FIDELITY NEW YORK MUNICIPAL TRUST, N-30D, 1994-09-29

FIDELITY NEW YORK MUNICIPAL TRUST
N-30D, 1994-09-29

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FIDELITY

(registered trademark)
NEW YORK
TAX-FREE
PORTFOLIOS

SEMIANNUAL REPORT
JULY 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING
STRATEGIES

NEW YORK TAX-FREE
HIGH YIELD PORTFOLIO 4 PERFORMANCE

7 FUND TALK: THE MANAGER'S OVERVI
EW

10 INVESTMENT CHANGES

11 INVESTMENTS

18 FINANCIAL STATEMENTS

NEW YORK TAX-FREE
INSURED PORTFOLIO 22 PERFORMANCE

25 FUND TALK: THE MANAGER'S OVERVI
EW

28 INVESTMENT CHANGES

29 INVESTMENTS

35 FINANCIAL STATEMENTS

NEW YORK TAX-FREE
MONEY MARKET PORTFOLIO 39 PERFORMANCE

41 FUND TALK: THE MANAGER'S OVERVI
EW

43 INVESTMENT CHANGES

44 INVESTMENTS

50 FINANCIAL STATEMENTS

NOTES 54 NOTES TO THE FINANCIAL STATEMENTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
The first half of the year has been an
unsettling time for bond investors. The bond market declined after the
Federal Reserve Board raised short-term interest rates from February
through May. These rate hikes caused bond yields to rise and bond prices to
fall. The board raised the rate again in August, and while nobody knows
whether rates will continue to go up, this may be a good time to review the
effect rising rates have on your bond fund investment, and consider how
well your current bond fund holdings match your investment goals.
Most investors choose bond funds to generate income and to help diversify
their investment portfolios. Despite the recent market downturn, bond
mutual funds can still satisfy these needs. Where investors have felt the
negative effect of rising rates is in the market value of their investment,
which has eroded as bond prices have fallen. It's important to remember,
however, that this loss in principal is only "on paper" until you sell your
shares. That's why your investing time horizon is key.
If your time horizon is short - one year or less - you may want to consider
shifting all or part of your bond fund investment into short-term
investments.
If you don't need your money within the next year, staying in your bond
fund may be the appropriate strategy for you. The longer your investing
time frame, the better your chances of retaining your principal investment
through periods of rising AND falling rates. For example, if you plan to
use your money in one to two years, a short-term bond fund may be the right
choice. If your time frame is two to four years, a fund with an
intermediate length average maturity may be best. If you have a longer-term
goal - say a child's college education that's 10 years away - you may be
willing to ride out the bond market's peaks and valleys in exchange for the
higher potential returns of a longer-term fund.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up
a regular investment plan using the Fidelity Automatic Account BuilderSM.
Periodic investment plans do not, of course, assure a profit, nor do they
protect against a loss in a declining market.
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO

INVESTMENT CHANGES

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

Transportation 27.2 21.2

Lease Revenue 13.1 13.5

General Obligation 12.8 15.5

Special Tax 9.5 9.6

Water & Sewer 7.3 4.9

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

Years 19.9 20.0

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 JULY 31, 1994
6 MONTHS AGO

Years 9.7 9.1

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 ABOUT 5%.
QUALITY DIVERSIFICATION AS OF JULY 31, 1994
(MOODY'S RATINGS) % OF FUND'S INVESTMENTS

Aaa 7.6%
Aa, A 41.3%
Baa 44.5%
Non-rated 1.0%
Short-term investments 5.6%
Row: 1, Col: 1, Value: 7.6
Row: 1, Col: 2, Value: 41.3
Row: 1, Col: 3, Value: 44.5
Row: 1, Col: 4, Value: 2.0
Row: 1, Col: 5, Value: 5.6
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Norman Lind,
Portfolio Manager of Fidelity
New York Tax-Free High Yield
Portfolio
Q. NORM, HOW HAS THE FUND PERFORMED?
A. It has been a difficult period for both the municipal bond market and
the fund. For the six months ended July 31, 1994, the fund had a total
return of -5.38%. That compares to the average New York municipal bond
fund, which returned -4.92% for the same period, according to Lipper
Analytical Services. For the 12 months ended July 31, 1994, the fund
returned 0.26%, compared to the average fund's return of 0.40%, again
according to Lipper.
Q. WHAT ACCOUNTS FOR THE MUNICIPAL BOND MARKET'S PERFORMANCE OVER THE PAST
SIX MONTHS?
A. On February 4, the Federal Reserve Board, acting on evidence that the
economy had grown at a fairly strong pace in the fourth quarter of 1993,
raised the federal funds rate - the rate banks charge each other for
overnight loans - by a quarter of a percentage point to 3.25%. At that
time, there wasn't any solid evidence that this growth was causing higher
inflation. Despite that, investors greeted the rate hike negatively. They
were concerned that the Fed was seeing some inflationary pressures they
weren't, and feared further interest rate hikes. That's exactly what
happened. The Fed moved three more times through May, raising the federal
funds rate to 4.25%. Most of the market's and the fund's losses came in
February and March, when selling was at its peak. By July, the market
bounced back slightly based on some evidence that the economy's growth rate
was slowing.
Q. WHY DID THE FUND UNDER-PERFORM THE AVERAGE NEW YORK FUND?
A. The primary reason was that the fund had a longer duration during much
of the period than many of its competitors. Duration is a measure of the
fund's volatility when interest rates move up or down. The longer the
duration, the more sensitive the fund is to interest rate changes. As a
result, when rates rose, the fund's share price fell more than many of its
competitors. However, my view is that long-term interest rates should
remain flat or even fall from current levels, and having a longer duration
will be best in that kind of environment. So, to generally help reduce the
fund's volatility, I've used bond-futures contracts.
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. AREN'T FUTURES ONE
OF THE FINANCIAL ARRANGEMENTS KNOWN AS A DERIVATIVE, AND DO YOU USE OTHERS?
A. Yes, a futures contract is one type of financial derivative - meaning
its market value is derived from a security or market index. We've used
futures and options in our municipal bond funds for years. More recently,
I've used what's known as an inverse floater - whose yield rises as
short-term rates fall, and vice versa. Inverse floaters act like very
long-term bonds, effectively increasing a fund's duration, which is good in
a falling interest rate environment, but can hurt the fund when interest
rates rise. That's exactly what happened recently. During the past six
months, inverse floaters made up less than 5% of the fund's total
investments. By using these various derivatives, I achieve increased
flexibility in managing the fund's overall sensitivity to changes in
interest rates, and hopefully, can achieve higher levels of income.
Q. WERE THERE ANY SPECIFIC TYPES OF BONDS THAT DIDN'T FARE VERY WELL DURING
THE PAST SIX MONTHS?
A. Resource recovery bonds, which were mostly issued to help build and fund
garbage burning plants, were hurt by the threat of increased competition.
In the spring, the Supreme Court ruled that municipalities could no longer
force garbage producers to use resource recovery plants, instead of
landfills, for waste disposal. However, I've concentrated mainly on the
bonds of resource recovery plants located in areas that would find it
prohibitively expensive to ship garbage to landfills. They shouldn't be
negatively affected by the ruling.
Q. WHAT WERE SOME OF THE BRIGHT SPOTS FOR THE FUND?
A. The fund's state-appropriated bonds did relatively well. These bonds
rely on annual appropriations by the state legislature to meet all or part
of their principal and interest payments. When the state experienced some
trouble a couple of years ago, those bonds were downgraded. As the New York
economy has continued to show signs of improvement and the state has made
progress on debt reform, investors seem to have been expecting these bonds
to get upgraded, and their value has generally risen. New York City bonds
were another bright spot. During the past six months, I increased the
fund's stake in these bonds at a time when supply was heavy and prices were
relatively attractive. I sold some once supply had tightened and prices had
risen, locking in the out-performance.
Q. WHAT SHOULD WE EXPECT OVER THE NEXT SEVERAL MONTHS?
A. In the short-term, the bond market could be volatile. That's because
investors will continue to try to decipher every economic statistic,
attempting to determine what it means for the economy and how the Federal
Reserve might react. But I believe that once clear and sustainable trends
emerge, the market will become more settled. In my view, there is some
evidence that higher interest rates have slowed the economy in the second
quarter. Housing, jobs, retail sales and consumer spending have all shown
signs of slowing in the second quarter from a fairly healthy first quarter
pace. I believe that for the next year or so, economic growth will be
moderate and inflation won't be a problem. So, I'll continue to keep the
fund positioned to take advantage of a flat to declining interest rate
environment and use futures to help protect against any short-term
volatility as market conditions warrant.

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: July 10, 1984
SIZE: as of July 31, 1994,
more than $431 million
MANAGER: Norm 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; joined
Fidelity in 1986
(checkmark)

NORM LIND'S OUTLOOK FOR THE
MUNICIPAL MARKET:
"We're beginning to see signs
that higher interest rates are
actually slowing the economy.
In my view, we're heading into
a period of relative economic
stability, with the growth rate
moderating over the next six
to 18 months. If that happens,
and inflation stays in check,
as it is now, I believe the
municipal market can perform
better than it has recently.
Under those conditions,
long-term interest rates could
inch back down as investors
adjust to the new
environment. One thing
investors hate is uncertainty,
which is what we've had
recently. But if investors
become more confident, they
could return to the market.
Right now, on an after-tax
basis, municipal bonds are a
very attractive fixed-income
alternative. At the same time,
the supply of New York
municipal bonds has dropped
significantly this year from
1993. Stable or falling interest
rates and a reduced supply
could bode well for the
municipal market."
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 and dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

New York Tax-Free High Yield -5.38% 0.26% 42.58% 147.72%

Lehman Brothers Municipal Bond Index -3.80% 1.87% 46.68% 169.84%

Average New York Municipal Bond Fund -4.92% 0.40% 43.97% 151.48%

Consumer Price Index 1.50% 2.77% 19.29% 42.56%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months, one year, five years, or ten years. 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 municipal bond fund, which
reflects the performance of 70 New York 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.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

New York Tax-Free High Yield 0.26% 7.35% 9.50%

Lehman Brothers Municipal Bond Index 1.87% 7.96% 10.44%

Average New York Municipal Bond Fund 0.40% 7.56% 9.64%

Consumer Price Index 2.77% 3.59% 3.61%

11/30/87 14144.39 15231.32
12/31/87 14449.04 15452.32
01/31/88 15098.12 16002.73
02/29/88 15261.70 16171.88
03/31/88 14862.02 15983.48
04/30/88 14921.97 16104.96
05/31/88 14995.92 16058.41
06/30/88 15257.35 16293.35
07/31/88 15358.06 16399.58
08/31/88 15405.67 16414.01
09/30/88 15727.74 16711.10
10/31/88 16095.59 17006.06
11/30/88 15924.78 16850.28
12/31/88 16171.18 17022.66
01/31/89 16363.93 17374.69
02/28/89 16234.16 17176.44
03/31/89 16203.38 17135.39
04/30/89 16683.90 17542.18
05/31/89 16980.17 17906.54
06/30/89 17220.05 18149.71
07/31/89 17374.68 18396.72
08/31/89 17282.65 18216.62
09/30/89 17209.08 18161.97
10/31/89 17304.96 18383.55
11/30/89 17553.67 18705.26
12/31/89 17672.17 18858.64
01/31/90 17574.33 18770.01
02/28/90 17690.34 18937.06
03/31/90 17644.68 18942.74
04/30/90 17454.89 18806.35
05/31/90 17847.75 19216.33
06/30/90 18086.83 19385.43
07/31/90 18389.42 19670.40
08/31/90 18086.35 19385.18
09/30/90 18083.23 19396.81
10/31/90 18189.78 19747.89
11/30/90 18514.74 20144.83
12/31/90 18572.04 20233.46
01/31/91 18824.01 20504.59
02/28/91 18943.22 20682.98
03/31/91 19033.12 20691.25
04/30/91 19303.56 20966.45
05/31/91 19442.24 21153.05
06/30/91 19499.28 21131.90
07/31/91 19805.25 21389.71
08/31/91 20047.50 21672.05
09/30/91 20391.91 21953.79
10/31/91 20601.26 22151.37
11/30/91 20691.54 22213.39
12/31/91 21057.46 22690.98
01/31/92 20875.27 22743.17
02/29/92 20964.54 22749.99
03/31/92 20994.74 22759.09
04/30/92 21195.26 22961.65
05/31/92 21521.09 23232.60
06/30/92 21948.09 23622.91
07/31/92 22629.78 24331.59
08/31/92 22337.90 24093.14
09/30/92 22470.61 24249.75
10/31/92 22120.73 24012.10
11/30/92 22631.36 24441.92
12/31/92 22948.01 24691.22
01/31/93 23230.07 24977.64
02/28/93 24138.28 25881.83
03/31/93 23880.07 25607.49
04/30/93 24121.39 25866.12
05/31/93 24274.80 26010.97
06/30/93 24686.69 26445.36
07/31/93 24708.91 26479.73
08/31/93 25276.70 27030.51
09/30/93 25539.87 27338.66
10/31/93 25560.04 27390.60
11/30/93 25288.14 27149.57
12/31/93 25907.20 27722.42

01/31/94 26181.18 28038.46
02/28/94 25403.27 27312.26
03/31/94 24100.92 26200.65
04/30/94 24296.77 26423.36
05/31/94 24559.91 26653.24
06/30/94 24259.91 26498.65
07/31/94 24772.13 26983.58

$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 July 31, 1994, the value of your investment
would have grown to $24,772 - a 147.72% 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 $26,984 - a 169.84% 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)
TOTAL RETURN COMPONENTS
SIX MONT
HS
ENDED YEARS ENDED JANUARY 31,
JULY 31,

1994 1994 1993 1992 1991 1990

Dividend returns 2.61% 5.78% 6.74% 6.95% 7.11% 7.14%

Capital appreciation
returns -7.99% 6.92% 4.54% 3.95% 0.00% 0.26%

Total returns -5.38% 12.70% 11.28% 10.90% 7.11% 7.40%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED JULY 31, 1994 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.60(cents) 33.48(cents) 68.91(cents)

Annualized dividend rate 5.63% 5.62% 5.46%

30-day annualized yield 5.47% - -

30-day annualized tax-equivalent yield 9.75% - -

</TABLE>

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 $11.72 over
the past month, $12.02 over the past six months and $12.63 over the past
year, you can compare the fund's income over these three 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 43.89% combined effective 1994 federal, state and New York City tax
bracket.
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO

INVESTMENTS JULY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 94.4%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - 76.4%
Babylon Ind. Dev. Agcy. Resource Recovery Rev.
(Odgen Martin Sys. Babylon, Inc. Co.)
Series B, 8.50% 1/1/19 Baa1 $ 2,085,000 $ 2,290,894
Erie County Wtr. Auth. Impt. & Extension
Rev. 3rd Series, 6.10% 12/1/04,
(Escrowed to Maturity) (d) A 2,000,000 2,052,500
Franklin County Ctfs. of Prtn.
(Court House Redev. Proj.)
8.125% 8/1/06 BBB 880,000 980,100
Hempstead Town Ind. Dev. Agcy. Resource
Recovery Rev. (American Rfdg. Fuel Co.)
7.40% 12/1/10 Baa1 6,525,000 6,843,094
Metropolitan Trans. Auth. Svc. Contract:
Series O, 5.75% 7/1/13 Baa1 2,630,000 2,443,875
(Commuter Facs.):
Series O, 5.75% 7/1/13 Baa1 1,675,000 1,574,500
Series 3, 7.375% 7/1/08 Baa1 4,400,000 4,911,500
(Trans. Facs.) Series O, 5.50% 7/1/17 Baa1 10,855,000 9,810,206
New York City Gen. Oblig.:
5.625% 8/1/07 Baa1 3,500,000 3,281,250
Rfdg.:
Series B, 5.75% 8/15/14 Baa1 1,500,000 1,374,375
Series C:
5.40% 10/1/06 Baa1 5,045,000 4,647,706
5.50% 10/1/15 Baa1 1,500,000 1,318,125
Series D, 5.60% 8/15/05 Baa1 2,000,000 1,910,000
Series E:
5.40% 8/1/04 Baa1 2,375,000 2,250,313
5.625% 8/1/13 Baa1 2,000,000 1,805,000
Series G, 5.40% 8/1/04 Baa1 2,000,000 1,915,000
New York City Health Hosp. Corp. 7.962%
2/15/11 (AMBAC Insured) INFL (c) Aaa 5,000,000 4,518,750
New York City Hsg. Dev. Corp. Mtg. Rev.
(Multi-Family Hsg.) Series A,
8.125% 1/1/19 (GNMA Coll.) AA 4,225,000 4,515,469
New York City Ind. Dev. Agcy. Civic Facs.
Rev. (Rockefeller Foundation Proj.)
5.25% 7/1/13 Aaa 2,250,000 2,061,563
New York City Muni. Wtr. Fin. Auth.
Wtr. & Swr. Sys. Rev.:
7% 6/15/16 (FGIC Insured) Aaa 500,000 561,250
Series A:
7.40% 6/15/04 A 1,250,000 1,414,063
7.375% 6/15/09 A 3,850,000 4,302,375
5.50% 6/15/20 A 11,040,000 9,880,800
New York State Dorm. Auth. Rev.:
Rfdg. (Dept. of Health) 5.50% 7/1/20 Baa1 2,500,000 2,203,125
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev.: - continued
Rfdg. (New York City Univ. Sys.):
Series 1988 D, 8.20% 7/1/12 Baa1 $ 1,260,000 $ 1,433,250
Series C, 8.20% 7/1/14 Baa1 1,000,000 1,137,500
Series D, 5.75% 7/1/12 Baa1 4,230,000 3,965,625
7.625% 7/1/14 Baa1 1,500,000 1,620,000
Rfdg. (New York State Univ. Edl. Facs.):
Series A, 5.25% 5/15/15 Baa1 6,500,000 5,671,250
Series B, 7.375% 5/15/14 Baa1 275,000 297,688
Series B, 5% 5/15/18 Baa1 8,000,000 6,580,000
(Columbia Univ.) Series A, 4.75% 7/1/14 Aaa 6,790,000 5,652,675
(Court Facs. Lease) Series A:
5.375% 5/15/16 Baa1 5,000,000 4,325,000
5.25% 5/15/21 Baa1 14,000,000 11,655,000
(Crouse Irving Mem. Hosp.) 10.50%
7/1/17 (HIB Insured) A 750,000 782,813
(Judicial Facs. Lease) Series B, 7% 4/15/16 Baa1 2,000,000 2,100,000
(New York City Univ. Sys. Consolidated):
Series A, 5.75% 7/1/13 Baa1 5,850,000 5,462,438
Series D, 7% 7/1/09 Baa1 5,000,000 5,381,250
(New York City Univ. Sys.) Series R:
10.75% 7/1/03 Baa1 500,000 510,000
10.875% 7/1/14 Baa1 250,000 255,000
(New York City Univ.):
5.20% 7/1/05 (FGIC Insured) Aaa 2,810,000 2,753,800
Series F, 5% 7/1/20 Baa1 1,400,000 1,135,750
Series U, 6.375% 7/1/08 Baa1 1,900,000 1,938,000
New York State Envir. Facs. Corp. Poll. Cont. Rev.
(State Wtr. Revolving Fund):
Rfdg., 5.75% 6/15/09 Aa 2,500,000 2,453,125
(City Proj.) Series A, 7% 6/15/12 Aa 3,000,000 3,232,500
Pooled Loan B, 5.20% 5/15/14 Aa 2,220,000 1,981,350
New York State Gen. Oblig., Series H,
7.607% 6/1/07 INFL (c) Aa 5,000,000 4,075,000
New York State Hsg. Fin. Agcy. Rev.
(St. John Village Proj.)
Section 8, 8.25% 5/1/09 A 5,765,000 5,887,506
New York State Local Govt. Assistance Corp.:
Rfdg., Series C:
5.50% 4/1/17 A 12,500,000 11,359,375
5% 4/1/21 A 9,000,000 7,436,250
Rfdg., Series E, 5.25 4/1/16 A 4,500,000 3,965,625
RIB 7.329% 4/1/21 INFL (c) A 3,200,000 2,552,000
Series A, 5.25% 4/1/19 A 5,000,000 4,312,500
5.50% 4/1/23 A 13,000,000 11,537,500
New York State Med. Care Facs. Fin. Agcy. Rev.:
Rfdg. (Good Samaritan Hosp. Proj.)
Series A, 8% 11/1/13 A 3,500,000 3,801,875
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Med. Care Facs.
Fin. Agcy. Rev. - continued
Rfdg. (Insured Mtg.) (Presbyterian Hosp.)
Series A, 5.25% 8/15/14 Aa $ 3,000,000 $ 2,658,750
(Hosp. & Nursing Mtg.) (Mt. Sinai Hosp.)
Series 1992 C, 5.75% 8/15/19,
(FHA Guaranteed) AAA 2,000,000 1,862,500
(Insured Hosp. & Nursing Home Mtg.):
(Albany Med. Ctr./Alice Hyde Proj.)
Series A, 8% 2/15/28,
(FHA Guaranteed) Aa 3,000,000 3,307,500
(Richmond Mem. Hosp.) Series B,
9.125% 2/15/25 (FHA Guaranteed) AA 3,260,000 3,418,925
(Long-Term Health Care) 6.50%
11/1/15 (Cap. Guaranty Insured) Aaa 1,750,000 1,804,688
(Nursing Home Insured Mtg.) Series B,
10.50% 1/15/24 (FHA Guaranteed) A- 1,000,000 1,020,000
(St. Francis Hosp. Proj.) Series A,
7.625% 11/1/21 (FGIC Insured) Aaa 1,500,000 1,661,250
8.875% 8/15/07 Baa1 4,225,000 4,710,875
7.875% 8/15/20 Baa1 1,210,000 1,350,663
7.50% 2/15/21 Baa1 135,000 147,488
New York State Pwr. Auth. & Gen. Purp.
Rev. Rfdg., Series CC:
5% 1/1/14 Aa 7,500,000 6,487,500
5.25% 1/1/18 Aa 5,000,000 4,387,500
New York State Thruway Auth. Gen. Rev.:
Series A, 5.75% 1/1/12 A1 4,000,000 3,825,000
Series A, 5.75% 1/1/19 A1 6,500,000 6,126,250
Series B, 5% 1/1/20 (MBIA Insured) Aaa 6,100,000 5,146,875
New York State Thruway Auth. Svc.
Contract Rev. (Local Hwy. & Bridge):
4.90% 4/1/01 Baa1 5,365,000 5,204,050
7.25% 1/1/10 Baa1 7,500,000 7,921,875
5.25% 4/1/13 Baa1 4,500,000 3,909,375
New York State Urban Dev. Corp. Rev.:
(Clarkson Ctr. Loan Proj.) 7.80% 1/1/20 Baa1 4,100,000 4,504,875
(Onondaga County Convention Proj.):
7.875% 1/1/10 Baa1 3,000,000 3,326,250
7.875% 1/1/20 Baa1 2,250,000 2,494,688
Oswego County Pub. Impt. Unltd. Tax:
6.70% 6/15/10 A 1,100,000 1,178,375
6.70% 6/15/11 A 1,100,000 1,181,125
6.70% 6/15/12 A 1,100,000 1,183,875
Suffolk County Wtr. Auth. 6% 6/1/17,
(MBIA Insured) Aaa 4,000,000 3,990,000
Suffolk County Wtr. Auth. Wtrwks. Rev.
5% 6/1/17 (MBIA Insured) Aaa 2,000,000 1,725,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Syracuse Ind. Dev. Agcy. Civic Facs. Rev.
(St. Joseph's Hosp. Health Ctr. Proj.)
7.50% 6/1/18 Baa1 $ 1,265,000 $ 1,334,575
Syracuse Ind. Dev. Agcy. Parking Facs. Rev.
(Syracuse Econ. Dev. Corp.)
Series 1990 A, 7.70% 6/1/15 A 2,445,000 2,781,188
Tonawanda Hsg. Dev. Corp. 1st Lien Rev.
(Tonawanda Tower Proj.) Section 8:
10% 5/1/06 - 105,000 103,163
10% 5/1/07 - 130,000 127,238
10% 5/1/08 - 310,000 301,087
10% 5/1/09 - 340,000 327,250
10% 5/1/10 - 375,000 358,125
10% 5/1/11 - 410,000 387,962
10% 5/1/12 - 315,000 294,131
Triborough Bridge & Tunnel Auth. Rev.:
Rfdg. (Gen. Purp.):
Series Q, 5% 1/1/17 Aa 3,820,000 3,270,875
Series Y:
5.50% 1/1/17 Aa 9,095,000 8,424,244
6.125% 1/1/21 Aa 6,500,000 6,524,375
(Convention Ctr. Proj.) Series E:
7.25% 1/1/10 Baa1 2,000,000 2,220,000
6% 1/1/11 Baa1 2,500,000 2,453,125
(Gen. Purp.) Series A, 4.75% 1/1/19 Aa 14,375,000 11,679,687
Watervliet Hsg. Auth. Rev., Section 8:
8% 11/15/00 - 95,000 97,612
8% 11/15/01 - 95,000 97,375
8% 11/15/02 - 100,000 102,250
8% 11/15/03 - 100,000 102,125
8% 11/15/04 - 95,000 96,781
8% 11/15/05 - 95,000 96,900
8% 11/15/06 - 100,000 102,125
8% 11/15/07 - 100,000 101,875
8% 11/15/08 - 100,000 102,000
8% 11/15/09 - 100,000 102,000
330,240,798
NEW YORK & NEW JERSEY - 5.6%
New York & New Jersey Port Auth.:
Rfdg., Consolidated 86th Series
5.20% 7/1/11 A1 2,910,000 2,669,925
Consolidated 85th Series:
5.20% 9/1/15 A1 3,800,000 3,424,750
5.20% 9/1/16 A1 2,000,000 1,797,500
5.375% 3/1/28 A1 18,525,000 16,533,562
24,425,737
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
PUERTO RICO - 11.4%
Puerto Rico Commonwealth Aqueduct & Swr.
Auth. Rev., Series A, 7.875% 7/1/17 Baa $ 1,675,000 $ 1,804,812
Puerto Rico Commonwealth Gen. Oblig.
5% 7/1/21 Baa1 13,155,000 11,033,755
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Hwy. Rev., Series W, 5.50%
7/1/15 Baa1 4,250,000 3,894,062
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Rfdg., Series X:
5.50% 7/1/13 Baa1 15,000,000 13,875,000
5% 7/1/22 Baa1 2,500,000 2,068,750
Puerto Rico Commonwealth Urban
Renewal & Hsg. Corp. Rfdg. 7.875%
10/1/04 Baa1 6,270,000 6,998,887
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Rfdg.,
Series M, 8% 7/1/08 Baa1 2,500,000 2,834,375
Puerto Rico Ind., Med. & Envir. Poll. Cont.
Facs. Fin. Auth. Rev. (American Home)
Series A, 5.10% 12/1/18 Aaa 1,250,000 1,107,812
Puerto Rico Pub. Bldgs. Auth. Gtd. Pub.
Ed. & Health Facs. Rfdg., Series M,
5.50% 7/1/21 Baa1 2,400,000 2,139,000
Puerto Rico Pub. Bldgs. Auth. Rev. Rfdg.,
Series L, 5.50% 7/1/21 Baa1 3,000,000 2,696,250
Puerto Rico Tel. Auth. Rev.,
Series N, 5.50% 1/1/13 A 1,000,000 942,500
49,395,203
U.S. VIRGIN ISLANDS - 0.4%
Virgin Islands Pub. Fin. Auth. Rev. Rfdg.,
Series A, 7.25% 10/1/18
(Escrowed to Maturity) (d) - 1,500,000 1,567,500
GUAM - 0.6%
Guam Pwr. Auth. Rev.,
Series A, 5.25% 10/1/13 BBB 2,795,000 2,456,106
TOTAL MUNICIPAL BONDS
(Cost $416,366,516) 408,085,344
MUNICIPAL NOTES (A) - 5.6%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - 5.6%
New York City Hsg. Dev. Corp. Spl. Rev.
(Carnegie Park Proj.) Series 1984 A,
3.55%, LOC Sumitomo Trust & Banking
Ltd., VRDN VMIG 2 $ 4,610,000 $ 4,610,000
New York City Ind. Dev. Agcy. Civic Facs.
Rev. (Nat'l. Audobon Society, Inc. Proj.)
Series 1989, 2.75%,
LOC Swiss Bank, VRDN A-1+ 2,000,000 2,000,000
New York City Trust Cultural Resources Rev.
(Guggenheim Foundation) Series 1990 B,
2.75%, LOC Swiss Bank, VRDN VMIG 1 2,000,000 2,000,000
New York State Dorm. Auth. Rev.
(Cornell Univ.) Series 1990 B, 2.75%,
BPA Morgan Guaranty, VRDN VMIG 1 3,100,000 3,100,000
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev. (Niagara Mohawk Pwr. Proj.)
VRDN:
Series 1985 A, 2.80%,
LOC Toronto-Dominion Bank A-1+ 8,500,000 8,500,000
Series 1987 A, 2.75%,
LOC Toronto-Dominion Bank - 3,400,000 3,400,000
Niagara Falls Bldg. Community Toll Bridge Sys.
Rev., 2.70% (FGIC Insured),
BPA Ind. Bank of Japan, VRDN VMIG 1 500,000 500,000
TOTAL MUNICIPAL NOTES
(Cost $24,110,000) 24,110,000
TOTAL INVESTMENTS - 100%
(Cost $440,476,516) $ 432,195,344

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) Coupon is inversely indexed to a floating interest rate. The price will
be more volatile than the price of a comparable fixed rate security. The
rate shown is the rate at
period end.
(d) Security collateralized by an amount sufficient to pay interest and
principal.
INCOME TAX INFORMATION
At July 31, 1994, the aggregate cost of investment securities for income
tax purposes was $440,673,085. Net unrealized depreciation aggregated
$8,477,741, of which $10,568,424 related to appreciated investment
securities and $19,046,165 related to depreciated investment securities.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 45.5% AAA, AA, A 62.6%
Baa 43.7% BBB 28.8%
Ba 0.0% BB 0.4%
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%. FMR has
determined that unrated debt securities that are lower quality account for
0.4% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a percentage
of total value of investments, is as follows:
Transportation 27.2%
Lease Revenue 13.1
General Obligation 12.8
Others
(individually less than 10%) 46.9
TOTAL 100.0%
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1994 (UNAUDITED)

1.ASSETS 2. 3.

4.Investment in securities, at value (cost $440,476,516) 5. $ 432,195,344
(Notes 1 and 2) - See accompanying schedule

6.Interest receivable 7. 5,308,586

8. 9.TOTAL ASSETS 10. 437,503,930

11.LIABILITIES 12. 13.

14.Payable to custodian bank $ 4,860 15.

16.Payable for investments purchased 4,918,699 17.

18.Payable for fund shares redeemed 52,673 19.

20.Dividends payable 387,660 21.

22.Accrued management fee 145,360 23.

24.Payable for daily variation on futures contracts 10,661 25.

26.Other payables and accrued expenses 63,041 27.

28. 29.TOTAL LIABILITIES 30. 5,582,954

31.32.NET ASSETS 33. $ 431,920,976

34.Net Assets consist of (Note 1): 35. 36.

37.Paid in capital 38. $ 438,188,384

39.Accumulated undistributed net realized gain (loss) on 40. 2,013,764
investments

41.Net unrealized appreciation (depreciation) on 42. (8,281,172)
investments

43.44.NET ASSETS, for 36,478,567 shares outstanding 45. $ 431,920,976

46.47.NET ASSET VALUE, offering price and redemption 48. $11.84

price per share ($431,920,976 (divided by) shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)

49.INTEREST INCOME 50. $ 13,600,242

51.EXPENSES 52. 53.

54.Management fee (Note 4) $ 908,745 55.

56.Transfer agent, accounting and custodian fees 337,271 57.
and expenses (Note 4)

58.Non-interested trustees' compensation 1,341 59.

60.Registration fees 579 61.

62.Audit 26,651

63.Reports to shareholders 7,058 64.

65. 66.TOTAL EXPENSES 67. 1,281,645

68.69.NET INVESTMENT INCOME 70. 12,318,597

71.REALIZED AND UNREALIZED GAIN (LOSS) (NOTES 1 AND 73. 74.
3)
72.Net realized gain (loss) on:

75. Investment securities 2,355,066 76.

77. Futures contracts 763,261 3,118,327

78.Change in net unrealized appreciation (depreciation) 79. (42,216,739)
on investment securities

80.81.NET GAIN (LOSS) 82. (39,098,412)

83.84.NET INCREASE (DECREASE) IN NET ASSETS 85. $ (26,779,815)
RESULTING FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1994 JANUARY 31,
(UNAUDITED) 1994

86.INCREASE (DECREASE) IN NET ASSETS

87.Operations $ 12,318,597 $ 26,055,560
Net investment income

88. Net realized gain (loss) 3,118,327 27,870,628

89. Change in net unrealized appreciation (depreciation) (42,216,739) 2,947,652

90. 91.NET INCREASE (DECREASE) IN NET ASSETS (26,779,815) 56,873,840
RESULTING FROM OPERATIONS

92.Distributions to shareholders: (12,318,597) (26,055,560)
From net investment income

93. From net realized gain (6,308,535) (16,764,682)

94. 95.TOTAL DISTRIBUTIONS (18,627,132) (42,820,242)

96.Share transactions 43,156,738 140,084,459
Net proceeds from sales of shares

97. Reinvestment of distributions 15,195,553 34,810,348

98. Cost of shares redeemed (72,445,178) (143,033,330)

99. Net increase (decrease) in net assets resulting (14,092,887) 31,861,477
from
share transactions

100. (59,499,834) 45,915,075
101.TOTAL INCREASE (DECREASE) IN NET ASSETS

102.NET ASSETS 103. 104.

105. Beginning of period 491,420,810 445,505,735

106. End of period $ 431,920,976 $ 491,420,810

107.OTHER INFORMATION 109. 110.
108.Shares

111. Sold 3,590,958 10,699,056

112. Issued in reinvestment of distributions 1,268,247 2,668,134

113. Redeemed (6,024,391) (10,918,886)

114. Net increase (decrease) (1,165,186) 2,448,304

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
115. SIX MONTHS YEAR NINE MONTHS YEARS ENDED APRIL 30,
ENDED ENDED ENDED
JULY 31, 1994 JANUARY 31, JANUARY 31,

116. (UNAUDITED) 1994 1993 1992 1991 1990

117.SELECTED PER-SHARE DATA

118.Net asset value, beginning of
period $ 13.050 $ 12.660 $ 12.100 $ 11.750 $ 11.370 $ 11.640

119.Income from Investment Operations .335 .714 .580 .773 .789 .806
Net investment income

120. Net realized and unrealized gain
(loss) (1.040) .850 .560 .350 .380 (.270)

121. Total from investment operations (.705) 1.564 1.140 1.123 1.169 .536

122.Less Distributions (.335) (.714) (.580) (.773) (.789) (.806)
From net investment income

123. From net realized gain (.170) (.460) - - - -

124. Total distributions (.505) (1.174) (.580) (.773) (.789) (.806)

125.Net asset value, end of period $ 11.840 $ 13.050 $ 12.660 $ 12.100 $ 11.750 $ 11.370

126.TOTAL RETURN B -5.38% 12.70% 9.60% 9.80% 10.59% 4.62%

127.RATIOS AND SUPPLEMENTAL DATA

128.Net assets, end of period (000 omitted)$ 431,921 $ 491,421 $ 445,506 $ 412,030 $ 386,169 $ 381,276

129.Ratio of expenses to average net assets.58%A .58% .61%A .61% .59% .61%

130.Ratio of net investment income to
average net assets 5.61%A 5.45% 6.08%A 6.52% 6.81% 6.87%

131.Portfolio turnover rate 43%A 70% 45%A 30% 45% 34%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.

FINANCIAL HIGHLIGHTS
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO

INVESTMENT CHANGES

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

Transportation 24.4 22.3

Water & Sewer 17.2 15.2

Lease Revenue 16.5 13.9

Health Care 9.9 10.1

Electric Revenue 8.0 4.9

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

Years 19.5 19.5

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 JULY 31, 1994
6 MONTHS AGO

Years 9.9 8.7

Row: 1, Col: 1, Value: 72.2
Row: 1, Col: 2, Value: 17.4
Row: 1, Col: 3, Value: 7.7
Row: 1, Col: 4, Value: 2.7
Aaa 72.2%
Aa, A 17.4%
Baa 7.7%
Short-term investments 2.7%
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Norman Lind,
Portfolio Manager of Fidelity
New York Tax-Free Insured Portfolio
Q. NORM, HOW HAS THE FUND PERFORMED?
A. It has been a difficult period for both the municipal bond market and
the fund. For the six months ended July 31, 1994, the fund had a total
return of -5.06%. That compares to the average New York insured municipal
bond fund, which returned -4.29% for the same period, according to Lipper
Analytical Services. For the 12 months ended July 31, 1994, the fund
returned 0.24%, compared to the average fund's return of 1.14%, again
according to Lipper.
Q. EVEN THOUGH YOU TOOK THE FUND OVER ON MARCH 1, CAN YOU TELL US WHAT
ACCOUNTS FOR THE MUNICIPAL BOND MARKET'S PERFORMANCE OVER THE PAST SIX
MONTHS?
A. On February 4, the Federal Reserve Board, acting on evidence that the
economy had grown at a fairly strong pace in the fourth quarter of 1993,
raised the federal funds rate - the rate banks charge each other for
overnight loans - by a quarter of a percentage point to 3.25%. At that
time, there wasn't any solid evidence that this growth was causing higher
inflation. Despite that, investors greeted the rate hike negatively. They
were concerned that the Fed was seeing some inflationary pressures they
weren't, and feared further interest rate hikes. That's exactly what
happened. The Fed moved three more times through May, raising the federal
funds rate to 4.25%. Most of the market's and the fund's losses came in
February and March, when selling was at its peak. By July, the market
bounced back slightly based on some evidence that the economy's growth rate
was slowing.
Q. WHY DID THE FUND UNDER-PERFORM THE AVERAGE NEW YORK INSURED FUND?
A. The primary reason was that the fund had a longer duration during much
of the period than many of its competitors. Duration is a measure of the
fund's volatility when interest rates move up or down. The longer the
duration, the more sensitive the fund is to changes in interest rates. As a
result, when rates rose, the fund's share price fell more than many of its
competitors. I used the market's decline in February and March as an
opportunity to buy more bonds - like non-callable bonds - which would help
keep the fund's duration long, at a time when their prices were fairly
attractive. Non-callable bonds can't be prematurely returned to their
issuers. They have a longer duration because they trade to their maturity
date, rather than a shorter call date. When interest rates are flat or
falling, having a long duration can help a fund's performance. But to
generally help reduce the fund's sensitivity to short-term volatility, I've
used bond-futures contracts.
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. AREN'T FUTURES ONE
OF THE FINANCIAL ARRANGEMENTS KNOWN AS A DERIVATIVE, AND DO YOU USE OTHERS?
A. Yes, a futures contract is one type of financial derivative - meaning
its market value is derived from a security or market index. We've used
futures and options in our municipal bond funds for years. More recently,
I've used what's known as an inverse floater - whose yield rises as
short-term rates fall, and vice versa. Inverse floaters act like very
long-term bonds, effectively increasing a fund's duration, which is good in
a falling interest rate environment, but can hurt the fund when interest
rates rise, which is exactly what happened recently. During the past six
months, inverse floaters made up less than 5% of the fund's total
investments. By using these various derivatives, I achieve increased
flexibility in managing the fund's overall sensitivity to changes in
interest rates, and hopefully, can achieve higher levels of income.
Q. WHAT ROLE DO UNINSURED BONDS HAVE IN AN INSURED FUND?
A. They generally help generate additional yield for the fund. However, to
keep the fund's overall credit quality high, I've invested a majority of
the fund in insured bonds, which carry the highest credit rating of Aaa, as
rated by Moody's Investor Services. To boost the fund's income, I focus on
finding uninsured bonds that are high quality and have a strong potential
for appreciating in value. One example is bonds issued by the New York
State Local Government Assistance Corporation, including some of the fund's
largest transportation bonds. Many of these bonds are rated A, and have
been improving in credit quality as the state's economy improved. These
bonds can offer 0.25% more in yield than insured bonds. The fund's stake in
these uninsured bonds has helped it post better-than-average yields during
a period of falling share prices.
Q. WHAT WERE SOME OF THE BRIGHT SPOTS FOR THE FUND?
A. The fund's state-appropriated bonds did relatively well. These bonds
rely on annual appropriations by the state legislature to meet all or part
of their principal and interest payments. When the state experienced some
trouble a couple of years ago, the bonds were downgraded. As the New York
economy has continued to show signs of improvement and the state has made
progress on debt reform, investors seem to have been expecting these bonds
to get upgraded, and their value has generally risen.
Q. WHAT SHOULD WE EXPECT OVER THE NEXT SEVERAL MONTHS?
A. In the short-term, the bond market could be volatile. That's because
investors will continue to try to decipher every economic statistic,
attempting to determine what it means for the economy and how the Federal
Reserve might react. But I believe that once clear and sustainable trends
emerge, the market will become more settled. In my view, there is some
evidence that higher interest rates have slowed the economy in the second
quarter. Housing, jobs, retail sales and consumer spending have all shown
signs of slowing from a fairly healthy first quarter pace. Because of that,
I believe that economic growth will moderate, and inflation won't be a
problem. So, I'll continue to keep the fund positioned to take advantage of
a flat to declining interest rate environment and use futures to help
protect against any short-term volatility as market conditions warrant.

