and statutory contingency reserve.
AMBAC Indemnity is a wholly-owned subsidiary of AMBAC Inc., a 100%
publicly-held company. Moody's and S&P have both assigned a triple-A
claims-paying ability rating to AMBAC Indemnity.
Capital Guaranty Insurance Company (Capital Guaranty) is a monoline
financial guaranty insurance company whose policies guaranty the timely
payment of principal and interest when due for payment (as defined in
Capital Guarantee coverage) on new issue and secondary market issue
municipal bond transactions. Capital Guaranty's claims-paying ability is
rated AAA by S&P. Therefore, if Capital Guaranty insures an issue with
a stand alone rating of less than "AAA," such issue would be "upgraded" to
AAA by virtue of Capital Guaranty's insurance. On December 31, 1993,
Capital Guaranty's statutory capital (unaudited, consisting of contingency
reserve and statutory policyholders' surplus) was over $190 million.
As of that date, Capital Guaranty's insured principal and interest
outstanding was over $12.9 billion.
FGIC Corporation, through its wholly owned subsidiary Financial Guaranty
Insurance Company, is a leading insurer of municipal bonds, including new
issues and bonds held in unit investment trusts and mutual funds.
Municipal bonds insured by Financial Guaranty are rated Aaa/AAA/AAA by
Moody's, S&P, and Fitch, respectively. In accordance with statutory
accounting principles, Financial Guaranty's capital base as of December 31,
1993 totalled $1 b illion, comprised of capital and surplus of
$777 million and a contingency reserve of $252 million.
Municipal Bond Investors Assurance Corporation (MBIA) is the monoline
insurance company created from an unincorporated association (the Municipal
Bond Insurance Association) through which its members wrote municipal bond
insurance on a several and not joint basis through 1986. Bond Investors
Guaranty Insurance Company (BIG) issued municipal bond insurance policies
guarantying the timely payment of principal and interest on new issue,
secondary market, and unit investment trust bonds. On January 5, 1990,
MBIA acquired all of the outstanding stock of Bond Investors Group, Inc.,
the parent of BIG. Through a reinsurance agreement, BIG ceded all of its
net insured risks, as well as its related unearned premium and contingency
reserves, to MBIA. Moody's rates all bond issues insured by MBIA and BIG
"Aaa" and short-term loans "MIG-1," both designated to be of the highest
quality; S&P rates all new issues insured by MBIA and BIG "AAA" Prime
Grade. As of December 31, 1992, MBIA (consolidated) had admitted assets of
$ 3 billion (unaudited), total liabilities of $2.1 billion
(unaudited), and total capital and surplus of $978 million
(unaudited) prepared in accordance with statutory accounting practices
prescribed or permitted by insurance regulatory authorities.
INVESTMENT LIMITATIONS OF NEW YORK TAX-FREE HIGH YIELD PORTFOLIO
(HIGH YIELD FUND)
THE FOLLOWING ARE THE HIGH YIELD FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS
SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of the value of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings that
come to exceed this amount will be reduced within three days (not including
Sundays and holidays) to the extent necessary to comply with the 33 1/3%
limitation;
(3) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities, or tax-exempt obligations issued or guaranteed by a U.S.
territory or possession or a state or local government, or a political
subdivision of any of the foregoing) if, as a result, more than 25% of the
fund's total assets would be invested in securities of companies whose
principal business activities are in the same industry;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business ) ;
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
the fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities);
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements; or
(8) invest in companies for the purpose of exercising control or
management.
(9) The fund may, notwithstanding any other fundamental investment policy
or limitation, invest all of its assets in the securities of a single
open-end management investment company with substantially the same
fundamental investment objective, policies, and limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED
WITHOUT SHAREHOLDER APPROVAL.
(i) To meet federal tax requirements for qualification as a "regulated
investment company," the fund limits its investments so that at the close
of each quarter of its taxable year: (a) with regard to at least 50% of
total assets, no more than 5% of total assets are invested in the
securities of a single issuer, and (b) no more than 25% of total assets are
invested in the securities of a single issuer. Limitations (a) and (b) do
not apply to "Government securities" as defined for federal tax purposes.
(ii) The fund does not currently intend to sell securities short, unless
it owns or has the right to obtain securities equivalent in kind and amount
to the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(v) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vi) The fund does not currently intend to invest more than 25% of its
total assets in industrial revenue bonds related to a single industry.
(vii) The fund does not currently intend to engage in repurchase
agreements or make loans, but this limitation does not apply to purchases
of debt securities.
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.
(ix) The fund does not currently intend to invest in oil, gas, or other
mineral exploration or development programs or leases.
(x) The fund does not currently intend to invest all of its assets in the
securities of a single open-end management investment company with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
For purposes of limitations (4) and (i), FMR identifies the issuer of a
security depending on its terms and conditions. In identifying the issuer,
FMR will consider the entity or entities responsible for payment of
interest and repayment of principal and the source of such payments; the
way in which assets and revenues of an issuing political subdivision are
separated from those of other political entities; and whether a
governmental body is guaranteeing the security.
For the high yield fund's limitations on futures and options transactions,
see the section entitled "Limitations on Futures and Options Transactions"
beginning on page .
AFFILIATED BANK TRANSACTIONS. A fund may engage in
transactions with financial institutions that are, or may be considered to
be, "affiliated persons" of the fund under the Investment Company Act of
1940. These transactions may include repurchase agreements with
custodian banks; short-term obligations of, and repurchase agreements with,
the 50 largest U.S. banks (measured by deposits); municipal securities;
U.S. government securities with affiliated financial institutions
that are primary dealers in these securities; short-term currency
transactions; and short-term borrowing s . In accordance with
exemptive orders issued by the Securities and Exchange Commission, the
Board of Trustees has established and periodically reviews procedures
applicable to transactions involving affiliated financial institutions.
2QUALITY AND MATURITY (MONEY MARKET FUND ONLY). Pursuant to procedures
adopted by the Board of Trustees, the fund may purchase only high-quality
securities that FMR believes present minimal credit risks. To be
considered high-quality, a security must be rated in accordance with
applicable rules in one of the two highest categories for short-term
securities by at least two nationally recognized rating services (or by
one, if only one rating service has rated the security) or, if unrated,
judged to be of equivalent quality by FMR. The fund must limit its
investments to securities with remaining maturities of 397 days or less and
must maintain a dollar-weighted average maturity of 90 days or less.
DELAYED-DELIVERY TRANSACTIONS. Each fund may buy and sell securities on a
delayed-delivery or when-issued basis. These transactions involve a
commitment by a fund to purchase or sell specific securities at a
predetermined price or yield, with payment and delivery taking place after
the customary settlement period for that type of security (and more than
seven days in the future). Typically, no interest accrues to the purchaser
until the security is delivered. The insured and high yield funds may
receive fees for entering into delayed-delivery transactions.
When purchasing securities on a delayed-delivery basis, each fund assumes
the rights and risks of ownership, including the risk of price and yield
fluctuations. Because a fund is not required to pay for securities until
the delivery date, these risks are in addition to the risks associated with
the fund's other investments. If a fund remains substantially fully
invested at a time when delayed-delivery purchases are outstanding, the
delayed-delivery purchases may result in a form of leverage. When
delayed-delivery purchases are outstanding, the fund will set aside
appropriate liquid assets in a segregated custodial account to cover its
purchase obligations. When a fund has sold a security on a
delayed-delivery basis, the fund does not participate in further gains or
losses with respect to the security. If the other party to a
delayed-delivery transaction fails to deliver or pay for the securities,
the fund could miss a favorable price or yield opportunity, or could suffer
a loss.
Each fund may renegotiate delayed-delivery transactions after they are
entered into, and may sell underlying securities before they are delivered,
which may result in capital gains or losses.
REFUNDING CONTRACTS. The insured and high yield funds may purchase
securities on a when-issued basis in connection with the refinancing of an
issuer's outstanding indebtedness. Refunding contracts require the issuer
to sell and a fund to buy refunded municipal obligations at a stated price
and yield on a settlement date that may be several months or several years
in the future. The funds generally will not be obligated to pay the full
purchase price if they fail to perform under a refunding contract.
Instead, refunding contracts generally provide for payment of liquidated
damages to the issuer (currently 15-20% of the purchase price). A fund may
secure its obligations under a refunding contract by depositing collateral
or a letter of credit equal to the liquidated damages provisions of the
refunding contract. When required by SEC guidelines, each fund will place
liquid assets in a segregated custodial account equal in amount to its
obligations under refunding contracts.
INVERSE FLOATERS. The insured and high yield funds may invest in inverse
floaters, which are instruments whose interest rates bear an inverse
relationship to the interest rate on another security or the value of an
index. Changes in the interest rate on the other security or index
inversely affect the residual interest rate paid on the inverse floater,
with the result that the inverse floater's price will be considerably more
volatile than that of a fixed-rate bond. For example, a municipal issuer
may decide to issue two variable-rate instruments instead of a single
long-term, fixed-rate bond. The interest rate on one instrument reflects
short-term interest rates, while the interest rate on the other instrument
(the inverse floater) reflects the approximate rate the issuer would have
paid on a fixed-rate bond, multiplied by two, minus the interest rate paid
on the short-term instrument. Depending on market availability, the two
portions may be recombined to form a fixed-rate municipal bond. The market
for inverse floaters is relatively new.
VARIABLE OR FLOATING RATE OBLIGATIONS bear variable or floating interest
rates and carry rights that permit holders to demand payment of the unpaid
principal balance plus accrued interest from the issuers or certain
financial intermediaries. Floating rate instruments have interest rates
that change whenever there is a change in a designated base rate while
variable rate instruments provide for a specified periodic adjustment in
the interest rate. These formulas are designed to result in a market value
for the instrument that approximates its par value.
With respect to the money market fund, a demand instrument with a
conditional demand feature must have received both a short-term and a
long-term high-quality rating or, if unrated, have been determined to be of
comparable quality pursuant to procedures adopted by the Board of Trustees.
A demand instrument with an unconditional demand feature may be acquired
solely in reliance upon a short-term high-quality rating or, if unrated,
upon a finding of comparable short-term quality pursuant to procedures
adopted by the Board of Trustees.
The funds may invest in fixed-rate bonds that are subject to third party
puts and in participation interests in such bonds held in trust or
otherwise. These bonds and participation interests have tender options or
demand features that permit a fund to tender (or put) the bonds to an
institution at periodic intervals and to receive the principal amount
thereof. A fund considers variable rate instruments structured in this way
(Participating VRDOs) to be essentially equivalent to other VRDOs it
purchases. The IRS has not ruled whether the interest on Participating
VRDOs is tax-exempt and, accordingly, a fund intends to purchase these
instruments based on opinions of bond counsel.
The money market fund may invest in variable or floating rate instruments
that ultimately mature in more than 397 days, if the fund acquires a right
to sell the instruments that meets certain requirements set forth in Rule
2a-7. Variable rate instruments (including instruments subject to a demand
feature) that mature in 397 days or less may be deemed to have maturities
equal to the period remaining until the next readjustment of the interest
rate. Other variable rate instruments with demand features may be deemed to
have a maturity equal to the period remaining until the next adjustment of
the interest rate or the period remaining until the principal amount can be
recovered through demand. A floating rate instrument subject to a demand
feature may be deemed to have a maturity equal to the period remaining
until the principal amount can be recovered through demand.
TENDER OPTION BONDS are created by coupling an intermediate- or long-term,
fixed-rate, tax-exempt bond (generally held pursuant to a custodial
arrangement) with a tender agreement that gives the holder the option to
tender the bond at its face value. As consideration for providing the
tender option, the sponsor (usually a bank, broker-dealer, or other
financial institution) receives periodic fees equal to the difference
between the bond's fixed coupon rate and the rate (determined by a
remarketing or similar agent) that would cause the bond, coupled with the
tender option, to trade at par on the date of such determination. After
payment of the tender option fee, a fund effectively holds a demand
obligation that bears interest at the prevailing short-term tax-exempt
rate. Subject to applicable regulatory requirements, the money market fund
may buy tender option bonds if the agreement gives the fund the right to
tender the bond to its sponsor no less frequently than once every 397 days.
In selecting tender option bonds for the funds, FMR will consider the
creditworthiness of the issuer of the underlying bond, the custodian, and
the third party provider of the tender option. In certain instances, a
sponsor may terminate a tender option if, for example, the issuer of the
underlying bond defaults on interest payments.
ZERO COUPON BONDS do not make regular interest payments. Instead, they are
sold at a deep discount from their face value and are redeemed at face
value when they mature. Because zero coupon bonds do not pay current
income, their prices can be very volatile when interest rates change. In
calculating its daily dividend, a fund takes into account as income a
portion of the difference between a zero coupon bond's purchase price and
its face value.
STANDBY COMMITMENTS are puts that entitle holders to same-day settlement at
an exercise price equal to the amortized cost of the underlying security
plus accrued interest, if any, at the time of exercise. Each fund may
acquire standby commitments to enhance the liquidity of portfolio
securities, but, in the case of the money market fund , only when the
issuers of the commitments present minimal risk of default.
Ordinarily a fund will not transfer a standby commitment to a third party,
although it could sell the underlying municipal security to a third party
at any time. A fund may purchase standby commitments separate from or in
conjunction with the purchase of securities subject to such commitments. In
the latter case, the fund would pay a higher price for the securities
acquired, thus reducing their yield to maturity. Standby commitments will
not affect the dollar-weighted average maturity of the money market fund
or the valuation of the securities underlying the commitments.
Issuers or financial intermediaries may obtain letters of credit or other
guarantees to support their ability to buy securities on demand. FMR may
rely upon its evaluation of a bank's credit in determining whether to
support an instrument supported by a letter of credit. In evaluating a
foreign bank's credit, FMR will consider whether adequate public
information about the bank is available and whether the bank may be subject
to unfavorable political or economic developments, currency controls, or
other governmental restrictions that might affect the bank's ability to
honor its credit commitment.
Standby commitments are subject to certain risks, including the ability of
issuers of standby commitments to pay for securities at the time the
commitments are exercised; the fact that standby commitments are not
marketable by the funds; and the possibility that the maturities of the
underlying securities may be different from those of the commitments.
MUNICIPAL LEASE OBLIGATIONS. Each fund may invest a portion of its assets
in municipal leases and participation interests therein. These obligations,
which may take the form of a lease, an installment purchase, or a
conditional sale contract, are issued by state and local governments and
authorities to acquire land and a wide variety of equipment and facilities.
Generally, the funds will not hold such obligations directly as a lessor of
the property, but will purchase a participation interest in a municipal
obligation from a bank or other third party. A participation interest gives
a fund a specified, undivided interest in the obligation in proportion to
its purchased interest in the total amount of the obligation.
Municipal leases frequently have risks distinct from those associated with
general obligation or revenue bonds. State constitutions and statutes set
forth requirements that states or municipalities must meet to incur debt.
These may include voter referenda, interest rate limits, or public sale
requirements. Leases, installment purchases, or conditional sale contracts
(which normally provide for title to the leased asset to pass to the
governmental issuer) have evolved as a means for governmental issuers to
acquire property and equipment without meeting their constitutional and
statutory requirements for the issuance of debt. Many leases and contracts
include "non-appropriation clauses" providing that the governmental issuer
has no obligation to make future payments under the lease or contract
unless money is appropriated for such purposes by the appropriate
legislative body on a yearly or other periodic basis. Non-appropriation
clauses free the issuer from debt issuance limitations.
FEDERALLY TAXABLE OBLIGATIONS. The funds do not intend to invest in
securities whose interest is federally taxable; however, from time to time,
each fund may invest a portion of its assets on a temporary basis in
fixed-income obligations whose interest is subject to federal income tax.
For example, each fund may invest in obligations whose interest is
federally taxable pending the investment or reinvestment in municipal
securities of proceeds from the sale of its shares or sales of portfolio
securities.
Should a fund invest in federally taxable obligations, it would purchase
securities that in FMR's judgment are of high quality. These would include
obligations issued or guaranteed by the U.S. government or its agencies or
instrumentalities; obligations of domestic banks; and repurchase
agreements. The insured and high yield funds' standards for high-quality
taxable obligations are essentially the same as those described by Moody's
Investors Service, Inc. (Moody's) in rating corporate obligations within
its two highest ratings of Prime-1 and Prime-2, and those described by
Standard & Poor's Corporation (S&P) in rating corporate obligations
within its two highest ratings of A-1 and A-2. The money market fund will
purchase taxable obligations only if they meet its quality
requirements .
Proposals to restrict or eliminate the federal income tax exemption for
interest on municipal obligations are introduced before Congress from time
to time. Proposals also may be introduced before the New York State
legislature that would affect the state tax treatment of the funds'
distributions. If such proposals were enacted, the availability of
municipal obligations and the value of the funds' holdings would be
affected and the Trustees would reevaluate the funds' investment objectives
and policies.
Each fund anticipates being as fully invested as practicable in municipal
securities; however, there may be occasions when, as a result of maturities
of portfolio securities, sales of fund shares, or in order to meet
redemption requests, a fund may hold cash that is not earning income. In
addition, there may be occasions when, in order to raise cash to meet
redemptions, a fund may be required to sell securities at a loss.
INDEXED SECURITIES. The insured and high yield funds may purchase
securities whose prices are indexed to the prices of other securities,
securities indices, or other financial indicators. Indexed securities
typically, but not always, are debt securities or deposits whose value at
maturity or coupon rate is determined by reference to a specific instrument
or statistic. Indexed securities may have principal payments as well as
coupon payments that depend on the performance of one or more interest
rates. Their coupon rates or principal payments may change by several
percentage points for every 1% interest rate change. Once example of
indexed securities is inverse floaters.
The performance of indexed securities depends to a great extent on the
performance of the security or other instrument to which they are indexed,
and may also be influenced by interest rate changes. At the same time,
indexed securities are subject to the credit risks associated with the
issuer of the security, and their values may decline substantially if the
issuer's creditworthiness deteriorates. Indexed securities may be more
volatile than the underlying instruments.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund purchases a
security and simultaneously commits to resell that security to the seller
at an agreed-upon price on an agreed-upon date within a number of days from
the date of purchase. The resale price reflects the purchase price plus an
agreed-upon incremental amount which is unrelated to the coupon rate or
maturity of the purchased security. A repurchase agreement is a taxable
obligation which involves the obligation of the seller to pay the
agreed-upon price, which obligation is in effect secured by the value (at
least equal to the amount of the agreed-upon resale price and marked to
market daily) of the underlying security. Each fund may engage in
repurchase agreements with respect to any security in which it is
authorized to invest even if, with respect to the money market fund, the
underlying security matures in more than 397 days. While it does not
presently appear possible to eliminate all risks from these transactions
(particularly the possibility of a decline in the market value of the
underlying securities, as well as delays and costs to a fund in connection
with bankruptcy proceedings), it is each fund's current policy to limit
repurchase agreement transactions to those parties whose creditworthiness
has been reviewed and found satisfactory by FMR.
REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund
sells a portfolio instrument to another party, such as a bank or
broker-dealer, in return for cash and agrees to repurchase the instrument
at a particular price and time. While a reverse repurchase agreement is
outstanding, the fund will maintain appropriate liquid assets in a
segregated custodial account to cover its obligation under the agreement.
The fund will enter into reverse repurchase agreements only with parties
whose creditworthiness has been found satisfactory by FMR. Such
transactions may increase fluctuations in the market value of a
fund's assets and may be viewed as a form of leverage.
ILLIQUID INVESTMENTS are investments that cannot be sold or disposed of in
the ordinary course of business at approximately the prices at which they
are valued. Under the supervision of the Board of Trustees, FMR determines
the liquidity of each fund's investments and, through reports from FMR, the
Board monitors investments in illiquid instruments. In determining the
liquidity of each fund's investments, FMR may consider various factors
including (1) the frequency of trades and quotations, (2) the number of
dealers and prospective purchasers in the marketplace, (3) dealer
undertakings to make a market, and (4) the nature of the security
(including any demand or tender features), and (5) the nature of the
marketplace for trades (including the ability to assign or offset a
fund's rights and obligations relating to the investment). Investments
currently considered by the money market fund to be illiquid include
restricted securities and municipal lease obligations determined by
FMR to be illiquid. Investments currently considered by the insured and
high yield funds to be illiquid include over-the-counter options. Also, FMR
may determine some restricted securities and municipal lease obligations to
be illiquid. However, with respect to over-the-counter options the insured
and high yield funds write, all or a portion of the value of the underlying
instrument may be illiquid depending on the assets held to cover the option
and the nature and terms of any agreement the fund may have to close out
the option before expiration. In the absence of market quotations,
illiquid investments for the money market fund are valued for
purposes of monitoring amortized cost valuation , and for the bond
funds are priced at fair value as determined in good faith by a
committee appointed by the Board of Trustees . If through a change
in values, net assets, or other circumstances, a fund were in a position
where more than 10% of its net assets were invested in illiquid securities,
it would seek to take appropriate steps to protect liquidity .
RESTRICTED SECURITIES generally can be sold in privately negotiated
transactions, pursuant to an exemption from registration under the
Securities Act of 1933, or in a registered public offering. Where
registration is required, a fund may be obligated to pay all or part of the
registration expense and a considerable period may elapse between the time
it decides to seek registration and the time the fund may be permitted to
sell a security under an effective registration statement. If, during such
a period, adverse market conditions were to develop, a fund might obtain a
less favorable price than prevailed when it decided to seek registration of
the security. However, in general, the money market fund anticipates
holding restricted securities to maturity or selling them in an exempt
transaction.
LOWER-RATED MUNICIPAL SECURITIES. The insured and high yield funds may
invest a portion of their assets in lower-rated municipal securities as
described in the Prospectus.
While the market for New York municipals is considered to be substantial,
adverse publicity and changing investor perceptions may affect the ability
of outside pricing services used by each fund to value its portfolio
securities, and the fund's ability to dispose of lower-rated bonds. The
outside pricing services are monitored by FMR and reported to the
Board to determine whether the services are furnishing prices that
accurately reflect fair value. The impact of changing investor
perceptions may be especially pronounced in markets where municipal
securities are thinly traded.
A fund may choose, at its expense or in conjunction with others, to
pursue litigation or otherwise exercise its rights as a security holder to
seek to protect the interests of security holders if it determines this to
be in the best interest of the fund's shareholders.
INTERFUND BORROWING PROGRAM. Each fund has received permission from the
SEC to lend money to and borrow money from other funds advised by FMR or
its affiliates, but will participate in the interfund borrowing program
only as a borrower. Interfund loans normally will extend overnight, but
can have a maximum duration of seven days. A fund will borrow through the
program only when the costs are equal to or lower than the costs of bank
loans. Loans may be called on one day's notice, and the fund may have to
borrow from a bank at a higher interest rate if an interfund loan is called
or not renewed.
3LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS (INSURED AND HIGH YIELD
FUNDS ONLY ). Each fund a notice of eligibility for exclusion
from the definition of the term "commodity pool operator" with the
Commodity Futures Trading Commission (CFTC) and the National Futures
Association, which regulate trading in the futures markets. The funds
intend to comply with Section 4.5 of the regulations under the Commodity
Exchange Act, which limits the extent to which the funds can commit
assets to initial margin deposits and option premiums.
In addition, each fund will not: (a) sell futures contracts, purchase put
options, or write call options if, as a result, more than 25% of the fund's
total assets would be hedged with futures and options under normal
conditions; (b) purchase futures contracts or write put options if, as a
result, the fund's total obligations upon settlement or exercise of
purchased futures contracts and written put options would exceed 25% of its
total assets; or (c) purchase call options if, as a result, the current
value of option premiums for call options purchased by the fund would
exceed 5% of the fund's total assets. These limitations do not apply to
options attached to, or acquired or traded together with their underlying
securities, and do not apply to securities that incorporate features
similar to options.
The above limitations on the funds' investments in futures contracts and
options, and the funds' policies regarding futures contracts and options
discussed elsewhere in this Statement of Additional Information, are not
fundamental policies and may be changed as regulatory agencies permit.
FUTURES CONTRACTS. When a fund purchases a futures contract, it agrees to
purchase a specified underlying instrument at a specified future date.
When a fund sells a futures contract, it agrees to sell the underlying
instrument at a specified future date. The price at which the purchase and
sale will take place is fixed when the fund enters into the contract. Some
currently available futures contracts are based on specific securities,
such as U.S. Treasury bonds or notes, and some are based on indices of
securities prices, such as the Bond Buyer Municipal Bond Index. Futures
can be held until their delivery dates, or can be closed out before then if
a liquid secondary market is available.
The value of a futures contract tends to increase and decrease in tandem
with the value of its underlying instrument. Therefore, purchasing futures
contracts will tend to increase a fund's exposure to positive and negative
price fluctuations in the underlying instrument, much as if it had
purchased the underlying instrument directly. When a fund sells a futures
contract, by contrast, the value of its futures position will tend to move
in a direction contrary to the market. Selling futures contracts,
therefore, will tend to offset both positive and negative market price
changes, much as if the underlying instrument had been sold.
FUTURES MARGIN PAYMENTS. The purchaser or seller of a futures contract is
not required to deliver or pay for the underlying instrument unless the
contract is held until the delivery date. However, both the purchaser and
seller are required to deposit "initial margin" with a futures broker known
as a futures commission merchant (FCM), when the contract is entered into.
Initial margin deposits are typically equal to a percentage of the
contract's value. If the value of either party's position declines, that
party will be required to make additional "variation margin" payments to
settle the change in value on a daily basis. The party that has a gain may
be entitled to receive all or a portion of this amount. Initial and
variation margin payments do not constitute purchasing securities on margin
for purposes of the funds' investment limitations. In the event of the
bankruptcy of an FCM that holds margin on behalf of a fund, the fund may be
entitled to return of margin owed to it only in proportion to the amount
received by the FCM's other customers, potentially resulting in losses to
the fund.
PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, a fund
obtains the right (but not the obligation) to sell the option's underlying
instrument at a fixed strike price. In return for this right, the fund
pays the current market price for the option (known as the option premium).
Options have various types of underlying instruments, including specific
securities, indices of securities prices, and futures contracts. A fund
may terminate its position in a put option it has purchased by allowing it
to expire or by exercising the option. If the option is allowed to expire,
the fund will lose the entire premium it paid. If the fund exercises the
option, it completes the sale of the underlying instrument at the strike
price. A fund may also terminate a put option position by closing it out
in the secondary market at its current price, if a liquid secondary market
exists.
The buyer of a typical put option can expect to realize a gain if security
prices fall substantially. However, if the underlying instrument's price
does not fall enough to offset the cost of purchasing the option, a put
buyer can expect to suffer a loss (limited to the amount of the premium
paid, plus related transaction costs).
The features of call options are essentially the same as those of put
options, except that the purchaser of a call option obtains the right to
purchase, rather than sell, the underlying instrument at the option's
strike price. A call buyer typically attempts to participate in potential
price increases of the underlying instrument with risk limited to the cost
of the option if security prices fall. At the same time, the buyer can
expect to suffer a loss if security prices do not rise sufficiently to
offset the cost of the option.
WRITING PUT AND CALL OPTIONS. When a fund writes a put option, it takes
the opposite side of the transaction from the option's purchaser. In
return for receipt of the premium, the fund assumes the obligation to pay
the strike price for the option's underlying instrument if the other party
to the option chooses to exercise it. When writing an option on a futures
contract the fund will be required to make margin payments to an FCM as
described above for futures contracts. The fund may seek to terminate its
position in a put option it writes before exercise by closing out the
option in the secondary market at its current price. If the secondary
market is not liquid for a put option the fund has written, however, the
fund must continue to be prepared to pay the strike price while the option
is outstanding, regardless of price changes, and must continue to set aside
assets to cover its position.
If security prices rise, a put writer generally would expect to profit,
although its gain would be limited to the amount of the premium it
received. If security prices remain the same over time, it is likely that
the writer will also profit, because it should be able to close out the
option at a lower price. If security prices fall, the put writer would
expect to suffer a loss. This loss should be less than the loss from
purchasing the underlying instrument directly, however, because the premium
received for writing the option should mitigate the effects of the decline.
Writing a call option obligates a fund to sell or deliver the option's
underlying instrument, in return for the strike price, upon exercise of the
option. The characteristics of writing call options are similar to those
of writing put options, except that writing calls generally is a profitable
strategy if prices remain the same or fall. Through receipt of the option
premium, a call writer mitigates the effects of a price decline. At the
same time, because a call writer must be prepared to deliver the underlying
instrument in return for the strike price, even if its current value is
greater, a call writer gives up some ability to participate in security
price increases.
COMBINED POSITIONS. A fund may purchase and write options in combination
with each other, or in combination with futures or forward contracts, to
adjust the risk and return characteristics of the overall position. For
example, a fund may purchase a put option and write a call option on the
same underlying instrument, in order to construct a combined position whose
risk and return characteristics are similar to selling a futures contract.
Another possible combined position would involve writing a call option at
one strike price and buying a call option at a lower price, in order to
reduce the risk of the written call option in the event of a substantial
price increase. Because combined options positions involve multiple
trades, they result in higher transaction costs and may be more difficult
to open and close out.
CORRELATION OF PRICE CHANGES. Because there are a limited number of types
of exchange-traded options and futures contracts, it is likely that the
standardized contracts available will not match the funds' current or
anticipated investments exactly. Each fund may invest in options and
futures contracts based on securities with different issuers, maturities,
or other characteristics from the securities in which it typically invests,
which involves a risk that the options or futures position will not track
the performance of a fund's other investments.
Option and futures prices can also diverge from the prices of their
underlying instruments, even if the underlying instruments match the funds'
investments well. Options and futures prices are affected by such factors
as current and anticipated short-term interest rates, changes in volatility
of the underlying instrument, and the time remaining until expiration of
the contract, which may not affect security prices the same way. Imperfect
correlation may also result from differing levels of demand in the options
and futures markets and the securities markets, from structural differences
in how options and futures and securities are traded, or from imposition of
daily price fluctuation limits or trading halts. A fund may purchase or
sell options and futures contracts with a greater or lesser value than the
securities it wishes to hedge or intends to purchase in order to attempt to
compensate for differences in volatility between the contract and the
securities, although this may not be successful in all cases. If price
changes in a fund's options or futures positions are poorly correlated with
its other investments, the positions may fail to produce anticipated gains
or result in losses that are not offset by gains in other investments.
LIQUIDITY OF OPTIONS AND FUTURES CONTRACTS. There is no assurance a liquid
secondary market will exist for any particular options or futures contract
at any particular time. Options may have relatively low trading volume and
liquidity if their strike prices are not close to the underlying
instrument's current price. In addition, exchanges may establish daily
price fluctuation limits for options and futures contracts, and may halt
trading if a contract's price moves upward or downward more than the limit
in a given day. On volatile trading days when the price fluctuation limit
is reached or a trading halt is imposed, it may be impossible for a fund to
enter into new positions or close out existing positions. If the secondary
market for a contract is not liquid because of price fluctuation limits or
otherwise, it could prevent prompt liquidation of unfavorable positions,
and potentially could require a fund to continue to hold a position until
delivery or expiration regardless of changes in its value. As a result,
the fund's access to other assets held to cover its options or futures
positions could also be impaired.
OTC OPTIONS. Unlike exchange-traded options, which are standardized with
respect to the underlying instrument, expiration date, contract size, and
strike price, the terms of over-the-counter options (options not traded on
exchanges) generally are established through negotiation with the other
party to the option contract. While this type of arrangement allows a fund
greater flexibility to tailor an option to its needs, OTC options generally
involve greater credit risk than exchange-traded options, which are
guaranteed by the clearing organization of the exchanges where they are
traded.
ASSET COVERAGE FOR FUTURES AND OPTIONS POSITIONS. The funds will comply
with guidelines established by the Securities and Exchange Commission with
respect to coverage of options and futures strategies by mutual funds, and
if the guidelines so require will set aside appropriate liquid assets in a
segregated custodial account in the amount prescribed. Securities held in
a segregated account cannot be sold while the futures or option strategy is
outstanding, unless they are replaced with other suitable assets. As a
result, there is a possibility that segregation of a large percentage of a
fund's assets could impede portfolio management or the fund's ability to
meet redemption requests or other current obligations.
4SPECIAL FACTORS AFFECTING NEW YORK
The financial condition of the State of New York (the State), its public
authorities and public benefit corporations (the Authorities) and its local
governments, particularly The City of New York (the City), could affect the
market values and marketability of, and therefore the net asset value per
share and the interest income of, the funds, or result in the default of
existing obligations, including obligations which may be held by the funds.
The following section provides only a brief summary of the complex factors
affecting the financial situation in New York and is based on information
obtained from the State, certain of its Authorities, the City and certain
other localities, as publicly available on the date of this Statement of
Additional Information. The information contained in such publicly
available documents has not been independently verified. It should be
noted that the creditworthiness of obligations issued by local issuers may
be unrelated to the creditworthiness of the State, and that there is no
obligation on the part of the State to make payment on such local
obligations in the event of default in the absence of a specific guarantee
or pledge provided by the State.
The State and the City have been facing serious financial difficulties and
have each experienced recent declines in their credit standings. Standard
& Poor's Corporation and Moody's Investors Service Inc. have each
assigned ratings for the State's general obligation bonds that are among
the three lowest of the 50 states. The ratings of certain related debt of
other issuers for which the State has an outstanding moral obligation,
lease purchase, guarantee or other contractual obligation are generally
linked directly to the State's rating. Should the financial condition of
the State, its Authorities, or its local governments deteriorate, their
respective credit ratings could be further reduced, and the market value
and marketability of their outstanding notes and bonds could be adversely
affected, and their respective access to the public credit markets
jeopardized.
ECONOMIC FACTORS. New York is the second most populous state, and
historically has been one of the wealthiest states in the nation. However,
the State economy has grown more slowly than that of the nation as a whole,
resulting in the gradual erosion of its relative economic affluence (due to
factors such as relative costs for taxes, labor, and energy). The State's
manufacturing and maritime base have been seriously eroded, as illustrated
by the decline of the steel industry in the Buffalo area and of the apparel
and textile industries in the City. In addition, the City experienced
substantial socio-economic changes, as a large segment of its population
and a significant share of corporate headquarters and other businesses
relocated (many out-of-state).
Both the State and the City experienced substantial revenue increases in
the mid-1980s attributable directly (corporate income and financial
corporations taxes) and indirectly (personal income and a variety of other
taxes) to growth in new jobs, rising profits, and capital appreciation
derived from the finance sector of the City's economy. From 1977 to its
1988 peak, the finance, insurance, and real estate sectors rose 55%, to
account in 1988 for 23% of total earnings in the City and 14% statewide
(compared to 7% nationwide). The finance sector's growth was a catalyst
for the New York metropolitan region's related business and professional
services, retail trade and residential and commercial real estate markets.
The then rising real estate market contributed to City revenues, as higher
property values and new construction added to collections from property
taxes, mortgage recording, and transfer taxes and sales taxes on building
materials. The boom on Wall Street more than compensated for the continued
erosion of the State's (and the City's) manufacturing and maritime base,
since average wages in finance and related business and professional
services were substantially higher (thereby providing a net increase of
higher incomes, taxed at even higher marginal rates).
However, the effects of the October 1987 stock market crash and the 1990-92
national recession have had a disproportionately adverse impact on the New
York metropolitan region, as private sector job losses since 1989 have
offset all the prior employment gains of the 1980s. Declines in both
employment and earnings in the finance sector contributed to declines in
retail sales and real estate values. In addition, a number of widely
publicized bankruptcies among highly leveraged retailing, brokerage and
real estate development companies occurred. The effects of the recession
have extended to banking, insurance, business services (such as law,
accounting and advertising), publishing and communications. Factors which
may inhibit the City's economic recovery include (i) credit restraints
imposed by the weak financial condition of several major money center banks
located in the City; (ii) increases in combined State and local tax
burdens, if uncompetitive tax rates are imposed; (iii) perceived declines
in the quality of life attributable to service reductions and the
deterioration of the City's aging and dilapidated infrastructure; or (iv)
additional employment losses in the City's banking sector or corporate
headquarters complex due to further corporate relocations or
restructurings. The City's future economic condition will also likely be
affected by its competitive position as a world financial center (compared
to London, Tokyo, Frankfurt, and competing regional U.S. centers).
While the State's economy (the nation's second largest) is broader-based
than that of the City, particular industries are concentrated in and have a
disproportionate impact on certain areas, such as aerospace in Long Island,
heavy industry in Buffalo, photographic and optical equipment in Rochester,
machinery and transportation equipment in Syracuse and Utica-Rome,
computers in Binghamton and in the Mid-Hudson Valley, and electrical
equipment in Schenectedy. Of the six largest private employers in the
State outside the City, three derive a significant share of their revenues
from contracts with the Defense Department, whose budget (and contract
outlays) may be further reduced during the 1990s. In addition, State
government has a significant local economic impact on the Albany area and
on communities where state university campuses or corrections and mental
health facilities are located. Constraints on economic growth, taxpayer
resistance to proposed substantial increases in local tax rates, and
reductions in State aid in regions apart from the City have contributed to
financial difficulties for several county and other local governments.
These recent trends have had, and may continue to have, an adverse impact
on both State and local government revenue receipts. The adverse fiscal
impact on the State and its local governments (especially the City, Suffolk
County and Buffalo) of the 1990-92 national recession has been substantial,
and could worsen if the recession deepens or is protracted locally. For
calendar year 1993, the economy of the State grew faster than in 1992, but
at a very moderate pace compared to other recoveries. Moderate economic
growth is expected to continue in 1994 at a faster rate than in 1993.
However, there can be no assurance that the State economy will not
experience worse-than-predicted results in the 1993-94 and 1994-95 fiscal
years with corresponding material and adverse effects on the State's
projections of receipts and disbursements.
THE STATE. The State has been experiencing substantial financial
difficulties, with General Fund (the principal operating account) deficits
incurred in each of the past five fiscal years (ending March 31). The
State's accumulated General Fund deficit (on a GAAP basis) grew 91%
from FY1986-87 to FY1990-91, and reached a then-record $6.265 billion
(audited) by March 31, 1991. Due largely to the accounting treatment of
State aid to local governments now paid by New York Local Government
Assistance Corporation (as described below), the State had a General Fund
surplus (on a GAAP basis) of $1.668 billion in FY1991-92 (although the
State issued $531 million of its deficit notes at fiscal year end to avert
a cash-basis deficit). As a consequence, the accumulated General Fund
deficit at March 31, 1992 was restated to be $4.616 billion. The
accumulated General Fund deficit at March 31, 1993 was $2.551 billion. The
1993-94 State Financial Plan as last amended on February 17, 1994, projects
a surplus of $339 million, more than one percent of the General Fund. The
recommended 1994-95 State Financial Plan projects a balanced General Fund
and does not require an intra-year note issuance for cash flow purposes.
The state faces a potential $3.0 billion gap in preparing a
FY1994-95 budget. There can be no assurance that the State will not
face budget gaps in future years, resulting from a disparity between tax
revenues projected from a lower recurring-receipts base and the spending
required to maintain State programs at current levels. Furthermore, the
State is a party to numerous lawsuits in which an adverse decision could
require extraordinary expenditures. Certain major budgetary considerations
affecting the State are outlined below.
REVENUE BASE. The State's principal revenue sources are economically
sensitive, and include the personal income tax ( 57 % of estimated
FY1993-94 General Fund tax receipts), user taxes and fees
( 15 %), and business taxes (19%). Uncertainties in taxpayer
behavior as a result of actual and proposed changes in Federal tax law also
can have an adverse impact on State tax receipts. One-fourth of the 4%
State sales tax has been dedicated to pay debt service of the New York
Local Government Assistance Corporation ("LGAC") , and has
correspondingly reduced General Fund receipts. To the extent those
moneys are not necessary for payment to LGAC, they are transferred from the
LGAC Tax Fund to the General Fund and reported as a transfer from other
funds rather than as sales and use tax receipts. During fiscal years
1991-92 and 1992-93, moneys were so transferred. It is estimated that
$1.278 billion will be transferred from the LGAC Tax Fund to the General
Fund in fiscal year 1993-94. Capital gains are a significant component
of income tax collections. Auto sales and building materials are
significant components of retail sales tax collections. Tax rates are
relatively high and may impose political and economic constraints on the
ability of the State to further increase its taxes. State legislation
enacted in 1987 phased in a reduction in the top rate of the State's
personal income tax; these tax cuts have substantially reduced the
recurring revenues of the State. The final phase-in (originally scheduled
for October 1990) has been deferred four times, and the rules for
calculating tax liability for the 1993 tax year will be the same as those
for the 1992 tax year and the tax reduction program will be frozen at
current rates. Legislation proposed with the 1994-95 recommended Executive
Budget would defer the scheduled tax reduction for the fifth consecutive
year and would avoid a reduction in receipts of approximately $800 million
in the 1994-95 fiscal year. In the absence of countervailing economic
growth or expenditure cuts the tax cuts could make the achievement
of a balanced State budget more difficult in future years.
STATE DEBT. The State has the heaviest debt burden of any state (with
nearly $5.0 billion of long-term general obligation and $20.6
billion of lease-purchase or other contractual debt outstanding as of
December 31, 1993 ), and debt service costs absorb a large share of
the State's budget. As of December 31, 1993 t he State is also
obligated with respect to nearly $7.5 billion for statutory moral
obligations for 8 of its Authorities and for guarantees of
$430 million of other Authority debt. In addition, the State has
one of the largest seasonal financing requirements of any municipal issuer,
and is required each spring to borrow substantial sums from public credit
markets to finance its accumulated General Fund deficit and its scheduled
payments of aid to local governments and school districts. No assurance
can be given that the State will be able to continue to meet its financing
requirements in the public credit markets at the times or in the amounts
required. The annual Spring Borrowing is contingent on the certification
by the State Comptroller that the newly adopted State budget is balanced.
Prior delays in the Spring Borrowing in recent years owing to delayed
enactment of the State budget have resulted in delays in the scheduled
payments of State aid and have consequently caused various local
governments and school districts to experience cash flow difficulties. For
the fifth consecutive year, a growing budget gap caused the State at
the end of its fiscal year to issue $850 million of its short-term
notes (payable from the next year's tax and revenue receipts) to
finance its FY1992-93 deficit. The State recently created the New York
Local Government Assistance Corporation as a financing vehicle to
reduce the State's seasonal financing needs by having LGAC finance the
State's local assistance payments by issuing long-term debt, payable over
30 years from a portion of the State sales tax. The enabling legislation
for LGAC contains a covenant restricting the amount of the State's Spring
Borrowing, which may reduce the State's fiscal flexibility.
BUDGETARY FLEXIBILITY. A significant portion of the State's General
Fund budget is accounted for by contractually required expenses (such as
pension and debt service costs) and by federally mandated programs (such as
AFDC and Medicaid). In addition, State aid for school districts comprises
a major share of the budget, and total appropriations and distribution of
such aid is especially contentious politically. Furthermore, the State has
utilized a substantial range of actions of a non-recurring nature in recent
years to finance its General Fund operations, including tapping excess
monies in special funds, refinancing outstanding debt to reduce reserve
fund requirements and current (but not long-term) debt service costs,
recalculating pension fund contributions, selling state assets, reimbursing
past General Fund expenditures by the issuance of Authority debt, and
deferring payment for expenditures to future fiscal years. The 1993-94
State Financial Plan contains actions of a non-recurring nature including
Federal reimbursements relating to a Medicaid payment and of the costs of
educating handicapped children and a transfer to the State of abandoned
property held by title companies, totalling to $270 million. Such
actions may have reduced the State's ability to respond to unanticipated
events in the future.
POLITICAL FACTORS. Political control of the Legislature has been divided
between the Senate and the Assembly for most of the State's recent history,
and has contributed to protracted State budget negotiations that have
delayed enactment of the State budget past the April 1 constitutional
deadline in each of the past eight years. In addition, the independently
elected State Comptroller audits state agencies, Authorities and local
governments, and issues reports from time to time that may result in
adverse publicity or conflicting fiscal projections.
LABOR COSTS. The State government workforce is mostly unionized, subject
to the Taylor Law which authorizes collective bargaining and prohibits (but
has not historically prevented) strikes and work slowdowns. Costs for
employee health benefits have increased substantially, and can be expected
to further increase. The State has a substantial unfunded liability for
future pension benefits, and has utilized changes in its pension fund
investment return assumptions to reduce current contribution requirements.
If such investment earnings assumptions are not sustained by actual
results, additional State contributions will be required in future years to
meet the State's contractual obligations. The State's change in
actuarial method from the aggregate cost method to a modified projected
unit credit in the 1990-91 fiscal year created a substantial surplus that
was amortized and applied to offset the State's contribution through the
1993-94 fiscal year. This change in actuarial method was ruled
unconstitutional by the State's highest court and the State will return to
the aggregate cost method in fiscal year 1994-95 using a four-year
phase-in. Employer contributions, including the State's, are expected to
increase over the next five to ten years.
PUBLIC ASSISTANCE. The State has the second largest number of persons
receiving public assistance (AFDC and Home Relief) of any state. AFDC
costs are shared among the federal government, the State and its counties
(including the City) by statutory formula. Caseloads tend to rise
significantly during economic downturns, but have fallen only in the later
stages of past economic recoveries.
MEDICAID. The State participates in the federal Medicaid program under a
state plan approved by the Health Care Financing Administration. The
federal government provides 50% of eligible program costs, with the
remainder shared by the State and its counties (including the City). The
Governor has proposed that the State assume local costs for Medicaid, but
enabling legislation has not yet been adopted. Basic program eligibility
and benefits are determined by federal guidelines, but the State provides a
number of optional benefits and expanded eligibility. Program costs have
increased substantially in recent years, and account for a rising share of
the State budget. Federal law requires the State adopt reimbursement rates
for hospitals and nursing homes that are reasonable and adequate to meet
the costs that must be incurred by efficiently and economically operated
facilities in providing patient care, a standard that has led to past
litigation by hospitals and nursing homes seeking higher reimbursement from
the State. Cutbacks in State spending for Medicaid may adversely affect
the financial condition of hospitals and health care institutions that are
the obligors of bonds that may be held by the funds.
ENERGY COSTS. Increases in energy costs, especially for heating oil and
gasoline, may exceed budgeted amounts. Such costs are related to the
severity of winter conditions and to international developments affecting
the petroleum market.
ENVIRONMENTAL PROTECTION. Federal legislation and Environment Protection
Agency regulations mandate compliance with various standards for air and
water pollution and hazardous wastes. Many jurisdictions within the State
(including the City) are not in compliance with such standards, and are
subject to a range of penalties. No assurance can be given that the State
or its local governments will meet such standards within the current
deadlines for compliance under such regulations or consent decrees, or that
such deadlines will be further extended. The costs of compliance are
substantial, as may be the costs of penalties that may be imposed on the
State or its local governments.
THE STATE AUTHORITIES. The State's Authorities are not subject to the
constitutional restrictions on the incurrence of debt which apply to the
State itself, and may issue bonds and notes within the amounts of, and as
otherwise restricted by, their legislative authorization. The New York
State Public Authorities Control Board approves the issuance of debt and
major contracts by ten of the Authorities. As of September 30, 1993, there
were 18 Authorities that had outstanding debt of $100 million or more, the
aggregate debt of which (including refunding bonds and moral obligation ,
lease-purchase, contractual obligation, or State-guaranteed debt) then
totaled approximately $63.5 billion. In recent years the State has
provided financial assistance through appropriations, in some cases of a
recurring nature, to certain Authorities for operating and other expenses
and, (from 1976 to 1987) in fulfillment of its commitments on moral
obligation indebtedness or otherwise, for debt service. The State has
budgeted operating assistance of approximately $1.153 billion for
the Metropolitan Transportation Authority (MTA) and $18.7 million
for four other Authorities (including the State Housing Finance Agency and
the State Urban Development Corporation) during FY1993-94 . This
assistance is expected to continue to be required (and may increase) in
future years. Failure by the State to appropriate necessary amounts or to
take other action to permit the Authorities to meet their obligations
could adversely affect the ability of the State and the Authorities to
obtain financing in the public credit markets and the market price of the
State's outstanding bonds and notes.
The MTA, whose credit standing was recently cut, oversees the
operation of the City's subway and bus lines by its affiliates, the New
York City Transit Authority and the Manhattan and Bronx Surface Transit
Operating Authority (collectively, the "TA"). MTA subsidiaries operate
certain commuter rail and bus lines in the New York metropolitan area. An
affiliated agency, the Triborough Bridge and Tunnel Authority (TBTA),
operates certain intrastate toll bridges and tunnels. To maintain its
facilities and equipment, which deteriorated significantly in the late
1970s due to deferred maintenance, the MTA prepares a four year capital
program subject to approval by the MTA Capital Program Review Board. The
State legislature authorized the funding of a portion of a four - year
$9.56 billion capital plan for the MTA for 1992 through 1996 in April 1993.
The four - year capital program for 1992-96 submitted by the MTA was
approved by the State Capital Program Review Board in December 1993. The
MTA faces reduced revenues due to a falloff in ridership, reduced
collections from dedicated taxes (mortgage recording and realty transfer
taxes) and reduced State and City aid. The TA and commuter railroad
ended their fiscal year on December 31, 1993, with their budget balanced on
a cash basis and the TA had a closing cash balance of approximately $39
million. The TA projects a cash surplus of $77.6 million at the end of
1994. Because fares are not sufficient to finance its mass transit
operations, the MTA has depended and will continue to depend for operating
support upon a system of State, local government and TBTA support, and, to
the extent available, federal assistance (including loans, grants and
operating subsidies). A regional business tax surcharge, which provided
$480 million in revenues to the MTA in calendar year 1993 , is
scheduled to expire, unless extended by the Legislature, in November
1995 . In addition, the City provides a substantial subsidy to the
TA. There can be no assurance that any such assistance will continue at
any particular level or in any fixed relationship to the operating costs
and capital needs of the MTA.
THE CITY. In the early 1970s, the City incurred substantial operating
deficits, and its financial controls, accounting practices, and disclosure
policies were widely criticized. In 1975, the City encountered severe
financial difficulties and lost access to the public credit markets. The
State Legislature responded in 1975 by creating the Municipal Assistance
Corporation For The City of New York (MAC) to provide financing assistance
for the City and the Financial Control Board to exercise certain oversight
and review functions with respect to the City's finances. The Financial
Control Board's powers over the City were suspended in June 1986, but would
be reinstated (under current law) if the City experiences certain adverse
financial circumstances. At the time of the fiscal crisis, the State
provided substantial financial assistance to the City, the federal
government provided the City with direct seasonal loans and guarantees on
the City's long-term debt, and the City's labor unions accepted deferrals
of wage increases and approved purchases of City bonds by the pension
funds. No assurance can be given that similar assistance would again be
made available if needed, particularly given the current budgetary
constraints faced by both the federal and State governments.
The City provides services usually undertaken by counties, school districts
or special districts in other large urban areas. State law requires the
City to allocate a large portion of its total budget to Board of
Education operations, and mandates the City to assume the local share of
public assistance and Medicaid costs. In the City's 1994-97 Financial
Plan, 25.4% of the City's budget is allocated to the Board of Education for
the 1994 fiscal year. The City had GAAP operating surpluses of $567
million in FY1987, $225 million in FY1988, $409 million in FY1989, $253
million in FY1990, $27 million in FY1991 , $570 million in FY1992 ,
and $412 million in FY 1993 before discretionary transfers and
expenditures. The City has experienced substantial financial difficulties
in the early 1990s, primarily related to the impact of the recession on the
local economy (reducing revenues from most major taxes and increasing
public assistance and Medicaid caseloads), rising health care costs for
City employees and for Medicaid, and the repeated deferral of the sale of
the New York Coliseum site to a private developer. In response, the City
implemented gap-closing programs in FY1990 and in FY1991 which enabled the
City to offset a potential $3.2 billion deficit in FY1991 and to achieve
modest GAAP surpluses in those years. The programs initially relied
primarily on actions of a non-recurring nature, but included substantial
property tax rate increases and a personal income tax surcharge imposed in
FY1991 and selected service cutbacks. Reductions in State aid, larger than
budgeted labor settlements and increased police expenditures added to the
adverse budgetary impact of the local recession, confronting the City with
a potential $3.3 billion imbalance during FY1992 budget negotiations. This
initial budget gap was closed by adoption of a budget providing for various
tax increases and significant service reductions. Aid to nonprofit
cultural institutions in the City was significantly reduced (as was State
aid to such institutions), including certain institutions that are obligors
of bonds that may be held by the funds. Beginning in 1992, economic
conditions in the City began to stabilize and was related to the
improvement in the national economy. Toward the end of 1992, employment
losses moderated and real Gross City Product increased.
The City's four year financial plan for FY1994-FY1997 (as modified
by the Mayor's mid-year modification on February 2, 1994 ), while
projecting a balanced budget for FY 1994 , recommended measures to
close a potential budget gap of $2.3 billion in FY1995 ; the
Mayor further identified potential budget gaps in later fiscal years
(rising to $3.3 billion in FY1997 ). The plan contained
numerous assumptions concerning factors which may impact the City's budget,
such as: that a modest employment recovery will begin by the end of
calendar year 1993 ; the willingness and ability of the federal and
State governments to provide financial assistance and to take other actions
contemplated by the City; the ultimate disposition of the City's wage
settlements (which could be determined through binding arbitration); no
further wage increases after the 1995 fiscal year; the performance of
the City economy (particularly to the extent tax collections and public
assistance caseloads are affected); and the extent actual earnings on
pension fund assets are consistent with the 9% return assumed in
determining the currently planned level of required City contributions. No
assurance can be given that the assumptions used by the City will be
realized. The Mayor's February Modification includes a gap-closing
program for fiscal year 1995 that incorporates an agency program of $1.408
billion, a fringe benefit and pension savings, an intergovernmental aid
package, a workforce reduction program and the assumption of a surplus from
fiscal year 1994. This plan also included a tax reduction program with most
of the financial impact affecting the later years of the 1994-97 Financial
Plan period. Furthermore, actions taken in recent fiscal years to avert
deficits may have reduced the City's flexibility in responding to future
budgetary imbalances, and have deferred certain expenditures to later
fiscal years.
The City projects that local revenues will provide approximately 69 %
of total revenues in FY1994 while Federal aid, including categorical
grants, will provide 12% and State aid, including unrestricted aid and
categorical grants, will provide 19 %. As a proportion of total
revenues, State aid remained relatively constant over the period from 1980
to 1990, while federal aid was sharply reduced (having provided nearly 20%
of total FY1980 revenues). The largest source of the City's revenues is
the real estate tax (approximately 24 % of total revenues for
FY1994 ), at rates levied by the City Council (subject to certain
State constitutional limits). In the event of a reduction in total
assessments, higher tax rates would be required to maintain the same amount
of tax revenue. The City derives the remainder of its tax revenues from a
variety of other economically sensitive local taxes (subject to
authorization by the Legislature), including: a local sales and
compensating use tax (dedicated primarily to MAC debt service) imposed in
addition to the State's tax; the personal income tax on City residents and
the earnings tax on non-residents; a general corporation tax; and a
financial corporation tax. High tax burdens in the City impose political
and economic constraints on the ability of the City to increase local tax
rates.
The City is the largest municipal debt issuer in the nation, and has more
than doubled its debt load since the end of FY1988 , in large measure
to rehabilitate its extensive, aging physical plant. The City's seasonal
borrowing needs increased significantly during FY1990 and FY1991, largely
due to delayed State aid payments, and totalled $1.4 billion in
FY1993 and 1.75 billion in FY 1994. The City's current $18.5
billion capital financing program (most of which would be used to reimburse
the City's general fund for capital expenditures the City expects to incur)
reflects major reductions in the City's 1994-97 capital plan, which
will reduce future debt service requirements, but may adversely affect the
condition of its deteriorating physical plant. No assurance can be given
that the credit markets will absorb the projected amounts of City
obligations, which are essential if the City is to meet its planned
operating and capital expenditures. Furthermore, the ability of the City
to obtain credit enhancement and to sell its bonds at favorable interest
rates is constrained by capacity limits established by the major bond
insurance companies and reinsurers to limit their credit exposure risks.
In November 1993, the voters approved a proposed charter whereby Staten
Island would secede from the City. Staten Island is one of five
counties/boroughs, comprising 4% of the City's population and 19% of its
land area . State law provides a complex mechanism for such
secession. The State Legislature is also considering establishment of a
similar secession mechanism for Queens.
OTHER LOCALITIES. The State provides substantial financial assistance to
its political subdivisions, totalling approximately 72% of General
Fund disbursements in the State's FY1992-93 and estimated to account for
73% of General Fund disbursements in the State's 1993-94 fiscal year ,
primarily for aid to elementary, secondary and higher education ( 47%
of local assistance) and Medicaid and income maintenance ( 38% ). The
Legislature has enacted substantial reductions from previously budgeted
levels of State aid since December 1990. To the extent the State is
constrained by its financial condition, State assistance to localities may
be further reduced, compounding the serious fiscal constraints already
experienced by many local governments. Localities also face anticipated
and potential problems resulting from pending litigation (including
challenges to local property tax assessments), judicial decisions and
socio-economic trends.
In 1992 , the total indebtedness of all localities in the State,
other than New York City, was approximately $15.7 billion. A small
portion (approximately $71.6 million) of this indebtedness
represented borrowing to finance budgetary deficits issued pursuant to
enabling State legislation (requiring budgetary review by the State
Comptroller. Seventeen localities had outstanding indebtedness for deficit
financing at the close of their fiscal year ending 1992 (compared to
17 in 1990 ). Subsequently, certain counties and other local
governments have encountered significant financial difficulties, including
the counties of Suffolk (whose long-term debt ratings were reduced below
investment grade by Standard & Poor's for several months during 1991),
Nassau, Monroe, and Westchester, and the City of Buffalo. The State has
imposed financial control on New York City from 1977 to 1986 and on the
City of Yonkers since 1984 under an appointed control board in response to
fiscal crises encountered by such municipalities. The Legislature imposed
certain limited fiscal restraints on Nassau and Suffolk Counties, and
authorized their issuance of deficit bonds to finance over several years
their respective 1992 operating deficits.
5SPECIAL FACTORS AFFECTING PUERTO RICO
The following only highlights some of the more significant financial trends
and problems affecting the Commonwealth of Puerto Rico (the "Commonwealth"
or "Puerto Rico"), and is based on information drawn from official
statements and prospectuses relating to the securities offerings of Puerto
Rico, its agencies and instrumentalities, as available on the date of this
Statement of Additional Information. FMR has not independently verified any
of the information contained in such official statements, prospectuses and
other publicly available documents, but is not aware of any fact which
would render such information materially inaccurate.
The economy of Puerto Rico is closely linked with that of the United
States, and in fiscal 1992 trade with the United States accounted for
approximately 88% of Puerto Rico's exports and approximately 68% of its
imports. In this regard, in fiscal 1992 Puerto Rico experienced a
$2,940,300,000 positive adjusted merchandise trade balance. Since fiscal
1987 personal income, both aggregate and per capita, have increased
consistently each fiscal year. In fiscal 1992 aggregate personal income was
$22.7 billion and personal per capita income was $6,360. Gross domestic
product in fiscal 1989, 1990, 1991 and 1992 was $19,954,000, $21,619,000,
$ 22,857,000, and $23,620,000 respectively. For fiscal 1993, an
increase in gross domestic product of 2.9% over fiscal 1992 is forecasted.
However, actual growth in the Puerto Rico economy will depend on several
factors including the condition of the U.S. economy, the exchange rate for
the U.S. dollar, the price stability of oil imports, and interest rates.
Due to these factors there is no assurance that the economy of Puerto Rico
will continue to grow.
Puerto Rico has made marked improvements in fighting unemployment.
Unemployment is at a low level compared to that of the late 1970s, but it
still remains significantly above the United States average. Despite long
term improvements the unemployment rate rose from 15.2% to 16.5% from
fiscal 1991 to fiscal 1992. At the end of the third quarter of fiscal 1993
the unemployment rate in Puerto Rico stood at 17.3%. There is a possibility
that the unemployment rate will continue to increase.
The economy of Puerto Rico has undergone a transformation in the later half
of this century from one centered around agriculture, to one dominated by
the manufacturing and service industries. Manufacturing is the cornerstone
of Puerto Rico's economy, accounting for $13.2 billion or 38.7% of gross
domestic product in 1992. However, manufacturing has experienced a basic
change over the years as a result of the influx of higher wage, high
technology industries such as the pharmaceutical industry, electronics,
computers, micro-processors, scientific instruments and high technology
machinery. The service sector, which includes wholesale and retail trade,
finance and real estate, ranks second in its contribution to gross domestic
product and is the sector that employs the greatest number of people. In
fiscal 1992, the service sector generated $13.0 billion in gross domestic
product or 38.3% of the total and employed over 449,000 workers providing
46% of total employment. The government sector and tourism also contribute
to the island economy each accounting for $3.7 billion and $1.5 billion in
fiscal 1992, respectively.
Much of the development of the manufacturing sector of the economy of
Puerto Rico is attributable to federal and Commonwealth tax incentives,
most notably section 936 of the Internal Revenue Code of 1986, as amended
("Section 936") and the Commonwealth's Industrial Incentives Program.
Section 936 currently grants U.S. corporations that meet certain criteria
and elect its application a credit against their U.S. corporate income tax
on the portion of the tax attributable to (i) income derived from the
active conduct of a trade or business in Puerto Rico ("active income"), or
from the sale or exchange of substantially all the assets used in the
active conduct of such trade or business, and (ii) qualified possession
source investment income ("passive income"). The Industrial Incentives
Program, through the 1987 Industrial Incentives Act, grants corporations
engaged in certain qualified activities a fixed 90% exemption from
Commonwealth income and property taxes and a 60% exemption from municipal
license taxes.
On August 16, 1993, President Clinton signed a bill amending Section 936.
Under the amendments, U.S. corporations with operations in Puerto Rico can
elect to receive a federal income tax credit equal to: 40% of the credit
currently available, phased in over a five year period, starting at 60% of
the current credit, or a credit based on investment and wages. The
investment and wage credit would equal the sum of (i) 60% of qualified
compensation to employees, (ii) a specified percentage of depreciation
deductions with respect to tangible property located in Puerto Rico, and
(iii) a portion of income taxed paid to Puerto Rico, up to a 9% effective
tax rate, subject to certain requirements. It is not possible to determine
at this time whether the reductions in tax incentives for operations in
Puerto Rico will have a significant impact on the economy of Puerto Rico or
the time period in which such impact would arise.
6PORTFOLIO TRANSACTIONS
All orders for the purchase or sale of portfolio securities are placed on
behalf of the funds by FMR (either directly or through affiliated
sub-advisers) pursuant to authority contained in each fund's management
contract. FMR is also responsible for the placement of transaction orders
for other investment companies and accounts for which it or its affiliates
act as investment adviser. Securities purchased and sold by the money
market fund will be traded on a net basis (i.e., without commission). In
selecting broker-dealers, subject to applicable limitations of the federal
securities laws, FMR will consider various relevant factors, including, but
not limited to, the size and type of the transaction; the nature and
character of the markets for the security to be purchased or sold; the
execution efficiency, settlement capability, and financial condition of the
broker-dealer firm; the broker-dealer's execution services rendered on a
continuing basis; and the reasonableness of any commissions.
The funds may execute portfolio transactions with broker-dealers who
provide research and execution services to the funds or other accounts over
which FMR or its affiliates exercise investment discretion. Such services
may include advice concerning the value of securities; the advisability of
investing in, purchasing, or selling securities; the availability of
securities or the purchasers or sellers of securities; furnishing analyses
and reports concerning issuers, industries, securities, economic factors
and trends, portfolio strategy, and performance of accounts; and effecting
securities transactions and performing functions incidental thereto (such
as clearance and settlement). FMR maintains a listing of broker-dealers
who provide such services on a regular basis. However, as many
transactions on behalf of the money market fund are placed with
broker-dealers (including broker-dealers on the list) without regard to the
furnishing of such services, it is not possible to estimate the proportion
of such transactions directed to such broker-dealers solely because such
services were provided. The selection of such broker-dealers generally is
made by FMR (to the extent possible consistent with execution
considerations) based upon the quality of research and execution services
provided.
The receipt of research from broker-dealers that execute transactions on
behalf of the funds may be useful to FMR in rendering investment management
services to the funds or its other clients, and, conversely, such research
provided by broker-dealers who have executed transaction orders on behalf
of other FMR clients may be useful to FMR in carrying out its obligations
to the funds. The receipt of such research has not reduced FMR's normal
independent research activities; however, it enables FMR to avoid
additional expenses that could be incurred if FMR tried to develop
comparable information through its own efforts.
Subject to applicable limitations of the federal securities laws,
broker-dealers may receive commissions for agency transactions that are in
excess of the amount of commissions charged by other broker-dealers in
recognition of their research and execution services. In order to cause
the funds to pay such higher commissions, FMR must determine in good faith
that such commissions are reasonable in relation to the value of the
brokerage and research services provided by such executing broker-dealers,
viewed in terms of a particular transaction or FMR's overall
responsibilities to the funds and its other clients. In reaching this
determination, FMR will not attempt to place a specific dollar value on the
brokerage and research services provided or to determine what portion of
the compensation should be related to those services.
FMR is authorized to use research services provided by and to place
portfolio transactions with brokerage firms that have provided assistance
in the distribution of shares of the funds, or shares of other Fidelity
funds, to the extent permitted by law. FMR may use research services
provided by and place agency transactions with Fidelity Brokerage Services,
Inc. (FBSI), a member of the New York Stock Exchange and a subsidiary of
FMR Corp., if the commissions are fair and reasonable and comparable to
commissions charged by non-affiliated, qualified brokerage firms for
similar services.
Section 11(a) of the Securities Exchange Act of 1934 prohibits members of
national securities exchanges from executing exchange transactions for
accounts which they or their affiliates manage, except if certain
requirements are satisfied . Pursuant to such requirements , the
Board of Trustees has authorized FBSI to execute fund
portfolio transactions on national securities exchanges in accordance
with approved procedures and applicable SEC rules. For the fiscal
year ended January 31, 1994, and the fiscal periods May 1, 1992 to
January 31, 1993, and May 1, 1991 to April 30, 1992, the funds
paid no brokerage commissions.
The Trustees periodically review FMR's performance of its responsibilities
in connection with the placement of portfolio transactions on behalf of the
funds and review the commissions paid by each fund over representative
periods of time to determine if they are reasonable in relation to the
benefits to each fund.
For the fiscal year ended January 31, 1994, and the period May 2, 1992
to January 31, 1993, the insured fund's portfolio turnover rates were 48%,
and 39% (annualized) and the high yield fund's portfolio turnover rates
were 70%, and 45% (annualized), respectively.
From time to time the Trustees will review whether the recapture for the
benefit of the funds of some portion of the brokerage commissions or
similar fees paid by the funds on portfolio transactions is legally
permissible and advisable. Each fund seeks to recapture soliciting
broker-dealer fees on the tender of portfolio securities, but at present no
other recapture arrangements are in effect. The Trustees intend to
continue to review whether recapture opportunities are available and are
legally permissible and, if so, to determine in the exercise of their
business judgment whether it would be advisable for the funds to seek such
recapture.
Although the Trustees and officers of the funds are substantially the same
as those of other funds managed by FMR, investment decisions for each fund
are made independently from those of other funds managed by FMR or accounts
managed by FMR affiliates. It sometimes happens that the same security is
held in the portfolio of more than one of these funds or accounts.
Simultaneous transactions are inevitable when several funds are managed by
the same investment adviser, particularly when the same security is
suitable for the investment objective of more than one fund.
When two or more funds are simultaneously engaged in the purchase or sale
of the same security, the prices and amounts are allocated in accordance
with a formula considered by the officers of the funds involved to be
equitable to each fund. In some cases, this system could have a
detrimental effect on the price or value of the security as far as the
funds are concerned. In other cases, however, the ability of the funds to
participate in volume transactions will produce better executions and
prices for the funds. It is the current opinion of the Trustees that the
desirability of retaining FMR as investment adviser to the funds outweighs
any disadvantages that may be said to exist from exposure to simultaneous
transactions.
7VALUATION OF PORTFOLIO SECURITIES
INSURED AND HIGH YIELD FUNDS. Valuations of portfolio securities furnished
by the pricing service employed by the funds are based upon a computerized
matrix system or appraisals by the pricing service, in each case in
reliance upon information concerning market transactions and quotations
from recognized municipal securities dealers. The methods used by the
pricing service and the quality of valuations so established are reviewed
by officers of the funds and FSC under the general supervision of the
Board of Trustees. There are a number of pricing services
available, and the Trustees, or officers acting on behalf of the Trustees,
on the basis of on-going evaluation of these services, may use other
pricing services or discontinue the use of any pricing service in whole or
in part. Futures contracts and options are valued on the basis of market
quotations if available.
MONEY MARKET FUND. The fund values its investments on the basis of
amortized cost. This technique involves valuing an instrument at its cost
as adjusted for amortization of premium or accretion of discount rather
than its value based on current market quotations or appropriate
substitutes which reflect current market conditions. The amortized cost
value of an instrument may be higher or lower than the price the fund would
receive if it sold the instrument.
Valuing the fund's instruments on the basis of amortized cost and use of
the term "money market fund" are permitted by Rule 2a-7 under the
Investment Company Act of 1940. The fund must adhere to certain conditions
under Rule 2a-7 .
The Board of Trustees of the trust oversees FMR's adherence to SEC rules
concerning money market funds, and has established procedures designed to
stabilize the fund's NAV at $1.00. At such intervals as they deem
appropriate, the Trustees consider the extent to which NAV calculated by
using market valuations would deviate from $1.00 per share. If the
Trustees believe that a deviation from the fund's amortized cost per share
may result in material dilution or other unfair results to shareholders,
the Trustees have agreed to take such corrective action, if any, as they
deem appropriate to eliminate or reduce, to the extent reasonably
practicable, the dilution or unfair results. Such corrective action could
include selling portfolio instruments prior to maturity to realize capital
gains or losses or to shorten average portfolio maturity; withholding
dividends; redeeming shares in kind; establishing NAV by using available
market quotations; and such other measures as the Trustees may deem
appropriate.
During periods of declining interest rates, the fund's yield based on
amortized cost may be higher than the yield based on market valuations.
Under these circumstances, a shareholder in the fund would be able to
obtain a somewhat higher yield than would result if the fund utilized
market valuations to determine its NAV. The converse would apply in a
period of rising interest rates.
8PERFORMANCE
The funds may quote performance in various ways. All performance
information supplied by the funds in advertising is historical and is not
intended to indicate future returns. The insured and high yield funds'
share prices, and all of the funds' yields and total returns fluctuate in
response to market conditions and other factors. The value of the insured
and high yield funds' shares when redeemed may be more or less than their
original cost.
YIELD CALCULATIONS. To compute the MONEY MARKET FUND'S yield for a period,
the net change in value of a hypothetical account containing one share
reflects the value of additional shares purchased with dividends from the
one original share and dividends declared on both the original share and
any additional shares. The net change is then divided by the value of the
account at the beginning of the period to obtain a base period return.
This base period return is annualized to obtain a current annualized yield.
The money market fund also may calculate an effective yield by compounding
the base period return over a one-year period. In addition to the current
yield, the money market fund may quote yields in advertising based on any
historical seven-day period.
For the INSURED AND HIGH YIELD FUNDS, yields used in advertising are
computed by dividing a fund's interest income for a given 30-day or
one-month period, net of expenses, by the average number of shares entitled
to receive dividends during the period, dividing this figure by the fund's
net asset value per share at the end of the period, and annualizing the
result (assuming compounding of income) in order to arrive at an annual
percentage rate. Income is calculated for purposes of the insured and high
yield funds' yield quotations in accordance with standardized methods
applicable to all stock and bond funds. In general, interest income is
reduced with respect to bonds trading at a premium over their par value by
subtracting a portion of the premium from income on a daily basis, and is
increased with respect to bonds trading at a discount by adding a portion
of the discount to daily income. Capital gains and losses generally are
excluded from the calculation.
Income calculated for purposes of determining the insured and high yield
funds' yields differs from income as determined for other accounting
purposes. Because of the different accounting methods used, and because of
the compounding of income assumed in yield calculations, each fund's yield
may not equal its distribution rate, the income paid to your account, or
the income reported in the funds' financial statements.
A fund's tax-equivalent yield is the rate an investor would have to earn
from a fully taxable investment after taxes to equal the fund's tax-free
yield. Tax-equivalent yields are calculated by dividing a fund's yield by
the result of one minus a stated federal or combined federal, state, and
city tax rate. (If only a portion of the fund's yield is tax-exempt, only
that portion is adjusted in the calculation.)
The tables below and on page 20 show the effect of a shareholder's
tax status on effective yield under federal and state income tax laws for
1994. They show the approximate yield a taxable security must provide at
various income brackets to produce after-tax yields equivalent to those of
hypothetical tax-exempt obligations yielding from 2.0% to 8.0%. Of course,
no assurance can be given that a fund will achieve any specific
tax-equivalent yield. While each fund invests principally in obligations
whose interest is exempt from federal income tax, other income received by
the funds may be taxable.
Use this table to find your approximate effective tax bracket on investment
income as a New York resident with triple taxes (federal, state, and New
York City) or double taxes (federal and state) for 1994.
1994 TAX RATES

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Combined

New York

State and Combined New

Marginal Federal Federal York State,
City

Taxable Income Income Marginal Effective and Federal

Single Return* Joint Return* Tax Bracket Tax Rate Tax Bracket Tax Bracket

</TABLE>

New York
New York

State State and

City

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
$22, 751 - $25,000 $38,001 - $45,000 28% 7.59% 11.99% 33.47% 36.63%

25,001 - 55,100 45,001 - 91,850 28% 7.59% 11.99% 33.47% 36.64%

55,101 - 60,000 91,851 - 108,000 31% 7.59% 12.05% 36.24% 39.28%

60,001 - 115,000 108,001 - 140,000 31% 7.59% 12.05% 36.24% 39.32%

115,001 - 250,000 140,001 - 250,000 36% 7.59% 12.05% 40.86% 43.71%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
250,001 + above 250,001 + above 39.6% 7.59% 12.05% 44.19% 46.88%

</TABLE>

*Taxable income (gross income after all exemptions, adjustments, and
deductions) based on 1994 tax rates.
Having determined your effective tax bracket on the previous page, use the
appropriate table below to determine the tax-equivalent yield for a given
tax-free yield.
NEW YORK CITY RESIDENTS - TRIPLE TAXES - 1994
If your effective combined federal, state, and New York City personal
income tax rate in 1994 is:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
36.63% 36.64% 39.28% 39.32% 43.71% 46.88%

</TABLE>

To match these
tax-free yields: Your taxable investment would have to earn the following
yield:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
2% 3.16% 3.16% 3.29% 3.30% 3.55% 3.77%

3% 4.73% 4.73% 4.94% 4.94% 5.33% 5.65%

4% 6.31% 6.31% 6.59% 6.59% 7.11% 7.53%

5% 7.89% 7.89% 8.23% 8.24% 8.88% 9.41%

6% 9.47% 9.47% 9.88% 9.89% 10.66% 11.30%

7% 11.05% 11.05% 11.53% 11.54% 12.44% 13.18%

</TABLE>

NEW YORK STATE RESIDENTS (OUTSIDE NYC) - DOUBLE TAXES - 1994
If your effective combined federal and state personal income tax rate in
1994 is:
33.47% 36.24% 40.86% 44.19%

To match these
tax-free yields: Your taxable investment would have to earn the following
yield:
2% 3.01% 3.14% 3.38% 3.58%

3% 4.51% 4.71% 5.07% 5.38%

4% 6.01% 6.27% 6.76% 7.17%

5% 7.52% 7.84% 8.45% 8.96%

6% 9.02% 9.41% 10.15% 10.75%

7% 10.52% 10.98% 11.84% 12.54%

The money market fund may invest a portion of its assets in obligations
that are subject to state or federal income taxes. When the money market
fund invests in these obligations, its tax-equivalent yields will be lower.
In the tables above, tax-equivalent yields are calculated assuming
investments are 100% federally and state tax-free.
Yield information may be useful in reviewing the funds' performance and in
providing a basis for comparison with other investment alternatives.
However, each fund's yield fluctuates, unlike investments that pay a fixed
interest rate over a stated period of time. When comparing investment
alternatives, investors should also note the quality and maturity of the
portfolio securities of the respective investment companies they have
chosen to consider.
Investors should recognize that in periods of declining interest rates, a
fund's yield will tend to be somewhat higher than prevailing market rates,
and in periods of rising interest rates, a fund's yield will tend to be
somewhat lower. Also, when interest rates are falling, the inflow of net
new money to a fund from the continuous sale of its shares will likely be
invested in instruments producing lower yields than the balance of the
fund's holdings, thereby reducing the fund's current yield. In periods of
rising interest rates, the opposite can be expected to occur.
TOTAL RETURN CALCULATIONS. Total returns quoted in advertising reflect all
aspects of a fund's return, including the effect of reinvesting dividends
and capital gain distributions (if any), and any change in the fund's net
asset value per share (NAV) over the period. Average annual total returns
are calculated by determining the growth or decline in value of a
hypothetical historical investment in a fund over a stated period, and then
calculating the annually compounded percentage rate that would have
produced the same result if the rate of growth or decline in value had been
constant over the period. For example, a cumulative total return of 100%
over ten years would produce an average annual total return of 7.18%, which
is the steady annual rate of return that would equal 100% growth on a
compounded basis in ten years. While average annual total returns are a
convenient means of comparing investment alternatives, investors should
realize that a fund's performance is not constant over time, but changes
from year to year, and that average annual total returns represent averaged
figures as opposed to the actual year-to-year performance of the fund.
In addition to average annual total returns, a fund may quote unaveraged or
cumulative total returns reflecting the simple change in value of an
investment over a stated period. Average annual and cumulative total
returns may be quoted as a percentage or as a dollar amount, and may be
calculated for a single investment, a series of investments, or a series of
redemptions, over any time period. Total returns may be broken down into
their components of income and capital (including capital gains and changes
in share price) in order to illustrate the relationship of these factors
and their contributions to total return. An example of this type of
illustration is given below. Total returns, yields, and other performance
information may be quoted numerically or in a table, graph, or similar
illustration.
NET ASSET VALUE (INSURED AND HIGH YIELD FUNDS ONLY) . Charts and
graphs using a fund ' s net asset values, adjusted net asset
values, and benchmark indices may be used to exhibit performance. An
adjusted NAV includes any distributions paid by the fund and reflects all
elements of its return. Unless otherwise indicated, each fund's adjusted
NAVs are not adjusted for sales charges, if any.
HISTORICAL RESULTS. The following table shows the funds' total returns for
the periods ended January 31, 1994.

<TABLE>
<CAPTION>
<S> <C> <C>
Average Annual Total Returns* Cumulative Total Returns*

</TABLE>

One Five Life of One Five Life of

Year Years Fund** Year Years Fund**

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Money Market Fund 1.84% 3.69% 4.10% 1.84% 19.85% 46.94%

Insured Fund 12.36% 9.71% 9.47% 12.36% 58.94% 112.26%

High Yield Fund 12.70% 9.86% 10.82% 12.70% 59.99% 167.41%

</TABLE>

* If FMR had not reimbursed certain fund expenses during these periods, the
funds' total returns would have been lower.
** The funds commenced operations on July 6, 1984 (money market fund),
October 11, 1985 (insured fund), and July 10, 1984 (high yield fund).
Prior to October 1, 1985, the money market fund was designed as a
Short-Term Bond Portfolio and did not seek to maintain a stable $1.00 share
price.
The money market fund's seven-day yield as of January 31, 1994 was
1.82 %, with a corresponding tax-equivalent yield of 3.23 %.
The insured and high yield funds' 30-day yields as of January 31, 1994 were
4.40 % and 4.56 %, respectively, with corresponding
tax-equivalent yields of 7.82 % and 8.10 %, respectively.
Tax-equivalent yields are based on the 1994 combined federal, New York
State, and New York City income tax rate of 43.71 %.
The following tables show the income and capital elements of each fund's
total returns from their respective commencement of operations to
January 31, 1994 . In addition, the tables compare each fund's return
to the record of the Standard & Poor's 500 Composite Stock Price Index
(S&P 500), the Dow Jones Industrial Average (DJIA), and the cost of
living (measured by the Consumer Price Index, or CPI) over the same
period s . The S&P 500 and DJIA comparisons are provided to show
how each fund's total return compared to the return of a broad average of
common stocks and a narrower set of stocks of major industrial companies,
respectively . Of course, since the funds invest in money market and
fixed-income securities, common stocks represent a different type of
investment from the funds. Common stocks generally offer greater potential
growth than the funds, but generally experience greater price volatility,
which means a greater potential for loss. In addition, common stocks
generally provide lower income than a money market or bond fund investment
such as the funds. The S&P 500 and DJIA are based on the prices of
unmanaged groups of stocks and, unlike the funds' returns, their returns do
not include the effect of paying brokerage commissions or other costs of
investing. During the periods quoted, interest rates and bond prices
fluctuated widely; thus, the figures should not be considered
representative of the dividend income or capital gain or loss that could be
realized from investments in the funds today.
MONEY MARKET FUND. During the period July 6, 1984 (commencement of
operations) through January 31, 1994, a hypothetical $10,000 investment in
the fund would have grown to $ 14,694 , assuming all distributions
were reinvested.

