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
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 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.
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 5.63% 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
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
SPARTAN NEW YORK MUNICIPAL 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), 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.
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
FEBRUARY 3,
1990
(COMMENCEME
NT
OF OPERATIONS)
YEARS ENDED JANUARY 31, 1994 1993 1992 TO
JANUARY 31,
1991
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>
* 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 MUNICIPAL 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, 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)
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.
SPARTAN NEW YORK MUNICIPAL 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 59.8 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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Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
INVESTMENT ADVISER
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
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
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
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