FUND FACTS
GOAL: to provide high current
income exempt from federal,
state and New York City
income taxes by investing
primarily in insured New York
municipal securities
START DATE: October 11, 1985
SIZE: as of July 31, 1994,
more than $353 million
MANAGER: Norm Lind, since
March 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; joined
Fidelity in 1986
(checkmark)

NORM LIND'S OUTLOOK FOR THE
MUNICIPAL MARKET:
"We're beginning to see signs
that higher interest rates are
actually slowing the economy.
In my view, we're heading into
a period of relative economic
stability with the growth rate
moderating over the next six
to 18 months. If that happens,
and inflation stays in check,
as it is now, I believe the
municipal market can perform
better than it has recently.
Under those conditions,
long-term interest rates could
inch back down as investors
adjust to the new
environment. One thing
investors hate is uncertainty,
which is what we've had
recently. But if investors
become more confident, they
could return to the market.
Right now, on an after-tax
basis, municipal bonds are a
very attractive fixed-income
alternative. At the same time,
the supply of New York
municipal bonds has dropped
significantly this year from
1993. Stable or falling interest
rates and a reduced supply
could bode well for the
municipal market. "
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO

PERFORMANCE: THE BOTTOM LINE

New York Tax-Free Insured -5.06% 0.24% 42.80% 101.51%

Lehman Brothers Municipal Bond Index -3.80% 1.87% 46.68% n/a

Average New York Insured
Municipal Bond Fund -4.29% 1.14% 43.24% n/a

Consumer Price Index 1.50% 2.77% 19.29% 37.03%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months, 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
municipal bond fund, which reflects the performance of 12 New York insured
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 (CPI) 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 JULY 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

New York Tax-Free Insured 0.24% 7.38% 8.28%

Lehman Brothers Municipal Bond Index 1.87% 7.96% n/a

Average New York Insured
Municipal Bond Fund 1.14% 7.45% n/a

Consumer Price Index 2.77% 3.59% 3.63%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had achieved that return
by performing at a constant rate each year.
$10,000 OVER LIFE OF FUND
NY Free Insured Muni Municipal Bond Index (SH15)
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 11504.09
03/31/86 11420.78 11507.77
04/30/86 11366.43 11516.52
05/31/86 11126.78 11329.03
06/30/86 11241.32 11437.11
07/31/86 11280.57 11506.53
08/31/86 11775.80 12021.68
09/30/86 11753.07 12051.85
10/31/86 12015.65 12259.99
11/30/86 12225.65 12502.86
12/31/86 12212.12 12468.35
01/31/87 12491.38 12843.77
02/28/87 12576.42 12906.96
03/31/87 12431.06 12770.15
04/30/87 11576.66 12129.34
05/31/87 11442.64 12069.18
06/30/87 11603.31 12423.53
07/31/87 11732.19 12550.25
08/31/87 11775.31 12578.49
09/30/87 11120.23 12114.72
10/31/87 11370.22 12157.61
11/30/87 11628.82 12475.04
12/31/87 11820.04 12656.06
01/31/88 12396.94 13106.87
02/29/88 12487.73 13245.41
03/31/88 12112.04 13091.10
04/30/88 12168.06 13190.59
05/31/88 12186.57 13152.47
06/30/88 12394.33 13344.89
07/31/88 12460.58 13431.90
08/31/88 12492.96 13443.72
09/30/88 12755.41 13687.05
10/31/88 13117.11 13928.63
11/30/88 12907.17 13801.04
12/31/88 13149.63 13942.22
01/31/89 13320.24 14230.55
02/28/89 13155.88 14068.18
03/31/89 13127.71 14034.56
04/30/89 13512.30 14367.74
05/31/89 13800.92 14666.15
06/30/89 13963.89 14865.32
07/31/89 14075.51 15067.64
08/31/89 13943.16 14920.13
09/30/89 13879.49 14875.36
10/31/89 14017.02 15056.84
11/30/89 14275.97 15320.34
12/31/89 14341.75 15445.97
01/31/90 14258.23 15373.37
02/28/90 14374.93 15510.19
03/31/90 14403.47 15514.85
04/30/90 14185.89 15403.14
05/31/90 14559.92 15738.93
06/30/90 14691.46 15877.43
07/31/90 14946.99 16110.83
08/31/90 14698.33 15877.22
09/30/90 14711.15 15886.75
10/31/90 14860.91 16174.30
11/30/90 15162.59 16499.40
12/31/90 15229.85 16572.00
01/31/91 15410.16 16794.06
02/28/91 15533.01 16940.17
03/31/91 15558.77 16946.95
04/30/91 15770.78 17172.34
05/31/91 15924.00 17325.18
06/30/91 15920.12 17307.85
07/31/91 16133.36 17519.01
08/31/91 16377.24 17750.26
09/30/91 16563.79 17981.01
10/31/91 16720.82 18142.84
11/30/91 16760.83 18193.64
12/31/91 17128.33 18584.80
01/31/92 17093.27 18627.55
02/29/92 17129.53 18633.14
03/31/92 17128.23 18640.59
04/30/92 17261.08 18806.49
05/31/92 17535.07 19028.41
06/30/92 17837.11 19348.08
07/31/92 18388.48 19928.53
08/31/92 18151.94 19733.23
09/30/92 18237.08 19861.49
10/31/92 17917.89 19666.85
11/30/92 18363.14 20018.89
12/31/92 18594.27 20223.08
01/31/93 18842.01 20457.67
02/28/93 19640.24 21198.24
03/31/93 19407.51 20973.53
04/30/93 19591.45 21185.37
05/31/93 19696.29 21304.00
06/30/93 20026.49 21659.78
07/31/93 20050.65 21687.94
08/31/93 20500.32 22139.05
09/30/93 20752.14 22391.43
10/31/93 20760.61 22433.98
11/30/93 20533.46 22236.56
12/31/93 20976.18 22705.75
01/31/94 21171.47 22964.60
02/28/94 20532.73 22369.81
03/31/94 19501.71 21459.36
04/30/94 19696.36 21641.77
05/31/94 19930.34 21830.05
06/30/94 19669.26 21703.43
07/31/94 20099.26 22100.61

$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 July 31, 1994, the value of your investment
would have grown to $20,099 - a 100.99% 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 $22,101 - a 121.01% increase.

1994 1994 1993 1992 1991 1990

Dividend returns 2.58% 5.63% 6.28% 6.61% 6.78% 6.67%

Capital appreciation
returns -7.64% 6.73% 3.95% 4.31% 1.30% 0.37%

Total returns -5.06% 12.36% 10.23% 10.92% 8.08% 7.04%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED JULY 31, 1994 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.35(cents) 31.37(cents) 63.82(cents)

Annualized dividend rate 5.61% 5.52% 5.35%

30-day annualized yield 5.33% - -

30-day annualized tax-equivalent yield 9.50% - -

</TABLE>

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 $11.22 over
the past month, $11.46 over the past six months and $11.94 over the past
year, you can compare the fund's income over these three 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 43.89% combined effective 1994 federal, state and New York City tax
bracket.
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO

INVESTMENTS JULY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 97.3%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - 89.9%
Albany County Rfdg. 5% 10/1/12,
(FGIC Insured) Aaa $ 4,500,000 $ 4,044,375
Albany Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys.
Rev. Rfdg., Series A, 5.50% 12/1/22
(FGIC Insured) Aaa 4,750,000 4,447,188
Buffalo Swr. Auth. Rev. Swr. Sys., Series G:
5.25% 7/1/08 (FGIC Insured) Aaa 6,000,000 5,685,000
5% 7/1/12 (FGIC Insured) Aaa 2,400,000 2,157,000
Cherry Valley Springfield Central School Dist.
Unltd. Tax:
7.80% 5/1/14 (MBIA Insured) Aaa 435,000 529,613
7.80% 5/1/15 (MBIA Insured) Aaa 435,000 531,788
7.80% 5/1/16 (MBIA Insured) Aaa 435,000 531,244
7.80% 5/1/17 (MBIA Insured) Aaa 435,000 533,419
7.80% 5/1/18 (MBIA Insured) Aaa 434,000 534,363
Clifton Park Wtr. Auth. Sys. Rev. 5%
10/1/26 (FGIC Insured) Aaa 4,000,000 3,375,000
Erie County Wtr. Auth. Wtr. Rev. Rfdg.
(Fourth Resolution) 0% 12/1/17,
(AMBAC Insured) Aaa 1,210,000 225,363
Metropolitan Trans. Auth. Svc. Contract
Commuter Facs. Rev. Rfdg., Series L,
7.50% 7/1/17 (MBIA Insured) Aaa 4,000,000 4,400,000
Metropolitan Trans. Auth. Trans. Facs. Rev.:
Rfdg., Series M, 5.50% 7/1/11
(FGIC Insured) Aaa 3,750,000 3,576,563
Rfdg., Series N:
0% 7/1/11 (FGIC Insured) Aaa 5,980,000 2,130,375
0% 7/1/12 (FGIC Insured) Aaa 8,700,000 2,892,750
Series J, 5.50% 7/1/22 (FGIC Insured) Aaa 2,500,000 2,275,000
Nassau County Gen. Oblig. Unltd. Tax,
Series N, 6.125% 10/15/11
(AMBAC Insured) Aaa 1,010,000 1,026,413
New York City Gen. Oblig.:
Series C, 7.505% 8/1/03 INFL (c) Baa1 6,600,000 6,781,500
Series E, 5.70% 5/15/04
(AMBAC Insured) Aaa 1,900,000 1,938,000
New York City Muni. Wtr. Fin. Auth.
Wtr. & Swr. Sys. Rev.:
Series A, 5% 6/15/17 (FGIC Insured) Aaa 3,700,000 3,163,500
Series B, 5.375% 6/15/19
(AMBAC Insured) Aaa 2,250,000 2,019,375
Series D, 5.75% 6/15/18
(FGIC Insured) Aaa 9,075,000 8,575,875
New York City Trust Cultural Resource Rev.
Rfdg. (Museum of Modern Art) 5.40%
1/1/12 (AMBAC Insured) Aaa 1,400,000 1,324,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev.:
Rfdg. (Manhattanville) 0% 7/1/10
(MBIA Insured) Aaa $ 2,175,000 $ 837,375
Rfdg. (New York City Univ.) Series B:
8.20% 7/1/13 (AMBAC Insured) Aaa 1,500,000 1,708,125
6% 7/1/14 (Cap. Guaranty Insured) Aaa 3,000,000 3,018,750
Rfdg. (New York State Univ. Edl. Facs.):
Series A:
5.50% 5/15/07 (FGIC Insured) Aaa 6,700,000 6,616,250
5.50% 5/15/09 (AMBAC Insured) Aaa 4,000,000 3,880,000
5% 7/1/11 (MBIA Insured) Aaa 2,000,000 1,797,500
5.50% 5/15/13 Baa1 1,500,000 1,363,125
5.50% 5/15/13 (AMBAC Insured) Aaa 8,500,000 8,064,375
5.25% 5/15/15 Baa1 2,500,000 2,181,250
5.25% 5/15/15 (AMBAC Insured) Aaa 2,500,000 2,293,750
Series B, 5.25% 5/15/11
(FGIC Insured) Aaa 2,950,000 2,761,938
(Children Assoc., Inc.) 7.60% 7/1/18
(MBIA Insured) Aaa 1,500,000 1,653,750
(Consolidated City Univ. Sys.) Series A:
5.75% 7/1/06 (FGIC Insured) Aaa 3,750,000 3,815,625
5.75% 7/1/18 (Cap. Guaranty Insured) Aaa 5,000,000 4,843,750
(Ideal Senior Living Hsg.) 7.625% 8/1/28
(MBIA Insured) (FHA Guaranteed) Aaa 2,000,000 2,217,500
(Mount Sinai Medical School) Series A:
5% 7/1/15 (MBIA Insured) Aaa 3,000,000 2,628,750
5% 7/1/16 (MBIA Insured) Aaa 5,000,000 4,368,750
(New York City Univ.) Series F,
5.25% 7/1/06 (FGIC Insured) Aaa 8,225,000 8,019,375
(New York Univ.) 6% 7/1/15
(FGIC Insured) Aaa 1,500,000 1,498,125
(New York Univ. Law School) 7.625%
7/1/09 (MBIA Insured) (BIG Insured) Aaa 3,090,000 3,449,213
(Society Hosp. Proj.) 9.75% 7/1/15 Baa1 2,000,000 2,075,000
(Union College) 5.75% 7/1/10
(FGIC Insured) Aaa 2,800,000 2,754,500
(Vassar College) 7.25% 7/1/15 Aa 2,400,000 2,655,000
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 2,505,938
New York State Envir. Facs. Corp. Poll.
Cont. Rev. (State Wtr. Revolving Fund):
Series A, 7% 6/15/12 Aa 1,000,000 1,077,500
Series E, 6.875% 6/15/10 Aa 1,000,000 1,053,750
New York State Gen. Oblig.:
7.10% 3/1/10 (AMBAC Insured) Aaa 1,720,000 1,872,650
Unltd. Tax 7.125% 11/15/10 A 2,670,000 2,920,313
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Local Gov't. Assistance Corp.:
Rfdg., Series C:
0% 4/1/14 A $ 10,000,000 $ 2,837,500
5.50% 4/1/17 A 10,000,000 9,087,500
5% 4/1/21 A 4,500,000 3,718,125
RIB 7.329% 4/1/21 INFL (c) A 2,000,000 1,595,000
Series C:
6.50% 4/1/15 A 1,200,000 1,218,000
5.50% 4/1/22 A 2,000,000 1,777,500
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 4,475,000
(Health Insurance Plan Greater New York)
Series B, 8.50% 11/1/15
(AMBAC Insured)
(Pre-Refunded to 11/1/97 @ 100) (d) Aaa 4,555,000 5,084,519
(Long-Term Health Care) Series A, 6.80%
11/1/14 (Cap. Guaranty Insured) Aaa 1,250,000 1,326,563
(Mary Immogene Basset Hosp.)
7.125% 11/1/20 (MBIA Insured) Aaa 2,500,000 2,712,500
(Mental Health Svcs. Facs. Impt.) Series D,
7.40% 2/15/18 Baa1 1,640,000 1,767,100
(Montefiore Med. Ctr.) 7.25% 2/15/24
(MBIA Insured) (FHA Guaranteed) Aaa 2,000,000 2,172,500
(North Shore Univ. Hosp. Mtg. Proj.)
Series A, 7.20% 11/1/20
(MBIA Insured) Aaa 6,000,000 6,622,500
(Security Hosp.) Series A, 7.10% 2/15/27
(MBIA Insured) (BIG Insured) Aaa 2,050,000 2,170,438
(St. Francis Hosp. Proj.) Series A,
7.625% 11/1/21 (FGIC Insured) Aaa 2,000,000 2,215,000
(St. Mary's Private Insured Prog.)
8.375% 11/1/14 (AMBAC Insured) Aaa 9,450,000 10,135,125
New York State Pwr., Series 1993 H,
6.80% 6/1/07 INFL (c) Aa 5,000,000 4,075,000
New York State Pwr. Auth. & Gen. Purp. Rev.
Rfdg., Series CC:
5% 1/1/14 Aa 4,500,000 3,892,500
5.25% 1/1/18 Aa 4,000,000 3,510,000
New York State Tollway Auth. Gen. Rev.,
Series B:
5% 1/1/14 (MBIA Insured) Aaa 4,500,000 3,926,250
5% 1/1/20 (MBIA Insured) Aaa 25,825,000 21,789,844
New York State Urban Dev. Corp. Rev. Rfdg.
(Correctional Facs.) 5.25% 1/1/18
(AMBAC Insured) Aaa 4,980,000 4,444,650
Niagara Falls Bridge Commission Toll Rev.,
Series B, 5.25% 10/1/15 (FGIC Insured) Aaa 14,225,000 12,873,625
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Niagara Frontier Trans. Auth. Arpt. Rev.
(Greater Buffalo Int'l. Arpt.) Series C:
6% 4/1/14 (AMBAC Insured) Aaa $ 1,000,000 $ 997,500
6% 4/1/24 (AMBAC Insured) Aaa 1,500,000 1,475,625
Oyster Bay Rfdg. Unltd. Tax 5.70% 2/15/06
(MBIA Insured) Aaa 1,000,000 1,018,750
Suffolk County Ind. Dev. Agcy. Southwest
Swr. Sys. Rev. 6% 2/1/08
(FGIC Insured) Aaa 2,500,000 2,568,750
Suffolk County Wtr. Auth. 6% 6/1/17,
(MBIA Insured) Aaa 3,500,000 3,491,250
Suffolk County Wtr. Auth. Wtrwks. Rev.:
Rfdg., Series B, 5.625% 6/1/16
(AMBAC Insured) Aaa 2,400,000 2,271,000
Rfdg. (Sr. Lien) 5.10% 6/1/10
(MBIA Insured) Aaa 4,500,000 4,123,124
Rfdg. (Sub. lien) 5.10% 6/1/13
(MBIA Insured) Aaa 2,000,000 1,805,000
7.375% 6/1/12 (AMBAC Insured) Aaa 30,000 32,963
5% 6/1/15 (MBIA Insured) Aaa 2,000,000 1,747,500
5% 6/1/17 (MBIA Insured) Aaa 12,765,000 11,009,813
Triborough Bridge & Tunnel Auth. Rev.:
Rfdg. (Gen. Purp.) Series Y, 5.50%
1/1/17 Aa 9,025,000 8,359,405
Rfdg. (Spl. Oblig.) Series 1991 A,
6.625% 1/1/17 (MBIA Insured) Aaa 4,725,000 4,943,530
(Convention Ctr. Proj.) Series E, 7.25%
1/1/10 Baa1 1,700,000 1,887,000
(Gen. Purp.) Series X, 6.625% 1/1/12 Aa 6,450,000 6,877,312
Triborough Bridge & Tunnel Auth. Spl. Oblig.
Rfdg., Series B:
6.875% 1/1/15 (FGIC Insured) Aaa 500,000 533,124
6.875% 1/1/15 (FGIC Insured) Aaa 2,000,000 2,132,500
315,331,266
NEW YORK & NEW JERSEY - 3.0%
New York & New Jersey Port Auth.:
Consolidated 53rd Series, 8.70%
7/15/20 A1 3,500,000 3,718,750
Consolidated 67th Series, 6.875%
1/1/25 A1 2,500,000 2,640,625
Consolidated 89th Series, 5.125% 10/1/21
(FGIC Insured) Aaa 5,000,000 4,331,250
10,690,625
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
PUERTO RICO - 4.4%
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.:
Rfdg., Series S, 7% 7/1/06 Baa1 $ 2,500,000 $ 2,796,874
7.125% 7/1/14 Baa1 550,000 583,000
7.125% 7/1/14 (Escrowed to Maturity) (d) Baa1 950,000 1,056,874
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Resources
Auth. Pwr. Rev.:
Rfdg., Series N:
7% 7/1/07 Baa1 2,150,000 2,313,937
7.125% 7/1/14 Baa1 685,000 726,955
7.125% 7/1/14
(Escrowed to Maturity) (d) Baa1 1,180,000 1,315,700
Series P, 7% 7/1/21 Baa1 2,080,000 2,212,600
Puerto Rico Tel. Auth. Rev. 5.70% 1/1/03
(AMBAC Insured) INFL (c) Aaa 5,000,000 4,400,000
15,405,940
TOTAL MUNICIPAL BONDS
(Cost $345,507,659) 341,427,831
MUNICIPAL NOTES (A) - 2.7%

NEW YORK - 2.7%
New York City Muni. Wtr. Fin. Auth.
Wtr. & Swr. Sys. Rev., Series 94C, 2.75%
(FGIC Insured), VRDN - 500,000 500,000
New York City Trust Cultural Resources Rev.
(Guggenheim Foundation) Series 1990 B,
2.75%, LOC Swiss Bank, VRDN VMIG 1 1,400,000 1,400,000
New York State Dorm. Auth. Rev.
(Cornell Univ.) Series 1990 B, 2.75%,
BPA Morgan Guaranty, VRDN VMIG 1 1,400,000 1,400,000
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev. (Niagra Mohawk Proj.)
Series 1985 A, 2.80%, LOC Long-Term Cr.
Bank of Japan, VRDN A-1+ 5,500,000 5,500,000
Niagara Falls Bridge Commission Toll Bldg.
Sys. Rev., 2.70% (FGIC Insured), VRDN VMIG 1 600,000 600,000
TOTAL MUNICIPAL NOTES
(Cost $9,400,000) 9,400,000
TOTAL INVESTMENTS - 100%
(Cost $354,907,659) $ 350,827,831

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) Coupon is inversely indexed to a floating interest rate. The price will
be more volatile than the price of a comparable fixed rate security. The
rate shown is the rate at
period end.
(d) Security collateralized by an amount sufficient to pay interest and
principal.
INCOME TAX INFORMATION
At July 31, 1994, the aggregate cost of investment securities for income
tax purposes was $354,907,659. Net unrealized depreciation aggregated
$4,079,828, of which $8,974,779 related to appreciated investment
securities and $13,054,607 related to depreciated investment securities.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 89.6% AAA, AA, A 94.7%
Baa 7.7% BBB 2.6%
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 24.4%
Water & Sewer 17.2
Lease Revenue 16.5
Others
(individually less than 10%) 41.9
TOTAL 100.0%
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

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JULY 31, 1994 (UNAUDITED)

132.ASSETS 133. 134.

135.Investment in securities, at value (cost 136. $ 350,827,831
$354,907,659) (Notes 1 and 2) - See accompanying
schedule

137.Interest receivable 138. 3,770,961

139. 140.TOTAL ASSETS 141. 354,598,792

142.LIABILITIES 143. 144.

145.Payable to custodian bank $ 29,911 146.

147.Payable for fund shares redeemed 461,692 148.

149.Dividends payable 468,633 150.

151.Accrued management fee 119,701 152.

153.Payable for daily variation on futures contracts 9,476 154.

155.Other payables and accrued expenses 68,958 156.

157. 158.TOTAL LIABILITIES 159. 1,158,371

160.161.NET ASSETS 162. $ 353,440,421

163.Net Assets consist of (Note 1): 164. 165.

166.Paid in capital 167. $ 352,627,502

168.Accumulated undistributed net realized gain (loss) 169. 4,892,747
on investments

170.Net unrealized appreciation (depreciation) on 171. (4,079,828)
investments

172.173.NET ASSETS, for 31,206,315 shares 174. $ 353,440,421
outstanding

175.176.NET ASSET VALUE, offering price and 177. $11.33
redemption price per share ($353,440,421 (divided by)
shares)

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STATEMENT OF OPERATIONS

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SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)

178.179.INTEREST INCOME 180. $ 11,113,364

181.EXPENSES 182. 183.

184.Management fee (Note 4) $ 758,645 185.

186.Transfer agent, accounting and custodian fees 284,508 187.
and expenses (Note 4)

188.Non-interested trustees' compensation 1,124 189.

190.Audit 19,298 191.

192.Legal 290 193.

194.Reports to shareholders 11,387

195.Miscellaneous 1,749 196.

197. 198.TOTAL EXPENSES 199. 1,077,001

200.201.NET INTEREST INCOME 202. 10,036,363

203.REALIZED AND UNREALIZED GAIN (LOSS) (NOTES 1 205. 206.
AND 3)
204.Net realized gain (loss) on:

207. Investment securities 4,998,271 208.

209. Futures contracts 784,550 5,782,821

210.Change in net unrealized appreciation 211. 212.
(depreciation) on:

213. Investment securities (37,299,620) 214.

215. Futures contracts 39,649 (37,259,971)

216.217.NET GAIN (LOSS) 218. (31,477,150)

219.220.NET INCREASE (DECREASE) IN NET ASSETS 221. $ (21,440,787)
RESULTING FROM OPERATIONS

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STATEMENT OF CHANGES IN NET ASSETS

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SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1994 JANUARY 31,
(UNAUDITED) 1994

222.INCREASE (DECREASE) IN NET ASSETS

223.Operations $ 10,036,363 $ 20,986,597
Net interest income

224. Net realized gain (loss) 5,782,821 16,060,906

225. Change in net unrealized appreciation (depreciation) (37,259,971) 8,371,146

226. (21,440,787) 45,418,649
227.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS

228.Distributions to shareholders: (10,036,363) (20,986,597)
From net interest income

229. From net realized gain (993,496) (10,212,037)

230. 231.TOTAL DISTRIBUTIONS (11,029,859) (31,198,634)

232.Share transactions 32,991,871 111,811,958
Net proceeds from sales of shares

233. Reinvestment of distributions 8,565,615 24,514,581

234. Cost of shares redeemed (70,275,196) (95,222,561)

235. (28,717,710) 41,103,978
Net increase (decrease) in net assets resulting from
share transactions

236. (61,188,356) 55,323,993
237.TOTAL INCREASE (DECREASE) IN NET ASSETS

238.NET ASSETS 239. 240.