<TABLE>
<CAPTION>
<S> <C>
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO INDICES

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Value of Value of Value of

Initial Reinvested Reinvested Cost

Period $10,000 Dividend Capital Gain Total of

Ended Investment Distributions Distributions Value S&P DJIA Living**
500

</TABLE>

1/31/85* $10,030 $ 334 $0 $10,364 $12,072 $11,767 $10,174

1/31/86 9,990 855 0 10,845 14,838 15,013 10,569

1/31/87 9,990 1,290 0 11,280 19,871 21,361 10,723

1/31/88 9,990 1,729 0 11,719 19,210 19,996 11,157

1/31/89 9,990 2,270 0 12,260 23,069 24,791 11,678

1/31/90 9,990 2,943 0 12,933 26,407 28,461 12,285

1/31/91 9,990 3,593 0 13,583 28,620 31,247 12,980

1/31/92 9,990 4,103 0 14,093 35,118 38,021 13,317

1/31/93 9,990 4,439 0 14,429 38,842 40,216 13,751

1/31/94 9,990 4,704 0 14,694 43,843 49,713 14,098

</TABLE>

* From July 6, 1984 (commencement of operations)
** From month-end closest to initial investment date
Explanatory Notes: With an initial investment of $10,000 made on July 6,
1984, the net amount invested in fund shares was $10,000. The cost of the
initial investment ($10,000), together with the aggregate cost of
reinvested dividends for the period covered (their cash value at the time
they were reinvested), amounted to $ 14,705 . If distributions had
not been reinvested, the amount of distributions earned from the fund over
time would have been smaller, and cash payments (dividends) for the period
would have amounted to $3,863. The fund did not distribute any capital
gains during the period. If FMR had not reimbursed certain fund expenses,
the fund's total returns would have been lower.
INSURED FUND. During the period October 11, 1985 (commencement of
operations) through January 31, 1994, a hypothetical $10,000 investment in
the fund would have grown to $ 21,226 , assuming all distributions
were reinvested.
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO INDICES

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Value of Value of Value of

Initial Reinvested Reinvested Cost

Period $10,000 Dividend Capital Gain Total of

Ended Investment Distributions Distributions Value S&P DJIA Living**
500

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
1/31/86* $ 10,720 $ 247 $ 0 $ 10,967 $ 11,728 $ 11,970 $ 10,120

1/31/87 11,480 1,032 11 12,523 15,705 17,031 10,268

1/31/88 10,660 1,758 11 12,429 15,183 15,942 10,683

1/31/89 10,730 2,614 11 13,354 18,233 19,765 11,182

1/31/90 10,770 3,514 11 14,295 20,871 22,691 11,764

1/31/91 10,910 4,529 11 15,450 22,620 24,913 12,428

1/31/92 11,380 5,746 11 17,137 27,756 30,314 12,752

1/31/93 11,830 7,049 12 18,890 30,700 32,063 13,167

1/31/94 12,300 8,393 533 21,226 34,652 39,635 13,500

</TABLE>

* From October 11, 1985 (commencement of operations)
** From month-end closest to initial investment date
Explanatory Notes: With an initial investment of $10,000 made on October
11, 1985, the net amount invested in fund shares was $10,000. The cost of
the initial investment ($10,000), together with the aggregate cost of
reinvested dividends and capital gain distributions for the period covered
(their cash value at the time they were reinvested), amounted to $18,073.
If distributions had not been reinvested, the amount of distributions
earned from the fund over time would have been smaller, and cash payments
for the period would have amounted to $5,727 for income dividends and $320
for capital gain distributions. If FMR had not reimbursed certain fund
expenses, the fund's total returns would have been lower.
HIGH YIELD FUND. During the period July 10, 1984 (commencement of
operations) through January 31, 1994, a hypothetical $10,000 investment in
the fund would have grown to $26,741, assuming all distributions were
reinvested.
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO INDICES

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Value of Value of Value of

Initial Reinvested Reinvested Cost

Period $10,000 Dividend Capital Gain Total of

Ended Investment Distributions Distributions Value S&P DJIA Living**
500

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
1/31/85* $ 10,770 $ 547 $ 0 $ 11,317 $ 12,005 $ 11,662 $ 10,174

1/31/86 11,790 1,672 0 13,462 14,756 14,880 10,569

1/31/87 12,490 2,781 217 15,488 19,761 21,171 10,723

1/31/88 11,490 3,604 327 15,421 19,103 19,818 11,157

1/31/89 11,620 4,764 330 16,714 22,941 24,570 11,678

1/31/90 11,650 5,969 331 17,950 26,260 28,208 12,285

1/31/91 11,650 7,245 331 19,227 28,461 30,969 12,980

1/31/92 12,110 8,867 344 21,322 34,924 37,683 13,317

1/31/93 12,660 10,707 360 23,727 38,627 39,858 13,751

1/31/94 13,050 12,410 1,281 26,741 43,600 49,270 14,098

</TABLE>

* From July 10, 1984 (commencement of operations)
** From month-end closest to initial investment date
Explanatory Notes: With an initial investment of $10,000 made on July 10,
1984, the net amount invested in fund shares was $10,000. The cost of the
initial investment ($10,000), together with the aggregate cost of
reinvested dividends and capital gain distributions for the period covered
(their cash value at the time they were reinvested), amounted to $22,413.
If distributions had not been reinvested, the amount of distributions
earned from the fund over time would have been smaller, and cash payments
for the period would have amounted to $7,704 for income dividends and $730
for capital gain distributions. If FMR had not reimbursed certain fund
expenses, the fund's total returns would have been lower.
The funds may be compared in advertising to Certificates of Deposit
(CDs), the Bank Rate Monitor National Index, an average of the quoted rates
for 100 leading banks and thrifts in ten U.S. cities chosen to represent
the ten largest Consumer Metropolitan Statistical Areas, three-month Euro
Deposit rates according to Reuters, and other investments issued by banks.
The Euro Deposit rates according to Reuters are quoted by foreign banks
rated "A" or better. The funds differ from bank investments in several
respects. A fund may offer greater liquidity and higher potential returns
than CDs but unlike CDs, a fund is not FDIC-insured and its share price,
yield, and return will fluctuate.
A fund's performance may be compared to the performance of other mutual
funds in general, or to the performance of particular types of mutual
funds. These comparisons may be expressed as mutual fund rankings
prepared by Lipper Analytical Services, Inc. (Lipper), an independent
service located in Summit, New Jersey that monitors the performance of
mutual funds. Lipper generally ranks funds on the basis of total return,
assuming reinvestment of distributions, but does not take sales charges or
redemption fees into consideration, and is prepared without regard to tax
consequences. Lipper may also rank funds based on yield. In addition to
the mutual fund rankings, a fund's performance may be compared to mutual
fund performance indices prepared by Lipper.
From time to time, a fund's performance may also be compared to other
mutual funds tracked by financial or business publications and periodicals.
For example, the fund may quote Morningstar, Inc. in its advertising
materials. Morningstar, Inc. is a mutual fund rating service that rates
mutual funds on the basis of risk-adjusted performance. Rankings that
compare the performance of Fidelity funds to one another in appropriate
categories over specific periods of time may also be quoted in advertising.
Fidelity may provide information designed to help individuals understand
their investment goals and explore various financial strategies. For
example, Fidelity's FundMatchsm Program includes a workbook describing
general principles of investing, such as asset allocation, diversification,
risk tolerance, and goal setting; a questionnaire designed to help create a
personal financial profile; and an action plan offering investment
alternatives. Materials may also include discussions of Fidelity's three
asset allocation funds and other Fidelity funds, products, and services.
Ibbotson Associates of Chicago, Illinois (Ibbotson) provides historical
returns of the capital markets in the United States, including common
stocks, small capitalization stocks, long-term corporate bonds,
intermediate-term government bonds, long-term government bonds, Treasury
bills, the U.S. rate of inflation (based on the CPI), and combinations of
various capital markets. The performance of these capital markets is based
on the returns of different indices.
Fidelity funds may use the performance of these capital markets in order to
demonstrate general risk-versus-reward investment scenarios. Performance
comparisons may also include the value of a hypothetical investment in any
of these capital markets. The risks associated with the security types in
any capital market may or may not correspond directly to those of the
funds. Ibbotson calculates total returns in the same method as the funds.
The funds may also compare performance to that of other compilations or
indices that may be developed and made available in the future.
A fund may compare its performance or the performance of securities in
which it may invest to averages published by IBC USA (Publications), Inc.
of Ashland, Massachusetts. These averages assume reinvestment of
distributions. The IBC/Donoghue's MONEY FUND AVERAGES(trademark)/All
Tax-Free, which is reported in the MONEY FUND REPORT(Registered trademark),
covers over 345 tax-free money market funds. The Bond Fund Report
AverageS(trademark)/All Tax-Free, which is reported in the BOND FUND
REPORT(trademark), covers over 372 tax-free bond funds. When
evaluating comparisons to money market funds, investors should consider the
relevant differences in investment objectives and policies. Specifically,
money market funds invest in short-term, high-quality instruments and seek
to maintain a stable $1.00 share price. The insured and high yield
funds, however, invest in longer-term instruments and their share prices
change daily in response to a variety of factors.
A fund may compare and contrast in advertising the relative advantages of
investing in a mutual fund versus an individual municipal bond. Unlike
tax-free mutual funds, individual municipal bonds offer a stated rate of
interest and, if held to maturity, repayment of principal. Although some
individual municipal bonds might offer a higher return, they do not offer
the reduced risk of a mutual fund that invests in many different
securities. The initial investment requirements and sales charges of many
tax-free mutual funds are lower than the purchase cost of individual
municipal bonds, which are generally issued in $5,000 denominations and are
subject to direct brokerage costs.
In advertising materials, Fidelity may reference or discuss its products
and services, which may include: other Fidelity funds; retirement
investing; brokerage products and services; the effects of periodic
investment plans and dollar cost averaging; saving for college; charitable
giving; and the Fidelity credit card. In addition, Fidelity may quote
financial or business publications and periodicals, including model
portfolios or allocations, as they relate to fund management, investment
philosophy, and investment techniques. Fidelity may also reprint, and use
as advertising and sales literature, articles from Fidelity Focus, a
quarterly magazine provided free of charge to Fidelity fund shareholders.
A fund may present its fund number, Quotron(trademark) number, and CUSIP
number, and discuss or quote its current portfolio manager.
The insured and high yield fund s may advertise examples of
the effects of periodic investment plans, including the principle of dollar
cost averaging. In such a program, an investor invests a fixed dollar
amount in a fund at periodic intervals, thereby purchasing fewer shares
when prices are high and more shares when prices are low. While such a
strategy does not assure a profit or guard against loss in a declining
market, the investor's average cost per share can be lower than if fixed
numbers of shares are purchased at the same intervals. In evaluating such
a plan, investors should consider their ability to continue purchasing
shares during periods of low price levels.
As of January 31, 1994, FMR advised 43 tax-free funds with a total
value of over $30 billion in assets . According to the
Investment Company Institute, over the past ten years, assets in
tax-exempt funds increased from $ 45 billion in 1984 to approximately
$358 billion at the end of 1993. The fund s may reference the
growth and variety of money market mutual funds and the adviser's
innovation and participation in the industry.
9ADDITIONAL PURCHASE AND REDEMPTION INFORMATION
Each fund is open for business and its net asset value per share (NAV) is
calculated each day the New York Stock Exchange (NYSE) is open for trading.
The NYSE has designated the following holiday closings for 1994:
Washington's Birthday (observed), Good Friday, Memorial Day (observed),
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day
(observed). Although FMR expects the same holiday schedule, with the
addition of New Year's Day, to be observed in the future, the NYSE may
modify its holiday schedule at any time. Also, the money market fund will
be closed for wire purchases and redemptions on days when the
Federal Reserve W ire S ystem is closed.
FSC normally calculates the money market fund's NAV twice each business
day, once at 12:00 noon Eastern time and once as of the close of the NYSE
(normally 4:00 p.m. Eastern time). FSC normally determines the insured and
high yield funds' NAV s as of the close of the NYSE (normally 4:00
p.m. Eastern time ) . However, NAV may be calculated earlier if
trading on the NYSE is restricted or as permitted by the SEC. To the
extent that portfolio securities are traded in other markets on days when
the NYSE is closed, a fund's NAV may be affected on days when investors do
not have access to the fund to purchase or redeem shares.
If the Trustees determine that existing conditions make cash
payment s undesirable, redemption payments may be made in whole or in
part in securities or other property, valued for this purpose as they are
valued in computing a fund's NAV. Shareholders receiving securities
or other property on redemption may realize a gain or loss for tax
purposes, and will incur any costs of sale, as well as the associated
inconveniences.
Pursuant to Rule 11a-3 under the Investment Company Act of 1940 (the
1940 Act ) , each fund is required to give shareholders at least
60 days' notice prior to terminating or modifying its exchange privilege.
Under the Rule, the 60-day notification requirement may be waived if (i)
the only effect of a modification would be to reduce or eliminate an
administrative fee, redemption fee, or deferred sales charge ordinarily
payable at the time of exchange, or (ii) a fund suspends the redemption of
the shares to be exchanged as permitted under the 1940 Act or the rules
and regulations thereunder , or the fund to be acquired suspends the
sale of its shares because it is unable to invest amounts effectively in
accordance with its investment objective and policies.
In the Prospectus, each fund has notified shareholders that it reserves the
right at any time, without prior notice, to refuse exchange purchases by
any person or group if, in FMR's judgment, the fund would be unable
to invest effectively in accordance with its investment objective and
policies, or would otherwise potentially be adversely affected.
10DISTRIBUTIONS AND TAXES
DISTRIBUTIONS. If you request to have distributions mailed to you and the
U.S. Postal Service cannot deliver your checks, or if your checks remain
uncashed for six months, Fidelity may reinvest your distributions at the
then-current NAV. All subsequent distributions will then be reinvested
until you provide Fidelity with alternate instructions.
DIVIDENDS. To the extent that each fund's income is derived from federally
tax-exempt interest, the daily dividends declared by each fund also are
federally tax-exempt. The funds will send each shareholder a notice in
January describing the tax status of dividends and capital gain
distributions (if any) for the prior year.
Shareholders are required to report tax-exempt income on their federal tax
returns. Shareholders who earn other income, such as social security
benefits, may be subject to federal income tax on up to one half of such
benefits to the extent that their income, including tax-exempt income,
exceeds certain base amounts.
The funds purchase municipal obligations based on opinions of bond counsel
regarding the federal income tax status of the obligations. These opinions
generally will be based upon covenants by the issuers regarding continuing
compliance with federal tax requirements. If the issuer of an obligation
fails to comply with its covenants at any time, interest on the obligation
could become federally taxable retroactive to the date the obligation was
issued.
As a result of the Tax Reform Act of 1986, interest on certain "private
activity" securities (referred to as "qualified bonds" in the Internal
Revenue Code) is subject to the federal alternative minimum tax (AMT),
although the interest continues to be excludable from gross income for
other tax purposes. Interest from private activity securities will be
considered tax-exempt for purposes of the funds' policies of investing so
that at least 80% of their income is free from federal income tax. Interest
from private activity securities is a tax-preference item for the purposes
of determining whether a taxpayer is subject to the AMT and the amount of
AMT to be paid, if any. Private activity securities issued after August 7,
1986 to benefit a private or industrial user or to finance a private
facility are affected by this rule.
Corporate investors should note that a tax preference item for purposes of
the corporate AMT is 75% of the amount by which adjusted current earnings
(which includes tax-exempt interest) exceeds alternative minimum taxable
income of the corporation.
If a shareholder receives an exempt-interest dividend and sells shares at a
loss after holding them for a period of six months or less, the loss will
be disallowed to the extent of the amount of exempt-interest dividend.
CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by the funds on
the sale of securities and distributed to shareholders are federally
taxable as long-term capital gains, regardless of the length of time that
shareholders have held their shares. If a shareholder receives a long-term
capital gain distribution on shares of a fund and such shares are held six
months or less and are sold at a loss, the portion of the loss equal to the
amount of the long-term capital gain distribution will be considered a
long-term loss for tax purposes.
A portion of the gain on bonds purchased at a discount after April 30, 1993
and short-term capital gains distributed by the funds are federally taxable
to shareholders as dividends, not as capital gains. Distributions from
short-term capital gains do not qualify for the dividends-received
deduction. Dividend distributions resulting from a recharacterization of
gain from the sale of bonds purchased at a discount after April 30, 1993
are not considered income for purposes of the funds ' policy of
investing so that at least 80% of their income is free from federal income
tax. The money market fund may distribute any net realized short-term
capital gains once a year or more often as necessary to maintain its net
asset value at $1.00 a share.
TAX STATUS OF THE FUNDS. Each fund has qualified and intends to continue
to qualify each year as a "regulated investment company" for tax purposes
so that it will not be liable for federal tax on income and capital gains
distributed to shareholders. In order to qualify as a regulated investment
company and avoid being subject to federal income or excise taxes at the
fund level, each fund intends to distribute substantially all of its net
investment income and net realized capital gains (if any) within each
calendar year as well as on a fiscal year basis. Each fund also intends to
comply with other tax rules applicable to regulated investment companies,
including a requirement that capital gains from the sale of securities held
less than three months constitute less than 30% of the fund's gross income
for each fiscal year. Gains from some futures contracts and options are
included in this 30% calculation, which may limit the insured and high
yield funds' investments in such instruments. Fidelity New York Municipal
Trust and Fidelity New York Municipal Trust II treat each of their
respective funds as a separate entity for tax purposes.
As of January 31, 1994, the money market fund had a capital
loss carryover of approximately $79,300, of which $22,700 and $56,600
will expire on January 31, 1998 and January 31, 2002, respectively.
To the extent that capital loss carryovers are used to offset any future
capital gains, it is unlikely that the gains so offset will be distributed
to shareholders since any such distributions may be taxable to shareholders
as ordinary income.
NEW YORK TAX MATTERS. As long as a fund continues to qualify as a
regulated investment company under the federal Code, it will not incur New
York income or franchise tax liability on income and capital gains
distributed to shareholders. New York personal income tax law also
provides that exempt-interest dividends paid by a regulated investment
company, or series thereof, from interest on obligations which are exempt
from tax under New York law are excludable from gross income.
OTHER TAX INFORMATION. The information above is only a summary of some of
the tax con siderations generally affecting the funds and their
shareholders, and no attempt has been made to discuss individual tax
consequences. Investors should consult their tax advisers to determine
whether the funds are suitable to their particular tax situations.
11FMR
FMR is a wholly owned subsidiary of FMR Corp., a parent company organized
in 1972. At present, the principal operating activities of FMR Corp. are
those conducted by three of its divisions as follows: FSC, which is the
transfer and shareholder servicing agent for certain of the funds advised
by FMR; Fidelity Investments Institutional Operations Company, which
performs shareholder servicing functions for certain institutional
customers; and Fidelity Investments Retail Marketing Company, which
provides marketing services to various companies within the Fidelity
organization.
Several affiliates of FMR are also engaged in the investment advisory
business. Fidelity Management Trust Company provides trustee, investment
advisory, and administrative services to retirement plans and corporate
employee benefit accounts. Fidelity Management & Research (U.K.) Inc.
(FMR U.K.) and Fidelity Management & Research (Far East) Inc. (FMR Far
East), both wholly owned subsidiaries of FMR formed in 1986, supply
investment research, and may supply portfolio management services, to FMR
in connection with certain funds advised by FMR. Analysts employed by FMR,
FMR U.K., and FMR Far East research and visit thousands of domestic and
foreign companies each year. FMR Texas, a wholly owned subsidiary of FMR
formed in 1989, supplies portfolio management and research services in
connection with certain money market funds advised by FMR.
12TRUSTEES AND OFFICERS
The Trustees and executive officers of the trusts are listed below. Except
as indicated, each individual has held the office shown or other offices in
the same company for the last five years. Trustees and officers elected or
appointed to Fidelity New York Municipal Trust prior to the money market
fund's conversion from a series of Fidelity New York Municipal Trust to a
series of Fidelity New York Municipal Trust II served Fidelity New York
Municipal Trust in identical capacities. All persons named as Trustees
also serve in similar capacities for other funds advised by FMR. Unless
otherwise noted, the business address of each Trustee and officer is 82
Devonshire Street, Boston, Massachusetts 02109, which is also the address
of FMR. Those Trustees who are "interested persons" (as defined in the
1940 Act) by virtue of their affiliation with either trust or FMR are
indicated by an asterisk (*).
*EDWARD C. JOHNSON 3d, Trustee and President, is Chairman, Chief Executive
Officer and a Director of FMR Corp.; a Director and Chairman of the Board
and of the Executive Committee of FMR; Chairman and a Director of FMR Texas
Inc. (1989), Fidelity Management & Research (U.K.) Inc., and Fidelity
Management & Research (Far East) Inc.
*J. GARY BURKHEAD, Trustee and Senior Vice President, is President of FMR;
and President and a Director of FMR Texas Inc. (1989), Fidelity Management
& Research (U.K.) Inc., and Fidelity Management & Research (Far
East) Inc.
RALPH F. COX, 200 Rivercrest Drive, Fort Worth, TX, Trustee (1991), is a
consultant to Western Mining Corporation (1994). Prior to February 1994, he
was President of Greenhill Petroleum Corporation (petroleum exploration
and production, 1990). Until March 1990, Mr. Cox was President and
Chief Operating Officer of Union Pacific Resources Company (exploration and
production). He is a Director of Bonneville Pacific Corporation
(independent power, 1989) Sanifill Corporation (non-hazardous waste,
1993) and CH2M Hill Companies (engineering). In addition, he served on
the Board of Directors of the Norton Company (manufacturer of industrial
devices, 1983-1990) and continues to serve on the Board of Directors of the
Texas State Chamber of Commerce, and is a member of advisory boards of
Texas A&M University and the University of Texas at Austin.
PHYLLIS BURKE DAVIS, P.O. Box 264, Bridgehampton , NY, Trustee
(1992). Prior to her retirement in September 1991, Mrs. Davis was the
Senior Vice President of Corporate Affairs of Avon Products, Inc. She is
currently a Director of BellSouth Corporation (telecommunications), Eaton
Corporation (manufacturing, 1991), and the TJX Companies, Inc. (retail
stores, 1990), and previously served as a Director of Hallmark Cards, Inc.
(1985-1991) and Nabisco Brands, Inc. In addition, she serves as a Director
of the New York City Chapter of the National Multiple Sclerosis Society,
and is a member of the Advisory Council of the International Executive
Service Corps. and the President's Advisory Council of The University of
Vermont School of Business Administration (1988).
RICHARD J. FLYNN, 77 Fiske Hill, Sturbridge, MA, Trustee, is a financial
consultant. Prior to September 1986, Mr. Flynn was Vice Chairman and a
Director of the Norton Company (manufacturer of industrial devices). He is
currently a Director of Mechanics Bank and a Trustee of College of the Holy
Cross and Old Sturbridge Village, Inc.
E. BRADLEY JONES, 3881-2 Lander Road, Chagrin Falls, OH, Trustee (1990).
Prior to his retirement in 1984, Mr. Jones was Chairman and Chief Executive
Officer of LTV Steel Company. Prior to May 1990, he was Director of
National City Corporation (a bank holding company) and National City Bank
of Cleveland. He is a Director of TRW Inc. (original equipment and
replacement products), Cleveland-Cliffs Inc (mining), NACCO Industries,
Inc. (mining and marketing), Consolidated Rail Corporation, Birmingham
Steel Corporation, Hyster-Yale Materials Handling, Inc. (1989), and RPM,
Inc. (manufacturer of chemical products, 1990). In addition, he serves as
a Trustee of First Union Real Estate Investments, Chairman of the Board of
Trustees and a member of the Executive Committee of the Cleveland Clinic
Foundation, a Trustee and a member of the Executive Committee of University
School (Cleveland), and a Trustee of Cleveland Clinic Florida.
DONALD J. KIRK, 680 Steamboat Road, Apartment #1-North, Greenwich, CT,
Trustee, is a Professor at Columbia University Graduate School of Business
and a financial consultant. Prior to 1987, he was Chairman of the
Financial Accounting Standards Board. Mr. Kirk is a Director of General Re
Corporation (reinsurance) and Valuation Research Corp. (appraisals and
valuations, 1993). In addition, he serves as Vice Chairman of the Board of
Directors of the National Arts Stabilization Fund and Vice Chairman of the
Board of Trustees of the Greenwhich Hospital Association.
*PETER S. LYNCH, Trustee (1990) is Vice Chairman of FMR (1992). Prior to
his retirement on May 31, 1990, he was a Director of FMR (1989) and
Executive Vice President of FMR (a position he held until March 31, 1991);
Vice President of Fidelity Magellan Fund and FMR Growth Group Leader; and
Managing Director of FMR Corp. Mr. Lynch was also Vice President of
Fidelity Investments Corporate Services (1991-1992). He is a Director of
W.R. Grace & Co. (chemicals, 1989) and Morrison Knudsen Corporation
(engineering and construction). In addition, he serves as a Trustee of
Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield
(1989) and Society for the Preservation of New England Antiquities, and as
an Overseer of the Museum of Fine Arts of Boston (1990).
GERALD C. McDONOUGH, 135 Aspenwood Drive, Cleveland, OH, Trustee (1989), is
Chairman of G.M. Management Group (strategic advisory services). Prior to
his retirement in July 1988, he was Chairman and Chief Executive Officer of
Leaseway Transportation Corp. (physical distribution services). Mr.
McDonough is a Director of ACME-Cleveland Corp. (metal working,
telecommunications and electronic products), Brush-Wellman Inc. (metal
refining), York International Corp. (air conditioning and refrigeration,
1989), Commercial Intertech Corp. (water treatment equipment, 1992), and
Associated Estates Realty Corporation (a real estate investment trust,
1993).
EDWARD H. MALONE, 5601 Turtle Bay Drive #2104, Naples, FL, Trustee. Prior
to his retirement in 1985, Mr. Malone was Chairman, General Electric
Investment Corporation and a Vice President of General Electric Company.
He is a Director of Allegheny Power Systems, Inc. (electric utility),
General Re Corporation (reinsurance) and Mattel Inc. (toy manufacturer).
He is also a Trustee of Rensselaer Polytechnic Institute and of Corporate
Property Investors and a member of the Advisory Boards of Butler Capital
Corporation Funds and Warburg, Pincus Partnership Funds.
MARVIN L. MANN, 55 Railroad Avenue, Greenwich, CT, Trustee (1993) is
Chairman of the Board, President, and Chief Executive Officer of Lexmark
International, Inc. (office machines, 1991). Prior to 1991, he held the
positions of Vice President of International Business Machines Corporation
("IBM") and President and General Manager of various IBM divisions and
subsidiaries. Mr. Mann is a Director of M.A. Hanna Company (chemicals,
1993) and Infomart (marketing services, 1991), a Trammell Crow Co. In
addition, he serves as the Campaign Vice Chairman of the Tri-State United
Way (1993) and is a member of the University of Alabama President's Cabinet
(1990).
THOMAS R. WILLIAMS, 21st Floor, 191 Peachtree Street, N.E., Atlanta, GA,
Trustee, is President of The Wales Group, Inc. (management and financial
advisory services). Prior to retiring in 1987, Mr. Williams served as
Chairman of the Board of First Wachovia Corporation (bank holding company),
and Chairman and Chief Executive Officer of The First National Bank of
Atlanta and First Atlanta Corporation (bank holding company). He is
currently a Director of BellSouth Corporation (telecommunications),
ConAgra, Inc. (agricultural products), Fisher Business Systems, Inc.
(computer software), Georgia Power Company (electric utility), Gerber Alley
& Associates, Inc. (computer software), National Life Insurance Company
of Vermont, American Software, Inc. (1989), and AppleSouth, Inc.
(restaurants, 1992).
GARY L. FRENCH, Treasurer (1991). Prior to becoming Treasurer of the
Fidelity funds, Mr. French was Senior Vice President, Fund Accounting -
Fidelity Accounting & Custody Services Co. (1991); Vice President, Fund
Accounting - Fidelity Accounting & Custody Services Co. (1990); and
Senior Vice President, Chief Financial and Operations Officer - Huntington
Advisers, Inc. (1985-1990).
ARTHUR S. LORING, Secretary, is Senior Vice President and General Counsel
of FMR, Vice President - Legal of FMR Corp., and Vice President and Clerk
of FDC.
JANICE BRADBURN is Vice President of the money market fund (1992) and
other funds managed by FMR.
THOMAS D. MAHER, Assistant Vice President (1990), is Assistant Vice
President of Fidelity's money market funds and Vice President and Associate
General Counsel of FMR Texas Inc. (1990).
Under a retirement program that became effective on November 1, 1989,
Trustees, upon reaching age 72, become eligible to participate in a defined
benefit retirement program under which they receive payments during their
lifetime from the funds based on their basic trustee fees and length of
service. Currently, Messrs. Robert L. Johnson, William R. Spaulding,
Bertram H. Witham, and David L. Yunich participate in the program.
As of January 31, 1994, the Trustees and officers of each fund
owned, in the aggregate, less than 1% of the outstanding shares of each
fund.
13MANAGEMENT CONTRACTS
The fund s employ FMR to furnish investment advisory and other
services. Under its management contract with each fund, FMR acts as
investment adviser and, subject to the supervision of the Board of
Trustees, directs the investments of each fund in accordance with its
investment objective, policies, and limitations. FMR also provides the
funds with all necessary office facilities and personnel for servicing the
funds' investments, and compensates all officers of the t rusts, all
Trustees who are "interested persons" of the t rusts or of FMR, and
all personnel of the t rust or FMR performing services relating to
research, statistical, and investment activities.
In addition, FMR or its affiliates, subject to the supervision of the Board
of Trustees, provide the management and administrative services necessary
for the operation of each fund. These services include providing
facilities for maintaining each fund's organization; supervising relations
with custodians, transfer and pricing agents, accountants, underwriters,
and other persons dealing with the funds; preparing all general shareholder
communications and conducting shareholder relations; maintaining the funds'
records and the registration of each fund's shares under federal and state
law; developing management and shareholder services for the funds; and
furnishing reports, evaluations, and analyses on a variety of subjects to
the Board of Trustees.
In addition to the management fee payable to FMR and the fees payable to
United Missouri Bank, N.A. (United Missouri), each fund pays all of its
expenses, without limitation, that are not assumed by those parties. Each
fund pays for the typesetting, printing, and mailing of proxy material to
shareholders, legal expenses, and the fees of the custodian, auditor, and
non-interested Trustees. Although each management contract provides that
the fund will pay for typesetting, printing, and mailing prospectuses,
statements of additional information, notices and reports to existing
shareholders, United Missouri has entered into a revised sub-transfer agent
agreement with FSC, pursuant to which FSC bears the cost of providing these
services to existing shareholders. Other expenses paid by each fund
include interest, taxes, brokerage commissions, each fund's proportionate
share of insurance premiums and Investment Company Institute dues, and the
costs of registering shares under federal and state securities laws. Each
fund is also liable for such nonrecurring expenses as may arise, including
costs of any litigation to which a fund may be a party and any obligation
it may have to indemnify each t rust's officers and Trustees with
respect to litigation.
FMR is the insured and high yield fund's manager pursuant to management
contracts dated February 1, 1994 , which were approved by
shareholders on January 19, 1994 . FMR is also the money
market fund's manager pursuant to a management contract dated December 30,
1991. Th is contract was approved by Fidelity New York Municipal
Trust as sole shareholder of the trust on December 30, 1991 in conjunction
with an Agreement and Plan of Conversion to convert the fund from a
series of a Massachusetts business trust to a series of a Delaware Trust.
The Agreement and Plan of Conversion was approved by public shareholders of
the fund on October 23, 1991. Besides reflecting the fund's redomiciling,
the December 30, 1991 contract is identical to the fund's prior management
contract with FMR, which was approved by shareholders of the fund on
November 28, 1988. For the services of FMR under the contracts, each fund
pays FMR a monthly management fee composed of the sum of two elements: a
group fee rate and an individual fund fee rate.
The group fee rate is based on the monthly average net assets of all of the
registered investment companies with which FMR has management contracts and
is calculated on a cumulative basis pursuant to the graduated fee
schedule shown on the left . On the right, the effective annual
fee rate schedule shows the results of cumulatively applying the annualized
rates at various asset levels . For example, the effective annual group
fee rate at $245 billion of average group net assets - their
approximate level for January 1994 - was .1609 %, which is the
weighted average of the respective fee rates for each level of group net
assets up to $245 billion.
GROUP FEE RATE SCHEDULE* EFFECTIVE ANNUAL FEE RATES

AVERAGE GROUP EFFECTIVE

GROUP ANNUALIZED NET ANNUAL

ASSETS RATE ASSETS FEE RATE

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
0 - $ 3 billion .3700% $0.5 billion .3700%

3 - 6 .3400 25 .2664

6 - 9 .3100 50 .2188

9 - 12 .2800 75 .1986

12 - 15 .2500 100 .1869

15 - 18 .2200 125 .1793

18 - 21 .2000 150 .1736

21 - 24 .1900 175 .1695

24 - 30 .1800 200 .1658

30 - 36 .1750 225 .1629

36 - 42 .1700 250 .1604

42 - 48 .1650 275 .1583

48 - 66 .1600 300 .1565

66 - 84 .1550 325 .1548

84 - 120 .1500 350 .1533

120 - 174 .1450

174 - 228 .1400

228 - 282 .1375

282 - 336 .1350

Over 336 .1325

</TABLE>

* Prior to January 1, 1992, the group fee rate was based on a schedule
with breakpoints ending at .1500% for average group assets in excess of $84
billion. The money market fund's management contract dated December 30,
1991 includes these group fee breakpoints. The group fee breakpoints shown
for average group assets between $84 billion and $228 billion were
voluntarily adopted by FMR on January 1, 1992. Additional breakpoints for
average group assets in excess of $228 billion were voluntarily added to
the group fee rate schedule by FMR on November 1, 1993, pending shareholder
approval of new management contracts reflecting the extended schedules.
The amended contracts approved by shareholders of the insured and high
yield funds on January 19, 1994 and dated February 1, 1994, reflect the
extended fee rate schedules. The shareholders of the money market fund have
not yet approved an amended contract reflecting the extended schedules. The
extended schedules provide for lower management fees as FMR's total assets
under management increase.
Each fund's individual fund fee rate is .25%. Based on the average net
assets of funds advised by FMR for January 1994, the annual management fee
rate would be calculated as follows:
Group Fee Rate Individual Fund Fee Rate Management Fee Rate

.1609% + .25% = .4109%

One-twelfth (1/12) of this annual management fee rate is then applied to
each fund's average net assets for the current month, giving a dollar
amount which is the fee for that month.
Management fees paid to FMR are indicated in the table below for the fiscal
periods shown.
MANAGEMENT FEES
February 1, 1993 to May 1, 1992 to May 1, 1991 to

January 31, 1994 January 31, 1993 April 30, 1992

Money Market Fund $ 2,339,153 $ 1,693,067 $ 2,259,930

Insured Fund 1,638,218 1,068,842 1,204,438

High Yield Fund 1,981,659 1,354,699 1,719,028

<TABLE>
<CAPTION>
<S> <C> <C> <C>
February 1, 1993 May 1, 1992 May 1, 1991

to to to

January 31, 1994 January 31, 1993 April 30, 1992

</TABLE>

Money Market Fund $ 928,704 $ 632,990 $ 821,733

Insured Fund 411,879 293,981 305,456

High Yield Fund 519,929 364,165 427,473

United Missouri has an additional sub-contract with FSC, pursuant to which
FSC performs the calculations necessary to determine each fund's net asset
value per share and dividends and maintains each fund's accounting records.
The annual fee rates for these pricing and bookkeeping services are based
on the funds' average net assets, and are presented in the table below.
$0-$500 Greater Than

Million $500 Million Minimum Per Year Maximum Per Year

Money Market Fund .0175% .0075% $20,000 $750,000

Insured and High Yield Fund .04% .02% $45,000 $750,000

Prior to November 7, 1991 (insured and high yield funds) and November 14,
1991 (money market fund), Shawmut sub-contracted with FSC for pricing and
bookkeeping services. Beginning July 1, 1991, FSC was compensated for
these services by Shawmut on the same basis as it is currently compensated
by United Missouri. Prior to July 1, 1991, the annual fee paid to FSC for
pricing and bookkeeping services was based on two schedules, one pertaining
to the funds' average net assets and one pertaining to the type and number
of transactions each fund made.
Pricing and bookkeeping fees, including reimbursement for out-of-pocket
expenses, paid to FSC for fiscal 1994, 1993, and 1992 are indicated
in the table below.
PRICING AND BOOKKEEPING FEES

<TABLE>
<CAPTION>
<S> <C> <C> <C>
February 1, 1993 May 1, 1992 May 1, 1991

to to to

January 31, 1994 January 31, 1993 April 30, 1992

</TABLE>

Money Market Fund $ 107,954 $ 84,374 $126,182

Insured Fund 174,688 119,823 138,081

High Yield Fund 208,438 150,314 188,128

The transfer agent fees and charges and pricing and bookkeeping fees
previously described are paid to FSC by United Missouri, which is entitled
to reimbursement from the funds for these expenses.
FSC has entered into an agreement with Fidelity Brokerage Services, Inc.
(FBSI), a subsidiary of FMR Corp., pursuant to which FBSI performs certain
recordkeeping, communication, and other services for money market fund
shareholders participating in the Fidelity Ultra Service Account program.
FBSI directly charges each Ultra Service Account client that chooses
the enhanced features, an administrative fee at a rate of $5.00 per month
for these services, which is in addition to the transfer agency fee
received by FSC. Administrative fees paid to FBSI by money market fund
shareholders participating in the Fidelity Ultra Service Account program
amounted to approximately $98,110 for fiscal 1994.
Each fund has a distribution agreement with FDC, a Massachusetts
corporation organized on July 18, 1960. FDC is a broker-dealer registered
under the Securities Exchange Act of 1934 and is a member of the National
Association of Securities Dealers, Inc. The distribution agreement
calls for FDC to use all reasonable efforts, consistent with its other
business, to secure purchasers for shares of each fund, which are
continuously offered at net asset value. Promotional and administrative
expenses in connection with the offer and sale of shares are paid by FMR.
16DESCRIPTION OF THE TRUSTS
TRUSTS' ORGANIZATION. Fidelity New York Municipal Trust (the Massachusetts
trust) is an open-end, management investment company organized as a
Massachusetts business trust on April 25, 1983. On January 8, 1990, the
trust's name was changed from Fidelity New York Tax-Free Fund to Fidelity
New York Municipal Trust. Currently, there are four funds of the
Massachusetts trust: Fidelity New York Tax-Free High Yield Portfolio;
Fidelity New York Tax-Free Insured Portfolio; Spartan New York Intermediate
Municipal Portfolio; and Spartan New York Municipal High Yield Portfolio.
The Massachusetts trust's Declaration of Trust permits the Trustees to
create additional funds.
Effective October 1, 1985, the investment policies of the original
Short-Term Portfolio were changed to convert it to a money market
fund. In conjunction with this, the name of the fund was changed to the
Money Market Portfolio. Also as of this date, the investment policies of
the Municipal Bond Portfolio were expanded, and in conjunction with these
changes the fund 's name was changed to to the High Yield Portfolio.
On November 30, 1988, assets of the Short-Term Portfolio were transferred
to the insured fund pursuant to an Agreement and Plan of Reorganization
(the Agreement). The Agreement provided for the transfer of substantially
all of the assets of the Short-Term Portfolio to the insured fund in
exchange solely for shares of beneficial interest of the insured fund and
distribution, pursuant to the Agreement, of the insured fund shares to the
shareholders of the Short-Term Portfolio in liquidation of the Short-Term
Portfolio as provided in the Agreement. Shares of the Short-Term Portfolio
are no longer available for purchase.
Fidelity New York Municipal Trust II (the Delaware Trust) is an open-end
management investment company organized as a Delaware business trust on
June 20, 1991. Currently, there are two funds of the Delaware Trust:
Fidelity New York Tax-Free Money Market Portfolio and Spartan New York
Municipal Money Market Portfolio. Fidelity New York Tax-Free Money Market
Portfolio entered into an agreement to acquire all of the assets of
Fidelity New York Tax-Free Money Market Portfolio, a series of Fidelity New
York Municipal Trust (a Massachusetts business trust) on December 30, 1991.
Spartan New York Municipal Money Market Portfolio entered into an
agreement to acquire all of the assets of Spartan New York Municipal Money
Market Portfolio, a series of Fidelity New York Municipal Trust (a
Massachusetts business trust) an March 22, 1994. The Delaware trust's
Trust Instrument permits the Trustees to create additional funds.
In the event that FMR ceases to be investment adviser to a trust or any of
its funds, the right of the trust or fund to use the identifying names
"Fidelity" and "Spartan" may be withdrawn. There is a remote possibility
that one fund might become liable for any misstatement in its prospectus or
statement of additional information about another fund.
The assets of each trust received for the issue or sale of shares of each
of its funds and all income, earnings, profits, and proceeds thereof,
subject only to the rights of creditors, are especially allocated to such
fund, and constitute the underlying assets of such fund. The underlying
assets of each fund are segregated on the books of account, and are to be
charged with the liabilities with respect to such fund and with a share of
the general expenses of their respective trusts. Expenses with respect to
the trusts are to be allocated in proportion to the asset value of their
respective funds, except where allocations of direct expense can otherwise
be fairly made. The officers of the trusts, subject to the general
supervision of the Boards of Trustees, have the power to determine which
expenses are allocable to a given fund, or which are general or allocable
to all of the funds of a certain trust. In the event of the dissolution or
liquidation of a trust, shareholders of each fund of that trust are
entitled to receive as a class the underlying assets of such fund available
for distribution.
SHAREHOLDER AND TRUSTEE LIABILITY - MASSACHUSETTS TRUST. The Massachusetts
trust is an entity of the type commonly known as "Massachusetts business
trust." Under Massachusetts law, shareholders of such a trust may, under
certain circumstances, be held personally liable for the obligations of the
trust. The Declaration of Trust provides that the Massachusetts trust
shall not have any claim against shareholders except for the payment of the
purchase price of shares and requires that each agreement, obligation, or
instrument entered into or executed by the Massachusetts trust or its
Trustees shall include a provision limiting the obligations created thereby
to the Massachusetts trust and its assets. The Declaration of trust
provides for indemnification out of each fund's property of any
shareholders held personally liable for the obligations of the fund. The
Declaration of Trust also provides that each fund shall, upon request,
assume the defense of any claim made against any shareholder for any act or
obligation of the fund and satisfy any judgment thereon. Thus, the risk of
a shareholder incurring financial loss on account of shareholder liability
is limited to circumstances in which the fund itself would be unable to
meet its obligations. FMR believes that, in view of the above, the risk of
personal liability to shareholders is remote.
The Declaration of Trust further provides that the Trustees, if they have
exercised reasonable care, will not be liable for any neglect or
wrongdoing, but nothing in the Declaration of Trust protects
Trustees against any liability to which they would otherwise be subject
by reason of willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties involved in the conduct of their office.
SHAREHOLDER AND TRUSTEE LIABILITY - DELAWARE TRUST. The Delaware trust is
a business trust organized under Delaware law. Delaware law provides that
shareholders shall be entitled to the same limitations of personal
liability extended to stockholders of private corporations for profit. The
courts of some states, however, may decline to apply Delaware law on this
point. The Trust Instrument contains an express disclaimer of shareholder
liability for the debts, liabilities, obligations, and expenses of the
Delaware trust and requires that a disclaimer be given in each contract
entered into or executed by the Delaware trust or its Trustees. The Trust
Instrument provides for indemnification out of each fund's property of any
shareholder or former shareholder held personally liable for the
obligations of the fund. The Trust Instrument also provides that each fund
shall, upon request, assume the defense of any claim made against any
shareholder for any act or obligation of the fund and satisfy any judgment
thereon. Thus, the risk of a shareholder incurring financial loss on
account of shareholder liability is limited to circumstances in which
Delaware law does not apply, no contractual limitation of liability was in
effect, and the fund is unable to meet its obligations. FMR believes that,
in view of the above, the risk of personal liability to shareholders is
extremely remote.
The Trust Instrument further provides that the Trustees shall not be
personally liable to any person other than the Delaware trust or its
shareholders; moreover, the Trustees shall not be liable for any conduct
whatsoever, provided that Trustees are not protected against any
liability to which they would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence, or reckless disregard of the
duties involved in the conduct of their office.
VOTING RIGHTS - BOTH TRUSTS. Each fund's capital consists of shares of
beneficial interest. As a shareholder of the insured or high yield
funds , you receive one vote for each dollar of net asset value per
share you own. The shares have no preemptive or conversion rights;
voting and dividend rights, the right of redemption, and the privilege
of exchange are described in the Prospectus. Shares are fully paid and
nonassessable, except as set forth under the respective "Shareholder
and Trustee Liability" headings above. Shareholders representing
10% or more of a trust or one of its funds may, as set forth in the
Declaration of Trust or Trust Instrument , call meetings of the
trust or fund for any purpose related to the trust or fund, as the
case may be, including, in the case of a meeting of an entire trust,
the purpose of voting on removal of one or more Trustees.
A trust or any fund may be terminated upon the sale of its assets to (or,
in the case of the Delaware Trust and its funds, merger with) another
open-end management investment company or series thereof, or upon
liquidation and distribution of its assets. Generally, such terminations
must be approved by vote of the holders of a majority of the outstanding
shares of the trust or the fund (for the Delaware trust), or by a vote of
the holders of a majority of the trust or the fund, as determined by the
current value of each shareholder's investment in the fund or trust (for
the Massachusetts trust) ; however, the Trustees of the Delaware trust
may, without prior shareholder approval, change the form of the
organization of the Delaware trust by merger, consolidation, or
incorporation. If not so terminated or reorganized, the trusts and
their funds will continue indefinitely.
Under the Trust Instrument, the Trustees may, without shareholder vote,
cause the Delaware trust to merge or consolidate into one or more trusts,
partnerships, or corporations, so long as the surviving entity is an
open-end management investment company that will succeed to or assume the
Delaware trust registration statement, or cause the Delaware trust to be
incorporated under Delaware law. The Massachusetts trust may also invest
all of its assets in another investment company.
CUSTODIAN. United Missouri Bank, N.A., 1010 Grand Avenue, Kansas City,
Missouri is custodian of the assets of the funds. The custodian is
responsible for the safekeeping of the funds' assets and the appointment of
subcustodian banks and clearing agencies. The custodian takes no part in
determining the investment policies of the funds or in deciding which
securities are purchased or sold by the funds. The funds may, however,
invest in obligations of the custodian and may purchase securities from or
sell securities to the custodian.
FMR, its officers and directors, its affiliated companies, and the trusts'
Trustees may from time to time have transactions with various banks,
including banks serving as custodians for certain of the funds advised by
FMR. Transactions that have occurred to date include mortgages and
personal and general business loans. In the judgment of FMR, the terms and
conditions of those transactions were not influenced by existing or
potential custodial or other fund relationships.
AUDITOR. Price Waterhouse, 160 Federal Street, Boston, Massachusetts,
serves as each trust's independent accountant. The auditor examines
financial statements for the funds and provides other audit, tax, and
related services.
17FINANCIAL STATEMENTS
The funds' Annual Report for the fiscal year ended January 31, 1994 is a
separate report supplied with this Statement of Additional Information and
is incorporated herein by reference.
18APPENDIX
DOLLAR-WEIGHTED AVERAGE MATURITY is derived by multiplying the value of
each investment by the number of days remaining to its maturity, adding
these calculations, and then dividing the total by the value of the fund's
portfolio. An obligation's maturity is typically determined on a stated
final maturity basis, although there are some exceptions to this rule.
For example, if it is probable that the issuer of an instrument will take
advantage of a maturity-shortening device, such as a call, refunding, or
redemption provision, the date on which the instrument will probably be
called, refunded, or redeemed may be considered to be its maturity date.
When a municipal bond issuer has committed to call an issue of bonds and
has established an independent escrow account that is sufficient to, and is
pledged to, refund that issue, the number of days to maturity for the
prerefunded bond is considered to be the number of days to the announced
call date of the bonds.
The descriptions that follow are examples of eligible ratings for the high
yield and insured funds. A fund may, however, consider ratings for other
types of investments and the ratings assigned by other ratings
organizations when determining the eligibility of a particular investment.
DESCRIPTION OF MOODY'S INVESTORS SERVICE, INC.'S RATINGS OF STATE AND
MUNICIPAL NOTES:
Moody's ratings for state and municipal and other short-term obligations
will be designated Moody's Investment Grade (MIG, or VMIG for variable rate
obligations). This distinction is in recognition of the difference between
short-term credit risk and long-term credit risk. Factors affecting the
liquidity of the borrower and short-term cyclical elements are critical in
short-term ratings, while other factors of major importance in bond risk,
long-term secular trends for example, may be less important over the short
run. Symbols used will be as follows:
MIG-1/VMIG-1 - This designation denotes best quality. There is present
strong protection by established cash flows, superior liquidity support or
demonstrated broad-based access to the market for refinancing.
MIG-2/VMIG-2 - This designation denotes high quality. Margins of
protection are ample although not so large as in the preceding group.
MIG-3/VMIG-3 - This designation denotes favorable quality, with all
security elements accounted for but there is lacking the undeniable
strength of the preceding grades. Liquidity and cash flow protection may
be narrow and market access for refinancing is likely to be less well
established.
MIG-4/VMIG-4 - This designation denotes adequate quality protection
commonly regarded as required of an investment security is present and,
although not distinctly or predominantly speculative, there is specific
risk.
DESCRIPTION OF STANDARD & POOR'S CORPORATION'S RATINGS OF STATE AND
MUNICIPAL NOTES:
SP-1 - Very strong or strong capacity to pay principal and interest. Those
issues determined to possess overwhelming safety characteristics will be
given a plus (+) designation.
SP-2 - Satisfactory capacity to pay principal and interest.
SP-3 - Speculative capacity to pay principal and interest.
DESCRIPTION OF MOODY'S INVESTORS SERVICE, INC.'S MUNICIPAL BOND RATINGS:
AAA - Bonds rated Aaa are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as "gilt
edge." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective
elements are likely to change, such changes as can be visualized are most
unlikely to impair the fundamentally strong position of such issues.
AA - Bonds rated Aa are judged to be of high quality by all standards.
Together with Aaa group they comprise what are generally known as
high-grade bonds. They are rated lower than the best bonds because margins
of protection may not be as large as in Aaa securities or fluctuation of
protective elements may be of greater amplitude or there may be other
elements present which make the long-term risks appear somewhat larger than
in Aaa securities.
A - Bonds rated A possess many favorable investment attributes and are to
be considered as upper-medium-grade obligations. Factors giving security
to principal and interest are considered adequate but elements may be
present which suggest a susceptibility to impairment sometime in the
future.
BAA - Bonds rated Baa are considered as medium-grade obligations, i.e.,
they are neither highly protected nor poorly secured. Interest payments
and principal security appear adequate for the present but certain
protective elements may be lacking or may be characteristically unreliable
over any great length of time. Such bonds lack outstanding investment
characteristics and in fact have speculative characteristics as well.
BA - Bonds rated Ba are judged to have speculative elements. Their future
cannot be considered as well assured. Often the protection of interest and
principal payments may be very moderate and thereby not well safeguarded
during both good and bad times in the future. Uncertainty of position
characterizes bonds in this class.
B - Bonds rated B generally lack characteristics of a desirable investment.
Assurance of interest and principal payments of or maintenance of other
terms of the contract over any long period may be small.
CAA - Bonds rated Caa are of poor standing. Such issues may be in default
or there may be present elements of danger with respect to principle and
interest.
CA - Bonds rated Ca represent obligations which are speculative in a high
degree. Such issues are often in default or have other marked
short-comings.
C - Bonds rated C are the lowest-rated class of bonds and issues so rated
can be regarded as having extremely poor prospects of ever attaining any
real investment standing.
Those bonds in the Aa, A, Baa, Ba, and B groups which Moody's believes
possess the strongest investment attributes are designated by the symbols
Aa1, A1, Baa1, Ba1, and B1.
DESCRIPTION OF STANDARD & POOR'S CORPORATION'S MUNICIPAL BOND RATINGS:
AAA - Debt rated AAA has the highest rating assigned by Standard &
Poor's to a debt obligation. Capacity to pay interest and repay principal
is extremely strong.
AA - Debt rated AA has a very strong capacity to pay interest and repay
principal and differs from the highest-rated debt issues only in small
degree.
A - Debt rated A has a strong capacity to pay interest and repay principal,
although it is somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions.
BBB - Debt rated BBB is regarded as having an adequate capacity to pay
interest and repay principal. Whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for debt in this category than in higher-rated
categories.
BB - Debt rated BB has less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties or
exposure to adverse business, financial, or economic conditions which could
lead to inadequate capacity to meet timely interest and principal payments.
B - Debt rated B has a greater vulnerability to default but currently has
the capacity to meet interest payments and principal repayments. Adverse
business, financial, or economic conditions will likely impair capacity or
willingness to pay interest and repay principal. The B rating category is
also used for debt subordinated to senior debt that is assigned an actual
or implied BB or BB- rating.
CCC - Debt rated CCC has a currently identifiable vulnerability to
default, and is dependent upon favorable business, financial, and economic
conditions to meet timely payment of interest and repayment of principal.
In the event of adverse business, financial, or economic conditions, it is
not likely to have the capacity to pay interest and repay principal.
CC - Debt rated CC is typically applied to debt subordinated to senior debt
which is assigned an actual or implied CCC debt rating.
C - The rating C is typically applied to debt subordinated to senior debt
debt which is assigned on actual or implied CCC-debt rating. The C rating
may be used to cover a situation where a bankruptcy petition has been filed
but debt service payments are continued.
CI - The rating CI is reserved for income bonds on which no interest is
being paid.
D - Debt rated D is in payment default. The D rating category is used when
interest payments or principal payments are not made on the date due even
if the applicable grace period has not expired, unless S&P believes
that such payments will be made during such grace period. The D rating
will also be used upon the filing of a bankruptcy petition if debt service
payments are jeopardized.
The ratings from AA to CCC may be modified by the addition of a plus or
minus to show relative standing within the major rating categories.
SPARTAN NEW YORK MUNICIPAL FUNDS:
SPARTAN NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO

CROSS REFERENCE SHEET
FORM N-1A

ITEM NUMBER PROSPECTUS SECTION

<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 .............................. Cover Page

2 a .............................. Expenses

b, c .............................. Contents; The Funds at a Glance; Who May Want
to Invest

3 a .............................. Financial Highlights

b .............................. *

c,d .............................. Performance

4 a i............................. Charter

ii........................... The Funds at a Glance; Investment Principles and
Risks

b .............................. *

c .............................. Who May Want to Invest; Investment Principles
and Risks

5 a .............................. Charter

b i............................. Doing Business with Fidelity; Charter

ii........................... Charter; Breakdown of Expenses

iii.......................... Expenses; Breakdown of Expenses

c, d .............................. Charter; Breakdown of Expenses; Cover Page;
FMR and Its Affiliates

e .............................. FMR and its Affiliates

f .............................. Expenses

g .............................. *

5 A .............................. Performance

6 a i............................. Charter

ii........................... How to Buy Shares; How to Sell Shares;
Transaction Details; Exchange Restrictions

iii.......................... *

b ............................. *

c .............................. Exchange Restrictions

d .............................. *

e .............................. Doing Business with Fidelity; How to Buy Shares;
How to Sell Shares; Investor Services

f, g .............................. Dividends, Capital Gains, and Taxes

7 a .............................. Charter; Cover Page

b .............................. How to Buy Shares; Transaction Details

c .............................. *

d .............................. How to Buy Shares

e .............................. *

f .............................. Breakdown of Expenses

8 .............................. How to Sell Shares; Investor Services; Transaction
Details; Exchange Restrictions

9 .............................. *

</TABLE>

* Not Applicable

CROSS REFERENCE SHEET
(CONTINUED)
FORM N-1A

ITEM NUMBER STATEMENT OF ADDITIONAL INFORMATION SECTION

<TABLE>
<CAPTION>
<S> <C> <C> <C>
10, 11 ............................ Cover Page

12 ............................ *

13 a - c ............................ Investment Policies and Limitations

d ............................ *

14 a - c ............................ Trustees and Officers

15 a, b ............................ *

c ............................ Trustees and Officers

16 a i ............................ FMR

ii ............................ Trustees and Officers

iii ............................ Management Contracts

b ............................ Management Contracts

c, d ............................ Contracts with Companies Affiliated with FMR

e ............................ *

f ............................ Distribution and Service Plans

g ............................ *

h ............................ Description of the Trusts

i ............................ Contracts with Companies Affiliated with FMR

17 a ............................ Portfolio Transactions

b ............................ *

c ............................ Portfolio Transactions

d, e ............................ *

18 a ............................ Description of the Trusts

b ............................ *

19 a ............................ Additional Purchase and Redemption Information

b ............................ Additional Purchase and Redemption Information;
Valuation of Portfolio Securities

c ............................ *

20 Distributions and Taxes

21 a, b ............................ Contracts with Companies Affiliated with FMR

c ............................ *

22 ............................ Performance

23 ............................ Financial Statements

</TABLE>

* Not Applicable
Please read this prospectus before investing, and keep it on file for
future reference. It contains important information, including how each
fund invests and the services available to shareholders.
A Statement of Additional Information dated March 22, 1994 has been filed
with the Securities and Exchange Commission, and is incorporated herein by
reference (is legally considered a part of this prospectus). The Statement
of Additional Information is available free upon request by calling
Fidelity at 1-800-544-8888.
Investments in the money market fund are neither insured nor guaranteed by
the U.S. government, and there can be no assurance that the fund will
maintain a stable $1.00 share price.
Mutual fund shares are not deposits or obligations of, or endorsed or
guaranteed by, any bank, savings association, insured depositary
institution, or government agency, nor are they federally insured or
otherwise protected by the FDIC, the Federal Reserve Board, or any other
agency. Investments in the funds involve investment risk, including
possible loss of principal. The value of the investment and its return will
fluctuate and are not guaranteed. When sold, the value of the investment
may be higher or lower than the amount originally invested.
Each of these funds seeks a high level of current income free from federal
income tax and New York State and City income taxes. The funds have
different strategies, however, and carry varying degrees of risk.
SPARTAN(Registered trademark)
NEW YORK
MUNICIPAL
FUNDS
SPARTAN NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO
PROSPECTUS
MARCH 22, 1994(FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET, BOSTON, MA
02109
LIKE ALL MUTUAL FUNDS,
THESE SECURITIES HAVE
NOT BEEN APPROVED OR
DISAPPROVED BY THE
SECURITIES AND
EXCHANGE COMMISSION
OR ANY STATE
SECURITIES
COMMISSION, NOR HAS
THE SECURITIES AND
EXCHANGE COMMISSION
OR ANY STATE
SECURITIES
COMMISSION PASSED
UPON THE ACCURACY OR
ADEQUACY OF THIS
PROSPECTUS. ANY
REPRESENTATION TO THE
CONTRARY IS A CRIMINAL
OFFENSE.
NFR-pro-394
CONTENTS

KEY FACTS THE FUNDS AT A GLANCE

WHO MAY WANT TO INVEST

EXPENSES Each fund's yearly
operating expenses.

FINANCIAL HIGHLIGHTS A summary
of each fund's financial data.

PERFORMANCE How each fund has
done over time.

THE FUNDS IN DETAIL CHARTER How each fund is
organized.

INVESTMENT PRINCIPLES AND RISKS
Each fund's overall approach to
investing.

BREAKDOWN OF EXPENSES How
operating costs are calculated and
what they include.

YOUR ACCOUNT DOING BUSINESS WITH FIDELITY

TYPES OF ACCOUNTS Different
ways to set up your account.

HOW TO BUY SHARES Opening an
account and making additional
investments.

HOW TO SELL SHARES Taking money
out and closing your account.

INVESTOR SERVICES Services to
help you manage your account.

SHAREHOLDER AND DIVIDENDS, CAPITAL GAINS,
ACCOUNT POLICIES AND TAXES

TRANSACTION DETAILS Share price
calculations and the timing of
purchases and redemptions.

EXCHANGE RESTRICTIONS

KEY FACTS

EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you pay when you buy or sell
shares of a fund. See page 23 for more information.
Maximum sales charge on purchases and
reinvested dividends None
Deferred sales charge on redemptions None
Redemption fee (on shares held less than 180 days)
for Spartan NY Money Market and
Spartan NY Intermediate None
for New York Tax-Free High Yield .50%
Exchange and wire transaction fees $5.00
Checkwriting fee, per check written
(available for Spartan NY Money
Market and Spartan NY Intermediate) $2.00
Account closeout fee $5.00
THESE FEES ARE WAIVED (except for the redemption fee) if your account
balance at the time of the transaction is $50,000 or more.
ANNUAL FUND OPERATING EXPENSES are paid out of each fund's assets. Each
fund pays a management fee to FMR. Expenses are factored into each fund's
share price or dividends and are not charged directly to shareholder
accounts (see page 17).
The following are projections based on historical expenses, and are
calculated as a percentage of average net assets.
NEW YORK MONEY MARKET
Management fee .50 %
12b-1 fee None
Other expenses .00 %
Total fund operating expenses .50 %
NEW YORK INSURED
Management fee (after reimbursement) .00 %
12b-1 fee None
Other expenses .00 %
Total fund operating expenses .00 %
NEW YORK HIGH YIELD
Management fee .55 %
12b-1 fee None
Other expenses .00 %
Total fund operating expenses .55 %
EXAMPLES: Let's say, hypothetically, that each fund's annual return is 5%
and that its operating expenses are exactly as just described. For every
$1,000 you invested, here's how much you would pay in total expenses after
the number of years indicated, first assuming that you leave your account
open, and then assuming that you close your account at the end of the
period:
NEW YORK MONEY MARKET
Account open Account closed
After 1 year $ 5 $ 10
After 3 years $ 16 $ 21
After 5 years $ 28 $ 33
After 10 years $ 63 $ 68
NEW YORK INSURED
Account open Account closed
After 1 year $ 0 $ 5
After 3 years $ 0 $ 5
After 5 years $ 0 $ 5
After 10 years $ 0 $ 5
NEW YORK HIGH YIELD
Account open Account closed
After 1 year $ 6 $ 11
After 3 years $ 18 $ 23
After 5 years $ 31 $ 36
After 10 years $ 69 $ 74
These examples illustrate the effect of expenses, but are not meant to
suggest actual or expected costs or returns, all of which may vary.
FMR has voluntarily agreed to temporarily limit Spartan New York
Intermediate Municipal's operating expenses to . 00 % of
its average net assets. If this agreement were not in effect, the
management fee, other expenses, and total operating expenses would be
. 55 %, .00% , and . 55 %, respectively. Expenses eligible
for reimbursement do not include interest, taxes, brokerage commissions, or
extraordinary expenses.

UNDERSTANDING
EXPENSES
Operating a mutual fund
involves a variety of
expenses for portfolio
management, shareholder
statements, tax reporting, and
other services. These costs
are paid from the fund's
assets; their effect is already
factored into any quoted
share price or return.
(checkmark)
FINANCIAL HIGHLIGHTS
The tables that follow have been audited by Price Waterhouse ,
independent accountants. Their unqualified report is included in the
funds' Annual Report. The Annual Report is incorporated by
reference into (is legally a part of) the Statement of Additional
Information.
SPARTAN NEW YORK MUNICIPAL MONEY MARKET

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
44.Selected Per-Share Data and
Ratios

45.Periods ended January 31 1990C 1991D 1992D 1993E 1994

46.Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period

47.Income from Investment .013 .052 .037 .018 .020
Operations
Net interest income

48. Dividends from net interest (.013) (.052) (.037) (.018) (.020)
income

49.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000

50.Total returnB 1.31 5.37 3.78 1.85 1.99
% % % % %

51.Net assets, end of period (000 $ 181,864 $ 466,32 $ 474,99 $ 453,812 $ 462,12
omitted) 7 0 4

52.Ratio of expenses to average net -- .10 .37 .50 .50
assetsF % % %A %

53.Ratio of expenses to average net .50 .50 .50 .50 .50
assets %A % % %A %
before expense reductionsF

54.Ratio of net interest income to 5.85 5.15 3.71 2.43 1.97
average net assets %A % % %A %

</TABLE>

56.Period ended January 31 1994C

57.Net asset value, beginning of period $ 10.000

58.Income from Investment Operations .033
Net interest income

59. Net realized and unrealized gain (loss) on investments .090

60. Total from investment operations .123

61.Less Distributions (.033)
From net interest income

62.Net asset value, end of period 10.09

63.Total returnB 1.23
%

64.Net assets, end of period (000 omitted) $ 9,273

65.Ratio of expenses to average net assetsD --

66.Ratio of expenses to average net assets .55
before expense reductionsD %A

67.Ratio of net interest income to average net assets 3.85
%A

68.Portfolio turnover rate --

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
69.Selected Per-Share Data and
Ratios

70.Periods ended January 31 1990C 1991D 1992D 1993E 1994

71.Net asset value, beginning of $ 10.000 $ 9.690 $ 10.090 $ 10.480 $ 10.890
period

72.Income from Investment .180 .717 .675 .491 .622
Operations
Net interest income

73. Net realized and unrealized gain (.318) .394 .408 .518 .768
(loss) on investments

74. Total from investment operations (.138) 1.111 1.083 1.009 1.390

75.Less Distributions (.180) (.717) (.675) (.491) (.622)
From net interest income

76. From net realized gain on -- -- (.020) (.110) (.280)
investments

77. In excess of net realized gain -- -- -- -- --

78. Total distributions (.180) (.717) (.695) (.601) (.902)

79. Redemption fees added to paid .008 .006 .002 .002 .002
in capital

80.Net asset value, end of period $ 9.690 $ 10.090 $ 10.480 $ 10.890 $ 11.380

81.Total returnB (1.38) 11.88 11.03 9.83 13.12
% % % % %

82.Net assets, end of period (000 $ 57,083 $ 163,47 $ 291,91 $ 366,840 $ 446,03
omitted) 2 3 0

83.Ratio of expenses to average net -- .19 .38 .48 .55
assetsF % % %A %

84.Ratio of expenses to average net .55 .55 .55 .55 .55
assets %A % % %A %
before expense reductionsF

85.Ratio of net interest income to 7.75 7.21 6.51 6.03 5.49
average net assets %A % % %A %

86.Portfolio turnover rate 24 40 21 35 50
%A % % %A %

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL RETURNS WOULD HAVE BEEN LOWER
HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C FROM FEBRUARY 3, 1990 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1990
D YEARS ENDED APRIL 30
E MAY 1, 1992 TO JANUARY 31, 1993
F DURING THE PERIODS SHOWN, FMR VOLUNTARILY REIMBURSED THE FUND FOR CERTAIN
EXPENSES.
PERFORMANCE
Mutual fund performance can be measured as TOTAL RETURN or YIELD. The total
returns and yields that follow are based on historical fund results and
do not reflect the effect of any transaction fees you may have paid. The
figures would be lower if fees were taken into account.
Each fund's fiscal year runs from February 1 through January 31. The tables
below show each fund's performance over past fiscal years compared to a
measure of inflation. The charts on page help you compare the
yields of these funds to those of their competitors.
AVERAGE ANNUAL TOTAL RETURNS
Fiscal periods ended Past 1 Life of
January 31, 1994 year fund
Spartan NY Money Market 1.99 % 3.58 %A
Spartan NY Intermediate .n/a .n/a
Spartan NY High Yield 13.12% 11.08 % A
CUMULATIVE TOTAL RETURNS
Fiscal periods ended Past 1 Life of
January 31, 1994 year fund
Spartan NY Money Market 1.99 % 15.09 %A
Spartan NY Intermediate .n/a 1.23 %B
Spartan NY High Yield 13.12% 52.20 % A
A FROM FEBRUARY 3, 1990
B FROM DECEMBER 29, 1993
EXPLANATION OF TERMS
TOTAL RETURN is the change in value of an investment in a fund over a given
period, assuming reinvestment of any dividends and capital gains. A
CUMULATIVE TOTAL RETURN reflects actual performance over a stated period of
time. An AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate of return that,
if achieved annually, would have produced the same cumulative total return
if performance had been constant over the entire period. Average annual
total returns smooth out variations in performance; they are not the same
as actual year-by-year results. Average annual total returns covering
periods of less than one year assume that performance will remain constant
for the rest of the year.
YIELD refers to the income generated by an investment in a fund over a
given period of time, expressed as an annual percentage rate. When a money
market fund yield assumes that income earned is reinvested, it is called an
EFFECTIVE YIELD. A TAX-EQUIVALENT YIELD shows what an investor would have
to earn before taxes to equal a tax-free yield. Yields for the bond funds
are calculated according to a standard that is required for all stock and
bond funds. Because this differs from other accounting methods, the quoted
yield may not equal the income actually paid to shareholders.
THE CONSUMER PRICE INDEX is a widely recognized measure of inflation
calculated by the U.S. government.
THE COMPETITIVE FUNDS AVERAGES for New York Tax-Free Money Market are
calculated based on the IBC/Donoghue's MONEY FUND
AVERAGES(trademark) /New York Tax-Free Funds category, which
currently reflects the performance of over 144 mutual funds with similar
objectives. These averages are published in the MONEY FUND
REPORT(Registered trademark) by IBC USA (Publications), Inc. The
competitive funds averages for the bond funds are published by Lipper
Analytical Services, Inc. New York Insured Municipal and Spartan
NY Municipal High Yield compare their performance to the Lipper New
York Insured Municipal Debt Funds and the Lipper New York Municipal Debt
Funds Average , respectively, which currently reflect the performance
of over 7 and 65 mutual funds with similar objectives, respectively. All of
these averages assume reinvestment of distributions.
The funds' recent strategies, performance, and holdings are detailed twice
a year in financial reports, which are sent to all shareholders. For
current performance or a free annual report, call 1-800-544-8888.
TOTAL RETURNS AND YIELDS ARE BASED ON PAST RESULTS AND ARE NOT AN
INDICATION OF FUTURE PERFORMANCE.
SPARTAN NEW YORK MUNICIPAL MONEY MARKET
7-day yields
Percentage (%)
Row: 1, Col: 1, Value: 2.93
Row: 1, Col: 2, Value: 2.69
Row: 2, Col: 1, Value: 2.97
Row: 2, Col: 2, Value: 2.62
Row: 3, Col: 1, Value: 3.09
Row: 3, Col: 2, Value: 2.97
Row: 4, Col: 1, Value: 3.19
Row: 4, Col: 2, Value: 3.07
Row: 5, Col: 1, Value: 3.16
Row: 5, Col: 2, Value: 3.0
Row: 6, Col: 1, Value: 2.39
Row: 6, Col: 2, Value: 2.46
Row: 7, Col: 1, Value: 2.2
Row: 7, Col: 2, Value: 2.14
Row: 8, Col: 1, Value: 2.31
Row: 8, Col: 2, Value: 2.5
Row: 9, Col: 1, Value: 2.76
Row: 9, Col: 2, Value: 2.67
Row: 10, Col: 1, Value: 2.31
Row: 10, Col: 2, Value: 2.13
Row: 11, Col: 1, Value: 2.33
Row: 11, Col: 2, Value: 2.16
Row: 12, Col: 1, Value: 2.68
Row: 12, Col: 2, Value: 2.69
Row: 13, Col: 1, Value: 1.9
Row: 13, Col: 2, Value: 1.81
Row: 14, Col: 1, Value: 1.97
Row: 14, Col: 2, Value: 1.87
Row: 15, Col: 1, Value: 1.91
Row: 15, Col: 2, Value: 1.96
Row: 16, Col: 1, Value: 2.02
Row: 16, Col: 2, Value: 1.98
Row: 17, Col: 1, Value: 2.2
Row: 17, Col: 2, Value: 2.13
Row: 18, Col: 1, Value: 1.87
Row: 18, Col: 2, Value: 1.79
Row: 19, Col: 1, Value: 1.92
Row: 19, Col: 2, Value: 1.86
Row: 20, Col: 1, Value: 2.04
Row: 20, Col: 2, Value: 1.97
Row: 21, Col: 1, Value: 2.26
Row: 21, Col: 2, Value: 2.16
Row: 22, Col: 1, Value: 2.1
Row: 22, Col: 2, Value: 1.95
Row: 23, Col: 1, Value: 2.04
Row: 23, Col: 2, Value: 1.91
Row: 24, Col: 1, Value: 2.24
Row: 24, Col: 2, Value: 2.13
Row: 25, Col: 1, Value: 1.82
Row: 25, Col: 2, Value: 1.71
Spartan New
York
Municipal
Money Market
Competitive
funds average
1992
1993
1994
SPARTAN NEW YORK MUNICIPAL HIGH YIELD

30-day yields
Percentage (%)
Row: 1, Col: 1, Value: 6.21
Row: 1, Col: 2, Value: 5.81
Row: 2, Col: 1, Value: 6.33
Row: 2, Col: 2, Value: 5.77
Row: 3, Col: 1, Value: 6.46
Row: 3, Col: 2, Value: 5.87
Row: 4, Col: 1, Value: 6.34
Row: 4, Col: 2, Value: 5.88
Row: 5, Col: 1, Value: 6.149999999999999
Row: 5, Col: 2, Value: 5.8
Row: 6, Col: 1, Value: 5.87
Row: 6, Col: 2, Value: 5.609999999999999
Row: 7, Col: 1, Value: 5.430000000000001
Row: 7, Col: 2, Value: 5.35
Row: 8, Col: 1, Value: 5.52
Row: 8, Col: 2, Value: 5.29
Row: 9, Col: 1, Value: 5.659999999999999
Row: 9, Col: 2, Value: 5.359999999999999
Row: 10, Col: 1, Value: 6.01
Row: 10, Col: 2, Value: 5.49
Row: 11, Col: 1, Value: 5.91
Row: 11, Col: 2, Value: 5.42
Row: 12, Col: 1, Value: 5.8
Row: 12, Col: 2, Value: 5.359999999999999
Row: 13, Col: 1, Value: 5.609999999999999
Row: 13, Col: 2, Value: 5.34
Row: 14, Col: 1, Value: 5.1
Row: 14, Col: 2, Value: 5.03
Row: 15, Col: 1, Value: 4.87
Row: 15, Col: 2, Value: 4.85
Row: 16, Col: 1, Value: 5.159999999999999
Row: 16, Col: 2, Value: 4.859999999999999
Row: 17, Col: 1, Value: 5.14
Row: 17, Col: 2, Value: 4.83
Row: 18, Col: 1, Value: 5.05
Row: 18, Col: 2, Value: 4.76
Row: 19, Col: 1, Value: 4.99
Row: 19, Col: 2, Value: 4.71
Row: 20, Col: 1, Value: 4.89
Row: 20, Col: 2, Value: 4.619999999999999
Row: 21, Col: 1, Value: 4.75
Row: 21, Col: 2, Value: 4.49
Row: 22, Col: 1, Value: 4.79
Row: 22, Col: 2, Value: 4.42
Row: 23, Col: 1, Value: 5.1
Row: 23, Col: 2, Value: 4.59
Row: 24, Col: 1, Value: 4.9
Row: 24, Col: 2, Value: 4.51
Row: 25, Col: 1, Value: 4.930000000000001
Row: 25, Col: 2, Value: 4.42
Spartan New
York Municipal
High Yield
Competitive
funds average

1993
1992
1994
THE TOP CHART SHOWS THE 7-DAY EFFECTIVE YIELDS FOR THE FUND AND ITS
COMPETITIVE FUNDS AVERAGE AS OF THE LAST TUESDAY OF EACH MONTH FROM
JANUARY 199 2 THROUGH JANUARY 1994. THE BOTTOM CHART SHOW S THE
30-DAY
ANNUALIZED NET YIELDS FOR THE FUND AND ITS COMPETITIVE FUNDS AVERAGE
AS OF
THE LAST DAY OF EACH MONTH DURING THE SAME PERIOD. YIELDS FOR THE
FUNDS
WOULD HAVE BEEN LOWER IF FIDELITY HAD NOT REIMBURSED CERTAIN FUND
EXPENSES. SPARTAN NEW YORK INTERMEDIATE IS NOT INCLUDED IN THE CHARTS

BECAUSE IT DOES NOT HAVE ENOUGH PERFORMANCE HISTORY.

THE FUNDS IN DETAIL

CHARTER
EACH FUND IS A MUTUAL FUND: an investment that pools shareholders' money
and invests it toward a specified goal. In technical terms, New York
Tax-Free Money Market is currently a non-diversified fund of Fidelity New
York Municipal Trust II, and New York Tax-Free Insured and New York
Tax-Free High Yield are currently non-diversified funds of Fidelity New
York Municipal Trust. Both trusts are open-end management investment
companies. Fidelity New York Municipal Trust II was organized as a Delaware
business trust on June 20, 1991 . Fidelity New York Municipal Trust
was organized as a Massachusetts business trust on April 25, 1983. There is
a remote possibility that one fund might become liable for a misstatement
in the prospectus about another fund.
EACH FUND IS GOVERNED BY A BOARD OF TRUSTEES, which is responsible for
protecting the interests of shareholders. The trustees are experienced
executives who meet throughout the year to oversee the funds' activities,
review contractual arrangements with companies that provide services to the
funds, and review performance. The majority of trustees are not otherwise
affiliated with Fidelity.
THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These
meetings may be called to elect or remove trustees, change fundamental
policies, approve a management contract, or for other purposes.
Shareholders not attending these meetings are encouraged to vote by proxy.
Fidelity will mail proxy materials in advance, including a voting card and
information about the proposals to be voted on. For the money market fund,
you are entitled to one vote for each share you own. For the bond funds,
the number of votes you are entitled to is based upon the dollar value of
your investment.
FMR AND ITS AFFILIATES
FIDELITY FACTS
Fidelity offers the broadest
selection of mutual funds
in the world.
(bullet) Number of Fidelity mutual
funds: over 200
(bullet) Assets in Fidelity mutual
funds: over $ 225 billion
(bullet) Number of shareholder
accounts: over 15 million
(bullet) Number of investment
analysts and portfolio
managers: over 200
(checkmark)
The funds are managed by FMR, which chooses their investments and handles
their business affairs. FTX has primary responsibility for providing
investment management services for New York Tax-Free Money Market.
David Murphy is manager of Spartan New York Intermediate Municipal, which
he has managed since December 1993 . Mr. Murphy also manages Limited
Term Municipals, Spartan California Intermediate Municipal, Spartan
Intermediate Municipal, Spartan New Jersey
Municipal High Yield and Spartan Short-Intermediate Municipal. Before
joining Fidelity in 1989, he managed municipal bond funds at Scudder,
Stevens & Clark.
Norman Lind is manager of Spartan New York Municipal High Yield and
Spartan Municipal Income, which he has managed since October 1993 and June
1990, respectively. Mr. Lind also manages New York Tax-Free Insured and
New York Tax-Free High Yield. Previously, he served as a municipal research
analyst. Mr. Lind joined Fidelity in 1986.
FDC distributes and markets Fidelity's funds and services. Fidelity Service
Co. (FSC) performs transfer agent servicing functions for the funds.
FMR Corp. is the parent company of these organizations. Through ownership
of voting common stock, Edward C. Johnson 3d (President and a trustee of
the trusts), Johnson family members, and various trusts for the benefit of
the Johnson family form a controlling group with respect to FMR Corp.
United Missouri Bank, N.A., is each fund's transfer agent, although it
employs FSC to perform these functions for the funds. It is located at 1010
Grand Avenue, Kansas City, Missouri.
To carry out the funds' transactions, FMR may use its broker-dealer
affiliates and other firms that sell fund shares, provided that a fund
receives services and commission rates comparable to those of other
broker-dealers.
INVESTMENT PRINCIPLES AND RISKS
SPARTAN NEW YORK MUNICIPAL MONEY MARKET seeks high current income that is
free from federal income tax and New York State and City income taxes while
maintaining a stable $1.00 share price by investing in high-quality,
short - term municipal securities of all types. As a result, when you
sell your shares, they should be worth the same amount as when you bought
them. Of course, there is no guarantee that the fund will maintain a stable
$1.00 share price. FMR normally invests at least 65% of the fund's total
assets in s tate tax-free securities, and normally invests so that at
least 80% of the fund's income distributions are free from federal income
tax.
The fund follows industry-standard guidelines on the quality and maturity
of its investments, which are designed to help maintain a stable $1.00
share price. The fund will purchase only high-quality securities that FMR
believes present minimal credit risks and will observe maturity
restrictions on securities it buys. It is possible that a major change in
interest rates or a default on the fund's investments could cause its share
price (and the value of your investment) to change.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL seeks high current income that is
free from federal income tax and New York State and City income taxes by
investing primarily in high-quality and upper-medium-grade-quality
municipal securities, although it can also invest in some
lower-quality securities. The fund normally maintains a dollar-weighted
average maturity of three to 10 years. FMR normally invests at least 65%
of the fund's total assets in s tate tax-free securities, and
normally invests at least 80% of the fund's assets in municipal securities
whose interest is free from federal income tax.
NEW YORK TAX-FREE HIGH YIELD seeks high current income that is free from
federal income tax and New York State and City income taxes by investing
primarily in municipal securities judged by FMR to be of investment-grade
quality, although it can also invest in some lower-quality securities. The
fund normally invests in long-term bonds, generally maintaining a
dollar-weighted average maturity of at least 15 years, although it
may invest in obligations of any maturity. FMR normally invests so that at
least 80% of the fund's income distributions are free from federal and New
York State and City income taxes.
EACH FUND'S yield and each bond fund's share price change daily based on
interest rate changes and on the quality and maturity of its investments.
In general, bond prices rise when interest rates fall, and vice versa. This
effect is usually more pronounced for longer-term securities. Lower-quality
securities offer higher yields, but also carry more risk.
Each fund's performance is closely tied to the economic and political
conditions within the state of New York. Recently, both the city and state
of New York have experienced significant financial difficulty, and the
s tate's credit standing is one of the lowest in the country.
If you are subject to the federal alternative minimum tax, you should note
that each fund may invest all of its assets in municipal securities issued
to finance private activities. The interest from these investments is a
tax-preference item for purposes of the tax.
FMR normally invests each fund's assets according to its investment
strategy. The funds do not expect to invest in federally taxable
obligations, and the bond funds also do not expect to invest in state
taxable obligations. When FMR considers it appropriate for defensive
purposes , however, it temporarily may invest substantially in
short-term instruments, may hold a substantial amount of uninvested
cash, or may invest more than normally permitted in taxable
obligations.
SECURITIES AND INVESTMENT PRACTICES
The following pages contain more detailed information about types of
instruments in which a fund may invest, and strategies FMR may
employ in pursuit of a fund ' s investment objective. A summary
of risks and restrictions associated with these instrument types and
investment practices is included as well. Policies and limitations are
considered at the time of purchase; the sale of instruments is not required
in the event of a subsequent change in circumstances.
FMR may not buy all of these instruments or use all of these techniques to
the full extent permitted unless it believes that doing so will help the
funds achieve their goals. As a shareholder, you will receive financial
reports every six months detailing fund holdings and describing recent
investment activities.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers to
borrow money from investors. The issuer pays the investor a fixed or
variable rate of interest, and must repay the amount borrowed at maturity.
Some debt securities, such as zero coupon bonds, do not pay current
interest, but are purchased at a discount from their face values. Debt
securities have varying degrees of quality and varying levels of
sensitivity to changes in interest rates. Longer-term bonds are generally
more sensitive to interest rate changes than short-term bonds.
Lower-quality debt securities may have speculative characteristics, and
involve greater risk of default or price changes due to changes in the
issuer's creditworthiness. The market prices of these securities may
fluctuate more than higher-quality securities and may decline significantly
in periods of general or regional economic difficulty.
SPARTAN NEW YORK MUNICIPAL HIGH YIELD
Fiscal 1994 Debt Holdings, By Rating MOODY'S STANDARD &
POOR'S
INVESTORS SERVICE, INC. CORPORATION
Rating Average A Rating Averag
eA
INVESTMENT GRADE
Highest quality Aaa AAA
High quality Aa 49.1 % AA 55.9 %
Upper-medium grade A A
Medium grade Baa 42.5 % BBB 25.4 %
LOWER QUALITY
Moderately speculative Ba 0.0 % BB 3.6 %
Speculative B 0.0 % B 0.0 %
Highly speculative Caa 0.0 % CCC 0.0 %
Poor quality Ca CC
Lowest quality, no interest C C
In default, in arrears D 0.0 %
91.6 % 84.9 %
A THE DOLLAR-WEIGHTED AVERAGE OF DEBT SECURITIES NOT RATED BY MOODY'S OR
S&P AMOUNTED TO 2.2 %. THIS MAY INCLUDE SECURITIES RATED BY OTHER
NATIONALLY RECOGNIZED RATING SERVICES, AS WELL AS UNRATED SECURITIES.
FMR
HAS DETERMINED THAT UNRATED SECURITIES THAT ARE LOWER-QUALITY ACCOUNT
FOR
2.1% OF THE FUND'S TOTAL INVESTMENTS . REFER TO THE FUNDS' STATEMENT
OF
ADDITIONAL INFORMATION FOR A MORE COMPLETE DISCUSSION OF THESE RATINGS.