241. Beginning of period 414,628,777 359,304,784

242. End of period $ 353,440,421 $ 414,628,777

243.OTHER INFORMATION 245. 246.
244.Shares

247. Sold 2,872,199 9,106,343

248. Issued in reinvestment of distributions 753,172 1,996,632

249. Redeemed (6,138,134) (7,748,391)

250. Net increase (decrease) (2,512,763) 3,354,584

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251. SIX MONTHS YEAR NINE MONTHS YEARS ENDED APRIL 30,
ENDED ENDED ENDED
JULY 31, 1994 JANUARY 31, JANUARY 31,

252. (UNAUDITED) 1994 1993 1992 1991 1990

253.SELECTED PER-SHARE DATA

254.Net asset value, beginning of period $ 12.300 $ 11.830 $ 11.320 $ 10.990 $ 10.540 $ 10.710

255.Income from Investment Operations .314 .648 .509 .684 .696 .701
Net interest income

256. Net realized and unrealized gain (loss)(.940) .780 .510 .330 .450 (.170)

257. Total from investment operations (.626) 1.428 1.019 1.014 1.146 .531

258.Less Distributions (.314) (.648) (.509) (.684) (.696) (.701)
From net interest income

259. From net realized gain (.030) (.310) - - - -

260. Total distributions (.344) (.958) (.509) (.684) (.696) (.701)

261.Net asset value, end of period $ 11.330 $ 12.300 $ 11.830 $ 11.320 $ 10.990 $ 10.540

262.TOTAL RETURN B -5.06% 12.36% 9.16% 9.45% 11.17% 4.99%

263.RATIOS AND SUPPLEMENTAL DATA

264.Net assets, end of period (000 omitted) $ 353,440 $ 414,629 $ 359,305 $ 309,300 $ 246,842 $ 206,416

265.Ratio of expenses to average net assets .59%A .58% .61% .62% .64% .65%
A

266.Ratio of net interest income to average
net assets 5.48%A 5.31% 5.73% 6.17% 6.45% 6.47%
A

267.Portfolio turnover rate 48%A 48% 39% 17% 33% 18%
A

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A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.

FINANCIAL HIGHLIGHTS
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

An Interview with Janice Bradburn, Portfolio Manager of Fidelity
New York Tax-Free Money Market
Portfolio

Q. JAN, AFTER SEVERAL YEARS OF RELATIVE STABILITY, WE'VE SEEN A LOT OF
ACTIVITY LATELY IN THE MONEY MARKETS. CAN YOU BRING US UP TO DATE?
A. Sure. The watershed was the decision by the Federal Reserve to raise the
federal funds rate - the rate banks charge each other for overnight loans -
one quarter of a percentage point on February 4, 1994. The Fed was
responding to increased economic activity and heightened concerns about
inflation. Later, the Fed tacked on successive quarter-point increases in
March and April, followed by a half-point increase in May to 4.25%. Since
then, rates have been stable through the period.
Q. DID TAX-FREE INTEREST RATES RISE WITH THE TIDE?
A. Not as quickly as you might expect. In the municipal market, technical
factors often play as big a role in the movement of interest rates as the
Fed's monetary policy does. That was certainly the case in New York, where
demand outpaced supply and interest rates on some issues actually fell
following the Fed's move. Variable rate demand notes were affected most by
the surge in demand. Investors seek out VRDNs when interest rates are
rising because the rate they pay adjusts weekly with prevailing rates.
Later, though, as supply entered the market in the spring, tax-free rates
rose; they've since moved roughly in tandem with taxable rates.
Q. WHAT WAS YOUR STRATEGY IN AN UNSTABLE MARKET?
A. The fund's average maturity was around 65 days at the beginning of the
period. Once interest rates began to rise, I let the average maturity of
the fund roll down by adding more VRDNs and commercial paper, which in this
context refers to securities issued by municipalities to finance capital or
operating needs. Allowing the fund's average maturity to roll down gave me
more flexibility to respond to rising rates. The fund has since settled in
around 50 days, which I consider neutral.
Q. HOW DID THE FUND PERFORM?
A. On July 31, 1994, the fund's seven-day yield was 2.30%, up from 1.82%
six months ago. The latest yield is the equivalent of a 4.10% yield on a
taxable investment for New York City investors in the combined 43.89%
federal, state and New York City tax bracket. The fund's total return for
the six months ended on July 31 was 0.99%. During the same period, the
average New York tax-free money market fund had a total return of 0.93%,
according to IBC/Donoghue. I was able to beat the average by successfully
managing the fund's average maturity in a rising-rate environment.
Q. WHAT'S THE OUTLOOK?
A. I'm taking a cautious approach. With short-term rates likely to continue
rising, now is not the time to aggressively extend the fund's maturity.
Instead, I'll probably maintain a large percentage of VRDNs - currently
over 50% - and look for select opportunities to invest in longer-term
issues as conditions warrant. The fund's average maturity was around a
neutral 50 days at the end of the period, and I'll stay close to that in
the months ahead.

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 July 31, 1994,
over $664 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; joined
Fidelity in 1989
(checkmark)

MONEY MARKETS AND
DERIVATIVES:
The word "derivatives" covers
a wide range of financial
agreements, of varying
degrees of complexity, that
have market values based on
security or market indices. All
"derivative" securities in
Fidelity's money market funds
are designed to have the price
characteristics of typical
money market securities.
During the recent Federal
Reserve Board interest rate
increases, all Fidelity money
market holdings performed as
designed and the funds
maintained a stable share
price of $1.00.
The more complex of these
instruments, such as floating
rate notes with unusual and
complex floating rate
formulas, frequently have too
much price volatility to be
appropriate investments for
money market funds. Many of
them do not offer the degree
of price stability Fidelity
believes is required in order
for its funds to maintain a
stable $1.00 share price.
Therefore, despite their
frequent higher yields at the
time they are sold, Fidelity
money market funds have not
purchased these volatile
securities. While this may
sometimes have caused
Fidelity money market funds
to have lower gross yields
than certain other funds,
Fidelity believes its investors
value prudence as well as
performance.
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO

INVESTMENT CHANGES

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

0 - 30 63 60 62

31 - 90 20 16 14

91 - 180 12 12 8

181 - 397 5 12 16

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

Fidelity New York Tax-Free
Money Market Portfolio 48 days 64 days 68 days

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

ASSET ALLOCATION
AS OF JULY 31, 1994 AS OF JANUARY 31, 1994

Row: 1, Col: 1, Value: 52.1
Row: 1, Col: 2, Value: 15.5
Row: 1, Col: 3, Value: 8.5
Row: 1, Col: 4, Value: 20.3
Row: 1, Col: 5, Value: 3.6
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
Variable rate
demand notes
(VRDNs) 52%
Commercial
paper 16%
Tender bonds 8%
Municipal
notes 20%
Other 4%
Variable rate
demand notes
(VRDNs) 47%
Commercial
paper 10%
Tender bonds 12%
Municipal
notes 28%
Other 3%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
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 would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

New York Tax-Free Money Market 0.99% 1.96% 17.79% 48.03%

Consumer Price Index 1.50% 2.77% 19.29% 42.56%

Average New York
Tax-Free Money Market Fund 0.93% 1.84% 17.60% n/a

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months, one year, five years or ten years. 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 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 37 New York tax-free
money market funds tracked by IBC/Donoghue.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

New York Tax-Free Money Market 1.96% 3.33% 4.00%

Consumer Price Index 2.77% 3.59% 3.61%

Average New York
Tax-Free Money Market Fund 1.84% 3.30% n/a

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7/31/93 10/31/93 1/31/94 4/30/94 7/31/94

New York Tax-Free 1.93% 1.96% 1.82% 2.30% 2.30%
Money Market

Average New York 1.86% 1.85% 1.67% 2.18% 2.18%
Tax-Free Money Market
Fund

New York Tax-Free 3.44% 3.49% 3.24% 4.10% 4.10%
Money Market Tax-equivalen
t

Average All Taxable 2.65% 2.66% 2.68% 3.15% 3.83%
Money Market Fund

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Row: 1, Col: 1, Value: 1.93
Row: 1, Col: 2, Value: 1.86
Row: 2, Col: 1, Value: 1.96
Row: 2, Col: 2, Value: 1.85
Row: 3, Col: 1, Value: 1.82
Row: 3, Col: 2, Value: 1.67
Row: 4, Col: 1, Value: 2.3
Row: 4, Col: 2, Value: 2.18
Row: 5, Col: 1, Value: 2.3
Row: 5, Col: 2, Value: 2.18
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 43.89%.
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

INVESTMENTS JULY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 94.3%
Albany County Ind. Dev. Auth. Ind. Dev. Rev.
(Campus Plaza 7 Inc. Proj.) 3.25%,
LOC Marine Midland Bank, VRDN (b) $ 1,130,000 $ 1,130,000
Albany County Rfdg. Bonds (Southmall Construction)
Series B, 3.50% 10/1/94 (FGIC Insured) 11,235,000 11,245,028
Amsterdam Ind. Dev. Agcy. Ind. Dev. Rev.
(Longview Fiber Co.) Series 1987, 2.85%,
LOC Algemene Bank, VRDN 1,880,000 1,880,000
Babylon BAN 3% 9/21/94 12,500,000 12,508,579
Battery Park City Auth. Participating VRDN, Series C,
3.70% (Liquidity Facility Sumitomo Bank Ltd.) (c) 26,300,000 26,300,000
Brewster Central School Dist. TAN 3.55% 10/27/94 1,700,000 1,700,447
Broome County BAN 3.75% 4/20/95 8,300,000 8,330,564
Chautauqua County Ind. Dev. Agcy. Rev., VRDN:
(Greater Buffalo Press, Inc. Proj.) Series 1984, 3.15%,
LOC Sakura Bank Ltd 5,000,000 5,000,000
(Red Wing Co. Proj.) Series 1985, 3.15%,
LOC Bankers Trust 3,500,000 3,500,000
Chemung County Ind. Dev. Agcy. Rev.,
(McWayne Inc. Proj.) Series 1992 A, 2.95%,
LOC Amsouth Bank, VRDN 3,000,000 3,000,000
Columbia County Ind. Dev. Auth. Ind. Dev. Rev.
(Philip Morris Proj.) 2.90%, VRDN 1,800,000 1,800,000
Commack Union Free School Dist. TAN:
4.25% 6/30/95 4,700,000 4,713,194
4.50% 6/30/95 1,000,000 1,004,830
4.75% 6/30/95 1,000,000 1,007,115
Deer Park Union Free School Dist. TAN 4.25%
6/28/95 2,800,000 2,812,238
Erie County Ind. Dev. Agcy. Ind. Dev. Rev., VRDN:
(Nat'l. Wire Products) Series 1988 E, 3.25%,
LOC Marine Midland Bank (b) 435,000 435,000
(Niagra Envelope Co. Proj.) 3.25%,
LOC Marine Midland Bank 2,500,000 2,500,000
(Uniland Dev./Buffalo Campus-B) 3.25%,
LOC Marine Midland Bank (b) 1,465,000 1,465,000
Erie County Wtr. Auth. Waterworks Sys. Rev.,
Series 93 A, 2.60% (AMBAC Insured),
BPA Ind. Bank of Japan Ltd., VRDN 1,000,000 1,000,000
Garden City BAN 3% 12/22/94 3,600,000 3,600,000
Guilderland Central School Dist. TAN 3.15%
10/21/94 3,500,000 3,502,055
Guilderland Ind. Dev. Agcy. Rev. (Northeastern Ind. Park)
Series 93 A, 2.75%, LOC Chemical Bank, VRDN 1,200,000 1,200,000
Hempstead BAN, Series D, 3.25% 8/19/94 2,000,000 2,000,410
Irvington Union Free School Dist. TAN 3.50%
10/19/94 1,600,000 1,602,311
Islip Gen. Oblig. BAN 3.40% 8/24/94 2,475,000 2,475,605
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Islip Ind. Dev. Auth. Rev., VRDN:
(Brentwood Dist. Corp. Facs. Proj.) Series 1984,
3.125%, LOC Bankers Trust $ 2,000,000 $ 2,000,000
(Magu Realty/Creative Bath Proj.) Series 1992,
2.95%, LOC Chemical Bank (b) 5,330,000 5,330,000
Jefferson County Ind. Dev. Auth. Ind. Dev. Rev.
(Watertown-Carthage Television Corp.) Series 1982,
2.80%, LOC First Nat'l. Bank of Chicago, VRDN 3,300,000 3,300,000
Lakeland Central School Dist. TAN 3.45% 10/28/94 2,500,000 2,501,183
Monroe County BAN 3.75% 10/7/94 10,500,000 10,515,223
Monroe County Ind. Dev. Auth. Ind. Agcy. Rev.
(Advent Tool & Mold) Series 1990, 3.25%,
LOC Marine Midland Bank, VRDN (b) 1,260,000 1,260,000
Nassau County Bonds 5.875% 10/1/94
(AMBAC Insured) 5,000,000 5,024,715
Nassau County Gen. Impt. Bonds, Series M,
4.90% 8/1/94 (FGIC Insured) 2,685,000 2,685,000
Nassau County Ind. Dev. Auth. Ind. Dev. Rev.
(Cr/PL, Inc. Proj.) Series 1985, 3.20%,
LOC First Nat'l. Bank of Chicago, VRDN 3,930,000 3,930,000
New York City Gen. Oblig. Participating VRDN,
Series 1994 C-3, 2.85% (Liquidity Facility Citibank) (c) 17,000,000
17,000,000
New York City Hsg. Dev. Corp. Mtg. Rev., VRDN:
(Columbus Green Proj.):
Series 1985 A, 3.55%,
LOC Sumitomo Trust & Banking Ltd. 1,900,000 1,900,000
Series 1993 A, 2.75%, LOC Citibank 4,200,000 4,200,000
(James Twr. Proj.) Series 94 A, 2.60%, LOC Citibank 5,400,000 5,400,000
(Parkgate Tower) Series 1985, 2.60%, LOC Citibank 8,225,000 8,225,000
(York Ave. Proj.) Series 1994 A, 2.85%,
LOC Chemical Bank 11,000,000 11,000,000
New York City Hsg. Dev. Corp. Spl. Rev., VRDN:
(Carnegie Park Proj.) Series 1984 A, 3.55%,
LOC Sumitomo Trust & Banking Ltd. 13,000,000 13,000,000
(Montefiore Med. Ctr. Proj.) Series 1993 A, 2.75%,
LOC Chemical Bank 8,400,000 8,400,000
(Related-East 96th St. Proj.) Series 1990 A, 2.60%,
LOC Mitsubishi Bank Ltd. 2,800,000 2,800,000
New York City Ind. Dev. Agcy. Facs. Rev.
(Church of the Heavenly Rest Day School Proj.)
Series 91, 2.75%, LOC Barclays Bank PLC, VRDN 6,610,000 6,610,000
New York City Ind. Dev. Agcy. Ind. Dev. Rev.
(Nippon Cargo Airlines Co.) Series 1992, 2.95%,
LOC Ind. Bank of Japan Ltd., VRDN (b) 3,000,000 3,000,000
New York City Metro. Trans. Auth. Participating VRDN,
Series GS-1993 B, 2.95% (Liquidity Facility Hong Kong &
Shanghai Banking Corp.) (AMBAC & FGIC Insured) 20,000,000 20,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys.
BAN 3.75% 12/15/94 $ 37,400,000 $ 37,520,874
New York City Participating VRDN, Series BS-1992-A28,
3.05% (Liquidity Facility Sakura Bank)
(AMBAC Insured) (c) 5,000,000 5,000,000
New York City Wtr. Fin. Auth.
Participating VRDN, Series V, 2.90%
(Liquidity Facility Bankers Trust) (c) 5,100,000 5,100,000
New York State Dorm. Auth. Participating VRDN (c):
Series BT-26, 3.05% (Liquidity Facility Bankers
Trust Co.) (MBIA Insured) 5,375,000 5,375,000
Series PA-60, 2.95% (Liquidity Facility Merrill Lynch) 2,500,000
2,500,000
New York State Dorm. Auth. Rev. Bonds
(Memorial Sloan-Kettering Cancer Ctr.):
Series 1989 A:
2.85% tender 8/2/94, LOC Fuji Bank Ltd. 5,400,000 5,400,000
2.55% tender 8/15/94, LOC Fuji Bank Ltd. 3,460,000 3,460,000
2.70% tender 9/9/94, LOC Fuji Bank Ltd. 4,000,000 4,000,000
Series 1989 B:
2.50% tender 8/16/94, LOC Fuji Bank Ltd. 6,050,000 6,050,000
2.85% tender 9/12/94, LOC Fuji Bank Ltd. 6,450,000 6,450,000
Series 1989 C, 2.55% tender 8/15/94,
LOC Fuji Bank Ltd. 3,100,000 3,100,000
Series 1989 D:
2.85% tender 8/2/94, LOC Fuji Bank Ltd. 2,000,000 2,000,000
2.85% tender 9/12/94, LOC Fuji Bank Ltd. 7,800,000 7,800,000
New York State Dorm. Auth. Rev. (Pooled Short-Term Notes)
Series 1987 A, 3.15% 8/3/94,
LOC Tokai Bank Ltd., CP 2,744,000 2,744,000
New York State Dorm. Auth. Tender Option Ctfs. (c):
Series DD-1, 2.95% (Liquidity Facility Kredietbank NV)
(MBIA Insured), VRDN 18,000,000 18,000,000
Series DD-2, 2.95% (Liquidity Facility Kredietbank NV)
(MBIA Insured), VRDN 2,500,000 2,500,000
New York State Energy Research & Dev. Auth. (c):
Participating VRDN, Series 943202, 2.85%
(Liquidity Facility Citibank) (MBIA Insured) 15,400,000 15,400,000
Bonds, Series 943206, 2.40% tender 8/1/94
(Liquidity Facility Citibank) (FGIC Insured) 8,000,000 8,000,000
New York State Energy Research & Dev. Auth. Elec. Rev.
Bonds (Long Island Lighting Co.) Series 93, 2.85%
tender 11/1/94, LOC Toronto-Dominion Bank 5,500,000 5,500,000
New York State Energy Research & Dev. Auth. Elec.
Rev. (Long Island Lighting Co.) Series 93 A, 2.95%,
LOC Toronto-Dominion Bank, VRDN 16,700,000 16,700,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Energy Research & Dev. Auth. Poll.
Cont. Rev. Bonds (New York State Elec. & Gas Corp.):
Rfdg., Series 94 C, 2.95% tender 12/15/94,
LOC Morgan Guaranty $ 9,500,000 $ 9,500,000
Series 1984 A, 2.80% tender 12/1/94,
LOC Union Bank of Switzerland 6,200,000 6,200,000
Series 1985 D, 2.75% tender 12/1/94,
LOC Union Bank of Switzerland 2,000,000 2,000,979
Series B, 2.85% tender 10/15/94,
LOC Union Bank of Switzerland 4,000,000 3,999,869
New York State Environmental Facs. Corp. Solid Wst.
Disp. Rev. Rfdg. Bonds (General Elec. Proj.)
Series 1992 A, 3.05% tender 10/20/94 (b) 4,300,000 4,300,000
New York State Gen. Oblig., CP:
Series O:
2.65% 8/8/94 9,000,000 9,000,000
2.60% 8/16/94 2,000,000 2,000,000
2.65% 9/8/94 1,400,000 1,400,000
3% 10/12/94 2,000,000 2,000,000
Series P:
2.65% 9/12/94 2,200,000 2,200,000
2.95% 10/12/94 4,400,000 4,400,000
New York State Hsg. Fin. Agcy. Hsg. Rev., VRDN:
(Normandie Court I Proj.) Series 1991 A, 2.75%,
LOC Societe Generale 9,800,000 9,800,000
(Normandie Court II Proj.) Series 1987 A, 2.80%,
LOC Bankers Trust 11,700,000 11,700,000
New York State Hsg. Fin. Agcy. Rev.
(Memorial Sloan-Kettering Cancer Ctr.)
Series 1985 A, 2.75%, VRDN 2,500,000 2,500,000
New York State Job Dev. Auth. State Gtd., VRDN:
Series 1984 C, 2.50%, LOC Sumitomo Bank Ltd. 600,000 600,000
Series 1984 G-1 to G-55, 2.50%,
LOC Sumitomo Bank Ltd. 1,010,000 1,010,000
Series C, 2.35%, LOC Sumitomo Bank Ltd. 1,140,000 1,140,000
New York State Local Gov't. Assistance Corp. Rev.,
Series 1993 A, 2.80%, LOC Union Bank of
Switzerland, Credit Suisse, Swiss Bank Corp., VRDN 1,000,000 1,000,000
New York State Med. Care Facs. Fin. Agcy.
Participating VRDN (c):
Series GS-93 G, 2.95% (Liquidity Facility
Hong Kong & Shanghai Banking Corp.) 7,800,000 7,800,000
Series PA-61, 2.95% (Liquidity Facility Merrill Lynch) 3,000,000
3,000,000
Series PA-72, 2.95% (Liquidity Facility Merrill Lynch) 4,125,000
4,125,000
New York State Med. Care Facs. Fin. Agcy. Rev.
(Lenox Hill Hosp. Proj.) Series A, 2.75%,
LOC Chemical Bank, VRDN 5,300,000 5,300,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Mtg. Agcy. Homeowner Mtg. Rev. :
Bonds (b):
Series 40 B, 3.15% tender 9/29/94 $ 7,500,000 $ 7,500,000
Series 40 C, 3.30% tender 12/1/94 7,000,000 7,000,000
Participating VRDN (c):
Series PT-15A, 3.10%
(Liquidity Facility Dai-Ichi Kangyo Bank Ltd.) 6,880,000 6,880,000
Series PT-15B, 3.10%
(Liquidity Facility Dai-Ichi Kangyo Bank Ltd.) 4,300,000 4,300,000
Series PT-26, 3.10% (Liquidity Facility Credit Suisse) 3,300,000
3,300,000
New York State Pwr. Auth. Rev. & Gen. Purp. Bonds
2.75% tender 9/1/94 9,800,000 9,800,000
New York State Pwr. Auth. Rev. & Gen. Purp. Rev.
3.05% 10/12/94, CP 14,000,000 14,000,000
Niagra Falls Bldg. Community Toll Bridge Sys. Rev., 2.70%
(FGIC Insured) BPA Ind. Bank of Japan Ltd., VRDN 1,200,000 1,200,000
North Salem TAN 3.25% 10/12/94 1,000,000 1,000,579
Oceanside Union Free School Dist. TAN 4.50% 6/29/95 3,300,000 3,319,376
Onondaga County Ind. Dev. Auth. Ind. Dev. Rev.
(Pass & Seymour, Inc. Proj.) Series 1985 B, 2.20%,
LOC Bank Nat'l. de Paris, VRDN 3,600,000 3,600,000
Oswego BAN 3.10% 1/26/95 4,000,000 4,006,631
Oswego County Ind. Dev. Agcy. Poll. Cont. Rev. Rfdg.
(Phillip Morris Co. Proj.) 2.90%, VRDN 5,000,000 5,000,000
Oyster Bay BAN 3% 11/18/94 3,000,000 3,003,381
Rochester Bonds, Series A, 4.70% 8/15/94
(FGIC Insured) 2,000,000 2,001,451
Suffolk County Ind. Dev. Agcy. Civic Facs. Rev.
(Child Dev. Ctr. Inc.) Series 89, 2.85%,
LOC Barclays Bank PLC, VRDN 2,000,000 2,000,000
Suffolk County Public Impt. Unltd. Tax Bonds,
Series A, 5% 10/15/94 (AMBAC Insured) 1,655,000 1,662,273
Suffolk County TAN, Series II, 3% 9/15/94,
LOC Chemical Bank 12,000,000 12,002,157
Three Village Central School Dist. TAN 4.50% 6/30/95 8,200,000 8,247,023
Tompkins County BAN 3.125% 9/29/94 5,480,000 5,482,788
Triborough Bridge & Tunnel Auth. Spl. Oblig. Rev.,
Series 94, 2.75% (FGIC Insured), VRDN 10,000,000 10,000,000
Triborough Bridge & Tunnel Participating VRDN,
Series CR-133, 2.60% (Liquidity Facility Citibank)
(MBIA Insured) (c) 6,205,000 6,205,000
Wyoming County Ind. Dev. Auth. Ind. Dev. Rev.
(American Precision) Series 1988 A, 3.25%,
LOC Marine Midland Bank, VRDN (b) 820,000 820,000
Yorktown Central Union Free School Dist. TAN
3.75% 2/21/95 2,000,000 2,003,992
625,703,870
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - 5.7%
New York & New Jersey Port Auth., CP:
Series A (b):
2.75% 8/17/94 $ 4,500,000 $ 4,500,000
2.50% 8/18/94 2,315,000 2,315,000
2.75% 8/18/94 1,870,000 1,870,000
2.10% 8/19/94 2,505,000 2,505,000
Series B, 2.70% 8/23/94 1,780,000 1,780,000
New York & New Jersey Port Auth. Bonds, Series 82,
3.60% 8/1/94 1,300,000 1,300,000
New York & New Jersey Port Auth. Rev., Variable Rate
Master Note Agreement, Series 1992, 3%, VRDN 9,700,000 9,700,000
New York & New Jersey Port Auth. Spl. Proj. Rev.
(KIAC Partners Proj.) Series 3, 2.85%,
LOC Deutsche Bank, VRDN (b) 14,000,000 14,000,000
37,970,000
TOTAL INVESTMENTS - 100% $ 663,673,870
Total Cost for Income Tax Purposes $ 663,673,361