0.0%
0.0%
The table below provides a summary of ratings assigned to debt holdings
(not including money market instruments) in New York Tax-Free High Yield's
portfolio. These figures are dollar-weighted averages of month-end
portfolio holdings during fiscal 1994, and are presented as a percentage of
total investments. These percentages are historical and do not necessarily
indicate the fund's current or future debt holdings.
RESTRICTIONS: New York Tax-Free Insured does not currently intend to invest
more than 40% of its total assets in securities rated below A by Moody's or
S&P, and unrated securities judged by FMR to be of equivalent quality.
The fund does not currently intend to invest more than 5% of its assets in
securities rated Ba/BB or lower, and unrated securities of equivalent
quality. New York Tax-Free High Yield does not currently intend to invest
more than one-third of its assets in bonds judged by FMR to be of
equivalent quality to those rated Ba or lower by Moody's and BB or
lower by S&P, and does not currently intend to invest in bonds of
equivalent quality to bonds rated lower than B. The fund does not
currently intend to invest in bonds rated below Caa by Moody's or CCC by
S&P.
MUNICIPAL SECURITIES are issued to raise money for a variety of public
purposes, including general financing for state and local governments, or
financing for specific projects or public facilities. Municipal securities
may be issued in anticipation of future revenues, and may be backed by the
full taxing power of a municipality, the revenues from a specific project,
or the credit of a private organization. A security's credit may be
enhanced by a bank, insurance company, or other financial institution. A
fund may own a municipal security directly or through a participation
interest.
STATE TAX-FREE SECURITIES include municipal obligations issued by
the state of New York or its counties, municipalities, authorities, or
other subdivisions. The ability of issuers to repay their debt can be
affected by many factors that impact the economic vitality of either the
state or a region within the state.
Other s tate tax-free securities include general obligations of U.S.
territories and possessions such as Guam, the Virgin Islands, and Puerto
Rico, and their political subdivisions and public corporations. The economy
of Puerto Rico is closely linked to the U.S. economy, and will depend on
the strength of the U.S. dollar, interest rates, the price stability of oil
imports, and the continued existence of favorable tax incentives. Recent
legislation reduced these incentives, but it is impossible to predict what
impact the changes will have.
MUNICIPAL LEASE OBLIGATIONS are used by municipalities to acquire land,
equipment, or facilities. If the municipality stops making payments or
transfers its obligations to a private entity, the obligation could lose
value or become taxable.
PRIVATE ENTITIES may be involved in some municipal securities. For example,
industrial revenue bonds are backed by private entities, and resource
recovery bonds often involve private corporations. The viability of a
project or tax incentives could affect the value and credit quality of
these securities.
ASSET-BACKED SECURITIES may include pools of purchase contracts, financing
leases, or sales agreements entered into by municipalities. These
securities usually rely on continued payments by a municipality, and may
also be subject to prepayment risk.
VARIABLE- AND FLOATING-RATE INSTRUMENTS may have interest rates that move
in tandem with a benchmark, helping to stabilize their prices. Inverse
floaters have interest rates that move in the opposite direction from the
benchmark, making the instrument's market value more volatile.
PUT FEATURES entitle the holder to put (sell back) an instrument to the
issuer or a financial intermediary. In exchange for this benefit, a fund
may pay periodic fees or accept a lower interest rate. Demand features,
standby commitments, and tender options are types of put features.
ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to
increase or decrease its exposure to changing security prices, interest
rates, or other factors that affect security values. These techniques may
involve derivative transactions such as buying and selling options and
futures contracts and purchasing indexed securities.
FMR can use these practices to adjust the risk and return characteristics
of a fund's portfolio of investments. If FMR judges market conditions
incorrectly or employs a strategy that does not correlate well with the
fund's investments, these techniques could result in a loss, regardless of
whether the intent was to reduce risk or increase return. These techniques
may increase the volatility of the fund and may involve a small investment
of cash relative to the magnitude of the risk assumed. In addition, these
techniques could result in a loss if the counterparty to the transaction
does not perform as promised.
WHEN-ISSUED AND DELAYED-DELIVERY TRANSACTIONS are trading practices in
which payment and delivery for the securities take place at a future date.
The market value of a security could change during this period, which could
affect a fund's yield or the market value of its assets.
ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined by
FMR, under the supervision of the Board of Trustees, to be illiquid, which
means that they may be difficult to sell promptly at an acceptable price.
The sale of other securities may be subject to legal restrictions.
Difficulty in selling securities may result in a loss or may be costly to a
fund.
RESTRICTIONS: A fund may not purchase a security if, as a result, more than
10% of its assets would be invested in illiquid securities.
DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce the
risks of investing. This may include limiting the amount of money invested
in any one issuer or, on a broader scale, in any one industry or type of
project. Economic, business, or political changes can affect all securities
of a similar type. A fund that is not diversified may be more sensitive to
these changes, and also to changes in the market value of a single issuer
or industry.
RESTRICTIONS: The funds are considered non-diversified. Generally, to
meet federal tax requirements at the close of each quarter, a fund does
not invest more than 25% of its total assets in any one issuer and, with
respect to 50% of total assets, does not invest more than 5% of its total
assets in any one issuer. These limitations do not apply to U.S. government
securities. A fund may invest more than 25% of its total assets in tax-free
securities that finance similar types of projects.
BORROWING. A fund may borrow from banks or from other funds advised by
FMR, or through reverse repurchase agreements. If a bond fund borrows
money, its share price may be subject to greater fluctuation until the
borrowing is paid off. If the fund makes additional investments while
borrowings are outstanding, this may be considered a form of leverage.
RESTRICTIONS: A fund may borrow only for temporary or emergency purposes,
but not in an amount exceeding 33% of its total assets.
FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS
Some of the policies and restrictions discussed on the preceding pages are
fundamental, that is, subject to change only by shareholder approval. The
following paragraphs restate all those that are fundamental. All policies
stated throughout this prospectus, other than those identified in the
following paragraphs, can be changed without shareholder approval.
SPARTAN NEW YORK MUNICIPAL MONEY MARKET seeks as high a level of current
income, exempt from federal income tax and New York State and City income
taxes, as is consistent with preservation of capital by investing in
high - quality, short-term municipal obligations. The fund will
normally invest so that at least 80% of its income distributions are exempt
from federal income tax.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL seeks a high level of current
income exempt from federal income tax and New York State and City income
taxes. The fund will normally invest at least 80% of its assets in
municipal securities whose interest is free from federal income tax.
SPARTAN NEW YORK MUNICIPAL HIGH YIELD seeks the highest level of current
income, exempt from federal income tax and New York State and City income
taxes, available from municipal bonds judged by FMR to be of
investment-grade quality, although the fund may also invest a portion of
its assets in bonds rated below investment-grade quality. The fund will
normally invest so that at least 80% of its income distributions are exempt
from federal and New York State and City income taxes.
EACH FUND may borrow only for temporary or emergency purposes, but not in
an amount exceeding 33% of its total assets.
BREAKDOWN OF EXPENSES
Like all mutual funds, the funds pay fees related to their daily
operations. Expenses paid out of a fund's assets are reflected in its share
price or dividends; they are neither billed directly to shareholders nor
deducted from shareholder accounts.
Each fund pays a MANAGEMENT FEE to FMR for managing its
investments and business affairs. FMR in turn pays fees to an affiliate who
provides assistance with these services for Spartan New York Municipal
Money Market.
FMR may, from time to time, agree to reimburse the funds for management
fees above a specified limit. FMR retains the ability to be repaid by a
fund if expenses fall below the specified limit prior to the end of the
fiscal year. Reimbursement arrangements, which may be terminated at any
time without notice, can decrease a fund's expenses and boost its
performance.
MANAGEMENT FEE
The management fee is calculated and paid to FMR every month. Each fund
pays a management fee at a fixed annual rate of its average net assets:
.25% for New York Tax-Free Money Market and .55% for New York Tax-Free
Insured and New York Tax-Free High Yield. For Spartan New York Intermediate
Municipal, the total management fee rate for fiscal 1994, after
reimbursement, was . 00 % .
FMR HAS A SUB-ADVISORY AGREEMENT with FTX, which has primary responsibility
for providing investment management for New York Tax-Free Money Market,
while FMR retains responsibility for providing other management services.
FMR pays FTX 50% of its management fee (before expense reimbursements) for
these services.
FSC performs many transaction and accounting functions for the funds. These
services include processing shareholder transactions and calculating each
fund's share price. FMR, and not the funds, pays for these services.
To offset shareholder service costs, FMR or its affiliates also collect the
funds' $5.00 exchange fee, $5.00 account closeout fee, $5.00 fee for wire
purchases and redemptions, and for Spartan New York Municipal Money Market
and Spartan New York Intermediate Municipal, the $2.00 checkwriting charge.
For fiscal 1994, these fees amounted to $9,555, $1,473, $1,575, and $6,709,
respectively, for Spartan New York Municipal Money Market, $15, $0, $5, and
$0, respectively, for Spartan New York Intermediate Municipal, and $6,745,
$1,090, and $990, respectively, for Spartan New York Municipal High Yield.
Each fund has adopted a Distribution and Service Plan. These plans
recognize that FMR may use its resources, including management fees, to pay
expenses associated with the sale of fund shares. This may include payments
to third parties, such as banks or broker-dealers, that provide shareholder
support services or engage in the sale of the fund's shares. It is
important to note, however, that the funds do not pay FMR any separate fees
for this service.
For fiscal 1994, the portfolio turnover rates for Spartan New York
Intermediate Municipal and New York Tax-Free High Yield were 0 %
(annualized) and 50 %, respectively. These rates vary from year to
year.
YOUR ACCOUNT

DOING BUSINESS WITH FIDELITY
Fidelity Investments was established in 1946 to manage one of America's
first mutual funds. Today, Fidelity is the largest mutual fund company in
the country, and is known as an innovative provider of high-quality
financial services to individuals and institutions.
In addition to its mutual fund business, the company operates one of
America's leading discount brokerage firms, Fidelity Brokerage Services,
Inc. (FBSI). Fidelity is also a leader in providing tax-sheltered
retirement plans for individuals investing on their own or through their
employer.
Fidelity is committed to providing investors with practical information to
make investment decisions. Based in Boston, Fidelity provides customers
with complete service 24 hours a day, 365 days a year, through a network of
telephone service centers around the country.
To reach Fidelity for general information, call these numbers:
(bullet) For mutual funds, 1-800-544-8888
(bullet) For brokerage, 1-800-544-7272
If you would prefer to speak with a representative in person, Fidelity has
over 75 walk-in Investor Centers across the country.
TYPES OF ACCOUNTS
You may set up an account directly in a fund or, if you own or intend to
purchase individual securities as part of your total investment portfolio,
you may consider investing in a fund through a brokerage account. You
can choose Spartan New York Municipal Money Market as your core account for
your Fidelity Ultra Service Account(Registered trademark) or FidelityPlusSM
brokerage account.
If you are investing through FBSI or another financial institution or
investment professional, refer to its program materials for any special
provisions regarding your investment in the fund.
The different ways to set up (register) your account with Fidelity are
listed below.
WAYS TO SET UP YOUR ACCOUNT
INDIVIDUAL OR JOINT TENANT
FOR YOUR GENERAL INVESTMENT NEEDS
Individual accounts are owned by one person. Joint accounts can have two or
more owners (tenants).
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA)
TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS
These custodial accounts provide a way to give money to a child and obtain
tax benefits. An individual can give up to $10,000 a year per child without
paying federal gift tax. Depending on state laws, you can set up a
custodial account under the Uniform Gifts to Minors Act (UGMA) or the
Uniform Transfers to Minors Act (UTMA).
TRUST
FOR MONEY BEING INVESTED BY A TRUST
The trust must be established before an account can be opened.
BUSINESS OR ORGANIZATION
FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, OR OTHER
GROUPS
Requires a special application.
HOW TO BUY SHARES
EACH FUND'S SHARE PRICE, called net asset value (NAV), is calculated every
business day. New York Tax-Free Money Market is managed to keep its share
price stable at $1.00. Each fund's shares are sold without a sales charge.
Shares are purchased at the next share price calculated after your
investment is received and accepted. Share price is normally calculated at
4 p.m. Eastern time, and also at noon for New York Tax-Free Money Market.
IF YOU ARE NEW TO FIDELITY, complete and sign an account application and
mail it along with your check. You may also open your account in person or
by wire as described on page . If there is no application accompanying this
prospectus, call 1-800-544-8888.
IF YOU ALREADY HAVE MONEY INVESTED IN A FIDELITY FUND, you can:
(bullet) Mail in an application with a check, or
(bullet) Open your account by exchanging from another Fidelity fund.
If you buy shares by check or Fidelity Money Line(Registered trademark),
and then sell those shares by any method other than by exchange to another
Fidelity fund, the payment may be delayed for up to seven business days to
ensure that your previous investment has cleared.
MINIMUM INVESTMENTS
TO OPEN AN ACCOUNT $10,000
For Spartan NY Money Market $25,000
TO ADD TO AN ACCOUNT $1,000
Through automatic investment plans $500
MINIMUM BALANCE $5,000
For New York Money Market $10,000

UNDERSTANDING THE
SPARTAN APPROACH(Registered trademark)
Fidelity's Spartan Approach is
based on the principle that
lower fund expenses can
increase returns. The Spartan
funds keep expenses low in
two ways. First, higher
investment minimums reduce
the effect of a fund's fixed
costs, many of which are paid
on a per-account basis.
Second, unlike most mutual
funds that include transaction
costs as part of overall fund
expenses, Spartan
shareholders pay directly for
the transactions they make.
(checkmark)

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TO OPEN AN ACCOUNT TO ADD TO AN ACCOUNT

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Mail (mail_graphic) (bullet) Complete and sign the (bullet) Make your check
application. Make your payable to the complete
check payable to the name of the fund.
complete name of the Indicate your fund
fund of your choice. account number on
Mail to the address your check and m ail to
indicated on the the address printed on
application. your account statement.
(bullet) Exchange by mail: call
1-800-544-6666 for
instructions.

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Wire (wire_graphic) (bullet) There may be a $5.00 (bullet) There may be a $5.00
fee for each wire fee for each wire
purchase. purchase.
(bullet) Call 1-800-544-7777 to (bullet) Wire to:
set up your account Bankers Trust
and to arrange a wire Company,
transaction. Bank Routing
(bullet) Wire within 24 hours to: #021001033,
Bankers Trust Account #00163053.
Company, Specify the complete
Bank Routing name of the fund and
#021001033, include your account
Account #00163053. number and your
Specify the complete name.
name of the fund and
include your new
account number and
your name.

</TABLE>

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(tdd_graphic) TDD - Service for the Deaf and Hearing Impaired: 1-800-544-0118

</TABLE>

HOW TO SELL SHARES
You can arrange to take money out of your fund account at any time by
selling (redeeming) some or all of your shares. Your shares will be sold at
the next share price calculated after your order is received and accepted.
Share price is normally calculated at 4 p.m. Eastern time , and also
at noon for New York Tax-Free Money Market.
TO SELL SHARES THROUGH YOUR FIDELITY ULTRA SERVICE OR FIDELITYPLUS ACCOUNT,
call 1-800-544-6262 to receive a handbook with instructions.
IF YOU ARE SELLING SOME BUT NOT ALL OF YOUR SHARES, leave at least $5,000
worth of shares in the account ($10,000 for New York Tax-Free Money Market)
to keep it open.
TO SELL SHARES BY BANK WIRE OR FIDELITY MONEY LINE, you will need to sign
up for these services in advance.
CERTAIN REQUESTS MUST INCLUDE A SIGNATURE GUARANTEE. It is designed to
protect you and Fidelity from fraud. Your request must be made in writing
and include a signature guarantee if any of the following situations apply:
(bullet) You wish to redeem more than $100,000 worth of shares,
(bullet) Your account registration has changed within the last 30 days,
(bullet) The check is being mailed to a different address than the one on
your account (record address),
(bullet) The check is being made payable to someone other than the account
owner, or
(bullet) The redemption proceeds are being transferred to a Fidelity
account with a different registration.
You should be able to obtain a signature guarantee from a bank, broker
(including Fidelity Investor Centers), dealer, credit union (if authorized
under state law), securities exchange or association, clearing agency, or
savings association. A notary public cannot provide a signature guarantee.
SELLING SHARES IN WRITING
Write a "letter of instruction" with:
(bullet) Your name,
(bullet) The fund's name,
(bullet) Your fund account number,
(bullet) The dollar amount or number of shares to be redeemed, and
(bullet) Any other applicable requirements listed in the table at right.
Unless otherwise instructed, Fidelity will send a check to the record
address. Deliver your letter to a Fidelity Investor Center, or mail it to:
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
CHECKWRITING
If you have a checkbook for your account in Spartan New York Municipal
Money Market or Spartan New York Intermediate Municipal, you may write an
unlimited number of checks. Do not, however, try to close out your account
by check.
ACCOUNT TYPE SPECIAL REQUIREMENTS

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IF YOU SELL SHARES OF SPARTAN NEW YORK MUNICIPAL HIGH YIELD AFTER HOLDING THEM LESS
THAN 180 DAYS, THE FUND WILL DEDUCT A REDEMPTION FEE EQUAL TO .50% OF THE VALUE OF
THOSE SHARES. IF YOUR ACCOUNT BALANCE IS LESS THAN $50,000, THERE ARE FEES FOR
INDIVIDUAL REDEMPTION TRANSACTIONS: $2.00 FOR EACH CHECK YOU WRITE AND $5.00 FOR
EACH EXCHANGE, BANK WIRE, AND ACCOUNT CLOSEOUT.

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Phone 1-800-544-777 (phone_graphic) All account types (bullet) Maximum check request:
$100,000.
(bullet) For Money Line transfers to
your bank account; minimum:
$10 ; maximum: $100,000.
(bullet) You may exchange to other
Fidelity funds if both
accounts are registered with
the same name(s), address,
and taxpayer ID number.

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Check (check_graphic) All account types (bullet) Minimum check: $1,000.
(bullet) All account owners must sign
a signature card to receive a
checkbook.

</TABLE>

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(tdd_graphic) TDD - Service for the Deaf and Hearing Impaired: 1-800-544-0118

</TABLE>

To reduce expenses, only one copy of most financial reports will be mailed
to your household, even if you have more than one account in the fund. Call
1-800-544-6666 if you need copies of financial reports or historical
account information.
TRANSACTION SERVICES
EXCHANGE PRIVILEGE. You may sell your fund shares and buy shares of other
Fidelity funds by telephone or in writing. There may be a $5.00 fee for
each exchange out of the funds , unless you place your transactions on
Fidelity's automated exchange services .
Note that exchanges out of a fund are limited to four per calendar year,
and that they may have tax consequences for you. For complete policies and
restrictions governing exchanges, including circumstances under which a
shareholder's exchange privilege may be suspended or revoked, see page .
SYSTEMATIC WITHDRAWAL PLANS let you set up monthly or quarterly redemptions
from your account.
FIDELITY MONEY LINE(Registered trademark) enables you to transfer money by
phone between your bank account and your fund account. Most transfers are
complete within three business days of your call.
REGULAR INVESTMENT PLANS
One easy way to pursue your financial goals is to invest money regularly.
Fidelity offers convenient services that let you transfer money into your
fund account, or between fund accounts, automatically. While regular
investment plans do not guarantee a profit and will not protect you against
loss in a declining market, they can be an excellent way to invest for a
home, educational expenses, and other long-term financial goals.
REGULAR INVESTMENT PLANS

FIDELITY AUTOMATIC ACCOUNT BUILDERSM
TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY FUND

MINIMUM FREQUENCY SETTING UP OR CHANGING
$500 Monthly or (bullet) For a new account, complete the
quarterly appropriate section on the fund
application.
(bullet) For existing accounts, call
1-800-544-6666 for an application.
(bullet) To change the amount or frequency of
your investment, call 1-800-544-6666 at
least three business days prior to your
next scheduled investment date.

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DIRECT DEPOSIT
TO SEND ALL OR A PORTION OF YOUR PAYCHECK OR GOVERNMENT CHECK TO A FIDELITY FUNDA

</TABLE>

MINIMUM FREQUENCY SETTING UP OR CHANGING
$500 Every pay (bullet) Check the appropriate box on the fund
period application, or call 1-800-544-6666 for an
authorization form.
(bullet) Changes require a new authorization
form.

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FIDELITY AUTOMATIC EXCHANGE SERVICE
TO MOVE MONEY FROM A FIDELITY MONEY MARKET FUND TO ANOTHER FIDELITY FUND

</TABLE>

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MINIMUM FREQUENCY SETTING UP OR CHANGING
$500 Monthly, (bullet) To establish, call 1-800-544-6666 after
bimonthly, both accounts are opened.
quarterly, or (bullet) To change the amount or frequency of
annually your investment, call 1-800-544-6666.

</TABLE>

A BECAUSE BOND FUND SHARE PRICES FLUCTUATE, THOSE FUNDS MAY NOT BE
APPROPRIATE CHOICES FOR DIRECT DEPOSIT OF YOUR ENTIRE CHECK.
SHAREHOLDER AND ACCOUNT POLICIES

DIVIDENDS, CAPITAL GAINS, AND TAXES
Each fund distributes substantially all of its net investment income and
capital gains , if any, to shareholders each year. Income dividends
are declared daily and paid monthly. Capital gains earned by the bond funds
are normally distributed in March and December.
DISTRIBUTION OPTIONS
When you open an account, specify on your application how you want to
receive your distributions. If the option you prefer is not listed on the
application, call 1-800-544-6666 for instructions. Each fund offers four
options (three for New York Tax-Free Money Market):
5. REINVESTMENT OPTION. Your dividend and capital gain distributions, if
any, will be automatically reinvested in additional shares of the fund. If
you do not indicate a choice on your application, you will be assigned this
option.
6. INCOME-EARNED OPTION. Your capital gain distributions, if any, will be
automatically reinvested, but you will be sent a check for each dividend
distribution. This option is not available for New York Tax-Free Money
Market.
7. CASH OPTION. You will be sent a check for your dividend and capital gain
distributions, if any.
8. DIRECTED DIVIDENDS(Registered trademark) OPTION. Your dividend and
capital gain distributions, if any, will be automatically invested in
another identically registered Fidelity fund.
Dividends will be reinvested at the fund's NAV on the last day of the
month. Capital gain distributions, if any, will be reinvested at the NAV as
of the date the fund deducts the distribution from its NAV. The mailing of
distribution checks will begin within seven days.
UNDERSTANDING
DISTRIBUTIONS
As a fund shareholder, you
are entitled to your share of
the fund's net income and
gains on its investments. The
fund passes its earnings
along to its investors as
DISTRIBUTIONS.
Each fund earns interest from
its investments. These are
passed along as DIVIDEND
DISTRIBUTIONS. The fund may
realize capital gains if it sells
securities for a higher price
than it paid for them. These
are passed along as CAPITAL
GAIN DISTRIBUTIONS. Money
market funds usually don't
make capital gain
distributions.
(checkmark)
TAXES
As with any investment, you should consider how an investment in a tax-free
fund could affect you. Below are some of the funds' tax implications.
TAXES ON DISTRIBUTIONS. Interest income that a fund earns is distributed to
shareholders as income dividends. Interest that is federally tax-free
remains tax-free when it is distributed.
However, gain on the sale of tax-free bonds results in taxable
distributions. Short-term capital gains and a portion of the gain on bonds
purchased at a discount are taxed as dividends. Long-term capital gain
distributions are taxed as long-term capital gains. These distributions are
taxable when they are paid, whether you take them in cash or reinvest them.
However, distributions declared in December and paid in January are taxable
as if they were paid on December 31. Fidelity will send you and the IRS a
statement showing the tax status of the distributions paid to you in the
previous year.
The interest from some municipal securities is subject to the federal
alternative minimum tax. Each fund may invest up to 100% of its assets in
these securities. Individuals who are subject to the tax must report this
interest on their tax returns.
To the extent a fund's income dividends are derived from state tax-free
investments, they will be free from New York state and city income taxes.
During fiscal 1994, 100% of each fund's income dividends was free from
federal income tax and 100%, 98.9%, and 100% were free from New York State
and City income taxes for Spartan New York Municipal Money Market, Spartan
New York Intermediate Municipal, and Spartan New York Municipal High Yield,
respectively. 24.8%, 18.6%, and 24.1% of Spartan New York Municipal Money
Market's, Spartan New York Intermediate Municipal's, and Spartan New York
Municipal High Yield's income dividends, respectively, were subject to the
federal alternative minimum tax.
TAXES ON TRANSACTIONS. Your bond fund redemptions - including exchanges to
other Fidelity funds - are subject to capital gains tax. A capital gain or
loss is the difference between the cost of your shares and the price you
receive when you sell them.
Whenever you sell shares of a fund, Fidelity will send you a confirmation
statement showing how many shares you sold and at what price. You will also
receive a consolidated transaction statement every January. However, it is
up to you or your tax preparer to determine whether this sale resulted in a
capital gain and, if so, the amount of tax to be paid. Be sure to keep your
regular account statements; the information they contain will be essential
in calculating the amount of your capital gains.
"BUYING A DIVIDEND." If you buy shares just before a fund deducts a
capital gain distribution from its NAV, you will pay the full price for
the shares and then receive a portion of the price back in the form of a
taxable distribution.
TRANSACTION DETAILS
THE FUNDS ARE OPEN FOR BUSINESS each day the New York Stock Exchange (NYSE)
is open. Fidelity normally calculates each fund's net asset value as of
the close of business of the NYSE, normally 4 p.m. Eastern time, and also
at noon for New York Tax-Free Money Market.
EACH FUND'S NAV is the value of a single share. The NAV is computed by
adding the value of the fund's investments, cash, and other assets,
subtracting its liabilities, and then dividing the result by the number of
shares outstanding.
The money market fund values the securities it owns on the basis of
amortized cost. This method minimizes the effect of changes in a security's
market value and helps the fund to maintain a stable $1.00 share price. For
the bond funds, assets are valued primarily on the basis of market
quotations, if available. Since market quotations are often unavailable,
assets are usually valued by a method that the Board of Trustees believes
accurately reflects fair value.
EACH FUND'S OFFERING PRICE (price to buy one share) and REDEMPTION PRICE
(price to sell one share) are its NAV.
WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify that
your Social Security or taxpayer identification number is correct and that
you are not subject to 31% backup withholding for failing to report income
to the IRS. If you violate IRS regulations, the IRS can require a fund to
withhold 31% of your taxable distributions and redemptions.
YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE. Note that Fidelity will
not be responsible for any losses resulting from unauthorized transactions
if it follows reasonable procedures designed to verify the identity of the
caller. Fidelity will request personalized security codes or other
information, and may also record calls. You should verify the accuracy of
your confirmation statements immediately after you receive them. If you do
not want the ability to redeem and exchange by telephone, call Fidelity for
instructions.
IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during periods
of unusual market activity), consider placing your order by mail or by
visiting a Fidelity Investor Center.
EACH FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING OF SHARES for a period
of time. Each fund also reserves the right to reject any specific purchase
order, including certain purchases by exchange. See "Exchange Restrictions"
on page . Purchase orders may be refused if, in FMR's opinion, they are of
a size that would disrupt management of a fund.
WHEN YOU PLACE AN ORDER TO BUY SHARES, your order will be processed at the
next offering price calculated after your order is received and accepted.
Note the following:
(bullet) All of your purchases must be made in U.S. dollars and checks
must be drawn on U.S. banks.
(bullet) Fidelity does not accept cash.
(bullet) When making a purchase with more than one check, each check must
have a value of at least $50.
(bullet) Each fund reserves the right to limit the number of checks
processed at one time.
(bullet) If your check does not clear, your purchase will be cancelled and
you could be liable for any losses or fees a fund or its transfer agent has
incurred.
(bullet) You begin to earn dividends as of the first business day
following the day of your purchase.
TO AVOID THE COLLECTION PERIOD associated with check and Money Line
purchases, consider buying shares by bank wire, U.S. Postal money order,
U.S. Treasury check, Federal Reserve check, or direct deposit instead.
YOU MAY BUY OR SELL SHARES OF THE FUNDS THROUGH A BROKER, who may charge
you a fee for this service. If you invest through a broker or other
institution, read its program materials for any additional service features
or fees that may apply.
CERTAIN FINANCIAL INSTITUTIONS that have entered into sales agreements with
Fidelity Distributors Corporation (FDC) may enter confirmed purchase orders
on behalf of customers by phone, with payment to follow no later than the
time when a fund is priced on the following business day. If payment is not
received by that time, the financial institution could be held liable for
resulting fees or losses.
WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at the
next NAV calculated after your request is received and accepted. Note the
following:
(bullet) Normally, redemption proceeds will be mailed to you on the next
business day, but if making immediate payment could adversely affect a
fund, it may take up to seven days to pay you.
(bullet) Shares will earn dividends through the date of redemption;
however, shares redeemed on a Friday or prior to a holiday will continue to
earn dividends until the next business day.
(bullet) Fidelity Money Line redemptions generally will be credited to
your bank account on the second or third business day after your phone
call.
(bullet) Each fund may hold payment on redemptions until it is reasonably
satisfied that investments made by check or Fidelity Money Line have been
collected, which can take up to seven business days.
(bullet) Redemptions may be suspended or payment dates postponed when the
NYSE is closed (other than weekends or holidays), when trading on the NYSE
is restricted, or as permitted by the SEC.
(bullet) If you sell shares by writing a check and the amount of the check
is greater than the value of your account, your check will be returned to
you and you may be subject to additional charges.
THE REDEMPTION FEE for New York Tax-Free High Yield , if applicable,
will be deducted from the amount of your redemption. This fee is paid to
the fund rather than FMR, and it does not apply to shares that were
acquired through reinvestment of distributions. If shares you are redeeming
were not all held for the same length of time, those shares you held
longest will be redeemed first for purposes of determining whether the fee
applies.
THE FEES FOR INDIVIDUAL TRANSACTIONS are waived if your account balance at
the time of the transaction is $50,000 or more. Otherwise, you should note
the following:
(bullet) The $2.00 checkwriting charge will be deducted from your account.
(bullet) The $5.00 exchange fee will be deducted from the amount of your
exchange.
(bullet) The $5.00 wire fee will be deducted from the amount of your wire.
(bullet) The $5.00 account closeout fee does not apply to exchanges or
wires, but it will apply to checkwriting.
IF YOUR ACCOUNT BALANCE FALLS BELOW $5,000 ($10,000 for New York Tax-Free
Money Market), you will be given 30 days' notice to reestablish the minimum
balance. If you do not increase your balance, Fidelity reserves the right
to close your account and send the proceeds to you. Your shares will be
redeemed at the NAV on the day your account is closed and the $5.00 account
closeout fee will be charged.
FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing
historical account documents, that are beyond the normal scope of its
services.
EXCHANGE RESTRICTIONS
As a shareholder, you have the privilege of exchanging shares of a fund for
shares of other Fidelity funds. However, you should note the following:
(bullet) The fund you are exchanging into must be registered for sale in
your state.
(bullet) You may only exchange between accounts that are registered in the
same name, address, and taxpayer identification number.
(bullet) Before exchanging into a fund, read its prospectus.
(bullet) If you exchange into a fund with a sales charge, you pay the
percentage-point difference between that fund's sales charge and any sales
charge you have previously paid in connection with the shares you are
exchanging. For example, if you had already paid a sales charge of 2% on
your shares and you exchange them into a fund with a 3% sales charge, you
would pay an additional 1% sales charge.
(bullet) Exchanges may have tax consequences for you.
(bullet) Because excessive trading can hurt fund performance and
shareholders, each fund reserves the right to temporarily or permanently
terminate the exchange privilege of any investor who makes more than four
exchanges out of the fund per calendar year. Accounts under common
ownership or control, including accounts with the same taxpayer
identification number, will be counted together for purposes of the four
exchange limit.
(bullet) Each fund reserves the right to refuse exchange purchases by any
person or group if, in FMR's judgment, the fund would be unable to invest
the money effectively in accordance with its investment objective and
policies, or would otherwise potentially be adversely affected.
(bullet) Your exchanges may be restricted or refused if a fund receives or
anticipates simultaneous orders affecting significant portions of the
fund's assets. In particular, a pattern of exchanges that coincide with a
"market timing" strategy may be disruptive to a fund.
Although the funds will attempt to give you prior notice whenever they are
reasonably able to do so, they may impose these restrictions at any time.
The funds reserve the right to terminate or modify the exchange privilege
in the future.
OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose
administrative fees of up to $7.50 and redemption fees of up to 1.50% on
exchanges. Check each fund's prospectus for details.

This prospectus is printed on recycled paper using soy-based inks.

SPARTAN(registered trademark) NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO
A FUND OF FIDELITY NEW YORK MUNICIPAL TRUST II
SPARTAN(registered trademark) NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO
A FUND OF FIDELITY NEW YORK MUNICIPAL TRUST
SPARTAN(registered trademark) NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO
A FUND OF FIDELITY NEW YORK MUNICIPAL TRUST
STATEMENT OF ADDITIONAL INFORMATION
MARCH 22, 1994
This Statement is not a prospectus but should be read in conjunction with
the funds' current Prospectus (dated March 22, 1994). Please retain this
document for future reference. The Annual Report for the fiscal year ended
January 31, 1994 is incorporated herein by reference. To obtain an
additional copy of the Prospectus or the Annual Report, please call
Fidelity Distributors Corporation at 1-800-544-8888.
TABLE OF CONTENTS PAGE

Investment Policies and Limitations

Special Factors Affecting New York

Special Factors Affecting Puerto Rico

Portfolio Transactions

Valuation of Portfolio Securities

Performance

Additional Purchase and Redemption Information

Distributions and Taxes

FMR

Trustees and Officers

Management Contracts

Distribution and Service Plans

Interest of FMR Affiliates

Description of the Trusts

Financial Statements

Appendix

INVESTMENT ADVISER
Fidelity Management & Research Company (FMR)
INVESTMENT SUB-ADVISER (MONEY MARKET FUND ONLY)
FMR Texas Inc. (FMR Texas)
DISTRIBUTOR
Fidelity Distributors Corporation (FDC)
CUSTODIAN AND TRANSFER AGENT
United Missouri Bank, N.A. (United Missouri) and Fidelity Service Co. (FSC)
SNR-ptb-394

INVESTMENT POLICIES AND LIMITATIONS
The following policies and limitations supplement those set forth in the
Prospectus. Unless otherwise noted, whenever an investment policy or
limitation states a maximum percentage of a fund's assets that may be
invested in any security or other asset, or sets forth a policy regarding
quality standards, such standard or percentage limitation will be
determined immediately after and as a result of the fund's acquisition of
such security or other asset. Accordingly, any subsequent change in
values, net assets, or other circumstances will not be considered when
determining whether the investment complies with the fund's investment
policies and limitations.
Each fund's fundamental investment policies and limitations cannot be
changed without approval by a "majority of the outstanding voting
securities" (as defined in the Investment Company Act of 1940 ) of a
fund. However, except for the fundamental investment limitations set forth
below, the investment policies and limitations described in this Statement
of Additional Information are not fundamental and may be changed without
shareholder approval.
INVESTMENT LIMITATIONS OF SPARTAN NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO
(MONEY MARKET FUND)
THE FOLLOWING ARE THE MONEY MARKET FUND'S FUNDAMENTAL INVESTMENT
LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) sell securities short, unless it owns, or by virtue of its ownership of
other securities, has the right to obtain at no added cost, securities
equivalent in kind and amount to the securities sold short;
(3) purchase securities on margin, except that the fund may obtain such
short-term credits as are necessary for the clearance of transactions;
(4) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(5) underwrite securities issued by others (except to the extent that the
fund may be deemed to be an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities);
(6) purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities, or tax-exempt obligations issued or guaranteed by a U.S.
territory or possession or a state or local government, or a political
subdivision of any of the foregoing) if, as a result, more than 25% of the
fund's total assets would be invested in securities of companies whose
principal business activities are in the same industry;
(7) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(8) purchase or sell physical commodities unless acquired as a result of
ownership of securities; or
(9) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
(10) The fund may, notwithstanding any other fundamental investment policy
or limitation, invest all of its assets in the securities of a single
open-end management investment company with substantially the same
fundamental investment objective, policies, and limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED
WITHOUT SHAREHOLDER APPROVAL.
(i) To meet federal tax requirements for qualification as a "regulated
investment company," the fund limits its investments so that at the close
of each quarter of its taxable year: (a) with regard to at least 50% of
total assets, no more than 5% of total assets are invested in the
securities of a single issuer, and (b) no more than 25% of total assets are
invested in the securities of a single issuer. Limitations (a) and (b) do
not apply to "Government securities" as defined for federal tax purposes.
(ii) The fund does not currently intend to sell securities short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iii) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (4)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(iv) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(v) The fund does not currently intend to invest more than 25% of its
total assets in industrial revenue bonds related to a single industry.
(vi) The fund does not currently intend to purchase or sell futures
contracts or call options. This limitation does not apply to options
attached to, or acquired or traded together with, their underlying
securities, and does not apply to securities that incorporate features
similar to options or futures contracts.
(vii) The fund does not currently intend to engage in repurchase
agreements or make loans, but this limitation does not apply to purchases
of debt securities.
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.
(ix) The fund does not currently intend to invest all of its assets in the
securities of a single open-end management investment company with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
For purposes of limitations (6) and (i), FMR identifies the issuer of a
security depending on its terms and conditions. In identifying the issuer,
FMR will consider the entity or entities responsible for payment of
interest and repayment of principal and the source of such payments; the
way in which assets and revenues of an issuing political subdivision are
separated from those of other political entities; and whether a
governmental body is guaranteeing the security.
For the money market fund's limitations on quality and maturity, see
the section entitled "Quality and Maturity" on page .
INVESTMENT LIMITATIONS OF SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO
(INTERMEDIATE FUND)
THE FOLLOWING ARE THE INTERMEDIATE FUND'S FUNDAMENTAL INVESTMENT
LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities, or tax-exempt obligations issued or guaranteed by a U.S.
territory or possession or a state or local government, or a political
subdivision of any of the foregoing) if, as a result, more than 25% of the
fund's total assets would be invested in securities of companies whose
principal business activities are in the same industry;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
the fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities); or
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
(8) The fund may, notwithstanding any other fundamental investment policy
or limitation, invest all of its assets in the securities of a single
open-end management investment company with substantially the same
fundamental investment objective, policies, and limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED
WITHOUT SHAREHOLDER APPROVAL.
(i) To meet federal tax requirements for qualification as a "regulated
investment company," the fund limits its investments so that at the close
of each quarter of its taxable year: (a) with regard to at least 50% of
total assets, no more than 5% of total assets are invested in the
securities of a single issuer, and (b) no more than 25% of total assets are
invested in the securities of a single issuer. Limitations (a) and (b) do
not apply to "Government securities" as defined for federal tax purposes.
(ii) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(v) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vi) The fund does not currently intend to invest more than 25% of its
total assets in industrial revenue bonds related to a single industry.
(vii) The fund does not currently intend to engage in repurchase agreements
or make loans, but this limitation does not apply to purchases of debt
securities.
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.
(ix) The fund does not currently intend to invest all of its assets in the
securities of a single open-end management investment company with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
For purposes of limitations (4) and (i), FMR identifies the issuer of a
security depending on its terms and conditions. In identifying the issuer,
FMR will consider the entity or entities responsible for payment of
interest and repayment of principal and the source of such payments; the
way in which assets and revenues of an issuing political subdivision are
separated from those of other political entities; and whether a
governmental body is guaranteeing the security.
For the intermediate fund's limitations on futures and options
transactions, see the section entitled "Limitations on Futures and Options
Transactions" on page .
INVESTMENT LIMITATIONS OF SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO
(HIGH YIELD FUND)
THE FOLLOWING ARE THE HIGH YIELD FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS
SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities, or tax-exempt obligations issued or guaranteed by a U.S.
territory or possession or a state or local government, or a political
subdivision of any of the foregoing) if, as a result, more than 25% of the
fund's total assets would be invested in securities of companies whose
principal business activities are in the same industry;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
the fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities; or,
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
(8) The fund may, notwithstanding any other fundamental investment policy
or limitation, invest all of its assets in the securities of a single
open-end management investment company with substantially the same
fundamental investment objective, policies, and limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED
WITHOUT SHAREHOLDER APPROVAL.
(i) To meet federal tax requirements for qualification as a "regulated
investment company," the fund limits its investments so that at the close
of each quarter of its taxable year: (a) with regard to at least 50% of
total assets, no more than 5% of total assets are invested in the
securities of a single issuer, and (b) no more than 25% of total assets are
invested in the securities of a single issuer. Limitations (a) and (b) do
not apply to "Government securities" as defined for federal tax purposes.
(ii) The fund does not currently intend to sell securities short, unless
it owns or has the right to obtain securities equivalent in kind and amount
to the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings presenting more than 5% of its total
assets are outstanding. The fund will not borrow from other funds advised
by FMR or its affiliates if total outstanding borrowings immediately after
such borrowing would exceed 15% of the fund's total assets.
(v) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vi) The fund does not currently intend to invest more than 25% of its
total assets in industrial revenue bonds related to a single industry.
(vii) The fund does not currently intend to engage in repurchase
agreements or make loans, but this limitation does not apply to purchases
of debt securities.
(vii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.
(viii) The fund does not currently intend to invest all of its assets in
the securities of a single open-end management investment company with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
For purposes of limitations (4) and (i), FMR identifies the issuer of a
security depending on its terms and conditions. In identifying the issuer,
FMR will consider the entity or entities responsible for payment of
interest and repayment of principal and the source of such payments; the
way in which assets and revenues of an issuing political subdivision are
separated from those of other political entities; and whether a
governmental body is guaranteeing the security.
For the high yield fund's limitations on futures and options transactions,
see the section entitled "Limitations on Futures and Options Transactions"
on page .
AFFILIATED BANK TRANSACTIONS. A fund may engage in transactions with
financial institutions that are, or may be considered to be, "affiliated
persons" of the fund under the Investment Company Act of 1940. These
transactions may include repurchase agreements with custodian banks;
short-term obligations of, and repurchase agreements with, the 50 largest
U.S. banks (measured by deposits); municipal securities; U.S. government
securities with affiliated financial institutions that are primary dealers
in these securities; U.S. government securities with affiliated financial
institutions that are primary dealers in these securities; short-term
currency transactions; and short-term borrowings. In accordance with
exemptive orders issued by the Securities and Exchange Commission, the
Board of Trustees has established and periodically reviews procedures
applicable to transactions involving affiliated financial institutions.
QUALITY AND MATURITY (MONEY MARKET FUND ONLY). Pursuant to procedures
adopted by the Board of Trustees, the fund may purchase only high-quality
securities that FMR believes present minimal credit risks. To be
considered high-quality, a security must be rated in accordance with
applicable rules in one of the two highest categories for short-term
securities by at least two nationally recognized rating services (or by
one, if only one rating service has rated the security) or, if unrated,
judged to be of equivalent quality by FMR. The fund must limit its
investments to securities with remaining maturities of 397 days or less and
must maintain a dollar-weighted average maturity of 90 days or less.
DELAYED-DELIVERY TRANSACTIONS. Each fund may buy and sell securities on a
delayed-delivery or when-issued basis. These transactions involve a
commitment by a fund to purchase or sell specific securities at a
predetermined price or yield, with payment and delivery taking place after
the customary settlement period for that type of security (and more than
seven days in the future). Typically, no interest accrues to the purchaser
until the security is delivered. The intermediate and high yield
funds may receive fees for entering into delayed-delivery transactions.
When purchasing securities on a delayed-delivery basis, each fund assumes
the rights and risks of ownership, including the risk of price and yield
fluctuations. Because a fund is not required to pay for securities until
the delivery date, these risks are in addition to the risks associated with
the fund's other investments. If a fund remains substantially fully
invested at a time when delayed-delivery purchases are outstanding, the
delayed-delivery purchases may result in a form of leverage. When
delayed-delivery purchases are outstanding, the fund will set aside
appropriate liquid assets in a segregated custodial account to cover its
purchase obligations. When a fund has sold a security on a
delayed-delivery basis, the fund does not participate in further gains or
losses with respect to the security. If the other party to a
delayed-delivery transaction fails to deliver or pay for the securities,
the fund could miss a favorable price or yield opportunity, or could suffer
a loss.
Each fund may renegotiate delayed-delivery transactions after they are
entered into, and may sell underlying securities before they are delivered,
which may result in capital gains or losses.
REFUNDING CONTRACTS. The intermediate and high yield funds may purchase
securities on a when-issued basis in connection with the refinancing of an
issuer's outstanding indebtedness. Refunding contracts require the issuer
to sell and a fund to buy refunded municipal obligations at a stated price
and yield on a settlement date that may be several months or several years
in the future. The funds generally will not be obligated to pay the full
purchase price if they fail to perform under a refunding contract.
Instead, refunding contracts generally provide for payment of liquidated
damages to the issuer (currently 15-20% of the purchase price). A fund may
secure its obligations under a refunding contract by depositing collateral
or a letter of credit equal to the liquidated damages provisions of the
refunding contract. When required by SEC guidelines, each fund will place
liquid assets in a segregated custodial account equal in amount to its
obligations under refunding contracts.
INVERSE FLOATERS. The intermediate and high yield funds may invest in
inverse floaters, which are instruments whose interest rates bear an
inverse relationship to the interest rate on another security or the value
of an index. Changes in the interest rate on the other security or index
inversely affect the residual interest rate paid on the inverse floater,
with the result that the inverse floater's price will be considerably more
volatile than that of a fixed-rate bond. For example, a municipal issuer
may decide to issue two variable-rate instruments instead of a single
long-term, fixed-rate bond. The interest rate on one instrument reflects
short-term interest rates, while the interest rate on the other instrument
(the inverse floater) reflects the approximate rate the issuer would have
paid on a fixed-rate bond, multiplied by two, minus the interest rate paid
on the short-term instrument. Depending on market availability, the two
portions may be recombined to form a fixed-rate municipal bond. The market
for inverse floaters is relatively new.
VARIABLE OR FLOATING RATE OBLIGATIONS bear variable or floating interest
rates and carry rights that permit holders to demand payment of the unpaid
principal balance plus accrued interest from the issuers or certain
financial intermediaries. Floating rate instruments have interest rates
that change whenever there is a change in a designated base rate while
variable rate instruments provide for a specified periodic adjustment in
the interest rate. These formulas are designed to result in a market value
for the instrument that approximates its par value.
With respect to the money market fund, a demand instrument with a
conditional demand feature must have received both a short-term and a
long-term high-quality rating or, if unrated, have been determined to be of
comparable quality pursuant to procedures adopted by the Board of Trustees.
A demand instrument with an unconditional demand feature may be acquired
solely in reliance upon a short-term high-quality rating or, if unrated,
upon a finding of comparable short-term quality pursuant to procedures
adopted by the Board of Trustees.
The funds may invest in fixed-rate bonds that are subject to third party
puts and in participation interests in such bonds held in trust or
otherwise. These bonds and participation interests have tender options or
demand features that permit a fund to tender (or put) the bonds to an
institution at periodic intervals and to receive the principal amount
thereof. A fund considers variable rate instruments structured in this way
(Participating VRDOs) to be essentially equivalent to other VRDOs it
purchases. The IRS has not ruled whether the interest on Participating
VRDOs is tax-exempt and, accordingly, a fund intends to purchase these
instruments based on opinions of bond counsel.
The money market fund may invest in variable or floating rate instruments
that ultimately mature in more than 397 days, if the fund acquires a right
to sell the instruments that meets certain requirements set forth in Rule
2a-7. Variable rate instruments (including instruments subject to a demand
feature) that mature in 397 days or less may be deemed to have maturities
equal to the period remaining until the next readjustment of the interest
rate. Other variable rate instruments with demand features may be deemed to
have a maturity equal to the period remaining until the next adjustment of
the interest rate or the period remaining until the principal amount can be
recovered through demand. A floating rate instrument subject to a demand
feature may be deemed to have a maturity equal to the period remaining
until the principal amount can be recovered through demand.
TENDER OPTION BONDS are created by coupling an intermediate- or long-term,
fixed-rate, tax-exempt bond (generally held pursuant to a custodial
arrangement) with a tender agreement that gives the holder the option to
tender the bond at its face value. As consideration for providing the
tender option, the sponsor (usually a bank, broker-dealer, or other
financial institution) receives periodic fees equal to the difference
between the bond's fixed coupon rate and the rate (determined by a
remarketing or similar agent) that would cause the bond, coupled with the
tender option, to trade at par on the date of such determination. After
payment of the tender option fee, a fund effectively holds a demand
obligation that bears interest at the prevailing short-term tax-exempt
rate. Subject to applicable regulatory requirements, the money market fund
may buy tender option bonds if the agreement gives the fund the right to
tender the bond to its sponsor no less frequently than once every 397 days.
In selecting tender option bonds for the funds, FMR will consider the
creditworthiness of the issuer of the underlying bond, the custodian, and
the third party provider of the tender option. In certain instances, a
sponsor may terminate a tender option if, for example, the issuer of the
underlying bond defaults on interest payments.
ZERO COUPON BONDS do not make regular interest payments. Instead, they are
sold at a deep discount from their face value and are redeemed at face
value when they mature. Because zero coupon bonds do not pay current
income, their prices can be very volatile when interest rates change. In
calculating its daily dividend, a fund takes into account as income a
portion of the difference between a zero coupon bond's purchase price and
its face value.
STANDBY COMMITMENTS are puts that entitle holders to same-day settlement at
an exercise price equal to the amortized cost of the underlying security
plus accrued interest, if any, at the time of exercise. Each fund may
acquire standby commitments to enhance the liquidity of portfolio
securities, but, in the case of the money market fund, only when the
issuers of the commitments present minimal risk of default.
Ordinarily a fund will not transfer a standby commitment to a third party,
although it could sell the underlying municipal security to a third party
at any time. A fund may purchase standby commitments separate from or in
conjunction with the purchase of securities subject to such commitments. In
the latter case, the fund would pay a higher price for the securities
acquired, thus reducing their yield to maturity. Standby commitments will
not affect the dollar-weighted average maturity of the money market fund or
the valuation of the securities underlying the commitments.
Issuers or financial intermediaries may obtain letters of credit or other
guarantees to support their ability to buy securities on demand. FMR may
rely upon its evaluation of a bank's credit in determining whether to
support an instrument supported by a letter of credit. In evaluating a
foreign bank's credit, FMR will consider whether adequate public
information about the bank is available and whether the bank may be subject
to unfavorable political or economic developments, currency controls, or
other governmental restrictions that might affect the bank's ability to
honor its credit commitment.
Standby commitments are subject to certain risks, including the ability of
issuers of standby commitments to pay for securities at the time the
commitments are exercised; the fact that standby commitments are not
marketable by the funds; and the possibility that the maturities of the
underlying securities may be different from those of the commitments.
MUNICIPAL LEASE OBLIGATIONS. Each fund may invest a portion of its assets
in municipal leases and participation interests therein. These obligations,
which may take the form of a lease, an installment purchase, or a
conditional sale contract, are issued by state and local governments and
authorities to acquire land and a wide variety of equipment and facilities.
Generally, the funds will not hold such obligations directly as a lessor of
the property, but will purchase a participation interest in a municipal
obligation from a bank or other third party. A participation interest gives
a fund a specified, undivided interest in the obligation in proportion to
its purchased interest in the total amount of the obligation.
Municipal leases frequently have risks distinct from those associated with
general obligation or revenue bonds. State constitutions and statutes set
forth requirements that states or municipalities must meet to incur debt.
These may include voter referenda, interest rate limits, or public sale
requirements. Leases, installment purchases, or conditional sale contracts
(which normally provide for title to the leased asset to pass to the
governmental issuer) have evolved as a means for governmental issuers to
acquire property and equipment without meeting their constitutional and
statutory requirements for the issuance of debt. Many leases and contracts
include "non-appropriation clauses" providing that the governmental issuer
has no obligation to make future payments under the lease or contract
unless money is appropriated for such purposes by the appropriate
legislative body on a yearly or other periodic basis. Non-appropriation
clauses free the issuer from debt issuance limitations.
FEDERALLY TAXABLE OBLIGATIONS. The funds do not intend to invest in
securities whose interest is federally taxable; however, from time to time,
each fund may invest a portion of its assets on a temporary basis in
fixed-income obligations whose interest is subject to federal income tax.
For example, each fund may invest in obligations whose interest is
federally taxable pending the investment or reinvestment in municipal
securities of proceeds from the sale of its shares or sales of portfolio
securities.
Should a fund invest in federally taxable obligations, it would purchase
securities that in FMR's judgment are of high quality. These would include
obligations issued or guaranteed by the U.S. government or its agencies or
instrumentalities; obligations of domestic banks; and repurchase
agreements. The intermediate and high yield funds' standards for
high-quality taxable obligations are essentially the same as those
described by Moody's Investors Service, Inc. (Moody's) in rating corporate
obligations within its two highest ratings of Prime-1 and Prime-2, and
those described by Standard & Poor's Corporation (S&P) in rating
corporate obligations within its two highest ratings of A-1 and A-2. The
money market fund will purchase taxable obligations only if they meet its
quality requirements.
Proposals to restrict or eliminate the federal income tax exemption for
interest on municipal obligations are introduced before Congress from time
to time. Proposals also may be introduced before the New York State
legislature that would affect the state tax treatment of the funds'
distributions. If such proposals were enacted, the availability of
municipal obligations and the value of the funds' holdings would be
affected and the Trustees would reevaluate the funds' investment objectives
and policies.
Each fund anticipates being as fully invested as practicable in municipal
securities; however, there may be occasions when, as a result of maturities
of portfolio securities, sales of fund shares, or in order to meet
redemption requests, a fund may hold cash that is not earning income. In
addition, there may be occasions when, in order to raise cash to meet
redemptions, a fund may be required to sell securities at a loss.
INDEXED SECURITIES. The intermediate and high yield funds may purchase
securities whose prices are indexed to the prices of other securities,
securities indices, or other financial indicators. Indexed securities
typically, but not always, are debt securities or deposits whose value at
maturity or coupon rate is determined by reference to a specific instrument
or statistic. Indexed securities may have principal payments as well as
coupon payments that depend on the performance of one or more interest
rates. Their coupon rates or principal payments may change by several
percentage points for every 1% interest rate change. One example of indexed
securities is inverse floaters.
The performance of indexed securities depends to a great extent on the
performance of the security or other instrument to which they are indexed,
and may also be influenced by interest rate changes. At the same time,
indexed securities are subject to the credit risks associated with the
issuer of the security, and their values may decline substantially if the
issuer's creditworthiness deteriorates. Indexed securities may be more
volatile than the underlying instruments.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund purchases a
security and simultaneously commits to resell that security to the seller
at an agreed-upon price on an agreed-upon date within a number of days from
the date of purchase. The resale price reflects the purchase price plus an
agreed-upon incremental amount which is unrelated to the coupon rate or
maturity of the purchased security. A repurchase agreement is a taxable
obligation which involves the obligation of the seller to pay the
agreed-upon price, which obligation is in effect secured by the value (at
least equal to the amount of the agreed-upon resale price and marked to
market daily) of the underlying security. Each fund may engage in
repurchase agreements with respect to any security in which it is
authorized to invest even if, with respect to the money market fund, the
underlying security matures in more than 397 days. While it does not
presently appear possible to eliminate all risks from these transactions
(particularly the possibility of a decline in the market value of the
underlying securities, as well as delays and costs to a fund in connection
with bankruptcy proceedings), it is each fund's current policy to limit
repurchase agreement transactions to those parties whose creditworthiness
has been reviewed and found satisfactory by FMR.
REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund
sells a portfolio instrument to another party, such as a bank or
broker-dealer, in return for cash and agrees to repurchase the instrument
at a particular price and time. While a reverse repurchase agreement is
outstanding, a fund will maintain appropriate liquid assets in a segregated
custodial account to cover its obligation under the agreement. Each fund
will enter into reverse repurchase agreements only with parties whose
creditworthiness has been found satisfactory by FMR. Such transactions may
increase fluctuations in the market value of a fund's assets and may
be viewed as a form of leverage.
ILLIQUID INVESTMENTS are investments that cannot be sold or disposed of in
the ordinary course of business at approximately the prices at which they
are valued. Under the supervision of the Board of Trustees, FMR determines
the liquidity of each fund's investments and, through reports from FMR, the
Board monitors investments in illiquid instruments. In determining the
liquidity of each fund's investments, FMR may consider various factors
including (1) the frequency of trades and quotations, (2) the number of
dealers and prospective purchasers in the marketplace, (3) dealer
undertakings to make a market, and (4) the nature of the security
(including any demand or tender features), and (5) the nature of the
marketplace for trades (including the ability to assign or offset a fund's
rights and obligations relating to the investment). Investments currently
considered by the money market fund to be illiquid include restricted
securities and municipal lease obligations determined by FMR to be
illiquid. Investments currently considered by the intermediate and high
yield funds to be illiquid include over-the-counter options. Also, FMR may
determine some restricted securities and municipal lease obligations to be
illiquid. However, with respect to over-the-counter options the
intermediate and high yield funds write, all or a portion of the value of
the underlying instrument may be illiquid depending on the assets held to
cover the option and the nature and terms of any agreement a fund may have
to close out the option before expiration. In the absence of market
quotations, illiquid investments for the money market fund are
valued for purposes of monitoring amortized cost valuation, and for the
bond funds are priced at fair value as determined in good faith
by a committee appointed by the Board of Trustees. If through a change in
values, net assets, or other circumstances, a fund were in a position where
more than 10% of its net assets were invested in illiquid securities, it
would seek to take appropriate steps to protect liquidity.
RESTRICTED SECURITIES generally can be sold in privately negotiated
transactions, pursuant to an exemption from registration under the
Securities Act of 1933, or in a registered public offering. Where
registration is required, a fund may be obligated to pay all or part of the
registration expense and a considerable period may elapse between the time
it decides to seek registration and the time the fund may be permitted to
sell a security under an effective registration statement. If, during such
a period, adverse market conditions were to develop, a fund might obtain a
less favorable price than prevailed when it decided to seek registration of
the security. However, in general, the money market fund anticipates
holding restricted securities to maturity or selling them in an exempt
transaction.
LOWER-RATED MUNICIPAL SECURITIES. The intermediate and high yield funds
may invest a portion of their assets in lower-rated municipal securities as
described in the Prospectus.
While the market for New York municipals is considered to be substantial,
adverse publicity and changing investor perceptions may affect the ability
of outside pricing services used by each fund to value its portfolio
securities, and a fund's ability to dispose of lower-rated bonds. The
outside pricing services are monitored by FMR and reported to the
Board to determine whether the services are furnishing prices that
accurately reflect fair value. The impact of changing investor perceptions
may be especially pronounced in markets where municipal securities are
thinly traded.
A fund may choose, at its expense or in conjunction with others, to pursue
litigation or otherwise exercise its rights as a security holder to seek to
protect the interests of security holders if it determines this to be in
the best interest of a fund's shareholders.
INTERFUND BORROWING PROGRAM. Each fund has received permission from the
SEC to lend money to and borrow money from other funds advised by FMR or
its affiliates, but will participate in the interfund borrowing program
only as a borrower. Interfund loans normally will extend overnight, but
can have a maximum duration of seven days. A fund will borrow through the
program only when the costs are equal to or lower than the costs of bank
loans. Loans may be called on one day's notice, and the fund may have to
borrow from a bank at a higher interest rate if an interfund loan is called
or not renewed.
LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS (INTERMEDIATE AND HIGH
YIELD FUNDS ONLY). Each fund has filed a notice of eligibility for
exclusion from the definition of the term "commodity pool operator" with
the Commodity Futures Trading Commission (CFTC) and the National Futures
Association, which regulate trading in the futures markets. The funds
intend to comply with Section 4.5 of the regulations under the
Commodity Exchange Act, which limits the extent to which the funds
can commit assets to initial margin deposits and option premiums.
In addition, each fund will not: (a) sell futures contracts,
purchase put options, or write call options if, as a result, more than 25%
of a fund's total assets would be hedged with futures and options under
normal conditions; (b) purchase futures contracts or write put options if,
as a result, the fund's total obligations upon settlement or
exercise of purchased futures contracts and written put options would
exceed 25% of its total assets; or (c) purchase call options if, as a
result, the current value of option premiums for call options purchased by
a fund would exceed 5% of the fund's total assets. These
limitations do not apply to options attached to, or acquired or traded
together with their underlying securities, and do not apply to securities
that incorporate features similar to options.
The above limitations on the funds' investments in futures contracts
and options, and the funds' policies regarding futures contracts and
options discussed elsewhere in this Statement of Additional Information
may be changed as regulatory agencies permit.
FUTURES CONTRACTS. When a fund purchases a futures contract, it agrees to
purchase a specified underlying instrument at a specified future date.
When the fund sells a futures contract, it agrees to sell the underlying
instrument at a specified future date. The price at which the purchase and
sale will take place is fixed when the fund enters into the contract. Some
currently available futures contracts are based on specific securities,
such as U.S. Treasury bonds or notes, and some are based on indices of
securities prices, such as the Bond Buyer Municipal Bond Index. Futures
can be held until their delivery dates, or can be closed out before then if
a liquid secondary market is available.
The value of a futures contract tends to increase and decrease in tandem
with the value of its underlying instrument. Therefore, purchasing futures
contracts will tend to increase the fund's exposure to positive and
negative price fluctuations in the underlying instrument, much as if it had
purchased the underlying instrument directly. When the fund sells a
futures contract, by contrast, the value of its futures position will tend
to move in a direction contrary to the market. Selling futures contracts,
therefore, will tend to offset both positive and negative market price
changes, much as if the underlying instrument had been sold.
FUTURES MARGIN PAYMENTS. The purchaser or seller of a futures contract is
not required to deliver or pay for the underlying instrument unless the
contract is held until the delivery date. However, both the purchaser and
seller are required to deposit "initial margin" with a futures broker known
as a futures commission merchant (FCM), when the contract is entered into.
Initial margin deposits are typically equal to a percentage of the
contract's value. If the value of either party's position declines, that
party will be required to make additional "variation margin" payments to
settle the change in value on a daily basis. The party that has a gain may
be entitled to receive all or a portion of this amount. Initial and
variation margin payments do not constitute purchasing securities on margin
for purposes of the funds' investment limitations. In the event of the
bankruptcy of an FCM that holds margin on behalf of the fund, the fund may
be entitled to return of margin owed to it only in proportion to the amount
received by the FCM's other customers, potentially resulting in losses to
the fund.
PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, a fund
obtains the right (but not the obligation) to sell the option's underlying
instrument at a fixed strike price. In return for this right, the fund
pays the current market price for the option (known as the option premium).
Options have various types of underlying instruments, including specific
securities, indices of securities prices, and futures contracts. The fund
may terminate its position in a put option it has purchased by allowing it
to expire or by exercising the option. If the option is allowed to expire,
the fund will lose the entire premium it paid. If the fund exercises the
option, it completes the sale of the underlying instrument at the strike
price. The fund may also terminate a put option position by closing it out
in the secondary market at its current price, if a liquid secondary market
exists.
The buyer of a typical put option can expect to realize a gain if security
prices fall substantially. However, if the underlying instrument's price
does not fall enough to offset the cost of purchasing the option, a put
buyer can expect to suffer a loss (limited to the amount of the premium
paid, plus related transaction costs).
The features of call options are essentially the same as those of put
options, except that the purchaser of a call option obtains the right to
purchase, rather than sell, the underlying instrument at the option's
strike price. A call buyer typically attempts to participate in potential
price increases of the underlying instrument with risk limited to the cost
of the option if security prices fall. At the same time, the buyer can
expect to suffer a loss if security prices do not rise sufficiently to
offset the cost of the option.
WRITING PUT AND CALL OPTIONS. When a fund writes a put option, it takes
the opposite side of the transaction from the option's purchaser. In
return for receipt of the premium, the fund assumes the obligation to pay
the strike price for the option's underlying instrument if the other party
to the option chooses to exercise it. When writing an option on a futures
contract the fund will be required to make margin payments to an FCM as
described above for futures contracts. The fund may seek to terminate its
position in a put option it writes before exercise by closing out the
option in the secondary market at its current price. If the secondary
market is not liquid for a put option the fund has written, however, the
fund must continue to be prepared to pay the strike price while the option
is outstanding, regardless of price changes, and must continue to set aside
assets to cover its position.
If security prices rise, a put writer generally would expect to profit,
although its gain would be limited to the amount of the premium it
received. If security prices remain the same over time, it is likely that
the writer will also profit, because it should be able to close out the
option at a lower price. If security prices fall, the put writer would
expect to suffer a loss. This loss should be less than the loss from
purchasing the underlying instrument directly, however, because the premium
received for writing the option should mitigate the effects of the decline.
Writing a call option obligates a fund to sell or deliver the option's
underlying instrument, in return for the strike price, upon exercise of the
option. The characteristics of writing call options are similar to those
of writing put options, except that writing calls generally is a profitable
strategy if prices remain the same or fall. Through receipt of the option
premium, a call writer mitigates the effects of a price decline. At the
same time, because a call writer must be prepared to deliver the underlying
instrument in return for the strike price, even if its current value is
greater, a call writer gives up some ability to participate in security
price increases.
COMBINED POSITIONS. A fund may purchase and write options in combination
with each other, or in combination with futures or forward contracts, to
adjust the risk and return characteristics of the overall position. For
example, a fund may purchase a put option and write a call option on the
same underlying instrument, in order to construct a combined position whose
risk and return characteristics are similar to selling a futures contract.
Another possible combined position would involve writing a call option at
one strike price and buying a call option at a lower price, in order to
reduce the risk of the written call option in the event of a substantial
price increase. Because combined options positions involve multiple
trades, they result in higher transaction costs and may be more difficult
to open and close out.
CORRELATION OF PRICE CHANGES. Because there are a limited number of types
of exchange-traded options and futures contracts, it is likely that the
standardized contracts available will not match a fund's current or
anticipated investments exactly. Each fund may invest in options
and futures contracts based on securities with different issuers,
maturities, or other characteristics from the securities in which it
typically invests, which involves a risk that the options or futures
position will not track the performance of a fund's other
investments.
Option and futures prices can also diverge from the prices of their
underlying instruments, even if the underlying instruments match the fund's
investments well. Options and futures prices are affected by such factors
as current and anticipated short-term interest rates, changes in volatility
of the underlying instrument, and the time remaining until expiration of
the contract, which may not affect security prices the same way. Imperfect
correlation may also result from differing levels of demand in the options
and futures markets and the securities markets, from structural differences
in how options and futures and securities are traded, or from imposition of
daily price fluctuation limits or trading halts. A fund may purchase or
sell options and futures contracts with a greater or lesser value than the
securities it wishes to hedge or intends to purchase in order to attempt to
compensate for differences in volatility between the contract and the
securities, although this may not be successful in all cases. If price
changes in a fund's options or futures positions are poorly correlated with
its other investments, the positions may fail to produce anticipated gains
or result in losses that are not offset by gains in other investments.
LIQUIDITY OF OPTIONS AND FUTURES CONTRACTS. There is no assurance a liquid
secondary market will exist for any particular options or futures contract
at any particular time. Options may have relatively low trading volume and
liquidity if their strike prices are not close to the underlying
instrument's current price. In addition, exchanges may establish daily
price fluctuation limits for options and futures contracts, and may halt
trading if a contract's price moves upward or downward more than the limit
in a given day. On volatile trading days when the price fluctuation limit
is reached or a trading halt is imposed, it may be impossible for the fund
to enter into new positions or close out existing positions. If the
secondary market for a contract is not liquid because of price fluctuation
limits or otherwise, it could prevent prompt liquidation of unfavorable
positions, and potentially could require the fund to continue to hold a
position until delivery or expiration regardless of changes in its value.
As a result, the fund's access to other assets held to cover its options or
futures positions could also be impaired.
OTC OPTIONS. Unlike exchange-traded options, which are standardized with
respect to the underlying instrument, expiration date, contract size, and
strike price, the terms of over-the-counter options (options not traded on
exchanges) generally are established through negotiation with the other
party to the option contract. While this type of arrangement allows the
fund greater flexibility to tailor an option to its needs, OTC options
generally involve greater credit risk than exchange-traded options, which
are guaranteed by the clearing organization of the exchanges where they are
traded.
ASSET COVERAGE FOR FUTURES AND OPTIONS POSITIONS. The funds will comply
with guidelines established by the Securities and Exchange Commission with
respect to coverage of options and futures strategies by mutual funds, and
if the guidelines so require will set aside appropriate liquid assets in a
segregated custodial account in the amount prescribed. Securities held in
a segregated account cannot be sold while the futures or option strategy is
outstanding, unless they are replaced with other suitable assets. As a
result, there is a possibility that segregation of a large percentage of
a fund's assets could impede portfolio management or the fund's
ability to meet redemption requests or other current obligations.
SPECIAL FACTORS AFFECTING NEW YORK
The financial condition of the State of New York (the State), its public
authorities and public benefit corporations (the Authorities) and its local
governments, particularly The City of New York (the City), could affect the
market values and marketability of, and therefore the net asset value per
share and the interest income of, the funds, or result in the default of
existing obligations, including obligations which may be held by the funds.
The following section provides only a brief summary of the complex factors
affecting the financial situation in New York and is based on information
obtained from the State, certain of its Authorities, the City and certain
other localities, as publicly available on the date of this Statement of
Additional Information. The information contained in such publicly
available documents has not been independently verified. It should be
noted that the creditworthiness of obligations issued by local issuers may
be unrelated to the creditworthiness of the State, and that there is no
obligation on the part of the State to make payment on such local
obligations in the event of default in the absence of a specific guarantee
or pledge provided by the State.
The State and the City have been facing serious financial difficulties and
have each experienced recent declines in their credit standings. Standard
& Poor's Corporation and Moody's Investors Service Inc. have each
assigned ratings for the State's general obligation bonds that are among
the three lowest of the 50 states. The ratings of certain related debt of
other issuers for which the State has an outstanding moral obligation,
lease purchase, guarantee or other contractual obligation are generally
linked directly to the State's rating. Should the financial condition of
the State, its Authorities, or its local governments deteriorate, their
respective credit ratings could be further reduced, and the market value
and marketability of their outstanding notes and bonds could be adversely
affected, and their respective access to the public credit markets
jeopardized.
ECONOMIC FACTORS. New York is the second most populous state, and
historically has been one of the wealthiest states in the nation. However,
the State economy has grown more slowly than that of the nation as a whole,
resulting in the gradual erosion of its relative economic affluence (due to
factors such as relative costs for taxes, labor, and energy). The State's
manufacturing and maritime base have been seriously eroded, as illustrated
by the decline of the steel industry in the Buffalo area and of the apparel
and textile industries in the City. In addition, the City experienced
substantial socio-economic changes, as a large segment of its population
and a significant share of corporate headquarters and other businesses
relocated (many out-of-state).
Both the State and the City experienced substantial revenue increases in
the mid-1980s attributable directly (corporate income and financial
corporations taxes) and indirectly (personal income and a variety of other
taxes) to growth in new jobs, rising profits, and capital appreciation
derived from the finance sector of the City's economy. From 1977 to its
1988 peak, the finance, insurance, and real estate sectors rose 55%, to
account in 1988 for 23% of total earnings in the City and 14% statewide
(compared to 7% nationwide). The finance sector's growth was a catalyst
for the New York metropolitan region's related business and professional
services, retail trade and residential and commercial real estate markets.
The then rising real estate market contributed to City revenues, as higher
property values and new construction added to collections from property
taxes, mortgage recording, and transfer taxes and sales taxes on building
materials. The boom on Wall Street more than compensated for the continued
erosion of the State's (and the City's) manufacturing and maritime base,
since average wages in finance and related business and professional
services were substantially higher (thereby providing a net increase of
higher incomes, taxed at even higher marginal rates).
However, the effects of the October 1987 stock market crash and the 1990-92
national recession have had a disproportionately adverse impact on the New
York metropolitan region, as private sector job losses since 1989 have
offset all the prior employment gains of the 1980s. Declines in both
employment and earnings in the finance sector contributed to declines in
retail sales and real estate values. In addition, a number of widely
publicized bankruptcies among highly leveraged retailing, brokerage and
real estate development companies occurred. The effects of the recession
have extended to banking, insurance, business services (such as law,
accounting and advertising), publishing and communications. Factors which
may inhibit the City's economic recovery include (i) credit restraints
imposed by the weak financial condition of several major money center banks
located in the City; (ii) increases in combined State and local tax
burdens, if uncompetitive tax rates are imposed; (iii) perceived declines
in the quality of life attributable to service reductions and the
deterioration of the City's aging and dilapidated infrastructure; or (iv)
additional employment losses in the City's banking sector or corporate
headquarters complex due to further corporate relocations or
restructurings. The City's future economic condition will also likely be
affected by its competitive position as a world financial center (compared
to London, Tokyo, Frankfurt, and competing regional U.S. centers).
While the State's economy (the nation's second largest) is broader-based
than that of the City, particular industries are concentrated in and have a
disproportionate impact on certain areas, such as aerospace in Long Island,
heavy industry in Buffalo, photographic and optical equipment in Rochester,
machinery and transportation equipment in Syracuse and Utica-Rome,
computers in Binghamton and in the Mid-Hudson Valley, and electrical
equipment in Schenectedy. Of the six largest private employers in the
State outside the City, three derive a significant share of their revenues
from contracts with the Defense Department, whose budget (and contract
outlays) may be further reduced during the 1990s. In addition, State
government has a significant local economic impact on the Albany area and
on communities where state university campuses or corrections and mental
health facilities are located. Constraints on economic growth, taxpayer
resistance to proposed substantial increases in local tax rates, and
reductions in State aid in regions apart from the City have contributed to
financial difficulties for several county and other local governments.
These recent trends have had, and may continue to have, an adverse impact
on both State and local government revenue receipts. The adverse fiscal
impact on the State and its local governments (especially the City, Suffolk
County and Buffalo) of the 1990-92 national recession has been substantial,
and could worsen if the recession deepens or is protracted locally. For
calendar year 1993, the economy of the State grew faster than in 1992, but
at a very moderate pace compared to other recoveries. Moderate economic
growth is expected to continue in 1994 at a faster rate than in 1993.
However, there can be no assurance that the State economy will not
experience worse-than-predicted results in the 1993-94 and 1994-95 fiscal
years with corresponding material and adverse effects on the State's
projections of receipts and disbursements.
THE STATE. The State has been experiencing substantial financial
difficulties, with General Fund (the principal operating account) deficits
incurred in each of the past five fiscal years (ending March 31). The
State's accumulated General Fund deficit (on a GAAP basis) grew 91%
from FY1986-87 to FY1990-91, and reached a then-record $6.265 billion
(audited) by March 31, 1991. Due largely to the accounting treatment of
State aid to local governments now paid by New York Local Government
Assistance Corporation (as described below), the State had a General Fund
surplus (on a GAAP basis) of $1.668 billion in FY1991-92 (although the
State issued $531 million of its deficit notes at fiscal year end to avert
a cash-basis deficit). As a consequence, the accumulated General Fund
deficit at March 31, 1992 was restated to be $4.616 billion. The
accumulated General Fund deficit at March 31, 1993 was $2.551 billion. The
1993-94 State Financial Plan as last amended on February 17, 1994, projects
a surplus of $339 million, more than one percent of the General Fund. The
recommended 1994-95 State Financial Plan projects a balanced General Fund
and does not require an intra-year note issuance for cash flow purposes.
The state faces a potential $3.0 billion gap in preparing a
FY1994-95 budget. There can be no assurance that the State will not
face budget gaps in future years, resulting from a disparity between tax
revenues projected from a lower recurring-receipts base and the spending
required to maintain State programs at current levels. Furthermore, the
State is a party to numerous lawsuits in which an adverse decision could
require extraordinary expenditures. Certain major budgetary considerations
affecting the State are outlined below.
REVENUE BASE. The State's principal revenue sources are economically
sensitive, and include the personal income tax ( 57 % of estimated
FY1993-94 General Fund tax receipts), user taxes and fees
( 15 %), and business taxes (19%). Uncertainties in taxpayer
behavior as a result of actual and proposed changes in Federal tax law also
can have an adverse impact on State tax receipts. One-fourth of the 4%
State sales tax has been dedicated to pay debt service of the New York
Local Government Assistance Corporation ("LGAC") , and has
correspondingly reduced General Fund receipts. To the extent those
moneys are not necessary for payment to LGAC, they are transferred from the
LGAC Tax Fund to the General Fund and reported as a transfer from other
funds rather than as sales and use tax receipts. During fiscal years
1991-92 and 1992-93, moneys were so transferred. It is estimated that
$1.278 billion will be transferred from the LGAC Tax Fund to the General
Fund in fiscal year 1993-94. Capital gains are a significant component
of income tax collections. Auto sales and building materials are
significant components of retail sales tax collections. Tax rates are
relatively high and may impose political and economic constraints on the
ability of the State to further increase its taxes. State legislation
enacted in 1987 phased in a reduction in the top rate of the State's
personal income tax; these tax cuts have substantially reduced the
recurring revenues of the State. The final phase-in (originally scheduled
for October 1990) has been deferred four times, and the rules for
calculating tax liability for the 1993 tax year will be the same as those
for the 1992 tax year and the tax reduction program will be frozen at
current rates. Legislation proposed with the 1994-95 recommended Executive
Budget would defer the scheduled tax reduction for the fifth consecutive
year and would avoid a reduction in receipts of approximately $800 million
in the 1994-95 fiscal year. In the absence of countervailing economic
growth or expenditure cuts the tax cuts could make the achievement
of a balanced State budget more difficult in future years.
STATE DEBT. The State has the heaviest debt burden of any state (with
nearly $5.0 billion of long-term general obligation and $20.6
billion of lease-purchase or other contractual debt outstanding as of
December 31, 1993 ), and debt service costs absorb a large share of
the State's budget. As of December 31, 1993 t he State is also
obligated with respect to nearly $7.5 billion for statutory moral
obligations for 8 of its Authorities and for guarantees of
$430 million of other Authority debt. In addition, the State has
one of the largest seasonal financing requirements of any municipal issuer,
and is required each spring to borrow substantial sums from public credit
markets to finance its accumulated General Fund deficit and its scheduled
payments of aid to local governments and school districts. No assurance
can be given that the State will be able to continue to meet its financing
requirements in the public credit markets at the times or in the amounts
required. The annual Spring Borrowing is contingent on the certification
by the State Comptroller that the newly adopted State budget is balanced.
Prior delays in the Spring Borrowing in recent years owing to delayed
enactment of the State budget have resulted in delays in the scheduled
payments of State aid and have consequently caused various local
governments and school districts to experience cash flow difficulties. For
the fifth consecutive year, a growing budget gap caused the State at
the end of its fiscal year to issue $850 million of its short-term
notes (payable from the next year's tax and revenue receipts) to
finance its FY1992-93 deficit. The State recently created the New York
Local Government Assistance Corporation as a financing vehicle
to reduce the State's seasonal financing needs by having LGAC finance the
State's local assistance payments by issuing long-term debt, payable over
30 years from a portion of the State sales tax. The enabling legislation
for LGAC contains a covenant restricting the amount of the State's Spring
Borrowing, which may reduce the State's fiscal flexibility.
BUDGETARY FLEXIBILITY. A significant portion of the State's General
Fund budget is accounted for by contractually required expenses (such as
pension and debt service costs) and by federally mandated programs (such as
AFDC and Medicaid). In addition, State aid for school districts comprises
a major share of the budget, and total appropriations and distribution of
such aid is especially contentious politically. Furthermore, the State has
utilized a substantial range of actions of a non-recurring nature in recent
years to finance its General Fund operations, including tapping excess
monies in special funds, refinancing outstanding debt to reduce reserve
fund requirements and current (but not long-term) debt service costs,
recalculating pension fund contributions, selling state assets, reimbursing
past General Fund expenditures by the issuance of Authority debt, and
deferring payment for expenditures to future fiscal years. The 1993-94
State Financial Plan contains actions of a non-recurring nature including
Federal reimbursements relating to a Medicaid payment and of the costs of
educating handicapped children and a transfer to the State of abandoned
property held by title companies, totalling to $270 million. Such
actions may have reduced the State's ability to respond to unanticipated
events in the future.
POLITICAL FACTORS. Political control of the Legislature has been divided
between the Senate and the Assembly for most of the State's recent history,
and has contributed to protracted State budget negotiations that have
delayed enactment of the State budget past the April 1 constitutional
deadline in each of the past eight years. In addition, the independently
elected State Comptroller audits state agencies, Authorities and local
governments, and issues reports from time to time that may result in
adverse publicity or conflicting fiscal projections.
LABOR COSTS. The State government workforce is mostly unionized, subject
to the Taylor Law which authorizes collective bargaining and prohibits (but
has not historically prevented) strikes and work slowdowns. Costs for
employee health benefits have increased substantially, and can be expected
to further increase. The State has a substantial unfunded liability for
future pension benefits, and has utilized changes in its pension fund
investment return assumptions to reduce current contribution requirements.
If such investment earnings assumptions are not sustained by actual
results, additional State contributions will be required in future years to
meet the State's contractual obligations. The State's change in
actuarial method from the aggregate cost method to a modified projected
unit credit in the 1990-91 fiscal year created a substantial surplus that
was amortized and applied to offset the State's contribution through the
1993-94 fiscal year. This change in actuarial method was ruled
unconstitutional by the State's highest court and the State will return to
the aggregate cost method in fiscal year 1994-95 using a four-year
phase-in. Employer contributions, including the State's, are expected to
increase over the next five to ten years.
PUBLIC ASSISTANCE. The State has the second largest number of persons
receiving public assistance (AFDC and Home Relief) of any state. AFDC
costs are shared among the federal government, the State and its counties
(including the City) by statutory formula. Caseloads tend to rise
significantly during economic downturns, but have fallen only in the later
stages of past economic recoveries.
MEDICAID. The State participates in the federal Medicaid program under a
state plan approved by the Health Care Financing Administration. The
federal government provides 50% of eligible program costs, with the
remainder shared by the State and its counties (including the City). The
Governor has proposed that the State assume local costs for Medicaid, but
enabling legislation has not yet been adopted. Basic program eligibility
and benefits are determined by federal guidelines, but the State provides a
number of optional benefits and expanded eligibility. Program costs have
increased substantially in recent years, and account for a rising share of
the State budget. Federal law requires the State adopt reimbursement rates
for hospitals and nursing homes that are reasonable and adequate to meet
the costs that must be incurred by efficiently and economically operated
facilities in providing patient care, a standard that has led to past
litigation by hospitals and nursing homes seeking higher reimbursement from
the State. Cutbacks in State spending for Medicaid may adversely affect
the financial condition of hospitals and health care institutions that are
the obligors of bonds that may be held by the funds.
ENERGY COSTS. Increases in energy costs, especially for heating oil and
gasoline, may exceed budgeted amounts. Such costs are related to the
severity of winter conditions and to international developments affecting
the petroleum market.
ENVIRONMENTAL PROTECTION. Federal legislation and Environment Protection
Agency regulations mandate compliance with various standards for air and
water pollution and hazardous wastes. Many jurisdictions within the State
(including the City) are not in compliance with such standards, and are
subject to a range of penalties. No assurance can be given that the State
or its local governments will meet such standards within the current
deadlines for compliance under such regulations or consent decrees, or that
such deadlines will be further extended. The costs of compliance are
substantial, as may be the costs of penalties that may be imposed on the
State or its local governments.
THE STATE AUTHORITIES. The State's Authorities are not subject to the
constitutional restrictions on the incurrence of debt which apply to the
State itself, and may issue bonds and notes within the amounts of, and as
otherwise restricted by, their legislative authorization. The New York
State Public Authorities Control Board approves the issuance of debt and
major contracts by ten of the Authorities. As of September 30, 1993, there
were 18 Authorities that had outstanding debt of $100 million or more, the
aggregate debt of which (including refunding bonds and moral obligation ,
lease-purchase, contractual obligation, or State-guaranteed debt) then
totaled approximately $63.5 billion. In recent years the State has
provided financial assistance through appropriations, in some cases of a
recurring nature, to certain Authorities for operating and other expenses
and, (from 1976 to 1987) in fulfillment of its commitments on moral
obligation indebtedness or otherwise, for debt service. The State has
budgeted operating assistance of approximately $1.153 billion for
the Metropolitan Transportation Authority (MTA) and $18.7 million
for four other Authorities (including the State Housing Finance Agency and
the State Urban Development Corporation) during FY1993-94 . This
assistance is expected to continue to be required (and may increase) in
future years. Failure by the State to appropriate necessary amounts or to
take other action to permit the Authorities to meet their obligations
could adversely affect the ability of the State and the Authorities to
obtain financing in the public credit markets and the market price of the
State's outstanding bonds and notes.
The MTA, whose credit standing was recently cut, oversees the
operation of the City's subway and bus lines by its affiliates, the New
York City Transit Authority and the Manhattan and Bronx Surface Transit
Operating Authority (collectively, the "TA"). MTA subsidiaries operate
certain commuter rail and bus lines in the New York metropolitan area. An
affiliated agency, the Triborough Bridge and Tunnel Authority (TBTA),
operates certain intrastate toll bridges and tunnels. To maintain its
facilities and equipment, which deteriorated significantly in the late
1970s due to deferred maintenance, the MTA prepares a four - year
capital program subject to approval by the MTA Capital Program Review
Board. The State legislature authorized the funding of a portion of a
four-year $9.56 billion capital plan for the MTA for 1992 through 1996 in
April 1993. The four-year capital program for 1992-96 submitted by the MTA
was approved by the State Capital Program Review Board in December 1993.
The MTA faces reduced revenues due to a falloff in ridership,
reduced collections from dedicated taxes (mortgage recording and realty
transfer taxes) and reduced State and City aid. The TA and commuter
railroad ended their fiscal year on December 31, 1993, with their budget
balanced on a cash basis and the TA had a closing cash balance of
approximately $39 million. The TA projects a cash surplus of $77.6 million
at the end of 1994. Because fares are not sufficient to finance its
mass transit operations, the MTA has depended and will continue to depend
for operating support upon a system of State, local government and TBTA
support, and, to the extent available, federal assistance (including loans,
grants and operating subsidies). A regional business tax surcharge, which
provided $480 million in revenues to the MTA in calendar year
1993 , is scheduled to expire, unless extended by the Legislature, in
November 1995 . In addition, the City provides a substantial subsidy
to the TA. There can be no assurance that any such assistance will
continue at any particular level or in any fixed relationship to the
operating costs and capital needs of the MTA.
THE CITY. In the early 1970s, the City incurred substantial operating
deficits, and its financial controls, accounting practices, and disclosure
policies were widely criticized. In 1975, the City encountered severe
financial difficulties and lost access to the public credit markets. The
State Legislature responded in 1975 by creating the Municipal Assistance
Corporation For The City of New York (MAC) to provide financing assistance
for the City and the Financial Control Board to exercise certain oversight
and review functions with respect to the City's finances. The Financial
Control Board's powers over the City were suspended in June 1986, but would
be reinstated (under current law) if the City experiences certain adverse
financial circumstances. At the time of the fiscal crisis, the State
provided substantial financial assistance to the City, the federal
government provided the City with direct seasonal loans and guarantees on
the City's long-term debt, and the City's labor unions accepted deferrals
of wage increases and approved purchases of City bonds by the pension
funds. No assurance can be given that similar assistance would again be
made available if needed, particularly given the current budgetary
constraints faced by both the federal and State governments.
The City provides services usually undertaken by counties, school districts
or special districts in other large urban areas. State law requires the
City to allocate a large portion of its total budget to Board of
Education operations, and mandates the City to assume the local share of
public assistance and Medicaid costs. In the City's 1994-97 Financial
Plan, 25.4% of the City's budget is allocated to the Board of Education for
the 1994 fiscal year. The City had GAAP operating surpluses of $567
million in FY1987, $225 million in FY1988, $409 million in FY1989, $253
million in FY1990, $27 million in FY1991 , $570 million in FY1992 ,
and $412 million in FY 1993 before discretionary transfers and
expenditures. The City has experienced substantial financial difficulties
in the early 1990s, primarily related to the impact of the recession on the
local economy (reducing revenues from most major taxes and increasing
public assistance and Medicaid caseloads), rising health care costs for
City employees and for Medicaid, and the repeated deferral of the sale of
the New York Coliseum site to a private developer. In response, the City
implemented gap-closing programs in FY1990 and in FY1991 which enabled the
City to offset a potential $3.2 billion deficit in FY1991 and to achieve
modest GAAP surpluses in those years. The programs initially relied
primarily on actions of a non-recurring nature, but included substantial
property tax rate increases and a personal income tax surcharge imposed in
FY1991 and selected service cutbacks. Reductions in State aid, larger than
budgeted labor settlements and increased police expenditures added to the
adverse budgetary impact of the local recession, confronting the City with
a potential $3.3 billion imbalance during FY1992 budget negotiations. This
initial budget gap was closed by adoption of a budget providing for various
tax increases and significant service reductions. Aid to nonprofit
cultural institutions in the City was significantly reduced (as was State
aid to such institutions), including certain institutions that are obligors
of bonds that may be held by the funds. Beginning in 1992, economic
conditions in the City began to stabilize and was related to the
improvement in the national economy. Toward the end of 1992, employment
losses moderated and real Gross City Product increased.
The City's four year financial plan for FY1994-FY1997 (as modified
by the Mayor's mid-year modification on February 2, 1994 ), while
projecting a balanced budget for FY 1994 , recommended measures to
close a potential budget gap of $2.3 billion in FY1995 ; the
Mayor further identified potential budget gaps in later fiscal years
(rising to $3.3 billion in FY1997 ). The plan contained
numerous assumptions concerning factors which may impact the City's budget,
such as: that a modest employment recovery will begin by the end of
calendar year 1993 ; the willingness and ability of the federal and
State governments to provide financial assistance and to take other actions
contemplated by the City; the ultimate disposition of the City's wage
settlements (which could be determined through binding arbitration); no
further wage increases after the 1995 fiscal year; the performance of
the City economy (particularly to the extent tax collections and public
assistance caseloads are affected); and the extent actual earnings on
pension fund assets are consistent with the 9% return assumed in
determining the currently planned level of required City contributions. No
assurance can be given that the assumptions used by the City will be
realized. The Mayor's February Modification includes a gap-closing
program for fiscal year 1995 that incorporates an agency program of $1.408
billion, a fringe benefit and pension savings, an intergovernmental aid
package, a workforce reduction program and the assumption of a surplus from
fiscal year 1994. This plan also included a tax reduction program with most
of the financial impact affecting the later years of the 1994-97 Financial
Plan period. Furthermore, actions taken in recent fiscal years to avert
deficits may have reduced the City's flexibility in responding to future
budgetary imbalances, and have deferred certain expenditures to later
fiscal years.
The City projects that local revenues will provide approximately 69 %
of total revenues in FY1994 while Federal aid, including categorical
grants, will provide 12% and State aid, including unrestricted aid and
categorical grants, will provide 19 %. As a proportion of total
revenues, State aid remained relatively constant over the period from 1980
to 1990, while federal aid was sharply reduced (having provided nearly 20%
of total FY1980 revenues). The largest source of the City's revenues is
the real estate tax (approximately 24 % of total revenues for
FY1994 ), at rates levied by the City Council (subject to certain
State constitutional limits). In the event of a reduction in total
assessments, higher tax rates would be required to maintain the same amount
of tax revenue. The City derives the remainder of its tax revenues from a
variety of other economically sensitive local taxes (subject to
authorization by the Legislature), including: a local sales and
compensating use tax (dedicated primarily to MAC debt service) imposed in
addition to the State's tax; the personal income tax on City residents and
the earnings tax on non-residents; a general corporation tax; and a
financial corporation tax. High tax burdens in the City impose political
and economic constraints on the ability of the City to increase local tax
rates.
The City is the largest municipal debt issuer in the nation, and has more
than doubled its debt load since the end of FY1988 , in large measure
to rehabilitate its extensive, aging physical plant. The City's seasonal
borrowing needs increased significantly during FY1990 and FY1991, largely
due to delayed State aid payments, and totalled $1.4 billion in
FY1993 and 1.75 billion in FY 1994. The City's current $18.5
billion capital financing program (most of which would be used to reimburse
the City's general fund for capital expenditures the City expects to incur)
reflects major reductions in the City's 1994-97 capital plan, which
will reduce future debt service requirements, but may adversely affect the
condition of its deteriorating physical plant. No assurance can be given
that the credit markets will absorb the projected amounts of City
obligations, which are essential if the City is to meet its planned
operating and capital expenditures. Furthermore, the ability of the City
to obtain credit enhancement and to sell its bonds at favorable interest
rates is constrained by capacity limits established by the major bond
insurance companies and reinsurers to limit their credit exposure risks.
In November 1993, the voters approved a proposed charter whereby Staten
Island would secede from the City. Staten Island is one of five
counties/boroughs, comprising 4% of the City's population and 19% of its
land area . State law provides a complex mechanism for such
secession. The State Legislature is also considering establishment of a
similar secession mechanism for Queens.
OTHER LOCALITIES. The State provides substantial financial assistance to
its political subdivisions, totalling approximately 72% of General
Fund disbursements in the State's FY1992-93 and estimated to account for
73% of General Fund disbursements in the State's 1993-94 fiscal year ,
primarily for aid to elementary, secondary and higher education ( 47%
of local assistance) and Medicaid and income maintenance ( 38% ). The
Legislature has enacted substantial reductions from previously budgeted
levels of State aid since December 1990. To the extent the State is
constrained by its financial condition, State assistance to localities may
be further reduced, compounding the serious fiscal constraints already
experienced by many local governments. Localities also face anticipated
and potential problems resulting from pending litigation (including
challenges to local property tax assessments), judicial decisions and
socio-economic trends.
In 1992 , the total indebtedness of all localities in the State,
other than New York City, was approximately $15.7 billion. A small
portion (approximately $71.6 million) of this indebtedness
represented borrowing to finance budgetary deficits issued pursuant to
enabling State legislation (requiring budgetary review by the State
Comptroller. Seventeen localities had outstanding indebtedness for deficit
financing at the close of their fiscal year ending 1992 (compared to
17 in 1990 ). Subsequently, certain counties and other local
governments have encountered significant financial difficulties, including
the counties of Suffolk (whose long-term debt ratings were reduced below
investment grade by Standard & Poor's for several months during 1991),
Nassau, Monroe, and Westchester, and the City of Buffalo. The State has
imposed financial control on New York City from 1977 to 1986 and on the
City of Yonkers since 1984 under an appointed control board in response to
fiscal crises encountered by such municipalities. The Legislature imposed
certain limited fiscal restraints on Nassau and Suffolk Counties, and
authorized their issuance of deficit bonds to finance over several years
their respective 1992 operating deficits.
SPECIAL FACTORS AFFECTING PUERTO RICO
The following only highlights some of the more significant financial trends
and problems affecting the Commonwealth of Puerto Rico (the "Commonwealth"
or "Puerto Rico"), and is based on information drawn from official
statements and prospectuses relating to the securities offerings of Puerto
Rico, its agencies and instrumentalities, as available on the date of this
Statement of Additional Information. FMR has not independently verified any
of the information contained in such official statements, prospectuses and
other publicly available documents, but is not aware of any fact which
would render such information materially inaccurate.
The economy of Puerto Rico is closely linked with that of the United
States, and in fiscal 1992 trade with the United States accounted for
approximately 88% of Puerto Rico's exports and approximately 68% of its
imports. In this regard, in fiscal 1992 Puerto Rico experienced a
$2,940,300,000 positive adjusted merchandise trade balance. Since fiscal
1987 personal income, both aggregate and per capita, have increased
consistently each fiscal year. In fiscal 1992 aggregate personal income was
$22.7 billion and personal per capita income was $6,360. Gross domestic
product in fiscal 1989, 1990, 1991 and 1992 was $19,954,000, $21,619,000,
$22,857,000, and $23,620,000 respectively. For fiscal 1993, an increase in
gross domestic product of 2.9% over fiscal 1992 is forecasted. However,
actual growth in the Puerto Rico economy will depend on several factors
including the condition of the U.S. economy, the exchange rate for the U.S.
dollar, the price stability of oil imports, and interest rates. Due to
these factors there is no assurance that the economy of Puerto Rico will
continue to grow.
Puerto Rico has made marked improvements in fighting unemployment.
Unemployment is at a low level compared to that of the late 1970s, but it
still remains significantly above the United States average. Despite long
term improvements the unemployment rate rose from 15.2% to 16.5% from
fiscal 1991 to fiscal 1992. At the end of the third quarter of fiscal 1993
the unemployment rate in Puerto Rico stood at 17.3%. There is a possibility
that the unemployment rate will continue to increase.
The economy of Puerto Rico has undergone a transformation in the later half
of this century from one centered around agriculture, to one dominated by
the manufacturing and service industries. Manufacturing is the cornerstone
of Puerto Rico's economy, accounting for $13.2 billion or 38.7% of gross
domestic product in 1992. However, manufacturing has experienced a basic
change over the years as a result of the influx of higher wage, high
technology industries such as the pharmaceutical industry, electronics,
computers, micro-processors, scientific instruments and high technology
machinery. The service sector, which includes wholesale and retail trade,
finance and real estate, ranks second in its contribution to gross domestic
product and is the sector that employs the greatest number of people. In
fiscal 1992, the service sector generated $13.0 billion in gross domestic
product or 38.3% of the total and employed over 449,000 workers providing
46% of total employment. The government sector and tourism also contribute
to the island economy each accounting for $3.7 billion and $1.5 billion in
fiscal 1992, respectively.
Much of the development of the manufacturing sector of the economy of
Puerto Rico is attributable to federal and Commonwealth tax incentives,
most notably section 936 of the Internal Revenue Code of 1986, as amended
("Section 936") and the Commonwealth's Industrial Incentives Program.
Section 936 currently grants U.S. corporations that meet certain criteria
and elect its application a credit against their U.S. corporate income tax
on the portion of the tax attributable to (i) income derived from the
active conduct of a trade or business in Puerto Rico ("active income"), or
from the sale or exchange of substantially all the assets used in the
active conduct of such trade or business, and (ii) qualified possession
source investment income ("passive income"). The Industrial Incentives
Program, through the 1987 Industrial Incentives Act, grants corporations
engaged in certain qualified activities a fixed 90% exemption from
Commonwealth income and property taxes and a 60% exemption from municipal
license taxes.
On August 16, 1993, President Clinton signed a bill amending Section 936.
Under the amendments, U.S. corporations with operations in Puerto Rico can
elect to receive a federal income tax credit equal to: 40% of the credit
currently available, phased in over a five year period, starting at 60% of
the current credit, or a credit based on investment and wages. The
investment and wage credit would equal the sum of (i) 60% of qualified
compensation to employees, (ii) a specified percentage of depreciation
deductions with respect to tangible property located in Puerto Rico, and
(iii) a portion of income taxed paid to Puerto Rico, up to a 9% effective
tax rate, subject to certain requirements. It is not possible to determine
at this time whether the reductions in tax incentives for operations in
Puerto Rico will have a significant impact on the economy of Puerto Rico or
the time period in which such impact would arise.
PORTFOLIO TRANSACTIONS
All orders for the purchase or sale of portfolio securities are placed on
behalf of the funds by FMR (either directly or through affiliated
sub-advisers) pursuant to authority contained in each fund's management
contract. FMR is also responsible for the placement of transaction orders
for other investment companies and accounts for which it or its affiliates
act as investment adviser. Securities purchased and sold by the money
market fund generally will be traded on a net basis (i.e., without
commission). In selecting broker-dealers, subject to applicable
limitations of the federal securities laws, FMR will consider various
relevant factors, including, but not limited to, the size and type of the
transaction; the nature and character of the markets for the security to be
purchased or sold; the execution efficiency, settlement capability, and
financial condition of the broker-dealer firm; the broker-dealer's
execution services rendered on a continuing basis; and the reasonableness
of any commissions.
The funds may execute portfolio transactions with broker-dealers who
provide research and execution services to the funds or other accounts over
which FMR or its affiliates exercise investment discretion. Such services
may include advice concerning the value of securities; the advisability of
investing in, purchasing, or selling securities; the availability of
securities or the purchasers or sellers of securities; furnishing analyses
and reports concerning issuers, industries, securities, economic factors
and trends, portfolio strategy, and performance of accounts; and effecting
securities transactions and performing functions incidental thereto (such
as clearance and settlement). FMR maintains a listing of broker-dealers
who provide such services on a regular basis. However, as many
transactions on behalf of the money market fund are placed with
broker-dealers (including broker-dealers on the list) without regard to the
furnishing of such services, it is not possible to estimate the proportion
of such transactions directed to such broker-dealers solely because such
services were provided. The selection of such broker-dealers generally is
made by FMR (to the extent possible consistent with execution
considerations) based upon the quality of research and execution services
provided.
The receipt of research from broker-dealers that execute transactions on
behalf of the funds may be useful to FMR in rendering investment management
services to the funds or its other clients, and, conversely, such research
provided by broker-dealers who have executed transaction orders on behalf
of other FMR clients may be useful to FMR in carrying out its obligations
to the funds. The receipt of such research has not reduced FMR's normal
independent research activities; however, it enables FMR to avoid the
additional expenses that could be incurred if FMR tried to develop
comparable information through its own efforts.
Subject to applicable limitations of the federal securities laws,
broker-dealers may receive commissions for agency transactions that are in
excess of the amount of commissions charged by other broker-dealers in
recognition of their research and execution services. In order to cause
the funds to pay such higher commissions, FMR must determine in good faith
that such commissions are reasonable in relation to the value of the
brokerage and research services provided by such executing broker-dealers,
viewed in terms of a particular transaction or FMR's overall
responsibilities to the funds and its other clients. In reaching this
determination, FMR will not attempt to place a specific dollar value on the
brokerage and research services provided, or to determine what portion of
the compensation should be related to those services.
FMR is authorized to use research services provided by and to place
portfolio transactions with brokerage firms that have provided assistance
in the distribution of shares of the funds, or shares of other Fidelity
funds, to the extent permitted by law. FMR may use research services
provided by and place agency transactions with Fidelity Brokerage Services,
Inc. (FBSI), a member of the New York Stock Exchange and a
subsidiary of FMR Corp., if the commissions are fair and reasonable and
comparable to commissions charged by non-affiliated, qualified brokerage
firms for similar services.
Section 11(a) of the Securities Exchange Act of 1934 prohibits members of
national securities exchanges from executing exchange transactions for
accounts which they or their affiliates manage, except if certain
requirements are satisfied . Pursuant to such requirements , the
Board of Trustees has authorized FBSI to execute fund
portfolio transactions on national securities exchanges in accordance
with approved procedures and applicable SEC rules. For the fiscal
year ended January 31, 1994, and the fiscal periods May 1,
1992 to January 31, 1993, and May 1, 1991 to April 30, 1992, the funds paid
no brokerage commissions.
The Trustees periodically review FMR's performance of its responsibilities
in connection with the placement of portfolio transactions on behalf of the
funds and review the commissions paid by each fund over representative
periods of time to determine if they are reasonable in relation to the
benefits to each fund.
For fiscal 1994 and 1993, the high yield fund's portfolio turnover
rates were 50 % and 35% (annualized). For the period
December 29, 1993 to January 31, 1994, the intermediate fund's
annualized portfolio turnover rate was 0% .
From time to time the Trustees will review whether the recapture for the
benefit of the funds of some portion of the brokerage commissions or
similar fees paid by the funds on portfolio transactions is legally
permissible and advisable. Each fund seeks to recapture soliciting
broker-dealer fees on the tender of portfolio securities, but at present no
other recapture arrangements are in effect. The Trustees intend to
continue to review whether recapture opportunities are available and are
legally permissible and, if so, to determine in the exercise of their
business judgment whether it would be advisable for each fund to seek such
recapture.
Although the Trustees and officers of the funds are substantially the same
as those of other funds managed by FMR, investment decisions for each fund
are made independently from those of other funds managed by FMR or accounts
managed by FMR affiliates. It sometimes happens that the same security is
held in the portfolio of more than one of these funds or accounts.
Simultaneous transactions are inevitable when several funds are managed by
the same investment adviser, particularly when the same security is
suitable for the investment objective of more than one fund.
When two or more funds are simultaneously engaged in the purchase or sale
of the same security, the prices and amounts are allocated in accordance
with a formula considered by the officers of the funds involved to be
equitable to each fund. In some cases, this system could have a
detrimental effect on the price or value of the security as far as the
funds are concerned. In other cases, however, the ability of the funds to
participate in volume transactions will produce better executions and
prices for the funds. It is the current opinion of the Trustees that the
desirability of retaining FMR as investment adviser to the funds outweighs
any disadvantages that may be said to exist from exposure to simultaneous
transactions.
VALUATION OF PORTFOLIO SECURITIES
INTERMEDIATE AND HIGH YIELD FUNDS. Valuations of portfolio securities
furnished by the pricing service employed by the intermediate and high
yield funds are based upon a computerized matrix system or appraisals by
the pricing service, in each case in reliance upon information concerning
market transactions and quotations from recognized municipal securities
dealers. The methods used by the pricing service and the quality of
valuations so established are reviewed by officers of the fund and FSC
under the general supervision of the Board of Trustees. There are a number
of pricing services available, and the Trustees, or officers acting on
behalf of the Trustees, on the basis of on-going evaluation of these
services, may use other pricing services or discontinue the use of any
pricing service in whole or in part. Futures contracts and options are
valued in the basis of market quotations if available.
MONEY MARKET FUND. The fund values its investments on the basis of
amortized cost. This technique involves valuing an instrument at its cost
as adjusted for amortization of premium or accretion of discount rather
than its value based on current market quotations or appropriate
substitutes which reflect current market conditions. The amortized cost
value of an instrument may be higher or lower than the price the fund would
receive if it sold the instrument.
Valuing the fund's instruments on the basis of amortized cost and use of
the term "money market fund" are permitted by Rule 2a-7 under the 1940 Act.
The fund must adhere to certain conditions under Rule 2a-7.
The Board of Trustees of the trust oversees FMR's adherence to SEC
rules concerning money market funds, and has established procedures
designed to stabilize the fund's NAV at $1.00. At such intervals as they
deem appropriate, the Trustees consider the extent to which NAV calculated
by using market valuations would deviate from $1.00 per share. If the
Trustees believe that a deviation from the fund's amortized cost per share
may result in material dilution or other unfair results to shareholders,
the Trustees have agreed to take such corrective action, if any, as they
deem appropriate to eliminate or reduce, to the extent reasonably
practicable, the dilution or unfair results. Such corrective action could
include selling portfolio instruments prior to maturity to realize capital
gains or losses or to shorten average portfolio maturity; withholding
dividends; redeeming shares in kind; establishing NAV by using available
market quotations; and such other measures as the Trustees may deem
appropriate.
During periods of declining interest rates, the fund's yield based on
amortized cost may be higher than the yield based on market valuations.
Under these circumstances, a shareholder in the fund would be able to
obtain a somewhat higher yield than would result if the fund utilized
market valuations to determine its NAV. The converse would apply in a
period of rising interest rates.
PERFORMANCE
The funds may quote performance in various ways. All performance
information supplied by the funds in advertising is historical and is not
intended to indicate future returns. The intermediate and high yield
funds' share price, and all of the funds' yields and total returns
fluctuate in response to market conditions and other factors. The value of
the intermediate and high yield fund's shares when redeemed
may be more or less than their original cost.
YIELD CALCULATIONS. To compute the MONEY MARKET FUND'S yield for a period,
the net change in value of a hypothetical account containing one share
reflects the value of additional shares purchased with dividends from the
one original share and dividends declared on both the original share and
any additional shares. The net change is then divided by the value of the
account at the beginning of the period to obtain a base period return.
This base period return is annualized to obtain a current annualized yield.
The money market fund may also calculate an effective yield by compounding
the base period return over a one year period. In addition to the current
yield, the money market fund may quote yields in advertising based on any
historical seven-day period.
For the INTERMEDIATE AND HIGH YIELD FUNDS, yields used in advertising are
computed by dividing a fund's interest income for a given 30-day or one
month period, net of expenses, by the average number of shares entitled to
receive dividends during the period, dividing this figure by a fund's net
asset value per share at the end of the period, and annualizing the result
(assuming compounding of income) in order to arrive at an annual percentage
rate. Yields do not reflect the high yield fund's .50% redemption fee,
which applies to shares held less than 180 days. Income is calculated for
purposes of the intermediate and high yield funds' yield quotations in
accordance with standardized methods applicable to all stock and bond
funds. In general, interest income is reduced with respect to bonds
trading at a premium over their par value by subtracting a portion of the
premium from income on a daily basis, and is increased with respect to
bonds trading at a discount by adding a portion of the discount to daily
income. Capital gains and losses generally are excluded from the
calculation.
Income calculated for purposes of determining the intermediate and
high yield funds' yields differs from income as determined for other
accounting purposes. Because of the different accounting methods used, and
because of the compounding of income assumed in yield calculations, each
fund's yield may not equal its distribution rate, the income
paid to your account, or the income reported in each fund's financial
statement.
A fund's tax-equivalent yield is the rate an investor would have to earn
from a fully taxable investment after taxes to equal the fund's tax-free
yield. Tax-equivalent yields are calculated by dividing a fund's yield by
the result of one minus a stated federal or combined federal, state, and
city tax rate. (If only a portion of the fund's yield is tax-exempt, only
that portion is adjusted in the calculation.)
The tables below and on page 19 show the effect of a shareholder's
tax status on effective yield under federal and state income tax laws for
1994. They show the approximate yield a taxable security must provide at
various income brackets to produce after-tax yields equivalent to those of
hypothetical tax-exempt obligations yielding from 2.0% to 8.0%. Of course,
no assurance can be given that a fund will achieve any specific
tax-equivalent yield. While each fund invests principally in obligations
whose interest is exempt from federal income tax, other income received by
the funds may be taxable.
Use this table to find your approximate effective tax bracket on investment
income as a New York resident with triple taxes (federal, state, and New
York City) or double taxes (federal and state) for 1994.
1994 TAX RATES

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Combine d
New York

State an d Combined New
Marginal Federa l Federal York State,
Taxable Income Income Marginal Effective City and
Federal

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Single Return* Joint Return* Tax Bracket Tax Rate Tax Bracket Tax Bracket

</TABLE>

New York
New York State and
State City

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
$22,751 -$25,000 $38,001 - $45,000 28% 7.59% 11.99% 33.47% 36.63%

25,001 - 55,100 45,001 - 91,850 28% 7.59% 11.99% 33.47% 36.64%

55,101 - 60,000 91,851 - 108,000 31% 7.59% 12.05% 36.24% 39.28%

60,001 -115,000 108,001 - 140,000 31% 7.59% 12.05% 36.24% 39.32%

115,001 -250,000 140,001 - 250,000 36% 7.59% 12.05% 40.86% 43.71%

250,001 + above 250,001 + above 39.6% 7.59% 12.05% 44.19% 46.88%

</TABLE>

*Taxable income (gross income after all exemptions, adjustments, and
deductions) based on 1994 tax rates.
Having determined your effective tax bracket, use the appropriate table
below to determine the tax-equivalent yield for a given tax-free yield.
NEW YORK CITY RESIDENTS - TRIPLE TAXES - 1994
If your effective combined federal, state, and New York City personal
income tax rate in 1994 is:
36.63% 36.64% 39.28% 39.32% 43.71% 46.88%

<TABLE>
<CAPTION>
<S> <C>
To match these

tax-free yields: Your taxable investment would have to earn the following yield:

</TABLE>

2% 3.16% 3.16% 3.29% 3.30% 3.55% 3.77%

3% 4.73% 4.73% 4.94% 4.94% 5.33% 5.65%

4% 6.31% 6.31% 6.59% 6.59% 7.11% 7.53%

5% 7.89% 7.89% 8.23% 8.24% 8.88% 9.41%

6% 9.47% 9.47% 9.88% 9.89% 10.66% 11.30%

7% 11.05% 11.05% 11.53% 11.54% 12.44% 13.18%

NEW YORK STATE RESIDENTS (OUTSIDE NYC) - DOUBLE TAXES - 1994
If your effective combined federal and state personal income tax rate in
1994 is:
33.47% 36.24% 40.86% 44.19%

<TABLE>
<CAPTION>
<S> <C>
To match these

tax-free yields: Your taxable investment would have to earn the following yield:

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
2% 3.01% 3.14% 3.38% 3.58%

3% 4.51% 4.71% 5.07% 5.38%

4% 6.01% 6.27% 6.76% 7.17%

5% 7.52% 7.84% 8.45% 8.96%

6% 9.02% 9.41% 10.15% 10.75%

7% 10.52% 10.98% 11.84% 12.54%

</TABLE>

The money market fund may invest a portion of its assets in
obligations that are subject to state or federal income taxes. When a fund
invests in these obligations, its tax-equivalent yields will be lower. In
the tables above, tax-equivalent yields are calculated assuming investments
are 100% federally and state tax-free.
Yield information may be useful in reviewing the funds' performance and in
providing a basis for comparison with other investment alternatives.
However, each fund's yield fluctuates, unlike investments that pay a fixed
interest rate over a stated period of time. When comparing investment
alternatives, investors should also note the quality and maturity of the
portfolio securities of the respective investment companies that they have
chosen to consider.
Investors should recognize that in periods of declining interest rates, a
fund's yield will tend to be somewhat higher than prevailing market rates,
and in periods of rising interest rates, a fund's yield will tend to be
somewhat lower. Also, when interest rates are falling, the inflow of net
new money to a fund from the continuous sale of its shares will likely be
invested in instruments producing lower yields than the balance of the
fund's holdings, thereby reducing the fund's current yield. In periods of
rising interest rates, the opposite can be expected to occur.
TOTAL RETURN CALCULATIONS. Total returns quoted in advertising reflect all
aspects of a fund's returns, including the effect of reinvesting dividends
and capital gain distributions (if any), and any change in the fund's net
asset value per share (NAV) over the period. Average annual total returns
are calculated by determining the growth or decline in value of a
hypothetical historical investment in a fund over a stated period, and then
calculating the annually compounded percentage rate that would have
produced the same result if the rate of growth or decline in value had been
constant over the period. For example, a cumulative total return of 100%
over ten years would produce an average annual total return of 7.18%, which
is the steady annual rate of return that would equal 100% growth on a
compounded basis in ten years. While average annual total returns are a
convenient means of comparing investment alternatives, investors should
realize that a fund's performance is not constant over time, but changes
from year to year, and that average annual total returns represent averaged
figures as opposed to the actual year-to-year performance of the fund.
In addition to average annual returns, a fund may quote unaveraged or
cumulative total returns reflecting the simple change in value of an
investment over a stated period. Average annual and cumulative total
returns may be quoted as a percentage or as a dollar amount, and may be
calculated for a single investment, a series of investments, or a series of
redemptions, over any time period. Total returns may be quoted on a
before-tax or after-tax basis. Total returns may be broken down into
their components of income and capital (including capital gains and changes
in share price) in order to illustrate the relationship of these factors
and their contributions to total return. An example of this type of
illustration is given below. Total returns may be quoted on a
before-tax or after-tax basis. Total returns, yields, and other
performance information may be quoted numerically or in a table, graph, or
similar illustration, and may omit or include the effect of each fund's
$5.00 account closeout fee and, with respect to the high yield fund, the
.50% redemption fee applicable to shares held less than 180 days, or other
charges for special transactions or services. Omitting fees and charges
will cause the funds' total return figures to be higher.
NET ASSET VALUE (INTERMEDIATE AND HIGH YIELD FUNDS ONLY) . Charts
and graphs using a fund's net asset values, adjusted net asset
values, and benchmark indices may be used to exhibit performance. An
adjusted NAV includes any distributions paid by the fund and reflects all
elements of its return. Unless otherwise indicated, the fund's adjusted
NAVs are not adjusted for sales charges, if any.
HISTORICAL RESULTS. The following table shows the funds' total returns for
the periods ended January 31, 1994. Figures include the effect of each
fund's $5.00 account closeout fee based on an average size account.
Figures for the high yield fund do not include the effect of the fund's
.50% redemption fee, applicable to shares held less than 180 days.

<TABLE>
<CAPTION>
<S> <C> <C>
Average Annual Total Returns * Cumulative Total Returns *

</TABLE>

One Life of One Life of

Year Fund* * Year Fund* *

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Money Market Fund 1.98% 3.58% 1.98% 15.08%

Intermediate Fund n/a n/a n/a 1.23%

High Yield Fund 13.11% 11.08% 13.11% 52.19%

</TABLE>

*If FMR had not reimbursed certain fund expenses during these periods,
the funds' total returns would have been lower.
* *The funds commenced operations on February 3, 1990 (money market
and high yield funds), and December 29, 1993 (intermediate fund).
The money market fund's seven-day yield as of January 31, 1994 was
1.90 %, with a corresponding tax-equivalent yield of 3.38 %.
The intermediate high yield fund s' 30-day yield s as of
January 31, 1994 were 3.87% and 4.93 %, respectively,
with corresponding tax-equivalent yields of 6.88% and 8.76%,
respectively. The tax-equivalent yields are based on the 1994
combined federal, New York State, and New York City income tax rate of
43.71 %. These figures do not reflect the funds' $5.00 account
closeout fees.
The following tables show the income and capital elements of each fund's
total return from their respective commencement of operations to
January 31, 1994. In addition, the tables compare each fund's
return to the record of the Standard & Poor's 500 Composite Stock Price
Index (S&P 500), the Dow Jones Industrial Average (DJIA), and the cost
of living (measured by the Consumer Price Index, or CPI) over the same
periods . The S&P 500 and DJIA comparisons are provided to show
how each fund's total return compared to the return of a broad average of
common stocks and a narrower set of stocks of major industrial companies,
respectively . Of course, since the funds invest in money market and
fixed-income securities, common stocks represent a different type of
investment from the funds. Common stocks generally offer greater potential
growth than the funds, but generally experience greater price volatility,
which means a greater potential for loss. In addition, common stocks
generally provide lower income than a money market or bond fund investment
such as the funds. The S&P 500 and DJIA are based on the prices of
unmanaged groups of stocks and, unlike the funds' returns, their returns do
not include the effect of paying brokerage commissions or other costs of
investing. During the periods quoted, interest rates and bond prices
fluctuated widely; thus, the figures should not be considered
representative of the dividend income or capital gain or loss that could be
realized from investments in the funds today.
MONEY MARKET FUND. During the period February 3, 1990 (commencement of
operations) through January 31, 1994, a hypothetical $10,000 investment in
the fund would have grown to $11,509 , assuming all distributions
were reinvested.
SPARTAN NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO INDICES

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Value of Value of Value of

Initial Reinvested Reinvested Cost

Period $10,000 Dividend Capital Gain Total of

Ended Investment Distributions Distributions Value S&P DJIA Living**
500

</TABLE>

1/31/91* $10,000 $ 562 $ 0 $10,562 $10,774 $10,925 $10,565

1/31/92 10,000 999 0 10,999 13,221 13,294 10,840

1/31/93 10,000 1,284 0 11,284 14,623 14,061 11,193

1/31/94 10,000 1,509 0 11,509 16,505 17,381 11,476

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Value of Value of Value of

Initial Reinvested Reinvested Cost

Period $10,000 Dividend Capital Gain Total of

Ended Investment Distributions Distributions Value S&P DJIA Living**
500

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
1/31/94 * $10,090 $33 $0 $10,123 $10,243 $10,512 $10,027

</TABLE>

* From December 29, 1993 (commencement of operations)
** From month-end closest to initial investment date
Explanatory Notes: With an initial investment of $10,000 made on December
29, 1993, the net amount invested in fund shares was $10,000. The cost of
the initial investment ($10,000), together with the aggregate cost of
reinvested dividends for the period covered (their cash value at the time
they were reinvested), amounted to $10,033 . If distributions had
not been reinvested, the amount of distributions earned from the fund over
time would have been smaller, and cash payments (dividends) for the period
would have amounted to $33 . The fund did not distribute any capital
gains during the period. If FMR had not reimbursed certain fund expenses,
the fund's total returns would have been lower. The figures in the table
do not include the effect of the fund's $5.00 account closeout fee.
HIGH YIELD FUND. During the period February 3, 1990 (commencement of
operations) through January 31, 1994, a hypothetical $10,000 investment in
the fund would have grown to $ 15,220 , assuming all distributions
were reinvested .
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO INDICES

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Value of Value of Value of

Initial Reinvested Reinvested Cost

Period $10,000 Dividend Capital Gain Total of

Ended Investment Distributions Distributions Value S&P DJIA Living**
500

</TABLE>

1/31/91* $ 9,990 $ 751 $ 0 $10,741 $10,774 $10,92 $10,565

1/31/92 10,460 1,552 23 12,035 13,221 13,294 10,840

1/31/93 10,890 2,406 159 13,454 14,623 14,061 11,193

1/31/94 11,380 3,310 530 15,220 16,505 17,381 11,476

</TABLE>

* From February 3, 1990 (commencement of operations)
** From month-end closest to initial investment date
Explanatory Notes: With an initial investment of $10,000 made on February
3, 1990, the net amount invested in fund shares was $10,000. The cost of
the initial investment ($10,000), together with the aggregate cost of
reinvested distributions for the period covered (their cash value at the
time they were reinvested), amounted to $ 13,585 . If distributions
had not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period would
have amounted to $ 2,678 for income dividends and $ 410 for
capital gain distributions. If FMR had not reimbursed certain fund
expenses, the fund's total returns would have been lower. The figures in
the table do not include the effect of the fund's $5.00 account closeout
fee or the .50% redemption fee applicable to shares held less than 180
days.
The funds may be compared in advertising to Certificates of Deposit
(CDs), the Bank Rate Monitor National Index, an average of the quoted rates
for 100 leading banks and thrifts in ten U.S. cities chosen to represent
the ten largest Consumer Metropolitan Statistical Areas, three-month Euro
Deposit rates according to Reuters, and other investments issued by banks.
The Euro Deposit rates according to Reuters are quoted by foreign banks
rated "A" or better. The funds differ from bank investments in several
respects. A fund may offer greater liquidity and higher potential returns
than CDs; but unlike CDs, a fund is not FDIC-insured and its share price,
yield, and return will fluctuate.
A fund's performance may be compared to the performance of other mutual
funds in general, or to the performance of particular types of mutual
funds. These comparisons may be expressed as mutual fund rankings
prepared by Lipper Analytical Services, Inc. (Lipper), an independent
service located in Summit, New Jersey that monitors the performance of
mutual funds. Lipper generally ranks funds on the basis of total return,
assuming reinvestment of distributions, but does not take sales charges or
redemption fees into consideration, and is prepared without regard to tax
consequences. Lipper may also rank funds based on yield. In addition to
the mutual fund rankings, a fund's performance may be compared to mutual
fund performance indices prepared by Lipper.
From time to time, a fund's performance may also be compared to other
mutual funds tracked by financial or business publications and periodicals.
For example, the fund may quote Morningstar, Inc. in its advertising
materials. Morningstar, Inc. is a mutual fund rating service that rates
mutual funds on the basis of risk-adjusted performance. Rankings that
compare the performance of Fidelity funds to one another in appropriate
categories over specific periods of time may also be quoted in advertising.
Fidelity may provide information designed to help individuals understand
their investment goals and explore various financial strategies. For
example, Fidelity's FundMatchsm Program includes a workbook describing
general principles of investing, such as asset allocation, diversification,
risk tolerance, and goal setting; a questionnaire designed to help create a
personal financial profile; and an action plan offering investment
alternatives. Materials may also include discussions of Fidelity's three
asset allocation funds and other Fidelity funds, products, and services.
Ibbotson Associates of Chicago, Illinois (Ibbotson) provides historical
returns of the capital markets in the United States, including common
stocks, small capitalization stocks, long-term corporate bonds,
intermediate-term government bonds, long-term government bonds, Treasury
bills, the U.S. rate of inflation (based on the CPI), and combinations of
various capital markets. The performance of these capital markets is based
on the returns of different indices.
Fidelity funds may use the performance of these capital markets in order to
demonstrate general risk-versus-reward investment scenarios. Performance
comparisons may also include the value of a hypothetical investment in any
of these capital markets. The risks associated with the security types in
any capital market may or may not correspond directly to those of the
funds. Ibbotson calculates total returns in the same method as the funds.
The funds may also compare performance to that of other compilations or
indices that may be developed and made available in the future.
A fund may compare its performance or the performance of securities in
which it may invest to averages published by IBC USA (Publications), Inc.
of Ashland, Massachusetts. These averages assume reinvestment of
distributions. The IBC/Donoghue's MONEY FUND AVERAGES(trademark)/All
Tax-Free, which is reported in the MONEY FUND REPORT(registered trademark),
covers over 345 tax-free money market funds. The Bond Fund Report
AverageS(registered trademark)/All Tax-Free, which is reported in the BOND
FUND REPORT(registered trademark), covers over 372 tax-free bond
funds. When evaluating comparisons to money market funds, investors should
consider the relevant differences in investment objectives and policies.
Specifically, money market funds invest in short-term, high-quality
instruments and seek to maintain a stable $1.00 share price. The
intermediate and high yield funds, however, invest in longer-term
instruments and their share prices change daily in response to a variety of
factors.
A fund may compare and contrast in advertising the relative advantages of
investing in a mutual fund versus an individual municipal bond. Unlike
tax-free mutual funds, individual municipal bonds offer a stated rate of
interest and, if held to maturity, repayment of principal. Although some
individual municipal bonds might offer a higher return, they do not offer
the reduced risk of a mutual fund that invests in many different
securities. The initial investment requirements and sales charges of many
tax-free mutual funds are lower than the purchase cost of individual
municipal bonds, which are generally issued in $5,000 denominations and are
subject to direct brokerage costs.
In advertising materials, Fidelity may reference or discuss its products
and services, which may include: other Fidelity funds; retirement
investing; brokerage products and services; the effects of periodic
investment plans and dollar cost averaging; saving for college; charitable
giving; and the Fidelity credit card. In addition, Fidelity may quote
financial or business publications and periodicals, including model
portfolios or allocations, as they relate to fund management, investment
philosophy, and investment techniques. Fidelity may also reprint, and use
as advertising and sales literature, articles from Fidelity Focus, a
quarterly magazine provided free of charge to Fidelity fund shareholders.
A fund may present its fund number, Quotron(trademark) number, and CUSIP
number, and discuss or quote its current portfolio manager.
The intermediate and high yield funds may advertise examples of the effects
of periodic investment plans, including the principle of dollar cost
averaging. In such a program, an investor invests a fixed dollar amount in
a fund at periodic intervals, thereby purchasing fewer shares when prices
are high and more shares when prices are low. While such a strategy does
not assure a profit or guard against loss in a declining market, the
investor's average cost per share can be lower than if fixed numbers of
shares are purchased at the same intervals. In evaluating such a plan,
investors should consider their ability to continue purchasing shares
during periods of low price levels.
As of January 31, 1994, FMR advised 43 tax-free funds with a total
value of over $ 30 billion in assets, and 20 Spartan
funds with approximately $ 20 billion in assets. According to the
Investment Company Institute, over the past 10 years, assets in tax-exempt
funds increased from $45 billion in 1984 to approximately $358 billion at
the end of 1993. The funds may reference the growth and variety of money
market mutual funds and the adviser's innovation and participation in the
industry.
ADDITIONAL PURCHASE AND REDEMPTION INFORMATION
Each fund is open for business and its net asset value per share (NAV) is
calculated each day the New York Stock Exchange (NYSE) is open for trading.
The NYSE has designated the following holiday closings for 1994:
Washington's Birthday (observed), Good Friday, Memorial Day (observed),
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day
(observed). Although FMR expects the same holiday schedule , with
the addition of New Year's Day, to be observed in the future, the NYSE may
modify its holiday schedule at any time. Also, the money market fund will
be closed for wire purchases and redemptions on days when the Federal
Reserve Wire System is closed.
FSC normally calculates the money market fund's NAV twice each business
day, once at 12:00 noon Eastern time and once as of the close of the NYSE
(normally 4:00 p.m. Eastern time). FSC normally determines the
intermediate and high yield funds' NAVs as of the close of the
NYSE (normally 4:00 p.m. Eastern time). However, NAV may be calculated
earlier if trading on the NYSE is restricted or as permitted by the SEC.
To the extent that portfolio securities are traded in other markets on days
when the NYSE is closed, a fund's NAV may be affected on days when
investors do not have access to the fund to purchase or redeem shares.
If the Trustees determine that existing conditions make cash payments
undesirable, redemption payments may be made in whole or in part in
securities or other property, valued for this purpose as they are valued in
computing a fund's NAV. Shareholders receiving securities or other
property on redemption may realize a gain or loss for tax purposes, and
will incur any costs of sale, as well as the associated inconveniences.
Pursuant to Rule 11a-3 under the Investment Company Act of 1940 (the
1940 Act) , each fund is required to give shareholders at least 60 days'
notice prior to terminating or modifying its exchange privilege. Under the
Rule, the 60-day notification requirement may be waived if (i) the only
effect of a modification would be to reduce or eliminate an administrative
fee, redemption fee, or deferred sales charge ordinarily payable at the
time of an exchange, or (ii) a fund suspends the redemption of shares to be
exchanged as permitted under the 1940 Act or the rules and regulations
thereunder , or the fund to be acquired suspends the sale of its shares
because it is unable to invest amounts effectively in accordance with its
investment objective and policies.
In the Prospectus, each fund has notified shareholders that it reserves the
right at any time, without prior notice, to refuse exchange purchases by
any person or group if, in FMR's judgment, the fund would be unable
to invest effectively in accordance with its investment objective and
policies, or would otherwise potentially be adversely affected.
DISTRIBUTIONS AND TAXES
DISTRIBUTIONS. If you request to have distributions mailed to you and the
U.S. Postal Service cannot deliver your checks, or if your checks remain
uncashed for six months, Fidelity may reinvest your distributions at the
then-current NAV. All subsequent distributions will then be reinvested
until you provide Fidelity with alternate instructions.
DIVIDENDS. To the extent that each fund's income is derived from federally
tax-exempt interest, the daily dividends declared by each fund also are
federally tax-exempt. The funds will send each shareholder a notice in
January describing the tax status of dividends and capital gain
distributions (if any) for the prior year.
Shareholders are required to report tax-exempt income on their federal tax
returns. Shareholders who earn other income, such as social security
benefits, may be subject to federal income tax on up to one half of such
benefits to the extent that their income, including tax-exempt income,
exceeds certain base amounts.
The funds purchase municipal obligations based on opinions of bond counsel
regarding the federal income tax status of the obligations. These opinions
generally will be based upon covenants by the issuers regarding continuing
compliance with federal tax requirements. If the issuer of an obligation
fails to comply with its covenants at any time, interest on the obligations
could become federally taxable retroactive to the date the obligation was
issued.
As a result of the Tax Reform Act of 1986, interest on certain "private
activity" securities (referred to as "qualified bonds" in the Internal
Revenue Code) is subject to the federal alternative minimum tax (AMT),
although the interest continues to be excludable from gross income for
other tax purposes. Interest from private activity securities will be
considered tax-exempt for purposes of the funds' policies of investing so
that at least 80% of their income is free from federal income tax. Interest
from private activity securities is a tax-preference item for the purposes
of determining whether a taxpayer is subject to the AMT and the amount of
AMT to be paid, if any. Private activity securities issued after August 7,
1986 to benefit a private or industrial user or to finance a private
facility are affected by this rule.
Corporate investors should note that a tax preference item for purposes of
the corporate AMT is 75% of the amount by which adjusted current earnings
(which includes tax-exempt interest) exceeds alternative minimum taxable
income of the corporation.
If a shareholder receives an exempt-interest dividend and sells shares at a
loss after holding them for a period of six months or less, the loss will
be disallowed to the extent of the amount of exempt-interest dividend.
CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by the funds on
the sale of securities and distributed to shareholders are federally
taxable as long-term capital gains, regardless of the length of time that
shareholders have held their shares. If a shareholder receives a long-term
capital gain distribution on shares of a fund and such shares are held six
months or less and are sold at a loss, the portion of the loss equal to the
amount of the long-term capital gain distribution will be considered a
long-term loss for tax purposes.
A portion of the gain on bonds purchased at a discount after April 30, 1993
and short-term capital gains distributed by the funds are federally taxable
to shareholders as dividends, not as capital gains. Distributions from
short-term capital gains do not qualify for the dividends-received
deduction. Dividend distributions resulting from a recharacterization of
gain from the sale of bonds purchased at a discount after April 30, 1993
are not considered income for purposes of the funds' policy of
investing so that at least 80% of their income is free from federal income
tax. The money market fund may distribute any net realized short-term
capital gains once a year or more often as necessary to maintain its net
asset value at $1.00 a share.
TAX STATUS OF THE FUNDS. Each fund has qualified and intends to continue
to qualify each year as a "regulated investment company" for tax purposes
so that it will not be liable for federal tax on income and capital gains
distributed to shareholders. In order to qualify as a regulated investment
company and avoid being subject to federal income or excise taxes at the
fund level, each fund intends to distribute substantially all of its net
investment income and net realized capital gains (if any) within each
calendar year as well as on a fiscal year basis. Each fund intends to
comply with other tax rules applicable to regulated investment companies,
including a requirement that capital gains from the sale of securities held
less than three months constitute less than 30% of the fund's gross income
for each fiscal year. Gains from some futures contracts and options are
included in this 30% calculation, which may limit the intermediate
and high yield funds ' investments in such instruments.
Fidelity New York Municipal Trust and Fidelity New York Municipal Trust
II treat each of their respective funds as a separate entity for tax
purposes.
As of January 31, 1994, the money market fund had a capital
loss carryover of approximately $101,800, of which $29,600,
$21,000, and $51,200 will expire on January 31, 2000, January 31, 2001, and
January 31, 2002, respectively.
To the extent that capital loss carryovers are used to offset any future
capital gains, it is unlikely that the gains so offset will be distributed
to shareholders since any such distributions may be taxable to shareholders
as ordinary income.
NEW YORK TAX MATTERS. As long as a fund continues to qualify as a
regulated investment company under the federal Code, it will not incur New
York income or franchise tax liability on income and capital gains
distributed to shareholders. New York personal income tax law also
provides that exempt-interest dividends paid by a regulated investment
company, or series thereof, from interest on obligations which are exempt
from tax under New York law are excludable from gross income.
OTHER TAX INFORMATION. The information above is only a summary of some of
the tax considerations generally affecting the funds and their
shareholders, and no attempt has been made to discuss individual tax
consequences. Investors should consult their tax advisers to determine
whether the funds are suitable to their particular tax situations.
FMR
FMR is a wholly owned subsidiary of FMR Corp., a parent company organized
in 1972. At present, the principal operating activities of FMR Corp. are
those conducted by three of its divisions as follows: FSC, which is the
transfer and shareholder servicing agent for certain of the funds advised
by FMR; Fidelity Investments Institutional Operations Company, which
performs shareholder servicing functions for certain institutional
customers; and Fidelity Investments Retail Marketing Company, which
provides marketing services to various companies within the Fidelity
organization.
Several affiliates of FMR are also engaged in the investment advisory
business. Fidelity Management Trust Company provides trustee, investment
advisory, and administrative services to retirement plans and corporate
employee benefit accounts. Fidelity Management & Research (U.K.) Inc.
(FMR U.K.) and Fidelity Management & Research (Far East) Inc. (FMR Far
East), both wholly owned subsidiaries of FMR formed in 1986, supply
investment research, and may supply portfolio management services, to FMR
in connection with certain funds advised by FMR. Analysts employed by FMR,
FMR U.K., and FMR Far East research and visit thousands of domestic and
foreign companies each year. FMR Texas, a wholly owned subsidiary of FMR
formed in 1989, supplies fund management and research services in
connection with certain money market funds advised by FMR.
TRUSTEES AND OFFICERS
The Trustees and executive officers of the trust are listed below. Except
as indicated, each individual has held the office shown or other offices in
the same company for the last five years. Trustees and officers elected
or appointed to Fidelity New York Municipal Trust prior to the money market
fund's conversion from a series of Fidelity New York Municipal Trust to a
series of Fidelity New York Municipal Trust II served Fidelity New York
Municipal Trust in identical capacities. All persons named as Trustees
also serve in similar capacities for other funds advised by FMR. Unless
otherwise noted, the business address of each Trustee and officer is 82
Devonshire Street, Boston, Massachusetts 02109, which is also the address
of FMR. Those Trustees who are "interested persons" (as defined in the
1940 Act) by virtue of their affiliation with either the trust or FMR are
indicated by an asterisk (*).
*EDWARD C. JOHNSON 3d, Trustee and President, is Chairman, Chief Executive
Officer and a Director of FMR Corp.; a Director and Chairman of the Board
and of the Executive Committee of FMR; Chairman and a Director of FMR Texas
Inc. (1989), Fidelity Management & Research (U.K.) Inc., and Fidelity
Management & Research (Far East) Inc.
*J. GARY BURKHEAD, Trustee and Senior Vice President, is President of FMR;
and President and a Director of FMR Texas Inc. (1989), Fidelity Management
& Research (U.K.) Inc., and Fidelity Management & Research (Far
East) Inc.
RALPH F. COX, 200 Rivercrest Drive, Fort Worth, TX, Trustee (1991), is a
consultant to Western Mining Corporation (1994). Prior to February 1994, he
was President of Greenhill Petroleum Corporation (petroleum exploration
and production, 1990). Until March 1990, Mr. Cox was President and
Chief Operating Officer of Union Pacific Resources Company (exploration and
production). He is a Director of Bonneville Pacific Corporation
(independent power, 1989) Sanifill Corporation (non-hazardous waste,
1993) and CH2M Hill Companies (engineering). In addition, he served on
the Board of Directors of the Norton Company (manufacturer of industrial
devices, 1983-1990) and continues to serve on the Board of Directors of the
Texas State Chamber of Commerce, and is a member of advisory boards of
Texas A&M University and the University of Texas at Austin.
PHYLLIS BURKE DAVIS, P.O. Box 264, Bridgehampton, NY, Trustee
(1992). Prior to her retirement in September 1991, Mrs. Davis was the
Senior Vice President of Corporate Affairs of Avon Products, Inc. She is
currently a Director of BellSouth Corporation (telecommunications), Eaton
Corporation (manufacturing, 1991), and the TJX Companies, Inc. (retail
stores, 1990), and previously served as a Director of Hallmark Cards, Inc.
(1985-1991) and Nabisco Brands, Inc. In addition, she serves as a Director
of the New York City Chapter of the National Multiple Sclerosis Society,
and is a member of the Advisory Council of the International Executive
Service Corps. and the President's Advisory Council of The University of
Vermont School of Business Administration (1988).
RICHARD J. FLYNN, 77 Fiske Hill, Sturbridge, MA, Trustee, is a financial
consultant. Prior to September 1986, Mr. Flynn was Vice Chairman and a
Director of the Norton Company (manufacturer of industrial devices). He is
currently a Director of Mechanics Bank and a Trustee of College of the Holy
Cross and Old Sturbridge Village, Inc.
E. BRADLEY JONES, 3881-2 Lander Road, Chagrin Falls, OH, Trustee (1990).
Prior to his retirement in 1984, Mr. Jones was Chairman and Chief Executive
Officer of LTV Steel Company. Prior to May 1990, he was Director of
National City Corporation (a bank holding company) and National City Bank
of Cleveland. He is a Director of TRW Inc. (original equipment and
replacement products), Cleveland-Cliffs Inc (mining), NACCO Industries,
Inc. (mining and marketing), Consolidated Rail Corporation, Birmingham
Steel Corporation , Hyster-Yale Materials Handling, Inc. (1989), and
RPM, Inc. (manufacturer of chemical products, 1990). In addition, he
serves as a Trustee of First Union Real Estate Investments, Chairman of the
Board of Trustees and a member of the Executive Committee of the Cleveland
Clinic Foundation, a Trustee and a member of the Executive Committee of
University School (Cleveland), and a Trustee of Cleveland Clinic Florida.
DONALD J. KIRK, 680 Steamboat Road, Apartment #1-North, Greenwich, CT,
Trustee, is a Professor at Columbia University Graduate School of Business
and a financial consultant. Prior to 1987, he was Chairman of the
Financial Accounting Standards Board. Mr. Kirk is a Director of General Re
Corporation (reinsurance) and Valuation Research Corp. (appraisals and
valuations, 1993). In addition, he serves as Vice Chairman of the Board of
Directors of the National Arts Stabilization Fund and Vice Chairman of the
Board of Trustees of the Greenwhich Hospital Association .
*PETER S. LYNCH, Trustee (1990) is Vice Chairman of FMR (1992). Prior to
his retirement on May 31, 1990, he was a Director of FMR (1989) and
Executive Vice President of FMR (a position he held until March 31, 1991);
Vice President of Fidelity Magellan Fund and FMR Growth Group Leader; and
Managing Director of FMR Corp. Mr. Lynch was also Vice President of
Fidelity Investments Corporate Services (1991-1992). He is a Director of
W.R. Grace & Co. (chemicals, 1989) and Morrison Knudsen Corporation
(engineering and construction ). In addition, he serves as a Trustee
of Boston College, Massachusetts Eye & Ear Infirmary, Historic
Deerfield (1989) and Society for the Preservation of New England
Antiquities, and as an Overseer of the Museum of Fine Arts of Boston
(1990).
GERALD C. McDONOUGH, 135 Aspenwood Drive, Cleveland, OH, Trustee (1989), is
Chairman of G.M. Management Group (strategic advisory services). Prior to
his retirement in July 1988, he was Chairman and Chief Executive Officer of
Leaseway Transportation Corp. (physical distribution services). Mr.
McDonough is a Director of ACME-Cleveland Corp. (metal working,
telecommunications and electronic products), Brush-Wellman Inc. (metal
refining), York International Corp. (air conditioning and refrigeration,
1989), Commercial Intertech Corp. (water treatment equipment, 1992), and
Associated Estates Realty Corporation (a real estate investment trust,
1993).
EDWARD H. MALONE, 5601 Turtle Bay Drive #2104, Naples, FL, Trustee .
Prior to his retirement in 1985, Mr. Malone was Chairman, General Electric
Investment Corporation and a Vice President of General Electric Company.
He is a Director of Allegheny Power Systems, Inc. (electric utility),
General Re Corporation (reinsurance) and Mattel Inc. (toy manufacturer).
He is also a Trustee of Rensselaer Polytechnic Institute and of Corporate
Property Investors and a member of the Advisory Boards of Butler Capital
Corporation Funds and Warburg, Pincus Partnership Funds.
MARVIN L. MANN, 55 Railroad Avenue, Greenwich, CT, Trustee (1993) is
Chairman of the Board, President, and Chief Executive Officer of Lexmark
International, Inc. (office machines, 1991). Prior to 1991, he held the
positions of Vice President of International Business Machines Corporation
("IBM") and President and General Manager of various IBM divisions and
subsidiaries. Mr. Mann is a Director of M.A. Hanna Company (chemicals,
1993) and Infomart (marketing services, 1991), a Trammell Crow Co. In
addition, he serves as the Campaign Vice Chairman of the Tri-State United
Way (1993) and is a member of the University of Alabama President's Cabinet
(1990).
THOMAS R. WILLIAMS, 21st Floor, 191 Peachtree Street, N.E., Atlanta, GA,
Trustee , is President of The Wales Group, Inc. (management and
financial advisory services). Prior to retiring in 1987, Mr. Williams
served as Chairman of the Board of First Wachovia Corporation (bank holding
company), and Chairman and Chief Executive Officer of The First National
Bank of Atlanta and First Atlanta Corporation (bank holding company). He
is currently a Director of BellSouth Corporation (telecommunications),
ConAgra, Inc. (agricultural products), Fisher Business Systems, Inc.
(computer software ), Georgia Power Company (electric utility),
Gerber Alley & Associates, Inc. (computer software), National Life
Insurance Company of Vermont, American Software, Inc. (1989), and
AppleSouth, Inc. (restaurants, 1992).
GARY L. FRENCH, Treasurer (1991). Prior to becoming Treasurer of the
Fidelity funds, Mr. French was Senior Vice President, Fund Accounting -
Fidelity Accounting & Custody Services Co. (1991); Vice President, Fund
Accounting - Fidelity Accounting & Custody Services Co. (1990); and
Senior Vice President, Chief Financial and Operations Officer - Huntington
Advisers, Inc. (1985-1990).
ARTHUR S. LORING, Secretary, is Senior Vice President and General Counsel
of FMR, Vice President - Legal of FMR Corp., and Vice President and Clerk
of FDC.
JANICE BRADBURN is Vice President of the money market fund (1992) and other
funds managed by FMR.
THOMAS D. MAHER, Assistant Vice President (1990), is Assistant Vice
President of Fidelity's money market funds and Vice President and Associate
General Counsel of FMR Texas Inc. (1990).
Under a retirement program that became effective on November 1, 1989,
Trustees, upon reaching age 72, become eligible to participate in a defined
benefit retirement program under which they receive payments during their
lifetime from the funds based on their basic trustee fees and length of
service. Currently, Messrs. Robert L. Johnson, William R. Spaulding,
Bertram H. Witham, and David L. Yunich participate in the program.
As of January 31, 1994, the Trustees and officers of each fund owned, in
the aggregate, less than 1% of the outstanding shares of each fund. Also,
as of that date, Bennett J. and Margaret E. Goodman, 25 Cohawney Rd.,
Scarsdale, NY, owned approximately 10.51% of the total outstanding shares
of Spartan New York Intermediate Municipal Portfolio.
MANAGEMENT CONTRACTS
The funds employ FMR to furnish investment advisory and other
services. Under its management contract with each fund, FMR acts as
investment adviser and, subject to the supervision of the Board of
Trustees, directs the investments of each fund in accordance with its
investment objective, policies, and limitations. FMR also provides the
funds with all necessary office facilities and personnel for servicing the
funds' investments, and compensates all officers of the trusts, all
Trustees who are "interested persons" of the trusts or of FMR, and
all personnel of the trust or FMR performing services relating to research,
statistical, and investment activities.
In addition, FMR or its affiliates, subject to the supervision of the Board
of Trustees, provide the management and administrative services necessary
for the operation of each fund . These services include providing
facilities for maintaining each fund's organization; supervising relations
with custodians, transfer and pricing agents, accountants, underwriters,
and other persons dealing with the funds; preparing all general shareholder
communications and conducting shareholder relations; maintaining the funds'
records and the registration of the funds' shares under federal and state
law; developing management and shareholder services for the funds; and
furnishing reports, evaluations, and analyses on a variety of subjects to
the Board of Trustees.
FMR is responsible for the payment of all expenses of the funds with
certain exceptions. Specific expenses payable by FMR include, without
limitation, the fees and expenses of registering and qualifying the funds
and their shares for distribution under federal and state securities laws;
expenses of typesetting for printing the Prospectus and Statement of
Additional Information; custodian charges; audit and legal expenses;
insurance expenses ; association membership dues; and the expenses of
mailing reports to shareholders, shareholder meetings, and proxy
solicitations. FMR also provides for transfer agent and dividend
disbursing services and portfolio and general accounting record
maintenance through FSC.
FMR pays all other expenses of the funds with the following exceptions:
fees and expenses of the Trustees who are not "interested persons" of the
trust or FMR (the non-interested Trustees); interest on borrowings; taxes;
brokerage commissions (if any); and such nonrecurring expenses as may
arise, including costs of any litigation to which the funds may be a party,
and any obligation they may have to indemnify the officers and
Trustees with respect to litigation.
FMR is the money market fund's manager pursuant to a management contract
dated March 22, 1994. The contract was approved by Fidelity New York
Municipal Trust II as sole shareholder of the fund on March 22, 1994, in
conjunction with an Agreement and Plan of Conversion to convert the fund
from a series of a Massachusetts Business trust to a series of a Delaware
trust. The Agreement and Plan of Conversion was approved by public
shareholders' of the fund on January 19, 1994. Besides reflecting the
fund's redomiciling, the March 22, 1994 contract is identical to the fund's
prior management contract dated January 18, 1990 with FMR, which was
approved by shareholders on September 19, 1990.
FMR is the high yield funds ' manager pursuant to management
contracts dated January 18, 1990, which was approved by shareholders on
September 19, 1990.
FMR is the intermediate fund's manager pursuant to a management contract
dated December 16, 1993, which was approved by FMR, then the sole
shareholder, on December 16, 1993.
For the services of FMR under the management contracts, the funds pay FMR a
monthly management fee at the annual rate of .50% (money market fund) and
.55% (intermediate and high yield funds), of average net assets throughout
the month. FMR reduces its fee by an amount equal to the fees and expenses
of the non-interested Trustees.
FMR may, from time to time, voluntarily reimburse all or a portion of a
fund's operating expenses (exclusive of interest, taxes, brokerage
commissions, and extraordinary expenses). The following tables outline
expense limitations (as a percentage of the funds' average net assets)
in effect from commencement of operations to the date of this
Statement of Additional Information.
MONEY MARKET FUND:
From To Expense Limitation

April 1 , 1992 - - . 50 %

February 1, 1992 March 31, 1992 .45%

November 1, 1991 January 31, 1992 .40%

August 1, 1991 October 31, 1991 .35%

July 1, 1991 July 31, 1991 .30%

May 1, 1991 June 30, 1991 .25%

March 1, 1991 April 30, 1991 .20%

December 1, 1990 February 28, 1991 .15%

November 1, 1990 November 30, 1990 .10%

September 1, 1990 October 31, 1990 .05%

February 3, 1990 August 31, 1990 .00%

Fiscal Management Fees Amount of

Period Ended Before Reimbursement Reimbursement

1/31/94 $2,229,920 $ 0

1/31/93 1,714,772 0

4/30/92 2,320,501 610,755

INTERMEDIATE FUND:
From To Expense Limitation

December 29, 1993 - - .00%

Fiscal Management Fees Amount of

Period Ended Before Reimbursement Reimbursement

1/31/94* $2,191 $ 2,191

* From commencement of operations (December 29, 1993)
HIGH YIELD FUND:
From To Expense Limitation

March 1, 1993 - - .55%

September 1, 1992 February 28, 1993 .50%

May 1, 1992 August 31, 1992 .45%

November 1, 1991 April 30, 1992 .40%

March 1, 1991 October 31, 1991 .35%

February 1, 1991 February 28, 1991 .30%

October 1, 1990 January 31, 1991 .20%

August 1, 1990 September 30, 1990 .10%

February 3, 1990 July 31, 1990 .00%

Fiscal Management Fees Amount of

Period Ended Before Reimbursement Reimbursement

1/31/94 $2,349,334 $ 14,626

1/31/93 $1,380,063 179,546

4/30/92 1,267,172 395,876

To defray shareholder service costs, FMR or its affiliates also collect the
funds' $5.00 exchange fees, $5.00 account closeout fees, $5.00 fee for wire
purchases and redemptions, and (money market fund only) $2.00 checkwriting
charge. The high yield fund's .50% redemption fee is retained by the
fund. Shareholder transaction fees and charges collected for the fiscal
periods ended January 31, 1994, January 31, 1993, and April 30, 1992 are as
follows:
MONEY MARKET FUND:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Fiscal Period Exchange Fees Account Closeout Fees Wire Fees Checkwriting Charges

</TABLE>

1994 $ 9,555 $ 1,473 $ 1,575 $ 6,709

1993 13,210 1,414 3,095 10,754

1992 19,518 1,399 4,625 17,174

INTERMEDIATE FUND:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Fiscal Period Exchange Fees Account Closeout Fees Wire Fees Checkwriting Charges

</TABLE>

1994* $ 15 $ 0 $ 5 $ 0

* From commencement of operations (December 29, 1993)
HIGH YIELD FUND:
Fiscal Period Exchange Fees Account Closeout Fees Wire Fees

1994 $6,745 $1,090 $ 990

1993 6,385 740 1,280

1992 6,045 625 1,230

SUB-ADVISER. With respect to the money market fund, FMR has entered into a
sub-advisory agreement with FMR Texas pursuant to which FMR Texas has
primary responsibility for providing fund investment management services to
the fund. Under the sub-advisory agreement, FMR pays FMR Texas a fee equal
to 50% of the management fee payable to FMR under its current management
contract with the fund. The fees paid to FMR Texas are not reduced by any
voluntary or mandatory expense reimbursements that may be in effect from
time to time. During the fiscal periods ended January 31, 1994, January
31, 1993, and April 30, 1992, FMR paid FMR Texas fees of
$1,114,960 , $857,386, and $1,160,251, respectively, under the
sub-advisory agreement.
DISTRIBUTION AND SERVICE PLANS
Each fund has adopted a distribution and service plan (the plans) under
Rule 12b-1 of the 1940 Act (the rule). The rule provides in substance that
a mutual fund may not engage directly or indirectly in financing any
activity that is primarily intended to result in the sale of shares of the
fund except pursuant to a plan adopted by the fund under the rule. Each
trust's Board of Trustees has adopted the plan to allow the funds and
FMR to incur certain expenses that might be considered to constitute
indirect payment by the funds of distribution expenses. Under the plan, if
the payment by a fund to FMR of management fees should be deemed to be
indirect financing by the fund of the distribution of its shares, such
payment is authorized by the plans.
The p lans specifically recognize that FMR, either directly or
through FDC, may use its management fee revenue, past profits, or other
resources, without limitation, to pay promotional and administrative
expenses in connection with the offer and sale of the funds' shares .
In addition, the p lans provide that FMR may use its resources,
including its management fee revenues, to make payments to third parties
that provide assistance in selling the funds' shares or to third parties,
including banks, that render shareholder support services. The Trustees
have not authorized third party payments to date.
Each fund's plan has been approved by the Trustees. As required by
the rule, the Trustees carefully considered all pertinent factors relating
to the implementation of the plans prior to their approval, and have
determined that there is a reasonable likelihood that the plans will
benefit the funds and their shareholders. In particular, the Trustees
noted that the plans do not authorize payments by the funds other than
those made to FMR under its management contracts with the funds. To the
extent that the plans give FMR and FDC greater flexibility in connection
with the distribution of shares of the funds, additional sales of the
funds' shares may result. Additionally, certain shareholder support
services may be provided more effectively under the plans by local entities
with whom shareholders have other relationships. The plans were approved
by the funds' shareholders on September 19, 1990.
The Glass-Steagall Act generally prohibits federally and state chartered or
supervised banks from engaging in the business of underwriting, selling, or
distributing securities. Although the scope of this prohibition under the
Glass-Steagall Act has not been clearly defined by the courts or
appropriate regulatory agencies, FDC believes that the Glass-Steagall Act
should not preclude a bank from performing shareholder support services, or
servicing and recordkeeping functions. FDC intends to engage banks only to
perform such functions. However, changes in federal or state statutes and
regulations pertaining to the permissible activities of banks and their
affiliates or subsidiaries, as well as further judicial or administrative
decisions or interpretations, could prevent a bank from continuing to
perform all or a part of the contemplated services. If a bank were
prohibited from so acting, the Trustees would consider what actions, if
any, would be necessary to continue to provide efficient and effective
shareholder services. In such event, changes in the operation of the funds
might occur, including possible termination of any automatic investment or
redemption or other services then provided by the bank. It is not expected
that shareholders would suffer any adverse financial consequences as a
result of any of these occurrences. The funds may execute portfolio
transactions with and purchase securities issued by depository institutions
that receive payments under the plans. No preference will be shown in the
selection of investments for the instruments of such depository
institutions. In addition, state securities laws on this issue may differ
from the interpretations of federal law expressed herein, and banks and
other financial institutions may be required to register as dealers
pursuant to state law.
INTEREST OF FMR AFFILIATES
United Missouri is each fund's custodian and transfer agent. United
Missouri has entered into sub-contracts with FSC, an affiliate of FMR,
under the terms of which FSC performs the processing activities associated
with providing transfer agent and shareholder servicing functions for each
fund. United Missouri has additional sub-contracts with FSC, pursuant to
which FSC performs the calculations necessary to determine each fund's net
asset value per share and dividends and maintains the funds'
accounting records. United Missouri is entitled to reimbursement for fees
paid to FSC from FMR, which must bear these costs pursuant to its
management contract with each fund.
Each fund has a distribution agreement with FDC, a Massachusetts
corporation organized on July 18, 1960. FDC is a broker-dealer registered
under the Securities Exchange Act of 1934 and is a member of the National
Association of Securities Dealers, Inc. The distribution agreement calls
for FDC to use all reasonable efforts, consistent with its other business,
to secure purchasers for shares of each fund, which are continuously
offered at net asset value. Promotional and administrative expenses in
connection with the offer and sale of shares are paid by FMR.
DESCRIPTION OF THE TRUSTS
TRUSTS' ORGANIZATION. Fidelity New York Municipal Trust (the Massachusetts
Trust), is an open-end management investment company organized as a
Massachusetts business trust on April 25, 1983. On January 8, 1990, the
trust's name was changed from Fidelity New York Tax-Free Fund to Fidelity
New York Municipal Trust. Currently, there are four funds of the trust:
Fidelity New York Tax-Free Insured Portfolio, Fidelity New York Tax-Free
High Yield Portfolio, Spartan New York Intermediate Municipal Portfolio,
and Spartan New York Municipal High Yield Portfolio. The Massachusetts
trust's Declaration of Trust permits the Trustees to create additional
funds.
Fidelity New York Municipal Trust II (the Delaware Trust) is an open-end
management investment company organized as a Delaware business trust on
June 20, 1991. Currently, there are two funds of the Delaware trust:
Fidelity New York Tax-Free Money Market Portfolio and Spartan New York
Municipal Money Market Portfolio. Fidelity New York Tax-Free Money Market
Portfolio entered into an agreement to acquire all of the assets of
Fidelity New York Tax-Free Money Market Portfolio, a series of Fidelity New
York Municipal Trust (a Massachusetts business trust) on December 30, 1991.
Spartan New York Municipal Money Market Portfolio entered into an
agreement to acquire all of the assets of Spartan New York Municipal Money
Market Portfolio, a series of Fidelity New York Municipal Trust (a
Massachusetts business trust) on March 22, 1994. The Delaware trust's
Trust Instrument permits the Trustees to create additional funds.
In the event that FMR ceases to be the investment adviser to a trust or
any of its funds , the right of th e trust or the fund to
use the identifying names "Fidelity" and "Spartan" may be withdrawn.
There is a remote possibility that one fund might become liable for any
misstatement in its prospectus or statement of additional information about
another fund.
The assets of each trust received for the issue or sale of shares of
each of its funds and all income, earnings, profits, and proceeds
thereof, subject only to the rights of creditors, are especially allocated
to such fund, and constitute the underlying assets of such fund. The
underlying assets of each fund are segregated on the books of account, and
are to be charged with the liabilities with respect to such fund and with a
share of the general expenses of their respective trusts . Expenses
with respect to the trusts are to be allocated in proportion to the
asset value of their respective funds, except where allocations of
direct expense can otherwise be fairly made. The officers of the
trusts , subject to the general supervision of the Boards of
Trustees, have the power to determine which expenses are allocable to a
given fund, or which are general or allocable to all of the funds of a
certain trust . In the event of the dissolution or liquidation of a
trust , shareholders of each fund of that trust are entitled to
receive as a class the underlying assets of such fund available for
distribution.
SHAREHOLDER AND TRUSTEE LIABILITY - MASSACHUSETTS TRUST. The
Massachusetts trust is an entity of the type commonly known as
"Massachusetts business trust." Under Massachusetts law, shareholders of
such a trust may, under certain circumstances, be held personally liable
for the obligations of the trust. The Declaration of Trust provides that
the Massachusetts trust shall not have any claim against shareholders
except for the payment of the purchase price of shares and requires that
each agreement, obligation, or instrument entered into or executed by the
Massachusetts trust and its assets. The Declaration of Trust provides for
indemnification out of each fund's property of any shareholders held
personally liable for the obligations of the fund. The Declaration of Trust
also provides that each fund shall, upon request, assume the defense of any
claim made against any shareholder for any act or obligation of the fund
and satisfy any judgment thereon. Thus, the risk of a shareholder incurring
financial loss on account of shareholder liability is limited to
circumstances in which the fund itself would be unable to meet its
obligations. FMR believes that, in view of the above, the risk of personal
liability to shareholders is remote.
The Declaration of Trust further provides that the Trustees, if they
have exercised reasonable care, will not be liable for any neglect or
wrongdoing, but nothing in the Declaration of Trust protects Trustees
against any liability to which they would otherwise be subject by reason of
willful misfeasance, bad faith, gross negligence, or reckless disregard of
the duties involved in the conduct of their office.
SHAREHOLDER AND TRUSTEE LIABILITY - DELAWARE TRUST. The Delaware trust
is a business trust organized under Delaware law. Delaware law provides
that shareholders shall be entitled to the same limitations of personal
liability extended to stockholders of private corporations for profit. The
courts of some states, however, may decline to apply Delaware law on this
point. The Trust Instrument contains an express disclaimer of shareholder
liability for the debts, liabilities, obligations, and expenses of the
Delaware trust and requires that a disclaimer be given in each contract
entered into or executed by the Delaware trust or its Trustees. The Trust
Instrument provides for indemnification out of each fund's property of any
shareholder or former shareholder held personally liable for the
obligations of the fund. The Trust Instrument also provides that each fund
shall, upon request, assume the defense of any claim made against any
shareholder for any act or obligation of the fund and satisfy any judgment
thereon. Thus, the risk of a shareholder incurring financial loss on
account of shareholder liability is limited to circumstances in which
Delaware law does not apply, no contractual limitation of liability was in
effect, and the fund is unable to meet its obligations. FMR believes that,
in view of the above, the risk of personal liability to shareholders is
extremely remote.
The Trust Instrument further provides that the Trustees shall not be
personally liable to any person other than the Delaware trust or its
shareholders; moreover, the Trustees shall not be liable for any conduct
whatsoever, provided that Trustees are not protected against any liability
to which they would otherwise be subject by reason of willful misfeasance,
bad faith, gross negligence, or reckless disregard of the duties involved
in the conduct of their office.
VOTING RIGHTS - BOTH TRUSTS. Each fund's capital consists of shares of
beneficial interest. As a shareholder of the intermediate and high
yield funds , you receive one vote for each dollar of net asset value
per share you own. The shares have no preemptive or conversion rights;
voting and dividend rights, the right of redemption, and the privilege
of exchange are described in the Prospectus. Shares are fully paid and
nonassessable, except as set forth under the respective "Shareholder
and Trustee Liability" headings above. Shareholders representing
10% or more of the trust or one of its funds may, as set forth in
the Declaration of Trust or Trust Instrument , call meetings of the
trust or fund for any purpose related to the trust or fund, as the
case may be, including, in the case of a meeting of the entire trust, the
purpose of voting on removal of one or more Trustees.
A trust or any fund may be terminated upon the sale of its assets to (or,
in the case of the Delaware Trust and its funds, merger with) another
open-end management investment company or series thereof, or upon
liquidation and distribution of its assets. Generally, such terminations
must be approved by vote of the holders of a majority of the outstanding
shares of the trust or the fund (for the Delaware trust), or by a vote of
the holders of a majority of the trust or the fund , as determined by
the current value of each shareholder's investment in the fund or trust
(for the Massachusetts trust). If not so terminated or reorganized, the
trusts and their funds will continue indefinitely.
Under the Trust Instrument, the Trustees may, without shareholder vote,
cause the Delaware trust to merge or consolidate into one or more trusts,
partnerships, or corporations, so long as the surviving entity is an
open-end management investment company that will succeed to or assume the
Delaware trust registration statement, or cause the Delaware trust to be
incorporated under Delaware law. The Massachusetts trust may also invest
all of its assets in another investment company.
CUSTODIAN. United Missouri Bank, N.A., 1010 Grand Avenue, Kansas City,
Missouri is custodian of the assets of the funds. The custodian is
responsible for the safekeeping of the funds' assets and the appointment of
subcustodian banks and clearing agencies. The custodian takes no part in
determining the investment policies of the funds or in deciding which
securities are purchased or sold by the funds. The funds may, however,
invest in obligations of the custodian and may purchase securities from or
sell securities to the custodian.
FMR, its officers and directors, its affiliated companies, and the
trusts' Trustees may from time to time have transactions with
various banks, including banks serving as custodians for certain of the
funds advised by FMR. Transactions that have occurred to date include
mortgages and personal and general business loans. In the judgment of FMR,
the terms and conditions of those transactions were not influenced by
existing or potential custodial or other fund relationships.
AUDITOR. Price Waterhouse, 160 Federal Street, Boston, Massachusetts,
serves as each trust's independent accountant. The auditor examines
financial statements for the funds and provides other audit, tax, and
related services.
FINANCIAL STATEMENTS
The funds' Annual Report for the fiscal year ended January
31, 1994 is a separate report supplied with this Statement of Additional
Information and is incorporated herein by reference.
APPENDIX
DOLLAR-WEIGHTED AVERAGE MATURITY is derived by multiplying the value of
each investment by the number of days remaining to its maturity, adding
these calculations, and then dividing the total by the value of the fund's
portfolio. An obligation's maturity is typically determined on a stated
final maturity basis, although there are some exceptions to this rule.
For example, if it is probable that the issuer of an instrument will take
advantage of a maturity-shortening device, such as a call, refunding, or
redemption provision, the date on which the instrument will probably be
called, refunded, or redeemed may be considered to be its maturity date.
When a municipal bond issuer has committed to call an issue of bonds and
has established an independent escrow account that is sufficient to, and is
pledged to, refund that issue, the number of days to maturity for the
prerefunded bond is considered to be the number of days to the announced
call date of the bonds.
The descriptions that follow are examples of eligible ratings for the
intermediate and high yield funds. A fund may, however, consider ratings
for other types of investments and the ratings assigned by other ratings
organizations when determining the eligibility of a particular investment.
DESCRIPTION OF MOODY'S INVESTORS SERVICE, INC.'S RATINGS OF STATE AND
MUNICIPAL NOTES:
Moody's ratings for state and municipal and other short-term obligations
will be designated Moody's Investment Grade (MIG, or VMIG for variable rate
obligations). This distinction is in recognition of the difference between
short-term credit risk and long-term credit risk. Factors affecting the
liquidity of the borrower and short-term cyclical elements are critical in
short-term ratings, while other factors of major importance in bond risk,
long-term secular trends for example, may be less important over the short
run. Symbols used will be as follows:
MIG-1/VMIG-1 - This designation denotes best quality. There is present
strong protection by established cash flows, superior liquidity support or
demonstrated broad-based access to the market for refinancing.
MIG-2/VMIG-2 - This designation denotes high quality. Margins of
protection are ample although not so large as in the preceding group.
MIG-3/VMIG-3 - This designation denotes favorable quality, with all
security elements accounted for but there is lacking the undeniable
strength of the preceding grades. Liquidity and cash flow protection may
be narrow and market access for refinancing is likely to be less well
established.
MIG-4/VMIG-4 - This designation denotes adequate quality protection
commonly regarded as required of an investment security is present and,
although not distinctly or predominantly speculative, there is specific
risk.
DESCRIPTION OF STANDARD & POOR'S CORPORATION'S RATINGS OF STATE AND
MUNICIPAL NOTES:
SP-1 - Very strong or strong capacity to pay principal and interest. Those
issues determined to possess overwhelming safety characteristics will be
given a plus (+) designation.
SP-2 - Satisfactory capacity to pay principal and interest.
SP-3 - Speculative capacity to pay principal and interest.
DESCRIPTION OF MOODY'S INVESTORS SERVICE, INC.'S MUNICIPAL BOND RATINGS:
AAA - Bonds rated Aaa are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as "gilt
edge." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective
elements are likely to change, such changes as can be visualized are most
unlikely to impair the fundamentally strong position of such issues.
AA - Bonds rated Aa are judged to be of high quality by all standards.
Together with Aaa group they comprise what are generally known as
high-grade bonds. They are rated lower than the best bonds because margins
of protection may not be as large as in Aaa securities or fluctuation of
protective elements may be of greater amplitude or there may be other
elements present which make the long-term risks appear somewhat larger than
in Aaa securities.
A - Bonds rated A possess many favorable investment attributes and are to
be considered as upper-medium-grade obligations. Factors giving security
to principal and interest are considered adequate but elements may be
present which suggest a susceptibility to impairment sometime in the
future.
BAA - Bonds rated Baa are considered as medium-grade obligations, i.e.,
they are neither highly protected nor poorly secured. Interest payments
and principal security appear adequate for the present but certain
protective elements may be lacking or may be characteristically unreliable
over any great length of time. Such bonds lack outstanding investment
characteristics and in fact have speculative characteristics as well.
BA - Bonds rated Ba are judged to have speculative elements. Their future
cannot be considered as well assured. Often the protection of interest and
principal payments may be very moderate and thereby not well safeguarded
during both good and bad times in the future. Uncertainty of position
characterizes bonds in this class.
B - Bonds rated B generally lack characteristics of a desirable
investment. Assurance of interest and principal payments of or maintenance
of other terms of the contract over any long period of time may be
small.
CAA - Bonds rated Caa are of poor standing. Such issues may be in default
or there may be present elements of danger with respect to principle and
interest.
CA- Bonds rated Ca represent obligations which are speculative in a high
degree. Such issues are often in default or have other marked
short-comings.
C - Bonds rated C are the lowest-rated class of bonds and issues so rated
can be regarded as having extremely poor prospects of ever attaining any
real investment standing.
Those bonds in the Aa, A, Baa, Ba, and B groups which Moody's believes
possess the strongest investment attributes are designated by the symbols
Aa1, A1, Baa1, Ba1, and B1.
DESCRIPTION OF STANDARD & POOR'S CORPORATION'S MUNICIPAL BOND RATINGS:
AAA - Debt rated AAA has the highest rating assigned by Standard &
Poor's to a debt obligation. Capacity to pay interest and repay principal
is extremely strong.
AA - Debt rated AA has a very strong capacity to pay interest and repay
principal and differs from the highest-rated debt issues only in small
degree.
A - Debt rated A has a strong capacity to pay interest and repay principal,
although it is somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions.
BBB - Debt rated BBB is regarded as having an adequate capacity to pay
interest and repay principal. Whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for debt in this category than in higher-rated
categories.
BB - Debt rated BB has less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties or
exposure to adverse business, financial, or economic conditions which could
lead to inadequate capacity to meet timely interest and principal payments.
B - Debt rated B has a greater vulnerability to default but currently has
the capacity to meet interest payments and principal repayments. Adverse
business, financial, or economic conditions will likely impair capacity or
willingness to pay interest and repay principal. The B rating category is
also used for debt subordinated to senior debt that is assigned an actual
or implied BB or BB- rating.
CCC - Deb t rated CCC has a currently identifiable vulnerability to
default, and is dependent upon favorable business, financial, and economic
conditions to meet timely payment of interest and repayment of principal.
In the event of adverse business, financial, or economic conditions, it is
not likely to have the capacity to pay interest and repay principal.
CC- Debt rated CC is typically applied to debt subordinated to senior debt
which is assigned an actual or implied CCC debt rating.
C - The rating C is typically applied to debt subordinated to senior debt
debt which is assigned on actual or implied CCC-debt rating. The C rating
may be used to cover a situation where a bankruptcy petition has been filed
but debt service payments are continued.
CI - The rating CI is reserved for income bonds on which no interest is
being paid.
D- Debt rated D is in payment default. The D rating category is used when
interest payments or principal payments are not made on the date due even
if the applicable grace period has not expired, unless S&P believes
that such payments will be made during such grace period. The D rating
will also be used upon the filing of a bankruptcy petition if debt service
payments are jeopardized.
The ratings from AA to CCC may be modified by the addition of a plus or
minus to show relative standing within the major rating categories.
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a)(1) Financial Statements for Fidelity New York Tax-Free Insured
Portfolio and Fidelity New York Tax- Free High Yield Portfolio for the
fiscal year ended January 31, 1994 are incorporated herein by ref erence
to the funds' Statement of Additional Information and are filed herein as
Exhibit 24(a)(1).
(2) Financial Statements for Spartan New York Intermediate
Municipal Portfolio and Spartan New York Municipal High Yield Portfolio
for the fiscal year ended January 31, 1994 are incorporated herein by
reference to the funds' Statement of Additional Information and are filed
herein as Exhibit 24(a)(2).
(b) Exhibits
(1) Form of Amended and Restated Declaration of Trust dated March 17,
1994 is filed herein as Exhibit 1.
(2) By-Laws of the Trust are incorporated herein by reference to Exhibit
2 to the initial Registration Statement.
(3) Not applicable.
(4) Not applicable.
(5) (a) Management Contract between Spartan New York Intermediate
Municipal Portfolio and Fidelity Management & Research Company, dated
December 17, 1993 is filed herein as Exhibit 5(a).
(b) Management Contract between Fidelity New York Tax-Free High Yield
Portfolio and Fidelity Management & Research Company, dated January 1,
1989 is incorporated herein by reference to Exhibit 5(b) to Post-Effective
Amendment No. 13.
(c) Management Contract between Fidelity New York Tax-Free Insured
Portfolio and Fidelity Management & Research Company, dated January 1,
1989 is incorporated herein by reference to Exhibit 5(c) to Post-Effective
Amendment No. 13.
(d) Management Contract between Spartan New York Municipal High Yield
Portfolio and Fidelity Management & Research Company, dated January 18,
1990 is incorporated herein by reference to Exhibit 5(e) to Post-Effective
Amendment No. 18.
(6) (a) General Distribution Agreement between Fidelity New York Tax-Free
Insured Portfolio and Fidelity Distributors Corporation dated April 1, 1987
are incorporated herein by reference to Exhibit 6(a)2 to Post-Effective
Amendment No. 10.
(b) General Distribution Agreement between Fidelity New York Tax-Free
High Yield Portfolio, and Fidelity Distributors Corporation dated April 1,
1987 are incorporated herein by reference to Exhibit 6(b)3 to
Post-Effective Amendment No. 10.
(c) Amendment to General Distribution Agreements between Fidelity New
York Tax-Free Insured Portfolio and Fidelity Distributors Corporation and
Fidelity New York Tax-Free High Yield Portfolio and Fidelity Distributors
Corporation, dated January 1, 1988 are incorporated herein by reference to
Exhibit 6(c) to Post-Effective Amendment No. 11.
(d) General Distribution Agreement between Spartan New York Municipal
Money Market Portfolio and Fidelity Distributors Corporation, dated January
18, 1990 is incorporated herein by reference to Exhibit 6(d) to
Post-Effective Amendment No. 18.
(e) General Distribution Agreement between Spartan New York Municipal
High Yield Portfolio and Fidelity Distributors Corporation, dated January
18, 1990 is incorporated herein by reference to Exhibit 6(e) to
Post-Effective Amendment No. 18.
(f) General Distribution Agreement between Spartan New York Intermediate
Municipal Portfolio and Fidelity Distributors Corporation, dated December
17, 1993 is filed herein as Exhibit 6(f).
(7) Retirement Plan for Non-Interested Person Trustees, Directors or
General Partners, effective November 1, 1989, is incorporated herein by
reference to Exhibit 7 to Post-Effective Amendment No. 23.
(8) (a) Custodian Agreement between Fidelity New York Municipal Trust and
United Missouri Bank, N.A., dated July 18, 1991 is incorporated herein by
reference to Exhibit 8(a) to Post-Effective Amendment No. 24.
(9) (a) Transfer Agent Agreement between Fidelity New York Municipal Trust
and United Missouri Bank, N.A., dated November 14, 1991 is incorporated
herein by reference to Exhibit 9(a) to Post-Effective Amendment No. 24.
(b) Appointment of Sub-Transfer Agent and Schedule A for Fidelity New
York Tax-Free High Yield Portfolio, dated November 7, 1991, is incorporated
herein by reference to Exhibit 9(b) to Post-Effective Amendment No. 24.
(c) Appointment of Sub-Transfer Agent and Schedule A for Fidelity New
York Tax-Free Insured Portfolio, dated November 7, 1991, is incorporated
herein by reference to Exhibit 9(c) to Post-Effective Amendment No. 24.
(d) Service Agreement between Fidelity New York Municipal Trust and
United Missouri Bank, N.A., dated November 14, 1991, is incorporated herein
by reference to Exhibit 9(d) to Post-Effective Amendment No. 24.
(e) Appointment of Sub-Servicing Agent and Schedules B and C for Fidelity
New York Tax-Free High Yield Portfolio, dated November 7, 1991, is
incorporated herein by reference to Exhibit 9(e) to Post-Effective
Amendment No. 24.
(f) Appointment of Sub-Servicing Agent and Schedules B and C for Fidelity
New York Tax-Free Insured Portfolio, dated November 7, 1991, is
incorporated herein by reference to Exhibit 9(f) to Post-Effective
Amendment No. 24.
(g) Appointment to Sub-Servicing Agent and Schedules B and C for Spartan
New York Municipal Money Market Portfolio, dated November 14, 1991, is
incorporated herein by reference to Exhibit 9(g) to Post-Effective
Amendment No. 24.
(h) Appointment of Sub-Transfer Agent and Schedule A for Spartan New York
Municipal Money Market Portfolio, dated November 14, 1991, is incorporated
herein by reference to Exhibit 9(h) to Post-Effective Amendment No. 24.
(i) Appointment of Sub-Servicing Agent and Schedules B and C for Spartan
New York Municipal High Yield Portfolio, dated November 7, 1991, is
incorporated herein by reference to Exhibit 9(i) to Post-Effective
Amendment No. 24.
(j) Appointment of Sub-Transfer Agent and Schedule A for Spartan New York
Municipal High Yield Portfolio, dated November 7, 1991, is incorporated
herein by reference to Exhibit 9(j) to Post-Effective Amendment No. 24.
(k) Schedules A (transfer, dividend disbursing and shareholders'
servicing agent); B (pricing and bookkeeping); and C (securities lending
transactions) relating to Spartan New York Intermediate Municipal
Portfolio, are filed herein as Exhibit 9(k).
(l) Form of Appointment of Sub-Transfer Agent for Spartan New York
Intermediate Municipal Portfolio is incorporated herein by reference to
Exhibit 9(l) to Post-Effective Amendment No. 28.
(10) Not applicable.
(11) Consent of Price Waterhouse is filed herein as Exhibit 11.
(12) Not applicable.
(13) Not applicable.
(14) Not applicable.
(15) (a) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
New York Tax-Free High Yield Portfolio is incorporated herein by reference
to Exhibit 15(a) to Post-Effective Amendment No. 7.
(b) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity New
York Tax-Free Insured Portfolio is incorporated herein by reference to
Exhibit 15(b) to Post-Effective Amendment No. 7.
(c) Distribution and Service Plan pursuant to Rule 12b-1 for Spartan New
York Municipal High Yield Portfolio is incorporated herein by reference to
Exhibit 15(d) to Post-Effective Amendment No. 18.
(d) Distribution and Service Plan pursuant to Rule 12b-1 for Spartan New
York Intermediate Municipal Portfolio is incorporated herein by reference
to Exhibit 15(e) to Post-Effective Amendment No. 28.
(16) (a) A revised schedule for the computation of performance quotations
for Fidelity New York Tax-Free Insured Portfolio, Fidelity New York
Tax-Free High Yield Portfolio, Spartan New York Municipal Money Market
Portfolio, and Spartan New York Municipal High Yield Portfolio is
incorporated herein by reference to Exhibit 16(a) to Post-Effective
Amendment No. 20.
(b) An additional schedule for the computation of performance quotations
for Fidelity New York Tax-Free Insured Portfolio, Fidelity New York
Tax-Free High Yield Portfolio, Spartan New York Municipal Money Market
Portfolio, and Spartan New York Municipal High Yield Portfolio was filed as
Exhibit 16(b) to Post-Effective Amendment No. 26.
(c) A schedule for the computation of performance quotations for the
Spartan New York Intermediate Municipal Portfolio was filed as Exhibit
16(c) to Post-Effective Amendment No. 28.
Item 25. Persons Controlled by or under Common Control with Registrant
The Registrant's Board of Trustees is the same as the boards of other
funds advised by FMR, each of which has Fidelity Management & Research
Company as its investment adviser. In addition, the officers of these
funds are substantially identical. Nonetheless, Registrant takes the
position that it is not under common control with these other funds since
the power residing in the respective boards and officers arises as the
result of an official position with the respective funds.
Item 26. Number of Holders of Securities
February 28, 1994
Title of Class: Shares of Beneficial Interest
Name of Series Number of Record Holders
Fidelity New York Tax-Free Insured Portfolio 12,120

Fidelity New York Tax-Free High Yield Portfolio 14,249

Spartan New York Municipal High Yield Portfolio 8,170

Spartan New York Intermediate Municipal Portfoliok 391

Item 27. Indemnification
Article XI, Section 2 of the Declaration of Trust sets forth the
reasonable and fair means for determining whether indemnification shall be
provided to any past or present Trustee or officer. It states that the
Registrant shall indemnify any present or past Trustee or officer to the
fullest extent permitted by law against liability and all expenses
reasonably incurred by him in connection with any claim, action, suit or
proceeding in which he is involved by virtue of his service as a trustee,
an officer, or both. Additionally, amounts paid or incurred in settlement
of such matters are covered by this indemnification. Indemnification will
not be provided in certain circumstances, however. These include instances
of willful misfeasance, bad faith, gross negligence, and reckless disregard
of the duties involved in the conduct of the particular office involved.