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
FRDN - Floating Rate Demand Notes
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
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 $78,700 of which $22,700 and $56,000 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>
JULY 31, 1994 (UNAUDITED)

268.ASSETS 269. 270.

271.Investment in securities, at value (Note 1) - See 272. $ 663,673,870
accompanying schedule

273.Cash 274. 2,564,121

275.Receivable for investments sold 276. 5,015,760

277.Interest receivable 278. 4,174,630

279. 280.TOTAL ASSETS 281. 675,428,381

282.LIABILITIES 283. 284.

285.Payable for investments purchased $ 10,000,753 286.

287.Dividends payable 58,570 288.

289.Accrued management fee 230,317 290.

291.Other payables and accrued expenses 152,149 292.

293. 294.TOTAL LIABILITIES 295. 10,441,789

296.297.NET ASSETS 298. $ 664,986,592

299.Net Assets consist of (Note 1): 300. 301.

302.Paid in capital 303. $ 665,086,179

304.Accumulated net realized gain (loss) on 305. (100,095)
investments

306.Unrealized gain from accretion of market discount 307. 508

308.309.NET ASSETS, for 664,920,936 shares 310. $ 664,986,592
outstanding

311.312.NET ASSET VALUE, offering price and 313. $1.00
redemption price per share ($664,986,592 (divided by)
shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)

314.315.INTEREST INCOME 316. $ 8,612,182

317.EXPENSES 318. 319.

320.Management fee (Note 4) $ 1,368,034 321.

322.Transfer agent, accounting and custodian fees and 623,203 323.
expenses (Note 4)

324.Non-interested trustees' compensation 3,607 325.

326.Audit 17,549 327.

328.Legal 2,190 329.

330.Reports to shareholders 13

331.Miscellaneous 6,466 332.

333. 334.TOTAL EXPENSES 335. 2,021,062

336.337.NET INTEREST INCOME 338. 6,591,120

339.REALIZED AND UNREALIZED GAIN (LOSS) (NOTE 1) 341. (20,820)
340.Net realized gain (loss) on investment securities

342.Increase (decrease) in net unrealized gain from 343. 317
accretion
of market discount

344.345.NET GAIN (LOSS) 346. (20,503)

347.348.NET INCREASE IN NET ASSETS RESULTING FROM 349. $ 6,570,617
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1994 JANUARY 31,
(UNAUDITED) 1994

350.INCREASE (DECREASE) IN NET ASSETS

351.Operations $ 6,591,120 $ 10,319,209
Net interest income

352. Net realized gain (loss) (20,820) (56,608)

353. Increase (decrease) in net unrealized gain from 317 (7,630)
accretion of market discount

354. 6,570,617 10,254,971
355.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS

356.Dividends to shareholders from net interest income (6,591,120) (10,319,209)

357.Share transactions at net asset value of $1.00 per 755,191,027 1,205,036,436
share
Proceeds from sales of shares

358. Reinvestment of dividends from net interest 6,276,720 9,664,118
income

359. Cost of shares redeemed (704,904,294) (1,171,811,206)

360. 56,563,453 42,889,348
Net increase (decrease) in net assets and shares
resulting from share transactions

361. 56,542,950 42,825,110
362.TOTAL INCREASE (DECREASE) IN NET ASSETS

363.NET ASSETS 364. 365.

366. Beginning of period 608,443,642 565,618,532

367. End of period $ 664,986,592 $ 608,443,642

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
368. SIX MONTHS YEAR NINE MONTHS YEARS ENDED APRIL 30,
ENDED ENDED ENDED
JULY 31, 1994 JANUARY 31, JANUARY 31,

369. (UNAUDITED) 1994 1993 1992 1991 1990

370.SELECTED PER-SHARE DATA

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

372.Income from Investment Operations .010 .018 .017 .034 .046 .052
Net interest income

373.Less Distributions (.010) (.018) (.017) (.034) (.046) (.052)
From net interest income

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

375.TOTAL RETURN B 0.99% 1.84% 1.72% 3.46% 4.74% 5.34%

376.RATIOS AND SUPPLEMENTAL DATA

377.Net assets, end of period (000
omitted) $ 664,987 $ 608,444 $ 565,619 $ 540,374 $ 541,472 $ 622,911

378.Ratio of expenses to average net
assets .61%A .62% .62%A .64% .61% .61%

379.Ratio of net interest income to
average net assets 1.99%A 1.83% 2.26%A 3.39% 4.64% 5.21%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.

FINANCIAL HIGHLIGHTS
NOTES TO FINANCIAL STATEMENTS
For the period ended July 31, 1994 (Unaudited)

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. Each fund is authorized
to issue an unlimited number of shares. The following summarizes the
significant accounting policies of the high yield fund, the insured fund
and the money market fund:
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
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, for the high yield fund, futures and
options transactions. The high yield and insured funds also utilized
earnings and profits distributed to shareholders on redemption of shares as
part of the dividends paid deduction for income tax purposes.
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.
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. Each fund
identifies securities as segregated in its custodial records with a value
at least equal to the amount of the purchase commitment.
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.
3. PURCHASES AND SALES OF
INVESTMENTS.
HIGH YIELD FUND. Purchases and sales of securities, other than short-term
securities, aggregated $90,777,258 and $119,927,727, respectively. The
market value of futures contracts opened and closed amounted to
$339,374,703 and $339,374,703 respectively.
INSURED FUND. Purchases and sales of securities, other than short-term
securities, aggregated $85,086,217 and $122,030,537, respectively. The
market value of futures contracts opened and closed amounted to
$303,747,860 and $306,428,878, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly basic 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 .1325% to .37% for the high yield
and insured funds and .15% to .37% for the money market fund, 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 annual rates of .41% of average net assets.
For the money market fund, effective November 1, 1993, FMR voluntarily
agreed to implement a new group fee rate schedule with rates ranging from
.1325% to .37% as it resulted in the same or a lower management fee. This
group fee rate schedule gave the fund the same effective group fee rate as
the high yield and insured funds. It remained in effect through July 31,
1994.
The Board of Trustees has approved a new group fee rate schedule with rates
ranging from .12% to .37%. Effective August 1, 1994, FMR has voluntarily
agreed to implement this new group fee rate schedule for the high yield,
insured and money market funds as it results in the same or a lower
management fee.
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 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 $1,946, $2,003
and $42,777 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
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 $237,833 and $95,061 for the high yield fund, $201,469 and
$79,451 for the insured fund and $531,656 and $59,524 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 $48,035.
TO WRITE FIDELITY

If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO CALL FIDELITY

FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.

(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
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.
TO VISIT FIDELITY

For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI

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INVESTMENT ADVISER
(registered trademark)
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
Fred L. Henning, Jr., Vice President -
MONEY MARKET FUND
Thomas J. Steffanci, Vice President -
HIGH YIELD AND INSURED FUNDS
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
Leonard M. Rush, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
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Richard J. Flynn*
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GENERAL DISTRIBUTOR
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Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
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Kansas City, MO
and
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CUSTODIAN
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THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
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* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

SPARTAN(registered trademark)

(registered trademark)
NEW YORK
MUNICIPAL
PORTFOLIOS

SEMIANNUAL REPORT
JULY 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING
STRATEGIES

SPARTAN NEW YORK MUNICIPAL
HIGH YIELD PORTFOLIO 4 PERFORMANCE

7 FUND TALK: THE MANAGER'S OVERVI
EW

10 INVESTMENT CHANGES

11 INVESTMENTS

17 FINANCIAL STATEMENTS

SPARTAN NEW YORK
INTERMEDIATE MUNICIPAL
PORTFOLIO 21 PERFORMANCE

23 FUND TALK: THE MANAGER'S OVERVI
EW

26 INVESTMENT CHANGES

27 INVESTMENTS

31 FINANCIAL STATEMENTS

SPARTAN NEW YORK MUNICIPAL
MONEY MARKET PORTFOLIO 35 PERFORMANCE

37 FUND TALK: THE MANAGER'S OVERVI
EW

39 INVESTMENT CHANGES

40 INVESTMENTS

46 FINANCIAL STATEMENTS

NOTES 50 NOTES TO THE FINANCIAL STATEMENTS

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 and
dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Spartan New York Municipal High Yield -5.50% -0.21% 43.82%

Lehman Brothers Municipal Bond Index -3.76% 1.90% n/a

Average New York Tax-Exempt
Municipal Bond Fund -4.92% 0.40% n/a

Consumer Price Index 1.50% 2.77% 16.48%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months, 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 70 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 (CPI) 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 JULY 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan New York Municipal High Yield -0.21% 8.42%

Lehman Brothers Municipal Bond Index 1.90% n/a

Average New York Tax-Exempt
Municipal Bond Fund 0.40% n/a

Consumer Price Index 2.77% 3.45%

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

Spartan New York MuniMunicipal Bond Index (SH15)
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
02/28/94 14713.02 14422.65
03/31/94 13989.26 13835.65
04/30/94 14030.95 13953.25
05/31/94 14169.91 14074.65
06/30/94 13991.07 13993.01
07/31/94 14305.58 14249.09

$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 July 31, 1994, the value of your
investment would have grown to $14,311 -
a 43.11% increase on your initial investment. This assumes you still own
the fund on July 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 $14,249 - a 42.49% increase.

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FEBRUARY 3, 1990
SIX MONT (COMMENCEMENT
HS OF OPERATIONS) TO
ENDED YEARS ENDED JANUARY 31, JANUARY 31,
JULY 31,

1994 1994 1993 1992 1991

</TABLE>

Dividend returns 2.72% 5.91% 6.57% 7.13% 7.51%

Capital appreciation
returns -8.22% 7.20% 5.22% 4.91% -0.12%

Total returns -5.50% 13.11% 11.79% 12.04% 7.39%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED JULY 31, 1994 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.11(cents) 30.30(cents) 61.61(cents)

Annualized dividend rate 5.90% 5.84% 5.62%

30-day annualized yield 5.90% - -

30-day annualized tax-equivalent yield 10.52% - -

</TABLE>

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 $10.19 over
the past month, $10.46 over the past six months and $10.96 over the past
year, you can compare the fund's income over these three 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 43.89% 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

An interview with Norman Lind,
Portfolio Manager of Spartan New
York Municipal High Yield Portfolio
Q. NORM, HOW HAS THE FUND PERFORMED?
A. Both the municipal market and the fund have experienced a difficult six
months. For the six months ended July 31, 1994, the fund had a total return
of -5.50%. That compares to the average New York municipal bond fund, which
returned -4.92% for the same period, according to Lipper Analytical
Services. For the 12 months ended July 31, 1994, the fund returned -0.21%,
compared to the average fund's return of 0.40%, again according to Lipper.
Q. LET'S START WITH THE MUNICIPAL MARKET. WHAT ACCOUNTS FOR IT'S
PERFORMANCE OVER THE PAST SIX MONTHS?
A. On February 4, the Federal Reserve Board, acting on evidence that the
economy had grown at a fairly strong pace in the fourth quarter of 1993,
raised the federal funds rate - the rate banks charge each other for
overnight loans - by a quarter of a percentage point to 3.25%. At that
time, there wasn't any solid evidence that this growth was causing higher
inflation. Despite that, investors reacted negatively. They were concerned
that the Fed was seeing some inflationary pressures they weren't, and
feared further interest rate hikes. That's exactly what happened. The Fed
moved three more times through May, raising the federal funds rate to
4.25%. Most of the market's and the fund's losses came in February and
March, when the selling was at its peak. By July, the market bounced back
slightly based on some evidence that the economy's growth rate was slowing.
Q. TURNING TO THE FUND, WHY DID IT UNDER-PERFORM THE AVERAGE NEW YORK FUND?
A. Mainly because it had a longer duration during much of the period than
many of its competitors. Duration is a measure of the fund's sensitivity to
changes in interest rates. The longer the duration, the more sensitive the
fund is to interest rate changes. The fund's share price fell more than
many of its competitors when rates rose. However, my view is that long-term
interest rates will remain flat or even fall from current levels, and
having a longer duration will be best if that kind of environment evolves.
So, to generally help reduce the fund's volatility, I've used bond futures
contracts.
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. AREN'T FUTURES ONE
OF THE FINANCIAL ARRANGEMENTS KNOWN AS A DERIVATIVE, AND DO YOU USE OTHERS?
A. Yes, a futures contract is one type of financial derivative - meaning
its market value is derived from a security or market index. We've used
futures and options in our municipal bond funds for years. More recently,
I've used what's known as an inverse floater - whose yield rises as
short-term rates fall, and vice versa. Inverse floaters act like very
long-term bonds, effectively increasing a fund's duration, which is good in
a falling interest rate environment, but can hurt the fund when interest
rates rise. That is, of course, exactly what happened. During the past six
months, inverse floaters made up about 5% of the fund's total investments.
By using these various derivatives, I achieve increased flexibility in
managing the fund's overall sensitivity to changes in interest rates, and
hopefully, can achieve higher levels of income.
Q. WERE THERE ANY SPECIFIC TYPES OF BONDS THAT DIDN'T FARE VERY WELL OVER
THE PAST SIX MONTHS?
A. Throughout much of the period, electric utility bonds were hurt because
the rating agencies expressed concern about increased competition among
electricity providers. Bonds issued by the Long Island Lighting Company -
the fund's largest electric utility investment and 4.2% of its total
investments on July 31 - were downgraded and their prices fell during the
early months of the year. I continue to hold these bonds because of their
relatively high current yields. Also, I believe that the Long Island
Lighting Company won't face any competition going forward. On a relative
basis, they have done well recently. Another sector affected by the threat
of increased competition was resource recovery bonds, which were mostly
issued to help build and fund garbage burning plants. In the spring, the
Supreme Court ruled that municipalities could no longer mandate that
garbage producers use resource recovery plants, rather than landfills, for
waste disposal. However, I've concentrated mainly on the bonds of resource
recovery plants located in areas that would find it too expensive to ship
garbage to landfills. They should not be negatively affected by the ruling.
Q. WHAT WERE SOME OF THE BRIGHT SPOTS FOR THE FUND?
A. The fund's state-appropriated bonds, which rely on annual appropriations
by the state legislature to meet all or part of their principal and
interest payments, did relatively well. As the New York economy showed
signs of improvement, and the state made progress on debt reform, investors
seemed to expect these bonds to get upgraded, and their value generally
increased. When the state experienced some trouble a couple of years ago,
those bonds were downgraded to Baa by Moody's Investor Services. New York
City bonds were another bright spot. During the past six months, I
increased the fund's stake in these bonds at a time when supply was heavy
and prices were relatively attractive. I recently sold some of these bonds
once supply had tightened.
Q. WHAT SHOULD WE EXPECT OVER THE NEXT SEVERAL MONTHS?
A. In the short-term, the bond market could be volatile. That's because
investors will continue to try to decipher every economic statistic,
attempting to determine what it means for the economy and how the Federal
Reserve might react. But I believe that if clear and sustainable trends
emerge, the market will become more settled. In my view, there is some
evidence that higher interest rates have slowed the economy in the second
quarter. Housing, jobs, retail sales and consumer spending have all shown
signs of slowing in the second quarter from a fairly healthy first quarter.
I believe that for the next year or so economic growth would be moderate
and inflation shouldn't be a problem. So, I'll continue to keep the fund
positioned to take advantage of a flat to declining interest rate
environment and use futures to help protect against any short-term
volatility as market conditions warrant.