Item 28. Business and Other Connections of Investment Adviser
(1) FIDELITY MANAGEMENT & RESEARCH COMPANY
FMR serves as investment adviser to a number of other investment
companies. The directors and officers of the Adviser have held, during the
past two fiscal years, the following positions of a substantial nature.

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Edward C. Johnson 3d Chairman of the Executive Committee of FMR; President
and Chief Executive Officer of FMR Corp.; Chairman of
the Board and a Director of FMR, FMR Corp., FMR Texas
Inc., Fidelity Management & Research (U.K.) Inc.
and Fidelity Management & Research (Far East) Inc.;
President and Trustee of funds advised by FMR.

J. Gary Burkhead President of FMR; Managing Director of FMR Corp.;
President and a Director of FMR Texas Inc., Fidelity
Management & Research (U.K.) Inc. and Fidelity
Management & Research (Far East) Inc.; Senior Vice
President and Trustee of funds advised by FMR.

Peter S. Lynch Vice Chairman of FMR (1992).

David Breazzano Vice President of FMR (1993) and of a fund advised by
FMR.

Stephan Campbell Vice President of FMR (1993).

Rufus C. Cushman, Jr. Vice President of FMR and of funds advised by FMR;
Corporate Preferred Group Leader.

Will Danoff Vice President of FMR (1993) and of a fund advised by
FMR.

Scott DeSano Vice President of FMR (1993).

Penelope Dobkin Vice President of FMR and of a fund advised by FMR.

Larry Domash Vice President of FMR (1993).

George Domolky Vice President of FMR (1993) and of a fund advised by
FMR.

Charles F. Dornbush Senior Vice President of FMR; Chief Financial Officer of
the Fidelity funds; Treasurer of FMR Texas Inc., Fidelity
Management & Research (U.K.) Inc., and Fidelity
Management & Research (Far East) Inc.

Robert K. Duby Vice President of FMR.

Margaret L. Eagle Vice President of FMR and of a fund advised by FMR.

Kathryn L. Eklund Vice President of FMR.

Richard B. Fentin Senior Vice President of FMR (1993) and of a fund advised
by FMR.

Daniel R. Frank Vice President of FMR and of funds advised by FMR.

Gary L. French Vice President of FMR and Treasurer of the funds advised
by FMR. Prior to assuming the position as Treasurer he
was Senior Vice President, Fund Accounting - Fidelity
Accounting & Custody Services Co.

Michael S. Gray Vice President of FMR and of funds advised by FMR.

Barry A. Greenfield Vice President of FMR and of a fund advised by FMR.

William J. Hayes Senior Vice President of FMR; Income/Growth Group
Leader and International Group Leader.

Robert Haber Vice President of FMR and of funds advised by FMR.

Daniel Harmetz Vice President of FMR and of a fund advised by FMR.

Ellen S. Heller Vice President of FMR.

</TABLE>

John Hickling Vice President of FMR (1993) and of funds advised by
FMR.

Robert F. Hill Vice President of FMR; and Director of Technical
Research.

Stephan Jonas Vice President of FMR (1993).

David B. Jones Vice President of FMR (1993).

Steven Kaye Vice President of FMR (1993) and of a fund advised by
FMR.

Frank Knox Vice President of FMR (1993).

Robert A. Lawrence Senior Vice President of FMR (1993); and High Income
Group Leader.

Alan Leifer Vice President of FMR and of a fund advised by FMR.

Harris Leviton Vice President of FMR (1993) and of a fund advised by
FMR.

Bradford E. Lewis Vice President of FMR and of funds advised by FMR.

Robert H. Morrison Vice President of FMR and Director of Equity Trading.

David Murphy Vice President of FMR and of funds advised by FMR.

Jacques Perold Vice President of FMR.

Brian Posner Vice President of FMR (1993) and of a fund advised by
FMR.

Anne Punzak Vice President of FMR and of funds advised by FMR.

Richard A. Spillane Vice President of FMR and of funds advised by FMR; and
Director of Equity Research.

Robert E. Stansky Senior Vice President of FMR (1993) and of funds advised
by FMR.

Thomas Steffanci Senior Vice President of FMR (1993); and Fixed-Income
Division Head.

Gary L. Swayze Vice President of FMR and of funds advised by FMR; and
Tax-Free Fixed-Income Group Leader.

Donald Taylor Vice President of FMR (1993) and of funds advised by
FMR.

Beth F. Terrana Senior Vice President of FMR (1993) and of funds advised
by FMR.

Joel Tillinghast Vice President of FMR (1993) and of a fund advised by
FMR.

Robert Tucket Vice President of FMR (1993).

George A. Vanderheiden Senior Vice President of FMR; Vice President of funds
advised by FMR; and Growth Group Leader.

Jeffrey Vinik Senior Vice President of FMR (1993) and of a fund advised
by FMR.

Guy E. Wickwire Vice President of FMR and of a fund advised by FMR.

Arthur S. Loring Senior Vice President (1993), Clerk and General Counsel of
FMR; Vice President, Legal of FMR Corp.; and Secretary
of funds advised by FMR.

</TABLE>

Item 29. Principal Underwriters
(a) Fidelity Distributors Corporation (FDC) acts as distributor for most
funds advised by FMR and the following other funds:
CrestFunds, Inc.
The Victory Funds
ARK Funds
(b)

Name and Principal Positions and Offices Positions and Offices

Business Address* With Underwriter With Registrant

Edward C. Johnson 3d Director Trustee and President

Nita B. Kincaid Director None

W. Humphrey Bogart Director None

Kurt A. Lange President and Treasurer None

William L. Adair Senior Vice President None

Thomas W. Littauer Senior Vice President None

Arthur S. Loring Vice President and Clerk Secretary

* 82 Devonshire Street, Boston, MA
(c) Not applicable.

Item 30. Location of Accounts and Records
All accounts, books, and other documents required to be maintained by
Section 31(a) of the 1940 Act and the Rules promulgated thereunder are
maintained by Fidelity Management & Research Company or Fidelity
Service Co., 82 Devonshire St., Boston, MA, 02109, or the funds' custodian
United Missouri Bank, N.A., 1010 Grand Avenue, Kansas City, Missouri.
Item 31. Management Services
Not applicable.

Item 32. Undertakings
The Registrant on behalf of Fidelity New York Tax-Free High Yield
Portfolio, Fidelity New York Tax-Free Insured Portfolio, Spartan New York
Municipal High Yield Portfolio, and Spartan New York Intermediate Municipal
Portfolio undertakes, provided the information required by Item 5A is
contained in the annual report, to furnish each person to whom a prospectus
has been delivered, upon their request and without charge, a copy of the
Registrant's latest annual report to shareholders.
The Registrant undertakesfor Spartan New York Intermediate Municipal
Portfolio: (1) to call a meeting of shareholders for the purpose of voting
upon the question of removal of a trustee or trustees, when requested to do
so by record holders of not less than 10% of its outstanding shares; and
(2) to assist in communications with other shareholders pursuant to Section
16(c) (1) and (2), whenever shareholders meeting the qualifications set
forth in Section 16 (c) seek the opportunity to communicate with other
shareholders with a view toward requesting a meeting.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all
of the requirements for the effectiveness of this Registration Statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has duly
caused this Post-Effective Amendment No.30 to the Registration Statement to
be signed on its behalf by the undersigned, thereunto duly authorized, in
the City of Boston, and Commonwealth of Massachusetts, on the 21st day of
March 1994.
FIDELITY NEW YORK MUNICIPAL TRUST
By /s/Edward C. Johnson 3d (dagger)
Edward C. Johnson 3d, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in
the capacities and on the dates indicated.
(Signature) (Title) (Date)

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/s/Edward C. Johnson 3d(dagger) President and Trustee March 21, 1994

Edward C. Johnson 3d (Principal Executive Officer)

</TABLE>

/s/Gary L. French Treasurer March 21, 1994

Gary L. French

/s/J. Gary Burkhead Trustee March 21, 1994

J. Gary Burkhead

/s/Ralph F. Cox * Trustee March 21, 1994

Ralph F. Cox

/s/Phyllis Burke Davis * Trustee March 21, 1994

Phyllis Burke Davis

/s/Richard J. Flynn * Trustee March 21, 1994

Richard J. Flynn

/s/E. Bradley Jones * Trustee March 21, 1994

E. Bradley Jones

/s/Donald J. Kirk * Trustee March 21, 1994

Donald J. Kirk

/s/Peter S. Lynch * Trustee March 21, 1994

Peter S. Lynch

/s/Edward H. Malone * Trustee March 21, 1994

Edward H. Malone

/s/Marvin L. Mann_____* Trustee March 21, 1994

Marvin L. Mann

/s/Gerald C. McDonough* Trustee March 21, 1994

Gerald C. McDonough

/s/Thomas R. Williams * Trustee March 21, 1994

Thomas R. Williams

(dagger) Signatures affixed by J. Gary Burkhead pursuant to a power of
attorney dated October 20, 1993 and filed herewith.
* Signature affixed by Robert C. Hacker pursuant to a power of attorney
dated October 20, 1993 and filed herewith.
POWER OF ATTORNEY
I, the undersigned President and Director, Trustee or General Partner, as
the case may be, of the following investment companies:

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Fidelity Advisor Series I Fidelity Institutional Trust
Fidelity Advisor Series II Fidelity Investment Trust
Fidelity Advisor Series III Fidelity Magellan Fund
Fidelity Advisor Series IV Fidelity Massachusetts Municipal Trust
Fidelity Advisor Series V Fidelity Money Market Trust
Fidelity Advisor Series VI Fidelity Mt. Vernon Street Trust
Fidelity Advisor Series VII Fidelity Municipal Trust
Fidelity Advisor Series VIII Fidelity New York Municipal Trust
Fidelity California Municipal Trust Fidelity Puritan Trust
Fidelity Capital Trust Fidelity School Street Trust
Fidelity Charles Street Trust Fidelity Securities Fund
Fidelity Commonwealth Trust Fidelity Select Portfolios
Fidelity Congress Street Fund Fidelity Sterling Performance Portfolio, L.P.
Fidelity Contrafund Fidelity Summer Street Trust
Fidelity Corporate Trust Fidelity Trend Fund
Fidelity Court Street Trust Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Destiny Portfolios Fidelity U.S. Investments-Government Securities
Fidelity Deutsche Mark Performance Fund, L.P.
Portfolio, L.P. Fidelity Union Street Trust
Fidelity Devonshire Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Exchange Fund Spartan U.S. Treasury Money Market
Fidelity Financial Trust Fund
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Fidelity Government Securities Fund Variable Insurance Products Fund II
Fidelity Hastings Street Trust
Fidelity Income Fund

</TABLE>

plus any other investment company for which Fidelity Management &
Research Company acts as investment adviser and for which the undersigned
individual serves as President and Board Member (collectively, the
"Funds"), hereby severally constitute and appoint J. Gary Burkhead, my true
and lawful attorney-in-fact, with full power of substitution, and with full
power to sign for me and in my name in the appropriate capacity, all
Pre-Effective Amendments to any Registration Statements of the Funds, any
and all subsequent Post-Effective Amendments to said Registration
Statements, any Registration Statements on Form N-14, and any supplements
or other instruments in connection therewith, and generally to do all such
things in my name and behalf in connection therewith as said
attorney-in-fact deem necessary or appropriate, to comply with the
provisions of the Securities Act of 1933 and Investment Company Act of
1940, and all related requirements of the Securities and Exchange
Commission. I hereby ratify and confirm all that said attorneys-in-fact or
their substitutes may do or cause to be done by virtue hereof.
WITNESS my hand on the date set forth below.
/s/Edward C. Johnson 3d October 20, 1993

Edward C. Johnson 3d

POWER OF ATTORNEY
We, the undersigned Directors, Trustees or General Partners, as the case
may be, of the following investment companies:

</TABLE>

plus any other investment company for which Fidelity Management &
Research Company acts as investment adviser and for which the undersigned
individuals serve as Board Members (collectively, the "Funds"), hereby
severally constitute and appoint Arthur J. Brown, Arthur C. Delibert,
Robert C. Hacker, Richard M. Phillips, Dana L. Platt and Stephanie A.
Xupolos, each of them singly, our true and lawful attorneys-in-fact, with
full power of substitution, and with full power to each of them, to sign
for us and in our names in the appropriate capacities, all Pre-Effective
Amendments to any Registration Statements of the Funds, any and all
subsequent Post-Effective Amendments to said Registration Statements, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
our names and behalf in connection therewith as said attorneys-in-fact deem
necessary or appropriate, to comply with the provisions of the Securities
Act of 1933 and Investment Company Act of 1940, and all related
requirements of the Securities and Exchange Commission, hereby ratifying
and confirming all that said attorneys-in-fact or their substitutes may do
or cause to be done by virtue hereof.
WITNESS our hands on this twentieth day of October, 1993.

/s/Edward C. Johnson 3d /s/Peter S. Lynch

Edward C. Johnson 3d Peter S. Lynch

/s/J. Gary Burkhead /s/Edward H. Malone

J. Gary Burkhead Edward H. Malone

/s/Richard J. Flynn /s/Gerald C. McDonough

Richard J. Flynn Gerald C. McDonough

/s/E. Bradley Jones /s/Thomas R. Williams

E. Bradley Jones Thomas R. Williams

/s/Donald J. Kirk

Donald J. Kirk

POWER OF ATTORNEY
I, the undersigned Director, Trustee or General Partner, as the case may
be, of the following investment companies:

<TABLE>
<CAPTION>
<S> <C>
Fidelity Advisor Series I Fidelity Magellan Fund
Fidelity Advisor Series III Fidelity Massachusetts Municipal Trust
Fidelity Advisor Series IV Fidelity Money Market Trust
Fidelity Advisor Series VI Fidelity Mt. Vernon Street Trust
Fidelity Advisor Series VIII Fidelity New York Municipal Trust
Fidelity California Municipal Trust Fidelity Puritan Trust
Fidelity Capital Trust Fidelity School Street Trust
Fidelity Charles Street Trust Fidelity Select Portfolios
Fidelity Commonwealth Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Congress Street Fund Fidelity Summer Street Trust
Fidelity Contrafund Fidelity Trend Fund
Fidelity Deutsche Mark Performance Fidelity Union Street Trust
Portfolio, L.P. Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Devonshire Trust Fidelity U.S. Investments-Government Securities
Fidelity Financial Trust Fund, L.P.
Fidelity Fixed-Income Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Government Securities Fund Spartan U.S. Treasury Money Market
Fidelity Hastings Street Trust Fund
Fidelity Income Fund Variable Insurance Products Fund
Fidelity Institutional Trust Variable Insurance Products Fund II
Fidelity Investment Trust

</TABLE>

plus any other investment company for which Fidelity Management &
Research Company acts as investment adviser and for which the undersigned
individual serves as a Board Member (collectively, the "Funds"), hereby
severally constitute and appoint Arthur J. Brown, Arthur C. Delibert,
Robert C. Hacker, Richard M. Phillips, Dana L. Platt and Stephanie A.
Xupolos, each of them singly, my true and lawful attorneys-in-fact, with
full power of substitution, and with full power to each of them, to sign
for me and in my name in the appropriate capacity, all Pre-Effective
Amendments to any Registration Statements of the Funds, any and all
subsequent Post-Effective Amendments to said Registration Statements, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
my name and behalf in connection therewith as said attorneys-in-fact deem
necessary or appropriate, to comply with the provisions of the Securities
Act of 1933 and Investment Company Act of 1940, and all related
requirements of the Securities and Exchange Commission, hereby ratifying
and confirming all that said attorneys-in-fact or their substitutes may do
or cause to be done by virtue hereof.
WITNESS my hand on the date set forth below.
/s/Ralph F. Cox October 20, 1993

Ralph F. Cox

POWER OF ATTORNEY
I, the undersigned Director, Trustee or General Partner, as the case may
be, of the following investment companies:

<TABLE>
<CAPTION>
<S> <C>
Fidelity Advisor Series I Fidelity Investment Trust
Fidelity Advisor Series III Fidelity Mt. Vernon Street Trust
Fidelity Advisor Series IV Fidelity School Street Trust
Fidelity Advisor Series VI Fidelity Select Portfolios
Fidelity Advisor Series VIII Fidelity Sterling Performance Portfolio, L.P.
Fidelity Beacon Street Trust Fidelity Trend Fund
Fidelity Capital Trust Fidelity Union Street Trust
Fidelity Commonwealth Trust Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Contrafund Fidelity U.S. Investments-Government Securities
Fidelity Deutsche Mark Performance Fund, L.P.
Portfolio, L.P. Fidelity Yen Performance Portfolio, L.P.
Fidelity Devonshire Trust Spartan U.S. Treasury Money Market
Fidelity Financial Trust Fund
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Fidelity Government Securities Fund Variable Insurance Products Fund II
Fidelity Hastings Street Trust
Fidelity Institutional Trust

</TABLE>

Phyllis Burke Davis

POWER OF ATTORNEY
I, the undersigned Director, Trustee or General Partner, as the case may
be, of the following investment companies:

<TABLE>
<CAPTION>
<S> <C>
Fidelity Advisor Series I Fidelity Investment Trust
Fidelity Advisor Series III Fidelity Special Situations Fund
Fidelity Advisor Series IV Fidelity Sterling Performance Portfolio, L.P.
Fidelity Advisor Series VI Fidelity Trend Fund
Fidelity Advisor Series VII Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Advisor Series VIII Fidelity U.S. Investments-Government Securities
Fidelity Contrafund Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity Yen Performance Portfolio, L.P.
Portfolio, L.P. Spartan U.S. Treasury Money Market
Fidelity Fixed-Income Trust Fund
Fidelity Government Securities Fund Variable Insurance Products Fund
Fidelity Hastings Street Trust Variable Insurance Products Fund II
Fidelity Institutional Trust

</TABLE>

Marvin L. Mann

EXHIBIT 24(A)(1)

FIDELITY

(Registered trademark)
NEW YORK
TAX-FREE
PORTFOLIOS

ANNUAL REPORT
JANUARY 31, 1994
CONTENTS

CHECK PAGE NUMBERS !!!

PRESIDENT'S MESSAGE 3 NED JOHNSON ON MINIMIZING
TAXES

NEW YORK TAX-FREE
HIGH YIELD PORTFOLIO 4 PERFORMANCE

7 FUND TALK: THE MANAGER'S OVERVI
EW

10 INVESTMENT CHANGES

11 INVESTMENTS

20 FINANCIAL STATEMENTS

NEW YORK TAX-FREE
INSURED PORTFOLIO 24 PERFORMANCE

27 FUND TALK: THE MANAGER'S OVERVI
EW

30 INVESTMENT CHANGES

31 INVESTMENTS

39 FINANCIAL STATEMENTS

NEW YORK TAX-FREE
MONEY MARKET PORTFOLIO 43 PERFORMANCE

45 FUND TALK: THE MANAGER'S OVERVI
EW

47 INVESTMENT CHANGES

48 INVESTMENTS

54 FINANCIAL STATEMENTS

NOTES 58 FOOTNOTES TO THE FINANCIAL
STATEMENTS

REPORT OF INDEPENDENT
ACCOUNTANTS 62 THE AUDITOR'S OPINION

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. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Once the new year begins, many people start reviewing their finances and
calculating their tax bills. No one wants to pay more taxes than they have
to. But a recent survey of 500 U.S. households, conducted by Fidelity and
Yankelovich Partners, showed that few people have taken steps to reduce
their taxes under the new legislation. Many were not even aware that the
new tax laws were retroactive to January 1993.
Whether or not you're someone whose tax bill will increase as a result of
these changes, it may make sense to consider ways to keep more of what you
earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider adding to your tax-free investments-either municipal bonds
or municipal bond funds. Often these can provide higher after-tax yields
than comparable taxable investments. For example, if you're in the new 36%
federal income tax bracket and invest $10,000 in a taxable investment
yielding 7%, you'll pay $252 in federal taxes and receive $448 in income.
That same $10,000 invested in a tax-free bond fund yielding 5.5% would
allow you to keep $550 in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888
or visit a Fidelity Investor Center.
Wishing you a prosperous new year,
Edward C. Johnson 3d, Chairman
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO

PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value). You can also look at the fund's income. If
Fidelity had not reimbursed certain fund expenses during the periods shown,
the total returns, dividends and yields would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

New York Tax-Free High Yield 12.70% 59.99% 167.41%

Lehman Brothers Municipal Bond Index 12.26% 61.39% n/a

Average New York Tax-Exempt
Municipal Bond Fund 12.54% 59.95% n/a

Consumer Price Index 2.52% 20.73% 40.98%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, one year, five years, or since the fund started on July 10,
1984. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, you would end up with $1,050. You can compare these
figures to the performance of the Lehman Brothers Municipal Bond Index - a
broad gauge of the municipal bond market. To measure how the fund stacked
up against its peers, you can look at the average New York tax-exempt
municipal bond fund, which reflects the performance of 65 New York
tax-exempt municipal bond funds tracked by Lipper Analytical Services. Both
benchmarks include reinvested dividends and capital gains, if any.
Comparing the fund's performance to the consumer price index helps show how
your fund did compared to inflation. (The periods covered by the CPI
numbers are the closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

New York Tax-Free High Yield 12.70% 9.86% 10.82%

Lehman Brothers Municipal Bond Index 12.26% 10.05% n/a

Average New York Tax-Exempt
Municipal Bond Fund 12.54% 9.89% n/a

Consumer Price Index 2.52% 3.84% 3.64%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
07/31/84 10000.00 10000.00
08/31/84 10184.56 10224.30
09/30/84 10132.83 10155.59
10/31/84 10200.08 10283.05
11/30/84 10308.12 10434.41
12/31/84 10488.83 10629.95
01/31/85 11080.52 11243.62
02/28/85 10883.51 10963.20
03/31/85 10952.01 11057.82
04/30/85 11241.88 11462.53
05/31/85 11648.80 11860.40
06/30/85 11856.02 11984.81
07/31/85 11925.61 12008.30
08/31/85 11933.18 11924.48
09/30/85 11714.75 11804.88
10/31/85 12057.85 12209.32
11/30/85 12402.49 12647.27
12/31/85 12673.45 12758.44
01/31/86 13180.05 13509.91
02/28/86 13662.53 14045.57
03/31/86 13661.37 14050.07
04/30/86 13624.64 14060.75
05/31/86 13443.67 13831.84
06/30/86 13561.54 13963.79
07/31/86 13606.63 14048.55
08/31/86 14228.62 14677.51
09/30/86 14215.44 14714.35
10/31/86 14553.78 14968.47
11/30/86 14797.75 15264.99
12/31/86 14805.32 15222.86
01/31/87 15163.55 15681.22
02/28/87 15293.35 15758.37
03/31/87 15179.05 15591.33
04/30/87 14176.46 14808.96
05/31/87 14049.63 14735.51
06/30/87 14278.97 15168.14
07/31/87 14462.19 15322.86
08/31/87 14508.75 15357.33
09/30/87 13691.62 14791.11
10/31/87 13868.58 14843.47
11/30/87 14144.39 15231.03
12/31/87 14449.04 15452.03
01/31/88 15098.12 16002.44
02/29/88 15261.70 16171.58
03/31/88 14862.02 15983.18
04/30/88 14921.97 16104.65
05/31/88 14995.92 16058.11
06/30/88 15257.35 16293.04
07/31/88 15358.06 16399.27
08/31/88 15405.67 16413.70
09/30/88 15727.74 16710.79
10/31/88 16095.59 17005.74
11/30/88 15924.78 16849.97
12/31/88 16171.18 17022.34
01/31/89 16363.93 17374.36
02/28/89 16234.16 17176.12
03/31/89 16203.38 17135.07
04/30/89 16683.90 17541.86
05/31/89 16980.17 17906.20
06/30/89 17220.05 18149.37
07/31/89 17374.68 18396.38
08/31/89 17282.65 18216.28
09/30/89 17209.08 18161.63
10/31/89 17304.96 18383.20
11/30/89 17553.67 18704.91
12/31/89 17672.17 18858.29
01/31/90 17574.33 18769.65
02/28/90 17690.34 18936.70
03/31/90 17644.68 18942.39
04/30/90 17454.89 18806.00
05/31/90 17847.75 19215.97
06/30/90 18086.83 19385.07
07/31/90 18389.42 19670.03
08/31/90 18086.35 19384.82
09/30/90 18083.23 19396.45
10/31/90 18189.78 19747.52
11/30/90 18514.74 20144.45
12/31/90 18572.04 20233.08
01/31/91 18824.01 20504.21
02/28/91 18943.22 20682.59
03/31/91 19033.12 20690.87
04/30/91 19303.56 20966.06
05/31/91 19442.24 21152.65
06/30/91 19499.28 21131.50
07/31/91 19805.25 21389.31
08/31/91 20047.50 21671.64
09/30/91 20391.91 21953.38
10/31/91 20601.26 22150.96
11/30/91 20691.54 22212.98
12/31/91 21057.46 22690.56
01/31/92 20875.27 22742.75
02/29/92 20964.54 22749.57
03/31/92 20994.74 22758.67
04/30/92 21195.26 22961.22
05/31/92 21521.09 23232.16
06/30/92 21948.09 23622.46
07/31/92 22629.78 24331.14
08/31/92 22337.90 24092.69
09/30/92 22470.61 24249.29
10/31/92 22120.73 24011.65
11/30/92 22631.36 24441.46
12/31/92 22948.01 24690.76
01/31/93 23230.07 24977.18
02/28/93 24138.28 25881.35
03/31/93 23880.07 25607.01
04/30/93 24121.39 25865.64
05/31/93 24274.80 26010.49
06/30/93 24686.69 26444.86
07/31/93 24708.91 26479.24
08/31/93 25276.70 27030.01
09/30/93 25539.87 27338.15
10/31/93 25560.04 27390.09
11/30/93 25288.14 27149.06
12/31/93 25907.20 27721.90
01/31/94 26181.18 28037.93
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity New
York Tax-Free High Yield Portfolio on July 31, 1984, shortly after the fund
started. As the chart shows, by January 31, 1994, the value of your
investment would have grown to $26,181 - a 161.81% increase on your initial
investment. For comparison, look at how the Lehman Brothers Municipal Bond
Index did over the same period. With dividends reinvested, the same $10,000
would have grown to $28,038 - a 180.38% increase.

UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
INCOME
YEARS ENDED JANUARY 31, 1994 1993 1992 1991 1990

Income return 5.78% 6.74% 6.95% 7.11% 7.14%

Capital gain return 3.84% 0.00% 0.00% 0.00% 0.00%
Change in share price 3.08% 4.54% 3.95% 0.00% 0.26%
Total return 12.70% 11.28% 10.90% 7.11% 7.40%
INCOME returns, capital gain returns, and changes in share price are all
part of a bond fund's total return. An income return reflects the dividends
paid by the fund. A capital gain return reflects the amount paid by the
fund to shareholders based on the profits it has from selling bonds that
have grown in value. Both returns assume the dividends or gains are
reinvested. Changes in the fund's share price include changes in the prices
of the bonds owned by the fund.
DIVIDENDS AND YIELD
PERIODS ENDED JANUARY 31, 1994 PAST 30 PAST 6 PAST 1
DAYS MONTHS YEAR

Dividends per share n/a 35.44(cents) 71.43(cents)

Annualized dividend rate n/a 5.32% 5.45%

Annualized yield 4.56% n/a n/a

Tax-equivalent yield 8.10% n/a n/a

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $13.22 over
the past six months and $13.11 over the past year, you can compare the
fund's income over these two periods. The 30-day annualized YIELD is a
standard formula for all funds based on the yields of the bonds in the
fund, averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period. It also
helps you compare funds from different companies on an equal basis. The
tax-equivalent yield shows what you would have to earn on a taxable
investment to equal the fund's tax-free yield, if you're in the 43.71%
combined effective 1994 federal, state and New York City tax bracket.
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Bond investments - including
tax-free issues - provided
historically attractive returns for the
12 months ended January 31, 1994.
Falling interest rates pushed up bond
prices steadily through mid-October,
when the yield on the benchmark
30-year Treasury bond reached a
historic low, at 5.79%. By year-end, a
strengthening economy had fueled
mild inflation fears, which helped
push up the yield on the 30-year
bond to 6.35% by December 31.
Inflation jitters eased in January, and
the yield on the long Treasury
dropped to 6.23% by January 31.
Two factors affected municipal
bonds specifically: on the positive
side, higher federal taxes -
approved in August and discussed
all year - boosted demand. But
record new issuance kept supplies
high, which somewhat dampened
prices. The Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
rose 12.26% during the 12 months
ended January 31, 1994. By
comparison, the Lehman Brothers
Aggregate Bond Index - which
tracks investment-grade taxable
bonds - rose 9.14%, due in part to
poor performance by
mortgage-backed securities.
Globally, falling interest rates and low
inflation drove strong returns in
Europe, Japan, and many of the
emerging markets. The Salomon
Brothers World Government Bond
Index - which includes U.S. issues
- - rose 12.22%, while the J.P.
Morgan Emerging Markets Bond
Index was up 43.06%.
An interview with Norman Lind, Portfolio Manager of Fidelity New York
Tax-Free High Yield Portfolio
Q. NORM, HOW DID THE FUND DO?
A. For the 12 months ended January 31, 1994, it had a total return of
12.70%. That was slightly ahead of the average New York municipal bond
fund's return of 12.54%, according to Lipper Analytical Services.
Q. ALTHOUGH YOU'VE ONLY RUN THE FUND SINCE OCTOBER, CAN YOU TELL US WHY IT
DID BETTER THAN THE AVERAGE OVER THE PAST YEAR?
A. A couple factors worked in the fund's favor. First, the duration of the
fund - a measure of interest rate sensitivity - was 8.3 years on January
31, 1994 which is relatively long. That meant as interest rates dropped,
the prices of bonds in the fund rose more than if the duration had been
shorter.
Q. WHAT TYPES OF BONDS WERE USED TO LENGTHEN THE FUND'S DURATION?
A. Mainly non-callable and discount bonds. Non-callable bonds can't be
prematurely returned to their issuers. That means they have a longer
duration because they trade to their maturity date, rather than a shorter
call date. When interest rates are falling and bond prices are rising,
non-callables tend to do well. It's the same for discount bonds. They trade
at less than face value and are more sensitive to interest rate movements
than bonds that trade at a higher value.
Q. WHAT OTHER FACTORS HELPED PERFORMANCE?
A. The fund's stake in bonds that were pre-refunded was also a factor. With
pre-refunding, the issuer sells a new lower-interest bond, invests the
proceeds in short-term government securities, and pays off the old bond at
the earliest opportunity. Bonds are worth more after they're pre-refunded
because they're backed by government securities.
Q. IN WHAT AREAS OF NEW YORK STATE ARE YOU FINDING OPPORTUNITIES?
A. Recently I've built nearly an 8.5% stake in bonds issued by New York
City and its agencies. These can offer more attractive yields than bonds
issued at the state level mainly because of the city's huge number of
outstanding issues. In fact, New York City is the second biggest issuer in
the country, next to the U.S. Treasury. Even though we haven't yet seen a
lot of rapid improvement in the credit quality of the city's bonds, I think
the economy there has started to stabilize. Looking ahead, the credit
quality should improve if the city's economy strengthens. That would most
likely boost the bonds' prices. The fund missed out on some of the strong
performance of New York City bonds. As the national economy started to
improve, investors gained confidence in their bonds, and were attracted to
relatively high yields. Once that happened, prices increased and the bonds
were among the best performers for the year. In hindsight, the fund could
have benefited by having a bigger stake in these bonds over the course of
the year.
Q. FOR THE PAST TWO YEARS, STATE-APPROPRIATED BONDS PLAYED A FAIRLY
IMPORTANT ROLE IN THE FUND'S STRATEGY. DO THEY STILL SEEM AS ATTRACTIVE?
A. Yes. These bonds rely on annual appropriations by the state legislature
to meet all or part of the principal and interest payments. When the state
ran into some rough spots a couple of years ago, the bonds were downgraded
to Baa. At that time, they were attractive because they offered high
yields. Then, as the New York economy showed signs of improvement,
state-appropriated bonds attracted more buyers and prices increased. What's
more, future debt reform at the legislative level could mean that there
will be fewer state-appropriated bonds issued. Going forward, I think these
bonds could be upgraded - probably in the next 12 months. A dwindling
supply and an upgrade would most likely further benefit their prices. But
even if they're not upgraded, their high yields continue to make them
attractive.
Q. SO WHAT CAN INVESTORS EXPECT OVER THE NEXT 12 MONTHS?
A. Probably more modest returns than we've seen in the past year. That
said, I'm optimistic that municipals could do well during 1994. That's
because higher federal taxes could increase demand for municipal bonds. At
the same time, supply could taper off, since many of the refinancings that
could take place already have. Increased demand and decreased supply should
bode well for municipal bonds.

FUND FACTS
GOAL: to provide high current
income exempt from federal,
state and New York City
income taxes by investing
primarily in long-term New
York municipal bonds of
investment-grade quality
START DATE: July 10, 1984
SIZE: as of January 31, 1994,
over $491 million
MANAGER: Norman Lind,
since October 1993; manager,
Fidelity New York Tax-Free
Insured Portfolio, since March
1994; Spartan New York
Municipal High Yield Portfolio,
since October 1993; Spartan
Municipal Income Portfolio,
since June 1990
(checkmark)

NORM LIND'S INTEREST RATE
OUTLOOK:
"Over the next several
months, I think interest rates
will probably remain stable.
Inflation appears to be in
check, and the Fed recently
underscored its intention to
fight inflation by raising
short-term interest rates.
Despite that quarter of a point
hike, I think interest rates will
remain near where they are
now. The economy still isn't
showing the kind of robust
pickup you'd normally expect
at this stage of a recovery.
U.S. job growth is slow, and
there's been no significant
improvement in the world
economy that could help
ignite a stronger domestic
recovery. Unless we see a
significant economic
downturn, there's probably
little reason for the Fed to cut
interest rates either."
(bullet) About 20% of the fund was
in transportation bonds. Of
these, about half were
state-appropriated issues.
They're attractive in part
because they often offer high
yields. Most of the remaining
bonds in the transportation
sector are attractive because
of their strong credit ratings.
(bullet) The fund's stake in
general obligation bonds -
bonds backed by tax
revenues - grew from 6.9% at
the end of July to 15.5% at the
end of January.
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF JANUARY 31, 1994
% OF FUND'S INVESTMENT % OF FUND'S INVESTMENT
S S
IN THESE SECTORS
6 MONTHS AGO

Transportation 21.2 20.5

General Obligation 15.5 6.9

Lease Revenue 13.5 13.5

Special Tax 9.6 8.9

Electric Revenue 9.4 7.1

AVERAGE YEARS TO MATURITY AS OF JANUARY 31, 1994
6 MONTHS AGO

Years 20.0 21.6

AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL OF THE
BONDS IN THE FUND IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF JANUARY 31, 1994
6 MONTHS AGO

Years 8.3 7.8

DURATION SHOWS HOW MUCH A BOND'S PRICE FLUCTUATES WITH CHANGES IN INTEREST
RATES. IF RATES RISE 1%, FOR EXAMPLE, THE SHARE PRICE OF A FUND WITH A
FIVE-YEAR DURATION WILL FALL 5%.
QUALITY DIVERSIFICATION AS OF JANUARY 31, 1994
(MOODY'S RATINGS)
Row: 1, Col: 1, Value: 11.1
Row: 1, Col: 2, Value: 42.2
Row: 1, Col: 3, Value: 45.7
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 2.0
Aaa 11.1%
Aa, A 42.2%
Baa 45.7%
Ba, B 0.0%
Non-rated 1.0%
THIS CHART EXCLUDES SHORT-TERM INVESTMENTS. WHERE MOODY'S RATINGS ARE NOT
AVAILABLE, WE HAVE USED S&P RATINGS.
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO

INVESTMENTS/JANUARY 31, 1994
(Showing Percentage of Total Value of Investments)

MUNICIPAL BONDS - 96.2%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 76.7%
Babylon Ind. Dev. Agcy. Resource Recovery
Rev. (Odgen Martin Sys. Babylon, Inc. Co.)
Series B, 8.50% 1/1/19 Baa1 $ 2,085,000 $ 2,395,144 056212BY
Erie County Wtr. Auth. Impt. & Extension
Rev. 3rd Series, 6.10% 12/1/04,
(Escrowed to Maturity) (d) A 2,000,000 2,190,000 295097BB
Franklin County Ctfs. of Prtn. (Court House
Redev. Proj.) 8.125% 8/1/06 BBB 880,000 1,018,600 353139AN
Hempstead Town Ind. Dev. Agcy. Resource
Recovery Rev. Rfdg. (American Fuel Co.):
7.375% 12/1/05 Baa1 6,000,000 6,547,500 424677AL
7.40% 12/1/10 Baa1 6,525,000 7,120,406 424677AM
Metropolitan Trans. Auth. Svc. Contract:
(Commuter Facs.)
Series 3, 7.375% 7/1/08 Baa1 4,400,000 5,219,500 592597SR
Series O, 5.75% 7/1/13 Baa1 1,675,000 1,731,531 592597C6
(Trans. Facs.) Series O, 5.50%
7/1/17 Baa1 10,855,000 10,841,431 592597D3
Nassau County Gen. Impt.:
Rfdg., Series A, 2.90% 5/1/95
(FGIC Insured) (e) Aaa 3,680,000 3,680,000 63165MAP
Series M, 4.90% 8/1/94,
(FGIC Insured) Aaa 4,685,000 4,743,563 6316535J
New York City Gen. Oblig.:
Rfdg., Series D:
5.60% 8/15/05 Baa1 2,000,000 2,042,500 649653MS
5.75% 8/15/07 Baa1 5,000,000 5,106,250 649654PF
Rfdg., Series G, 5.40% 8/1/04 Baa1 2,000,000 2,017,500 649652SK
Series B, 6.75% 10/1/15 Baa1 1,500,000 1,612,500 649658GE
Series C:
5.40% 10/1/06 Baa1 5,045,000 5,026,081 649653MQ
5.50% 10/1/15 Baa1 1,500,000 1,451,250 649658HT
Series E:
5.40% 8/1/04 Baa1 2,375,000 2,395,781 649652SF
5.625% 8/1/13 Baa1 2,000,000 1,967,500 649657LZ
Sub-Series A-1, 5.70% 8/1/06 Baa1 2,500,000 2,553,125 649653ML
5.625% 8/1/07 Baa1 3,500,000 3,539,375 649654PM
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Health Hosp. Corp. 8.593%
2/15/11, (AMBAC Insured) (c) Aaa $ 5,000,000 $ 5,512,500 649674BE
New York City Hsg. Dev. Corp. Mtg. Rev.
(Multi-Family Hsg.) Series A, 8.125%
1/1/19, (GNMA Coll.) AA 4,250,000 4,563,438 649702LU
New York City Ind. Dev. Agcy. Civic Facs.
Rev. (Rockefeller Foundation Proj.)
5.25% 7/1/13 Aaa 2,250,000 2,292,188 64971CGK
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev.:
Series A:
7.40% 6/15/04 A 1,250,000 1,496,875 649706NE
7.375% 6/15/09 A 3,850,000 4,538,188 649706LW
Series B, 6.375% 6/15/22 A 7,000,000 7,498,750 649706YG
7% 6/15/16, (FGIC Insured) Aaa 500,000 595,000 649706RR
New York State Dorm. Auth. Rev.:
Rfdg. (City Univ. Sys.):
Series C, 8.20% 7/1/14 Baa1 1,000,000 1,200,000 649831A2
7.625% 7/1/14 Baa1 1,500,000 1,676,250 649831SA
Rfdg. (Dept. of Health) 5.50%
7/1/20 Baa1 2,500,000 2,453,125 649834VC
Rfdg. (State Univ. Edl. Facs.):
Series A, 5.25% 5/15/15 Baa1 6,500,000 6,337,500 649834AS
Series B:
7.375% 5/15/14 Baa1 275,000 312,125 649834BY
5% 5/15/18 Baa1 8,000,000 7,470,000 649831U7
(City Univ. Sys.):
Series 1988 D, 8.20% 7/1/12 Baa1 1,260,000 1,512,000 649831A9
Series R:
10.75% 7/1/03 Baa1 500,000 529,375 649831HY
5.20% 7/1/05 (FGIC Insured) Aaa 2,810,000 2,925,913 649834SB
10.875% 7/1/14 Baa1 250,000 264,063 649831HZ
(City Univ. Sys. Consolidated):
Series A, 5.75% 7/1/13 Baa1 3,850,000 3,965,500 649834HW
Series D, 7% 7/1/09 Baa1 5,000,000 5,837,500 649832JF
(Columbia Univ.) Series A,
4.75% 7/1/14 (e) Aaa 4,500,000 4,325,625 649834XX
(Court Facs. Lease) Series A:
5.375% 5/15/16 Baa1 5,000,000 4,918,750 649834WP
5.25% 5/15/21 Baa1 10,000,000 9,650,000 649834WQ
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev.: - continued
(Crouse Irving Mem. Hosp.) 10.50%
7/1/17, (HIB Insured) A $ 750,000 $ 784,688 649831JH
(Judicial Facs. Lease) Series B, 7%
4/15/16 Baa1 2,000,000 2,230,000 649832YM
(New York City Univ.) Series U,
6.375% 7/1/08 Baa1 1,900,000 2,059,125 6498322Y
(Rochester Gen. Hosp.) 8.75% 2/1/25,
(FHA Guaranteed) Aa 2,685,000 2,950,144 649831NN
New York State Envir. Facs. Corp. Poll. Cont.
Rev. (State Wtr. Revolving Fund):
(City Proj.) Series A, 7% 6/15/12 Aa 3,000,000 3,513,750 649850DY
Pooled Loan B, 5.20 5/15/14 Aa 1,220,000 1,238,300 649850QB
New York State Hsg. Fin. Agcy. Rev.
(St. John Village Proj.)
Section 8, 8.25% 5/1/09 A 5,865,000 5,989,631 649862OA
New York State Local Gov't. Assistance Corp.:
Rfdg., Series C:
5.50% 4/1/17 A 12,500,000 12,812,500 649876JN
5% 4/1/21 A 2,500,000 2,371,875 649876JJ
Rfdg., Series E, 5.25 4/1/16 A 4,500,000 4,466,250 649876KY
RIBS 7.50% 4/1/21 (c) A 2,100,000 2,102,625 649876JQ
Series 91A, 6.50% 4/1/20 A 15,350,000 16,808,250 649876AS
Series B, 6% 4/1/18 A 8,500,000 8,988,750 649876FY
New York State Med. Care Facs. Fin. Agcy. Rev.:
Rfdg. (Good Samaritan Hosp. Proj.)
Series A, 8% 11/1/13 A 3,500,000 3,941,875 649881SR
Rfdg. (Presbyterian Hosp.) Series A,
5.25% 8/15/14 (e) Aa 3,000,000 2,988,750 64988JQJ
(Hosp. Mtg.) Series 1985 A, 9.25%
1/15/25, (FHA Guaranteed) Aa 2,733,000 2,931,143 649881HY
(Hosp. & Nursing Home) (Albany Med.
Ctr./Alice Hyde Proj.) Series A, 8%
2/15/28, (FHA Guaranteed) Aa 3,000,000 3,431,250 649881YS
(Hosp. & Nursing Home) (Richland Hosp.)
Series B, 9.125% 2/15/25,
(FHA Guaranteed) AA 3,260,000 3,488,200 649881JZ
(Long-Term Health Care) 6.50% 11/1/15,
(Cap. Guaranty Insured) Aaa 1,750,000 1,944,688 64988HV2
(Mental Health Svc. Facs.) Series A,
5.80% 8/15/22, (AMBAC Insured) Aaa 6,150,000 6,419,063 64988H5W
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Med. Care Facs. Fin. Agcy. Rev.: - continued
(Mental Health Svcs. Facs. Impt.)
Series F, 6.50% 2/15/19 Baa1 $ 4,250,000 $ 4,579,375 64988HY2
(Mt. Sinai Hosp.) Series 1992 C, 5.75%
8/15/19, (FHA Guaranteed) AAA 2,000,000 2,060,000 64988HN8
(Nursing Home Mtg.) Series B, 10.50%
1/15/24, (FHA Guaranteed) A- 1,000,000 1,025,000 649881HN
(St. Francis Hosp. Proj.) Series A, 7.625%
11/1/21, (FGIC Insured) Aaa 1,500,000 1,736,250 649881D8
8.875% 8/15/07
(Pre-Refunded to 8/15/97 @
102) (d) Baa1 3,775,000 4,515,844 64988JKS
8.875% 8/15/07 Baa1 4,225,000 4,879,875 64988JKT
7.875% 8/15/20 Baa1 1,285,000 1,509,875 64988JNH
7.50% 2/15/21 Baa1 135,000 158,119 64988JNP
New York State Pwr., Series H,
7.407% 6/1/07 (c) Aa 5,000,000 5,043,750 91828FBB
New York State Pwr. Auth. & Gen. Purp. Rev.:
Rfdg., Series 2, 6.50% 1/1/19 Aa 5,000,000 5,556,250 649892XX
Rfdg., Series CC, 5.25% 1/1/18 Aa 5,000,000 4,987,500 649892C3
Series AA, 6.25% 1/1/23 Aa 3,750,000 4,106,250 649892ZQ
Series V, 8% 1/1/17 Aa 1,570,000 1,813,350 649891AR
Series Y, 6% 1/1/20 Aa 6,375,000 6,669,844 649892WW
New York State Thruway Auth. Gen. Rev.,
Series A:
5.75% 1/1/12 A1 4,000,000 4,175,000 650009DQ
5.75% 1/1/19 A1 6,500,000 6,751,875 650009DR
New York State Thruway Auth. Svc. Contract Rev.
(Local Hwy. & Bridge):
4.90% 4/1/01 Baa1 5,365,000 5,385,119 650017BP
7.25% 1/1/10 Baa1 7,500,000 8,540,625 650017AM
New York State Urban Dev. Corp. Rev.:
(Clarkson Ctr. Loan Proj.) 7.80%
1/1/20 Baa1 4,100,000 4,725,250 650033RV
(Onondaga County Convention Proj.):
7.875% 1/1/10 Baa1 3,000,000 3,506,250 650033SM
7.875% 1/1/20 Baa1 2,250,000 2,629,688 650033SN
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Oswego County Pub. Impt. Unltd. Tax:
6.70% 6/15/10 A $ 1,100,000 $ 1,292,500 688638DC
6.70% 6/15/11 A 1,100,000 1,299,375 688638DD
6.70% 6/15/12 A 1,100,000 1,306,250 688638DE
Suffolk County Unltd. Tax Rdfg., Series G,
3.20% 4/1/95, (MBIA Insured) Aaa 4,515,000 4,537,575 864764NV
Suffolk County Wtr. Auth. 6% 6/1/17,
(MBIA Insured) (e) Aaa 4,000,000 4,445,000 8647792P
Syracuse Ind. Dev. Agcy. Civic Facs. Rev.
(St. Joseph's Hosp. Health Ctr. Proj.)
7.50% 6/1/18 Baa1 1,265,000 1,416,800 871720AD
Syracuse Ind. Dev. Agcy. Parking Facs. Rev.
(Syracuse Econ. Dev. Corp.) Series 1990 A,
7.70% 6/1/15 A 2,445,000 2,839,256 87172HAB
Tonawanda Hsg. Dev. Corp. 1st Lien Rev.
(Tonawanda Tower Proj.) Section 8:
10% 5/1/06 - 105,000 109,594 890180AZ
10% 5/1/07 - 130,000 135,688 890180BA
10% 5/1/08 - 310,000 323,563 890180BB
10% 5/1/09 - 340,000 354,875 890180BC
10% 5/1/10 - 375,000 391,406 890180BD
10% 5/1/11 - 410,000 427,938 890180BE
10% 5/1/12 - 315,000 328,781 890180BF
Triborough Bridge & Tunnel Auth. Rev.:
Rfdg. (Gen. Purp.)
Series Q, 5% 1/1/17 Aa 3,820,000 3,719,725 896029RK
Series Y:
6% 1/1/12 Aa 5,595,000 6,168,488 896029YS
5.50% 1/1/17 Aa 3,500,000 3,661,875 896029YE
6.125% 1/1/21 Aa 6,500,000 7,418,125 896029YU
(Convention Ctr. Proj.) Series E:
7.25% 1/1/10 Baa1 2,000,000 2,407,500 896027CM
6% 1/1/11 Baa1 2,500,000 2,668,750 896027CN
United Nations Dev. Corp. Rev. Rfdg.
Sr. Lien Series A, 6% 7/1/26 A 5,000,000 5,268,750 911157DN
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Watervliet Hsg. Auth. Rev., Section 8:
8% 11/15/00 - $ 95,000 $ 98,206 9429999A
8% 11/15/01 - 95,000 98,088 9429999B
8% 11/15/02 - 100,000 103,250 9429999C
8% 11/15/03 - 100,000 103,125 9429999D
8% 11/15/04 - 95,000 97,850 9429999E
8% 11/15/05 - 95,000 97,969 9429999F
8% 11/15/06 - 100,000 103,124 9429999G
8% 11/15/07 - 100,000 103,124 9429999H
8% 11/15/08 - 100,000 103,124 9429999I
8% 11/15/09 - 100,000 103,124 9429999J
380,422,946
NEW YORK & NEW JERSEY - 5.6%
New York & New Jersey Port Auth.:
Consolidated 85th Series:
5.20% 9/1/15 A1 5,800,000 5,920,750 733580XY
5.20% 9/1/16 A1 18,525,000 19,080,750 733580YM
5.375% 3/1/28 A1 2,910,000 2,997,300 733580ZN
27,998,800
PUERTO RICO - 13.0%
Puerto Rico Commonwealth Gen. Oblig.
5% 7/1/21 Baa1 13,155,000 12,711,018 745144KJ
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Hwy. Rev. Series W, 5.50%
7/1/15 Baa1 4,250,000 4,335,000 745181CB
Puerto Rico Commonwealth Hwy. & Trans.
Rfdg., Series X:
5.50% 7/1/13 Baa1 15,000,000 15,375,000 745181CA
5% 7/1/22 Baa1 2,500,000 2,362,500 745181CF
Puerto Rico Commonwealth Urban Renewal &
Hsg. Corp. Rfdg. 7.875% 10/1/04 Baa1 6,270,000 7,367,250 745245ES
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.
Resources Auth. Pwr. Rev., Series R,
6.25% 7/1/17 Baa1 6,000,000 6,450,000 745268ND
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
PUERTO RICO - CONTINUED
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Rfdg.,
Series M, 8% 7/1/08 Baa1 $ 2,500,000 $ 2,925,000 745268GZ
Puerto Rico Hsg. Bank & Fin. Agcy.
(Single Family) 7.25% 12/1/06 Baa 595,000 636,650 745269BJ
Puerto Rico Ind. Med. & Environmental Poll.
Ctl. Facs. Fing. Auth. Rev. (American
Home) Series A Rmkt., 5.10% 12/1/18 Aaa 1,250,000 1,260,937 745271A3
Puerto Rico Pub. Bldgs. Auth. Guaranteed
Pub. Ed. & Health Facs. Rev. Rfdg.,
Series G, 7.875% 7/1/16
(Pre-Refunded to 7/1/97 @ 102) (d) Aaa 5,740,000 6,651,224 745232DR
Puerto Rico Pub. Bldgs. Auth. Rev. Rfdg.
Series L, 5.50% 7/1/21 Baa1 3,000,000 3,078,750 745235GJ
Puerto Rico Tel. Auth. Rev. Series N,
5.50% 1/1/13 A 1,000,000 1,032,500 745297JR
64,185,829
U.S. VIRGIN ISLANDS - 0.3%
Virgin Islands Pub. Fin. Auth. Rev. Rfdg.,
Series A, 7.25% 10/1/18
(Escrowed to Maturity) (d) - 1,500,000 1,698,750 927676CF

GUAM - 0.6%
Guam Pwr. Auth. Rev., Series A,
5.25% 10/1/13 BBB 2,795,000 2,742,593 400653BF

TOTAL MUNICIPAL BONDS
(Cost $443,113,351) 477,048,918
MUNICIPAL NOTES (A) - 3.8%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 3.8%
New York City Hsg. Dev. Corp. Spl. (Carnegie
Park Proj.) Series 1984 A, 2.90%, LOC
Sumitomo Trust & Banking Ltd., VRDN VMIG 2 $ 8,510,000 $ 8,510,000
64970T9A
New York State Dorm. Auth. Rev.
(Cornell Univ.) Series 1990 B, 2.05%,
BPA Morgan Guaranty, VRDN VMIG 1 4,000,000 4,000,000 649832LX
New York State Energy Research & Dev.
Auth. Poll. Cont. Rev. (Niagra Mohawk Proj.)
Series 1985 A, 1.95%, LOC Long-Term
Cr. Bank of Japan, VRDN A-1 6,200,000 6,200,000 649845BK
TOTAL MUNICIPAL NOTES
(Cost $18,710,000) 18,710,000
TOTAL INVESTMENTS - 100%
(Cost $461,823,351) $ 495,758,918

SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate
at period end.
(b) Standard & Poor's Corporation credit ratings are used in the
absence of a rating by Moody's Investors Service, Inc.
(c) Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate. The price will be more
volatile than the price of a comparable fixed rate security.
(d) Security collateralized by an amount sufficient to pay interest and
principal.
(e) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
INCOME TAX INFORMATION
At January 31, 1994, the aggregate cost of investment securities for income
tax purposes was $462,018,707. Net unrealized appreciation (depreciation)
aggregated $33,740,211, of which $33,815,751 related to appreciated
investment securities and $75,540 related to depreciated investment
securities.
The fund hereby designates $3,105,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
At January 31, 1994, the fund was required to defer $735,000 of losses on
futures contracts and options.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 48.3% AAA, AA, A 68.7%
Baa 43.2% BBB 24.0%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 1.0%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investments, is as follows:
Transportation 21.2%
General Obligation 15.5
Lease Revenue 13.5
Others
(individually less than 10%) 49.8
TOTAL 100.0%
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1994

87.ASSETS 88. 89.

90.Investment in securities, at value (cost 91. $ 495,758,918
$461,823,351) (Notes 1 and 2) - See accompanying
schedule

92.Cash 93. 11,651

94.Receivable for investments sold 95. 13,242,490

96.Interest receivable 97. 5,558,438

98. 99.TOTAL ASSETS 100. 514,571,497

101.LIABILITIES 102. 103.

Payable for investments purchased $ 3,656,551
Regular delivery

Delayed delivery (Note 2) 18,744,665

104.Payable for fund shares redeemed 97,626 105.

106.Dividends payable 412,071 107.

108.Accrued management fee 166,153 109.

110.Other payables and accrued expenses 73,621 111.

112. 113.TOTAL LIABILITIES 114. 23,150,687

115.116.NET ASSETS 117. $ 491,420,810

118.Net Assets consist of (Note 1): 119. 120.

121.Paid in capital 122. $ 449,178,920

123.Accumulated undistributed net realized gain (loss) 124. 8,306,323
on investments

125.Net unrealized appreciation (depreciation) on 126. 33,935,567
investment securities

127.128.NET ASSETS, for 37,643,753 shares 129. $ 491,420,810
outstanding

130.131.NET ASSET VALUE, offering price and 132. $13.05
redemption price per share ($491,420,810 (divided by)
37,643,753 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JANUARY 31, 1994

133.134.INTEREST INCOME 135. $ 28,845,318

136.EXPENSES 137. 138.

139.Management fee (Note 4) $ 1,981,659 140.

141.Transfer agent, accounting and custodian fees and 740,234 142.
expenses (Note 4)

143.Non-interested trustees' compensation 1,232 144.

145.Registration fees 154 146.

147.Audit 48,912 148.

149.Legal 7,229 150.

151.Interest (Note 5) 1,050 152.

153.Reports to shareholders 8,894 154.

155.Miscellaneous 394 156.

157. 158.TOTAL EXPENSES 159. 2,789,758

160.161.NET INTEREST INCOME 162. 26,055,560

163.REALIZED AND UNREALIZED GAIN (LOSS) ON 165. 166.
INVESTMENTS
(NOTES 1 AND 3)
164.Net realized gain (loss) on:

167. Investment securities 27,271,138 168.

169. Futures contracts 599,490 27,870,628

170.Change in net unrealized appreciation 171. 172.
(depreciation) on:

173. Investment securities 3,015,502 174.

175. Futures contracts (67,850) 2,947,652

176.177.NET GAIN (LOSS) 178. 30,818,280

179.180.NET INCREASE (DECREASE) IN NET ASSETS 181. $ 56,873,840
RESULTING FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR NINE MONTHS
ENDED ENDED
JANUARY 31, JANUARY 31, 1993
1994 (NOTE 1)

182.INCREASE (DECREASE) IN NET ASSETS

183.Operations $ 26,055,560 $ 19,692,316
Net interest income

184. Net realized gain (loss) on investments 27,870,628 8,778,128

185. Change in net unrealized appreciation 2,947,652 10,232,393
(depreciation)
on investments

186. 56,873,840 38,702,837
187.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM
OPERATIONS

188.Distributions to shareholders from: (26,055,560) (19,692,316)
Net interest income

189. Net realized gain (16,764,682) -

190. (42,820,242) (19,692,316)
191.TOTAL DISTRIBUTIONS

192.Share transactions 140,084,459 101,784,573
Net proceeds from sales of shares

193. Reinvestment of distributions from: 20,766,577 15,867,926
Net interest income

194. 14,043,771 -
Net realized gain

195. Cost of shares redeemed (143,033,330) (103,187,763)

196. 31,861,477 14,464,736
Net increase (decrease) in net assets resulting from
share transactions

197. 45,915,075 33,475,257
198.TOTAL INCREASE (DECREASE) IN NET ASSETS

199.NET ASSETS 200. 201.

202. Beginning of period 445,505,735 412,030,478

203. End of period $ 491,420,810 $ 445,505,735

204.OTHER INFORMATION 206. 207.
205.Shares

208. Sold 10,699,056 8,156,947

209. Issued in reinvestment of distributions from: 1,581,995 1,272,319
Net interest income

210. 1,086,139 -
Net realized gain

211. Redeemed (10,918,886) (8,274,122)

212. Net increase (decrease) 2,448,304 1,155,144

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
213. YEAR NINE MONTHS YEARS ENDED APRIL 30,
ENDED ENDED
JANUARY 31, JANUARY 31,
1993

214. 1994 (NOTE 1) 1992 1991 1990

215.SELECTED PER-SHARE DATA

216.Net asset value, $ 12.660 $ 12.100 $ 11.750 $ 11.370 $ 11.640
beginning of
period

217.Income from .714 .580 .773 .789 .806
Investment
Operations
Net interest
income

218. Net realized .850 .560 .350 .380 (.270)
and
unrealized gain
(loss) on
investments

219. Total from 1.564 1.140 1.123 1.169 .536
investment
operations

220.Less (.714) (.580) (.773) (.789) (.806)
Distributions
From net interest
income

221. From net (.460) - - - -
realized
gain on
investments

222. Total (1.174) (.580) (.773) (.789) (.806)
distributions

223.Net asset value, $ 13.050 $ 12.660 $ 12.100 $ 11.750 $ 11.370

end of period

224.TOTAL RETURN (dagger) 12.70 9.60% 9.80 10.59 4.62
% % % %

225.RATIOS AND SUPPLEMENTAL
DATA

226.Net assets, $ 491,421 $ 445,506 $ 412,030 $ 386,169 $ 381,276
end of period
(000 omitted)

227.Ratio of .58 .61% .61 .59 .61
expenses to % * % % %
average net
assets

228.Ratio of net 5.45 6.08% 6.52 6.81 6.87
interest income to % * % % %
average net assets

229.Portfolio 70 45% 30 45 34
turnover % * % % %
rate

</TABLE>

* ANNUALIZED
(dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO

PERFORMANCE: THE BOTTOM LINE

New York Tax-Free Insured 12.36% 58.94% 112.26%

Lehman Brothers Municipal Bond Index 12.26% 61.39% n/a

Average New York Insured
Tax-Exempt Municipal Bond Fund 12.28% 58.44% n/a

Consumer Price Index 2.52% 20.73% 35.00%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, one year, five years, or since the fund started on October 11,
1985. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, you would end up with $1,050. You can compare these
figures to the performance of the Lehman Brothers Municipal Bond Index - a
broad gauge of the municipal bond market. To measure how the fund stacked
up against its peers, you can look at the average New York insured
tax-exempt municipal bond fund, which reflects the performance of only 7
New York insured tax-exempt municipal bond funds tracked by Lipper
Analytical Services. Both benchmarks include reinvested dividends and
capital gains, if any. Comparing the fund's performance to the consumer
price index helps show how your fund did compared to inflation. (The
periods covered by the CPI numbers are the closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

New York Tax-Free Insured 12.36% 9.71% 9.47%

Lehman Brothers Municipal Bond Index 12.26% 10.05% n/a

Average New York Insured
Tax-Exempt Municipal Bond Fund 12.28% 9.46% n/a

Consumer Price Index 2.52% 3.84% 3.62%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
10/31/85 10000.00 10000.00
11/30/85 10183.61 10358.70
12/31/85 10408.26 10449.75
01/31/86 10938.76 11065.24
02/28/86 11401.72 11503.98
03/31/86 11420.78 11507.66
04/30/86 11366.43 11516.41
05/31/86 11126.78 11328.92
06/30/86 11241.32 11437.00
07/31/86 11280.57 11506.42
08/31/86 11775.80 12021.56
09/30/86 11753.07 12051.74
10/31/86 12015.65 12259.87
11/30/86 12225.65 12502.74
12/31/86 12212.12 12468.23
01/31/87 12491.38 12843.65
02/28/87 12576.42 12906.84
03/31/87 12431.06 12770.03
04/30/87 11576.66 12129.23
05/31/87 11442.64 12069.07
06/30/87 11603.31 12423.41
07/31/87 11732.19 12550.13
08/31/87 11775.31 12578.37
09/30/87 11120.23 12114.61
10/31/87 11370.22 12157.49
11/30/87 11628.82 12474.92
12/31/87 11820.04 12655.94
01/31/88 12396.94 13106.74
02/29/88 12487.73 13245.28
03/31/88 12112.04 13090.97
04/30/88 12168.06 13190.46
05/31/88 12186.57 13152.34
06/30/88 12394.33 13344.76
07/31/88 12460.58 13431.77
08/31/88 12492.96 13443.59
09/30/88 12755.41 13686.92
10/31/88 13117.11 13928.49
11/30/88 12907.17 13800.91
12/31/88 13149.63 13942.09
01/31/89 13320.24 14230.41
02/28/89 13155.88 14068.04
03/31/89 13127.71 14034.42
04/30/89 13512.30 14367.60
05/31/89 13800.92 14666.01
06/30/89 13963.89 14865.18
07/31/89 14075.51 15067.49
08/31/89 13943.16 14919.98
09/30/89 13879.49 14875.22
10/31/89 14017.02 15056.70
11/30/89 14275.97 15320.19
12/31/89 14341.75 15445.82
01/31/90 14258.23 15373.22
02/28/90 14374.93 15510.04
03/31/90 14403.47 15514.70
04/30/90 14185.89 15402.99
05/31/90 14559.92 15738.78
06/30/90 14691.46 15877.28
07/31/90 14946.99 16110.67
08/31/90 14698.33 15877.07
09/30/90 14711.15 15886.59
10/31/90 14860.91 16174.14
11/30/90 15162.59 16499.24
12/31/90 15229.85 16571.84
01/31/91 15410.16 16793.90
02/28/91 15533.01 16940.01
03/31/91 15558.77 16946.78
04/30/91 15770.78 17172.18
05/31/91 15924.00 17325.01
06/30/91 15920.12 17307.68
07/31/91 16133.36 17518.84
08/31/91 16377.24 17750.09
09/30/91 16563.79 17980.84
10/31/91 16720.82 18142.67
11/30/91 16760.83 18193.46
12/31/91 17128.33 18584.62
01/31/92 17093.27 18627.37
02/29/92 17129.53 18632.96
03/31/92 17128.23 18640.41
04/30/92 17261.08 18806.31
05/31/92 17535.07 19028.22
06/30/92 17837.11 19347.90
07/31/92 18388.48 19928.34
08/31/92 18151.94 19733.04
09/30/92 18237.08 19861.30
10/31/92 17917.89 19666.66
11/30/92 18363.14 20018.70
12/31/92 18594.27 20222.89
01/31/93 18842.01 20457.47
02/28/93 19640.24 21198.03
03/31/93 19407.51 20973.33
04/30/93 19591.45 21185.16
05/31/93 19696.29 21303.80
06/30/93 20026.49 21659.57
07/31/93 20050.65 21687.73
08/31/93 20500.32 22138.84
09/30/93 20752.14 22391.22
10/31/93 20760.61 22433.76
11/30/93 20533.46 22236.34
12/31/93 20976.18 22705.53
01/31/94 21171.47 22964.37
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity New
York Tax-Free Insured Portfolio on October 31, 1985, shortly after the fund
started. As the chart shows, by January 31, 1994, the value of your
investment would have grown to $21,171 - a 111.71% increase on your initial
investment. For comparison, look at how the Lehman Brothers Municipal Bond
Index did over the same period. With dividends reinvested, the same $10,000
would have grown to $22,964 - a 129.64% increase.

Income return 5.63% 6.28% 6.61% 6.78% 6.67%

Capital gain return 2.76% 0.00% 0.00% 0.00% 0.00%
Change in share price 3.97% 3.95% 4.31% 1.30% 0.37%
Total return 12.36% 10.23% 10.92% 8.08% 7.04%
INCOME returns, capital gain returns, and changes in share price are all
part of a bond fund's total return. An income return reflects the dividends
paid by the fund. A capital gain return reflects the amount paid by the
fund to shareholders based on the profits it has from selling bonds that
have grown in value. Both returns assume the dividends or gains are
reinvested. Changes in the fund's share price include changes in the prices
of the bonds owned by the fund.
DIVIDENDS AND YIELD
PERIODS ENDED JANUARY 31, 1994 PAST 30 PAST 6 PAST 1
DAYS MONTHS YEAR

Dividends per share n/a 32.44(cents) 64.81(cents)

Annualized dividend rate n/a 5.19% 5.27%

Annualized yield 4.40% n/a n/a

Tax-equivalent yield 7.82% n/a n/a

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $12.41 over
the past six months and $12.29 over the past year, you can compare the
fund's income over these two periods. The 30-day annualized YIELD is a
standard formula for all funds based on the yields of the bonds in the
fund, averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period. It also
helps you compare funds from different companies on an equal basis. The
tax-equivalent yield shows what you would have to earn on a taxable
investment to equal the fund's tax-free yield, if you're in the 43.71%
combined effective 1994 federal, state and New York City tax bracket.
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Bond investments - including
tax-free issues - provided
historically attractive returns for the
12 months ended January 31, 1994.
Falling interest rates pushed up bond
prices steadily through mid-October,
when the yield on the benchmark
30-year Treasury bond reached a
historic low, at 5.79%. By year-end, a
strengthening economy had fueled
mild inflation fears, which helped
push up the yield on the 30-year
bond to 6.35% by December 31.
Inflation jitters eased in January, and
the yield on the long Treasury
dropped to 6.23% by January 31.
Two factors affected municipal
bonds specifically: on the positive
side, higher federal taxes -
approved in August and discussed
all year - boosted demand. But
record new issuance kept supplies
high, which somewhat dampened
prices. The Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
rose 12.26% during the 12 months
ended January 31, 1994. By
comparison, the Lehman Brothers
Aggregate Bond Index - which
tracks investment-grade taxable
bonds - rose 9.14%, due in part to
poor performance by
mortgage-backed securities.
Globally, falling interest rates and low
inflation drove strong returns in
Europe, Japan, and many of the
emerging markets. The Salomon
Brothers World Government Bond
Index - which includes U.S. issues
- - rose 12.22%, while the J.P.
Morgan Emerging Markets Bond
Index was up 43.06%.
An interview with David Murphy, Former Portfolio Manager of Fidelity
New York Tax-Free Insured Portfolio
Q. DAVID, HOW DID THE FUND DO?
A. For the 12 months ended January 31, 1994, the fund had a total return of
12.36%. That slightly beat the average New York insured tax-exempt
municipal bond fund's return of 12.28%, according to Lipper Analytical
Services.
Q. WHAT MADE THE DIFFERENCE?
A. Having a longer-than-average duration when interest rates were falling
and bond prices were rising helped the fund. Duration measures how much a
bond's price will vary with changes in interest rates. Typically, the
longer the duration, the more a bond's price will rise as interest rates
fall - or fall as interest rates rise. As interest rates fell over the past
year, having a longer duration meant the fund registered bigger price gains
than funds with shorter durations experienced. Even though I worked hard to
extend duration throughout the period, I wasn't always able to do it as
quickly
as I wanted.
Q. WHY WAS THAT?
A. Mainly because the fund had a larger amount of pre-refunded bonds.
Pre-refunding is when an issuer sells new bonds at current interest rates,
invests the proceeds in Treasuries and then uses the Treasuries to pay off
the original bonds at their first call date. When a bond is pre-refunded
its duration shortens. I was simply too slow to sell these bonds and
reinvest in longer duration bonds.
Q. OVER THE LAST SIX MONTHS YOU
INCREASED THE FUND'S INVESTMENTS IN
INTERMEDIATE BONDS WITH MATURITIES
OF 10 TO 20 YEARS. WHAT WAS YOUR
REASON?
A. Many of the bonds in this range were non-callable bonds. Non-callable
bonds can't be prematurely returned to their issuers. That means they have
a longer duration because they trade to their maturity date, rather than a
shorter call date. When interest rates are falling and bond prices are
rising, non-callables tend to do well. Plus, I think this area of the
market is attractive because you get almost the same income as longer
bonds, but without the added risk.
Q. WHAT'S THE ATTRACTION OF TRANSPORTATION BONDS - THE FUND'S LARGEST
SECTOR CONCENTRATION?
A. At the end of the period, 22.3% of the fund was invested in
transportation bonds, up from 18.1% six months ago. That was one sector
where I could find bonds with long durations. Plus, they're usually highly
rated when it comes to their credit quality.
Q. IN WHAT OTHER SECTORS HAVE YOU FOUND OPPORTUNITIES?
A. I slightly increased the fund's stake in state-appropriated bonds to
13.9% at the end of January compared to 11.8% six months ago.
State-appropriated bonds rely on annual appropriations by the state
legislature to make principal and interest payments, and currently they
offer attractive yields. In 1993 the state posted a budget surplus, and is
on target to end this fiscal year with another surplus. Further, the state
has produced more accurate budgets, and has been able to cut some expenses.
I think those are positive trends that should continue, and might lead to
an upgrade of these bonds if conditions are right.
Q. DAVID, CAN YOU TELL US ABOUT THE UPCOMING CHANGES IN THE FUND?
A. As of March 1, I'll be turning over the fund to Norm Lind. Norm is an
experienced manager with a strong record on Fidelity New York Tax-Free High
Yield Portfolio, Spartan New York Municipal High Yield Portfolio, and
Spartan Municipal Income Portfolio. We've worked closely together over the
past several years and share similar outlooks and investment styles. I'm
confident that the fund is in good hands.
Q. SO, WHAT DO YOU AND NORM THINK INVESTORS CAN EXPECT DURING 1994?
A. We both believe that investors should expect more modest returns than we
saw in 1993. Even so, we're optimistic. Higher federal taxes could increase
demand for municipal bonds. At the same time, supply could taper off since
many of the refinancings that could take place already have. Last year, the
total supply of municipals issued was about $290 billion; this year it will
probably be about half of that. Increasing demand and dwindling supply
should bode well for municipal bond prices.

FUND FACTS
GOAL: to provide high current
income exempt from federal,
state and New York City
income taxes by investing
primarily in long-term New
York municipal bonds covered
by insurance
START DATE: October 11, 1985
SIZE: as of January 31, 1994,
over $414 million
MANAGER: Norm Lind, starting
March 1, 1994; manager,
Fidelity New York Tax-Free
High Yield Portfolio, and
Spartan New York Municipal
High Yield Portfolio, since
October 1993; Spartan
Municipal Income Portfolio,
since June 1990
(checkmark)

NORM LIND'S OUTLOOK:
"I think that New York's
economy will continue to slowly
improve, but still lag the nation
as a whole. Overall, it's still a
healthy economy, third in the
nation in per capita income and
the state's fiscal situation
appears to be improving. It
posted a budgetary surplus in
1993, and currently has a
balanced budget based on
conservative assumptions.
"Turning to interest rates, I see
stability over the next several
months. Unless we see a
significant economic downturn,
there's probably little reason for
the Federal Reserve to cut
interest rates. There doesn't
seem to be any real reason for
the Fed to raise rates much
further, either, mainly because
inflation appears to be in check.
In February the Fed raised
short-term interest rates, which
signaled their intention to keep
inflation down. The economy
still isn't recovering that quickly
and job growth is slow. Plus,
there's been no significant
improvement in the world
economy that would cause a
stronger domestic economy.
Because of that, I think interest
rates will remain near where
they are now."
(bullet) Water, sewer and gas
utilities are the fund's second
largest sector concentration at
15.2%. An abundant supply
kept the prices of many of the
bonds in this sector relatively
cheap.
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF JANUARY 31, 1994
% OF FUND'S INVESTMENT % OF FUND'S INVESTMENT
S S
IN THESE SECTORS
6 MONTHS AGO

Transportation 22.3 18.1

Water & Sewer 15.2 15.3

Lease Revenue 13.9 11.8

General Obligation 10.5 11.5

Health Care 10.1 11.5

AVERAGE YEARS TO MATURITY AS OF JANUARY 31, 1994
6 MONTHS AGO

Years 19.5 20.8

AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL OF THE
BONDS IN THE FUND IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF JANUARY 31, 1994
6 MONTHS AGO

Years 7.5 7.4

DURATION SHOWS HOW MUCH A BOND'S PRICE FLUCTUATES WITH CHANGES IN INTEREST
RATES. IF RATES RISE 1%, FOR EXAMPLE, THE SHARE PRICE OF A FUND WITH A
FIVE-YEAR DURATION WILL FALL 5%.
QUALITY DIVERSIFICATION AS OF JANUARY 31, 1994
(MOODY'S RATINGS)
Row: 1, Col: 1, Value: 60.0
Row: 1, Col: 2, Value: 16.3
Row: 1, Col: 3, Value: 17.3
Row: 1, Col: 4, Value: 6.4
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 0.0
Aaa 76.3%
Aa, A 17.3%
Baa 6.4%
Ba, B 0.0%
Non-rated 0.0%
THIS CHART EXCLUDES SHORT-TERM INVESTMENTS. WHERE MOODY'S RATINGS ARE NOT
AVAILABLE, WE HAVE USED S&P RATINGS.
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO

INVESTMENTS/JANUARY 31, 1994
(Showing Percentage of Total Value of Investments)

MUNICIPAL BONDS - 98.7%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 92.7%
Albany County Rfdg. 5% 10/1/12,
(FGIC Insured) Aaa $ 2,400,000 $ 2,391,000 012122E3
Albany Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev. Rfdg., Series A, 5.50% 12/1/22,
(FGIC Insured) Aaa 4,750,000 4,904,375 012443CK
Battery Park City Auth. Spl. Oblig.,
Series 1, 7.25% 11/1/16, (MBIA Insured)
(Pre-Refunded to 11/1/94 @ 103) (d) Aaa 5,000,000 5,306,250 07133BBL
Buffalo Impt. 3.25% 2/15/95, (MBIA Insured)
(Non-Callable) Aaa 1,295,000 1,303,094 119674LM
Buffalo Swr. Auth. Rev.:
(Swr. Sys.) Series G:
5.25% 7/1/08, (FGIC Insured) Aaa 6,000,000 6,172,500 119730FY
5% 7/1/12, (FGIC Insured) Aaa 2,400,000 2,385,000 119730FZ
Series D, 7.625% 7/1/06,
(AMBAC Insured)
(Pre-Refunded to 7/1/96 @ 103) (d) Aaa 325,000 366,031 119730DX
Cherry Valley Springfield Central School
Dist. Unltd. Tax:
7.80% 5/1/14, (MBIA Insured) Aaa 435,000 586,706 164771BB
7.80% 5/1/15, (MBIA Insured) Aaa 435,000 591,056 164771BC
7.80% 5/1/16, (MBIA Insured) Aaa 435,000 591,600 164771BD
7.80% 5/1/17, (MBIA Insured) Aaa 435,000 595,406 164771BE
7.80% 5/1/18, (MBIA Insured) Aaa 434,000 597,835 164771BF
Clifton Park (N.Y. Water Auth.) Sys. Rev.
5% 10/1/26, (FGIC Insured) Aaa 4,000,000 3,900,000 187125BF
Erie County Wtrwks. Auth. Wtr. Rev. Rfdg.:
(Fourth Resolution) 0% 12/1/17,
(AMBAC Insured) Aaa 1,210,000 220,825 295101LE
Series A, 6% 12/1/08, (AMBAC Insured)
(Escrowed to Maturity) (d) Aaa 1,000,000 1,116,250 295101KC
Metropolitan Trans. Auth. Svc. Contract
Commuter Facs. Rev. Rfdg. Series L,
7.50% 7/1/17, (MBIA Insured) Aaa 4,000,000 4,580,000 592597PU
Metropolitan Trans. Auth. Svc. Contract Trans.
Facs. Series L, 7.50% 7/1/17,
(AMBAC Insured) Aaa 455,000 520,975 592597PX
Metropolitan Trans. Auth. Trans. Facs. Rev.:
Rfdg., Series N:
0% 7/1/11, (FGIC Insured) Aaa 5,980,000 2,414,425 592598WT
0% 7/1/12, (FGIC Insured) Aaa 8,700,000 3,327,750 592598WV
Series J, 5.50% 7/1/22, (FGIC Insured) Aaa 2,500,000 2,546,875
592598QR
Series M, 5.50% 7/1/11, (FGIC Insured) Aaa 3,750,000 3,862,500
592598TK
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Assistance Corp.,
Series 57, 7.25% 7/1/08, (MBIA Insured) Aaa $ 500,000 $ 541,250 626190RW
Nassau County Gen. Impt., Series M,
4.90% 8/1/94, (FGIC Insured) Aaa 2,000,000 2,025,000 6316535J
Nassua County Gen. Oblig. Unltd. Tax,
Series N, 6.125% 10/15/11,
(AMBAC Insured) Aaa 1,010,000 1,107,213 6316544X
Nassau County Rfdg. (Combined Swr. Dists.):
Series B, 2.90% 5/1/95, (FGIC Insured) (f) Aaa 1,000,000 1,000,000
63165MAV
Series G, 3.20% 1/15/95, (MBIA Insured) Aaa 3,000,000 3,007,500
6316534G
Nassau County (Combined Swr. Dists.)
Unltd. Tax, Series A, 7.20%
5/1/10, (FGIC Insured)
(Pre-Refunded to 5/1/96 @ 103) (d) Aaa 310,000 344,488 631654SD
New York City Gen. Oblig., Series E,
5.70% 5/15/04, (FGIC Insured) Aaa 7,000,000 7,603,750 649652RU
New York City Gen. Oblig. Short Rites,
Series C, 8.34548% 8/1/03 (c) Baa1 6,600,000 7,408,500 649652MT
New York City Hsg. Dev. Corp. Mtg. Rev.:
(Multi-Family) 1st Series, 8.50% 5/1/07,
(FGIC Insured) Aaa 465,000 501,619 649702KU
Rfdg. (Royal Charter Prop. East, Inc. Proj.)
Series 1988-1, 7.375% 4/1/17,
(MBIA Insured) Aaa 9,030,000 9,560,513 649702NL
New York City Muni. Wtr. Fin. Auth. Wtr. &
Swr. Sys. Rev.:
Series A, 5% 6/15/17, (FGIC Insured) Aaa 3,700,000 3,570,500 649706KH
Series C, 6.20% 6/15/21,
(AMBAC Insured) Aaa 2,250,000 2,424,375 649706VV
Series D, 5.75% 6/15/18, (FGIC Insured) Aaa 11,575,000 11,994,594
649706XJ
New York City Trust Cultural Resource Rev.
Rfdg. (Museum of Modern Art)
5.40% 1/1/12, (AMBAC Insured) Aaa 1,400,000 1,438,500 649717FF
New York State Dorm. Auth. Rev.:
Rfdg. (City Univ.) Series B:
8.20% 7/1/13, (AMBAC Insured) Aaa 1,500,000 1,800,000 649831L9
6% 7/1/14, (Cap. Guaranty Insured) Aaa 3,000,000 3,315,000 649834KY
Rfdg. (New York State Univ. Edl. Facs.)
Series A, 5.50% 5/15/07,
(FGIC Insured) Aaa 6,700,000 7,076,875 649834SF
Rfdg. (State Univ. Edl. Facs.) Series A:
5.50% 5/15/09, (AMBAC Insured) Aaa 4,000,000 4,185,000 649834DP
5.50% 5/15/13 Baa1 1,500,000 1,511,250 649834AQ
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev.: - continued
Rfdg. (State Univ. Edl. Facs.) Series A: - continued
5.50% 5/15/13, (AMBAC Insured) Aaa $ 8,500,000 $ 8,776,250 649834DQ
5.25% 5/15/15 Baa1 2,500,000 2,437,500 649834AS
5.25% 5/15/15, (AMBAC Insured) Aaa 2,500,000 2,562,500 649834DR
(Children Assoc., Inc.) 7.60% 7/1/18,
(MBIA Insured) Aaa 1,500,000 1,723,125 649831D4
(City Univ.) Series F, 5.25% 7/1/06,
(FGIC Insured) Aaa 8,225,000 8,554,000 649834RH
(Colgate Univ.) 5.625% 7/1/13,
(FGIC Insured) Aaa 550,000 578,875 6498325X
(Consolidated City Univ. Sys. Series A,
5.75% 7/1/18,
(Cap. Guaranty Insured) Aaa 5,000,000 5,443,750 649834KN
(Glen Cove Commty. Hosp.) 9.875%
7/1/12, (MBIA Insured)
(Pre-Refunded to 7/1/94 @ 103) (d) Aaa 450,000 477,563 649831JB
(Ideal Senior Living Hsg.) 7.625% 8/1/28,
(MBIA Insured) Aaa 2,000,000 2,340,000 649831J7
(Ithaca College) 6.25% 7/1/21,
(MBIA Insured) Aaa 1,500,000 1,629,375 649832PV
(Manhattanville College) 0% 7/1/10,
(MBIA Insured) Aaa 2,175,000 924,375 649834BT
(New York Pub. Library) 5.875% 7/1/22,
(MBIA Insured) Aaa 2,900,000 3,059,500 649832Q7
(New York Univ.) 6% 7/1/15,
(FGIC Insured) Aaa 2,000,000 2,145,000 649832QW
(New York Univ. Law School) 7.625%
7/1/09, (MBIA Insured) Aaa 3,090,000 3,607,575 649831L8
(Rochester Gen. Hosp.) 8.75% 2/1/25,
(FHA Guaranteed) (MBIA Insured)
(Pre-Refunded to 8/1/95 @ 102) (d) Aaa 450,000 494,438 649831PE
(Society Hosp. Proj.) 9.75% 7/1/15 Baa1 2,000,000 2,082,500 649831HC
(State Univ. Security) 7.25% 5/15/15,
(FGIC Insured)
(Pre-Refunded to 5/15/00 @ 102) (d) Aaa 7,500,000 8,953,125 6498315M
(Union College) 5.75% 7/1/10,
(FGIC Insured) Aaa 2,800,000 2,975,000 649832Z3
(Vassar College) 7.25% 7/1/15 Aa 2,400,000 2,805,000 649832BV
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev. (Central Hudson Gas)
Series 1984 B, 7.375% 10/1/14,
(FGIC Insured) AAA 2,250,000 2,610,000 649845AW
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Envir. Facs. Corp. Poll. Cont. Rev.:
(State Wtr. Revolving Fund) (City Proj.)
Series A, 7% 6/15/12 Aa $ 1,000,000 $ 1,171,250 649850DY
Series E, 6.875% 6/15/10 Aa 1,000,000 1,157,500 649850JM
New York State Gen. Oblig.:
7.10% 3/1/10, (AMBAC Insured) Aaa 1,720,000 1,967,250 649786MU
Unltd. Tax 7.125% 11/15/10 A 2,670,000 3,110,550 649786NU
New York State Local Gov't. Assistance Corp.:
Rfdg., Series C, 0% 4/1/14 A 10,000,000 3,337,500 649876JM
Rfdg., Series C, 5.50% 4/1/17 A 10,000,000 10,250,000 649876JN
RIBS 7.50% 4/1/21 (c) A 2,000,000 2,002,500 649876JQ
Series A, 6.50% 4/1/20 A 2,500,000 2,737,500 649876AS
Series C:
6.50% 4/1/15 A 1,200,000 1,297,500 649876CX
5.50% 4/1/22 A 2,000,000 2,005,000 649876GR
Series D, 6.75% 4/1/21
(Pre-Refunded to 4/1/02 @ 102) (d) A 2,250,000 2,666,250 649876EA
New York State Med. Care Facs. Fin. Agcy. Rev.:
(Beth Israel Med. Ctr.) Series A, 7.50%
11/1/10, (MBIA Insured) Aaa 4,000,000 4,710,000 64988HEF
(Health Insurance Plan Greater New York)
Series B, 8.50% 11/1/15, (AMBAC Insured)
(Pre-Refunded to 12/1/97 @ 100) (d) Aaa 4,555,000 5,346,431 649881LP
(Hosp. Mtg.) Series 1985 A,
9.25% 1/15/25, (FHA Guaranteed) Aa 667,000 715,358 649881HY
(Insured Hosp.) Series 1984 C,
9.50% 1/15/24, (FHA Guaranteed) Aa 465,000 476,625 649881HK
(Long-Term Health Care) Series A, 6.80%
11/1/14, (Cap. Guaranty Insured) Aaa 1,250,000 1,418,750 64988HVZ
(Mary Immogene Basset Hosp.)
7.125% 11/1/20, (MBIA Insured) Aaa 2,500,000 2,890,625 64988HKP
(Mental Health Svcs. Facs.):
Series A:
5.50% 8/15/21, (FGIC Insured) Aaa 5,500,000 5,582,500 64988HUM
5.80% 8/15/22, (AMBAC Insured) Aaa 3,870,000 4,039,313 64988H5W
Series D, 7.40% 2/15/18 Baa1 1,810,000 2,076,975 64988HSR
(Montefiore Med. Ctr.) 7.25% 2/15/24,
(MBIA Insured) Aaa 2,000,000 2,275,000 64988HBJ
(North Shore Univ. Hosp. Mtg. Proj.)
Series A, 7.20% 11/1/20,
(MBIA Insured) Aaa 6,000,000 6,937,500 64988HHD
(Bronx-Lebanon Hosp.) Series A, 7.10% 2/15/27,
(MBIA Insured) Aaa 2,050,000 2,244,750 649881TZ
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Med. Care Facs. Fin. Agcy. Rev.: - continued
(St. Francis Hosp. Proj.) Series A,
7.625% 11/1/21, (FGIC Insured) Aaa $ 2,000,000 $ 2,315,000 649881D8
(St. Mary's Private Insured Prog.)
8.375% 11/1/14, (AMBAC Insured) Aaa 9,450,000 10,395,000 649881NF
New York State Pwr., Series H,
7.407% 6/1/07 (c) Aa 5,000,000 5,043,750 91828FBB
New York State Pwr. Auth. & Gen. Purp. Rev.:
Rfdg., Series CC, 5.25% 1/1/18 Aa 2,000,000 1,995,000 649892C3
Series Y, 6.75% 1/1/18 Aa 2,000,000 2,237,500 649892WV
New York State Tollway Auth. Gen. Rev.:
Series A:
5.75% 1/1/12, (FGIC Insured) Aaa 6,000,000 6,262,500 650009DW
5.50% 1/1/23, (FGIC Insured) Aaa 17,380,000 17,662,425 650009DS
Series B, 5% 1/1/20, (MBIA Insured) Aaa 5,000,000 4,875,000 650009EX
New York State Urban Dev. Corp. Rev. Rfdg.
(Correctional Facs.):
7.75% 1/1/00, (MBIA Insured)
(Pre-Refunded to 1/1/96 @ 102) (d) Aaa 1,500,000 1,653,750 650033DU
5.25% 1/1/18, (AMBAC Insured) Aaa 4,980,000 4,980,000 650033ZH
Niagara Falls Bridge Commission Toll Rev.,
Series B, 5.25% 10/1/15, (FGIC Insured) Aaa 7,200,000 7,398,000
653403BJ
North Hempstead Pub. Impt. Unltd. Tax, Series A:
7.25% 4/1/16, (FGIC Insured)
(Pre-Refunded to 4/1/99 @ 102) (d) Aaa 550,000 644,188 659665JG
7.25% 4/1/17, (FGIC Insured)
(Pre-Refunded to 4/1/99 @ 102) (d) Aaa 550,000 645,563 659665JK
Oyster Bay Rfdg. Unltd. Tax 5.70% 2/15/06,
(MBIA Insured) Aaa 1,000,000 1,097,500 692159ST
Rochester Gen. Oblig. 4.70% 8/15/94,
(FGIC Insured) Aaa 3,375,000 3,417,188 771690YF
Suffolk County Wtr. Auth.:
7.375% 6/1/12, (AMBAC Insured) Aaa 255,000 292,613 864779Z7
6% 6/1/17, (MBIA Insured) (f) Aaa 3,500,000 3,889,375 8647792P
Suffolk County Wtr. Auth. Wtrwks. Rev. Rfdg.:
(Sr. Lien) 5.10% 6/1/10, (MBIA Insured) Aaa 4,500,000 4,561,875
864779T7
(Sub. lien) 5.10% 6/1/13, (MBIA Insured) Aaa 2,000,000 1,995,000
864779U6
Series B, 5.625% 6/1/16,
(AMBAC Insured) Aaa 9,160,000 9,446,250 864779J6
Triborough Bridge & Tunnel Auth. Rev.:
Rfdg. (Gen. Purp.) Series Y, 5.50% 1/1/17 Aa 9,025,000 9,442,406
896029YE
Rfdg. (Spl. Oblig.):
5.50% 1/1/17, (AMBAC Insured) (e) Aaa 8,455,000 8,655,806 896033LB
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
Triborough Bridge & Tunnel Auth. Rev.: - continued
(Convention Ctr. Proj.) Series E,
7.25% 1/1/10 Baa1 $ 1,700,000 $ 2,046,375 896027CM
(Gen. Purp.) Series X, 6.625% 1/1/12 Aa 6,450,000 7,578,750 896029XJ
Series 1991 A, 6.625% 1/1/17,
(MBIA Insured) Aaa 4,725,000 5,256,563 896033HY
Series B, 6.875% 1/1/15,
(AMBAC Insured) (e) Aaa 2,000,000 2,260,000 896033JV
Series B, 6.875% 1/1/15,
(FGIC Insured) Aaa 500,000 565,000 896033JV
Series R, 6% 1/1/20, (MBIA Insured)
(Pre-Refunded to 1/1/00 @ 100) (d) Aaa 1,710,000 1,883,138 896029XV
Westchester County Unltd. Tax, Series B,
4.20% 12/15/94 Aaa 3,795,000 3,851,924 957365G4
385,639,897
NEW YORK & NEW JERSEY - 2.7%
New York & New Jersey Port Auth.:
Consolidated 53rd Series,
8.70% 7/15/20 A1 3,500,000 3,819,374 733580CF
Consolidated 67th Series,
6.875% 1/1/25 A1 2,500,000 2,793,750 733580JA
Consolidated 81st Series,
5.625% 8/1/14 A1 4,230,000 4,393,912 733580UV
11,007,036
PUERTO RICO - 3.3%
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.:
Rfdg., Series N:
7% 7/1/07 Baa1 2,150,000 2,448,312 745268HJ
7.125% 7/1/14 Baa1 1,865,000 2,081,805 745268JT
Rfdg., Series O, 7.125% 7/1/14 Baa1 1,500,000 1,674,374 745268JU
Series P, 7% 7/1/21 Baa1 2,080,000 2,363,400 745268LL
Puerto Rico Tel. Auth. Rev., 7.16% 1/1/03,
(AMBAC Insured) (c) Aaa 5,000,000 5,193,750 745297HT
13,761,641
TOTAL MUNICIPAL BONDS
(Cost $377,188,782) 410,408,574
MUNICIPAL NOTES (A) - 1.3%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 1.3%
New York City Gen. Oblig., VRDN:
Series 1993 B, 2.10%, (FGIC Insured) VMIG1 $ 1,500,000 $ 1,500,000
649660LH
Series 1992 B, 2.10%, (FGIC Insured) VMIG1 4,100,000 4,100,000
649660LK
TOTAL MUNICIPAL NOTES
(Cost $5,600,000) 5,600,000
TOTAL INVESTMENTS - 100%
(Cost $382,788,782) $ 416,008,574

FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SELL
30 U.S. Treasury Bond Futures Contracts March 1994 $ 3,514,688 $ (39,649)
THE VALUE OF FUTURES CONTRACTS SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.7%

SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate
at period end.
(b) Standard & Poor's Corporation credit ratings are used in the
absence of a rating by Moody's Investors Service, Inc.
(c) Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate. The price will be more
volatile than the price of a comparable fixed rate security.
(d) Security collateralized by an amount sufficient to pay interest and
principal.
(e) A portion of the Security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $10,450,000.
(f) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
INCOME TAX INFORMATION
At January 31, 1994, the aggregate cost of investment securities for income
tax purposes was $382,788,782. Net unrealized appreciation (depreciation)
aggregated $33,219,792 of which $33,220,499 related to appreciated
investment securities and $707 related to depreciated investment
securities.
The fund hereby designates $1,571,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
At January 31, 1994, the fund was required to defer $752,000 of losses on
futures contracts and options.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 92.4% AAA, AA, A 96.2%
Baa 6.3% BBB 2.4%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.0%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investments, is as follows:
Transportation 22.3%
Water & Sewer 15.2
Lease Revenue 13.9
General Obligation 10.5
Health Care 10.1
Others
(individually less than 10%) 28.0
TOTAL 100.0%
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1994

230.ASSETS 231. 232.

233.Investment in securities, at value (cost 234. $ 416,008,574
$382,788,782) (Notes 1 and 2) - See accompanying
schedule

235.Cash 236. 3,744,400

237.Receivable for investments sold 238. 2,109,719

239.Interest receivable 240. 4,544,489

241.Receivable for daily variation on futures contracts 242. 8,438

243. 244.TOTAL ASSETS 245. 426,415,620

246.LIABILITIES 247. 248.

Payable for investments purchased $ 6,156,499
Regular delivery

Delayed delivery (Note 2) 4,880,812

249.Dividends payable 548,450 250.

251.Accrued management fee 140,561 252.

253.Other payables and accrued expenses 60,521 254.

255. 256.TOTAL LIABILITIES 257. 11,786,843

258.259.NET ASSETS 260. $ 414,628,777

261.Net Assets consist of (Note 1): 262. 263.

264.Paid in capital 265. $ 379,774,309

266.Accumulated undistributed net realized gain (loss) 267. 1,674,325
on investments

268.Net unrealized appreciation (depreciation) on: 269. 270.

271. Investment securities 272. 33,219,792

273. Futures contracts 274. (39,649)

275.276.NET ASSETS, for 33,719,078 shares 277. $ 414,628,777
outstanding

278.279.NET ASSET VALUE, offering price and 280. $12.30
redemption price per share ($414,628,777 (divided by)
33,719,078 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JANUARY 31, 1994

281.282.INTEREST INCOME 283. $ 23,278,959

284.EXPENSES 285. 286.

287.Management fee (Note 4) $ 1,638,218 288.

289.Transfer agent, accounting and custodian fees and 594,678 290.
expenses (Note 4)

291.Non-interested trustees' compensation 1,124 292.

293.Registration fees 6,305 294.

295.Audit 37,123 296.

297.Legal 4,980 298.

299.Reports to shareholders 7,460 300.

301.Miscellaneous 2,474 302.

303. 304.TOTAL EXPENSES 305. 2,292,362

306.307.NET INTEREST INCOME 308. 20,986,597

309.REALIZED AND UNREALIZED GAIN (LOSS) ON 311. 312.
INVESTMENTS
(NOTES 1 AND 3)
310.Net realized gain (loss) on:

313. Investment securities 15,905,258 314.

315. Futures contracts 155,648 16,060,906

316.Change in net unrealized appreciation 317. 318.
(depreciation) on:

319. Investment securities 8,410,795 320.

321. Futures contracts (39,649) 8,371,146

322.323.NET GAIN (LOSS) 324. 24,432,052

325.326.NET INCREASE (DECREASE) IN NET ASSETS 327. $ 45,418,649
RESULTING FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR NINE MONTHS
ENDED ENDED
JANUARY 31, JANUARY 31, 1993
1994 (NOTE 1)

328.INCREASE (DECREASE) IN NET ASSETS

329.Operations $ 20,986,597 $ 14,624,917
Net interest income

330. Net realized gain (loss) on investments 16,060,906 3,203,807

331. Change in net unrealized appreciation 8,371,146 11,401,897
(depreciation)
on investments

332. 45,418,649 29,230,621
333.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM
OPERATIONS

334.Distributions to shareholders from: (20,986,597) (14,624,917)
Net interest income

335. Net realized gain (10,212,037) -

336. (31,198,634) (14,624,917)
337.TOTAL DISTRIBUTIONS

338.Share transactions 111,811,958 93,896,554
Net proceeds from sales of shares

339. Reinvestment of distributions from: 16,228,586 11,491,283
Net interest income

340. 8,285,995 -
Net realized gain

341. Cost of shares redeemed (95,222,561) (69,988,525)

342. 41,103,978 35,399,312
Net increase (decrease) in net assets resulting from
share transactions

343. 55,323,993 50,005,016
344.TOTAL INCREASE (DECREASE) IN NET ASSETS

345.NET ASSETS 346. 347.

348. Beginning of period 359,304,784 309,299,768

349. End of period $ 414,628,777 $ 359,304,784

350.OTHER INFORMATION 352. 353.
351.Shares

354. Sold 9,106,343 8,066,928

355. Issued in reinvestment of distributions from: 1,318,564 986,383
Net interest income

356. 678,068 -
Net realized gain

357. Redeemed (7,748,391) (6,015,892)

358. Net increase (decrease) 3,354,584 3,037,419

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
359. YEAR NINE MONTHS YEARS ENDED APRIL 30,
ENDED ENDED
JANUARY 31, JANUARY 31,
1993

360. 1994 (NOTE 1) 1992 1991 1990

361.SELECTED PER-SHARE DATA

362.Net asset value, $ 11.830 $ 11.320 $ 10.990 $ 10.540 $ 10.710
beginning of
period

363.Income from .648 .509 .684 .696 .701
Investment
Operations
Net interest
income

364. Net realized .780 .510 .330 .450 (.170)
and
unrealized gain
(loss) on
investments

365. Total from 1.428 1.019 1.014 1.146 .531
investment
operations

366.Less (.648) (.509) (.684) (.696) (.701)
Distributions
From net interest
income

367. From net (.310) - - - -
realized
gain on
investments

368. Total (.958) (.509) (.684) (.696) (.701)
distributions

369.Net asset value, $ 12.300 $ 11.830 $ 11.320 $ 10.990 $ 10.540

end of period

370.TOTAL RETURN (dagger) 12.36 9.16% 9.45 11.17 4.99
% % % %

371.RATIOS AND SUPPLEMENTAL
DATA

372.Net assets, $ 414,629 $ 359,305 $ 309,300 $ 246,842 $ 206,416
end of period
(000 omitted)

373.Ratio of .58 .61%* .62 .64 .65
expenses to % % % %
average net
assets

374.Ratio of net 5.31 5.73%* 6.17 6.45 6.47
interest income to % % % %
average net assets

375.Portfolio 48 39%* 17 33 18
turnover % % % %
rate

</TABLE>

* ANNUALIZED
(dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO

PERFORMANCE: THE BOTTOM LINE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period and reinvestment of its dividends (or income). Yield
measures the income paid by a fund. Since a money market fund tries to
maintain a $1 share price, yield is an important measure of performance. If
Fidelity had not reimbursed certain fund expenses during the periods shown,
the total returns, dividends and yields would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

New York Tax-Free Money Market 1.84% 19.85% 46.94%

Consumer Price Index 2.52% 20.73% 40.98%

Average New York
Tax-Free Money Market Fund 1.76% 19.83% n/a

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, one year, five years or since the fund started on July 6, 1984.
For example, if you invested $1,000 in a fund that had a 5% return over the
past year, you would end up with $1,050. Comparing the fund's performance
to the consumer price index (CPI) helps show how your investment did
compared to inflation. To measure how the fund stacked up against its
peers, you can compare its return to the average New York tax-free money
market fund's total return. This average currently reflects the performance
of 36 New York tax-free money market funds tracked by IBC/Donoghue. (The
periods covered by the CPI and IBC/Donoghue numbers are the closest
available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

New York Tax-Free Money Market 1.84% 3.69% 4.10%

Consumer Price Index 2.52% 3.84% 3.64%

Average New York
Tax-Free Money Market Fund 1.76% 3.68% n/a

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1/31/93 4/30/93 7/31/93 10/31/93 1/31/94

New York Tax-Free 1.97% 1.79% 1.93% 1.96% 1.82%
Money Market

Average New York 1.87% 1.73% 1.86% 1.85% 1.67%
Tax-Free Money Market
Fund

New York Tax-Free 3.50% 3.18% 3.43% 3.48% 3.23%
Money Market Tax-equivalen
t

Average All Taxable 2.74% 2.62% 2.65% 2.66% 2.68%
Money Market Fund

</TABLE>

Row: 1, Col: 1, Value: 1.97
Row: 1, Col: 2, Value: 1.87
Row: 2, Col: 1, Value: 1.79
Row: 2, Col: 2, Value: 1.73
Row: 3, Col: 1, Value: 1.93
Row: 3, Col: 2, Value: 1.86
Row: 4, Col: 1, Value: 1.96
Row: 4, Col: 2, Value: 1.85
Row: 5, Col: 1, Value: 1.82
Row: 5, Col: 2, Value: 1.67
New York
Tax-Free
Money Market
Average New York
Tax-Free Money
Market Fund
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the average tax-free money market fund. Or you can
look at the fund's tax-equivalent yield, which is based on a combined
effective 1994 federal, state and New York City income tax rate of 43.71%.
The tax-equivalent figures are useful in seeing how the fund stacked up
against the average taxable money market fund as tracked by IBC/Donoghue.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS REFLECT PAST RESULTS RATHER
THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. And there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jan Bradburn,
Portfolio Manager of Fidelity New
York Tax-Free Money Market Portfolio
Q. JAN, WHAT HAS THE SHORT-TERM SIDE OF THE MARKET BEEN LIKE OVER THE PAST
12 MONTHS?
A. Short-term interest rates have remained pretty stable. Both the federal
funds rate - what banks charge each other for overnight loans - and the
discount rate - what the Federal Reserve charges member banks - have been
at or near 3% since the fall of 1992. Inflation wasn't a big issue either,
despite brief scares last spring and again in November. Supply and demand
factors had a much bigger effect on how I managed the fund than movements
in interest rates.
Q. WHY?
A. Last fall, the short-term market experienced an unusually strong surge
in supply. This glut of new securities forced issuers to offer very
attractive yields, which provided enticing buying opportunities. For
example, the fund's investments usually have yields that are about 68 to
72% of Treasuries with similar maturities. But last fall, many of the
issues on the market had yields that were 80 to 85% of comparable
Treasuries. I stocked up, which caused the fund's average maturity to
lengthen from 68 days at the end of July to 80 days at the end of October.
Then supply began to dry up, and I began to worry about the Fed possibly
triggering a rise in interest rates. I let the average maturity roll back
down to 64 days by the end of January.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on January 31, 1994 was 1.82%, down from
1.97% a year ago. That reflects the general drop in short-term interest
rates over the past year. The latest yield translates into a tax-equivalent
yield of 3.23% for investors in the 43.71% combined effective 1994 federal,
state and New York City tax bracket. The fund's total return - which
assumes reinvestment of monthly dividends - for the 12 months ended January
31 was 1.84%. The average New York tax-free money market fund had a total
return of 1.76%.
Q. WHAT AFFECTED PERFORMANCE?
A. I kept about a 20% stake in simple derivatives over the last six months,
which helped the fund. These issues combine a long-term municipal bond with
a "put," or an option to sell to a third party, typically a bank. The end
product is an investment that pays a short-term variable interest rate and
can be put on short notice, usually seven days. It acts much like any other
variable rate demand note the fund might own, with one key difference: the
yield is slightly higher, a fact that has more to do with the added
complexity of these instruments than added investment risk.
Q. WHAT'S AHEAD FOR THE FUND?
A. During the first week in February, the Fed raised the federal funds rate
to 3.25%, effectively raising all short-term interest rates. Although
currently inflation doesn't look like an increasing concern, I think
there's a good chance the Fed could make more of these "preemptive strikes"
to curb inflation threats before they happen. I'll prepare the fund for
higher rates in two ways: First, I plan to keep the average maturity in a
neutral range, say 50 to 60 days, and second, I'll most likely increase the
fund's investment in variable rate instruments. The coupons (stated
interest rates) on these securities are reset at fixed intervals - for
example, weekly or monthly. So when rates rise, the fund can benefit from
higher coupons at these reset intervals.

FUND FACTS
GOAL: tax-free income and
stability by investing in
high-quality short-term New
York municipal securities
START DATE: July 6, 1984
SIZE: as of January 31, 1994,
over $608 million
MANAGER: Janice Bradburn,
since September 1989;
manager, Fidelity Ohio
Municipal Money Market
Portfolio, since October 1993;
Fidelity Massachusetts
Tax-Free and Spartan
Massachusetts Municipal
Money Market Portfolios,
since January 1992; Spartan
New York Municipal Money
Market Portfolio, since
February 1990
(checkmark)

WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager
is expecting rates to fall.
When the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future
tax or other revenues and
payable from those specific
sources.
TENDER BOND: A variable-rate,
long-term security that gives
the bond holder the option to
redeem the bond at face
value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
1/31/94 7/31/93 1/31/93

0 - 30 59.5 61.4 60.6

31 - 90 15.8 14.2 12.9

91 - 180 12.4 8.4 21.5

181 - 397 12.3 16.0 5.0

WEIGHTED AVERAGE MATURITY
1/31/94 7/31/93 1/31/93

New York Tax-Free
Money Market 64 days 68 days 56 days

Average New York Tax-Free
58 days 67 days 57 days
Money Market Fund*

ASSET ALLOCATION
AS OF 1/31/94 AS OF 7/31/93

Row: 1, Col: 1, Value: 47.2
Row: 1, Col: 2, Value: 10.4
Row: 1, Col: 3, Value: 11.4
Row: 1, Col: 4, Value: 28.0
Row: 1, Col: 5, Value: 3.0
Row: 1, Col: 1, Value: 51.7
Row: 1, Col: 2, Value: 5.7
Row: 1, Col: 3, Value: 8.300000000000001
Row: 1, Col: 4, Value: 31.9
Row: 1, Col: 5, Value: 2.4
Variable rate
demand notes
(VRDNs) 47.2%
Commercial
paper 10.4%
Tender bonds 11.4%
Municipal
notes 28.0%
Other 3.0%
Variable rate
demand notes
(VRDNs) 51.7%
Commercial
paper 5.7%
Tender bonds 8.3%
Municipal
notes 31.9%
Other 2.4%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(Registered trademark)
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO

INVESTMENTS/JANUARY 31, 1994
(Showing Percentage of Total Value of Investments)

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 94.0%
Albany County Ind. Dev. Auth. Ind. Dev. Rev.
(Campus Plaza 7 Inc. Proj.) 2.50%,
LOC Marine Midland Bank, VRDN (b) $ 1,130,000 $ 1,130,000 012131AP
Amsterdam Ind. Dev. Agcy. Ind. Dev. Rev.
(Longview Fiber Co.) Series 1987, 2.20%,
LOC ABN-AMRO Holdings, VRDN 1,880,000 1,880,000 032261AA
Babylon BAN 3% 9/21/94 12,500,000 12,539,025 056201Q6
Battery Park City Auth. Rev. Adj. Rate Trust Ctfs., Series C,
2.35%, (Liquidity Enhancement Sumitomo Bank), VRDN (c) 10,000,000
10,000,000 07133ABM
Bethpage Union Free School District TRAN
3.25% 6/24/94 3,000,000 3,005,662 087599BD
Brockport BAN 2.60% 4/21/94 1,450,000 1,450,000 111709DK
Broome County BAN 2.75% 4/20/94 8,350,000 8,355,239 114727KN
Chautauqua County Ind. Dev. Agcy. Rev., VRDN:
(Greater Buffalo Press, Inc. Proj.)
Series 1984, 2.45%, LOC Mitsui Bank 5,000,000 5,000,000 162543AC
(Red Wing Co. Proj.) Series 1985, 2.45%,
LOC Bankers Trust 3,500,000 3,500,000 162545AD
Chemung County Ind. Dev. Agcy. Rev. (McWayne Inc. Proj.)
Series 1992 A, 2.25%, LOC Amsouth Bank, VRDN 3,000,000 3,000,000
164022AM
Columbia County Ind. Dev. Auth. Ind. Dev. Rev.
(Philip Morris Proj.) 2.30%, VRDN 1,800,000 1,800,000 197520AC
Commack Union Free School Dist. TAN 3.40% 6/30/94 9,200,000 9,218,693
200489CR
Connetquot Central School Dist. TAN:
3.125% 6/30/94 2,500,000 2,503,353 208201AS
3.25% 6/30/94 5,500,000 5,509,897 208201AT
East Meadow Union Free School Dist. TAN
3.25% 6/29/94 2,800,000 2,803,315 273641CB
East Northport Union Free School Dist. TAN
3.25% 6/30/94 2,000,000 2,003,973 666641BR
Erie County Gen. Oblig. 2.30% 2/1/94 (FGIC Insured) 2,700,000 2,700,000
295083F2
Erie County Ind. Dev. Auth. Ind. Dev. Rev., VRDN:
(Elope Co. Project) 2.50%, LOC Marine Midland Bank 2,500,000 2,500,000
295088EZ
(Nat'l. Wire Products) Series 1988 E, 2.50%,
LOC Marine Midland Bank (b) 435,000 435,000 295088EB
(Uniland Dev./Buffalo Campus-B) 2.50%,
LOC Marine Midland Bank (b) 1,465,000 1,465,000 295088DZ
Garden City BAN 3% 12/22/94 3,600,000 3,606,777 365154HG
Guilderland Ind. Dev. Agcy. Rev. (Northeastern Ind. Park)
Series 93 A, 2.10%, LOC Chemical Bank, VRDN 1,200,000 1,200,000
401760AC
Hauppauge Union Free School Dist. TAN
3% 6/29/94 1,000,000 1,001,194 419137CC
Hempstead BAN:
Series D, 3.25% 8/19/94 2,000,000 2,004,536 424669FR
2.75% 6/3/94 3,100,000 3,102,021 424669FN
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Huntington Union Free School Dist. BAN 2.75% 5/11/94 $ 4,450,000 $
4,453,766 446501AZ
Islip Gen. Oblig. BAN 3.40% 8/24/94 2,475,000 2,480,367 464722XT
Islip Ind. Dev. Auth. Rev., VRDN:
(Brentwood Dist. Corp. Facs. Proj.) Series 1984,
2.425%, LOC Bankers Trust 2,000,000 2,000,000 464705AA
(Magu Realty/Creative Bath Proj.) Series 1992,
2.25%, LOC Chemical Bank, VRDN (b) 6,000,000 6,000,000 464748BD
Jefferson County Ind. Dev. Auth. Ind. Dev. Rev.
(Watertown-Carthage Television Corp.) Series 1982,
2.70%, LOC First Nat'l. Bank of Chicago, VRDN 3,300,000 3,300,000
473293AD
Longbeach Union Free School Dist. TAN 2.92% 6/29/94 1,500,000 1,500,112
542535FN
Massapequa Union Free School Dist. TAN
3.25% 6/30/94 1,300,000 1,302,573 576097CN
Metropolitan Transit Auth. Tender Option Bond,
Series D, 2.40%, (Liquidity Enhancement Dai-Ichi
Kangyo Bank), VRDN (c) 14,800,000 14,800,000 592598XB
Metropolitan Transit Auth. Variable Rate Trust, Ctfs.,
Series 1993 B, 2.25%, (Liquidity Enhancement Hong Kong &
Shanghai Banking Corp.), VRDN (c) 23,000,000 23,000,000 91828FAJ
Middle Country Century School Dist. (Centerreach)
TAN 3% 6/30/94 7,000,000 7,007,013 595685EQ
Monroe County Ind. Dev. Auth. Ind. Agcy. Rev.
(Advent Tool & Mold) Series 1990, 2.50%,
LOC Marine Midland Bank, VRDN (b) 1,260,000 1,260,000 610755MD
Nassau County Combined Swr. Dist. Rfdg. Bonds,
Series F, 2.80% 7/1/94, (MBIA Insured) 2,700,000 2,701,070 6316534F
Nassau County Ind. Dev. Auth. Ind. Dev. Rev.
(Cr/PL, Inc. Proj.) Series 1985, 2.50%,
LOC First Nat'l. Bank of Chicago, VRDN 3,930,000 3,930,000 631660AT
Nassau County Puttable Floating Option Tax-Exempt Receipts,
Series PA-27, 2.35%, (Liquidity Enhancement
Merrill Lynch), VRDN (c) 2,425,000 2,425,000 631655EY
New Castle Public Improvement Rfdg. Bonds,
Series 93, 2.75% 6/1/94 1,175,000 1,175,000 643408JU
New Rochelle Urban Renewal BAN 2.58% 3/24/94 (b) 4,000,000 4,000,050
648516SY
New York City Custodial Receipts, Series 1992 A-28,
2.35%, (Liquidity Enhancement Sakura Bank), VRDN (c) 5,000,000 5,000,000
649652MJ
New York City Eagle Trust, Series 1994 C-3,
2.20%, (Liquidity Enhancement Citibank), VRDN (c) 17,000,000 17,000,000
269896DJ
New York City Gen. Oblig. RAN, Series A:
3.25% 4/15/94 16,800,000 16,816,066 6496472M
3.50% 4/15/94 5,500,000 5,507,561 6496472L
New York City Gen. Oblig. VAN, Series 1994 A,
2.15% 4/8/94 5,700,000 5,700,000 6496472Q
New York City Hsg. Dev. Corp. Mtg. Rev.
(Columbus Green Proj.) Series 1985 A, 2.90%,
LOC Sumitomo Trust & Banking, VRDN 1,900,000 1,900,000 649702KV
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Hsg. Dev. Corp. Multi-Family Mtg. Rev.
(Columbus Green Proj.) Series 1993 A, 2.15%,
LOC Citibank, VRDN $ 9,300,000 $ 9,300,000 649702PE
New York City Hsg. Dev. Corp. Rev. (Carnegie Park Proj.)
Series 1984 A, 2.90%, LOC Sumitomo Trust, VRDN 13,000,000 13,000,000
64970T9A
New York City Hsg. Dev. Corp. Spl. Residential Rev.
(Montefiore Med. Ctr. Proj.) Series 1993 A, 2.15%,
LOC Chemical Bank, VRDN 8,400,000 8,400,000 64970TAD
New York City Ind. Dev. Agcy. Facs. Rev. (Church of the
Heavenly Rest Day School Proj.) Series 91, 2.10%,
LOC Barclays Bank, VRDN 6,745,000 6,745,000 64971CBM
New York City Ind. Dev. Agcy. Ind. Dev. Rev. (Nippon
Cargo Airlines Co.) Series 1992, 2.35%,
LOC Ind. Bank of Japan, VRDN (b) 2,400,000 2,400,000 649705FV
New York City Muni. Fin. Auth. Variable Rate Trust Ctfs.,
Series 1992 A, 2.25%, (Liquidity Enhancement
Hong Kong & Shanghai Banking Corp.), VRDN (c) 10,000,000 10,000,000
91828FAC
New York State Dorm. Auth. Rev. Bonds (Education Facs.)
Series C, 5.10% 5/15/94 3,990,000 4,017,482 649833QG
New York State Dorm Auth. Custodial Receipts, Series BTP-26,
2.35%, (Liquidity Enhancement Bankers Trust), VRDN (c) 5,375,000
5,375,000 649833QC
New York State Dorm. Auth. Rev.:
(Sloan-Kettering Cancer Ctr.), VT:
Series 1989 A:
1.90% 2/9/94, LOC Fuji Bank 5,400,000 5,400,000 6509934P
2.35% 2/14/94, LOC Fuji Bank 3,460,000 3,460,000 6509934H
2.30% 3/23/94, LOC Fuji Bank 4,000,000 4,000,000 6509934W
Series 1989 B, 2.40% 3/29/94, LOC Fuji Bank 6,450,000 6,450,000
6509935B
Series 1989 D, 2.40% 3/29/94, LOC Fuji Bank 7,800,000 7,800,000
6509934Y
Series 1987 A:
2.70% 2/2/94, LOC Tokai Bank, CP 2,026,000 2,026,000 6509934X
2.75% 2/4/94, LOC Tokai Bank, CP 3,347,000 3,347,000 6509935A
New York State Energy Research & Dev. Auth. Poll. Cont. Rev.:
(Long Island Lighting Co. Proj.) Series 1985 A,
2.50% 3/1/94, LOC Deutsche Bank, MT 7,550,000 7,550,000 649845CW
(New York State Elec. & Gas Corp.), OT:
Series B, 2.85% 10/15/94, LOC Bankers Trust 4,000,000 3,999,551
649845BL
Series 1984 A, 2.80% 12/1/94, LOC Union Bank
of Switzerland 6,200,000 6,200,000 649845AZ
Series 1985 A:
2.75% 3/1/94, LOC Bank of Switzerland 3,000,000 3,000,564 649845BB
2.50% 3/15/94, LOC Morgan Bank Delaware 2,000,000 2,000,000 649845BC
Series 1985 D, 2.75% 12/1/94,
LOC Union Bank of Switzerland 2,000,000 2,002,431 649845BQ
(Niagra Mohawk Proj.) Series 1985 A, 1.95%,
LOC Toronto-Dominion Bank, VRDN 1,000,000 1,000,000 649845BK
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Energy Research & Dev. Auth. Rev.
(Long Island Lighting Co. Proj.):
Series 93, 2.85% 11/1/94,
LOC Toronto-Dominion Bank, MT $ 5,500,000 $ 5,500,000 649841BU
Series 93A, 2.15%,
LOC Toronto-Dominion Bank, VRDN 16,700,000 16,700,000 649841BV
New York State Environmental Facs. Corp. Solid. Wst.
Rev. Rfdg. (Gen. Elec. Proj.) Series 1992 A, 2.20%
2/23/94, VT (b) 2,200,000 2,200,000 649992EU
New York State Gen. Oblig. Rev., CP:
Series N:
2.20% 3/22/94 9,900,000 9,900,000 649993TA
2.30% 4/26/94 2,500,000 2,500,000 649993TC
Series O:
2.50% 2/24/94 1,500,000 1,500,000 649993ST
2.25% 3/23/94 9,000,000 9,000,000 649993SY
Series P, 2.45% 3/1/94 5,300,000 5,300,000 649993SV
New York State Hsg. Fin. Agcy. Rev.
(Normandie Court II Proj.) Series 1987 A, 2.05%,
LOC Bankers Trust, VRDN 8,200,000 8,200,000 649868MM
New York State Job Dev. Auth. Rev., VRDN:
Series C, 2.40%, LOC Sumitomo Bank 1,230,000 1,230,000 649875KF
Series 1984 C, 2.35%, LOC Sumitomo Bank 635,000 635,000 649875JX
New York State Job Dev. Auth. State Gtd., Series 1984
G-1 to G-55, 2.35%, LOC Sumitomo Bank, VRDN 1,115,000 1,115,000
649875KB
New York State Local Gov't. Assistance Corp. Rev.,
Series 1993 A, 2.05%, LOC Union Bank of Switzerland,
Cr. Suisse, Swiss Bank Corp., VRDN 4,000,000 4,000,000 649876HH
New York State Med. Care Facs. Fin. Agcy. Puttable
Floating Option Tax-Exempt Receipts, Series PA-61, 2.30%,
(Liquidity Enhancement Merrill Lynch), VRDN (c) 3,000,000 3,000,000
64988JKM
New York State Med. Care Facs. Fin. Agcy. Bonds
(Mental Health Svcs. Facs. Proj.)Series A, 2.40%
2/15/94, (AMBAC Insured) 1,235,000 1,235,000 64988H2R
New York State Med. Care Facs. Fin. Agcy. Rev.:
(Lenox Hill Hosp. Proj.) Series A, 2.05%,
LOC Chemical Bank, VRDN 4,500,000 4,500,000 64988HBG
(Montefiore Med. Hosp.) Series A, 10.25% 2/15/94 4,350,000 4,471,187
649881HS
New York State Mtg. Agcy. Puttable
Floating Option Tax-Exempt Receipts, VRDN: (c)
Series PT 15-A, 2.40%, (Liquidity Enhancement
Dai-Ichi Kangyo Bank) 6,880,000 6,880,000 649885C7
Series PT 15-B, 2.40%, (Liquidity Enhancement
Dai-Ichi Kangyo Bank) 4,300,000 4,300,000 649885C9
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Mtg. Agcy. Rev., MT:
Series 31-C, 2.80% 6/1/94 $ 1,095,000 $ 1,095,000 649885WS
Series 32-B, 2.75% 3/1/94 (b) 6,530,000 6,530,000 649885WR
Series 32-C, 2.90% 6/1/94 (b) 6,330,000 6,330,000 649885WT
New York State Pwr. Auth. Rev. & Gen. Purp., 2.70%
3/1/94, OT 18,000,000 18,000,045 649892RG
New York State Variable Rate Trust Ctfs., VRDN: (c)
Series H, 2.10%, (Liquidity Enhancement First Boston) 3,115,467
3,115,468 313039AA
Series V, 2.20%, (Liquidity Enhancement Bankers Trust) 5,100,000
5,100,000 99299EAA
Series 93 G, 2.25%, (Liquidity Enhancement
Hong Kong & Shanghai Banking Corp.) 7,800,000 7,800,000 91828FAZ
Niagara County Ind. Dev. Auth. (Gen. Abrasive Treibacher)
Series 1991, 2.45%, LOC Creditanstalt Bankverein,
VRDN (b) 1,300,000 1,300,000 653358BG
Onondaga County Ind. Dev. Auth. Ind. Dev. Rev.
(Pass & Seymour, Inc. Proj.) Series 1985 B, 2%,
LOC Bank Nat'l. de Paris, VRDN 3,600,000 3,600,000 682750BB
Oswego BAN 3.10% 1/26/95 4,000,000 4,013,374 688698NX
Oswego County Ind. Dev. Agcy. Poll. Cont. Rev. Rfdg.
(Phillip Morris Co. Proj.) 2.30%, VRDN 5,000,000 5,000,000 688643AC
Oyster Bay BAN 3% 11/18/94 3,000,000 3,008,995 692159UL
Putnam County TAN 3% 5/30/94 3,200,000 3,205,140 746639HK
Rockland County:
BAN 2.85% 4/22/94 5,800,000 5,803,112 773556YB
RAN 2.75% 4/8/94 5,500,000 5,500,291 773556YA
Sachem Central School Dist. TAN 2.75% 2/8/94 1,000,000 1,000,065
785721EP
South Huntington Union Free School Dist. TAN
3.25% 6/29/94 6,250,000 6,255,578 838418CP
Suffolk County Ind. Dev. Agcy. Civic Facs. Rev. (Suffolk Child Dev.
Ctr. Inc.) Series 89, 2%, LOC Barclays Bank, VRDN 2,000,000 2,000,000
864768AB
Suffolk County Public Improvement Unltd. Tax Bonds,
5% 10/15/94, (AMBAC Insured) 1,655,000 1,679,823 864764QD
Suffolk County TAN:
Series I, 2.70% 8/16/94, LOC Mitsubishi Bank 9,500,000 9,514,944
864764RF
Series II, 3% 9/15/94, LOC Chemical Bank 12,000,000 12,010,832
864764QC
Tompkins County BAN:
2.64% 6/3/94 (b) 2,500,000 2,500,317 890091DS
3.125% 9/29/94 5,480,000 5,491,340 890091DT
Triborough Bridge & Tunnel Beneficial Interest Ctfs.,
Series CR-133, 2.45%, (MBIA Insured), OT (c) 6,205,000 6,205,000
896028AU
Uniondale Union Free School Dist. TAN 3.25% 6/29/94 4,000,000 4,006,511
909058AM
Wyoming County Ind. Dev. Auth. Ind. Dev. Rev.
(American Precision) Series 1988 A, 2.50%,
LOC Marine Midland Bank, VRDN (b) 820,000 820,000 983242AB
565,497,313
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - 6.0%
New York & New Jersey Port Auth. Spl. Proj. Rev.
(KIAC Partners Proj.), Series 3, 2.05%,
LOC Deutsche Bank, VRDN (b) $ 26,500,000 $ 26,500,000 73358EAD
New York & New Jersey Port Auth. Rev., Variable
Rate Master Note Agreement, Series 1992,
1.99805%, VRDN 9,700,000 9,700,000 733990SE
36,200,000
TOTAL INVESTMENTS - 100% $ 601,697,313
Total Cost for Income Tax Purposes $ 601,697,128

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
FRDN - Floating Rate Demand Notes
MT - Mandatory Tender
OT - Optional Tender
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax & Revenue Anticipation Notes
VAN - Variable Rate Tax & Revenue
Anticipation Notes
VRDN - Variable Rate Demand Notes
VT - Variable Tender
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 (AMT securities).
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At January 31, 1994, the fund had a capital loss carryforward of
approximately $79,300 of which $22,700 and $56,600 will expire on January
31, 1998 and 2002, respectively.
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1994

376.ASSETS 377. 378.

379.Investment in securities, at value (Note 1) - See 380. $ 601,697,313
accompanying schedule

381.Cash 382. 2,228,017

383.Receivable for investments sold 384. 925,432

385.Interest receivable 386. 3,967,804

387. 388.TOTAL ASSETS 389. 608,818,566

390.LIABILITIES 391. 392.

393.Dividends payable $ 40,477 394.

395.Accrued management fee 208,719 396.

397.Other payables and accrued expenses 125,728 398.

399. 400.TOTAL LIABILITIES 401. 374,924

402.403.NET ASSETS 404. $ 608,443,642

405.Net Assets consist of (Note 1): 406. 407.

408.Paid in capital 409. $ 608,522,726

410.Accumulated net realized gain (loss) on 411. (79,275)
investments

412.Unrealized gain from accretion of market discount 413. 191
(Note 1)

414.415.NET ASSETS, for 608,357,483 shares 416. $ 608,443,642
outstanding

417.418.NET ASSET VALUE, offering price and 419. $1.00
redemption price per share ($608,443,642 (divided by)
608,357,483 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JANUARY 31, 1994

420.421.INTEREST INCOME 422. $ 13,801,063

423.EXPENSES 424. 425.

426.Management fee (Note 4) $ 2,339,153 427.

428.Transfer agent, accounting and custodian fees and 1,094,490 429.
expenses (Note 4)

430.Non-interested trustees' compensation 7,152 431.

432.Registration fees 1,251 433.

434.Audit 25,770 435.

436.Legal 9,463 437.

438.Miscellaneous 4,575 439.

440. 441.TOTAL EXPENSES 442. 3,481,854

443.444.NET INTEREST INCOME 445. 10,319,209

446.REALIZED AND UNREALIZED GAIN (LOSS) ON 448. (56,608)
INVESTMENTS
(NOTE 1)
447.Net realized gain (loss) on investment securities

449.Increase (decrease) in net unrealized gain from 450. (7,630)
accretion
of market discount

451.452.NET GAIN (LOSS) 453. (64,238)

454.455.NET INCREASE IN NET ASSETS RESULTING FROM 456. $ 10,254,971
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR NINE MONTHS
ENDED ENDED
JANUARY 31, JANUARY 31, 1993
1994 (NOTE 1)

457.INCREASE (DECREASE) IN NET ASSETS

458.Operations $ 10,319,209 $ 9,134,778
Net interest income

459. Net realized gain (loss) on investments (56,608) 2,660

460. Increase (decrease) in net unrealized gain from (7,630) (13,065)
accretion of market discount

461. 10,254,971 9,124,373
462.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM
OPERATIONS

463.Dividends to shareholders from net interest income (10,319,209) (9,134,778)

464.Share transactions at net asset value of $1.00 per 1,205,036,436 621,686,691
share
Proceeds from sales of shares

465. Reinvestment of dividends from net interest 9,664,118 8,487,040
income

466. Cost of shares redeemed (1,171,811,206) (604,918,478)

467. 42,889,348 25,255,253
Net increase (decrease) in net assets and shares
resulting from share transactions

468. 42,825,110 25,244,848
469.TOTAL INCREASE (DECREASE) IN NET ASSETS

470.NET ASSETS 471. 472.

473. Beginning of period 565,618,532 540,373,684

474. End of period $ 608,443,642 $ 565,618,532

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
475. YEAR NINE MONTHS YEARS ENDED APRIL 30,
ENDED ENDED
JANUARY 31, JANUARY 31,
1993

476. 1994 (NOTE 1) 1992 1991 1990

477.SELECTED PER-SHARE DATA

478.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period

479.Income from .018 .017 .034 .046 .052
Investment
Operations
Net interest
income

480. Dividends from (.018) (.017) (.034) (.046) (.052)
net
interest income

481.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000

end of period

482.TOTAL RETURN (dagger) 1.84 1.72% 3.46 4.74 5.34
% % % %

483.RATIOS AND SUPPLEMENTAL
DATA

484.Net assets, $ 608,444 $ 565,619 $ 540,374 $ 541,472 $ 622,911
end of period
(000 omitted)

485.Ratio of .62 .62%* .64 .61 .61
expenses to % % % %
average net
assets

486.Ratio of net 1.83 2.26%* 3.39 4.64 5.21
interest % % % %
income to average
net assets

</TABLE>

* ANNUALIZED
(dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1994

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity New York Tax-Free High Yield Portfolio (the high yield fund) and
Fidelity New York Tax-Free Insured Portfolio (the insured fund) are funds
of Fidelity New York Municipal Trust. Fidelity New York Tax-Free Money
Market Portfolio (the money market fund) is a fund of Fidelity New York
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 New York Municipal Trust and Fidelity New York
Municipal Trust II (the trusts) are organized as a Massachusetts business
trust and a Delaware business trust, respectively. On November 19, 1992,
the Trustees approved a change in the fiscal year-end of the trusts to
January 31. Each fund is authorized to issue an unlimited number of shares.
The following summarizes the significant accounting policies of the funds:
SECURITY VALUATION.
HIGH YIELD AND INSURED FUNDS. Securities are valued based upon a
computerized matrix system and/or appraisals by a pricing service, both of
which consider market transactions and dealer-supplied valuations.
Short-term securities maturing within sixty days are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which quotations are not readily
available through the pricing service are valued at their fair value as
determined in good faith under consistently applied procedures under the
general supervision of the
Board of Trustees.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each fund is not subject to income taxes to
the extent that it distributes all of its taxable income for the fiscal
year. The schedules of investments include information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. For the
money market fund, accretion of market discount represents unrealized gain
until realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
losses deferred due to wash sales and futures and options transactions.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective February
1, 1993 the funds adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the funds changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of January 31, 1993 have been reclassified as
follows:
HIGH YIELD FUND. Paid in capital and accumulated net realized loss on
investments decreased by $600,165.
INSURED FUND. Paid in capital and accumulated net realized loss on
investments decreased by $149,059.
MONEY MARKET FUND. Paid in capital and accumulated net realized loss on
investments increased by $816.
2. OPERATING POLICIES.
FUTURES CONTRACTS AND OPTIONS. The high yield and insured funds may invest
in futures contracts and write options. These investments involve to
varying degrees, elements of market risk and risks in excess of the amount
recognized in their Statements of Assets and Liabilities. The face or
contract amounts reflect the extent of the involvement the high yield and
insured funds have in the particular classes of instruments. Risks may be
caused by an imperfect correlation between movements in the price of the
instruments and the price of the underlying securities and interest rates.
Risks also may arise if there is an illiquid secondary market for the
instruments, or due to the inability of counterparties to perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the
2. OPERATING POLICIES - CONTINUED
DELAYED DELIVERY TRANSACTIONS - CONTINUED
securities will be delivered and paid for are fixed at the time the
transaction is negotiated.
3. PURCHASES AND SALES OF
INVESTMENTS.
HIGH YIELD FUND. Purchases and sales of securities, other than short-term
securities, aggregated $347,331,131 and $316,223,813, respectively. The
market value of futures contracts opened and closed amounted to
$135,713,675 and $149,060,250, respectively.
INSURED FUND. Purchases and sales of securities, other than short-term
securities, aggregated $218,208,837 and $184,647,101, respectively. The
market value of futures contracts opened and closed amounted to $75,204,527
and $71,947,789 respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management
& Research Company (FMR) receives a monthly fee that is calculated on
the basis of a group fee rate plus a fixed individual fund fee rate applied
to the average net assets of each fund. The group fee rate is the weighted
average of a series of rates ranging from .15% to .37% and is based on the
monthly average net assets of all the mutual funds advised by FMR. The
annual individual fund fee rate is .25%. For the period, the management
fees were equivalent to an annual rate of .41% of average net assets for
the high yield, insured and money market funds, respectively.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .1325% to .3700%. Effective November 1, 1993, FMR has
voluntarily agreed to implement this new group fee rate schedule as it
results in the same or a lower management fee (see Note 6).
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect, and after reducing
the fee for any payments by FMR pursuant to the fund's Distribution and
Service Plan.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plans (the Plans), and in accordance with Rule 12b-1 of the 1940 Act, FMR
or the funds' distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of each fund's shares. Subject to
the approval of each Board of Trustees, the Plans also authorize payments
to third parties that assist in the sale of each
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
fund's shares or render shareholder support services. FMR or FDC has
informed the funds that payments made to third parties under the Plans
amounted to $5,774, $4,915
and $81,065 for the high yield, insured and money market funds,
respectively, for the period.
TRANSFER AGENT AND ACCOUNTING FEES. United Missouri Bank, N.A. (the Bank)
is the custodian and transfer and shareholder servicing agent for the
funds. The Bank has entered into a sub-contract with Fidelity Service Co.
(FSC), an affiliate of FMR, under which FSC performs the activities
associated with the funds' transfer and shareholder servicing agent and
accounting functions. The funds pay transfer agent fees based on the type,
size, number of accounts and number of transactions made by shareholders.
FSC pays for typesetting, printing and mailing of all shareholder reports,
except proxy statements. The accounting fee is based on the level of
average net assets for the month plus out-of-pocket expenses. For the
period, FSC received transfer agent and accounting fees amounting to
$519,929 and $208,438 for the high yield fund, $411,879, and $174,688 for
the insured fund and $928,704 and $107,954 for the money market fund,
respectively.
Shareholders participating in the Fidelity Ultra Service Account(Registered
trademark) Program (the Program) pay a $5.00 monthly fee to Fidelity
Brokerage Services, Inc. (FBSI), an affiliate of FMR, for performing
services associated with the Program. For the period, fees paid to FBSI by
shareholders participating in the Program amounted to $98,110.
5. BANK BORROWINGS.
The funds are permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The funds have established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the funds must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. For
the high yield fund, the maximum loan and the average daily loan balances
during the periods for which loans were outstanding amounted to
$11,000,000, respectively. The weighted average interest rate was 3.4375%.
Interest expense includes $1,050 paid under the bank borrowing program.
6. SHAREHOLDER MEETING.
At a special meeting of shareholders of the high yield and insured funds
held on January 19, 1994, shareholders approved an amended management
contract and amendments to certain fundamental investment limitations of
the funds.
The new management contract, which became effective on February 1, 1994
will reflect the new group fee rate schedule which FMR voluntarily
implemented on November 1, 1993.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees and Shareholders of Fidelity New York Municipal Trust and
Fidelity New York Municipal Trust II
(the Trusts):
Fidelity New York Tax-Free
High Yield Portfolio
Fidelity New York Tax-Free
Insured Portfolio
Fidelity New York Tax-Free
Money Market Portfolio
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for Moody's and Standard
& Poor's ratings), and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Fidelity New York Tax-Free
High Yield Portfolio, Fidelity New York Tax-Free Insured Portfolio and
Fidelity New York Tax-Free Money Market Portfolio at January 31, 1994, the
results of their operations, the changes in their net assets and the
financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are
the responsibility of each portfolio's management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with
generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of securities owned at January 31, 1994 by
correspondence with the custodian and brokers and the application of
alternative procedures where confirmations from brokers were not received,
provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE
Boston, Massachusetts
March 3, 1994
DISTRIBUTIONS

The Board of Trustees of Fidelity New York Municipal Trust: Fidelity New
York Tax-Free High Yield Portfolio and Fidelity New York Tax-Free Insured
Portfolio voted to pay on March 7, 1994, to shareholders of record at the
opening of business on March 4, 1994, a distribution of $.17 and $.03,
respectively, derived from capital gains realized from sales of portfolio
securities.
INVESTMENT ADVISER

Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER, MONEY MARKET FUND
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Janice Bradburn, Vice President
MONEY MARKET FUND
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Marvin L. Mann*
Edward H. Malone*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
United Missouri Bank, N.A.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0111
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

EXHIBIT 24(A)

FIDELITY

(Registered trademark)
NEW YORK
MUNICIPAL
PORTFOLIOS

ANNUAL REPORT
JANUARY 31, 1994
CONTENTS

CHECK PAGE NUMBERS !!!

PRESIDENT'S MESSAGE 3 NED JOHNSON ON MINIMIZING
TAXES

SPARTAN NEW YORK MUNICIPAL
HIGH YIELD PORTFOLIO 4 PERFORMANCE

7 FUND TALK: THE MANAGER'S OVERVI
EW

10 INVESTMENT CHANGES

11 INVESTMENTS

19 FINANCIAL STATEMENTS

SPARTAN NEW YORK
INTERMEDIATE MUNICIPAL
PORTFOLIO 23 PERFORMANCE

25 FUND TALK: THE MANAGER'S OVERVI
EW

28 INVESTMENT SUMMARY

29 INVESTMENTS

33 FINANCIAL STATEMENTS

SPARTAN NEW YORK MUNICIPAL
MONEY MARKET PORTFOLIO 37 PERFORMANCE

39 FUND TALK: THE MANAGER'S OVERVI
EW

41 INVESTMENT CHANGES

42 INVESTMENTS

49 FINANCIAL STATEMENTS

NOTES 53 FOOTNOTES TO THE FINANCIAL
STATEMENTS

REPORT OF INDEPENDENT
ACCOUNTANTS 57 THE AUDITOR'S OPINION

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. NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE

PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value), and the effect of the $5 account closeout fee.
You can also look at the fund's income. If Fidelity had not reimbursed
certain fund expenses during the periods shown, the total returns,
dividends and yields would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan New York Municipal High Yield 13.11% 52.19%

Lehman Brothers Municipal Bond Index 12.26% n/a

Average New York Tax-Exempt
Municipal Bond Fund 12.54% n/a

Consumer Price Index 2.52% 14.76%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, one year or since the fund started on February 3, 1990. For
example, if you had invested $1,000 in a fund that had a 5% return over the
past year, you would end up with $1,050. You can compare these figures to
the performance of the Lehman Brothers Municipal Bond Index - a broad gauge
of the municipal bond market. To measure how the fund stacked up against
its peers, you can look at the average New York tax-exempt municipal bond
fund, which reflects the performance of 65 New York tax-exempt municipal
bond funds tracked by Lipper Analytical Services. Both benchmarks include
reinvested dividends and capital gains, if any. Comparing the fund's
performance to the consumer price index helps show how your fund did
compared to inflation. (The periods covered by CPI numbers are the closest
available match to those covered by the fund).
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan New York Municipal High Yield 13.11% 11.08%

Lehman Brothers Municipal Bond Index 12.26% n/a

Average New York Tax-Exempt
Municipal Bond Fund 12.54% n/a

Consumer Price Index 2.52% 3.50%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND

02/28/90 10000.00 10000.00
03/31/90 9983.21 10003.00
04/30/90 9811.79 9930.98
05/31/90 10117.09 10147.47
06/30/90 10261.57 10236.77
07/31/90 10478.70 10387.25
08/31/90 10253.36 10236.64
09/30/90 10224.00 10242.78
10/31/90 10276.00 10428.17
11/30/90 10527.66 10637.78
12/31/90 10549.03 10684.59
01/31/91 10686.28 10827.76
02/28/91 10746.10 10921.96
03/31/91 10807.19 10926.33
04/30/91 10977.11 11071.65
05/31/91 11092.41 11170.19
06/30/91 11110.43 11159.02
07/31/91 11303.75 11295.16
08/31/91 11499.52 11444.25
09/30/91 11673.95 11593.03
10/31/91 11804.46 11697.37
11/30/91 11845.12 11730.12
12/31/91 12068.12 11982.32
01/31/92 11973.65 12009.88
02/29/92 12012.18 12013.48
03/31/92 12043.36 12018.28
04/30/92 12188.20 12125.25
05/31/92 12392.70 12268.32
06/30/92 12664.89 12474.43
07/31/92 13129.04 12848.67
08/31/92 12946.42 12722.75
09/30/92 12998.18 12805.45
10/31/92 12730.57 12679.95
11/30/92 13058.40 12906.92
12/31/92 13209.76 13038.57
01/31/93 13386.37 13189.82
02/28/93 13961.65 13667.29
03/31/93 13839.10 13522.42
04/30/93 13978.31 13659.00
05/31/93 14082.45 13735.49
06/30/93 14323.28 13964.87
07/31/93 14339.73 13983.02
08/31/93 14647.25 14273.87
09/30/93 14814.04 14436.59
10/31/93 14805.43 14464.02
11/30/93 14653.28 14336.74
12/31/93 14980.14 14639.24
01/31/94 15142.59 14806.13

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan New
York Municipal High Yield Portfolio on February 28, 1990, shortly after the
fund started. As the chart shows, by January 31, 1994, the value of your
investment would have grown to $15,143 - a 51.43% increase on your initial
investment. This assumes you still own the fund on January 31, 1994 and
therefore does not include the effect of the $5 account closeout fee. For
comparison, look at how the Lehman Brothers Municipal Bond Index did over
the same period. With dividends reinvested, the same $10,000 would have
grown to $14,806 - a 48.06% increase.

Income return 5.91% 6.57% 7.13% 7.51%

Capital gain return 2.71% 1.12% 0.21% 0.00%
Change in share price 4.49% 4.10% 4.70% -0.11%
Total return 13.11% 11.79% 12.04% 7.40%
INCOME returns, capital gain returns, and changes in share price are all
part of a bond fund's total return. An income return reflects the dividends
paid by the fund. A capital gain return reflects the amount paid by the
fund to shareholders based on the profits it has from selling bonds that
have grown in value. Both returns assume the dividends or gains are
reinvested. Changes in the fund's share price include changes in the prices
of the bonds owned by the fund. Change in share price and total return
figures include the effect of the $5 account closeout fee.
DIVIDENDS AND YIELD
PERIODS ENDED JANUARY 31, 1994 PAST 30 PAST 6 PAST 1
DAYS MONTHS YEAR

Dividends per share n/a 31.31(cents) 62.24(cents)

Annualized dividend rate n/a 5.43% 5.49%

Annualized yield 4.93% n/a n/a

Tax-equivalent yield 8.76% n/a n/a

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $11.44 over
the past six months and $11.33 over the past year, you can compare the
fund's income over these two periods. The 30-day annualized YIELD is a
standard formula for all funds based on the yields of the bonds in the
fund, averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period. It also
helps you compare funds from different companies on an equal basis. The
tax-equivalent yield shows what you would have to earn on a taxable
investment to equal the fund's tax-free yield, if you're in the 43.71%
combined effective 1994 federal, state and New York City income tax
bracket.
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Bond investments - including
tax-free issues - provided
historically attractive returns for the
12 months ended January 31, 1994.
Falling interest rates pushed up bond
prices steadily through mid-October,
when the yield on the benchmark
30-year Treasury bond reached a
historic low of 5.79%. By year-end, a
strengthening economy had fueled
mild inflation fears, which helped
push up the yield on the 30-year
bond to 6.35% by December 31.
Inflation jitters eased in January, and
the yield on the long Treasury
dropped to 6.23% by month end.
Two factors affected municipal
bonds specifically: on the positive
side, higher federal taxes -
approved in August and discussed
all year - boosted demand. But
record new issuance kept supplies
high, which somewhat dampened
prices. The Lehman Brothers
Municipal Bonds Index - a broad
measure of the tax-free market -
rose 12.26% during the 12 months
ended January 31. By comparison,
the Lehman Brothers Aggregate
Bond Index - which tracks
investment-grade taxable bonds -
rose 9.14%, due in part to poor
performance by mortgage-backed
securities. Globally, falling interest
rates and low inflation drove strong
returns in Europe, Japan, and many
of the emerging markets. The
Salomon Brothers World
Government Bond Index - which
includes U.S. issues - rose 12.22%,
while the J.P. Morgan Emerging
Markets Bond Index was up 43.06%.
An interview with Norman Lind, Portfolio Manager of Spartan New York
Municipal High Yield Portfolio
Q. NORM, HOW DID THE FUND DO?
A. For the 12 months ended January 31, 1994, it had a total return of
13.11%. That beat the average New York municipal bond fund's return of
12.54%, according to Lipper Analytical Services.
Q. ALTHOUGH YOU'VE ONLY RUN THE FUND SINCE OCTOBER, CAN YOU TELL US WHY IT
DID BETTER THAN THE AVERAGE OVER THE PAST YEAR?
A. Several factors worked in the fund's favor. First, the duration of the
fund - a measure of interest rate sensitivity - was 8.0 years on January
31, 1994 which is relatively long. That meant as interest rates dropped,
the prices of bonds in the fund rose more than if the duration had been
shorter.
Q. WHAT TYPES OF BONDS WERE USED TO LENGTHEN THE FUND'S DURATION?
A. Mainly non-callable and discount bonds. Non-callable bonds can't be
prematurely redeemed by their issuers. That means they have a longer
duration because they trade to their maturity date, rather than a shorter
call date. When interest rates are falling and bond prices are rising,
non-callables tend to do well. It's the same for discount bonds. They trade
at less than face value and are more sensitive to interest rate movements
than bonds that trade at a higher value.
Q. WHAT ABOUT THE OTHER FACTORS THAT HELPED PERFORMANCE?
A. A second factor was the fund's stake in bonds that were pre-refunded.
With pre-refunding, the issuer sells a new lower-interest bond, invests the
proceeds in short-term government securities, and pays off the old bond at
the earliest opportunity. Bonds are worth more after they're pre-refunded
because they're backed by government securities. Finally, I selectively
invested in lower-rated investment-grade bonds, which typically carry
higher yields. These provided the fund with a decent income, which in turn
helped the fund's total return. The fund currently has a 50% stake in bonds
rated Baa by Moody's or BBB by Standard & Poor's.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. The fund's investor-owned utilities were hurt when the rating agencies
expressed concerns about their prospects for the future. Stiffer
competition for customers made the rating agencies publicly question the
long-term outlook for the sector. After this happened, bonds across the
sector initially dropped in price and then rebounded somewhat. I continue
to own bonds from issuers insulated in some way from this competition;
these utilities were probably unfairly hurt by the industry's recent credit
concerns. Once investors realize this, these bonds should appreciate in
price.
Q. IN WHAT AREAS OF NEW YORK STATE ARE YOU FINDING OPPORTUNITIES?
A. Recently I've built nearly a 6% stake in bonds issued by New York City
and its agencies. These can offer more attractive yields than bonds issued
at the state level mainly because of New York City's well-publicized budget
problems. Even though we haven't yet seen a lot of rapid improvement in the
credit quality of the city's bonds, I think the economy there has started
to stabilize. Looking ahead, the credit quality should improve if the
city's economy strengthens, which would most likely boost the bonds'
prices.
Q. FOR THE PAST TWO YEARS, STATE-APPROPRIATED BONDS PLAYED A FAIRLY
IMPORTANT ROLE IN THE FUND'S STRATEGY. DO THEY STILL SEEM AS ATTRACTIVE?
A. Yes. These bonds rely on annual appropriations by the state legislature
to meet all or part of the principal and interest payments. When the state
ran into some rough spots a couple of years ago, the bonds were downgraded
to Baa. At that time, they were attractive because they offered high
yields. Then, as the New York economy showed signs of improvement,
state-appropriated bonds attracted more buyers and prices increased. Going
forward, I think these bonds could be upgraded - probably in
the next 12 months - which would most likely further benefit their prices.
But even if they're not upgraded, their high yields continue to make them
attractive.
Q. SO WHAT CAN INVESTORS EXPECT OVER THE NEXT 12 MONTHS?
A. Probably more modest returns than we've seen in the past year. That
said, I'm optimistic that municipals will do well during 1994. That's
because higher federal taxes could increase demand for municipal bonds. At
the same time, supply could taper off, since many of the refinancings that
could take place already have. Increased demand and decreased supply should
bode well for municipal bonds.
FUND FACTS
GOAL: to provide high current
income exempt from federal,
state and New York City
income taxes by investing
primarily in long-term,
investment-grade New York
municipal securities
START DATE: February 3, 1990
SIZE: as of January 31, 1994,
over $446 million
MANAGER: Norman Lind, since
October 1993; manager,
Fidelity New York Tax-Free
High Yield Portfolio, since
October 1993; Fidelity New
York Tax-Free Insured
Portfolio, since March 1994;
Spartan Municipal Income
Portfolio, since June 1990
(checkmark)

NORM LIND'S INTEREST RATE
OUTLOOK:
"Over the next several
months, I think interest rates
will probably remain stable.
Inflation appears to be in
check, and the Fed recently
underscored its intention to
fight inflation by raising
short-term interest rates.
Despite that quarter of a point
hike, I think interest rates will
remain near where they
are now.
"The economy still isn't
showing the kind of robust
pickup you'd normally expect
at this stage of a recovery.
U.S. job growth is slow, and
there's been no significant
improvement in the world
economy that could help ignite
a stronger domestic recovery.
Unless we see a significant
economic downturn, there's
probably little reason for the
Fed to cut interest rates
either."
(bullet) About 18% of the fund is in
transportation bonds. Of
these, about half are
state-appropriated issues.
These bonds are attractive in
part because they offer
relatively high yields. Most of
the remaining bonds in the
transportation sector are
attractive because of their
strong credit ratings.
(bullet) Because of recent tax hikes
on the federal level, some
New York residents could be
subject to a tax rate as high as
46.88%.
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF JANUARY 31, 1994
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO

Transportation 18.4 17.4

Lease Revenue 14.8 12.9

Industrial Development 13.3 14.0

Special Tax 12.5 7.8

Electric Revenue 11.4 11.9

AVERAGE YEARS TO MATURITY AS OF JANUARY 31, 1994
6 MONTHS AGO

Years 22.5 22.3

AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL OF THE
BONDS IN THE FUND IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF JANUARY 31, 1994
6 MONTHS AGO

Years 8.0 7.4

DURATION SHOWS HOW MUCH A BOND'S PRICE FLUCTUATES WITH CHANGES IN INTEREST
RATES. IF RATES RISE 1%, FOR EXAMPLE, THE SHARE PRICE OF A FUND WITH A
FIVE-YEAR DURATION WILL FALL 5%.
QUALITY DIVERSIFICATION AS OF JANUARY 31, 1994
(MOODY'S RATINGS)
Aaa 7.3%
Aa, A 40.3%
Baa 50.0%
Ba, B 0.0%
Non-rated 2.4%
Row: 1, Col: 1, Value: 7.3
Row: 1, Col: 2, Value: 40.3
Row: 1, Col: 3, Value: 50.0
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 3.0
THIS CHART EXCLUDES SHORT-TERM INVESTMENTS. WHERE MOODY'S RATINGS ARE NOT
AVAILABLE, WE HAVE USED S&P RATINGS.
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO

INVESTMENTS/JANUARY 31, 1994
(Showing Percentage of Total Value of Investments)

MUNICIPAL BONDS - 98.3%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 85.8%
Babylon Ind. Dev. Agcy. Resource Recovery Rev.
(Ogden Martin Sys. Babylon, Inc. Co.): (e)
Series A, 8.50% 1/1/19 Baa1 $ 930,000 $ 1,068,338 056212BX
Series B, 8.50% 1/1/19 Baa1 2,875,000 3,302,656 056212BY
Franklin County Ctfs. of Prtn. (Court House
Redev. Proj.) 8.125% 8/1/06 (e) BBB 2,120,000 2,453,900 353139AN
Metropolitan Trans. Auth. Svc. Contract:
(Commuter Facs.) Series O:
5.75% 7/1/13 Baa1 4,790,000 4,951,663 592597C6
5.50% 7/1/17 Baa1 5,000,000 4,993,750 592597D2
(Trans. Facs.):
Series 3, 6% 7/1/19 Baa1 3,750,000 3,839,063 592597SW
Series 7, 0% 7/1/10 Baa1 9,500,000 3,800,000 592597J9
Series L, 7.50% 7/1/17,
(AMBAC Insured) Aaa 1,710,000 1,957,950 592597PX
Metropolitan Trans. Auth. Trans. Facs. Rev.,
Series K, 6% 7/1/16, (AMBAC Insured) Aaa 1,500,000 1,586,250 592598SK
New York City Gen. Oblig.:
Series A, 6.50% 8/1/12 Baa1 2,500,000 2,643,750 649656HS
Series B:
7.50% 2/1/07 Baa1 3,500,000 4,042,500 649654JM
5.75% 8/15/14 Baa1 2,000,000 1,997,500 649657LQ
Sub-Series A-1, 5.70% 8/1/06 Baa1 2,500,000 2,553,125 649653ML
New York City Health Hosp. Corp. 8.593%
2/15/11, (AMBAC Insured) (f) Aaa 2,500,000 2,756,250 649674BE
New York City Hsg. Dev. Corp. Mtg. Rev.:
Rfdg. (Royal Charter Prop. East, Inc. Proj.)
Series 1988-1, 7.375% 4/1/17,
(MBIA Insured) Aaa 3,245,000 3,435,644 649702NL
(Multi-Family) Series A, 8.75% 8/1/16,
(FHA & GNMA Guaranteed) AAA 570,000 593,513 649702KG
New York City Ind. Dev. Agcy. Civic Facs. Rev.:
(New York Blood Ctr. Inc. Proj.)
7.25% 5/1/22 BBB 1,900,000 2,130,375 64971CEE
(O.L.M. Pkg. Corp. Proj.) 8.50%
12/30/22 - 4,250,000 4,430,625 64971CEV
(The Lighthouse, Inc. Proj.) 6.50% 7/1/22,
LOC Barclays Bank PLC Aa2 3,000,000 3,258,750 64971CDS
(YMCA of Greater NY Proj.) 8%
8/1/16 - 3,950,000 4,335,125 64971CCP
New York City Ind. Dev. Auth. Spl. Facs. Rev.
(American Airlines, Inc. Proj.) Series 1990,
8% 7/1/20 (c) Baa1 8,575,000 9,721,906 64971SAB
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Assistance Corp.,
Series A, 6% 7/1/08 A $ 5,000,000 $ 5,412,500 626190ZD
New York City Muni. Wtr. Fin. Auth.
Wtr. & Swr. Sys. Rev.:
Series 1992 A, 7% 6/15/09 A 1,000,000 1,126,250 649706TA
Series A, 6.25% 6/15/21,
(FSA Guaranteed) Aaa 2,700,000 2,875,500 649706TN
Series B, 6.375% 6/15/22 A 3,000,000 3,213,750 649706YG
New York State Ctfs. of Participation
3.50% 2/1/94 Baa1 4,895,000 4,895,000 649810JQ
New York State Dorm. Auth. Rev.:
Rfdg. (State Univ. Edl. Facs.):
Series A, 5.25% 5/15/15 Baa1 9,000,000 8,775,000 649834AS
Series B:
7.50% 5/15/11 Baa1 2,000,000 2,485,000 649832EQ
5% 5/15/18 Baa1 3,000,000 2,801,250 649831U7
Rfdg. (State Univ. of NY) Series A,
5.875% 5/15/17 Baa1 3,750,000 3,932,813 649834AU
(City Univ. Sys.) Series C, 7.50% 7/1/10 Baa1 4,000,000 4,890,000
649832DG
(Court Facs. Lease) Series A, 5.25%
5/15/21 Baa1 15,000,000 14,475,000 649834WQ
(Iroquois Nursing Home) 7% 2/1/15,
(FHA Guaranteed) AA- 1,270,000 1,427,163 649832WM
(Judicial Facs. Lease) Series B, 7% 4/15/16 Baa1 1,500,000 1,672,500
649832YM
(Mt. Sinai Hosp. School Medicine) 6.75%
7/1/09, (MBIA Insured) Aaa 3,500,000 3,976,875 649832TB
(New York City Univ. Crossover 1993)
8.125% 7/1/08 Baa1 960,000 1,149,600 649831ZX
(Rochester Gen. Hosp.) 8.75% 2/1/25,
(FHA Guaranteed) Aa 1,295,000 1,422,881 649831NN
(State Univ.) 6% 5/15/17 Baa1 1,000,000 1,022,500 649831Y9
New York State Energy Research & Dev. Auth.
Elec. Facs. Rev.:
(Consolidated Edison Co., Inc. Proj.) Series A: (c)
7.75% 1/1/24 Aa2 2,750,000 3,110,938 649841AF
7.50% 7/1/25 Aa2 2,000,000 2,285,000 649841AQ
6.75% 1/15/27 Aa2 4,000,000 4,405,000 64984EAA
(Long Island Lighting Co.): (c)
Series A:
7.15% 9/1/19 Baa3 7,375,000 8,038,750 649841BJ
7.15% 6/1/20 Baa3 4,000,000 4,360,000 649841BL
7.15% 2/1/22 Baa3 6,000,000 6,540,000 649841BN
Series B, 7.15% 9/1/19 Baa3 7,000,000 7,630,000 649841BK
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Energy Research & Dev.
Auth. Gas Facs. Rev. RIB (Brooklyn Union
Gas Co.): (f)
10.017% 4/1/20 A1 $ 5,000,000 $ 6,106,250 649842BA
11.298% 7/15/26 (c) A1 3,500,000 4,803,750 649842AS
New York State Envir. Facs. Corp. Poll. Cont.
Rev. (State Wtr. Revolving Fund):
(City Proj.) Series A, 7% 6/15/12 Aa 1,000,000 1,171,250 649850DY
(Pooled Loan):
Series B, 5.20% 5/15/14 Aa 3,000,000 3,045,000 649850QB
Series 1990 B, 7.50% 3/15/11 Aa 1,500,000 1,740,000 649850CA
Series E, 6.50% 6/15/14 Aa 4,000,000 4,510,000 649850JN
New York State Envir. Facs. Corp. Resource
Recovery Rev. (Huntington Proj.) Series A,
7.50% 10/1/12 (c) Baa 13,000,000 14,495,000 649900AJ
New York State Envir. Facs. Corp. Wtr. Facs.
Rev. (New Rochelle Wtr. Co. Proj.)
6.40% 12/1/24 (c) A2 1,175,000 1,266,063 649851AZ
New York State Gen. Oblig.:
Unltd. Tax 7.20% 2/1/12 A 1,000,000 1,136,250 649786LK
7.20% 2/1/13 A 1,000,000 1,136,250 649786LL
New York State Hsg. Fin. Agcy. Rev. :
(Multi-Family Mtg. Hsg.)
Series A, 6.95% 8/15/12 Aa 1,000,000 1,103,750 649868UE
(Secured Mtg. Prog.) Series A: (c)
7% 8/15/12 Aa 1,000,000 1,075,000 649868UT
7.05% 8/15/24 Aa 1,500,000 1,644,375 649868UU
New York State Hsg. Fin. Agcy. Svc. Contract
Oblig. Rev.:
Series A, 7.375% 9/15/21 Aaa 1,200,000 1,471,500 64987HCM
Series C, 6.30% 3/15/22 Baa1 2,000,000 2,100,000 64987HCS
New York State Local Gov't. Assistance Corp.:
Rfdg., Series C, 5.50% 4/1/17 A 5,275,000 5,406,875 649876JN
Rfdg., Series E:
6% 4/1/14 A 14,110,000 15,397,538 649876KX
5.25% 4/1/16 A 4,900,000 4,863,250 649876KY
RIBS 7.50% 4/1/21 (f) A 5,400,000 5,406,750 649876JQ
Series A:
6.875% 4/1/19 A 2,750,000 3,104,063 649876EZ
6.50% 4/1/20 A 1,000,000 1,095,000 649876AS
Series B, 6% 4/1/18 A 2,795,000 2,955,713 649876FY
Series C, 6% 4/1/12 A 1,200,000 1,311,000 649876GQ
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Med. Care Facs. Fin. Agcy. Rev.:
(Good Samaritan Hosp. of Suffering)
Series A, 7.625% 2/15/23,
(FHA Guaranteed) (e) Aa $ 3,475,000 $ 3,926,750 649881WR
(Mental Health Svcs. Facs. Impt.)
Series 1991 B, 7.625% 8/15/17 Baa1 2,325,000 2,691,188 64988HMP
(North Shore Univ. Hosp. Mtg. Proj.)
Series A, 7.20% 11/1/20,
(MBIA Insured) Aaa 2,000,000 2,312,500 64988HHD
7.70% 2/15/18 Baa1 540,000 608,850 64988JLD
7.70% 2/15/18
(Pre-Refunded to 2/15/98 @ 102) (d) Baa1 610,000 712,175 64988JLC
7.875% 8/15/20 Baa1 2,160,000 2,538,000 64988JNH
7.50% 2/15/21 Baa1 605,000 708,606 64988JNP
New York State Mtg. Agcy. Rev. (Homeowner Mtg.):
Series 27, 6.90% 4/1/15 Aa 3,000,000 3,240,000 649885SS
Series HH-3, 7.95% 4/1/22 (c) Aa 2,500,000 2,765,625 649885BP
Series SS, 7.95% 10/1/22 (c) Aa 2,930,000 3,259,625 649885JW
Series UU, 7.75% 10/1/23 (c) Aa 1,000,000 1,111,250 649885NN
New York State Pwr.,
Series H, 7.407% 6/1/07 (f) Aa 5,000,000 5,043,750 91828FBB
New York State Pwr. Auth. & Gen. Purp. Rev.:
Series V, 8% 1/1/17 Aa 730,000 843,150 649891AR
Series Y, 6.75% 1/1/18 Aa 10,900,000 12,194,374 649892WV
New York State Thruway Auth. Gen. Rev.,
Series A, 5.75% 1/1/19 A1 1,450,000 1,506,187 650009DR
New York State Tollway Auth. Svc.
Contract Rev. (Local Hwy. & Bridge)
7.25% 1/1/10 Baa1 2,500,000 2,846,874 650017AM
New York State Urban Dev. Corp. Rev.:
Rfdg. (Correctional Facs.) Series A:
5.50% 1/1/09 Baa1 4,000,000 4,035,000 650033E6
5.50% 1/1/14 Baa1 7,000,000 7,035,000 650033C8
(Attica Proj.) 7.50% 4/1/20 Baa1 5,000,000 5,756,250 650033TS
(Syracuse Univ. Ctr. Science & Technology)
7.875% 1/1/17 Baa1 2,000,000 2,247,500 650033EZ
Oneida-Herkimer Solid Wst. Mgt. Auth.
(Solid Waste System Rev.) 6.75% 4/1/14 Baa 2,025,000 2,207,250 682496AR
Suffolk County Ind. Dev. Agcy. Rev.
(Dowling College) 8.25% 12/1/20 BBB 1,000,000 1,136,250 864768AE
Suffolk County Wtr. Auth. 6% 6/1/17,
(MBIA Insured) (g) Aaa 3,160,000 3,511,550 8647792P
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Triborough Bridge & Tunnel Auth. Rev.:
Rfdg. (Gen. Purp.) Series Y:
6% 1/1/12 Aa $ 8,300,000 $ 9,150,750 896029YS
5.50% 1/1/17 Aa 2,500,000 2,615,624 896029YE
6.125% 1/1/21 Aa 8,500,000 9,700,624 896029YU
Rfdg. (Spl. Oblig.):
6.25% 1/1/12, (AMBAC Insured) Aaa 2,500,000 2,725,000 896033KZ
Series 1991 A, 6.625% 1/1/17
(MBIA Insured) Aaa 3,500,000 3,893,750 896033HY
Series B, 7.10% 1/1/10 A1 3,000,000 3,438,750 896033JR
(Convention Ctr. Proj.) Series E:
7.25% 1/1/10 (e) Baa1 5,670,000 6,825,262 896027CM
6% 1/1/11 Baa1 1,500,000 1,601,250 896027CN
(Gen. Purp.) Series X, 6.625% 1/1/12 Aa 3,000,000 3,525,000 896029XJ
373,834,244
NEW YORK & NEW JERSEY - 3.8%
New York & New Jersey Port Auth.:
Consolidated 67th Series, 6.875% 1/1/25 A1 3,000,000 3,352,500
733580JA
Consolidated 85th Series:
5.20% 9/1/16 A1 2,000,000 2,040,000 733580XZ
5.20% 9/1/18 A1 1,675,000 1,706,406 733580YB
5.375% 3/1/28 A1 9,100,000 9,373,000 733580YM
16,471,906
PUERTO RICO - 8.3%
Puerto Rico Commonwealth Gen. Oblig.:
Rfdg. 6% 7/1/14 Baa1 6,460,000 6,799,150 745144FM
5% 7/1/21 Baa1 2,000,000 1,932,500 745144KJ
Puerto Rico Commonwealth Hwy. Auth.
Hwy. Rev., Series Q, 6% 7/1/20 Baa1 4,000,000 4,140,000 745194QY
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Rev., Series W, 5.50% 7/1/13 Baa1 3,000,000 3,075,000 745181BZ
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.:
Rfdg., Series N, 6% 7/1/10 Baa1 3,050,000 3,179,625 745268JP
Series P, 7% 7/1/21 Baa1 4,750,000 5,397,188 745268LL
Puerto Rico Hsg. Bank & Fin. Agcy.
(Single Family) 7.25% 12/1/06 Baa 600,000 642,000 745269BJ
Puerto Rico Infrastructure Fin. Auth. Spl. Tax,
Series 1988 A, 7.75% 7/1/08 Baa1 1,500,000 1,706,250 745219AQ
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
PUERTO RICO - CONTINUED
Puerto Rico Ports Auth. Rev. (Spl. Facs.
American Airlines) Series A, 6.30%
6/1/23 (c) Baa3 $ 5,000,000 $ 5,212,500 745290EA
Puerto Rico Pub. Bldgs. Auth. Rev. Rfdg.
Series L, 5.50% 7/1/21 Baa1 4,000,000 4,105,000 745235GJ
36,189,213
U.S. VIRGIN ISLANDS - 0.4%
Virgin Islands Pub. Fin. Auth. Rev. Rfdg.,
Series A, 7.25% 10/1/18 (f) - 1,500,000 1,698,750 927676CF
TOTAL MUNICIPAL BONDS
(Cost $396,195,246) 428,194,113
MUNICIPAL NOTES (A) - 1.7%
NEW YORK - 1.7%
Chautauqua County Ind. Dev. Auth. Rev.
(Bush Industries, Inc. Proj.) Series 84, 2.50%
LOC Marine Midland Bank, VRDN - 530,000 530,000 1625459T
Erie County Ind. Dev. Auth. Ind. Dev. Rev.
(National Wire Prods.) Series 1988 E,
2.50%, LOC Marine Midland Bank,
VRDN (c) A-2 865,000 865,000 295088EB
New York City Hsg. Dev. Corp. Spl.
(Carnegie Park Proj.) Series 1984 A,
2.90% LOC Sumitomo Trust & Banking
Ltd., VRDN VMIG 2 4,300,000 4,300,000 64970T9A
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev. (Niagra Mohawk Proj.)
Series 1985 A, 1.95%, LOC Long-Term Cr.
Bank of Japan, VRDN A-1 1,900,000 1,900,000 649845BK
TOTAL MUNICIPAL NOTES
(Cost $7,595,000) 7,595,000
TOTAL INVESTMENTS - 100%
(Cost $403,790,246) $ 435,789,113
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
50 Muni Bond Index Contracts March 1994 $ 5,243,375 $ 83,919
THE VALUE OF FUTURES CONTRACTS PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 1.2%
SELL
63 U.S. Treasury Note Contracts March 1994 (7,201,687) (77,356)
THE VALUE OF FUTURES CONTRACTS SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 1.7%
$ 6,563

SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Standard & Poor's Corporation credit ratings are used in the
absence of a rating by Moody's Investors Service, Inc.
(c) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
(d) Security collateralized by an amount sufficient to pay interest and
principal.
(e) A portion of the Security was pledged to cover for futures contracts.
At the period end, the value of securities pledged amounted to $10,720,468.
(f) Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate. The price will be more
volatile than the price of a comparable fixed rate security.
(g) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
INCOME TAX INFORMATION
At January 31, 1994, the aggregate cost of investment securities for income
tax purposes was $403,869,740. Net unrealized appreciation (depreciation)
aggregated $31,919,373, of which $32,037,301 related to appreciated
investment securities and $117,928 related to depreciated investment
securities.
The fund hereby designates $1,343,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
At January 31, 1994 the fund was required to defer $635,167 of losses on
futures contracts and options.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 46.5% AAA, AA, A 53.1%
Baa 47.8% BBB 26.6%
Ba 0.0% BB 9.5%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 2.4%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investments, is as follows:
Transportation 18.4%
Lease Revenue 14.8
Industrial Development 13.3
Special Tax 12.5
Electric Revenue 11.4
General Obligation 10.3
Others
(individually less than 10%) 19.3
TOTAL 100.0%
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1994

7.ASSETS 8. 9.