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 July 31, 1994,
more than $361 million
MANAGER: Norm 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;
joined Fidelity in 1986
(checkmark)

NORM LIND'S OUTLOOK FOR THE
MUNICIPAL MARKET:
" We're beginning to see signs
that higher interest rates are
actually slowing the economy.
In my view, we're heading into
a period of relative economic
stability with the growth rate
moderating over the next six
to 18 months. If that happens,
and inflation stays in check,
as it is now, I believe the
municipal market can perform
better than it has recently.
Under those conditions,
long-term interest rates could
inch back down as investors
adjust to the new
environment. One thing
investors hate is uncertainty,
which is what we've had
recently. But if investors
become more confident, they
could return to the market.
Right now, on an after-tax
basis, municipal bonds are a
very attractive fixed income
alternative. At the same time,
the supply of New York
municipal bonds has dropped
significantly this year from
1993. Stable or falling interest
rates and a reduced supply
could bode well for the
municipal market. "
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO

INVESTMENT CHANGES

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

Transportation 25.1 18.4

Lease Revenue 13.5 14.8

Industrial Development 13.0 13.3

General Obligation 12.3 10.3

Special Tax 10.9 12.5

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

Years 22.1 22.5

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 JULY 31, 1994
6 MONTHS AGO

Years 10.6 9.5

Aaa 3.9%
Aa, A 37.0%
Baa 52.4%
Ba or B -
Non-rated 4.1%
Short-term investments 2.6%
Row: 1, Col: 1, Value: 3.9
Row: 1, Col: 2, Value: 37.0
Row: 1, Col: 3, Value: 52.4
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 4.1
Row: 1, Col: 6, Value: 2.6
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO

INVESTMENTS JULY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 97.4%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - 81.0%
Babylon Ind. Dev. Agcy. Resource Recovery Rev.
(Odgen Martin Sys. Babylon, Inc. Co.):
Series A, 8.50% 1/1/19 Baa1 $ 930,000 $ 1,021,837
Series B, 8.50% 1/1/19 Baa1 2,875,000 3,158,906
Clifton Springs Hosp. & Clinic Rev.
Rfdg. & Impt. 8% 1/1/20 - 5,000,000 4,662,500
Franklin County Ctfs. of Prtn. (Court House
Redev. Proj.) 8.125% 8/1/06 BBB 2,120,000 2,361,150
Metropolitan Trans. Auth. Svc. Contract:
(Commuter Facs.) Series O:
5.75% 7/1/13 Baa1 4,790,000 4,502,600
5.50% 7/1/17 Baa1 5,000,000 4,518,750
(Trans. Facs.):
Series L, 7.50% 7/1/17,
(AMBAC Insured) Aaa 1,710,000 1,881,000
Series 7, 0% 7/1/10 Baa1 9,500,000 3,455,625
New York City Gen. Oblig. Series B:
Unltd. Tax 7.50% 2/1/07 Baa1 3,500,000 3,832,500
5.75% 8/15/14 Baa1 4,500,000 4,123,125
New York City Ind. Dev. Agcy. Civic Facs. Rev.:
(O.L.M. Pkg. Corp. Proj.) 8.50%
12/30/22 - 4,250,000 4,234,062
(YMCA of Greater NY Proj.) 8%
8/1/16 - 3,950,000 4,172,187
New York City Ind. Dev. Auth. Spl. Facs. Rev.:
(American Airlines, Inc. Proj.) Series 1990,
8% 7/1/20 (c) Baa3 8,575,000 9,057,344
(Terminal One Group Assoc. Proj.)
6% 1/1/15 A 10,500,000 10,106,250
6% 1/1/19 A 1,000,000 953,750
New York City Muni. Wtr. Fin. Auth.
Wtr. & Swr. Sys. Rev. :
Series A, 5.50% 6/15/20 A 2,000,000 1,790,000
Series 1992 A, 7% 6/15/09 A 1,000,000 1,068,750
New York Health Hosp. Corp. 7.962%
2/15/11, (AMBAC Insured) INFL (e) Aaa 2,500,000 2,259,375
New York State Dorm. Auth. Rev.:
Rfdg. (State Univ. Edl. Facs.):
Series A, 5.25% 5/15/15 Baa1 9,000,000 7,852,500
Series B, 7.50% 5/15/11 Baa1 2,000,000 2,252,500
Series B, 5% 5/15/18 Baa1 4,000,000 3,290,000
Rfdg. (State Univ. of NY)
Series A, 5.875% 5/15/17 Baa1 3,750,000 3,520,313
(City Univ. Sys.):
Series C, 7.50% 7/1/10 Baa1 4,000,000 4,475,000
Series F, 5% 7/1/20 Baa1 8,950,000 7,260,688
(Court Facs. Lease) Series A,
5.25% 5/15/21 Baa1 20,000,000 16,650,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev. - continued
(Iroquois Nursing Home) 7% 2/1/15,
(FHA Guaranteed) AA- $ 1,270,000 $ 1,350,962
(Judicial Facs. Lease) Series B,
7% 4/15/16 Baa1 1,500,000 1,575,000
New York State Energy Research & Dev. Auth.
Elec. Facs. Rev.: (c)
(Consolidated Edison Co., Inc. Proj.):
Series A, 7.75% 1/1/24 Aa3 2,750,000 2,956,250
Series A, 7.50% 7/1/25 Aa3 2,000,000 2,135,000
(Long Island Lighting. Co.):
Series A, 7.15% 9/1/19 Baa3 4,000,000 4,035,000
Series A, 7.15% 6/1/20 Baa3 4,000,000 4,035,000
Series B, 7.15% 9/1/19 Baa3 7,000,000 7,061,250
New York State Energy Research & Dev. Auth.
Gas Facs. Rev. (Brooklyn Union Gas Co.)
RIB: (e)
9.318% 4/1/20 INFL A1 4,500,000 4,573,125
10.628% 7/15/26 INFL A1 3,500,000 3,788,750
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 1,077,500
(Pooled Loan):
Series B, 5.20% 5/15/14 Aa 3,000,000 2,677,500
Series 1990 B, 7.50% 3/15/11 Aa 1,500,000 1,655,625
New York State Envir. Facs. Corp. Resource
Recovery Rev. (Huntington Proj.)
Series A, 7.50% 10/1/12 (c) Baa 15,595,000 16,277,281
New York State Hsg. Fin. Agcy. Rev.:
(Multi-Family Hsg. Secured Mtg. Prog.):
Series A, 7% 8/15/12 Aa 1,000,000 1,036,250
Series A, 7.05% 8/15/24 Aa 1,500,000 1,535,625
(Multi-Family Mtg. Hsg.) Series A,
6.95% 8/15/12 Aa 1,000,000 1,035,000
New York State Hsg. Fin. Agcy. Svs. Contract
Oblig. Rev. Series A, 5.5%
9/15/22 Baa1 2,000,000 1,737,500
New York State Local Gov't. Assistance Corp.:
Rfdg.:
Series C:
5.50% 4/1/17 A 5,275,000 4,793,656
5% 4/1/21 A 1,000,000 826,250
Series E:
6% 4/1/14 A 14,110,000 13,774,888
5.25% 4/1/16 A 7,400,000 6,521,250
RIB 7.329% 4/1/21 INFL (e) A 4,300,000 3,429,250
Series C, 6% 4/1/12 A 1,200,000 1,173,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Med. Care Facs. Fin. Agcy. Rev.:
(Mental Health Svcs. Facs. Impt.)
Series 1991 B, 7.625% 8/15/17 Baa1 $ 1,920,000 $ 2,088,000
7.70% 2/15/18 Baa1 540,000 581,850
7.5% 2/15/21 Baa1 605,000 660,963
New York State Mtg. Agcy. Rev.
(Homeowner Mtg.): (c)
Series HH-3, 7.95% 4/1/22 Aa 2,500,000 2,640,625
Series SS, 7.95% 10/1/22 Aa 2,600,000 2,788,500
New York State Pwr. Series 1993 H,
6.80% 6/1/07 INFL (e) Aa 5,000,000 4,075,000
New York State Pwr. Auth. & Gen. Purp.
Rev. Rfdg. Series CC, 5.25% 1/1/18 Aa 7,000,000 6,142,500
New York State Tollway Auth. Svc. Contract Rev.
(Local Hwy. & Bridge) 7.25% 1/1/10 Baa1 2,500,000 2,640,625
New York State Urban Dev. Corp. Rev.:
Rfdg. (Correctional Facs.) Series A:
5.50% 1/1/09 Baa1 4,000,000 3,700,000
5.50% 1/1/14 Baa1 7,000,000 6,273,750
(Attica Proj.) 7.50% 4/1/20 Baa1 5,000,000 5,456,250
(Syracuse Univ. Ctr. Science & Technology)
7.875% 1/1/17 Baa1 2,000,000 2,170,000
Niagara Frontier Trans. Auth. Arpt. Rev.
(Greater Buffalo Int'l. Arpt. A)
6.25% 4/1/24, (AMBAC Insured) (c) Aaa 3,000,000 3,003,750
Suffolk County Ind. Dev. Agcy. Rev.
(Dowling College) 8.25% 12/1/20 BBB 1,000,000 1,120,000
Suffolk County Wtr. Auth. 6% 6/1/17,
(MBIA Insured) Aaa 3,160,000 3,152,100
Triborough Bridge & Tunnel Auth. Rev.:
Rfdg.:
(Gen. Purp.) Series Y:
5.50% 1/1/17 Aa 10,800,000 10,003,500
6.125% 1/1/21 Aa 8,500,000 8,531,875
(Spl. Oblig.):
Series B, 7.10% 1/1/10 A1 3,000,000 3,262,500
Series 1991 A, 6.625% 1/1/17
(MBIA Insured) Aaa 3,500,000 3,661,875
(Convention Ctr. Proj.) Series E:
7.25% 1/1/10 Baa1 5,670,000 6,293,700
6% 1/1/11 Baa1 1,500,000 1,471,875
(Gen. Purp.):
Series A, 4.75% 1/1/19 Aa 6,000,000 4,875,000
Series X, 6.625% 1/1/12 Aa 3,000,000 3,198,750
289,314,612
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - 5.2%
New York & New Jersey Port Auth.:
Consolidated 67th Series, 6.875%
1/1/25 A1 $ 3,000,000 $ 3,168,750
Consolidated 85th Series:
5.20% 9/1/16 A1 2,000,000 1,797,500
5.20% 9/1/18 A1 1,675,000 1,499,125
5.375% 3/1/28 A1 9,100,000 8,121,750
Consolidated 91st Series 5.20%
11/15/15 A1 4,500,000 4,005,000
18,592,125
PUERTO RICO - 10.8%
Puerto Rico Commonwealth Gen.
Oblig. 5% 7/1/21 Baa1 6,000,000 5,032,500
Puerto Rico Commonwealth Hwy. & Trans. Auth.
Hwy. Rev.:
Rfdg. Series X, 5.25% 7/1/21 Baa1 1,000,000 862,500
Series W:
5.50% 7/1/13 Baa1 3,000,000 2,775,000
5.50% 7/1/15 Baa1 8,500,000 7,788,125
Puerto Rico Commonwealth Rfdg. & Impt.
Unltd. Tax 5.50% 7/1/13 Baa1 8,000,000 7,430,000
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.
Series P, 7% 7/1/21 Baa1 4,750,000 5,052,813
Puerto Rico Infrastructure Fing. Auth.
Spl. Tax Series 1988 A, 7.75%
7/1/08 Baa1 1,500,000 1,629,375
Puerto Rico Ports Auth. Rev.
(Spl. Facs. American Airlines)
Series A, 6.30% 6/1/23 (c) Baa3 5,000,000 4,525,000
Puerto Rico Pub. Bldgs. Auth. Rev. Rfdg.
Series L, 5.50% 7/1/21 Baa1 4,000,000 3,595,000
38,690,313
U.S. VIRGIN ISLANDS - 0.4%
Virgin Islands Pub. Fin. Auth. Rev. Rfdg.
Series A, 7.25% 10/1/18
(Escrowed to Maturity) (d) - 1,500,000 1,567,500
TOTAL MUNICIPAL BONDS
(Cost $355,944,474) 348,164,550
MUNICIPAL NOTES (A) - 2.6%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - 2.6%
Amherst Ind. Dev. Auth. Ind. Dev. Rev.
(Maple Dev. Proj.) Series 1986, 3.25%,
LOC Marine Midland Bank, VRDN (c) - $ 2,330,000 $ 2,330,000
Chautauqua County Indl. Dev. Auth. Rev.
(Bush Industries, Inc. Proj.) Series 84, 3.65%
LOC Marine Midland Bank, VRDN - 1,100,000 1,100,000
New York City Hsg. Dev. Corp. Spl.
(Carnegie Park Proj.) Series 1984 A, 3.55%
LOC Sumitomo Trust & Banking Ltd.,
VRDN VMIG 2 5,700,000 5,700,000
TOTAL MUNICIPAL NOTES
(Cost $9,130,000) 9,130,000
TOTAL INVESTMENTS - 100%
(Cost $365,074,474) $ 357,294,550

SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(5.) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(6.) Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
(7.) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(8.) Security collateralized by an amount sufficient to pay interest and
principal.
(9.) Coupon is inversely indexed to a floating interest rate. The price
will be more volatile than the price of a comparable fixed rate security.
The rate shown is the rate at period end.
INCOME TAX INFORMATION
At July 31, 1994, the aggregate cost of investment securities for income
tax purposes was $365,074,474. Net unrealized depreciation aggregated
$7,779,924, of which $8,043,974 related to appreciated investment
securities and $15,823,898 related to depreciated investment securities.
The fund designated $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 40.6% AAA, AA, A 50.1%
Baa 51.4% BBB 28.0%
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 4.1%. FMR has
determined that unrated debt securities that are lower quality account for
4.1% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Transportation 25.1%
Lease Revenue 13.5
Industrial Development 13.0
General Obligation 12.3
Special Tax 10.9
Others
(individually less than 10%) 25.2
TOTAL 100.0%
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1994 (UNAUDITED)

10.ASSETS 11. 12.

13.Investment in securities, at value (cost 14. $ 357,294,550
$365,074,474) -
(Notes 1 and 2) See accompanying schedule

15.Cash 16. 14,902

17.Receivable for investments sold 18. 510,528

19.Interest receivable 20. 4,555,849

21. 22.TOTAL ASSETS 23. 362,375,829

24.LIABILITIES 25. 26.

27.Payable for fund shares redeemed $ 356,020 28.

29.Dividends payable 243,225 30.

31.Accrued management fee 167,578 32.

33.Payable for daily variation on futures contracts 9,476 34.

35. 36.TOTAL LIABILITIES 37. 776,299

38.39.NET ASSETS 40. $ 361,599,530

41.Net Assets consist of: 42. 43.

44.Paid in capital 45. $ 366,289,368

46.Accumulated undistributed net realized gain (loss) on 47. 3,090,086
investments

48.Net unrealized appreciation (depreciation) on 49. (7,779,924)
investments

50.51.NET ASSETS, for 35,098,410 shares outstanding 52. $ 361,599,530

53.54.NET ASSET VALUE, offering price and redemption 55. $10.30
price per share ($361,599,530 (divided by)
shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)

56.57.INTEREST INCOME 58. $ 12,079,463

59.EXPENSES 60. 61.

62.Management fee (Note 4) $ 1,041,844 63.

64.Non-interested trustees' compensation 1,206 65.

66. 67.TOTAL EXPENSES 68. 1,043,050

69.70.NET INTEREST INCOME 71. 11,036,413

72.REALIZED AND UNREALIZED GAIN (LOSS) (NOTES 1 AND 74. 75.
3)
73.Net realized gain (loss) on:

76. Investment securities 3,356,398 77.

78. Futures contracts 696,316 4,052,714

79.Change in net unrealized appreciation (depreciation) 80. 81.
on:

82. Investment securities (39,778,791) 83.

84. Futures contracts (6,563) (39,785,354)

85.86.NET GAIN (LOSS) 87. (35,732,640)

88.89.NET INCREASE (DECREASE) IN NET ASSETS 90. $ (24,696,227)
RESULTING FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1994 JANUARY 31,
(UNAUDITED) 1994

91.INCREASE (DECREASE) IN NET ASSETS

92.Operations $ 11,036,413 $ 23,480,063
Net interest income

93. Net realized gain (loss) 4,052,714 16,463,348

94. Change in net unrealized appreciation (depreciation) (39,785,354) 11,230,982

95. 96.NET INCREASE (DECREASE) IN NET ASSETS (24,696,227) 51,174,393
RESULTING FROM OPERATIONS

97.Distributions to shareholders: (11,036,413) (23,480,063)
From net interest income

98. From net realized gain (5,699,955) (10,666,976)

99. In excess of net realized gain - (22,625)

100. 101.TOTAL DISTRIBUTIONS (16,736,368) (34,169,664)

102.Share transactions 33,856,129 144,000,852
Net proceeds from sales of shares

103. Reinvestment of distributions 14,470,293 29,862,234

104. Cost of shares redeemed (91,364,409) (111,749,950)

105. Redemption fees (Note 1) 40,537 71,606

106. (42,997,450) 62,184,742
Net increase (decrease) in net assets resulting from
share transactions

107. (84,430,045) 79,189,471
108.TOTAL INCREASE (DECREASE) IN NET ASSETS

109.NET ASSETS 110. 111.

112. Beginning of period 446,029,575 366,840,104

113. End of period $ 361,599,530 $ 446,029,575

114.OTHER INFORMATION 116. 117.
115.Shares

118. Sold 3,205,979 12,748,068

119. Issued in reinvestment of distributions 1,384,011 2,634,889

120. Redeemed (8,695,323) (9,860,924)

121. Net increase (decrease) (4,105,333) 5,522,033

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
122. SIX MONTHS YEAR NINE MONTHS YEARS ENDED APRIL 30, FEBRUARY 3, 199
ENDED ENDED ENDED 0
JULY 31, 1994 JANUARY 31, JANUARY 31, (COMMENCEME
NT
OF OPERATIONS) T
O
APRIL 30,

123. (UNAUDITED) 1994 1993 1992 1991 1990

124.SELECTED PER-SHARE DATA

125.Net asset value, beginning
of period $ 11.380 $ 10.890 $ 10.480 $ 10.090 $ 9.690 $ 10.000

126.Income from Investment
Operations .303 .622 .491 .675 .717 .180
Net interest income

127. Net realized and
unrealized gain (loss) (.931) .768 .518 .408 .394 (.318)

128. Total from investment
operations (.628) 1.390 1.009 1.083 1.111 (.138)

129.Less Distributions (.303) (.622) (.491) (.675) (.717) (.180)
From net interest income

130. From net realized gain (.150) (.280) (.110) (.020) - -

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

132. Total distributions (.453) (.902) (.601) (.695) (.717) (.180)

133.Redemption fees added to
paid in capital .001 .002 .002 .002 .006 .008

134.Net asset value, end of
period $ 10.300 $ 11.380 $ 10.890 $ 10.480 $ 10.090 $ 9.690

135.TOTAL RETURN B (5.49)% 13.12% 9.83% 11.03% 11.88% (1.38)%

136.RATIOS AND SUPPLEMENTAL DATA

137.Net assets, end of period
(000 omitted) $ 361,600 $ 446,030 $ 366,840 $ 291,913 $ 163,472 $ 57,083

138.Ratio of expenses to
average net assets .55%A .55% .48%A .38% .19% -

139.Ratio of expenses to average
net assets before expense .55%A .55% .55%A .55% .55% .55%A
reductions

140.Ratio of net interest income
to average net assets 5.82%A 5.49% 6.03%A 6.51% 7.21% 7.75%A

141.Portfolio turnover rate 49%A 50% 35%A 21% 40% 24%A

</TABLE>

A ANNUALIZED
FINANCIAL HIGHLIGHTS
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

An interview with David Murphy,
Portfolio Manager of Spartan New
York Intermediate Municipal Portfolio
Q. DAVID, HOW HAS THE FUND PERFORMED?
A. It has been a difficult period for both the municipal bond market and
the fund. For the six months ended July 31, 1994, the fund had a total
return of -2.93%. That compares to the average New York intermediate
municipal bond fund, which returned -2.27% for the same period, according
to Lipper Analytical Services.
Q. WHAT DROVE THE MUNICIPAL MARKET'S PERFORMANCE?
A. The Federal Reserve Board, acting on evidence that the economy had grown
at a fairly strong pace in the fourth quarter of 1993, raised short-term
interest rates one-quarter of a percent in early February. That was in
spite of the fact that there wasn't any solid evidence that this growth was
causing higher inflation. Since the bond market fears inflation, a
preemptive Fed move against the threat of future inflation is sometimes
greeted enthusiastically by long-term bond investors. But this time, the
market reacted negatively because investors started expecting further Fed
hikes. As a result, many investors started to sell municipal bonds, and the
market dropped. Most of the fund's and the market's losses came in February
and March, when the selling was at its peak. By the end of May, the Fed had
raised short-term interest rates by 1.25% to 4.25%. In July the market
rallied somewhat, based on the sense that the Fed's interest rate hikes
were actually slowing down the economy and easing inflationary pressures.
Q. WHY DID THE FUND UNDER-PERFORM THE AVERAGE NEW YORK INTERMEDIATE FUND?
A. The primary reason was that the fund had a longer duration during much
of the period than many of its competitors. Duration is a measure of the
fund's volatility when interest rates move up or down. The longer the
duration, the more sensitive the fund is to changes in interest rates. As a
result, when rates rose, the fund's share price fell more than many of its
competitors. At the beginning of 1994, I had structured the fund to take
advantage of what I believed would be a relatively stable interest rate
environment.
Q. ONCE RATES STARTED RISING, WHY DIDN'T YOU JUST SHORTEN THE FUND'S
DURATION?
A. I kept the fund's core structure in place because my long-term view is
that inflation will stay low and we'll see a return to lower long-term
interest rates within the next 18 months. Obviously, I've been challenged
in my thinking, but I continue to believe that the fund's structure will be
appropriate for the foreseeable future. Instead of changing the core
structure of the fund, I used futures to generally try to offset the fund's
volatility.
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. AREN'T FUTURES ONE
OF THE FINANCIAL ARRANGEMENTS KNOWN AS A DERIVATIVES, AND DO YOU USE
OTHERS?
A. Yes, a future is one type of financial derivative - meaning its market
value is derived from a security or market index. We've used futures and
options in our municipal bond funds for years. More recently, I've also
used what's known as an inverse floater - whose yield rises as short-term
rates fall, and vice versa. Inverse floaters act like long-term bonds,
effectively increasing a fund's duration, which is good in a falling
interest rate environment, but can hurt the fund when interest rates rise.
During the past six months, inverse floaters made up less than 5% of the
fund's total investments. By using these various derivatives, I achieve
increased flexibility in managing the fund's overall sensitivity to changes
in interest rates, and hopefully, can achieve higher levels of income.
Q. DID YOU EMPHASIZE ANY PARTICULAR TYPES OF BONDS?
A. Throughout the period, I've added to the fund's investments in
state-appropriated bonds. These bonds rely on annual appropriations by the
state legislature to make principal and interest payments. Most of the
fund's lease revenue bonds - which make up its largest sector concentration
at 20.3% of investments on July 31 - are state-appropriated bonds. With
improvements in New York state's economy and fiscal situation, these bonds
- - which were downgraded several years ago - have done fairly well recently.
I believe that they may be upgraded within the next 12 months, which could
help their prices even more. New York City bonds also did well over the
past six months, because there has been a growing sense that fiscal and
economic conditions in the city are also improving. More recently, I pared
the fund's stake in these bonds after they had appreciated, locking in a
profit for the fund. I still hold some of these bonds, because they offer
fairly attractive current yields.
Q. WHAT OTHER SECTORS HAVE BEEN
ATTRACTIVE?
A. Resource recovery bonds, which help finance garbage burning plants, made
up 16.8% of the fund's investments at the end of July. These bonds were
hurt in the spring because of the threat of increased competition. The
Supreme Court recently ruled that municipalities could no longer force
garbage producers to use garbage burning plants instead of landfills for
waste disposal. I had anticipated this outcome, so I waited until the bad
news was out before building the position in this sector. Also, I had
concentrated most of the fund's resource recovery holdings in regions where
it would be cheaper to send garbage to plants, rather than landfills. The
bonds in those regions shouldn't be negatively affected by the ruling over
the long term.
Q. DO YOU THINK THE WORST IS OVER FOR MUNICIPAL BONDS?
A. I believe so, but I expect to see a high level of market volatility over
the short term. Long term, there are some positives working in municipal
bonds' favor. The municipal market is very dependent on supply and demand.
With interest rates higher, the supply of New York municipal bonds is
expected to be considerably less in 1994 than in 1993. If demand remains
fairly constant and supply is lower, municipal bond prices could rise. But
in addition, I believe that demand for municipal bonds could increase over
the next year or so, once the market settles down and individual investors
feel more confident about the municipal bond market.