10.Investment in securities, at value (cost 11. $ 435,789,113
$403,790,246) (Notes 1 and 2) - See accompanying
schedule

12.Cash 13. 251,159

14.Receivable for investments sold 15. 11,107,856

16.Interest receivable 17. 5,524,661

18.Redemption fees receivable (Note 1) 19. 105

20.Receivable for daily variation on futures contracts 21. 5,969

22. 23.TOTAL ASSETS 24. 452,678,863

25.LIABILITIES 26. 27.

Payable for investments purchased $ 2,611,822
Regular delivery

Delayed delivery (Note 2) 3,503,819

28.Payable for fund shares redeemed 60,031 29.

30.Dividends payable 267,339 31.

32.Accrued management fee 206,277 33.

34. 35.TOTAL LIABILITIES 36. 6,649,288

37.38.NET ASSETS 39. $ 446,029,575

40.Net Assets consist of (Note 1): 41. 42.

43.Paid in capital 44. $ 408,004,017

45.Accumulated undistributed net realized gain (loss) on 46. 6,020,128
investments

47.Net unrealized appreciation (depreciation) on: 48. 49.

50. Investment securities 51. 31,998,867

52. Futures contracts 53. 6,563

54.55.NET ASSETS, for 39,203,743 shares outstanding 56. $ 446,029,575

57.58.NET ASSET VALUE, offering price and redemption 59. $11.38
price per share ($446,029,575 (divided by) 39,203,743 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JANUARY 31, 1994

60.61.INTEREST INCOME 62. $ 25,817,557

63.EXPENSES 64. 65.

66.Management fee (Note 4) $ 2,349,334 67.

68.Non-interested trustees' compensation 2,786 69.

70. Total expenses before reductions 2,352,120 71.

72. Expense reductions (Note 5) (14,626) 2,337,494

73.74.NET INTEREST INCOME 75. 23,480,063

76.REALIZED AND UNREALIZED GAIN (LOSS) ON 78. 79.
INVESTMENTS
(NOTES 1 AND 3)
77.Net realized gain (loss) on:

80. Investment securities 16,359,557 81.

82. Futures contracts 103,791 16,463,348

83.Change in net unrealized appreciation (depreciation) 84. 85.
on:

86. Investment securities 11,493,938 87.

88. Futures contracts (262,956) 11,230,982

89.90.NET GAIN (LOSS) 91. 27,694,330

92.93.NET INCREASE (DECREASE) IN NET ASSETS 94. $ 51,174,393
RESULTING FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR NINE MONTHS
ENDED ENDED
JANUARY 31, JANUARY 31, 1993
1994 (NOTE 1)

95.INCREASE (DECREASE) IN NET ASSETS

96.Operations $ 23,480,063 $ 15,105,468
Net interest income

97. Net realized gain (loss) on investments 16,463,348 4,173,330

98. Change in net unrealized appreciation (depreciation) 11,230,982 11,122,379
on investments

99. 100.NET INCREASE (DECREASE) IN NET ASSETS 51,174,393 30,401,177
RESULTING FROM
OPERATIONS

101.Distributions to shareholders from: (23,480,063) (15,105,468)
Net interest income

102. Net realized gain (10,666,976) (3,432,077)

103. In excess of net realized gains (22,625) -

104. (34,169,664) (18,537,545)
105.TOTAL DISTRIBUTIONS

106.Share transactions 144,000,852 112,264,272
Net proceeds from sales of shares

107. Reinvestment of distributions 29,862,234 16,453,825

108. Cost of shares redeemed (111,749,950) (65,700,537)

109. Redemption fees (Notes 1) 71,606 46,397

110. 62,184,742 63,063,957
Net increase (decrease) in net assets resulting from
share transactions

111. 79,189,471 74,927,589
112.TOTAL INCREASE (DECREASE) IN NET ASSETS

113.NET ASSETS 114. 115.

116. Beginning of period 366,840,104 291,912,515

117. End of period $ 446,029,575 $ 366,840,104

118.OTHER INFORMATION 120. 121.
119.Shares

122. Sold 12,748,068 10,386,130

123. Issued in reinvestment of distributions 2,634,889 1,521,897

124. Redeemed (9,860,924) (6,087,472)

125. Net increase (decrease) 5,522,033 5,820,555

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
126. YEAR NINE MONTHS YEARS ENDED APRIL 30, FEBRUARY 3,199
ENDED ENDED 0
JANUARY 31, JANUARY 31, (COMMENCEME
1993 NT
OF OPERATIONS) T
O
APRIL 30,

127. 1994 (NOTE 1) 1992 1991 1990

128.SELECTED PER-SHARE DATA

129.Net asset value, $ 10.890 $ 10.480 $ 10.090 $ 9.690 $ 10.000
beginning of
period

130.Income from .622 .491 .675 .717 .180
Investment
Operations
Net interest income

131. Net realized and .768 .518 .408 .394 (.318)
unrealized gain
(loss) on
investments

132. Total from 1.390 1.009 1.083 1.111 (.138)
investment
operations

133.Less Distributions (.622) (.491) (.675) (.717) (.180)
From net interest
income

134. From net (.280) (.110) (.020) - -
realized
gain on
investments

135. In excess of net - - - - -
realized gain

136. Total distributions (.902) (.601) (.695) (.717) (.180)

137.Redemption fees .002 .002 .002 .006 .008
added to paid in
capital

138.Net asset value, $ 11.380 $ 10.890 $ 10.480 $ 10.090 $ 9.690
end of period

139.TOTAL RETURN (dagger) 13.12 9.83% 11.03 11.88 (1.38)%
% % %

140.RATIOS AND SUPPLEMENTAL
DATA

141.Net assets, end of $ 446,030 $ 366,840 $ 291,913 $ 163,472 $ 57,083
period
(000 omitted)

142.Ratio of expenses .55 .48% .38 .19 -
to average net % * % %
assets (dagger)(dagger)

143.Ratio of expenses .55 .55% .55 .55 .55%*
to average net % * % %
assets before
expense
reductions (dagger)(dagger)

144.Ratio of net 5.49 6.03% 6.51 7.21 7.75%*
interest income to % * % %
average
net assets

145.Portfolio turnover 50 35% 21 40 24%*
rate % * % %

</TABLE>

* ANNUALIZED
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND WOULD HAVE BEEN LOWER
HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
(dagger)(dagger) SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value), and the effect of the $5 account closeout fee.
You can also look at the fund's income. If Fidelity had not reimbursed
certain fund expenses during the periods shown, the total returns,
dividends and yields would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED JANUARY 31, 1994 LIFE OF
FUND

Spartan New York Intermediate Municipal 1.23%

Lehman Brothers Municipal Bond Index n/a

Average New York Tax-Exempt
Intermediate Municipal Bond Fund n/a

Consumer Price Index 0.27%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, since the fund started on December 29, 1993. For example, if you
had invested $1,000 in a fund that had a 5% return over the past year, you
would end up with $1,050. Once the fund is six months old, you can compare
the fund's results to the performance of the Lehman Brothers Municipal Bond
Index - a broad gauge of the municipal bond market. To measure how the fund
stacks up against its peers (again, once it's six months old), you can also
look at the average New York tax-exempt intermediate municipal bond fund,
which reflects the performance of 14 New York tax-exempt intermediate
municipal bond funds tracked by Lipper Analytical Services. Both benchmarks
include reinvested dividends and capital gains, if any. Comparing the
fund's performance to the consumer price index helps show how your fund did
compared to inflation. (The period covered by the CPI number is the closest
available match
to that covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) results
and show you what would have happened if the fund had performed at a
constant rate each year. Average annual returns for the fund and its
benchmarks will appear in the fund's next annual report, once the fund is
older; this next report will also show the effect of investing $10,000 OVER
THE LIFE OF THE FUND for both the fund and the Lehman Brothers Municipal
Bond Index.
INCOME
DECEMBER 29, 1993
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1994

Income return 0.33%

Change in share price 0.90%
Total return 1.23%
INCOME returns and changes in share price are both part of a bond fund's
total return. An income return reflects the dividends paid by the fund and
assumes the dividends are reinvested. Changes in the fund's share price
include changes in the prices of the bonds owned by the fund. Change in
share price and total return figures include the effect of the $5 account
closeout fee.
DIVIDENDS AND YIELD
PERIOD ENDED JANUARY 31, 1994 PAST 30 LIFE OF
DAYS FUND

Dividends per share n/a 3.27(cents)

Annualized dividend rate n/a 3.50%

Annualized yield 3.87% n/a

Tax-equivalent yield 6.88% n/a

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.02 over
the life of the fund, you can compare the fund's income over these two
periods. The 30-day annualized YIELD is a standard formula for all funds
based on the yields of the bonds in the fund, averaged over the past 30
days. This figure shows you the yield characteristics of the fund's
investments at the end of the period. It also helps you compare funds from
different companies on an equal basis. The tax-equivalent yield shows what
you would have to earn on a taxable investment to equal the fund's tax-free
yield, if you're in the 43.71% combined effective 1994 federal, state and
New York City income tax bracket.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Bond investments - including
tax-free issues - provided
historically attractive returns for the
12 months ended January 31, 1994.
Falling interest rates pushed up bond
prices steadily through mid-October,
when the yield on the benchmark
30-year Treasury bond reached a
historic low of 5.79%. By year-end, a
strengthening economy had fueled
mild inflation fears, which helped
push up the yield on the 30-year
bond to 6.35% by December 31.
Inflation jitters eased in January, and
the yield on the long Treasury
dropped to 6.23% by month end.
Two factors affected municipal
bonds specifically: on the positive
side, higher federal taxes -
approved in August and discussed
all year - boosted demand. But
record new issuance kept supplies
high, which somewhat dampened
prices. The Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
rose 12.26% during the 12 months
ended January 31. By comparison,
the Lehman Brothers Aggregate
Bond Index - which tracks
investment-grade taxable bonds -
rose 9.14%, due in part to poor
performance by mortgage-backed
securities. Globally, falling interest
rates and low inflation drove strong
returns in Europe, Japan, and many
of the emerging markets. The
Salomon Brothers World
Government Bond Index - which
includes U.S. issues - rose 12.22%,
while the J.P. Morgan Emerging
Markets Bond Index was up 43.06%.
An interview with David Murphy, Portfolio Manager of Spartan New York
Intermediate Municipal Portfolio
Q. DAVID, HOW DID THE FUND DO?
A. The fund is only a month old. To draw comparisons so soon with other
funds could be misleading. That said, the fund's total return from the
start of operations on December 29, 1993 to January 31, 1994 was 1.23%.
Q. WHAT'S YOUR STRATEGY WITH THE QUALITY OF THE FUND?
A. I'm using a quality barbell strategy. If you picture a barbell, the ends
are heavy and the middle is light. On the one end, I've bought the
highest-rated bonds - those with a rating of Aaa from Moody's. That's in
part because AA- and A- rated bonds haven't offered an attractive amount of
additional income. On the other end, I've bought lower-rated (Baa)
investment-grade bonds - which provide the fund with much of its yield. In
this area, too, there was an abundant supply which has kept prices low.
Q. AND IN TERMS OF MATURITY, HOW HAVE YOU STRUCTURED THE FUND?
A. I've used a barbell approach here too. I've been buying bonds with
five-year and 15-year maturities. The bonds with 15-year maturities offer
substantially higher yields than less volatile shorter-term bonds but with
less risk than higher-yielding longer-term bonds. Bonds with maturities of
five years offer more yield than bonds with shorter maturities, but again,
without the risk of longer-term bonds. The fund's duration - a measure of
how much its share price will vary with changes in interest rates - stood
at 5.2 years at the end of the period. In the future, I expect to lengthen
duration to as long as 7 years.
Q. ARE THERE ANY PARTS OF THE NEW YORK MUNICIPAL MARKET THAT LOOK
PARTICULARLY ATTRACTIVE RIGHT NOW?
A. New York City bonds are one of the fund's largest investments. Mainly I
like them because they offer attractive yields. I'm not looking for
immediate improvement in the city's economy. But I think the new
administration is heading in the right direction by discussing ways to cut
its budget.
Q. JUST AFTER THE PERIOD ENDED, THE FEDERAL RESERVE RAISED SHORT-TERM
INTEREST RATES. WILL THAT MOVE AFFECT YOUR STRATEGY?
A. Not really. I think the Fed's action is positive for the bond market. My
view is that it signals that they're very serious about being the inflation
watchdog. Low inflation is generally good for bonds. But even before the
Fed action, I didn't think inflation would rise. Historically, a pick-up in
the economy - like we saw in the fourth quarter of 1993 - means higher
inflation. But this time, I don't think that relationship will hold up.
Q. WHY NOT?
A. Because we still haven't seen a dramatic increase in any of the three
basic components of higher inflation: commodity prices, labor costs and the
cost of borrowing money. While it's true that some commodity prices like
gold and agricultural products have risen, it hasn't been an
across-the-board hike. Energy prices, for example, are lower than they were
a year ago. And some of the hike in agricultural products can be attributed
to extraordinary factors like last year's flood and the recent cold
weather.
Q. AND THE OTHER TWO INFLATIONARY SIGNALS?
A. On the wage side, many U.S. companies now have the flexibility to move
their production overseas, where labor prices are often cheaper, and that's
kept pressure on labor costs in the United States. What's more,
productivity has increased, which means the actual cost of producing one
unit of a given good has come down. Finally, the cost of borrowing money or
raising capital has dropped because interest rates are low. In my view,
these all add up to continued low inflation, which in turn could lead to
falling interest rates, especially for bonds at the longer end of the
maturity spectrum - between 10 and 30 years.
Q. SO, WHAT CAN INVESTORS EXPECT?
A. First of all, municipal bond investors should expect more modest returns
than we saw in 1993. Even so, I think that long-term municipal rates could
continue to fall over the coming year. I also think intermediate rates
could come down as well. Plus, the dwindling supply of municipal bonds
should help the municipal market in 1994. Last year, the total supply of
municipals issued was about $290 billion; this year it will probably be
about half of that. Falling interest rates and dwindling supply would bode
well for municipal bond prices.
FUND FACTS
GOAL: to provide high current
income exempt from federal,
state and New York City
income taxes by investing
mainly in investment grade
New York municipal securities
START DATE: December 29,
1993
SIZE: as of January 31, 1994,
over $9 million
MANAGER: David Murphy,
since December 1993;
manager, Spartan
Short-Intermediate Municipal
Fund, since December 1989;
Spartan Intermediate Municipal
Portfolio, since April 1993;
Spartan New Jersey Municipal
High Yield Portfolio, since April
1991; Fidelity Limited Term
Municipals, since December
1989; Fidelity New York
Tax-Free Insured Portfolio,
October 1992 to March 1994
(checkmark)

DAVID MURPHY'S
INVESTMENT STRATEGY:
"There's a lot of noise in
economic statistics now,
meaning there are some
conflicting signals on which
way the economy and interest
rates are headed. I've built the
fund around trends I think will
develop over the next one to
three years. So I try to filter
out the noise in the numbers
and determine whether
there's a significant trend
change or if the numbers are
a short-lived fluke."
(bullet) On January 31, about 44%
of the fund's assets were in
cash and other short-term
instruments. That unusually
high level was accounted for
by the large amount of money
that came into the fund at
month's end. The fund's
target cash level is about 5%.
(bullet) Nearly 15% of the fund's
investments were in
state-appropriated bonds on
January 31. These bonds rely
on annual appropriations by
the state legislature to meet
all or part of the principal and
interest payments. They are
attractive, in part, because
they offer high yields. What's
more, they could be upgraded
during the next 12 months
which could translate into
higher prices.
(bullet) Because of recent tax hikes
on the federal level, some
New York residents could be
subject to a tax rate as high as
46.88%.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

INVESTMENT SUMMARY

TOP FIVE SECTORS AS OF JANUARY 31, 1994
% OF FUND'S
INVESTMENTS

Education 17.5

General Obligation 15.3

Industrial Development 14.0

Transportation 10.3

Electric Revenue 9.5

AVERAGE YEARS TO MATURITY AS OF JANUARY 31, 1994

Years 7.4

AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL OF THE
BONDS IN THE FUND IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF JANUARY 31, 1994

Years 5.2

DURATION SHOWS HOW MUCH A BOND'S PRICE FLUCTUATES WITH CHANGES IN INTEREST
RATES. IF RATES RISE 1%, FOR EXAMPLE, THE SHARE PRICE OF A FUND WITH A
FIVE-YEAR DURATION WILL FALL 5%.
QUALITY DIVERSIFICATION AS OF JANUARY 31, 1994
(MOODY'S RATINGS)
Aaa 43.2%
Aa, A 20.8%
Baa 36.0%
Ba, B 0.0%
Non-rated 0.0%
Row: 1, Col: 1, Value: 43.2
Row: 1, Col: 2, Value: 20.8
Row: 1, Col: 3, Value: 36.0
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
THIS CHART EXCLUDES SHORT-TERM INVESTMENTS. WHERE MOODY'S RATINGS ARE NOT
AVAILABLE, WE HAVE USED S&P RATINGS.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

INVESTMENTS/JANUARY 31, 1994
(Showing Percentage of Total Value of Investments)

MUNICIPAL BONDS - 62.6%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 55.7%
Buffalo Swr. Auth. Rev. Series D, 7.625%
7/1/06, (AMBAC Insured)
(Pre-Refunded to 7/1/96 @103) (d) Aaa $ 90,000 $ 101,363 119730DX
Metropolitan Trans. Auth. Svc. Contract
(Trans. Facs.):
Series O, 5.25% 7/1/01 Baa1 100,000 102,750 592597A7
Series 7, 0% 7/1/10 Baa1 840,000 336,000 592597J9
Nassau County Rfdg. Comb. Swr. Dist.,
Series E, 5.30% 7/1/07,
(MBIA Insured) Aaa 350,000 367,938 631655BH
Nassau County Unltd. Tax, Series N,
6.125%, 10/15/11 (AMBAC Insured) Aaa 90,000 98,663 6316544X
New York City Health & Hosp. Corp. Rev.,
Series A, 3.40% 2/15/94 Baa 100,000 100,000 649674AK
New York City Short Rites, Series C,
8.35% 8/1/03 (e) Baa1 350,000 392,875 649652MT
New York State Ctfs. of Participation
6.70% 9/1/97 Baa1 410,000 440,750 649810JK
New York State Dorm Auth. Rev.:
Rfdg. (New York Univ.) Series A,
5% 7/1/08, (MBIA Insured) Aaa 450,000 455,063 649834SR
(City Univ.) Series F, 5.25% 7/1/06,
(FGIC Insured) Aaa 200,000 208,000 649834RH
(College & Univ. Ed.) 0% 7/1/06
(MBIA Insured) (c) Aaa 825,000 441,375 649834MK
(State Univ. Edl. Facs.) Series C,
7% 5/15/18
(Pre-Refunded to 5/15/00 @102) (d) Baa1 180,000 212,400 649834CH
New York State Local Gov't. Assistance
Corp., Series D, 5.10% 4/1/07 A 250,000 251,875 649876KF
New York State Pwr. Auth. Rev. & Gen.
Purp. Rfdg.:
Series CC, 5% 1/1/07 Aa 120,000 121,500 649892B5
Series W, 6.50% 1/1/08 Aa 250,000 292,813 649892WC
North Hempstead Solid Wst. Mgt.,
4.90% 2/1/06, (MBIA Insured) Aaa 125,000 125,468 659675AM
Rochester Non-Callable Bonds, Series A,
4.70% 8/15/94 Aaa 100,000 101,250 771690YF
Suffolk County Wtr. Auth. 5.75% 6/1/10,
(AMBAC Insured) Aaa 200,000 210,000 864779M2
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Triborough Bridge & Tunnel Auth. Rev. Gen.
Purp. Rfdg., Series A, 5% 1/1/12 Aa $ 200,000 $ 196,250 896029ZK
Triborough Bridge & Tunnel Auth. Rev.,
Series R, 6% 1/1/20, (MBIA Insured)
(Pre-Refunded to 1/1/00 @100) (d) Aaa 90,000 99,112 896029XV
Westchester County Unltd. Tax, Series B,
4.20% 12/15/94 Aaa 100,000 101,500 957365G4
4,756,945
NEW YORK & NEW JERSEY - 2.9%
New York & New Jersey Port Auth.,
Consolidated 92nd Series, 5% 7/1/13 A1 250,000 248,750 733580P4
PUERTO RICO - 4.0%
Puerto Rico Commonwealth Gen. Oblig.
5.70% 7/1/08 Baa1 200,000 211,250 745144EB
Puerto Rico Commonwealth Gen. Oblig.
Rfdg. Impt., 5.375% 7/1/06 Baa1 125,000 130,468 745144KE
341,718
TOTAL MUNICIPAL BONDS
(Cost $5,283,622) 5,347,413
MUNICIPAL NOTES (A) - 37.4%

NEW YORK - 37.4%
Amherst Ind. Dev. Auth. Ind. Dev. Rev.
(Maple Dev. Proj.) Series 1986, 2.50%,
LOC Marine Midland Bank, VRDN (c) - 200,000 200,000 031366AQ
Chautauqua County Ind. Dev. Auth. Rev.
(Bush Industries Inc. Proj.) Series 84,
2.50%, LOC Marine Midland Bank,
VRDN - 300,000 300,000 1625459T
Erie County Ind. Dev. Auth. Ind. Dev. Rev.
(The Hollins Press, Inc.) Series 1989 F,
2.60%, LOC Marine Midland Bank,
VRDN (c) - 300,000 300,000 295088ED
New York City Ind. Dev. Agcy. Ind. Dev. Rev.
(Nippon Cargo Airlines Co.) Series 1992,
2.35%, LOC Ind. Bank of Japan,
VRDN (c) A-1+ 400,000 400,000 649705FV
MUNICIPAL NOTES (A) - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev., VRDN:
Series 1993 C, 2.15%, (FGIC Insured) VMIG 1 $ 200,000 $ 200,000
649706YF
Series 1994 C, 2.15%, (FGIC Insured) - 100,000 100,000 649706B4
New York City Trust Cultural Resources Rev.
(Guggenheim Foundation) Series 1990 B,
2.05%, LOC Swiss Bank, VRDN VMIG 1 300,000 300,000 649717DF
New York State Dorm Auth. Rev. (Cornell Univ.)
Series 1990 B, 2.05%, BPA Morgan
Guaranty, VRDN VMIG 1 300,000 300,000 649832LX
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev. (Niagra Mohawk Proj.)
Series 1985 A, 1.95%, LOC Toronto-Dominion
Bank, VRDN A-1 400,000 400,000 649845BK
New York State Envir. Facs. Corp. Research
Recovery Rev. (Hunting, Inc. Proj.)
Series 1989, 2.20%, LOC Union Bank of
Switzerland, VRDN (c) A-1+ 400,000 400,000 649900AK
Suffolk County Ind. Dev. Agcy. (Cold Spring
Harbor Lab. Proj.) Series 93, 2.05%,
LOC Morgan Guaranty, VRDN A-1+ 300,000 300,000 864773AA
TOTAL MUNICIPAL NOTES
(Cost $3,200,000) 3,200,000
TOTAL INVESTMENTS - 100%
(Cost $8,483,622) $ 8,547,413

SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Standard & Poor's Corporation credit ratings are used in the
absence of a rating by Moody's Investors Service, Inc.
(c) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
(d) Security collateralized by an amount sufficient to pay interest and
principal.
(e) Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate. The price will be more
volatile than the price of a comparable fixed rate security.
INCOME TAX INFORMATION
At January 31, 1994, the aggregate cost of investment securities for income
tax purposes was $8,483,622. Net unrealized appreciation (depreciation)
aggregated $63,791, of which $63,791 related to appreciated investment
securities and $0 related to depreciated investment securities.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investments in securities is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 40.0% AAA, AA, A 48.6%
Baa 22.5% BBB 13.9%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.0%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investments, is as follows:
Education 17.5%
General Obligation 15.3
Industrial Development 14.0
Transportation 10.3
Others
(individually less than 10%) 42.9
TOTAL 100.0%
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1994

146.ASSETS 147. 148.

149.Investment in securities, at value (cost $8,483,622) 150. $ 8,547,413
(Notes 1 and 2) - See accompanying schedule

151.Cash 152. 1,124,131

153.Interest receivable 154. 54,631

155.Receivable from investment adviser for expense re 156. 2,096
ductions
(Note 5)

157. 158.TOTAL ASSETS 159. 9,728,271

160.LIABILITIES 161. 162.

163.Payable for investments purchased $ 451,860 164.

165.Dividends payable 954 166.

167.Accrued management fee 2,096 168.

169. 170.TOTAL LIABILITIES 171. 454,910

172.173.NET ASSETS 174. $ 9,273,361

175.Net Assets consist of: 176. 177.

178.Paid in capital 179. $ 9,209,570

180.Net unrealized appreciation (depreciation) on invest 181. 63,791
ment
securities

182.183.NET ASSETS, for 918,724 shares outstanding 184. $ 9,273,361

185.186.NET ASSET VALUE, offering price and redemptio 187. $10.09
n price per
share ($9,273,361 (divided by) 918,724 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 29, 1993 (COMMENCEMENT OF OPERATIONS) TO JANUARY 31, 1994

188.189.INTEREST INCOME 190. $ 15,336

191.EXPENSES 192. 193.

194.Management fee (Note 4) $ 2,191 195.

196.Non-interested trustees' compensation - 197.

198. Total expenses before reductions 2,191 199.

200. Expense reductions (Note 5) (2,191) -

201.202.NET INTEREST INCOME 203. 15,336

204.UNREALIZED GAIN (LOSS) ON INVESTMENTS 205.
(NOTES 1 AND 3)

206.Change in net unrealized appreciation (depreciation 207. 63,791
)
on investment securities

208.209.NET INCREASE (DECREASE) IN NET ASSETS RESULT 210. $ 79,127
ING FROM
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C>
DECEMBER 29, 199
3
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31,
1994

211.INCREASE (DECREASE) IN NET ASSETS

212.Operations $ 15,336
Net interest income

213. Change in net unrealized appreciation (depreciation) on investments 63,791

214. 79,127
215.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIO
NS

216.Dividends to shareholders from net interest income (15,336)

217.Share transactions 9,245,191
Net proceeds from sales of shares

218. Reinvestment of dividends from net interest income 14,379

219. Cost of shares redeemed (50,000)

220. 9,209,570
Net increase (decrease) in net assets resulting from share transactions

221. 9,273,361
222.TOTAL INCREASE (DECREASE) IN NET ASSETS

223.NET ASSETS 224.

225. Beginning of period -

226. End of period $ 9,273,361

227.OTHER INFORMATION 229.
228.Shares

230. Sold 922,260

231. Issued in reinvestment of dividends from net interest income 1,425

232. Redeemed (4,961)

233. Net increase (decrease) 918,724

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C>
234. DECEMBER 29, 199
3
(COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31, 1994

235.SELECTED PER-SHARE DATA

236.Net asset value, beginning of period $ 10.000

237.Income from Investment Operations .033
Net interest income

238. Net unrealized gain (loss) on investments .090

239. Total from investment operations .123

240.Less Distributions (.033)
From net interest income

241.Net asset value, end of period $ 10.090

242.TOTAL RETURN(dagger)(dagger) 1.23%

243.RATIOS AND SUPPLEMENTAL DATA

244.Net assets, end of period (000 omitted) $ 9,273

245.Ratio of expenses to average net assets(dagger)(dagger)(dagger) -

246.Ratio of expenses to average net assets before expense reductions .55%*
(dagger)(dagger)(dagger)

247.Ratio of net interest income to average net assets 3.85%*

248.Portfolio turnover rate -

</TABLE>

PERFORMANCE: THE BOTTOM LINE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of the fund's $5 account closeout fee. Yield measures the income
paid by a fund. Since a money market fund tries to maintain a $1 share
price, yield is an important measure of performance. Both the fund's
returns and yields would have been lower if Fidelity hadn't reimbursed
certain fund expenses.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan New York Municipal Money Market 1.98% 15.08%

Consumer Price Index 2.52% 14.76%

Average New York Tax-Free
Money Market Fund 1.76% 13.46%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, one year or since the fund started on February 3, 1990. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, you would have $1,050. Comparing the fund's performance to the
consumer price index (CPI) helps show how your investment did compared to
inflation. To measure how the fund stacked up against its peers, you can
compare its return to the average New York tax-free money market fund's
total return. This average currently reflects the performance of 36
tax-free money market funds tracked by IBC/Donoghue. (The periods covered
by the CPI and IBC/Donoghue numbers are the closest available match to
those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan New York Municipal Money Market 1.98% 3.58%

Consumer Price Index 2.52% 3.50%

Average New York Tax-Free
Money Market Fund 1.76% 3.21%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
1/31/93 4/30/93 7/31/93 10/31/93 1/31/94

Spartan New York 2.06% 2.01% 2.06% 2.08% 1.90%
Municipal Money Market

Average New York Tax-Free 1.87% 1.73% 1.86% 1.85% 1.67%
Money Market Fund

Spartan New York 3.66% 3.57% 3.66% 3.70% 3.38%
Municipal Money Market -
Tax-equivalent

Average All Taxable 2.74% 2.62% 2.65% 2.66% 2.68%
Money Market Fund

Row: 1, Col: 1, Value: 2.06
Row: 1, Col: 2, Value: 1.87
Row: 2, Col: 1, Value: 2.01
Row: 2, Col: 2, Value: 1.73
Row: 3, Col: 1, Value: 2.06
Row: 3, Col: 2, Value: 1.86
Row: 4, Col: 1, Value: 2.08
Row: 4, Col: 2, Value: 1.85
Row: 5, Col: 1, Value: 1.9
Row: 5, Col: 2, Value: 1.67
Spartan New York
Municipal Money
Market
Average New York
Tax-Free Money
Market Fund
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the average all tax-free money market fund. Or you
can look at the fund's tax-equivalent yield, which is based on a combined
effective 1994 federal, state and New York City income tax rate of 43.71%.
The tax-equivalent figures are useful in seeing how the fund stacked up
against the average taxable money market fund as tracked by IBC/Donoghue.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS REFLECT PAST RESULTS RATHER
THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
SPARTAN NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jan Bradburn, Portfolio Manager of Spartan
New York Municipal Money Market Portfolio
Q. JAN, WHAT HAS THE SHORT-TERM SIDE OF THE MARKET BEEN LIKE OVER THE PAST
12 MONTHS?
A. Short-term interest rates have remained pretty stable. Both the federal
funds rate - what banks charge each other for overnight loans - and the
discount rate - what the Federal Reserve charges member banks - have been
at or near 3% since the fall of 1992. Inflation wasn't a big issue either,
despite brief scares last spring and again in November. Supply and demand
factors had a much bigger effect on how I managed the fund than movements
in interest rates.
Q. WHY?
A. Last fall, the short-term market experienced an unusually strong surge
in supply. This glut of new securities forced issuers to offer very
attractive yields, which provided enticing buying opportunities. For
example, the fund's investments usually have yields that are about 68 to
72% of Treasuries with similar maturities. But last fall, many of the
issues on the market had yields that were 80 to 85% of comparable
Treasuries. I stocked up, which caused the fund's average maturity to
lengthen from 69 days at the end of July to 80 days at the end of October.
Then supply began to dry up, and I began to worry about the Fed possibly
triggering a rise in interest rates. I let the average maturity roll back
down to 65 days by the end of January.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on January 31, 1994 was 1.90%, down from
2.06% a year ago. That reflects the general drop in short-term interest
rates over the past year. The latest yield translates into a tax-equivalent
yield of 3.38% for investors in the 43.71% combined effective 1994 federal,
state and New York City tax bracket. The fund's total return - which
assumes reinvestment of monthly dividends - for the 12 months ended January
31 was 1.98%. The average New York tax-free money market fund had a total
return of 1.76%.
Q. WHAT AFFECTED PERFORMANCE?
A. I kept about a 20% stake in simple derivatives over the last six months,
which helped the fund. These issues combine a long-term municipal bond with
a "put," or an option to sell to a third party, typically a bank. The end
product is an investment that pays a short-term variable interest rate and
can be put on short notice, usually seven days. It acts much like any other
variable rate demand note the fund might own, with one key difference: the
yield is slightly higher, a fact that has more to do with the added
complexity of these instruments than added investment risk.
Q. WHAT'S AHEAD FOR THE FUND?
A. During the first week in February, the Fed raised the federal funds rate
to 3.25%, effectively raising all short-term interest rates. Although
currently inflation doesn't look like an increasing concern, I think
there's a good chance the Fed could make more of these "preemptive strikes"
to curb inflation threats before they happen. I'll prepare the fund for
higher rates in two ways: First, I plan to keep the average maturity in a
neutral range, say 50 to 60 days, and second, I'll most likely increase the
fund's investment in variable rate instruments. The coupons (stated
interest rates) on these securities are reset at fixed intervals - for
example, weekly or monthly. So when rates rise, the fund can benefit from
higher coupons at these reset intervals.
FUND FACTS
GOAL: tax-free income with
share price stability by
investing in high-quality
short-term New York municipal
securities
START DATE: February 3, 1990
SIZE: as of January 31, 1994,
over $462 million
MANAGER: Janice Bradburn,
since February 1990;
manager, Fidelity Ohio
Municipal Money Market
Portfolio, since October 1993;
Fidelity and Spartan
Massachusetts Municipal
Money Market Portfolios, since
January, 1992; Fidelity New
York Tax-Free Money Market
Portfolio, since September
1989
(checkmark)

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
1/31/94 7/31/93 1/31/93

0 - 30 59.8 60.9 59.1

31 - 90 14.0 14.7 11.5

91 - 180 12.9 8.0 24.1

181 - 397 13.3 16.4 5.3

WEIGHTED AVERAGE MATURITY
1/31/94 7/31/93 1/31/93

Spartan New York
Municipal Money Market 65 days 69 days 60 days

Average New York Tax-Fre
e 58 days 67 days 57 days
Money Market Fund*

ASSET ALLOCATION
AS OF 1/31/94 AS OF 7/31/93

Row: 1, Col: 1, Value: 48.9
Row: 1, Col: 2, Value: 7.2
Row: 1, Col: 3, Value: 12.4
Row: 1, Col: 4, Value: 28.5
Row: 1, Col: 5, Value: 3.0
Row: 1, Col: 1, Value: 51.7
Row: 1, Col: 2, Value: 5.1
Row: 1, Col: 3, Value: 8.9
Row: 1, Col: 4, Value: 32.4
Row: 1, Col: 5, Value: 1.9
Variable rate
demand notes
(VRDNs) 48.9%
Commercial
paper 7.2%
Tender bonds 12.4%
Municipal
notes 28.5%
Other 3.0%
Variable rate
demand notes
(VRDNs) 51.7%
Commercial
paper 5.1%
Tender bonds 8.9%
Municipal
notes 32.4%
Other 1.9%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(Registered trademark)
SPARTAN NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO

INVESTMENTS/JANUARY 31, 1994
(Showing Percentage of Total Value of Investments)

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 93.9%
Amherst Ind. Dev. Auth. Ind. Dev. Rev. (Maple Dev. Proj.)
Series 1986, 2.50%, LOC Marine Midland Bank,
VRDN (b) $ 4,660,000 $ 4,660,000 031366AQ
Babylon BAN 3% 9/21/94 9,000,000 9,028,098 056201Q6
Battery Park City Auth. Rev. Adj. Trust Ctfs., Series C, 2.35%,
(Liquidity Enhancement Sumitomo Bank), VRDN (c) 6,000,000 6,000,000
07133ABM
Bethpage Union Free School District TRAN 3.25% 6/24/94 2,595,000
2,599,897 087599BD
Brockport BAN 2.6% 4/21/94 1,200,000 1,200,000 111709DK
Chautauqua County Ind. Dev. Agcy. Rev. (Red Wing Co.
Proj.) Series 1985, 2.45%, LOC Bankers Trust, VRDN 100,000 100,000
162545AD
Commack Union Free School Dist. TAN 3.40% 6/30/94 7,300,000 7,314,832
200489CR
Connetquot Central School Dist. TAN:
3.125% 6/30/94 2,500,000 2,503,353 208201AS
3.25% 6/30/94 4,500,000 4,508,098 208201AT
Dutchess County Ind. Dev. Auth. Rev. (Toys "R" Us)
(U.S. Nytex, Inc. Proj.) 2.175%, LOC Bankers
Trust, VRDN 500,000 500,000 267035AA
East Meadow Union Free School Dist. TAN
3.125% 6/29/94 1,800,000 1,801,243 273641CC
Erie County Ind. Dev. Auth. Ind. Dev. Rev., VRDN:
(Elope Co. Project) 2.50%, LOC Marine Midland Bank 2,000,000 2,000,000
295088EZ
(Uniland Dev./Buffalo Campus-B) 2.50%,
LOC Marine Midland Bank (b) 1,265,000 1,265,000 295088DZ
Erie County Serial Rfdg. Bonds, Series 93-A, 10%
2/1/94, (FGIC Insured) 1,430,000 1,430,000 295083D8
Franklin County Ind. Dev. Auth. Ind. Dev. Rev.
(Kes Chateaugay) Series 1991 A, 2.10%,
LOC Bank of Tokyo, VRDN (b) 12,900,000 12,900,000 353142AC
Garden City BAN 3% 12/22/94 2,820,000 2,825,309 365154HG
Hempstead BAN:
Series D, 3.25% 8/19/94 2,000,000 2,004,536 424669FR
2.75% 6/3/94 2,551,000 2,552,663 424669FN
Herkimer County Ind. Rev. Agcy. (H.M. Quackenbush, Inc.)
Series 1988 A, 2.50%, LOC Marine Midland Bank,
VRDN (b) 1,275,000 1,275,000 427295AN
Islip Gen. Oblig. BAN 3.40% 8/24/94 2,000,000 2,004,337 464722XT
Lewis County Ind. Dev. Auth. Ind. Dev. Rev.
(Philip Morris Proj.) 2.30%, VRDN 1,300,000 1,300,000 527780AG
Longbeach Union Free School Dist. TAN
2.92% 6/29/94 1,000,000 1,000,075 542535FN
Metropolitan Transit Auth. Tender Option Bond,
Series D, 2.40%, (Liquidity Enhancement Dai-Ichi
Kangyo Bank), VRDN (c) 11,700,000 11,700,000 592598XB
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Metropolitan Transit Authority Trust Ctfs., VRDN: (c)
Series 1993 B, 2.25%, (Liquidity Enhancement Hong
Kong & Shanghai Banking Corp.) $ 9,000,000 $ 9,000,000 91828FAJ
Series 1993 C, 2.25%, (Liquidity Enhancement Hong
Kong & Shanghai Banking Corp.) 10,000,000 10,000,000 91828FAM
Middle Country Century School Dist. (Centerreach) TAN:
3% 6/30/94 4,000,000 4,004,007 595685EQ
3.125% 6/30/94 2,000,000 2,003,018 595685ER
Monroe County Ind. Dev. Auth. Agcy. Rev., VRDN: (b)
(515 Lee Rd. Assoc./Nylomold Corp.) Series 1988 C,
2.50%, LOC Marine Midland Bank 500,000 500,000 610755GE
(Advent Tool & Mold) Series 1990, 2.50%,
LOC Marine Midland Bank 1,055,000 1,055,000 610755MD
(JMT Prop. Proj.) Series 1988 B, 2.50%,
LOC Marine Midland Bank 2,320,000 2,320,000 610755GD
Nassau County Combined Swr. Dist. Bonds:
Rfdg., Series F, 2.80% 7/1/94, (MBIA Insured) 2,315,000 2,315,918
6316534F
7% 2/1/94, (MBIA Insured) 1,500,000 1,530,000 631653QU
Nassau County Puttable Floating Option Tax-Exempt Receipts,
Series PA-27, 2.35%,
(Liquidity Enhancement Merrill Lynch), VRDN (c) 2,400,000 2,400,000
631655EY
New Rochelle BAN 2.58% 3/24/94 (b) 3,131,000 3,131,039 648516SY
New York City Eagle Trust, Series 1994 C-3,
2.20%, (Liquidity Enhancement Citibank), VRDN (c) 10,100,000 10,100,000
269896DJ
New York City Gen. Oblig.:
Series A, RAN:
3.25% 4/15/94 11,000,000 11,010,408 6496472M
3.50% 4/15/94 6,700,000 6,708,993 6496472L
Series 1994 A, 2.15% 4/8/94, VAN 5,300,000 5,300,000 6496472Q
New York City Hsg. Dev. Corp. Multi-Family Mtg. Rev.
(Columbus Green Proj.) Series 1993 A, 2.15%,
LOC Citibank, VRDN 7,600,000 7,600,000 649702PE
New York City Hsg. Dev. Corp. Rev. (Carnegie Park Proj.) VRDN:
Series 1984 A, 2.90%, LOC Sumitomo Trust 12,100,000 12,100,000
64970T9A
Series 1988 A, 3.10%, LOC Sumitomo Trust (b) 1,000,000 1,000,000
64970TAA
New York City Ind. Dev. Agcy. Ind. Dev. Rev., VRDN: (b)
(Andin Int'l.) 2.15%, LOC ABN-AMRO NV 2,500,000 2,500,000 649705BN
(Apache Realty) 2.15%, LOC ABN-AMRO NV 1,450,000 1,450,000 649705DT
(Bowe Industries, Inc.) 2.15%, LOC ABN-AMRO NV 1,900,000 1,900,000
649705EG
(Display Sys., Inc.) Series 1990 E, 2.15%,
LOC ABN-AMRO NV 500,000 500,000 649705DY
(Matsco Leasing Ltd.) 2.15%, LOC Algemene Bank 1,300,000 1,300,000
649705BP
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Ind. Dev. Agcy. Ind. Dev. Rev., VRDN: (b) - continued
(Metro Health Weight Process) 2.80%,
LOC Nat'l. Westminster Bank $ 5,400,000 $ 5,400,000 649705DW
(Nippon Cargo Airlines Co.) Series 1992,2.35%,
LOC Ind. Bank of Japan 2,000,000 2,000,000 649705FV
New York City Muni. Fin. Auth. Variable Rate Trust Ctfs.,
Series 1992 A, 2.25%, (Liquidity Enhancement
Hong Kong & Shanghai Banking Corp.), VRDN (c) 14,000,000 14,000,000
91828FAC
New York State Dorm. Auth. Rev.
(Sloan-Kettering Cancer Ctr.) VT:
Series 1989 A:
2.30% 3/23/94, LOC Fuji Bank 5,000,000 5,000,000 6509934W
2.40% 3/29/94, LOC Fuji Bank 5,500,000 5,500,000 6509935D
Series 1989 C, 2.40% 3/29/94, LOC Fuji Bank 2,700,000 2,700,000
6509935C
New York State Dorm. Auth. Rev. Bonds (Education Facs.)
Series C, 5.10% 5/15/94 3,000,000 3,020,663 649833QG
New York State Dorm. Auth. Rev. Custodial Receipts,
Series 1992 A32, 2.35%,
(Liquidity Enhancement Sakura Bank), VRDN (c) 2,000,000 2,000,000
649832R8
New York State Energy Research & Dev. Auth. Poll. Cont. Rev.:
(Long Island Lighting Co. Proj.) Series 1985 A, 2.50%
3/1/94, LOC Deutsche Bank, MT 3,960,000 3,960,000 649845CW
(New York State Elec. & Gas Corp.):
Series B, 2.85% 10/15/94, LOC Union Bank of
Switzerland, OT 3,200,000 3,199,641 649845BL
Series 1984 A, 2.80% 12/1/94, LOC Union Bank of
Switzerland, OT 5,560,000 5,560,000 649845AZ
Series 1985 A, 2.50% 3/15/94, LOC Morgan Bank
Delaware, OT 1,630,000 1,630,000 649845BC
Series 1985 D, 2.75% 12/1/94, LOC Union Bank of
Switzerland, OT 1,500,000 1,501,823 649845BQ
(Niagra Mohawk Proj.) Series 1985 A, 1.95%,
LOC Toronto-Dominion Bank, VRDN 1,000,000 1,000,000 649845BK
Series 1985 B, 2.50% 3/1/94, LOC Deutsche Bank, MT 5,465,000 5,465,000
649845CX
New York State Energy Research & Dev. Auth. Rev.
(Long Island Lighting Co. Proj.):
Series 93, 2.85% 11/1/94, LOC Toronto-Dominion
Bank, MT 4,500,000 4,500,000 649841BU
Series 93 A, 2.15%, LOC Toronto-Dominion
Bank, VRDN 13,300,000 13,300,000 649841BV
New York State Environmental Facs. Corp. Solid. Wst. Rev.
Rfdg. (Gen. Elec. Proj.) Series 1992 A, 2.20%,
2/23/94, VT (b) 2,000,000 2,000,000 649992EU
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Gen. Oblig. Rev., CP:
Series N, 2.30% 4/26/94 $ 2,500,000 $ 2,500,000 649993TC
Series O:
2.50% 2/24/94 1,300,000 1,300,000 649993ST
2.25% 3/23/94 5,800,000 5,800,000 649993SY
2.30% 4/26/94 1,500,000 1,500,000 649993TD
Series P:
2.45% 3/1/94 4,100,000 4,100,000 649993SV
2.25% 3/9/94 2,400,000 2,400,000 649993TB
New York State Med. Care Facs. Fin. Agcy. Puttable Floating
Option Tax-Exempt Receipts, Series PA-61, 2.30%,
(Liquidity Enhancement Merrill Lynch), VRDN (c) 2,625,000 2,625,000
64988JKM
New York State Med. Care Facs. Fin. Agcy. Rev.
(Lenox Hill Hosp. Proj.) Series A, 2.05%,
LOC Chemical Bank, VRDN 2,500,000 2,500,000 64988HBG
(Montefiore Med. Hosp.) Series A, 10.25% 2/15/94 3,500,000 3,597,507
649881HS
New York State Mtg. Agcy. Puttable Floating Option
Tax-Exempt Receipts, VRDN: (c)
Series PA-29, 2.35%,
(Liquidity Enhancement Dai-Ichi Kangyo Bank) 6,000,000 6,000,000
649885ZM
Series PT 15-A, 2.40%,
(Liquidity Enhancement Dai-Ichi Kangyo Bank) 4,500,000 4,500,000
649885C7
Series PT 15-B, 2.40%,
(Liquidity Enhancement Dai-Ichi Kangyo Bank) 4,500,000 4,500,000
649885C9
New York State Mtg. Agcy. Rev., MT:
Series 31-C, 2.80% 6/1/94 1,000,000 1,000,000 649885WS
Series 32-B, 2.75% 3/1/94 (b) 4,500,000 4,500,000 649885WR
Series 32-C, 2.90% 6/1/94 (b) 5,000,000 5,000,000 649885WT
New York State Pwr. Auth. Rev. & Gen. Purp.,
2.70% 3/1/94, OT 14,900,000 14,900,042 649892RG
New York Variable Rate Trust Ctfs., VRDN: (c)
Series 93 G, 2.25%, (Liquidity Enhancement Hong
Kong & Shanghai Banking Corp.) 6,200,000 6,200,000 91828FAZ
Series V, 2.20% (Liquidity Enhancement Bankers Trust) 5,100,000
5,100,000 99299EAA
Niagara County Ind. Dev. Auth. Rev.
(Gen. Abrasive Treibacher) Series 1991, 2.45%,
LOC Creditanstalt Bankverein, VRDN (b) 1,000,000 1,000,000 653358BG
Oswego BAN 3.10% 1/26/95 2,900,000 2,909,696 688698NX
Oswego County Ind. Dev. Agcy. Ind. Dev. Rev.
(Engraph Inc. Proj.) Series 89, 2.35%,
LOC Suntrust Banks Inc., VRDN (b) 5,620,000 5,620,000 688642BR
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Oswego County Ind. Dev. Agcy. Poll. Cont. Rev. Rfdg.
(Phillip Morris Co. Proj.) 2.30%, VRDN $ 5,000,000 $ 5,000,000 688643AC
Putnam County TAN 3% 5/30/94 2,550,000 2,554,096 746639HK
Rensselaer County Gen. Oblig. Bonds 6.70% 2/15/94,
(AMBAC Insured) 750,000 751,177 759897HJ
Rockland County:
BAN 2.85% 4/22/94 4,660,000 4,662,504 773556YB
RAN 2.75% 4/8/94 4,500,000 4,500,234 773556YA
Rockland County Ind. Dev. Agcy. Rev. (INSL-X Prod. Corp.
Proj.) Series 1990, 2.125%, LOC Bank of New York,
VRDN (b) 3,400,000 3,400,000 773559AN
Sachem Central School Dist. TAN 2.75% 2/8/94 1,000,000 1,000,065
785721EP
South Huntington Union Free School Dist. TAN:
3% 6/29/94 1,000,000 1,000,720 838418CN
3.25% 6/29/94 5,000,000 5,004,462 838418CP
Suffolk County Ind. Dev. Agcy. Civic Facs. Rev.
(Suffolk Child Dev. Ctr. Inc.) Series 89, 2%,
LOC Barclays Bank, VRDN 1,100,000 1,100,000 864768AB
Suffolk County Ind. Dev. Agcy. Ind. Dev. Rev.
(Nissequogue Cogen Partner) 2%, LOC Toronto-Dominion
Bank, VRDN (b) 5,000,000 5,000,000 864772EH
Suffolk County Public Improvement Unltd. Tax Bond 5%
10/15/94, (AMBAC Insured) 1,000,000 1,015,000 864764QD
Suffolk County TAN:
Series I, 2.70% 8/16/94, LOC Mitsibishi Bank 12,050,000 12,068,241
864764RF
Series II, 3% 9/15/94, LOC Chemical Bank 10,000,000 10,009,027
864764QC
Three Village Central Union Free School Dist. TAN
3% 6/30/94 2,000,000 2,001,967 885766BU
Tompkins County BAN:
2.64% 6/3/94 (b) 2,000,000 2,000,254 890091DS
3.125% 9/29/94 4,000,000 4,008,278 890091DT
Tonawanda BAN 2.75% 5/12/94 3,350,000 3,352,688 890210MS
Triborough Bridge & Tunnel Auth. Beneficial Interest Ctfs.,
Series CR-132, 2.45%, (MBIA Insured), OT (c) 5,410,000 5,410,000
896028AQ
Uniondale Union Free School Dist. TAN 3.25% 6/29/94 3,500,000 3,505,699
909058AM
428,834,608
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - 6.1%
New York & New Jersey Port Auth. Rev., VRDN:
Series 1991, 2.236736% (b) $ 9,800,000 $ 9,800,000 733990QP
Variable Rate Master Note Agreement,
Series 1992, 1.99805% 9,600,000 9,600,000 733990SE
New York & New Jersey Port Auth. Spl. Proj. Rev.
(KIAC Partners Proj.) Series 3, 2.05%,
LOC Deutsch Bank, VRDN (b) 8,400,000 8,400,000 73358EAD
27,800,000
TOTAL INVESTMENTS - 100% $ 456,634,608
Total Cost for Income Tax Purposes $ 456,634,460

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
FRDN - Floating Rate Demand Notes
MT - Mandatory Tender
OT - Optional Tender
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax & Revenue Anticipation Notes
VAN - Variable Rate Tax & Revenue
Anticipation Notes
VRDN - Variable Rate Demand Notes
VT - Variable Tender
LEGEND
(d) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(e) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
(f) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At January 31, 1994, the fund had a capital loss carryforward of
approximately $101,800 of which $29,600, $21,000 and $51,200 will expire on
January 31, 2000, 2001 and 2002, respectively.
SPARTAN NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1994

249.ASSETS 250. 251.

252.Investment in securities, at value (Note 1) - See 253. $ 456,634,608
accompanying schedule

254.Cash 255. 1,763,573

256.Receivable for investments sold 257. 905,314

258.Interest receivable 259. 3,026,830

260. 261.TOTAL ASSETS 262. 462,330,325

263.LIABILITIES 264. 265.

266.Dividends payable $ 10,293 267.

268.Accrued management fee 195,644 269.

270. 271.TOTAL LIABILITIES 272. 205,937

273.274.NET ASSETS 275. $ 462,124,388

276.Net Assets consist of (Note 1): 277. 278.

279.Paid in capital 280. $ 462,225,995

281.Accumulated net realized gain (loss) on 282. (101,760)
investments

283.Unrealized gain from accretion of market 284. 153
discount (Note 1)

285.286.NET ASSETS, for 462,209,044 shares 287. $ 462,124,388
outstanding

288.289.NET ASSET VALUE, offering price and 290. $1.00
redemption price per share ($462,124,388 (divided by)
462,209,044 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JANUARY 31, 1994

291.292.INTEREST INCOME 293. $ 11,048,286

294.EXPENSES 295. 296.

297.Management fee (Note 4) $ 2,229,920 298.

299.Non-interested trustees' compensation 2,994 300.

301. 302.TOTAL EXPENSES 303. 2,232,914

304.305.NET INTEREST INCOME 306. 8,815,372

307.REALIZED AND UNREALIZED GAIN (LOSS) ON 309. (51,247)
INVESTMENTS
(NOTE 1)
308.Net realized gain (loss) on investment securities

310.Increase (decrease) in net unrealized gain from 311. (158)
accretion
of market discount

312.313.NET GAIN (LOSS) 314. (51,405)

315.316.NET INCREASE IN NET ASSETS RESULTING FROM 317. $ 8,763,967
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
YEAR NINE MONTHS
ENDED ENDED
JANUARY 31, JANUARY 31, 1993
1994 (NOTE 1)

<TABLE>
<CAPTION>
<S> <C> <C>
318.INCREASE (DECREASE) IN NET ASSETS

319.Operations $ 8,815,372 $ 8,325,189
Net interest income

320. Net realized gain (loss) on investments (51,247) (20,934)

321. Increase (decrease) in net unrealized gain from (158) 311
accretion of market discount

322. 8,763,967 8,304,566
323.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM
OPERATIONS

324.Dividends to shareholders from net interest income (8,815,372) (8,325,189)

325.Share transactions at net asset value of $1.00 per 406,584,942 263,298,066
share
Proceeds from sales of shares

326. Reinvestment of dividends from net interest 8,565,751 8,072,978
income

327. Cost of shares redeemed (406,787,060) (292,528,533)

328. 8,363,633 (21,157,489)
Net increase (decrease) in net assets and shares
resulting from share transactions

329. 8,312,228 (21,178,112)
330.TOTAL INCREASE (DECREASE) IN NET ASSETS

331.NET ASSETS 332. 333.

334. Beginning of period 453,812,160 474,990,272

335. End of period $ 462,124,388 $ 453,812,160

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
336. YEAR NINE MONTHS YEARS ENDED APRIL 30, FEBRUARY 3, 199
ENDED ENDED 0
JANUARY 31, JANUARY 31, (COMMENCEME
1993 NT
OF OPERATIONS) T
O
APRIL 30,

337. 1994 (NOTE 1) 1992 1991 1990

338.SELECTED PER-SHARE DATA

339.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value, beginning
of period

340.Income from .020 .018 .037 .052 .013
Investment
Operations
Net interest
income

341. Dividends (.020) (.018) (.037) (.052) (.013)
from net interest
income

342.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value, end of
period

343.TOTAL RETURN 1.99% 1.85% 3.78% 5.37% 1.31%
(dagger)

344.RATIOS AND SUPPLEMENTAL
DATA

345.Net assets, $ 462,124 $ 453,812 $ 474,990 $ 466,327 $ 181,864
end of period
(000 omitted)

346.Ratio of .50% .50%* .37% .10% -
expenses
to average net
assets

347.Ratio of .50% .50%* .50% .50% .50%*
expenses
to average net
assets before
expense
reductions

348.Ratio of net 1.97% 2.43%* 3.71% 5.15% 5.85%*
interest income
to average net
assets

</TABLE>

* ANNUALIZED
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND WOULD HAVE BEEN LOWER
HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1994

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan New York Municipal High Yield Portfolio, Spartan New York
Intermediate Municipal Portfolio and Spartan New York Municipal Money
Market Portfolio (the funds) are funds of Fidelity New York Municipal Trust
(the trust). The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust (see Note 7). On
November 19, 1992, the Trustees approved a change in the fiscal year end of
the trust to January 31. Each fund is authorized to issue an unlimited
number of shares. The following summarizes the significant accounting
policies of the funds:
SECURITY VALUATION.
HIGH YIELD AND INTERMEDIATE FUNDS. Securities are valued based upon a
computerized matrix system and/or appraisals by a pricing service, both of
which consider market transactions and dealer-supplied valuations.
Short-term securities maturing within sixty days are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which quotations are not readily
available through the pricing service are valued at their fair value as
determined in good faith under consistently applied procedures under the
general supervision of the Board of Trustees.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. The intermediate fund intends to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code. The
high yield and money market funds are each qualified as a regulated
investment company under Subchapter M of the Internal Revenue Code. By so
qualifying, each fund is not subject to income taxes to the extent that it
distributes all of its taxable income for the fiscal year. The schedules of
investments include information regarding income taxes under the caption
"Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. For the
money market fund, accretion of market discount represents unrealized gain
until realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
differences are primarily due to differing treatments for futures and
options transactions, excise tax regulations and losses deferred due to
wash sales.
REDEMPTION FEES. Shares held in the high yield fund less than 180 days are
subject to a redemption fee equal to .50% of the proceeds of the redeemed
shares. The fee, which is retained by the fund, is accounted for as an
addition to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective February
1, 1993, the money market and high yield funds adopted Statement of
Position 93-2: Determination, Disclosure, and Financial Statement
Presentation of Income, Capital Gain, and Return of Capital Distributions
by Investment Companies. As a result, the funds changed the classification
of distributions to shareholders to better disclose the differences between
financial statement amounts and distributions determined in accordance with
income tax regulations. Accordingly, amounts as of January 31, 1993 have
been restated/reclassified as follows:
HIGH YIELD FUND. Paid in capital increased and accumulated net realized
gain on investments decreased by $24,711.
MONEY MARKET FUND. Paid in capital and accumulated net realized loss on
investments increased by $16,951.
2. OPERATING POLICIES.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. 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.
FUTURES CONTRACTS AND OPTIONS. The high yield and intermediate funds may
invest in futures contracts and write options. These investments involve to
varying degrees, elements of market risk and risks in excess of the amount
recognized in their Statements of Assets and Liabilities. The face or
contract amounts reflect the extent of the involvement the high yield and
intermediate funds have in the particular classes of instruments. Risks may
be caused by an imperfect correlation between movements in the price of the
instruments and the price of the underlying securities and interest rates.
Risks also may arise if there is an illiquid secondary market for the
instruments, or due to the inability of counterparties to perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
3. PURCHASES AND SALES OF
INVESTMENTS.
HIGH YIELD FUND. Purchases and sales of securities, other than short-term
securities, aggregated $244,355,317 and $186,924,272, respectively. The
market value of futures contracts opened and closed amounted to
$138,641,608 and $140,531,427, respectively.
INTERMEDIATE FUND. Purchases of securities, other than short-term
securities, aggregated $5,182,318; there were no sales of securities.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management
& Research Company (FMR) pays all expenses except the compensation of
the non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .55%, .55% and .50% of average net
assets for the high yield, intermediate and money market funds,
respectively.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect, and after reducing
the fee for any payments by FMR pursuant to the fund's Distribution and
Service Plan.
FMR also bears the cost of providing shareholder services to each fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $8,825, $20 and $19,313 for the high yield,
intermediate and money market funds, respectively.
5. EXPENSE REDUCTIONS
HIGH YIELD FUND. For the period, FMR voluntarily agreed to reimburse the
funds' operating expenses (excluding interest, taxes, brokerage commissions
and extraordinary expenses) above a specified percentage of average net
assets. This expense limitation ranged from an annual rate of .50% to .55%
of average net assets and the reimbursement reduced expenses by $14,626.
INTERMEDIATE FUND. For the period, FMR voluntarily agreed to reimburse all
of the fund's operating expenses (excluding interest, taxes, brokerage
commissions and extraordinary expenses) and the reimbursement reduced
expenses by $2,191.
6. BENEFICIAL INTEREST.
At the end of the period, 2 shareholders were each record owners of more
than 10% of the total outstanding shares of the intermediate fund,
totaling 40.3%. One shareholder, National Financial Services Corporation,
an affiliate of FMR was record owner of approximately 29.6% of the total
outstanding shares.
7. SHAREHOLDER MEETING.
At a special meeting of shareholders of the high yield and money market
funds held on January 19, 1994, shareholders approved amendments to certain
fundamental investment limitations of the funds.
In addition, shareholders of the money market fund approved an Agreement
and Plan of Conversion and Termination (the Plan of Conversion), providing
for the conversion of the money market fund (the current fund) from a
separate series of Fidelity New York Municipal Trust, a Massachusetts
business trust, to a separate series (the successor fund) of Fidelity New
York Municipal Trust II, a Delaware business trust, effective March 20,
1994. The individual investment objective, policies and limitations of the
successor fund will be identical to those of the current fund. In
connection with the Plan of Conversion, a new management contract, new
sub-advisory agreement and new distribution plan identical to those
currently in effect for the current fund will take effect on March 20,
1994.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity New York
Municipal Trust and Shareholders of:
Spartan New York Municipal
High Yield Portfolio
Spartan New York
Intermediate Municipal Portfolio
Spartan New York
Municipal Money Market Portfolio:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for Moody's and Standard
& Poor's ratings), and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Spartan New York Municipal
High Yield Portfolio, Spartan New York Intermediate Municipal Portfolio and
Spartan New York Municipal Money Market Portfolio at January 31, 1994, the
results of their operations, the changes in their net assets and the
financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are
the responsibility of each portfolio's management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with
generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of securities owned at January 31, 1994 by
correspondence with the custodian and brokers and the application of
alternative procedures where confirmations from brokers were not received,
provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE
Boston, Massachusetts
March 4, 1994
DISTRIBUTIONS

The Board of Trustees of Fidelity New York Municipal Trust: Spartan New
York Municipal High Yield Portfolio voted to pay on March 7, 1994, to
shareholders of record at the opening of business on March 4, 1994, a
distribution of $.15 derived from capital gains realized from sales of
portfolio securities.
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Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Janice Bradburn, Vice President
MONEY MARKET FUND
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
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BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
United Missouri Bank, N.A.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
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TDD Service 1-800-544-0111
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