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
with maturities between three
and ten years
START DATE: December 29,
1993
SIZE: as of July 31, 1994,
more than $30 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; joined
Fidelity in 1989
(checkmark)

DAVID MURPHY'S STRATEGY:
"One of my primary goals is to
generate a fairly high level of
income for the fund. For
example, I look for bonds in
the lower end of the
investment grade range.
These bonds can offer
significantly higher yields, but
also can have more credit
risk. However, I'm not just
chasing after yield. When I
buy municipal bonds, my goal
is always to find the highest
yields possible, while keeping
risk in check. "
(medium solid bullet) Lease revenue bonds were
the fund's largest sector
concentration at 20.3% of
investments as of July 31,
1994. The majority of these
bonds are state-appropriated,
meaning they rely on annual
appropriations by the state
legislature to make principal
and interest payments.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

INVESTMENT CHANGES

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

Lease Revenue 20.3 7.6

Resource Recovery 16.8 6.1

Transportation 16.7 10.3

General Obligation 13.8 15.3

Industrial Development 7.5 14.0

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

Years 9.7 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 JULY 31, 1994
6 MONTHS AGO

Years 6.7 5.1

Aaa 33.6%
Aa, A 18.1%
Baa 35.3%
Ba or B -
Non-rated -
Short-term investments 13.0%
Row: 1, Col: 1, Value: 33.6
Row: 1, Col: 2, Value: 18.1
Row: 1, Col: 3, Value: 35.3
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 13.0
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
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 and
dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 6 LIFE OF
MONTHS FUND

Spartan New York Intermediate Municipal -2.93% -1.74%

Lehman Brothers Municipal Bond Index -3.76% n/a

Average New York Tax-Exempt
Intermediate Municipal Bond Fund -2.27% n/a

Consumer Price Index 1.50% 1.78%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months or 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. 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, you can also look at the average New York tax-exempt
intermediate municipal bond fund, which reflects the performance of 18 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 (CPI) 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) return
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.
TOTAL RETURN COMPONENTS
DECEMBER 29, 1993
SIX MONT (COMMENCEMENT
HS OF OPERATIONS) TO
ENDED JANUARY 31,
JULY 31,

1994 1994

Dividend returns 2.33% 0.33%

Capital appreciation
returns -5.26% 0.88%

Total returns -2.93% 1.21%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED JULY 31, 1994 PAST PAST 6 LIFE OF
MONTH MONTHS FUND

Dividends per share 4.16(cents) 23.25(cents) 26.52(cents)

Annualized dividend rate 5.16% 4.88% 4.66%

30-day annualized yield 5.42% - -

30-day annualized tax-equivalent yield 9.66% - -

</TABLE>

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 $9.50 over
the past month, $9.60 over the past six months, and $9.66 over the life of
fund, you can compare the fund's income over these three 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 43.89% combined effective 1994 federal, state and New York City
income tax bracket. If the advisor had not reimbursed certain portfolio
expenses during the period shown, the yield and tax-equivalent yield would
have been 4.87% and 8.68%, respectively.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

INVESTMENTS JULY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 87.0%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - 80.8%
Albany County Rfdg. 5% 10/1/12,
(FGIC Insured) Aaa $ 300,000 $ 269,625
Babylon Waste Facs. 9% 8/1/09,
(FGIC Insured) Aaa 350,000 458,063
Buffalo Swr. Auth. Rev. Series D, 7.625% 7/1/06,
(AMBAC Insured) (Pre-refunded to
7/1/96 @ 103) (d) Aaa 415,000 452,869
Buffalo Swr. Auth. Rev. (Swr. Sys.) Series G,
5.25% 7/1/08, (FGIC Insured) Aaa 450,000 426,375
Cattaragus County Pub. Impt. 5.40%
3/15/04, (FGIC Insured) Aaa 400,000 402,000
Hempstead Town Ind. Dev. Agcy. Resources
Recovery Rev. (American Rfdg. Fuel Co.)
7.375% 12/1/05 Baa1 2,730,000 2,859,675
Metropolitan Trans. Auth. Svc. Contract
(Trans. Facs.):
Series D, 4.75% 7/1/98 Baa1 350,000 347,375
Series O, 5.25% 7/1/01 Baa1 100,000 99,500
Series 7, 0% 7/1/10 Baa1 840,000 305,550
Nassau County Combined Swr. Dist.:
Rfdg. Series E, 5.30% 7/1/07
(MBIA Insured) Aaa 350,000 339,500
Unltd. Tax Series A, 7.20% 5/1/10,
(FGIC Insured) (Pre-refunded to
5/1/96 @ 103) (d) Aaa 310,000 334,413
Nassau County Gen. Oblig. Unltd. Tax
Series N, 6.125% 10/15/11,
(AMBAC Insured) Aaa 90,000 91,463
New York City Gen. Oblig.
Series H Sub-Series H-1, 5.80% 8/1/04 Baa1 750,000 739,688
Short Rites Series C, 7.50548%,
8/1/03 INFL (e) Baa1 350,000 359,625
New York City Muni. Wtr. Fin. Auth. Wtr. &
Swr. Sys. Rev. Series F:
5.75% 6/15/08 A 250,000 245,625
5.80% 6/15/09 A 200,000 195,500
New York City Trust Cultural Res. Rev. Rfdg.
(Museum of Modern Art) Series A,
5.20% 1/1/04 (AMBAC Insured) Aaa 280,000 278,250
New York Ctfs. of Prtn. 6.70% 9/1/97 Baa1 1,110,000 1,158,563
New York Ind. Dev. Agcy. Spl. Facs. Rev.
(Terminal One Group Assoc. Proj.)
5.70% 1/1/04 (AMT) A 1,500,000 1,488,750
New York State Dorm. Auth. Rev.:
Rfdg. (New York Univ.) Series A,
5% 7/1/08, (MBIA Insured) Aaa 700,000 643,125
(City Univ.) Series F, 5.25% 7/1/06,
(FGIC Insured) Aaa 200,000 195,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev. - continued
(College & Univ. Ed.) 0% 7/1/06,
(MBIA Insured) (c) Aaa $ 825,000 $ 419,718
(Court Facs. Lease) Series A,
5.10% 5/15/04 Baa1 1,000,000 945,000
New York State Local Govt. Assistance Corp.
Series D, 5.10% 4/1/07 A 750,000 689,063
New York State Pwr. Auth. Rev. & Gen.
Purpose Rfdg.:
Series CC, 5% 1/1/09 Aa 1,000,000 900,000
Series W, 6.50% 1/1/08 Aa 250,000 268,438
New York State Thruway Svc. Contract Rev.
(Local Highway & Bridge) 5.125%
4/1/07 Baa1 1,000,000 933,750
New York State Tollway Auth. Gen. Rev.
Series B, 5% 1/1/14, (MBIA Insured) Aaa 340,000 296,650
New York State Urban Dev. Corp. Rev.
Rfdg. Correctional Cap. Facs.:
5.25% 1/1/03 Baa1 165,000 159,431
Series A, 5.30% 1/1/05 Baa1 1,000,000 956,250
Niagara Falls Bridge Comm. Toll Rev.:
Rfdg. Series B, 5.125% 10/1/07,
(FGIC Insured) Aaa 1,000,000 948,750
5.125% 10/1/08, (FGIC Insured) Aaa 1,820,000 1,703,975
North Hempstead Solid Waste Mgmt.
4.90% 2/1/06 (MBIA Insured) Aaa 125,000 117,343
Rochester Gen. Oblig. Series A 4.70%
8/15/94, (FGIC Insured) Aaa 100,000 100,000
Suffolk County Ind. Dev. Agcy. Southwest
Swr. Sys. Rev. 6% 2/1/07,
(FGIC Insured) Aaa 840,000 869,400
Suffolk County Wtr. Auth. Wtrwks. Rev.:
Rfdg. Series C, 5.75% 6/1/10,
(AMBAC Insured) (Pre-refunded to
6/1/02 @ 102) (d) Aaa 30,000 31,537
5.75% 6/1/10, (AMBAC Insured) Aaa 170,000 166,174
Triborough Bridge & Tunnel Auth. Rev.
Gen. Purp.:
Rfdg. Series Y:
5.50% 1/1/03 Aa 1,000,000 1,018,750
5.75% 1/1/05 Aa 200,000 205,000
Series A, 6% 1/1/11 Aa 500,000 504,375
Triborough Bridge & Tunnel Auth. Rev.
Series R, 6% 1/1/20, (MBIA Insured)
(Pre-refunded to 1/1/00 @ 100) (d) Aaa 90,000 94,387
Westchester County Ind. Dev. Agcy. Resource
Recovery Rev. Rfdg. (Resco Co. Proj.)
Series A, 5.20% 7/1/03,
(AMBAC Insured) Aaa 1,500,000 1,496,250
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Westchester County Unltd. Tax
Series B, 4.20% 12/15/94 Aaa $ 100,000 $ 100,375
24,615,150
PUERTO RICO - 6.2%
Puerto Rico Commonwealth Gen. Oblig.
5.70% 7/1/08 Baa1 825,000 805,406
Puerto Rico Commonwealth Gen. Oblig.
Impt. Rfdg. 5.375% 7/1/06 Baa1 1,125,000 1,078,594
1,884,000
TOTAL MUNICIPAL BONDS
(Cost $27,147,452) 26,499,150
MUNICIPAL NOTES (A) - 13.0%

NEW YORK - 13.0%
Chautauqua County Ind. Dev. Auth. Rev.
(Bush Industries, Inc. Proj.) Series 84, 3.65%
LOC Marine Midland Bank, VRDN - 830,000 830,000
Erie County Ind. Dev. Auth. Ind. Dev. Rev.
(The Holling Press, Inc.) Series 1989 F,
3.35%, LOC Marine Midland Bank,
VRDN (c) - 1,440,000 1,440,000
New York City Hsg. Dev. Corp. Spl.
(Carnegie Park Proj.) Series 1984 A,
3.55% LOC Sumitomo Trust & Banking
Ltd., VRDN VMIG 2 1,500,000 1,500,000
New York State Envir. Facs. Corp. Research
Recovery Rev. (Hunting, Inc. Proj.)
Series 1989, 2.85%, LOC Union Bank of
Switzerland, VRDN (c) A-1+ 200,000 200,000
TOTAL MUNICIPAL NOTES
(Cost $3,970,000) 3,970,000
TOTAL INVESTMENTS - 100%
(Cost $31,117,452) $ 30,469,150

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 July 31, 1994, the aggregate cost of investment securities for income
tax purposes was $31,117,452. Net unrealized depreciation aggregated
$648,302, of which $71,452 related to appreciated investment securities and
$719,754 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 51.7% AAA, AA, A 70.9%
Baa 35.3% BBB 16.1%
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:
Lease Revenue 20.3%
Resource Recovery 16.8
Transportation 16.7
General Obligation 13.8
Others
(individually less than 10%) 32.4
TOTAL 100.0%
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1994 (UNAUDITED)

142.ASSETS 143. 144.

145.Investment in securities, at value (cost 146. $ 30,469,150
$31,117,452) -
(Notes 1 and 2) See accompanying schedule

147.Interest receivable 148. 334,373

149.Receivable for daily variation on futures contracts 150. 5,222

151.Receivable from investment adviser for expense 152. 13,789
reductions (Note 5)

153. 154.TOTAL ASSETS 155. 30,822,534

156.LIABILITIES 157. 158.

159.Payable to custodian bank $ 31,952 160.

161.Payable for fund shares redeemed 15,606 162.

163.Dividends payable 13,673 164.

165.Accrued management fee 13,789 166.

167. 168.TOTAL LIABILITIES 169. 75,020

170.171.NET ASSETS 172. $ 30,747,514

173.Net Assets consist of: 174. 175.

176.Paid in capital 177. $ 31,475,199

178.Accumulated undistributed net realized gain (loss) 179. (79,383)
on investments

180.Net unrealized appreciation (depreciation) on 181. (648,302)
investments

182.183.NET ASSETS, for 3,215,293 shares outstanding 184. $ 30,747,514

185.186.NET ASSET VALUE, offering price and 187. $9.56
redemption price per share ($30,747,514 (divided by)
shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)

188.189.INTEREST INCOME 190. $ 579,533

191.EXPENSES 192. 193.

194.Management fee (Note 4) $ 63,893 195.

196.Non-interested trustees' compensation 77 197.

198. Total expenses before reductions 63,970 199.

200. Expense reductions (Note 5) (63,970) -

201.202.NET INTEREST INCOME 203. 579,533

204.REALIZED AND UNREALIZED GAIN (LOSS) (NOTES 1 206. 207.
AND 3)
205.Net realized gain (loss) on:

208. Investment securities (142,335) 209.

210. Futures contracts 62,952 (79,383)

211.Change in net unrealized appreciation 212. (712,093)
(depreciation) on investment securities

213.214.NET GAIN (LOSS) 215. (791,476)

216.217.NET INCREASE (DECREASE) IN NET ASSETS 218. $ (211,943)
RESULTING FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS DECEMBER 29, 199
ENDED 3
JULY 31, 1994 (COMMENCEMENT
(UNAUDITED) OF OPERATIONS) TO
JANUARY 31, 1994

219.INCREASE (DECREASE) IN NET ASSETS

220.Operations $ 579,533 $ 15,336
Net interest income

221. Net realized gain (loss) (79,383) -

222. Change in net unrealized appreciation (depreciation) (712,093) 63,791

223. (211,943) 79,127
224.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS

225.Dividends to shareholders from net interest income (579,533) (15,336)

226.Share transactions 30,397,708 9,245,191
Net proceeds from sales of shares

227. Reinvestment of distributions 508,164 14,379

228. Cost of shares redeemed (8,640,243) (50,000)

229. 22,265,629 9,209,570
Net increase (decrease) in net assets resulting from
share transactions

230. 21,474,153 9,273,361
231.TOTAL INCREASE (DECREASE) IN NET ASSETS

232.NET ASSETS 233. 234.

235. Beginning of period 9,273,361 -

236. End of period $ 30,747,514 $ 9,273,361

237.OTHER INFORMATION 239. 240.
238.Shares

241. Sold 3,136,759 922,260

242. Issued in reinvestment of distributions 53,397 1,425

243. Redeemed (893,587) (4,961)

244. Net increase (decrease) 2,296,569 918,724

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
SIX MONTHS DECEMBER 29, 1993
ENDED (COMMENCEMENT
JULY 31, 1994 OF OPERATIONS) TO
(UNAUDITED) JANUARY 31, 1994

245.SELECTED PER-SHARE DATA

246.Net asset value, beginning of period $ 10.090 $ 10.000

247.Income from Investment Operations .233 .033
Net interest income

248. Net realized and unrealized gain (loss) (.530) .090

249. Total from investment operations (.297) .123

250.Less Distributions (.233) (.033)
From net interest income

251.Net asset value, end of period $ 9.560 $ 10.090

252.TOTAL RETURN B (2.92)% 1.23%

253.RATIOS AND SUPPLEMENTAL DATA

254.Net assets, end of period (000 omitted) $ 30,747 $ 9,273

255.Ratio of expenses to average net assets C - -

256.Ratio of expenses to average net assets before .55%A .55%A
expense reductions C

257.Ratio of net interest income to average net assets 4.98%A 3.85%A

258.Portfolio turnover rate 23%A -

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C 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. If Fidelity had not
reimbursed certain fund expenses during the periods shown, the total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Spartan New York Municipal Money Market 1.05% 2.09% 16.30%

Consumer Price Index 1.50% 2.77% 16.48%

Average New York Tax-Free
Money Market Fund 0.93% 1.84% 14.52%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months, 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 37 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 JULY 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan New York Municipal Money Market 2.09% 3.42%

Consumer Price Index 2.77% 3.45%

Average New York Tax-Free
Money Market Fund 1.84% 3.06%

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
7/31/93 10/31/93 1/31/94 4/30/94 7/31/94

Spartan New York 2.06% 2.08% 1.90% 2.44% 2.44%
Municipal Money Market

Average New York Tax-Free 1.86% 1.85% 1.67% 2.18% 2.18%
Money Market Fund

Spartan New York 3.67% 3.71% 3.39% 4.35% 4.35%
Municipal Money Market -
Tax-equivalent

Average All Taxable 2.65% 2.66% 2.68% 3.15% 3.83%
Money Market Fund

Row: 1, Col: 1, Value: 2.06
Row: 1, Col: 2, Value: 1.86
Row: 2, Col: 1, Value: 2.08
Row: 2, Col: 2, Value: 1.85
Row: 3, Col: 1, Value: 1.9
Row: 3, Col: 2, Value: 1.67
Row: 4, Col: 1, Value: 2.44
Row: 4, Col: 2, Value: 2.18
Row: 5, Col: 1, Value: 2.44
Row: 5, Col: 2, Value: 2.18
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 New York 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
43.89%. 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 WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
SPARTAN NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

An Interview with Janice Bradburn,
Portfolio Manager of Spartan
New York Municipal Money Market
Portfolio
Q. JAN, AFTER SEVERAL YEARS OF RELATIVE STABILITY, WE'VE SEEN A LOT OF
ACTIVITY LATELY IN THE MONEY MARKETS. CAN YOU BRING US UP TO DATE?
A. Sure. The watershed was the decision by the Federal Reserve to raise the
federal funds rate - the rate banks charge each other for overnight loans -
one quarter of a percentage point on February 4, 1994. The Fed was
responding to increased economic activity and heightened concerns about
inflation. Later, the Fed tacked on further increases, taking the rate to
4.25%. Rates then were stable through the end of the period.
Q. DID TAX-FREE INTEREST RATES RISE WITH THE TIDE?
A. Not as quickly as you might expect. In the municipal market, technical
factors often play as big a role in the movement of interest rates as the
Fed's monetary policy does. That was certainly the case in New York, where
demand outpaced supply and interest rates on some issues actually fell
following the Fed's move. Variable rate demand notes were affected most by
the surge in demand. Investors seek out VRDNs when interest rates are
rising because the rate they pay adjusts weekly with prevailing rates.
Later, though, as supply entered the market in the spring, tax-free rates
rose; they've since moved roughly in tandem with taxable rates.
Q. WHAT WAS YOUR STRATEGY IN AN UNSTABLE MARKET?
A. The fund's average maturity was around 65 days at the beginning of the
period. Once interest rates began to rise, I let the average maturity of
the fund roll down by adding more VRDNs and commercial paper, which in this
context refers to securities issued by municipalities to finance capital or
operating needs. Allowing the fund's average maturity to roll down gave me
more flexibility to respond to rising rates. The fund has since settled in
around 50 days, which I consider neutral.
Q. HOW DID THE FUND PERFORM?
A. On July 31, 1994, the fund's seven-day yield was 2.44%, up from 1.90%
six months ago. The latest yield is the equivalent of a 4.35% yield on a
taxable investment for New York City investors in the combined 43.89%
federal, state and New York City tax bracket. The fund's total return for
the six months ended on July 31 was 1.05%. During the same period, the
average New York tax-free money market fund had a total return of 0.93%,
according to IBC/Donoghue. I was able to beat the average by successfully
managing the fund's average maturity in a rising-rate environment.
Q. WHAT'S THE OUTLOOK?
A. I'm taking a cautious approach. With short-term rates likely to continue
rising, now is not the time to aggressively extend the fund's maturity.
Instead, I'll probably maintain a large percentage of VRDNs - currently
over 50% - and look for select opportunities to invest in longer-term
issues as conditions warrant. The fund's average maturity was around a
neutral 50 days at the end of the period, and I'll likely stay close to
that in the months ahead.