EXHIBIT 1

FORM OF
AMENDED AND RESTATED DECLARATION OF TRUST
DATED MARCH 17, 1994
AMENDED AND RESTATED DECLARATION OF TRUST, made March 17, 1994 by each of
the Trustees whose signature is affixed hereto (the "Trustees")
WHEREAS, the Trustees desire to amend and restate this Declaration of
Trust for the sole purpose of supplementing the Declaration to incorporate
amendments duly adopted; and
WHEREAS, this Trust was initially made on April 25, 1983 by Edward C.
Johnson 3d, Caleb Loring, Jr., and Frank Nesvet inorder to establish a
trust fund for the investment and reinvestment of funds contributed
thereto;
NOW, THEREFORE, the Trustees declare that all money and property
contributed to the trust fund hereunder shall be held and managed in Trust
under this Declaration of Trust as herein set forth below.
ARTICLE I
NAME AND DEFINITIONS
NAME
Section 1. This Trust shall be known as "Fidelity New York Municipal
Trust".
DEFINITIONS
Section 2. Wherever used herein, unless otherwise required by the context
or specifically provided:
(a) The Terms "Affiliated Person", "Assignment", "Commission", "Interested
Person", "Majority Shareholder Vote" (the 67% or 50% requirement of the
third sentence of Section 2(a)(42) of the 1940 Act, whichever may be
applicable) and "Principal Underwriter" shall have the meanings given them
in the 1940 Act, as amended from time to time;
(b) The "Trust" refers to Fidelity New York Municipal Trust and reference
to the Trust, when applicable to one or more Series of the Trust, shall
refer to any such Series;
(c) "Net Asset Value" means the net asset value of each Series of the
Trust determined in the manner provided in Article X, Section 3;
(d) "Shareholder" means a record owner of Shares of the Trust;
(e) The "Trustees" refer to the individual trustees in their capacity as
trustees hereunder of the Trust and their successor or successors for the
time being in office as such trustee or trustees;
(f) "Shares" means the equal proportionate transferable units of interest
into which the beneficial interest of each Series shall be divided from
time to time, and includes fractions of shares as well as whole shares
consistent with the requirements of Federal and/or other securities laws;
and
(g) The "1940 Act" refers to the Investment Company Act of 1940, as
amended from time to time.
(h) "Series" refers to series of Shares of the Trust established in
accordance with the provisions of Article III.
ARTICLE II
PURPOSE OF TRUST
The purpose of this Trust is to provide investors a continuous source of
managed investment in securities.
ARTICLE III
BENEFICIAL INTEREST
SHARES OF BENEFICIAL INTEREST
Section 1. The beneficial interest in the Trust shall be divided into
such transferable Shares of one or more separate and distinct Series as the
Trustees shall from time to time create and establish. The number of Shares
is unlimited and each Share shall be without par value and shall be fully
paid and nonassessable. The Trustees shall have full power and authority,
in their sole discretion and without obtaining any prior authorization or
vote of the Shareholders of the Trust to create and establish (and to
change in any manner) Shares with such preferences, voting powers, rights
and privileges as the Trustees may from time to time determine, to divide
or combine the Shares into a greater or lesser number, to classify or
reclassify any issued Shares into one or more Series of Shares, to abolish
any one or more Series of Shares, and to take such other action with
respect to the Shares as the Trustees may deem desirable.
ESTABLISHMENT OF SERIES
Section 2. The establishment of any Series shall be effective upon the
adoption of a resolution by a majority of the then Trustees setting forth
such establishment and designation and the relative rights and preferences
of the Shares of such Series. At any time that there are no Shares
outstanding of any particular Series previously established and designated,
the Trustees may by a majority vote abolish that Series and the
establishment and designation thereof.
OWNERSHIP OF SHARES
Section 3. The ownership of Shares shall be recorded in the books of the
Trust. The Trustees may make such rules as they consider appropriate for
the transfer of Shares and similar matters. The record books of the Trust
shall be conclusive as to who are the holders of Shares and as to the
number of Shares held from time to time by each Shareholder.
INVESTMENT IN THE TRUST
Section 4. The Trustees shall accept investments in the Trust from such
persons and on such terms as they may from time to time authorize. Such
investments may be in the form of cash or securities in which the
appropriate Series is authorized to invest, valued as provided in Article
X, Section 3. After the date of the initial contribution of capital, the
number of Shares to represent the initial contribution may in the Trustees'
discretion be considered as outstanding and the amount received by the
Trustees on account of the contribution shall be treated as an asset of the
Trust. Subsequent investments in the Trust shall be credited to each
Shareholder's account in the form of full Shares at the Net Asset Value per
Share next determined after the investment is received; provided, however,
that the Trustees may, in their sole discretion, (a) impose a sales charge
upon investments in the Trust and (b) issue fractional Shares.
ASSETS AND LIABILITIES OF SERIES
Section 5. All consideration received by the Trust for the issue or sale
of Shares of a particular Series, together with all assets in which such
consideration is invested or reinvested, all income, earnings, profits, and
proceeds thereof, including any proceeds derived from the sale, exchange or
liquidation of such assets, and any funds or payments derived from any
reinvestment of such proceeds in whatever form the same may be, shall be
referred to as "assets belonging to" that Series. In addition any assets,
income, earnings, profits, and proceeds thereof, funds, or payments which
are not readily identifiable as belonging to any particular Series shall be
allocated by the Trustees between and among one or more of the Series in
such manner as they, in their sole discretion, deem fair and equitable.
Each such allocation shall be conclusive and binding upon the Shareholders
of all Series for all purposes, and shall be referred to as assets
belonging to that Series. The assets belonging to a particular Series shall
be so recorded upon the books of the Trust, and shall be held by the
Trustees in trust for the benefit of the holders of Shares of that Series.
The assets belonging to each particular Series shall be charged with the
liabilities of that Series and all expenses, costs, charges and reserves
attributable to that Series. Any general liabilities, expenses, costs,
charges or reserves of the Trust which are not readily identifiable as
belonging to any particular Series shall be allocated and charged by the
Trustees between or among any one or more of the Series in such manner as
the Trustees in their sole discretion deem fair and equitable. Each such
allocation shall be conclusive and binding upon the Shareholders of all
Series for all purposes. Any creditor of any Series may look only to the
assets of that Series to satisfy such creditor's debt.
NO PREEMPTIVE RIGHTS
Section 6. Shareholders shall have no preemptive or other right to
subscribe to any additional Shares or other securities issued by the Trust
or the Trustees.
LIMITATION OF PERSONAL LIABILITY
Section 7. The Trustees shall have no power to bind any Shareholder
personally or to call upon any shareholder for the payment of any sum of
money or assessment whatsoever other than such as the Shareholder may at
any time personally agree to pay by way of subscription for any Shares or
otherwise. Every note, bond, contract or other undertaking issued by or on
behalf of the Trust or the Trustees relating to the Trust shall include a
recitation limiting the obligation represented thereby to the Trust and its
assets (but the omission of such a recitation shall not operate to bind any
Shareholder).
ARTICLE IV
THE TRUSTEES
MANAGEMENT OF THE TRUST
Section 1. The business and affairs of the Trust shall be managed by the
Trustees, and they shall have all powers necessary and desirable to carry
out that responsibility.
ELECTION: INITIAL TRUSTEES
Section 2. On a date fixed by the Trustees, the Shareholders shall elect
not less than three Trustees. A Trustee shall not be required to be a
Shareholder of the Trust. The initial Trustees shall be Edward C. Johnson
3d, Caleb Loring, Jr. and Frank Nesvet and such other individuals as the
Board of Trustees shall appoint pursuant to Section 4 of the Article IV.
TERM OF OFFICE OF TRUSTEES
Section 3. The Trustees shall hold office during the lifetime of this
Trust, and until its termination as hereinafter provided; except (a) that
any Trustee may resign his trust by written instrument signed by him and
delivered to the other Trustees, which shall take effect upon such delivery
or upon such later date as is specified therein; (b) that any Trustee may
be removed at any time by written instrument, signed by at least two-thirds
of the number of Trustees prior to such removal, specifying the date when
such removal shall become effective; (c) that any Trustee who requests in
writing to be retired or who has become incapacitated by illness or injury
may be retired by written instrument signed by a majority of the other
Trustees, specifying the date of his retirement; and (d) a Trustee may be
removed at any Special Meeting of the Trust by a vote of two-thirds of the
outstanding Shares.
RESIGNATION AND APPOINTMENT OF TRUSTEES
Section 4. In case of the declination, death, resignation, retirement,
removal, incapacity, or inability of any of the Trustees, or in case a
vacancy shall, by reason of an increase in number, or for any other reason,
exist, the remaining Trustees shall fill such vacancy by appointing such
other person as they in their discretion shall see fit consistent with the
limitations under the Investment Company Act of 1940. Such appointment
shall be evidenced by a written instrument signed by a majority of the
Trustees in office or by recording in the records of the Trust, whereupon
the appointment shall take effect. An appointment of a Trustee may be made
by the Trustees then in office in anticipation of a vacancy to occur by
reason of retirement, resignation or increase in number of Trustees
effective at a later date, provided that said appointment shall become
effective only at or after the effective date of said retirement,
resignation or increase in number of Trustees. As soon as any Trustee so
appointed shall have accepted this trust, the trust estate shall vest in
the new Trustee or Trustees, together with the continuing Trustees, without
any further act or conveyance, and he shall be deemed a Trustee hereunder.
The power of appointment is subject to the provisions of Section 16(a) of
the 1940 Act.
TEMPORARY ABSENCE OF TRUSTEE
Section 5. Any Trustee may, by power of attorney, delegate his power for
a period not exceeding six months at any one time to any other Trustee or
Trustees, provided that in no case shall less than two Trustees personally
exercise the other powers hereunder except as herein otherwise expressly
provided.
NUMBER OF TRUSTEES
Section 6. The number of Trustees, not less than three (3) nor more than
twelve (12), serving hereunder at any time shall be determined by the
Trustees themselves.
Whenever a vacancy in the Board of Trustees shall occur, until such
vacancy is filled, or while any Trustee is absent from the Commonwealth of
Massachusetts or, if not a domiciliary of Massachusetts, is absent from his
state of domicile, or is physically or mentally incapacitated by reason of
disease or otherwise, the other Trustees shall have all the powers
hereunder and the certificate of the other Trustees of such vacancy,
absence or incapacity, shall be conclusive, provided, however, that no
vacancy shall remain unfilled for a period longer than six calendar months.
EFFECT OF DEATH, RESIGNATION, ETC. OF A TRUSTEE
Section 7. The death, declination, resignation, retirement, removal,
incapacity, or inability of the Trustees, or any one of them, shall not
operate to annul the Trust or to revoke any existing agency created
pursuant to the terms of this Declaration of Trust.
OWNERSHIP OF ASSETS OF THE TRUST
Section 8. The assets of the Trust shall be held separate and apart from
any assets now or hereafter held in any capacity other than as Trustee
hereunder by the Trustees or any successor Trustees. All of the assets of
the Trust shall at all times be considered as vested in the Trustees. No
Shareholder shall be deemed to have a severable ownership in any individual
asset of the Trust or any right of partition or possession thereof, but
each Shareholder shall have a proportionate undivided beneficial interest
in the Trust.
ARTICLE V
POWERS OF THE TRUSTEES
POWERS
Section 1. The Trustees in all instances shall act as principals, and are
and shall be free from the control of the Shareholders. The Trustees shall
have full power and authority to do any and all acts and to make and
execute any and all contracts and instruments that they may consider
necessary or appropriate in connection with the management of the Trust.
The Trustees shall not in any way be bound or limited by present or future
laws or customs in regard to trust investments, but shall have full
authority and power to make any and all investments which they, in their
uncontrolled discretion, shall deem proper to accomplish the purpose of
this Trust. Subject to any applicable limitation in the Declaration of
Trust or the Bylaws of the Trust, the Trustees shall have the power and
authority:
(a) To invest and reinvest cash and other property, and to hold cash or
other property uninvested, without in any event being bound or limited by
any present or future law or custom in regard to investments by Trustees,
and to sell, exchange, lend, pledge, mortgage, hypothecate, write options
on and lease any or all of the assets of the Trust.
(b) To adopt Bylaws not inconsistent with this Declaration of Trust
providing for the conduct of the business of the Trust and to amend and
repeal them to the extent that they do not reserve that right to the
Shareholders.
(c) To elect and remove such officers and appoint and terminate such
agents as they consider appropriate.
(d) To employ a bank or trust company as custodian of any assets of the
Trust subject to any conditions set forth in this Declaration of Trust or
in the Bylaws, if any.
(e) To retain a transfer agent and Shareholder servicing agent, or both.
(f) To provide for the distribution of interests of the Trust either
through a principal underwriter in the manner hereinafter provided for or
by the Trust itself, or both.
(g) To set record dates in the manner hereinafter provided for.
(h) To delegate such authority as they consider desirable to any officers
of the Trust and to any agent, custodian or underwriter.
(i) To sell or exchange any or all of the assets of the Trust, subject to
the provisions of Article XII, Section 4(b) hereof.
(j) To vote or give assent, or exercise any rights of ownership, with
respect to stock or other securities or property; and to execute and
deliver powers of attorney to such person or persons as the Trustees shall
deem proper, granting to such person or persons such power and discretion
with relation to securities or property as the Trustees shall deem proper.
(k) To exercise powers and rights of subscription or otherwise which in
any manner arise out of ownership of securities.
(l) To hold any security or property in a form not indicating any trust,
whether in bearer, unregistered or other negotiable form; or either in its
own name or in the name of a custodian or a nominee or nominees, subject in
either case to proper safeguards according to the usual practice of
Massachusetts trust companies or investment companies.
(m) To establish separate and distinct Series with separately defined
investment objectives and policies and distinct investment purposes in
accordance with the provisions of Article III.
(n) To allocate assets, liabilities and expenses of the Trust to a
particular Series or to apportion the same between or among two or more
Series, provided that any liabilities or expenses incurred by a particular
Series shall be payable solely out of the assets belonging to that Series
as provided for in Article III.
(o) To consent to or participate in any plan for the reorganization,
consolidation or merger of any corporation or concern, any security of
which is held in the Trust; to consent to any contract, lease, mortgage,
purchase, or sale of property by such corporation or concern, and to pay
calls or subscriptions with respect to any security held in the Trust.
(p) To compromise, arbitrate, or otherwise adjust claims in favor of or
against the Trust or any matter in controversy including, but not limited
to, claims for taxes.
(q) To make distributions of income and of capital gains to Shareholders
in the manner hereinafter provided for.
(r) To borrow money from a bank and to pledge, mortgage and hypothecate
the assets of the Trust, subject to the applicable requirements of the 1940
Act.
(s) To establish, from time to time, a minimum total investment for
Shareholders, and to require the redemption of the Shares of any
Shareholders whose investment is less than such minimum upon giving notice
to such Shareholder.
(t) Notwithstanding any other provision hereof, to invest all of the
assets of any Series in a single open-end investment company, including
investment by means of transfer of such assets in exchange for an interest
or interests in such investment company.
No one dealing with the Trustees shall be under any obligation to make any
inquiry concerning the authority of the Trustees, or to see to the
application of any payments made or property transferred to the Trustees or
upon their order.
TRUSTEES AND OFFICERS AS SHAREHOLDERS
Section 2. Any Trustee, officer or other agent of the Trust may acquire,
own and dispose of Shares to the same extent as if he were not a Trustee,
officer or agent; and the Trustees may issue and sell or cause to be issued
and sold Shares to and buy such Shares from any such person of any firm or
company in which he is interested, subject only to the general limitations
herein contained as to the sale and purchase of such Shares; and all
subject to any restrictions which may be contained in the Bylaws.
ACTION BY THE TRUSTEES
Section 3. The Trustees shall act by majority vote at a meeting duly
called or by unanimous written consent without a meeting or by telephone
consent provided a quorum of Trustees participate in any such telephonic
meeting, unless the 1940 Act requires that a particular action be taken
only at a meeting of the Trustees. At any meeting of the Trustees, a
majority of the Trustees shall constitute a quorum. Meetings of the
Trustees may be called orally or in writing by the Chairman of the Trustees
or by any two other Trustees. Notice of the time, date and place of all
meetings of the Trustees shall be given by the party calling the meeting to
each Trustee by telephone or telegram sent to his home or business address
at least twenty-four hours in advance of the meeting or by written notice
mailed to his home or business address at least seventy-two hours in
advance of the meeting. Notice need not be given to any Trustee who attends
the meeting without objecting to the lack of notice or who executes a
written waiver of notice with respect to the meeting. Subject to the
requirements of the 1940 Act, the Trustees by majority vote may delegate to
any one of their number their authority to approve particular matters or
take particular actions on behalf of the Trust.
CHAIRMAN OF THE TRUSTEES
Section 4. The Trustees may appoint one of their number to be Chairman of
the Board of Trustees. The Chairman shall preside at all meetings of the
Trustees, shall be responsible for the execution of policies established by
the Trustees and the administration of the Trust, and may be the chief
executive, financial and accounting officer of the Trust.
ARTICLE VI
EXPENSES OF THE TRUST
TRUSTEE REIMBURSEMENT
Section 1. Subject to the provisions of Article III, Section 5, the
Trustees shall be reimbursed from the Trust estate or the assets belonging
to the appropriate Series for their expenses and disbursements, including,
without limitation, fees and expenses of Trustees who are not Interested
Persons of the Trust, interest expense, taxes, fees and commissions of
every kind, expenses of pricing Trust portfolio securities, expenses of
issue, repurchase and redemption of shares including expenses attributable
to a program of periodic repurchases or redemptions, expenses of
registering and qualifying the Trust and its Shares under Federal and State
laws and regulations, charges of custodians, transfer agents, and
registrars, expenses of preparing and setting up in type Prospectuses and
Statements of Additional Information, expenses of printing and distributing
prospectuses sent to existing Shareholders, auditing and legal expenses,
reports to Shareholders, expenses of meetings of Shareholders and proxy
solicitations therefor, insurance expense, association membership dues and
for such non-recurring items as may arise, including litigation to which
the Trust is a party, and for all losses and liabilities by them incurred
in administering the Trust, and for the payment of such expenses,
disbursements, losses and liabilities the Trustees shall have a lien on the
assets belonging to the appropriate Series prior to any rights or interests
of the Shareholders thereto. This section shall not preclude the Trust from
directly paying any of the aforementioned fees and expenses.
ARTICLE VII
INVESTMENT ADVISER, PRINCIPAL UNDERWRITER AND TRANSFER AGENT
INVESTMENT ADVISER
Section 1. Subject to a Majority Shareholder Vote, the Trustees may in
their discretion from time to time enter into an investment advisory or
management contract(s) with respect to the Trust or any Series thereof
whereby the other party(ies) to such contract(s) shall undertake to furnish
the Trustees such management, investment advisory, statistical and research
facilities and services and such other facilities and services, if any, and
all upon such terms and conditions, as the Trustees may in their discretion
determine. Notwithstanding any provisions of this Declaration of Trust, the
Trustees may authorize the investment adviser(s) (subject to such general
or specific instructions as the Trustees may from time to time adopt) to
effect purchases, sales or exchanges of portfolio securities and other
investment instruments of the Trust on behalf of the Trustees or may
authorize any officer, agent, or Trustee to effect such purchases, sales or
exchanges pursuant to recommendations of the investment adviser (and all
without further action by the Trustees). Any such purchases, sales and
exchanges shall be deemed to have been authorized by all of the Trustees.
The Trustees may, subject to applicable requirements of the 1940 Act,
including those relating to Shareholder approval, authorize the investment
adviser to employ one or more sub-advisers from time to time to perform
such of the acts and services of the investment adviser, and upon such
terms and conditions, as may be agreed upon between the investment adviser
and sub-adviser.
PRINCIPAL UNDERWRITER
Section 2. The Trustees may in their discretion from time to time enter
into (a) contract(s) providing for the sale of the Shares, whereby the
Trust may either agree to sell the Shares to the other party to the
contract or appoint such other party its sales agent for such Shares. In
either case, the contract shall be on such terms and conditions as may be
prescribed in the Bylaws, if any, and such further terms and conditions as
the Trustees may in their discretion determine not inconsistent with the
provisions of this Article VII, or of the Bylaws, if any; and such contract
may also provide for the repurchase or sale of Shares by such other party
as principal or as agent of the Trust.
TRANSFER AGENT
Section 3. The Trustees may in their discretion from time to time enter
into a transfer agency and Shareholder service contract whereby the other
party shall undertake to furnish the Trustees with transfer agency and
Shareholder services. The contract shall be on such terms and conditions as
the Trustees may in their discretion determine not inconsistent with the
provisions of this Declaration of Trust or of the Bylaws, if any. Such
services may be provided by one or more entities.
PARTIES TO CONTRACT
Section 4. Any contract of the character described in Sections 1, 2 and 3
of this Article VII or in Article IX hereof may be entered into with any
corporation, firm, partnership, trust or association, although one or more
of the Trustees or officers of the Trust may be an officer, director,
trustee, shareholder, or member of such other party to the contract, and no
such contract shall be invalidated or rendered voidable by reason of the
existence of any relationship, nor shall any person holding such
relationship be liable merely by reason of such relationship for any loss
or expense to the Trust under or by reason of said contract or accountable
for any profit realized directly or indirectly therefrom, provided that the
contract when entered into was reasonable and fair and not inconsistent
with the provisions of this Article VII or the Bylaws, if any. The same
person (including a firm, corporation, partnership, trust, or association)
may be the other party to contracts entered into pursuant to Sections 1, 2
and 3 above or Article IX, and any individual may be financially interested
or otherwise affiliated with persons who are parties to any or all of the
contracts mentioned in this Section 4.
PROVISIONS AND AMENDMENTS
Section 5. Any contract entered into pursuant to Sections 1 and 2 of this
Article VII shall be consistent with and subject to the requirements of
Section 15 of the 1940 Act (including any amendments thereof or other
applicable Act of Congress hereafter enacted) with respect to its
continuance in effect, its termination, and the method of authorization and
approval of such contract or renewal thereof, and no amendment to any
contract, entered into pursuant to Section 1 shall be effective unless
assented to by a Majority Shareholder Vote.
ARTICLE VIII
SHAREHOLDERS' VOTING POWERS AND MEETINGS
VOTING POWERS
Section 1. The Shareholders shall have power to vote (i) for the election
of Trustees as provided in Article IV, Section 2, (ii) for the removal of
Trustees as provided in Article IV, Section 3(d), (iii) with respect to any
investment advisory or management contract as provided in Article VII,
Section 1, (iv) with respect to the amendment of this Declaration of Trust
as provided in Article XII, Section 7, (v) to the same extent as the
shareholders of a Massachusetts business corporation, as to whether or not
a court action, proceeding or claim should be brought or maintained
derivatively or as a class action on behalf of the Trust or the
Shareholders, provided, however, that a Shareholder of a particular Series
shall not be entitled to bring any derivative or class action on behalf of
any other Series of the Trust, and (vi) with respect to such additional
matters relating to the Trust as may be required or authorized by law, by
this Declaration of Trust, or the Bylaws of the Trust, if any, or any
registration of the Trust with the Securities and Exchange Commission (the
"Commission") or any State, as the Trustees may consider desirable. On any
matter submitted to a vote of the Shareholders, all shares shall be voted
by individual Series, except (i) when required by the 1940 Act, Shares
shall be voted in the aggregate and not by individual Series; and (ii) when
the Trustees have determined that the matter affects only the interests of
one or more Series, then only the Shareholders of such Series shall be
entitled to vote thereon. A shareholder of each Series shall be entitled
to one vote for each dollar of net asset value (number of Shares owned
times net asset value) per share of such Series, on any matter on which
such shareholder is entitled to vote and each fractional dollar amount
shall be entitled to a proportionate fractional vote. There shall be no
cumulative voting in the election of Trustees. Shares may be voted in
person or by proxy. Until Shares are issued, the Trustees may exercise all
rights of Shareholders and may take any action required or permitted by
law, this Declaration of Trust or any Bylaws of the Trust to be taken by
Shareholders.
MEETINGS
Section 2. The first Shareholders' meeting shall be held as specified in
Section 2 of Article IV at the principal office of the Trust or such other
place as the Trustees may designate. Special meetings of the Shareholders
of any Series may be called by the Trustees and shall be called by the
Trustees upon the written request of Shareholders owning at least one-tenth
of the outstanding Shares entitled to vote. Whenever ten or more
Shareholders meeting the qualifications set forth in Section 16(c) of the
1940 Act, as the same may be amended from time to time, seek the
opportunity of furnishing materials to the other Shareholders with a view
to obtaining signatures on such a request for a meeting, the Trustees shall
comply with the provisions of said Section 16(c) with respect to providing
such Shareholders access to the list of the Shareholders of record of the
Trust or the mailing of such materials to such Shareholders of record.
Shareholders shall be entitled to at least fifteen days' notice of any
meeting.
QUORUM AND REQUIRED VOTE
Section 3. A majority of Shares entitled to vote in person or by proxy
shall be a quorum for the transaction of business at a Shareholders'
meeting, except that where any provision of law or of this Declaration of
Trust permits or requires that holders of any Series shall vote as a
Series, then a majority of the aggregate number of Shares of that Series
entitled to vote shall be necessary to constitute a quorum for the
transaction of business by that Series. Any lesser number shall be
sufficient for adjournments. Any adjourned session or sessions may be held,
within a reasonable time after the date set for the original meeting,
without the necessity of further notice. Except when a larger vote is
required by any provision of this Declaration of Trust or the Bylaws, a
majority of the Shares voted in person or by proxy shall decide any
questions and a plurality shall elect a Trustee, provided that where any
provision of law or of this Declaration of Trust permits or requires that
the holders of any Series shall vote as a Series, then a majority of the
Shares of that Series voted on the matter shall decide that matter insofar
as that Series is concerned.
ARTICLE IX
CUSTODIAN
APPOINTMENT AND DUTIES
Section 1. The Trustees shall at all times employ a bank or trust company
having capital, surplus and undivided profits of at least two million
dollars ($2,000,000), or such other amount or such other entity as shall be
allowed by the Commission or by the 1940 Act, as custodian with authority
as its agent, but subject to such restrictions, limitations or other
requirements, if any, as may be contained in the Bylaws of the Trust:
(1) to hold the securities owned by the Trust and deliver the same upon
written order or oral order, if confirmed in writing, or by such
electro-mechanical or electronic devices as are agreed to by the Trust and
the custodian, if such procedures have been authorized in writing by the
Trust;
(2) to receive and receipt for any moneys due to the Trust and deposit the
same in its own banking department or elsewhere as the Trustees may direct;
and
(3) to disburse such funds upon orders or vouchers;
and the Trust may also employ such custodian as its agent:
(1) to keep the books and accounts of the Trust and furnish clerical and
accounting services; and
(2) to compute, if authorized to do so by the Trustees, the Net Asset Value
of any Series in accordance with the provisions hereof;
all upon such basis of compensation as may be agreed upon between the
Trustees and the custodian. If so directed by a Majority Shareholder Vote,
the custodian shall deliver and pay over all property of the Trust held by
it as specified in such vote.
The Trustees may also authorize the custodian to employ one or more
sub-custodians from time to time to perform such of the acts and services
of the custodian, and upon such terms and conditions, as may be agreed upon
between the custodian and such sub-custodian and approved by the Trustees,
provided that in every case such sub-custodian shall be a bank or trust
company organized under the laws of the United States or one of the states
thereof and having capital, surplus and undivided profits of at least two
million dollars ($2,000,000) or such other person as may be permitted by
the Commission, or otherwise in accordance with the 1940 Act as from time
to time amended.
CENTRAL CERTIFICATE SYSTEM
Section 2. Subject to such rules, regulations and orders as the
Commission may adopt, the Trustees may direct the custodian to deposit all
or any part of the securities owned by the Trust in a system for the
central handling of securities established by a national securities
exchange or a national securities association registered with the
Commission under the Securities Exchange Act of 1934, or such other person
as may be permitted by the Commission, or otherwise in accordance with the
1940 Act as from time to time amended, pursuant to which system all
securities of any particular class or series of any issuer deposited within
the system are treated as fungible and may be transferred or pledged by
bookkeeping entry without physical delivery of such securities, provided
that all such deposits shall be subject to withdrawal only upon the order
of the Trust.
ARTICLE X
DISTRIBUTIONS AND REDEMPTIONS
DISTRIBUTIONS
Section 1.
(a) The Trustees may from time to time declare and pay dividends. The
amount of such dividends and the payment of them shall be wholly in the
discretion of the Trustees.
(b) The Trustees shall have power, to the fullest extent permitted by the
laws of Massachusetts, at any time to declare and cause to be paid
dividends on Shares of a particular Series, from the assets belonging to
that Series, which dividends, at the election of the Trustees, may be paid
daily or otherwise pursuant to a standing resolution or resolutions adopted
only once or with such frequency as the Trustees may determine, and may be
payable in Shares of that Series at the election of each Shareholder of
that Series.
(c) Anything in this instrument to the contrary notwithstanding, the
Trustees may at any time declare and distribute pro rata among the
Shareholders of a particular Series as of the record date of that Series
fixed as provided in Section 3 hereof a "stock dividend".
REDEMPTIONS
Section 2. In case any holder of record of Shares of a particular Series
desires to dispose of his Shares, he may deposit at the office of the
transfer agent or other authorized agent of that Series a written request
or such other form of request as the Trustees may from time to time
authorize, requesting that the Series purchase the Shares in accordance
with this Section 2; and the Shareholder so requesting shall be entitled to
require the Series to purchase, and the Series or the principal underwriter
of the Series shall purchase his said Shares, but only at the Net Asset
Value thereof (as described in Section 3 hereof). The Series shall make
payment for any such Shares to be redeemed, as aforesaid, in cash or
property from the assets of that Series and payment for such Shares shall
be made by the Series or the principal underwriter of the Series to the
Shareholder of record within seven (7) days after the date upon which the
request is effective.
DETERMINATION OF NET ASSET VALUE
AND VALUATION OF PORTFOLIO ASSETS
Section 3. The term "Net Asset Value" of any Series shall mean that
amount by which the assets of that Series, exceed its liabilities, all as
determined by or under the direction of the Trustees. Such value per Share
shall be determined separately for each Series of Shares and shall be
determined on such days and at such times as the Trustees may determine.
Such determination shall be made with respect to securities for which
market quotations are readily available, at the market value of such
securities; and with respect to other securities and assets, at the fair
value as determined in good faith by the Trustees, provided, however, that
the Trustees, without Shareholder approval, may alter the method of
appraising portfolio securities insofar as permitted under the 1940 Act and
the rules, regulations and interpretations thereof promulgated or issued by
the Commission or insofar as permitted by any Order of the Commission
applicable to the Series. The Trustees may delegate any of its powers and
duties under this Section 3 with respect to appraisal of assets and
liabilities. At any time the Trustees may cause the value par Share last
determined to be determined again in similar manner and may fix the time
when such redetermined value shall become effective.
SUSPENSION OF THE RIGHT OF REDEMPTION
Section 4. The Trustees may declare a suspension of the right of
redemption or postpone the date of payment as permitted under the 1940 Act.
Such suspension shall take effect at such time as the Trustees shall
specify but not later than the close of business on the business day next
following the declaration of suspension, and thereafter there shall be no
right of redemption or payment until the Trustees shall declare the
suspension at an end. In the case of a suspension of the right of
redemption, a Shareholder may either withdraw his request for redemption or
receive payment based on the Net Asset Value per Share existing after the
termination of the suspension.
ARTICLE XI
LIMITATION OF LIABILITY AND INDEMNIFICATION
LIMITATION OF LIABILITY
Section 1. Provided they have exercised reasonable care and have acted
under the reasonable belief that their actions are in the best interest of
the Trust, the Trustees shall not be responsible for or liable in any event
for neglect or wrongdoing of them or any officer, agent, employee or
investment adviser of the Trust, but nothing contained herein shall protect
any Trustee against any liability to which he would otherwise be subject by
reason of willful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of his office.
INDEMNIFICATION
Section 2.
(a) Subject to the exceptions and limitations contained in Section (b)
below:
(i) every person who is, or has been, a Trustee or officer of the Trust
(hereinafter referred to as "Covered Person") shall be indemnified by the
appropriate Series to the fullest extent permitted by law against liability
and against all expenses reasonably incurred or paid by him in connection
with any claim, action, suit or proceeding in which he becomes involved as
a party or otherwise by virtue of his being or having been a Trustee or
officer and against amounts paid or incurred by him in the settlement
thereof;
(ii) the words "claim," "action," "suit," or "proceeding" shall apply to
all claims, actions, suits or proceedings (civil, criminal or other,
including appeals), actual or threatened while in office or thereafter, and
the words "liability" and "expenses" shall include, without limitation,
attorneys' fees, costs, judgments, amounts paid in settlement, fines,
penalties and other liabilities.
(b) No indemnification shall be provided hereunder to a Covered Person:
(i) who shall have been adjudicated by a court or body before which the
proceeding was brought (A) to be liable to the Trust or its Shareholders by
reason of willful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of his office or (B) not to
have acted in good faith in the reasonable belief that his action was in
the best interest of the Trust; or
(ii) in the event of a settlement, unless there has been a determination
that such Trustee or officer did not engage in willful misfeasance, bad
faith, gross negligence or reckless disregard of the duties involved in the
conduct of his office,
(A) by the court or other body approving the settlement;
(B) by at least a majority of those Trustees who are neither interested
persons of the Trust nor are parties to the matter based upon a review of
readily available facts (as opposed to a full trial-type inquiry); or
(C) by written opinion of independent legal counsel based upon a review of
readily available facts (as opposed to a full trial-type inquiry);
provided, however, that any Shareholder may, by appropriate legal
proceedings, challenge any such determination by the Trustees, or by
independent counsel.
(c) The rights of indemnification herein provided may be insured against
by policies maintained by the Trust, shall be severable, shall not be
exclusive of or affect any other rights to which any Covered Person may now
or hereafter be entitled, shall continue as to a person who has ceased to
be such Trustee or officer and shall inure to the benefit of the heirs,
executors and administrators of such a person. Nothing contained herein
shall affect any rights to indemnification to which Trust personnel, other
than Trustees and officers, and other persons may be entitled by contract
or otherwise under law.
(d) Expenses in connection with the preparation and presentation of a
defense to any claim, action, suit or proceeding of the character described
in paragraph (a) of this Section 2 may be paid by the applicable Series
from time to time prior to final disposition thereof upon receipt of an
undertaking by or on behalf of such Covered Person that such amount will be
paid over by him to the applicable Series if it is ultimately determined
that he is not entitled to indemnification under this Section 2; provided,
however, that either (a) such Covered Person shall have provided
appropriate security for such undertaking, (b) the Trust is insured against
losses arising out of any such advance payments or (c) either a majority of
the Trustees who are neither interested persons of the Trust nor parties to
the matter, or independent legal counsel in a written opinion, shall have
determined, based upon a review of readily available facts (as opposed to a
trial-type inquiry or full investigation), that there is reason to believe
that such Covered Person will be found entitled to indemnification under
this Section 2.
SHAREHOLDERS
Section 3. In case any Shareholder or former Shareholder of any Series of
the Trust shall be held to be personally liable solely by reason of his
being or having been a Shareholder and not because of his acts or omissions
or for some other reason, the Shareholder or former Shareholder (or his
heirs, executors, administrators or other legal representatives or in the
case of a corporation or other entity, its corporate or other general
successor) shall be entitled out of the assets belonging to the applicable
Series to be held harmless from and indemnified against all loss and
expense arising from such liability. The Series shall, upon request by the
Shareholder, assume the defense of any claim made against the Shareholder
for any act or obligation of the Series and satisfy any judgment thereon.
ARTICLE XII
MISCELLANEOUS
TRUST NOT A PARTNERSHIP
Section 1. It is hereby expressly declared that a trust and not a
partnership is created hereby. No Trustee hereunder shall have any power to
bind personally either the Trust's officers or any Shareholder. All persons
extending credit to, contracting with or having any claim against the Trust
or the Trustees shall look only to the assets of the appropriate Series for
payment under such credit, contract or claim; and neither the Shareholders
nor the Trustees, nor any of their agents, whether past, present or future,
shall be personally liable therefor. Nothing in this Declaration of Trust
shall protect a Trustee against any liability to which the Trustee would
otherwise be subject by reason of willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of
the office of Trustee hereunder.
TRUSTEE'S GOOD FAITH ACTION, EXPERT ADVICE, NO BOND OR SURETY
Section 2. The exercise by the Trustees of their powers and discretions
hereunder in good faith and with reasonable care under the circumstances
then prevailing, shall be binding upon everyone interested. Subject to the
provisions of Section 1 of this Article XII and to Article XI, the Trustees
shall not be liable for errors of judgment or mistakes of fact or law. The
Trustees may take advice of counsel or other experts with respect to the
meaning and operation of this Declaration of Trust, and subject to the
provisions of Section 1 of this Article XII and to Article XI, shall be
under no liability for any act or omission in accordance with such advice
or for failing to follow such advice. The Trustees shall not be required to
give any bond as such, nor any surety if a bond is obtained.
ESTABLISHMENT OF RECORD DATES
Section 3. The Trustees may close the stock transfer books of the Trust
for a period not exceeding sixty (60) days preceding the date of any
meeting of Shareholders, or the date for the payment of any dividend, or
the date for the allotment of rights, or the date when any change or
conversion or exchange of Shares shall go into effect; or in lieu of
closing the stock transfer books as aforesaid, the Trustees may fix in
advance a date, not exceeding sixty (60) days preceding the date of any
meeting of Shareholders, or the date for payment of any dividend, or the
date for the allotment of rights, or the date when any change or conversion
or exchange of Shares shall go into effect, as a record date for the
determination of the Shareholders entitled to notice of, and to vote at,
any such meeting, or entitled to receive payment of any such dividend, or
to any such allotment of rights, or to exercise the rights in respect of
any such change, conversion or exchange of Shares, and in such case such
Shareholders and only such Shareholders as shall be Shareholders of record
on the date so fixed shall be entitled to such notice of, and to vote at,
such meeting, or to receive payment of such dividend, or to receive such
allotment or rights, or to exercise such rights, as the case may be,
notwithstanding any transfer of any Shares on the books of the Trust after
any such record date fixed or aforesaid.
TERMINATION OF TRUST
Section 4.
(a) This Trust shall continue without limitation of time but subject to
the provisions of sub-section (b) of this Section 4.
(b) Subject to a Majority Shareholder Vote of each Series affected by the
matter or, if applicable, to a Majority Shareholder Vote of the Trust, the
Trustees may
(i) sell and convey the assets of the Trust or any affected Series to
another trust, partnership, association or corporation organized under the
laws of any state which is a diversified open-end management investment
company as defined in the 1940 Act, for adequate consideration which may
include the assumption of all outstanding obligations, taxes and other
liabilities, accrued or contingent, of the Trust or any affected Series,
and which may include shares of beneficial interest or stock of such trust,
partnership, association or corporation; or
(ii) at any time sell and convert into money all of the assets of the
Trust or any affected Series.
Upon making provision for the payment of all such liabilities in either
(i) or (ii), by such assumption or otherwise, the Trustees shall distribute
the remaining proceeds or assets (as the case may be) ratably among the
holders of the Shares of the Trust or any affected Series then outstanding.
(c) Upon completion of the distribution of the remaining proceeds or the
remaining assets as provided in sub-section (b), the Trust or any affected
Series shall terminate and the Trustees shall be discharged of any and all
further liabilities and duties hereunder and the right, title and interest
of all parties shall be cancelled and discharged.
FILING OF COPIES, REFERENCES, AND HEADINGS
Section 5. The original or a copy of this instrument and of each
declaration of trust supplemental hereto shall be kept at the office of the
Trust where it may be inspected by any Shareholder. A copy of this
instrument and of each supplemental declaration of trust shall be filed by
the Trustees with the Secretary of the Commonwealth of Massachusetts and
the Boston City Clerk, as well as any other governmental office where such
filing may from time to time be required. Anyone dealing with the Trust may
rely on a certificate by an officer or Trustee of the Trust as to whether
or not any such supplemental declarations of trust have been made and as to
any matters in connection with the Trust hereunder, and with the same
effect as if it were the original, may rely on a copy certified by an
officer or Trustee of the Trust to be a copy of this instrument or of any
such supplemental declaration of trust. In this instrument or in any such
supplemental declaration of trust, references to this instrument and all
expressions like "herein," "hereof" and "hereunder," shall be deemed to
refer to this instrument as amended or affected by any such supplemental
declaration of trust. Headings are placed herein for convenience of
reference only and in case of any conflict, the text of this instrument,
rather than the headings, shall control. This instrument may be executed in
any number of counterparts each of which shall be deemed an original.
APPLICABLE LAW
Section 6. The trust set forth in this instrument is made in the
Commonwealth of Massachusetts, and it is created under and is to be
governed by and construed and administered according to the laws of said
Commonwealth. The Trust shall be of the type commonly called a
Massachusetts business trust, and without limiting the provisions hereof,
the Trust may exercise all powers which are ordinarily exercised by such a
trust.
AMENDMENTS
Section 7. If authorized by votes of the Trustees and a Majority
Shareholder Vote, or by any larger vote which may be required by applicable
law or this Declaration of Trust in any particular case, the Trustees shall
amend or otherwise supplement this instrument, by making a declaration of
trust supplemental hereto, which thereafter shall form a part hereof,
except that an amendment which shall affect the Shareholders of one or more
Series but not the Shareholders of all outstanding Series shall be
authorized by vote of the Shareholders holding a majority of the Shares
entitled to vote of each Series affected and no vote of Shareholders of a
Series not affected shall be required. Amendments having the purpose of
changing the name of the Trust or of supplying any omission, curing any
ambiguity or curing, correcting or suplementing any defective or
inconsistent provision contained herein shall not require authorization by
Shareholder vote. Copies of the supplemental declaration of trust shall be
filed as specified in Section 5 of this Article XII.
FISCAL YEAR
Section 8. The fiscal year of the Trust shall end on a specified date as
set forth in the Bylaws, provided, however, that the Trustees may, without
Shareholder approval, change the fiscal year of the Trust.
USE OF THE WORD "FIDELITY"
Section 9. Fidelity Management & Research Company ("FMR") has
consented to the use by any Series of the Trust of the identifying word
"Fidelity" in the name of any Series of the Trust at some future date. Such
consent is conditioned upon the employment of FMR as investment adviser of
each Series of the Trust. As between the Trust and itself, FMR controls the
use of the name of the Trust insofar as such name contains the identifying
word "Fidelity". FMR may from time to time use the identifying word
"Fidelity" in other connections and for other purposes, including, without
limitation, in the names of other investment companies, corporations or
businesses which it may manage, advise, sponsor or own or in which it may
have a financial interest. FMR may require the Trust or any Series thereof
to cease using the identifying word "Fidelity" in the name of the Trust or
any Series thereof if the Trust or any Series thereof ceases to employ FMR
or a subsidiary or affiliate thereof as investment adviser.
IN WITNESS WHEREOF, the undersigned, being all of the Trustees of the
Trust, have executed this instrument this 17th day of March, 1994.
[signature lines omitted]

EXHIBIT 5(A)

MANAGEMENT CONTRACT
between
FIDELITY NEW YORK MUNICIPAL TRUST:
Spartan New York Intermediate Municipal Portfolio
and
FIDELITY MANAGEMENT & RESEARCH COMPANY
AGREEMENT made this 17th day of December 1993, by and between Fidelity New
York Municipal Trust, a Massachusetts business trust which may issue one or
more series of shares of beneficial interest (hereinafter called the
"Fund"), on behalf of Spartan New York Intermediate Municipal Portfolio
(hereinafter called the "Portfolio"), and Fidelity Management &
Research Company, a Massachusetts corporation (hereinafter called the
"Adviser").
1. (a) Investment Advisory Services. The Adviser undertakes to act as
investment adviser of the Portfolio and shall, subject to the supervision
of the Fund's Board of Trustees, direct the investments of the Portfolio in
accordance with the investment objective, policies and limitations as
provided in the Portfolio's Prospectus or other governing instruments, as
amended from time to time, the Investment Company Act of 1940 and rules
thereunder, as amended from time to time (the "1940 Act"), and such other
limitations as the Portfolio may impose by notice in writing to the
Adviser. The Adviser shall also furnish for the use of the Portfolio
office space and all necessary office facilities, equipment and personnel
for servicing the investments of the Portfolio; and shall pay the salaries
and fees of all officers of the Fund, of all Trustees of the Fund who are
"interested persons" of the Fund or of the Adviser and of all personnel of
the Fund or the Adviser performing services relating to research,
statistical and investment activities. The Adviser is authorized, in its
discretion and without prior consultation with the Portfolio, to buy, sell,
lend and otherwise trade in any stocks, bonds and other securities and
investment instruments on behalf of the Portfolio. The investment policies
and all other actions of the Portfolio are and shall at all times be
subject to the control and direction of the Fund's Board of Trustees.
(b) Management Services. The Adviser shall perform (or arrange for the
performance by its affiliates of) the management and administrative
services necessary for the operation of the Fund. The Adviser shall,
subject to the supervision of the Board of Trustees, perform various
services for the Portfolio, including but not limited to: (i) providing the
Portfolio with office space, equipment and facilities (which may be its
own) for maintaining its organization; (ii) on behalf of the Portfolio,
supervising relations with, and monitoring the performance of, custodians,
depositories, transfer and pricing agents, accountants, attorneys,
underwriters, brokers and dealers, insurers and other persons in any
capacity deemed to be necessary or desirable; (iii) preparing all general
shareholder communications, including shareholder reports; (iv) conducting
shareholder relations; (v) maintaining the Fund's existence and its
records; (vi) during such times as shares are publicly offered, maintaining
the registration and qualification of the Portfolio's shares under federal
and state law; and (vii) investigating the development of and developing
and implementing, if appropriate, management and shareholder services
designed to enhance the value or convenience of the Portfolio as an
investment vehicle.
The Adviser shall also furnish such reports, evaluations, information or
analyses to the Fund as the Fund's Board of Trustees may request from time
to time or as the Adviser may deem to be desirable. The Adviser shall make
recommendations to the Fund's Board of Trustees with respect to Fund
policies, and shall carry out such policies as are adopted by the Trustees.
The Adviser shall, subject to review by the Board of Trustees, furnish such
other services as the Adviser shall from time to time determine to be
necessary or useful to perform its obligations under this Contract.
(c) The Adviser undertakes to pay all expenses involved in the operation
of the Portfolio, except the following, which shall be paid by the
Portfolio: (i) taxes; (ii) the fees and expenses of all Trustees of the
Fund who are not "interested persons" of the Fund or of the Adviser; (iii)
brokerage fees and commissions; (iv) interest expenses with respect to
borrowings by the Portfolio; and (v) such non-recurring and extraordinary
expenses as may arise, including actions, suits or proceedings to which the
Portfolio is or is threatened to be a party and the legal obligation that
the Portfolio may have to indemnify the Fund's Trustees and officers with
respect thereto. It is understood that service charges billed directly to
shareholders of the Portfolio, including charges for exchanges,
redemptions, or other services, shall not be payable by the Adviser, but
may be received and retained by the Adviser or its affiliates.
(d) The Adviser, at its own expense, shall place all orders for the
purchase and sale of portfolio securities for the Portfolio's account with
brokers or dealers selected by the Adviser, which may include brokers or
dealers affiliated with the Adviser. The Adviser shall use its best
efforts to seek to execute portfolio transactions at prices which are
advantageous to the Portfolio and at commission rates which are reasonable
in relation to the benefits received. In selecting brokers or dealers
qualified to execute a particular transaction, brokers or dealers may be
selected who also provide brokerage and research services (as those terms
are defined in Section 28(e) of the Securities Exchange Act of 1934) to the
Portfolio and/or the other accounts over which the Adviser or its
affiliates exercise investment discretion. The Adviser is authorized to
pay a broker or dealer who provides such brokerage and research services a
commission for executing a portfolio transaction for the Portfolio which is
in excess of the amount of commission another broker or dealer would have
charged for effecting that transaction if the Adviser determines in good
faith that such amount of commission is reasonable in relation to the value
of the brokerage and research services provided by such broker or dealer.
This determination may be viewed in terms of either that particular
transaction or the overall responsibilities which the Adviser and its
affiliates have with respect to accounts over which they exercise
investment discretion. The Trustees of the Fund shall periodically review
the commissions paid by the Portfolio to determine if the commissions paid
over representative periods of time were reasonable in relation to the
benefits to the Portfolio.
The Adviser shall, in acting hereunder, be an independent contractor. The
Adviser shall not be an agent of the Portfolio.
2. It is understood that the Trustees, officers and shareholders of the
Fund are or may be or become interested in the Adviser as directors,
officers or otherwise and that directors, officers and stockholders of the
Adviser are or may be or become similarly interested in the Fund, and that
the Adviser may be or become interested in the Fund as a shareholder or
otherwise.
3. For the services and facilities to be furnished hereunder, the Adviser
shall receive a monthly management fee, payable monthly as soon as
practicable after the last day of each month, at the annual rate of .55% of
the average daily net assets of the Portfolio (computed in the manner set
forth in the Declaration of Trust) determined as of the close of business
on each day throughout the month; provided that the fee, so computed, shall
be reduced by the compensation, including reimbursement of expenses, paid
by the Portfolio to those Trustees who are not "interested persons" of the
Fund or the Adviser.

In the case of initiation or termination of this Contract during any
month, the fee shall be reduced proportionately based on the number of
business days during which it is in effect and the fee computed upon the
average net assets for the business days it is so in effect for that month.
4. The services of the Adviser to the Portfolio are not to be deemed
exclusive, the Adviser being free to render services to others and engage
in other activities, provided, however, that such other services and
activities do not, during the term of this Contract, interfere, in a
material manner, with the Adviser's ability to meet all of its obligations
with respect to rendering services to the Portfolio hereunder. In the
absence of willful misfeasance, bad faith, gross negligence or reckless
disregard of obligations or duties hereunder on the part of the Adviser,
the Adviser shall not be subject to liability to the Portfolio or to any
shareholder of the Portfolio for any act or omission in the course of, or
connected with, rendering services hereunder or for any losses that may be
sustained in the purchase, holding or sale of any security.
5. (a) Subject to prior termination as provided in sub-paragraph (d) of
this paragraph 5, this Contract shall continue in force until May 31, 1994
and indefinitely thereafter, but only so long as the continuance after such
date shall be specifically approved at least annually by vote of the
Trustees of the Fund or by vote of a majority of the outstanding voting
securities of the Portfolio.
(b) This Contract may be modified by mutual consent, such consent on the
part of the Fund to be authorized by vote of a majority of the outstanding
voting securities of the Portfolio.
(c) In addition to the requirements of sub-paragraphs (a) and (b) of this
paragraph 5, the terms of any continuance or modification of this Contract
must have been approved by the vote of a majority of those Trustees of the
Fund who are not parties to the Contract or interested persons of any such
party, cast in person at a meeting called for the purpose of voting on such
approval.
(d) Either party hereto may, at any time on sixty (60) days' prior written
notice to the other, terminate this Contract, without payment of any
penalty, by action of its Trustees or Board of Directors, as the case may
be, or with respect to the Portfolio by vote of a majority of the
outstanding voting securities of the Portfolio. This Contract shall
terminate automatically in the event of its assignment.
6. The Adviser is hereby expressly put on notice of the limitation of
shareholder liability as set forth in the Fund's Declaration of Trust and
agrees that the obligations assumed by the Fund pursuant to this Contract
shall be limited in all cases to the Portfolio and its assets, and the
Adviser shall not seek satisfaction of any such obligation from the
shareholders or any shareholder of the Portfolio or any other Portfolios of
the Fund. In addition, the Adviser shall not seek satisfaction of any such
obligations from the Trustees or any individual Trustee. The Adviser
understands that the rights and obligations of any Portfolio under the
Declaration of Trust are separate and distinct from those of any and all
other Portfolios.
7. This Agreement shall be governed by, and construed in accordance with,
the laws of the Commonwealth of Massachusetts, without giving effect to the
choice of laws provisions thereof.
The terms "vote of a majority of the outstanding voting securities,"
"assignment," and "interested persons," when used herein, shall have the
respective meanings specified in the 1940 Act, as now in effect or as
hereafter amended, and subject to such orders as may be granted by the
Securities and Exchange Commission.
IN WITNESS WHEREOF the parties have caused this instrument to be signed in
their behalf by their respective officers thereunto duly authorized, all as
of the date written above.
FIDELITY NEW YORK MUNICIPAL TRUST
on behalf of Spartan New York Intermediate Municipal Portfolio

By /s/ J. Gary Burkhead

J. Gary Burkhead
Senior Vice President

FIDELITY MANAGEMENT & RESEARCH COMPANY

By /s/ J. Gary Burkhead

J. Gary Burkhead
President

EXHIBIT 6(F)

GENERAL DISTRIBUTION AGREEMENT
between
FIDELITY NEW YORK MUNICIPAL TRUST
and
FIDELITY DISTRIBUTORS CORPORATION
Agreement made this 17th day of December 1993, between Fidelity New York
Municipal Trust, a Massachusetts business trust having its principal place
of business in Boston, Massachusetts and which may issue one or more series
of beneficial interest ("Issuer"), with respect to shares of Spartan New
York Intermediate Municipal Portfolio, a series of the Issuer, and Fidelity
Distributors Corporation, a Massachusetts corporation having its principal
place of business in Boston, Massachusetts ("Distributors").
In consideration of the mutual promises and undertakings herein contained,
the parties agree as follows:
1. Sale of Shares - The Issuer grants to the Distributor the right to sell
shares on behalf of the Issuer during the term of this Agreement and
subject to the registration requirements of the Securities Act of 1933, as
amended ("1933 Act"), and of the laws governing the sale of securities in
the various states ("Blue Sky Laws") under the following terms and
conditions: the Distributor (i) shall have the right to sell, as agent on
behalf of the Issuer, shares authorized for issue and registered under the
1933 Act, and (ii) may sell shares under offers of exchange, if available,
between and among the funds advised by Fidelity Management & Research
Company ("FMR").
2. Sale of Shares by the Issuer - The rights granted to the Distributor
shall be nonexclusive in that the Issuer reserves the right to sell its
shares to investors on applications received and accepted by the Issuer.
Further, the Issuer reserves the right to issue shares in connection with
the merger or consolidation, or acquisition by the Issuer through purchase
or otherwise, with any other investment company, trust, or personal holding
company.
3. Shares Covered by this Agreement - This Agreement shall apply to
unissued shares of the Issuer, shares of the Issuer held in its treasury in
the event that in the discretion of the Issuer treasury shares shall be
sold, and shares of the Issuer repurchased for resale.
4. Public Offering Price - Except as otherwise noted in the Issuer's
current Prospectus and/or Statement of Additional Information, all shares
sold to investors by the Distributor or the Issuer will be sold at the
public offering price. The public offering price for all accepted
subscriptions will be the net asset value per share, as determined in the
manner described in the Issuer's current Prospectus and/or Statement of
Additional Information, plus a sales charge (if any) described in the
Issuer's current Prospectus and/or Statement of Additional Information.
The Issuer shall in all cases receive the net asset value per share on all
sales. If a sales charge is in effect, the Distributor shall have the
right subject to such rules or regulations of the Securities and Exchange
Commission as may then be in effect pursuant to Section 22 of the
Investment Company Act of 1940 to pay a portion of the sales charge to
dealers who have sold shares of the Issuer. If a fee in connection with
shareholder redemptions is in effect, the Issuer shall collect the fee on
behalf of Distributors and, unless otherwise agreed upon by the Issuer and
Distributors, Distributors shall be entitled to receive all of such fees.
5. Suspension of Sales - If and whenever the determination of net asset
value is suspended and until such suspension is terminated, no further
orders for shares shall be processed by the Distributor except such
unconditional orders as may have been placed with the Distributor before it
had knowledge of the suspension. In addition, the Issuer reserves the
right to suspend sales and the Distributor's authority to process orders
for shares on behalf of the Issuer if, in the judgment of the Issuer, it is
in the best interests of the Issuer to do so. Suspension will continue for
such period as may be determined by the Issuer.
6. Solicitation of Sales - In consideration of these rights granted to the
Distributor, the Distributor agrees to use all reasonable efforts,
consistent with its other business, to secure purchasers for shares of the
Issuer. This shall not prevent the Distributor from entering into like
arrangements (including arrangements involving the payment of underwriting
commissions) with other issuers. This does not obligate the Distributor to
register as a broker or dealer under the Blue Sky Laws of any jurisdiction
in which it is not now registered or to maintain its registration in any
jurisdiction in which it is now registered. If a sales charge is in
effect, the Distributor shall have the right to enter into sales agreements
with dealers of its choice for the sale of shares of the Issuer to the
public at the public offering price only and fix in such agreements the
portion of the sales charge which may be retained by dealers, provided that
the Issuer shall approve the form of the dealer agreement and the dealer
discounts set forth therein and shall evidence such approval by filing said
form of dealer agreement and amendments thereto as an exhibit to its
currently effective Registration Statement under the 1933 Act.
7. Authorized Representations - The Distributor is not authorized by the
Issuer to give any information or to make any representations other than
those contained in the appropriate registration statements or Prospectuses
and Statements of Additional Information filed with the Securities and
Exchange Commission under the 1933 Act (as these registration statements,
Prospectuses and Statements of Additional Information may be amended from
time to time), or contained in shareholder reports or other material that
may be prepared by or on behalf of the Issuer for the Distributor's use.
This shall not be construed to prevent the Distributor from preparing and
distributing sales literature or other material as it may deem appropriate.
8. Portfolio Securities - Portfolio securities of the Issuer may be bought
or sold by or through the Distributor, and the Distributor may participate
directly or indirectly in brokerage commissions or "spreads" for
transactions in portfolio securities of the Issuer. However, all sums of
money received by the Distributor as a result of such purchases and sales
or as a result of such participation must, after reimbursement of actual
expenses of the Distributor in connection with such activity, be paid over
by the Distributor for the benefit of the Issuer.
9. Registration of Shares - The Issuer agrees that it will take all action
necessary to register shares under the 1933 Act (subject to the necessary
approval of its shareholders) so that there will be available for sale the
number of shares the Distributor may reasonably be expected to sell. The
Issuer shall make available to the Distributor such number of copies of its
currently effective Prospectus and Statement of Additional Information as
the Distributor may reasonably request. The Issuer shall furnish to the
Distributor copies of all information, financial statements and other
papers which the Distributor may reasonably request for use in connection
with the distribution of shares of the Issuer.
10. Expenses - The Issuer shall pay all fees and expenses (a) in connection
with the preparation, setting in type and filing of any registration
statement, Prospectus and Statement of Additional Information under the
1933 Act and amendments for the issue of its shares, (b) in connection with
the registration and qualification of shares for sale in the various states
in which the Board of Trustees of the Issuer shall determine it advisable
to qualify such shares for sale (including registering the Issuer as a
broker or dealer or any officer of the Issuer as agent or salesman in any
state), (c) of preparing, setting in type, printing and mailing any report
or other communication to shareholders of the Issuer in their capacity as
such, and (d) of preparing, setting in type, printing and mailing
Prospectuses, Statements of Additional Information and any supplements
thereto sent to existing shareholders.
As provided in the Distribution and Service Plan adopted by the Issuer, it
is recognized by the Issuer that FMR may reimburse the Distributor for any
direct expenses incurred in the distribution of shares of the Issuer from
any source available to it, including advisory and service or management
fees paid to it by the Issuer.
11. Indemnification - The Issuer agrees to indemnify and hold harmless the
Distributor and each of its directors and officers and each person, if any,
who controls the Distributor within the meaning of Section 15 of the 1933
Act against any loss, liability, claim, damages or expense (including the
reasonable cost of investigating or defending any alleged loss, liability,
claim, damages, or expense and reasonable counsel fees incurred in
connection therewith) arising by reason of any person acquiring any shares,
based upon the ground that the registration statement, Prospectus,
Statement of Additional Information, shareholder reports or other
information filed or made public by the Issuer (as from time to time
amended) included an untrue statement of a material fact or omitted to
state a material fact required to be stated or necessary in order to make
the statements not misleading under the 1933 Act, or any other statute or
the common law. However, the Issuer does not agree to indemnify the
Distributor or hold it harmless to the extent that the statement or
omission was made in reliance upon, and in conformity with, information
furnished to the Issuer by or on behalf of the Distributor. In no case (i)
is the indemnity of the Issuer in favor of the Distributor or any person
indemnified to be deemed to protect the Distributor or any person against
any liability to the Issuer or its security holders to which the
Distributor or such person would otherwise be subject by reason of willful
misfeasance, bad faith or gross negligence in the performance of its duties
or by reason of its reckless disregard of its obligations and duties under
this Agreement, or (ii) is the Issuer to be liable under its indemnity
agreement contained in this paragraph with respect to any claim made
against the Distributor or any person indemnified unless the Distributor or
person, as the case may be, shall have notified the Issuer in writing of
the claim within a reasonable time after the summons or other first written
notification giving information of the nature of the claim shall have been
served upon the Distributor or any such person (or after the Distributor or
such person shall have received notice of service on any designated agent).
However, failure to notify the Issuer of any claim shall not relieve the
Issuer from any liability which it may have to the Distributor or any
person against whom such action is brought otherwise than on account of its
indemnity agreement contained in this paragraph. The Issuer shall be
entitled to participate at its own expense in the defense, or, if it so
elects, to assume the defense of any suit brought to enforce any claims,
but if the Issuer elects to assume the defense, the defense shall be
conducted by counsel chosen by it and satisfactory to the Distributor or
person or persons, defendant or defendants in the suit. In the event the
Issuer elects to assume the defense of any suit and retain counsel, the
Distributor, officers or directors or controlling person or persons,
defendant or defendants in the suit, shall bear the fees and expenses of
any additional counsel retained by them. If the Issuer does not elect to
assume the defense of any suit, it will reimburse the Distributor, officers
or directors or controlling person or persons, defendant or defendants in
the suit, for the reasonable fees and expenses of any counsel retained by
them. The Issuer agrees to notify the Distributor promptly of the
commencement of any litigation or proceedings against it or any of its
officers or trustees in connection with the issuance or sale of any of the
shares.
The Distributor also covenants and agrees that it will indemnify and hold
harmless the Issuer and each of its Board members and officers and each
person, if any, who controls the Issuer within the meaning of Section 15 of
the 1933 Act, against any loss, liability, damages, claim or expense
(including the reasonable cost of investigating or defending any alleged
loss, liability, damages, claim or expense and reasonable counsel fees
incurred in connection therewith) arising by reason of any person acquiring
any shares, based upon the 1933 Act or any other statute or common law,
alleging any wrongful act of the Distributor or any of its employees or
alleging that the registration statement, Prospectus, Statement of
Additional Information, shareholder reports or other information filed or
made public by the Issuer (as from time to time amended) included an untrue
statement of a material fact or omitted to state a material fact required
to be stated or necessary in order to make the statements not misleading,
insofar as the statement or omission was made in reliance upon, and in
conformity with information furnished to the Issuer by or on behalf of the
Distributor. In no case (i) is the indemnity of the Distributor in favor
of the Issuer or any person indemnified to be deemed to protect the Issuer
or any person against any liability to which the Issuer or such person
would otherwise be subject by reason of willful misfeasance, bad faith or
gross negligence in the performance of its duties or by reason of its
reckless disregard of its obligations and duties under this Agreement, or
(ii) is the Distributor to be liable under its indemnity agreement
contained in this paragraph with respect to any claim made against the
Issuer or any person indemnified unless the Issuer or person, as the case
may be, shall have notified the Distributor in writing of the claim within
a reasonable time after the summons or other first written notification
giving information of the nature of the claim shall have been served upon
the Issuer or any such person (or after the Issuer or such person shall
have received notice of service on any designated agent). However, failure
to notify the Distributor of any claim shall not relieve the Distributor
from any liability which it may have to the Issuer or any person against
whom the action is brought otherwise than on account of its indemnity
agreement contained in this paragraph. In the case of any notice to the
Distributor, it shall be entitled to participate, at its own expense, in
the defense or, if it so elects, to assume the defense of any suit brought
to enforce the claim, but if the Distributor elects to assume the defense,
the defense shall be conducted by counsel chosen by it and satisfactory to
the Issuer, to its officers and Board and to any controlling person or
persons, defendant or defendants in the suit. In the event that the
Distributor elects to assume the defense of any suit and retain counsel,
the Issuer or controlling persons, defendant or defendants in the suit,
shall bear the fees and expense of any additional counsel retained by them.
If the Distributor does not elect to assume the defense of any suit, it
will reimburse the Issuer, officers and Board or controlling person or
persons, defendant or defendants in the suit, for the reasonable fees and
expenses of any counsel retained by them. The Distributor agrees to notify
the Issuer promptly of the commencement of any litigation or proceedings
against it in connection with the issue and sale of any of the shares.
12. Effective Date - This agreement shall be effective upon its execution,
and unless terminated as provided, shall continue in force until January
31, 1994 and thereafter from year to year, provided continuance is approved
annually by the vote of a majority of the Board members of the Issuer, and
by the vote of those Board members of the Issuer who are not "interested
persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment
Company Act of 1940 is in effect, by the vote of those Board members of the
Issuer who are not "interested persons" of the Issuer and who are not
parties to the Distribution and Service Plan or this Agreement and have no
financial interest in the operation of the Distribution and Service Plan or
in any agreements related to the Distribution and Service Plan, cast in
person at a meeting called for the purpose of voting on the approval. This
Agreement shall automatically terminate in the event of its assignment. As
used in this paragraph, the terms "assignment" and "interested persons"
shall have the respective meanings specified in the Investment Company Act
of 1940 as now in effect or as hereafter amended. In addition to
termination by failure to approve continuance or by assignment, this
Agreement may at any time be terminated by either party upon not less than
sixty days' prior written notice to the other party.
13. Notice - Any notice required or permitted to be given by either party
to the other shall be deemed sufficient if sent by registered or certified
mail, postage prepaid, addressed by the party giving notice to the other
party at the last address furnished by the other party to the party giving
notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts,
and if to the Distributor, at 82 Devonshire Street, Boston, Massachusetts.
14. Limitation of Liability - The Distributor is expressly put on notice of
the limitation of shareholder liability as set forth in the Declaration of
Trust of the Issuer and agrees that the obligations assumed by the Issuer
under this contract shall be limited in all cases to the Issuer and its
assets. The Distributor shall not seek satisfaction of any such obligation
from the shareholders or any shareholder of the Issuer. Nor shall the
Distributor seek satisfaction of any such obligation from the Trustees or
any individual Trustee of the Issuer. The Distributor understands that the
rights and obligations of each series of shares of the Issuer under the
Issuer's Declaration of Trust are separate and distinct from those of any
and all other series.

15. This Agreement shall be governed by, and construed in accordance with,
the laws of the Commonwealth of Massachusetts, without giving effect to the
choice of laws provisions thereof.
IN WITNESS WHEREOF, the Issuer has executed this instrument in its name
and behalf, and its seal affixed, by one of its officers duly authorized,
and the Distributor has executed this instrument in its name and behalf by
one of its officers duly authorized, as of the day and year first above
written.
FIDELITY NEW YORK MUNICIPAL TRUST

By /s/ J. Gary Burkhead
J. Gary Burkhead
Senior Vice President
FIDELITY DISTRIBUTORS CORPORATION

By /s/ J. Gary Burkhead
J. Gary Burkhead
President

EXHIBIT 9(K)

Dated as of December 17, 1993
FIDELITY NEW YORK MUNICIPAL TRUST:
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO (the Portfolio)
SCHEDULE A: TRANSFER AGENT, DIVIDEND AND DISTRIBUTION DISBURSING AGENT,
AND SHAREHOLDER SERVICING AGENT
I. Services To Be Performed: United Missouri Bank, N.A. (the Bank) shall
be responsible for the following:
A. The Bank shall administer and/or perform transfer agent functions for
the Portfolio. It will:
(1) receive for acceptance, orders for the purchase of Portfolio shares,
and promptly deliver payments received by it and appropriate documentation
therefor to the Portfolio's custodian;
(2) pursuant to purchase orders, issue the appropriate number of Portfolio
shares and properly register such shares to the appropriate shareholder
account;
(3) receive for acceptance, redemption requests and redemption instructions
(including redemptions by check transmitted to the Bank by any duly
appointed check processing agent) and process payments for redemption to
shareholders in accordance with the terms, conditions and rules governing
each shareholder's account as set forth in the Portfolio's prospectus,
statement of additional information and each shareholder's account
application;
(4) effect transfers of shares by the registered owners thereof upon
receipt of appropriate instructions; and
(5) prepare and mail to Portfolio shareholders such confirmations and
statements of account as may be required under applicable law and as may be
reasonably requested by the Portfolio.
B. The Bank shall act as service agent of the Portfolio in connection with
dividend and capital
gains distributions by the Portfolio. It will:
(1) for each Portfolio shareholder who has elected to receive dividends
and/or distributions in cash, send payments to shareholders in accordance
with the shareholder's election; and
(2) for each Portfolio shareholder who has elected to receive dividends
and/or distributions in shares of the Portfolio or in shares of another
mutual fund for which the Bank serves as transfer agent, credit the
shareholder's account(s) for the proper number of shares.
C. In addition to the foregoing services, the Bank shall:
(1) perform all the customary administrative services related to its
transfer agent and dividend and distribution disbursing agent functions,
including, but not limited to:
(a) maintaining all shareholder accounts,
(b) preparing shareholder meeting lists, and supervising, but not paying
for, various agents and contractors employed to mail proxy materials and
receive and tabulate proxies,
(c) typesetting, printing and mailing shareholder reports and prospectuses
to current Portfolio shareholders,
(d) withholding taxes (including withholding for foreign taxes) for
shareholders for whom withholdings are required by federal or state
regulation and filing all required reports with respect thereto,
(e) preparing, distributing and filing all requisite shareholder tax
statements on appropriate forms and responding to inquiries with respect
thereto, and
(f) establishing and supervising the operation of bank accounts for the
receipt of funds for share purchases and the payment of dividends,
distributions and redemption proceeds;
(2) furnish the Portfolio with all necessary reports of Portfolio shares
sold in each state in order to permit compliance with the state securities
laws; and
(3) as required, respond to shareholder inquiries relating to the status of
their accounts, Portfolio performance, distributions, and share price, and
furnish shareholders with copies of account histories and make adjustments
to shareholder accounts to correct account files.
II. Compensation: For the performance of its obligations hereunder, the
Portfolio shall pay the Bank in accordance with this Schedule A.
A. Certain Defined Terms
For purposes of this Schedule A, the following terms shall have the
meanings indicated:
An "account" shall mean each and every account or subaccount of a
Portfolio shareholder of record maintained on a transfer agency system by
the Bank or on a transfer agency system operated by divisions and
subsidiaries of FMR Corp. or any other entity to whom the Bank has
delegated all or a portion of its duties under this Schedule A such term
shall not include an account maintained on any subaccounting system
operated by broker, bank or other intermediary who is acting on behalf of
its customer and who is not acting pursuant to a delegation of duties by
the Bank.
"Basic Retail Account" shall mean any account of the Portfolio other than
a USA Account, an Institutional Trading Account, a Broker-Dealer Trading
Account or an Institutional Employee Benefit Account.
"Broker-Dealer Trading Account" shall mean any account of the Portfolio
maintained on behalf of a broker-dealer (other than broker-dealer
affiliates of FMR) or its clients.
"Centralized Service Transaction" shall mean each monetary transaction
described in Exhibit A to this Schedule A executed on behalf of an
institutional customer (such as a bank trust department, corporation or
investment adviser), or its clients who has no remote system access and for
whom the Bank inputs all account activity information and performs all
account maintenance functions.
"Institutional Employee Benefit Account" shall mean an account of the
Portfolio maintained on behalf of a corporation, association, partnership
or other employer for the benefit of employees, by which employer and
employee contributions are invested in the Portfolio as part of a qualified
or non-qualified employee benefit plan primarily through payroll
deductions.
"Institutional Trading Account" shall mean any account maintained on
behalf of an institutional client (such as a bank, investment advisor,
insurance company or law firm), other than a broker-dealer, or its clients.
"Remote Service Transaction" shall mean each monetary transaction
described in Exhibit A-1 to the Schedule A executed on behalf of an
institutional customer (such as a bank, investment adviser, insurance
company or law firm), or its clients, who utilizes remote system access
equipment to input account activity information and to perform account
maintenance functions.
"USA Account" shall mean any account of the Portfolio established as the
core feature under the Fidelity USA Program, into which brokerage account
cash balances may be swept and from which brokerage account, credit card
and check debits may be satisfied.
B. Schedule of Account and Transaction Fees
(1) Basic Retail Accounts
(a) Account Fees - The Portfolio shall pay an account fee at the annual
rates (adjusted in accordance with the procedures set forth in II.C.(1)(a)
and (c) below) of $15.00 for Basic Retail Accounts with a value of less
than $5,000 and $25.50 for Basic Retail Accounts with a value of $5,000 or
more (the "December 31, 1992 Retail Account Fee Rates").
(b) Transaction Fees - For all Basic Retail Accounts the Portfolio shall
pay a fee (adjusted in accordance with the procedures set forth in
II.C.(1)(a) and (c) below) of $5.61 for each transaction described in
Exhibit A-1 to this Schedule A (the "December 31, 1992 Retail Transaction
Fee Rate").
(2) USA Accounts
(a) Account Fees - The Portfolio shall pay an account fee, in lieu of the
fees set forth in II.B.(1)(a), at the annual rate (adjusted in accordance
with the procedures set forth in II.C.(1)(b) and (c) below) of $12.35 for
each USA Account (the "December 31, 1992 Account Fee Rate").
(b) Transaction Fees - For all USA Accounts the Portfolio shall pay a fee
(adjusted in accordance with the procedures set forth in II.C.(1)(b)
below), in lieu of the fees set forth in II.B.(1)(b), of $0.74 for each
transaction described in Exhibit A-2 to this Schedule A (the "December 31,
1992 USA Transaction Fee Rate").
(c) Shareholder Service Fees - The foregoing Account Fees and Transactions
Fees, shall be in addition to, and not be reduced by, the fees charged to
shareholders directly for participating in the Fidelity USA program.
(3) Institutional Trading Accounts
(a) Account Fees - The Portfolio shall pay an account fee, in lieu of the
fees set forth in II.B.(1)(a) at the annual rate of $95.00 for each
Institutional Trading Account.
(b) Transaction Fees - The Portfolio shall pay a fee, in lieu of the fees
set forth in II.B.(1)(b), of $20.00 for each Centralized Service
Transaction and $17.50 for each Remote Service Transaction of such
Institutional Trading Account.
(4) Broker-Dealer Trading Accounts
(a) Account Fees - The Portfolio shall pay an account fee, in lieu of the
fees set forth in II.B.(1)(a), at the annual rate of $30.00 for each
Broker-Dealer Institutional Trading Account.
(b) Transaction Fees - The Portfolio shall pay a fee, in lieu of the fees
set forth in II.B.(1)(b) of $6.00 for each Centralized Service Transaction
and each Remote Service Transaction of such Broker-Dealer Institutional
Trading Account.
(5) Institutional Employee Benefit Plan Accounts - The Portfolio shall pay
a fee, in lieu of the fees set forth in II.B.(1), based upon the month end
value of all Institutional Employee Benefit Plan Accounts at an annual rate
of 0.30%.
C. Rate Changes
(1) Basic Retail Account and USA Account Rate Adjustments
(a) Annual Cost of Living Adjustment for Basic Retail Accounts - The
December 31, 1992 Retail Account Fee Rates and Retail Transaction Fee Rates
set forth in II.B.(1) of this Schedule A shall be adjusted annually for
increases in the cost of living as of the first day of January. On each
January 1, beginning January 1, 1994, the rates shall be adjusted by
multiplying 70% of the percentage change in the National Consumer Price
Index for Urban Areas Index (the Index) for the preceding calendar year
times the rates in effect for the preceding calendar year and adding the
results to the respective rates for the preceding calendar year to
determine the then current rate for the ensuing calendar year. Each
adjustment shall be rounded to the nearest one cent.
SAMPLE CALCULATION: Assuming the December 31, 1992 Retail Account Rate was
$7.00 and the December 31, 1992 Retail Transaction Fee Rate was $5.00, that
the Index reported a change in wage and price levels for the 12 months
ended December 31, 1993 of 5%, then the adjusted rates for the period
beginning January 1, 1994 would be calculated as follows:

Basic Retail Account Fee Rate Computation:
70% x 5% x $7.00 = $
.25
Add 7.00
1994 Basic Retail Account Fee $ 7.25
Basic Retail Transaction Fee Rate Computation:
70% x 5% x $5.00 = $ .18
Add 5.00
1994 Basic Retail Transaction Fee $ 5.18
(b) Annual Cost of Living Adjustment for USA Accounts - The December 31,
1992 USA Account Fee Rate and USA Transaction Fee Rate set forth in
II.B.(2) of this Schedule A shall be adjusted annually for increases in the
cost of living as of the first day of January. On each January 1,
beginning January 1, 1994, the rates shall be adjusted by multiplying 70%
of the percentage change in the Index for the preceding calendar year times
the rates in effect for the preceding calendar year and adding the results
to the respective rates for the preceding calendar year to determine the
then current rate for the ensuing calendar year.
SAMPLE CALCULATION: Assuming the December 31, 1992 USA Account Rate was
$11.00 and the December 31, 1992 USA Transaction Fee Rate was $.65, that
the Index reported a change in wage and price levels for the 12 months
ended December 31, 1993 of 5%, then the adjusted rates for the period
beginning January 1, 1994 would be calculated as follows:
USA Account Fee Rate Computation:
70% x 5% x $11.00 =
$ .39
Add 11.00
1994 USA Account Fee $ 11.39
USA Transaction Fee Rate Computation:
70% x 5% x $0.65 =
$ .02
Add .65
1994 USA Transaction Fee $ 0.67
(c) Postal Rate Changes - On the first day of any month following the
month in which the United States Postal Service implements a postal rate
increase, or if the increase is effective with the first day of a month,
then commencing on that first day, (Effective Date) the Account Fees and
Transaction Fees for Basic Retail Accounts and USA Accounts then in effect
shall be adjusted by a Postage Increase Factor (PIF). The PIF adjustment
shall be computed in the following fashion. The Account Fees and the
Transaction Fees for Basic Retail Accounts and USA Accounts then in effect
shall each be multiplied by the PIF and the resulting amounts shall be
added to the respective current rates. The PIF shall be determined by
dividing the revenues derived from the Account Fees and Transaction Fees
for Basic Retail Accounts and USA Accounts for the 12 months preceding the
Effective Date of the postal rate increase into the postal costs associated
with Basic Retail Accounts and with USA Accounts, respectively, for the
same 12-month period and then multiplying the result times a Class Cost
Factor. The Class Cost Factor shall be derived by calculating the dollar
weighted postage increase for all classes of postage being utilized to
perform services to Basic Retail Accounts and to USA Accounts,
respectively. The dollar-weighted postage increase shall be calculated by
multiplying the percentage increase for each class by the postal costs for
each such class and dividing the sum of such calculations by the total
postage costs for the 12 months preceding the Effective Date. Each
adjustment should be rounded to the nearest one cent.
SAMPLE CALCULATION: Postal rate adjustments would be calculated for
Account Fees and Transaction Fees for Basic Retail Accounts and USA
Accounts in the example set forth below for Basic Retail Accounts, assuming
(a) that on May 31 prior to the implementation of a postal rate increase,
the annual rate for Basic Retail Account Fees is $7.00 and the Transaction
Fee rate is $5.00, (b) that for the previous 12 months the revenues from
such fees are $10 million, and (c) that there were following three classes
of Basic Retail Account postage costs for the same period and the following
increases occur on June 1:
Postage 12 months of Postage Rate
Class Postage Cost Increases
1st $400,000 6%
2nd $100,000 9%
3rd $200,000 11%
STEP 1: CALCULATION OF THE DOLLAR-WEIGHTED POSTAGE INCREASE.
$400,000 x 6% = $ 24,000
$100,000 x 9% = 9,000
$200,000 x 11% = 22,000
$ 55,000
divided by total postage costs $700,000
Class Cost Factor .0785
STEP 2: CALCULATION OF POSTAGE INCREASE FACTOR (PIF).
12 month postage costs $700,000
divided by 12 month revenues 10,000,000
.07
multiplied by the Class Cost Factor .0785
PIF .0055
STEP 3: CALCULATION OF JUNE 1 RATES.
Basic Retail Account Fee computation:
$7.00 x .0055 = $ .04
Add 7.00
6/1 Basic Retail Account Fee $7.04
Basic Retail Transaction Fee Computation:
$5.00 x .0055 = $ .03
Add 5.00
6/1 Basic Retail Transaction Fee $5.03
D. Schedule of Payments
The Bank shall be entitled to receive the account fee in respect of an
account under the applicable provisions of paragraph B above in each year
in which such account has a share balance greater than zero as of January
1, and in respect of each account opened after January 1 of such year.
Accounts with a share balance of zero shall be closed as of December 31
each year, and no account fee shall be paid in respect of such accounts for
the following year unless it is reopened. Account fees shall be billed
monthly on a pro rata basis at one-twelfth of the applicable annual rate as
of the end of each calendar month for each account open or opened during
the month. An account shall be a billable account as of the end of the
month in which it is opened, and the end of each month thereafter through
December 31, even though the value of such account may become zero. The
net asset value of an account as most recently determined in accordance
with the Portfolio's prospectus before 11:59 p.m., Boston time, on the last
calendar day of a month shall be the value used to determine the applicable
fee for the entire month. The Bank may bill for accounts maintained on
transfer agency systems maintained by other divisions and subsidiaries of
FMR Corp. or any other entity to whom the Bank has delegated all or a
portion of its duties under this Schedule A. Transaction fees with respect
to an account are billable by the Bank as of the end of each month in which
the transaction occurs. In the event that a transaction is canceled or
corrected, the cancellation or correction shall be reflected as a credit to
the Fund against billable transactions for the month in which the
cancellation or correction occurs.
E. Shareholder Charges - The Bank shall be entitled to charge a shareholder
directly, and may redeem shares of the Portfolio held in a shareholder's
account, for:
(1) Exchange Fees - The Bank may from time to time receive, through payment
by shareholders of the Portfolio, all or a portion of an exchange fee in an
amount and under circumstances authorized by the Trustees of the Fund. If
a portion of any exchange fee collected is to be allocated to the
Portfolio, such amount shall be applied to reduce transaction fees or other
charges otherwise payable to the Bank pursuant to this Agreement in
accordance with the allocation authorization by the Board of Trustees of
the Fund.
(2) Wire fees - any fees in effect on January 1, 1993 as disclosed in the
Portfolio's Prospectus or which may be approved by the Trustees of the Fund
for executing a wire transfer of the proceeds of any wire redemption order
placed by a shareholder.
(3) Dishonored Checks - any fees reasonably related to cost and imposed by
the Bank when a shareholder purchases shares by check and the purchase is
subsequently canceled because the check was dishonored by the shareholder's
bank.
(4) Account Histories - any fees reasonably related to cost and imposed by
the Bank to prepare, at the request of a shareholder, an account history or
provide other research information for any year(s) prior to the calendar
year in which the request is made by the shareholder.
(5) Miscellaneous Supplemental Fees - any fees imposed by the Bank or any
affiliate of the Bank for providing supplemental services to a shareholder
pursuant to separate arrangements with the customer, including but not
limited to fees for personal advisory services, fees for providing check
redemption services, for maintaining and providing services to an
individual retirement custodian account, a Keogh custodian account, a
Prototype Profit Sharing or Money Purchase Pension Plan account or for
other similar supplemental services.
III. Costs and Expenses
A. Allocation of Costs. The Bank will be responsible for all expenses,
costs and other charges arising out of the performance of its obligations
hereunder, including the fees and disbursements of any third party retained
to perform any of the services to the Portfolio on behalf of the Bank
(including the fees and handling charges of brokers, banks and other
intermediaries for forwarding shareholder reports and statements with
respect to each account for which an account fee is imposed); all paper,
typesetting, printing, stationery, envelopes, postage, labeling costs, mail
sorting and other similar costs of preparing and mailing any dividend or
redemption payment, all shareholder reports (including the cost of printing
and mailing prospectuses sent to current shareholders), tax statements,
confirmations, notices and statements of account; all telephone and
computer equipment and usage charges; and all personnel expenses, heat,
light, rent, utilities, equipment purchases or rentals; all insurance
premiums associated with the provision of services under this agreement,
unless the Trustees shall have specifically authorized an allocation of all
or a portion of the premium to the Portfolio; all costs associated with the
provision of check redemption services (including, the costs of printing
and mailing of checks and checkbooks to shareholders, the charges of any
vendor retained by the Portfolio to process checks for payment, and the
charges of sending canceled checks to shareholders); and other necessary
expenses associated with the provision of services hereunder.
Notwithstanding the foregoing, the Portfolio shall be required to bear all
expenses for all accounts, including USA Core Accounts, Institutional
Trading Accounts, Broker-Dealer Trading Accounts and Institutional Employee
Benefit Accounts, associated with: (1) the printing, handling, forwarding
or mailing of shareholder reports and notices to shareholders who own
shares through an account of a broker, bank or other intermediary if the
Bank is not compensated by an account fee for each sub-account, (2) the
charges of any bank for establishing and operating accounts for the receipt
of funds for share purchases and the payment of dividends, distributions
and redemption proceeds, (3) all fees and expenses of registering shares
for sale under the state securities laws, and (4) the holding of annual or
special meetings of Portfolio shareholders, including: the costs of
typesetting, printing, postage and mailing notices, proxy cards and proxy
statements (and, if required, annual reports sent to shareholders who have
opened accounts subsequent to the last regular mailing date of such reports
to shareholders); the fees and other disbursements of any agent hired to
mail proxy materials and/or tabulate proxies; all charges incurred by any
proxy soliciting agent; the reasonable and customary fees and handling
charges of brokers, banks and other intermediaries for forwarding proxy
materials; and all other customary expenses associated with the holding of
shareholder meetings.
B. Reports. Once each year, the Bank shall cause Service to submit to the
Fund and the other funds advised by Fidelity Management & Research
Company with which the Bank has Transfer Agent Agreements (the Funds) a
report setting forth the total amount of costs and expenses incurred by the
Bank in the performance of its obligations to the Funds under the Transfer
Agent Agreements and the total amounts payable by the Funds for such
services. The Bank shall also cause Service to provide annually a report
by an independent certified public accounting firm (who may be the auditors
of Service) on Service's income and expenses. The term "Transfer Agent
Agreements" shall mean this agreement between the Bank and the Fund and
agreements of like tenor between the Bank and other Funds.
Fidelity Management & Research Co. (FMR) and the Trust on behalf of the
Portfolio have entered into a management contract pursuant to which FMR has
agreed to pay certain enumerated expenses. FMR hereby agrees with the Bank
to pay all compensation set forth in paragraph II of this Schedule A and,
so long as the management contract remains in effect, the Bank agrees with
the Portfolio to look exclusively to FMR for payment of the fees and
expenses set forth in paragraph II of this Schedule A.
FIDELITY MANAGEMENT & RESEARCH COMAPNY

By: /s/J. Gary Burkhead
Name: J. Gary Burkhead
Title: President
UNITED MISSOURI BANK, N.A.

By: /s/Patricia A. Peterson
Name: Patricia A. Peterson
Title: Sr. Vice President

FIDELITY NEW YORK MUNICIPAL TRUST on behalf of
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

By: /s/Gary L. French
Name: Gary L. French
Title: Treasurer

Exhibit A-1
Monetary Transaction Types
The following monetary transactions may be billed by United Missouri Bank,
N.A. under the Transfer Agent Agreement with FIDELITY NEW YORK MUNICIPAL
TRUST: SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO:
Direct Payments - an investor pays cash and shares are issued pursuant to a
single order to purchase shares.
Direct Redemption - an investor's shares are redeemed and a check is sent
for redemption proceeds.
Exchange Redemption - A shareholder has entered an order to sell shares of
the Portfolio and invest proceeds in another Fund that permits exchange
privileges.
Exchange Purchase - A shareholder has entered an order of redemption to
another Fund and directed that proceeds of the redemption be invested in
the Portfolio.
Transfer - The change of ownership of an account is registered, by opening
a new account in the Portfolio and transferring of shares to the new
account.
Wire Purchases - An investor places an order for the purchase of shares and
purchase price is wired to the Portfolio.
Purchase by Directed Dividend - Pursuant to standing instruction of a
shareholder, shares of the Portfolio are purchased and the purchase price
is paid by a dividend from a different Fund.
Check Redemption - A shareholder's check is presented for payment and
shares sufficient to honor the check are redeemed.
Wire Liquidation - A shareholder requests that a specified number of shares
or dollar amount of shares be redeemed and a bank wire is sent for the
proceeds of redemption, less any applicable bank charges for the wire.
Electronic Funds Purchase - Shares are purchased by an electronic funds
transfer.
Electronic Funds Redemption - Shares are redeemed and the proceeds of
redemption are transferred electronically to the shareholder.
Systematic Withdrawal Plan Redemptions - Pursuant to standing instructions,
a shareholder redeems a specified amount of shares.
Exhibit A-2
USA Account Transaction Fees
The following monetary transactions may be billed by United Missouri Bank,
N.A. under the Transfer Agent Agreement with FIDELITY NEW YORK MUNICIPAL
TRUST: SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO in connection with
a USA Account:
Cash Advances - Each cash advance to a shareholder from a participating
financial institution for which the debit balance in the Fidelity USA
account is satisfied by a redemption of Portfolio shares.
Checks Paid - Each check drawn by a shareholder (other than a check issued
in connection with the Fidelity USA bill payment program) which is
presented for payment and results in a redemption of Portfolio shares.
Checks Received - Each check which is deposited into a Fidelity USA account
and results in the purchase of Portfolio shares.
Debit Card Purchases - Each use of a debit (or credit) card issued to a
Fidelity USA account participant to pay for goods or services which results
in the redemption of Portfolio shares in an account sufficient to cover the
debit (or credit) card charge.
Direct Deposit - Each pre-authorized deposit of funds through a
participating financial institution by a Fidelity USA program participant
to such program participant's Fidelity USA account which results in a
purchase of Portfolio shares.
EFT Received - Each electronic transfer of funds to a Fidelity USA account
by a Fidelity USA program participant which results in a purchase of
Portfolio shares.
EFT Paid - Each electronic transfer of funds by a Fidelity USA program
participant from such program participant's Fidelity USA account, which
results in a redemption of Portfolio shares.
Wire Received - Each wire transfer of funds by a Fidelity USA program
participant to a Fidelity USA account, which results in a purchase of
Portfolio shares.
Wire Sent - Each wire transfer of funds by a Fidelity USA program
participant from such program participant's Fidelity USA account, which
results in a redemption of Portfolio shares.
Automatic Teller - Each use of an automatic teller machine by a Fidelity
USA program participant to secure cash or to transfer funds, which results
in a redemption of Portfolio shares.
Dated December 17, 1993
FIDELITY NEW YORK MUNICIPAL TRUST: SPARTAN NEW YORK INTERMEDIATE MUNICIPAL
PORTFOLIO (the Portfolio)
FORM OF SCHEDULE B: AGENT TO PERFORM PORTFOLIO PRICING AND BOOKKEEPING
I. Services To Be Performed. United Missouri Bank, N.A. (the Bank) shall
be responsible for:
A. Accounting relating to the Portfolio and portfolio transactions of the
Portfolio.
B. The determination of net asset value per share of the outstanding
shares of the Portfolio and the offering price, if any, at which shares are
to be sold, at the times and in the manner described in the Declaration of
Trust or Partnership Agreement, as amended, and
the Prospectus of the Portfolio (pricing).
C. The determination of distributions, if any.
D. The timely communication of information determined in B and C above, to
the person or
persons designated by the Portfolio.
E. Maintaining the books of account of the Portfolio.
F. In conjunction with the Custodian, receiving information and keeping
records about all corporate actions, including, but not limited to, cash
and stock distributions or dividends,
stock splits and reverse stock splits, taken by companies whose
securities are held by the
Portfolio.
G. Monitoring foreign corporate actions and foreign trades and entering
orders to convert foreign currency or establish contracts for future
settlement of foreign currency.
H. Processing and monitoring the settlement of Variable Rate Demand Notes
and GNMA's.
I. Monitoring and accounting for futures and options.
II. Compensation. For the performance of its obligations hereunder, the
Portfolio shall pay the Bank an annual fee based on average daily net
assets for each month. The fee schedule is as follows:
Portfolio's

Average Daily Net Assets Fee Rate

$500 million and under .04%

Over $500 million .02%

Fidelity Management & Research Co. (FMR) and the Trust on behalf of the
Portfolio have entered into a management contract pursuant to which FMR has
agreed to pay certain enumerated expenses. FMR hereby agrees with the Bank
to pay all compensation set forth in paragraph II of this Schedule B and,
so long as the management contract remains in effect, the Bank agrees with
the Portfolio to look exclusively to FMR for payment of the fees and
expenses set forth in paragraph II of this Schedule B.
FIDELITY MANAGEMENT & RESEARCH COMAPNY

By: /s/J. Gary Burkhead
Name: J. Gary Burkhead
Title: President

UNITED MISSOURI BANK, N.A.

By: /s/Patricia A. Peterson
Name: Patricia A. Peterson
Title: Sr. Vice President

FIDELITY NEW YORK MUNICIPAL TRUST on behalf of
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

By: /s/Gary L. French
Name: Gary L. French
Title: Treasurer

FIDELITY NEW YORK MUNICIPAL TRUST: SPARTAN NEW YORK INTERMEDIATE MUNICIPAL
PORTFOLIO (the Portfolio)
FORM OF SCHEDULE C: AGENT FOR SECURITIES LENDING TRANSACTIONS
I. Services To Be Performed. United Missouri Bank, N.A. (the Bank) shall
be responsible for administering a program of securities lending from the
Portfolio's portfolio by:
A. Carrying out security loan transactions between approved borrowers and
the Portfolio,
including assisting Custodian in receiving and returning collateral for
loans.
B. Marking to market loans outstanding each day.
C. Ensuring that the value of collateral for loans is 100% or more of
loaned securities at
market price and issuing demands for additional collateral should the
percentage fall
below 100%.
The details of operating standards and procedures to be followed shall be
established from time to time by agreement between the Bank and the
Portfolio and shall be expressed in a procedures manual maintained by the
Bank.
II. Compensation. For the performance of its obligations hereunder, the
Portfolio shall pay the Bank according to the following:
Opening a loan $15
Closing a loan $15
Daily mark to market of collateral $ 5
Fidelity Management & Research Co. (FMR) and the Trust on behalf of the
Portfolio have entered into a management contract pursuant to which FMR has
agreed to pay certain enumerated expenses. FMR hereby agrees with the Bank
to pay all compensation set forth in paragraph II of this Schedule C and,
so long as the management contract remains in effect, the Bank agrees with
the Portfolio to look exclusively to FMR for payment of the fees and
expenses set forth in paragraph II of this Schedule C.
FIDELITY MANAGEMENT & RESEARCH COMAPNY

By: /s/J. Gary Burkhead
Name: J. Gary Burkhead
Title: President
UNITED MISSOURI BANK, N.A.

By: /s/Patricia A. Peterson
Name: Patricia A. Peterson
Title: Sr. Vice President
FIDELITY NEW YORK MUNICIPAL TRUST on behalf of
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

By: /s/Gary L. French
Name: Gary L. French
Title: Treasurer

EXHIBIT 11
CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the incorporation by reference in the Prospectuses and
Statements of Additional Information constituting parts of this
Post-Effective Amendment No. 30 to the Registration Statement on Form N-1A
(the "Registration Statement") of Fidelity New York Municipal Trust of our
reports dated March 3, 1994 and March 4, 1994, relating to the financial
statements and financial highlights appearing in the January 31, 1994
Annual Reports to Shareholders of Fidelity New York Tax-Free Portfolios and
Spartan New York Municipal Portfolios, respectively, which are incorporated
by reference in such Registration Statement. We further consent to the
references to us under the headings "Auditor" in the Statements of
Additional Information and "Financial Highlights" in the Prospectuses.
/s/ Price Waterhouse
Price Waterhouse
Boston, Massachusetts
March 15, 1994