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 July 31, 1994,
more than $533 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; joined
Fidelity in 1989
(checkmark)

INVESTMENT CHANGES

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

0 - 30 65 60 61

31 - 90 19 14 15

91 - 180 11 13 8

181 - 397 5 13 16

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

Spartan New York
Municipal Money Market 47 days 65 days 69 days

Average New York Tax-Fre
e 54 days 58 days 67 days
Money Market Fund*

ASSET ALLOCATION
AS OF JULY 31, 1994 AS OF JANUARY 31, 1994

Row: 1, Col: 1, Value: 54.0
Row: 1, Col: 2, Value: 15.0
Row: 1, Col: 3, Value: 9.0
Row: 1, Col: 4, Value: 19.0
Row: 1, Col: 5, Value: 3.0
Row: 1, Col: 1, Value: 49.0
Row: 1, Col: 2, Value: 7.0
Row: 1, Col: 3, Value: 12.0
Row: 1, Col: 4, Value: 29.0
Row: 1, Col: 5, Value: 3.0
Variable rate
demand notes
(VRDNs) 54%
Commercial
paper 15%
Tender bonds 9%
Municipal
notes 19%
Other 3%
Variable rate
demand notes
(VRDNs) 49%
Commercial
paper 7%
Tender bonds 12%
Municipal
notes 29%
Other 3%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
SPARTAN NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO

INVESTMENTS JULY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 94.1%
Albany County Rfdg. Bonds (Southmall Construction)
Series B, 3.5% 10/1/94, (FGIC Insured) $ 9,000,000 $ 9,008,033
Amherst Ind. Dev. Auth. Ind. Dev. Rev. (Maple Dev. Proj.)
Series 1986, 3.25%, LOC Marine Midland Bank,
VRDN (b) 4,660,000 4,660,000
Babylon BAN 3% 9/21/94 9,000,000 9,006,177
Battery Park City Auth. Participating VRDN, Series C,
3.70%, (Liquidity Facility Sumitomo Bank Ltd.) (c) 18,300,000 18,300,000
Brewster Central School Dist. TAN 3.55% 10/27/94 1,300,000 1,300,342
Broome County BAN 3.75% 4/20/94 6,300,000 6,323,199
Chautauqua County Ind. Dev. Auth. Rev.
(Red Wing Co. Proj.) Series 1985, 3.15%
LOC Bankers Trust, VRDN 100,000 100,000
Commack Union Free School Dist. TAN:
4.25% 6/30/95 3,300,000 3,309,264
4.50% 6/30/95 1,000,000 1,004,830
4.75% 6/30/95 1,000,000 1,007,115
Deer Park Union Free School Dist. TAN 4.25%
6/28/95 2,200,000 2,209,615
Dutchess County Ind. Dev. Auth. Rev. (Toys "R" Us)
(U.S. Nytex, Inc. Proj.) 2.875%,
LOC Bankers Trust, VRDN 500,000 500,000
Erie County Ind. Dev. Auth. Ind. Dev. Rev., VRDN:
(Elope Co. Proj.) 3.25%,
LOC Marine Midland Bank 2,000,000 2,000,000
(Uniland Dev./Buffalo Campus-B) 3.25%,
LOC Marine Midland Bank (b) 1,265,000 1,265,000
Erie County Water Auth. Waterworks Sys. Rev.,
Series 1993, 2.60%, (AMBAC Insured), VRDN 2,000,000 2,000,000
Franklin County Ind. Dev. Auth. Ind. Dev. Rev.
(Kes Chateaugay) Series 1991 A, 2.80%,
LOC Bank of Tokyo, VRDN (b) 12,900,000 12,900,000
Garden City BAN 3% 12/22/94 2,820,000 2,820,000
Greenburgh County School Dist. TAN 3.50%
10/14/94 3,000,000 3,003,591
Hempstead BAN Series D, 3.25% 8/19/94 2,000,000 2,000,410
Herkimer County Ind. Rev. Agcy. (H.M. Quackenbush, Inc.)
Series 1988 A, 3.25%, LOC Marine Midland Bank,
VRDN (b) 1,275,000 1,275,000
Irvington Union Free School Dist. TAN 3.50%
10/19/94 1,400,000 1,402,022
Islip Gen. Oblig. BAN 3.40% 8/24/94 2,000,000 2,000,489
Lakeland Central School Dist. TAN 3.45%
10/28/94 2,000,000 2,000,947
Lewis County Ind. Dev. Auth. Ind. Dev. Rev.
(Philip Morris Proj.), 2.90%, VRDN 1,300,000 1,300,000
Monroe County BAN 3.75% 10/7/94 8,000,000 8,011,599
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Monroe County Ind. Dev. Auth. Agcy. Rev.,VRDN: (b)
(515 Lee Rd. Assoc./Nylomold Corp.) Series 1988 C,
3.25%, LOC Marine Midland Bank, $ 500,000 $ 500,000
(Advent Tool & Mold) Series 1990, 3.25%,
LOC Marine Midland Bank 1,055,000 1,055,000
(JMT Prop. Proj.) Series 1988 B, 3.25%,
LOC Marine Midland Bank 2,100,000 2,100,000
Nassau County Bonds 5.875% 10/1/94
(AMBAC Insured) 3,310,000 3,326,361
Nassau County Gen. Impt. Bonds, Series M, 4.90%
8/1/94, (FGIC Insured) 2,000,000 2,000,000
New York City Gen. Oblig. Participating VRDN,
Series 1994 C-3, 2.85%,
(Liquidity Facility Citibank) (c) 10,100,000 10,100,000
New York City Hsg. Dev. Corp. Mtg. Rev., VRDN:
(Parkgate Tower) Series 1985, 2.60%,
LOC Citibank 6,500,000 6,500,000
(York Avenue Proj.) Series 1994 A,
LOC Chemical Bank 9,000,000 9,000,000
New York City Hsg. Dev. Corp. Multi-Family Mtg. Rev., VRDN:
(Columbus Green Proj.) Series 1993 A, 2.75%,
LOC Citibank 7,200,000 7,200,000
(James Tower Project) Series 1994 A, 2.60%,
LOC Citibank 4,000,000 4,000,000
New York City Hsg. Dev. Corp. Rev., VRDN:
(Carnegie Park Proj.):
Series 1984 A, 3.55%, LOC Sumitomo Trust 12,100,000 12,100,000
Series 1988 A, 3.60%, LOC Sumitomo Trust (b) 1,000,000 1,000,000
(Related-East 96th St. Proj.) Series 1990 A, 2.60%,
LOC Mitsubishi Bank 2,200,000 2,200,000
New York City Ind. Dev. Agcy. Ind. Dev. Rev.,VRDN: (b)
(Andin Int'l.) 2.95%, LOC ABN-AMRO NV 2,500,000 2,500,000
(Apache Realty) 2.95%, LOC ABN-AMRO NV 1,450,000 1,450,000
(Bowe Industries, Inc.), Series K, 2.95%,
LOC ABN-AMRO NV 1,900,000 1,900,000
(Display Sys., Inc.) Series 1990 E, 2.95%,
LOC ABN-AMRO NV 500,000 500,000
(Matsco Leasing Ltd.) 2.95%, LOC Algemene Bank 1,300,000 1,300,000
(Metro Health Weight Process) 3.70%,
LOC Nat'l. Westminster Bank 5,400,000 5,400,000
(Nippon Cargo Airlines Co.) Series 1992, 2.95%,
LOC Ind. Bank of Japan 4,700,000 4,700,000
New York City Muni. Fin. Auth. Participating VRDN,
Series GS-1992 A, 2.95%, (MBIA Insured) (c) 11,000,000 11,000,000
New York City Muni. Trans. Auth. Participating VRDN,
Series GS-1993 C, 2.95%, (FGIC Insured)
(Liquidity Facility Hong Kong & Shanghai
Banking Corp.) (c) 10,000,000 10,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys.
BAN 3.75% 12/15/94 $ 28,000,000 $ 28,091,301
New York City Wtr. Fin. Auth. Participating VRDN,
Series V, 2.90% (Liquidity Facility Bankers Trust) (c) 5,100,000
5,100,000
New York State Dorm. Auth. (c):
Participating VRDN:
Series BS-1992 A32, 3.05%, (FGIC Insured)
(Liquidity Facility Sakura Bank) 2,000,000 2,000,000
Series PA-60, 2.95%,
(Liquidity Facility Merrill Lynch) 2,500,000 2,500,000
Tender Option Ctfs., Series GS-DD-2, 2.95%,
(MBIA Insured) (Liquidity Facility Kredietbank NV) 15,000,000
15,000,000
New York State Dorm. Auth. Pooled Short Term Rev.,
Series 1987 A, 2.75% 8/2/94,
LOC Dai-Ichi Kangyo Bank, Ltd., CP 800,000 800,000
New York State Dorm. Auth. Rev.
(Sloan-Kettering Mem. Cancer Ctr.):
Series 1989 A:
2.50% tender 8/16/94, LOC Fuji Bank, Ltd. 2,000,000 2,000,000
2.70% tender 9/9/94, LOC Fuji Bank, Ltd. 5,000,000 5,000,000
2.85% tender 9/12/94, LOC Fuji Bank, Ltd. 5,500,000 5,500,000
Series 1989 B, 2.55% tender 8/15/94,
LOC Fuji Bank, Ltd. 3,400,000 3,400,000
Series 1989 C:
2.85% tender 8/2/94, LOC Fuji Bank, Ltd. 500,000 500,000
2.85% tender 9/12/94, LOC Fuji Bank, Ltd. 2,700,000 2,700,000
Series 1989 D, 2.50% tender 8/16/94,
LOC Fuji Bank, Ltd. 1,365,000 1,365,000
New York State Energy Research & Dev. Auth.: (c)
Participating VRDN, Series 943202, 2.85%,
(MBIA Insured), (Liquidity Facility Citibank) 11,600,000 11,600,000
Bonds Series 943206, 2.40% tender 8/1/84
(Liquidity Facility Citibank) 6,200,000 6,200,000
New York State Energy Research & Dev. Auth. Poll.
Cont. Rev. (New York State Elec. & Gas):
Series B, 2.85% tender 10/15/94,
LOC Union Bank of Switzerland 3,200,000 3,199,895
Series 1984 A, 2.80% tender 12/1/93,
LOC Union Bank of Switzerland 5,560,000 5,560,000
Series 1985 D, 2.75% tender, 12/1/94,
LOC Union Bank of Switzerland 1,500,000 1,500,734
Series 1994 C, 2.95% tender 12/15/94,
LOC Morgan Guaranty Trust Co 7,500,000 7,500,000
New York State Energy Research & Dev. Auth. Rev.
(Long Island Lighting Co.):
Series 1993 A, 2.95%,
LOC Toronto-Dominion Bank, VRDN 13,300,000 13,300,000
Series 1993, 2.85% tender 11/1/94
LOC Toronto-Dominion Bank 4,500,000 4,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Envir. Facs. Corp. Solid Waste Rev.
Rfdg. (General Electric Proj.),Series 1992 A, 3.05%
tender 10/20/94 (b) $ 3,500,000 $ 3,500,000
New York State Gen. Oblig. Rev., CP:
Series O:
2.65% 8/8/94, (Liquidity Facility Daiwa Bank, Ltd.) 5,800,000
5,800,000
3.10% 8/11/94, (Liquidity Facility Daiwa Bank, Ltd.) 2,100,000
2,100,000
2.60% 8/16/94, (Liquidity Facility Daiwa Bank, Ltd.) 3,000,000
3,000,000
2.65% 9/8/94, (Liquidity Facility Daiwa Bank, Ltd.) 2,800,000
2,800,000
3% 10/12/94, (Liquidity Facility Daiwa Bank, Ltd.) 1,500,000 1,500,000
Series P:
2.25% 8/15/94, (Liquidity Facility Daiwa Bank, Ltd.) 5,300,000
5,300,000
2.65% 9/12/94, (Liquidity Facility Daiwa Bank, Ltd.) 1,700,000
1,700,000
New York State Hsg. Fin. Agcy. Rev.
(Normandie Court II Proj.) Series 1987 A, 2.80%,
LOC Bankers Trust, VRDN 3,000,000 3,000,000
New York State Job Dev. Auth. Series E, 2.50%,
LOC Sumitomo Bank Ltd., VRDN 3,245,000 3,245,000
New York State Med. Care Facs. Fin. Agcy. Rev.:
(Lenox Hill Hosp. Proj.) Series A, 2.75%,
LOC Chemical Bank, VRDN 3,000,000 3,000,000
Participating VRDN:
Series GS-1993G, 2.95%, (Liquidity Facility Hong
Kong & Shanghai Banking Corp.) (c) 6,200,000 6,200,000
Series PA-61, 2.95%, (Liquidity Facility
Merrill Lynch) (c) 2,625,000 2,625,000
Series PA-72, 2.95%, (Liquidity Facility
Merrill Lynch) (c) 3,000,000 3,000,000
New York State Mtg. Agcy. Homeowner Mtg. Rev.:
Series 36 C, 3.30% tender 12/1/94 (b) 1,555,000 1,555,966
Series 40 B, 3.15% tender 9/29/94 (b) 6,000,000 6,000,000
Series 40 C, 3.30% tender 12/1/94 5,500,000 5,500,000
Participating VRDN: (c)
Series PA-29, 3.10%, (Liquidity Facility
Dai-Ichi Kangyo Bank) 6,000,000 6,000,000
Series PT-15-A, 3.10%, (Liquidity Facility
Dai-Ichi Kangyo Bank) 4,500,000 4,500,000
Series PT-15-B, 3.10%, (Liquidity Facility
Dai-Ichi Kangyo Bank) 4,500,000 4,500,000
Series PT-26, 3.10%, (Liquidity Facility Credit Suisse) 2,700,000
2,700,000
New York State Pwr. Auth. Rev. & Gen. Purp. Rev.:
2.75% tender 9/1/94 7,200,000 7,200,000
3.05% 10/12/94, CP 11,000,000 11,000,000
New York & New Jersey Port Auth. Rev.,Series A, CP: (b)
2.75% 8/17/94, (Liquidity Facility Daiwa Bank, Ltd.) 3,470,000
3,470,000
2.50% 8/18/94, (Liquidity Facility Daiwa Bank, Ltd.) 2,000,000
2,000,000
2.10% 8/19/94, (Liquidity Facility Daiwa Bank, Ltd.) 2,000,000
2,000,000
2.40% 8/19/94, (Liquidity Facility Daiwa Bank, Ltd.) 2,265,000
2,265,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
North Salem TAN 3.25% 10/12/94 $ 1,000,000 $ 1,000,579
Oceanside Union Free School Dist. TAN 4.50% 6/29/95 2,700,000 2,715,853
Oswego BAN 3.10% 1/26/95 2,900,000 2,904,807
Oswego County Ind. Dev. Agcy. Ind. Dev. Rev.
(Engraph Inc. Proj.) Series 89, 3%,
LOC Suntrust Banks Inc., VRDN (b) 5,620,000 5,620,000
Oswego County Ind. Dev. Agcy. Poll. Cont. Rev. Rfdg.
(Phillip Morris Co. Proj.) 2.90%, VRDN 5,000,000 5,000,000
Rochester Rev. Bonds, Series A, 4.70% 8/15/94,
(FGIC Insured) 1,375,000 1,375,997
Rockland County Ind. Dev. Agcy. Rev.
(INSL-X Prod. Corp. Proj.) Series 1990, 2.95%,
LOC Bank of New York, VRDN (b) 3,400,000 3,400,000
Suffolk County Ind. Dev. Agcy. Ind. Dev. Rev.
(Nissequogue Cogen Partner Fac.), 2.75%,
LOC Toronto-Dominion Bank, VRDN (b) 9,700,000 9,700,000
Suffolk County Ind. Dev. Agcy. (Suffolk Child Dev. Ctr. Proj.),
Series 1989, 2.85%, LOC Barclays Bank, PLC, VRDN 1,100,000 1,100,000
Suffolk County Pub. Impt. Unltd. Tax Series A, 5%
10/15/94, (AMBAC Insured) 1,000,000 1,004,394
Suffolk County TAN, Series II, 3% 9/15/94,
LOC Chemical Bank 10,000,000 10,001,798
Three Village Central Union Free School Dist. TAN
4.50% 6/30/95 6,700,000 6,738,324
Tompkins County BAN 3.125% 9/29/94 4,000,000 4,002,035
Triborough Bridge & Tunnel Auth. Bonds, 2.60% tender
8/15/94, (MBIA Insured) (Liquidity Facility Citibank) (c) 5,410,000
5,410,000
Triborough Bridge & Tunnel Auth. Spl. Oblig. Rev.,
Series 1994, 2.75%, (FGIC Insured)
(Liquidity Facility Security Purchase Inc.), VRDN 10,000,000 10,000,000
Yorktown Central Union Free School Dist. TAN,
3.75% 2/21/95 2,000,000 2,003,992
503,294,669
NEW YORK & NEW JERSEY - 5.9%
New York & New Jersey Port Auth. Spl. Proj. Rev.
(KIAC Partners Proj.), Series 3, 2.85%,
LOC Deutsche Bank, VRDN (b) 9,400,000 9,400,000
New York & New Jersey Port Auth. Rev.:
Series A, 2.50% 8/17/94,
(Liquidity Facility Daiwa Bank, Ltd.), CP (b) 2,515,000 2,515,000
Series 1991, 3.36%, VRDN (b) 9,800,000 9,800,000
Series 1992, 3.001%, VRDN 9,600,000 9,600,000
31,315,000
TOTAL INVESTMENTS - 100% $ 534,609,669
Total Cost for Income Tax Purposes $ 534,609,263

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
FRDN - Floating Rate Demand Notes
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax & Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
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) Provide evidence of ownership in an underlying pool of 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>
JULY 31, 1994 (UNAUDITED)

259.ASSETS 260. 261.

262.Investment in securities, at value (Note 1) - See 263. $ 534,609,669
accompanying schedule

264.Cash 265. 1,031,320

266.Receivable for investments sold 267. 5,015,521

268.Interest receivable 269. 3,185,084

270. 271.TOTAL ASSETS 272. 543,841,594

273.LIABILITIES 274. 275.

276.Payable for investments purchased $ 10,000,753 277.

278.Dividends payable 9,810 279.

280.Accrued management fee 227,537 281.

282. 283.TOTAL LIABILITIES 284. 10,238,100

285.286.NET ASSETS 287. $ 533,603,494

288.Net Assets consist of (Note 1): 289. 290.

291.Paid in capital 292. $ 533,724,354

293.Accumulated net realized gain (loss) on 294. (121,267)
investments

295.Unrealized gain from accretion of market discount 296. 407
(Note 1)

297.298.NET ASSETS, for 533,707,403 shares 299. $ 533,603,494
outstanding

300.301.NET ASSET VALUE, offering price and 302. $1.00
redemption price per share ($533,603,494 (divided by)
shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)

303.304.INTEREST INCOME 305. $ 6,704,714

306.EXPENSES 307. 308.

309.Management fee (Note 4) $ 1,272,198 310.

311.Non-interested trustees' compensation 1,513 312.

313. 314.TOTAL EXPENSES 315. 1,273,711

316.317.NET INTEREST INCOME 318. 5,431,003

319.REALIZED AND UNREALIZED GAIN (LOSS) (NOTES 1 321. (19,507)
AND 3)
320.Net realized gain (loss) on investment securities

322.Increase (decrease) in net unrealized gain from 323. 254
accretion
of market discount

324.325.NET GAIN (LOSS) 326. (19,253)

327.328.NET INCREASE IN NET ASSETS RESULTING FROM 329. $ 5,411,750
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1994 JANUARY 31,
(UNAUDITED) 1994

330.INCREASE (DECREASE) IN NET ASSETS

331.Operations $ 5,431,003 $ 8,815,372
Net interest income

332. Net realized gain (loss) (19,507) (51,247)

333. Increase (decrease) in net unrealized gain from 254 (158)
accretion of market discount

334. 5,411,750 8,763,967
335.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS

336.Dividends to shareholders from net interest income (5,431,003) (8,815,372)

337.Share transactions at net asset value of $1.00 per 284,430,339 406,584,942
share
Proceeds from sales of shares

338. Reinvestment of dividends from net interest 5,282,772 8,565,751
income

339. Cost of shares redeemed (218,214,752) (406,787,060)

340. 71,498,359 8,363,633
Net increase (decrease) in net assets resulting from
share transactions

341. 71,479,106 8,312,228
342.TOTAL INCREASE (DECREASE) IN NET ASSETS

343.NET ASSETS 344. 345.

346. Beginning of period 462,124,388 453,812,160

347. End of period $ 533,603,494 $ 462,124,388

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
348. SIX MONTHS YEAR NINE MONTHS YEARS ENDED APRIL 30, FEBRUARY 3, 19
ENDED ENDED ENDED 90
JULY 31, 1994 JANUARY 31, JANUARY 31, (COMMENCEME
1993 NT
OF OPERATIONS)
TO
APRIL 30,

349. (UNAUDITED) 1994 (NOTE 1) 1992 1991 1990

350.SELECTED PER-SHARE DATA

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

352.Income from Investment
Operations .011 .020 .018 .037 .052 .013
Net interest income

353. Dividends from net interest
income (.011) (.020) (.018) (.037) (.052) (.013)

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

355.TOTAL RETURN B 1.06% 1.99% 1.85% 3.78% 5.37% 1.31%

356.RATIOS AND SUPPLEMENTAL DATA

357.Net assets, end of period
(000 omitted) $ 533,603 $ 462,124 $ 453,812 $ 474,990 $ 466,327 $ 181,864

358.Ratio of expenses to average
net assets .50%A .50% .50%A .37% .10% -%

359.Ratio of expenses to average
net assets before expense .50%A .50% .50%A .50% .50% .50%A
reductions

360.Ratio of net interest income
to average net assets 2.13%A 1.97% 2.43%A 3.71% 5.15% 5.85%A

</TABLE>

FINANCIAL HIGHLIGHTS
NOTES TO FINANCIAL STATEMENTS
For the period ended July 31, 1994 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan New York Municipal High Yield Portfolio (the high yield fund) and
Spartan New York Intermediate Municipal Portfolio ( the intermediate fund)
are funds of Fidelity New York Municipal Trust. Spartan New York Municipal
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.
At a special meeting of the shareholders of the money market fund held on
January 19, 1994, shareholders approved an Agreement and Plan of Conversion
and Termination (the Plan of Conversion), providing for the conversion of
the fund from a separate series of a Massachusetts business trust, to a
separate series of a Delaware business trust, effective March 20, 1994. The
individual investment objective, policies and limitations of the fund
remain the same.
Each fund is authorized to issue an unlimited number of shares. The
following summarizes the significant accounting policies of the high yield
fund, the intermediate fund and the money market fund:
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.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
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 differences are primarily due to differing treatments for
excise tax regulations and losses deferred due to wash sales, and for the
high yield and intermediate funds, futures and options transactions. The
high yield fund also utilized earnings and profits distributed to
shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
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.
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 $89,668,023 and $133,287,151, respectively. The
gross market value of futures contracts opened and closed amounted to
$303,396,449 and $314,328,729, respectively.
INTERMEDIATE FUND. Purchases and sales of securities, other than short-term
securities, aggregated $24,180,772 and $2,163,202, respectively. The gross
market value of futures contracts opened and closed amounted to $11,465,816
and $11,512,309, respectively.
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 $5,510, $520, and $6,748 for the high yield,
intermediate and money market funds, respectively.
5. EXPENSE REDUCTIONS.
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 $63,970.
TO WRITE FIDELITY

INVESTMENT ADVISER
(registered trademark)
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
Fred L. Henning, Jr., Vice President -
MONEY MARKET FUND
Thomas J. Steffanci, Vice President -
HIGH YIELD AND INTERMEDIATE FUNDS
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, 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 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE