FIDELITY
(registered trademark)
NEW YORK
TAX-FREE
PORTFOLIOS
SEMIANNUAL REPORT
JULY 31, 1995
CONTENTS
CHECK PAGE NUMBERS !!!
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
51 FINANCIAL STATEMENTS
NOTES 55 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.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND
MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
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
securities that have grown in value). You can also look at the fund's
income to measure performance. If Fidelity had not reimbursed certain fund
expenses, the past ten years total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Fidelity New York Tax-Free High Yield 7.93% 7.48% 44.78% 123.25%
Lehman Brothers Municipal Bond Index 7.61% 7.87% 47.93% 142.33%
Average New York Municipal Bond Fund 6.73% 5.78% 44.10% 121.76%
Consumer Price Index 1.46% 2.76% 16.95% 41.47%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or 10
years. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, the value of your investment would be $1,050. You can
compare the fund's returns to the performance of the Lehman Brothers
Municipal Bond Index - a broad gauge of the municipal bond market. To
measure how the fund's performance stacked up against its peers, you can
compare it to the average New York municipal bond fund, which reflects the
performance of 91 New York municipal bond funds with similar objectives
tracked by Lipper Analytical Services over the past six months. 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 CPI returns begin on the
month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity New York Tax-Free High Yield 7.48% 7.68% 8.36%
Lehman Brothers Municipal Bond Index 7.87% 8.15% 9.25%
Average New York Municipal Bond Fund 5.78% 7.57% 8.26%
Consumer Price Index 2.76% 3.18% 3.53%
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 10 YEARS
NY Free High YielMunicipal Bond I
07/31/85 10000.00 10000.00
08/31/85 10006.35 9930.20
09/30/85 9823.18 9830.60
10/31/85 10110.88 10167.49
11/30/85 10399.87 10532.20
12/31/85 10627.08 10624.78
01/31/86 11051.88 11250.58
02/28/86 11456.45 11696.78
03/31/86 11455.47 11700.52
04/30/86 11424.67 11709.41
05/31/86 11272.93 11518.78
06/30/86 11371.77 11628.67
07/31/86 11409.58 11699.26
08/31/86 11931.14 12223.04
09/30/86 11920.09 12253.72
10/31/86 12203.79 12465.34
11/30/86 12408.37 12712.28
12/31/86 12414.72 12677.19
01/31/87 12715.11 13058.90
02/28/87 12823.95 13123.15
03/31/87 12728.11 12984.04
04/30/87 11887.40 12332.50
05/31/87 11781.06 12271.34
06/30/87 11973.37 12631.62
07/31/87 12126.99 12760.46
08/31/87 12166.03 12789.18
09/30/87 11480.84 12317.64
10/31/87 11629.24 12361.24
11/30/87 11860.51 12684.00
12/31/87 12115.97 12868.04
01/31/88 12660.25 13326.40
02/29/88 12797.41 13467.26
03/31/88 12462.27 13310.37
04/30/88 12512.54 13411.52
05/31/88 12574.55 13372.77
06/30/88 12793.77 13568.41
07/31/88 12878.22 13656.88
08/31/88 12918.14 13668.89
09/30/88 13188.20 13916.30
10/31/88 13496.66 14161.92
11/30/88 13353.43 14032.20
12/31/88 13560.04 14175.75
01/31/89 13721.68 14468.90
02/28/89 13612.85 14303.81
03/31/89 13587.04 14269.63
04/30/89 13989.98 14608.39
05/31/89 14238.42 14911.80
06/30/89 14439.56 15114.31
07/31/89 14569.22 15320.01
08/31/89 14492.06 15170.03
09/30/89 14430.37 15124.52
10/31/89 14510.77 15309.04
11/30/89 14719.32 15576.95
12/31/89 14818.68 15704.68
01/31/90 14736.64 15630.87
02/28/90 14833.91 15769.98
03/31/90 14795.62 15774.71
04/30/90 14636.48 15661.13
05/31/90 14965.90 16002.55
06/30/90 15166.38 16143.37
07/31/90 15420.11 16380.68
08/31/90 15165.97 16143.16
09/30/90 15163.35 16152.84
10/31/90 15252.69 16445.21
11/30/90 15525.17 16775.76
12/31/90 15573.23 16849.57
01/31/91 15784.51 17075.35
02/28/91 15884.47 17223.91
03/31/91 15959.85 17230.80
04/30/91 16186.62 17459.97
05/31/91 16302.92 17615.36
06/30/91 16350.75 17597.75
07/31/91 16607.31 17812.44
08/31/91 16810.44 18047.56
09/30/91 17099.24 18282.18
10/31/91 17274.79 18446.72
11/30/91 17350.49 18498.37
12/31/91 17657.32 18896.09
01/31/92 17504.55 18939.55
02/29/92 17579.41 18945.23
03/31/92 17604.73 18952.81
04/30/92 17772.87 19121.49
05/31/92 18046.10 19347.12
06/30/92 18404.15 19672.15
07/31/92 18975.78 20262.32
08/31/92 18731.02 20063.75
09/30/92 18842.31 20194.16
10/31/92 18548.92 19996.26
11/30/92 18977.10 20354.19
12/31/92 19242.61 20561.81
01/31/93 19479.13 20800.32
02/28/93 20240.69 21553.29
03/31/93 20024.17 21324.83
04/30/93 20226.53 21540.21
05/31/93 20355.17 21660.84
06/30/93 20700.56 22022.57
07/31/93 20719.19 22051.20
08/31/93 21195.30 22509.87
09/30/93 21415.98 22766.48
10/31/93 21432.90 22809.73
11/30/93 21204.90 22609.01
12/31/93 21724.00 23086.06
01/31/94 21953.75 23349.24
02/28/94 21301.45 22744.50
03/31/94 20209.38 21818.79
04/30/94 20373.60 22004.25
05/31/94 20594.25 22195.69
06/30/94 20342.70 22066.96
07/31/94 20772.21 22470.78
08/31/94 20853.24 22549.43
09/30/94 20437.97 22217.95
10/31/94 19953.72 21822.47
11/30/94 19341.05 21427.49
12/31/94 19982.95 21898.89
01/31/95 20684.88 22525.20
02/28/95 21394.45 23180.68
03/31/95 21640.15 23447.26
04/30/95 21682.48 23475.40
05/31/95 22465.78 24224.26
06/30/95 22191.40 24013.51
07/31/95 22325.43 24233.00
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity New York
Tax-Free High Yield Portfolio on July 31, 1985. As the chart shows, by July
31, 1995, the value of your investment would have grown to $22,325 - a
123.25% 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 $24,233 - a
142.33% 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,
1995 1995 1994 1993 1992 1991
Dividend return 2.83% 5.27% 5.78% 6.74% 6.95% 7.11%
Capital appreciation
return 5.10% -11.05% 6.92% 4.54% 3.95% 0.00%
Total return 7.93% -5.78% 12.70% 11.28% 10.90% 7.11%
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, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 5.21(cents) 31.63(cents) 65.46(cents)
Annualized dividend rate 5.11% 5.37% 5.65%
30-day annualized yield 4.98% - -
30-day annualized tax-equivalent yield 8.85% - -
</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 $12.00 over
the past month, $11.88 over the past six months and $11.59 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 43.71% combined effective 1995 federal, state and New York City tax
bracket.
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. Better than its peers. For the six- and 12-month periods ended July 31,
1995, the fund had total returns of 7.93% and 7.48%, respectively. For the
same six- and 12-month periods, the average New York municipal bond fund
returned 6.73% and 5.78%, respectively, as tracked by Lipper Analytical
Services.
Q. WHAT HAS THE ENVIRONMENT BEEN LIKE FOR MUNICIPAL BONDS OVER THE PAST SIX
MONTHS?
A. The Federal Reserve Board continued on a course of raising interest
rates into February 1995, when it raised short-term interest rates by
one-half-percentage point. Despite that, investors entered the period
believing that the Fed might be at the end of its tightening cycle. That's
because they reasoned that previous interest rate hikes were enough to slow
the economy and stave off inflation and that the Fed would be willing to
stop raising, or even lower, interest rates later in the year. That
assumption proved to be correct and interest rates generally fell during
the period, culminating with the Fed cutting short-term interest rates by
0.25% in July. A slow-growth economy, combined with relatively low
inflation and lower interest rates, provided a favorable backdrop for
tax-free and taxable bonds alike. A lack of new supply caused tax-free
bonds to outperform taxable bonds during the first quarter of 1995. But by
April, municipals paused to catch their breath after posting such strong
first-quarter gains and they underperformed Treasuries. What's more,
discussion about several federal income tax reform proposals, including a
flat tax proposal in which all individuals would be taxed at a uniform rate
and deductions would be eliminated, caused investors to worry about the
future attractiveness of municipal bonds.
Q. TURNING TO THE NEW YORK MUNICIPAL MARKET, WHAT FACTORS DETERMINED ITS
RECENT PERFORMANCE?
A. New York state and New York City stopped issuing new bonds during the
first several months of 1995 as each wrestled with its respective budgetary
problems. That caused the total supply of New York bonds to dwindle and
helped the New York municipal market to outperform the national market
during that time. As the year progressed, however, the state's and New York
City's budgetary problems became more difficult. Meanwhile, investors began
to anticipate that once both budgets had been worked out there would be a
flood of new bonds issued. The severity of the budget problems coupled with
an anticipated increase in supply caused the New York municipal market to
perform more in line with the national market in the second half of the
period.
Q. WHY DID THE FUND OUTPERFORM THE AVERAGE NEW YORK TAX-FREE FUND?
A. In late 1994, I had invested in out-of-favor deep discount bonds, which
sell well below their stated value, and non-callable bonds, which can't be
redeemed by their issuer before their scheduled maturity date. Because they
were out of favor, these bonds were priced cheaply compared to what I
believed to be their real value. Since the prices of both types tend to be
relatively sensitive to changes in interest rates, they came back into
favor in 1995 when interest rates were falling and ultimately helped the
fund's performance.
Q. DID YOU MODIFY THE WAY IN WHICH THE FUND IS INVESTED IN BONDS WITH
VARIOUS MATURITIES?
A. Yes, and here's why. The yield curve, which measures the difference in
yield among bonds with various maturities, was relatively flat in late 1994
and early 1995. That meant that investors weren't rewarded with enough
incremental yield for buying bonds with longer maturities. As a result, at
the beginning of the period, I started positioning the fund so that it had
a relatively heavy weighting in bonds maturing in less than 15 years. That
structure benefited the fund's performance during the municipal market's
rally when the yield curve steepened dramatically. During this steepening
process, the value of shorter-term bonds generally rose more than that of
longer-term bonds. The municipal yield curve is reaching historically steep
levels and the yield advantage of owning longer-term bonds has increased
somewhat. So, I sold some bonds with maturities of less than 15 years, and
bought some bonds with maturities of 20 years or more.
Q. WHERE ELSE HAVE YOU FOUND OPPORTUNITIES AND WHICH AREAS HAVE YOU
AVOIDED?
A. State-appropriated and New York City bonds were two of the opportunities
I took advantage of during the period. At one point, I sold some
state-appropriated bonds, which rely on annual appropriations by the state
legislature to meet all or part of their principal and interest payments,
when they looked to me to be fairly priced. Unfortunately, I wasn't able to
sell as many state-appropriated bonds as I wanted to at the time.
Conversely, bonds issued by New York City looked to me to be cheap at
times, relative to what I thought their value was, so I bought some in
anticipation of them returning to more of a fair value. But because I think
the city will continue to face some budgetary pressures, I've purposely
kept the fund under-weighted, relative to the New York market as a whole,
in New York City bonds.
Q. WHAT FACTORS DO YOU THINK WILL DETERMINE THE MUNICIPAL BOND MARKET'S
DIRECTION OVER THE NEXT SIX MONTHS?
A. The economy is at a pivotal point right now and there aren't any
definitive signs about whether we are heading into a "soft landing" where
economic growth is slow but steady and inflation stays low, or into a
recession or into a fast-growing, inflationary environment. The answer to
that will be the main determinant of the future direction of the municipal
market. As I've already mentioned, New York state and New York City
continue to experience budgetary challenges. How successfully their
respective governments resolve those problems will also have an impact on
the New York municipal market. We could see the municipal market hiccup now
and then as the possibility of a flat tax fades in and out of public view.
But in my view, it's unlikely that a flat tax will be enacted before 1997,
if ever, and the market appears to have overreacted. On a more positive
note, the net amount of municipal bonds outstanding is shrinking. If you
assume that demand for tax-free bonds remains static, lower supply could be
a positive for the municipal market.
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, 1995,
more than $418 million
MANAGER: Norm Lind, since
1993; manager, Fidelity New
York Tax-Free Insured
Portfolio, since 1994; Spartan
New York Municipal High
Yield Portfolio, since 1993;
Spartan Municipal Income
Portfolio, since 1990; joined
Fidelity in 1986
(checkmark)
NORM LIND ON THE
NEW YORK ECONOMY:
"Local and state economic
factors ultimately will help to
determine the overall credit
quality of bonds issued in
New York. That said, there
are a number of factors I'm
currently keeping an eye on. I
think that over the next year
the state's overall economy
will grow at a pace slightly
slower than the nation as a
whole. And in my view,
upstate will show the most
growth, so that's where I'll
probably focus in the months
ahead. Additionally, I'll
probably concentrate on
bonds that have their own
dedicated revenue stream
and aren't as susceptible to
the economy's ups and
downs. For the time being, I'll
most likely continue to
underweight the fund in bonds
issued by New York City.
Reductions in state and
federal government aid are
likely to reduce the number of
governmental jobs located in
the city, thereby putting
pressure on the city's
employment rate."
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF JULY 31, 1995
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO
Transportation 23.7 26.4
Lease Revenue 13.2 14.7
General Obligation 11.0 13.1
Water & Sewer 8.1 5.4
Special Tax 7.6 9.7
AVERAGE YEARS TO MATURITY AS OF JULY 31, 1995
6 MONTHS AGO
Years 14.9 18.8
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF JULY 31, 1995
6 MONTHS AGO
Years 7.8 8.8
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF JULY 31, 1995 AS OF JANUARY 31, 1995
Aaa 24.1%
Aa, A 31.9%
Baa 35.2%
Non-rated 0.7%
Short-term
investments 8.1%
Aaa 7.3%
Aa, A 41.0%
Baa 45.6%
Non-rated 1.2%
Short-term
investments 4.9%
Row: 1, Col: 1, Value: 24.1
Row: 1, Col: 2, Value: 31.9
Row: 1, Col: 3, Value: 35.2
Row: 1, Col: 4, Value: 1.7
Row: 1, Col: 5, Value: 8.1
Row: 1, Col: 1, Value: 7.3
Row: 1, Col: 2, Value: 41.0
Row: 1, Col: 3, Value: 45.6
Row: 1, Col: 4, Value: 2.2
Row: 1, Col: 5, Value: 4.9
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO
INVESTMENTS JULY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL BONDS - 91.9%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 76.2%
Babylon Ind. Dev. Agcy. Resource Recovery Rev.
(Odgen Martin Sys. Babylon, Inc. Co.)
Series B, 8.50% 1/1/19 (e) Baa1 $ 2,085,000 $ 2,270,044
Erie County Gen. Oblig. Rev. Series B:
5.50% 6/15/14 (FGIC Insured) Aaa 1,500,000 1,438,125
5.625% 6/15/20 (FGIC Insured) Aaa 1,000,000 956,250
Erie County Wtr. Auth. Impt. & Extension Rev.
3rd Series, 6.10% 12/1/04
(Escrowed to Maturity) (c) A 2,000,000 2,165,000
Franklin County Ctfs. of Prtn. (Court House
Redev. Proj.) 8.125% 8/1/06 BBB- 880,000 974,600
Hempstead Town Ind. Dev. Agcy. Resource
Recovery Rev. (American Rfdg. Fuel Co.)
7.40% 12/1/10 Baa1 8,525,000 8,908,625
New York City Gen. Oblig. Rev.:
Series A, 7.50% 3/15/00 Baa1 1,200,000 1,300,500
Series B:
7.50% 2/1/06 Baa1 5,000,000 5,450,000
Sub-Series B-1, 7.20% 8/15/08 Baa1 1,000,000 1,065,000
Series C, 6.40% 8/1/03 Baa1 2,000,000 2,047,500
Series H:
7% 2/1/05 Baa1 2,000,000 2,127,500
7% 2/1/06 Baa1 3,500,000 3,723,125
New York City Hsg. Dev. Corp. Mtg. Rev.
(Multi-Family Hsg.) Series A, 8.125%
1/1/19 (GNMA Coll.) AA 4,175,000 4,352,438
New York City Ind. Dev. Agcy. Civic Facs. Rev.
(Rockefeller Foundation Proj.)
5.25% 7/1/13 Aaa 2,250,000 2,154,375
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev.:
Series A:
7.40% 6/15/04
(Pre-Refunded to 6/15/00 @
101.5) (c) A 1,250,000 1,431,250
7.375% 6/15/09
(Pre-Refunded to 6/15/99 @
101.5) (c) A 3,850,000 4,321,625
Series 1992 A, 7% 6/15/09 A 5,000,000 5,418,750
Series 1994 A, 7.10% 6/15/12 A 1,000,000 1,087,500
7% 6/15/16 (FGIC Insured)
(Pre-Refunded to 6/15/01 @ 101.5) (c) Aaa 500,000 569,375
New York State Dorm. Auth. Rev. Crossover
Rfdg. (City Univ. Sys.):
Series D, 5.75% 7/1/12 Baa1 4,230,000 3,997,350
7.625% 7/1/14 Baa1 1,500,000 1,580,625
New York State Dorm. Auth. Rev.:
(City Univ. Sys.):
Rfdg. Series C, 8.20% 7/1/14 Baa1 1,000,000 1,102,500
Series 1988 D, 8.20% 7/1/12 Baa1 1,260,000 1,389,150
5.20% 7/1/05 (FGIC Insured) Aaa 2,310,000 2,307,113
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev. - continued
(City Univ. Sys. Consolidated):
Series A, 7.625% 7/1/20
(Pre-Refunded to 7/1/00 @ 102) (c) Aaa $ 5,000,000 $ 5,800,000
Series D, 7% 7/1/09 (e) Baa1 5,000,000 5,481,250
2nd Gen. Series A, 5.75% 7/1/07 Baa1 3,000,000 2,928,750
2nd Gen. Series A, 5.75% 7/1/09 Baa1 5,630,000 5,411,838
(Columbia Univ.) Series A, 4.75% 7/1/14 Aaa 6,790,000 5,881,838
(Court Facs. Lease) Series A, 5.50%
5/15/10 Baa1 3,600,000 3,343,500
(Crouse Irving Mem. Hosp.)
10.50% 7/1/17 (HIB Insured) A+ 750,000 778,125
(Fordham Univ.) 5.75% 7/1/15
(FGIC Insured) Aaa 1,700,000 1,655,375
(Judicial Facs. Lease) Series B, 7%
4/15/16 Baa1 2,000,000 2,120,000
(State Univ. Edl. Facs.):
Rfdg. Series A, 5.25% 5/15/15 Baa1 10,055,000 8,911,244
Rfdg. Series B, 5.25% 5/15/05 Baa1 3,500,000 3,390,625
Rfdg. Series B, 7.375% 5/15/14 Baa1 275,000 297,344
Series A, 7.70% 5/15/12
(Pre-Refunded to 5/15/00 @ 102) (c) Aaa 6,000,000 6,960,000
New York State Envir. Facs. Corp. Poll. Cont.
Rev.:
5.60% 9/15/13 Aaa 3,415,000 3,342,431
(State Wtr. Revolving Fund):
Rfdg. (City Proj.) 5.75% 6/15/09 Aa 2,500,000 2,506,250
(City Proj.) Series A, 7% 6/15/12 Aa 3,000,000 3,300,000
Series D, 6.10% 5/15/03 Aaa 2,240,000 2,424,800
Series D, 6.20% 11/15/04 Aaa 1,250,000 1,368,750
Series E, 6.50% 6/15/14 Aa 3,500,000 3,675,000
(State Wtr. Revolving Fund Pooled Loan)
Series B, 5.20% 5/15/14 Aaa 2,220,000 2,056,275
New York State Gen. Oblig. Crossover Rev.
Rfdg. 7.50% 11/15/00 A 2,000,000 2,272,500
New York State Gen. Oblig. Rev. 6.75%
8/1/09 (AMBAC Insured) Aaa 2,500,000 2,737,500
New York State Hsg. Fin. Agcy. Rev.
(St. John Village Proj.) Section 8, 8.25%
5/1/09 A 5,555,000 5,679,988
New York State Local Gov't. Assistance Corp.
Rev.:
Rfdg. Series C, 5.50% 4/1/17 (e) A 15,400,000 14,264,250
Rfdg. Series E, 5.25% 4/1/16 A 4,500,000 4,089,375
Series A, 5.25% 4/1/19 A 5,000,000 4,425,000
Series B, 7.375% 4/1/12
(Pre-Refunded to 4/1/01 @ 102) (c) Aaa 2,795,000 3,235,213
5.50% 4/1/23 A 10,000,000 9,037,500
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Med. Care Facs. Fin. Agcy. Rev.:
Rfdg. (Good Samaritan Hosp. Proj.)
Series A, 8% 11/1/13 A $ 3,500,000 $ 3,749,375
Rfdg. (Presbyterian Hosp.)
Series A, 5.25% 8/15/14 Aa 3,000,000 2,718,750
(Hosp. & Nursing Home):
(Mt. Sinai Hosp.) Series 1992 C,
5.75% 8/15/19 (FHA Guaranteed) AAA 2,000,000 1,912,500
(Richland Hosp.) Series B, 9.125% 2/15/25
(FHA Guaranteed) (e) AA 1,380,000 1,409,325
(Montefiore Med. Ctr.) (Insured Mtg.) Series A,
5.75% 2/15/15 (AMBAC Insured) Aaa 4,675,000 4,563,969
(Nursing Home Mtg.) Series B, 10.50%
1/15/24 (FHA Guaranteed) A 1,000,000 1,003,750
(St. Francis Hosp. Proj.) Series A, 7.625%
11/1/21 (FGIC Insured) Aaa 1,340,000 1,453,900
New York State Med. Care Facs. Fin. Agcy.
Special Oblig. Rev. (Mental Health Care
Svcs. Facs. Impt.) Series A, 8.40% 5/1/06
(Escrowed to Maturity) (c) Aaa 1,000,000 1,251,250
New York State Med. Care Facs. Rev.:
8.875% 8/15/07 Baa1 4,225,000 4,621,094
7.875% 8/15/20 Baa1 1,210,000 1,350,662
7.50% 2/15/21 Baa1 135,000 149,006
New York State Metropolitan Trans. Auth. Svc.
Contract Trans. Facs.:
Rfdg. Series 7, 5.45% 7/1/07 Baa1 1,700,000 1,634,125
Series 3, 7.375% 7/1/08 Baa1 5,400,000 6,054,750
New York State Metropolitan Trans. Auth. Trans.
Facs. Rev. Rfdg. Series K, 6.30% 7/1/06
(MBIA Insured) Aaa 5,000,000 5,443,750
New York State Pwr. Auth. & Gen. Purp. Rev.:
Rfdg., Series W, 6.625% 1/1/03 Aa 2,175,000 2,419,687
Series CC, 5.125% 1/1/11 (FGIC Insured) Aaa 7,000,000 6,545,000
New York State Thruway Auth. Svc. Contract
Rev. (Local Hwy. & Bridge):
4.90% 4/1/01 Baa1 5,365,000 5,190,637
5.75% 4/1/09 (MBIA Insured) Aaa 1,875,000 1,891,406
7.25% 1/1/10 Baa1 2,500,000 2,668,750
5.25% 4/1/13 Baa1 4,500,000 3,988,125
New York State Tollway Auth. Gen. Rev.:
Series A, 5.75% 1/1/12 A1 1,250,000 1,221,875
Series B, 5% 1/1/14 (MBIA Insured) Aaa 6,290,000 5,629,550
Series B, 5% 1/1/20 (MBIA Insured) Aaa 4,100,000 3,582,375
New York State Tollway Auth. Hwy. & Bridge
Trust Fund, Series A:
6% 4/1/00 (AMBAC Insured) Aaa 2,500,000 2,646,875
6.25% 4/1/04 (MBIA Insured) Aaa 2,340,000 2,550,600
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Urban Dev. Corp. Rev.:
Rfdg. (Correctional Cap. Facs.)
Series A:
6.30% 1/1/03 Baa1 $ 2,270,000 $ 2,369,312
6.40% 1/1/04 Baa1 2,730,000 2,859,675
(Clarkson Ctr. Loan Proj.) 7.80% 1/1/20 Baa1 4,100,000 4,479,250
(Onondadga County Convention Proj.):
7.875% 1/1/10 Baa1 3,000,000 3,348,750
7.875% 1/1/20 Baa1 2,250,000 2,500,312
North Hempstead Solid Waste Mgmt. Auth. Rev.
Rfdg. Series B, 5% 2/1/12 (MBIA Insured) Aaa 4,000,000 3,650,000
Oswego County Pub. Impt. Unltd. Tax:
6.70% 6/15/10 A 1,100,000 1,190,750
6.70% 6/15/11 A 1,100,000 1,188,000
6.70% 6/15/12 A 1,100,000 1,192,125
Suffolk County Wtr. Auth. Wtrwks. Rev.:
5% 6/1/15 (MBIA Insured) Aaa 6,000,000 5,370,000
5% 6/1/17 (MBIA Insured) Aaa 2,000,000 1,770,000
Syracuse Ind. Dev. Agcy. Civic Facs. Rev.
(St. Joseph's Hosp. Health Ctr. Proj.)
7.50% 6/1/18 Baa1 1,265,000 1,331,412
Syracuse Ind. Dev. Agcy. Parking Facs. Rev.
(Syracuse Econ. Dev. Corp.) Series 1990 A,
7.70% 6/1/15 (Pre-Refunded to
6/1/99 @ 102) (c) A 2,445,000 2,778,131
Tonawanda Hsg. Dev. Corp. 1st Lien Rev.
(Tonawanda Tower Proj.) Section 8:
10% 5/1/06 - 105,000 108,544
10% 5/1/07 - 130,000 134,387
10% 5/1/08 - 310,000 320,462
10% 5/1/09 - 340,000 351,475
10% 5/1/10 - 375,000 387,656
10% 5/1/11 - 410,000 423,837
10% 5/1/12 - 315,000 325,631
Triborough Bridge & Tunnel Auth. Rev.:
(Convention Ctr. Proj.) Series E:
7.25% 1/1/10 Baa1 2,000,000 2,227,500
6% 1/1/11 Baa1 2,500,000 2,459,375
(Gen. Purp.):
Rfdg. Series A, 4.50% 1/1/05 Aa 2,310,000 2,229,150
Rfdg. Series Y, 6% 1/1/12 Aa 4,500,000 4,629,375
Series A, 4.60% 1/1/04 Aa 4,000,000 3,925,000
Series A, 4.75% 1/1/19 (e) Aa 9,115,000 7,611,025
6% 1/1/03 Aa 2,500,000 2,703,125
Watervliet Elderly Hsg. Corp. Rev.:
8% 11/15/00 - 95,000 97,494
8% 11/15/01 - 95,000 97,494
8% 11/15/02 - 100,000 102,625
8% 11/15/03 - 100,000 102,625
8% 11/15/04 - 95,000 97,494
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Watervliet Elderly Hsg. Corp. Rev. - continued
8% 11/15/05 - $ 95,000 $ 97,375
8% 11/15/06 - 100,000 102,375
8% 11/15/07 - 100,000 102,375
8% 11/15/08 - 100,000 102,250
8% 11/15/09 - 100,000 102,250
318,032,743
NEW YORK & NEW JERSEY - 5.4%
New York & New Jersey Port Auth. Rev.:
Consolidated 85th Series:
5.20% 9/1/15 A1 3,800,000 3,486,500
5.375% 3/1/28 A1 15,525,000 14,147,156
Rfdg. Consolidated 86th Series,
5.20% 7/1/11 A1 2,910,000 2,742,675
Consolidated 91st Series, 5% 11/15/07 A1 2,000,000 1,950,000
22,326,331
PUERTO RICO - 9.7%
Puerto Rico Commonwealth Aqueduct & Swr.
Auth. Rev. Series A, 7.875% 7/1/17 Baa 1,475,000 1,631,719
Puerto Rico Commonwealth Hwy. & Trans. Rev.
Rfdg. Series X:
5.50% 7/1/13 Baa1 15,000,000 14,137,500
5% 7/1/22 Baa1 2,000,000 1,687,500
Puerto Rico Pub. Bldgs. Auth. Guaranteed Pub.
Ed. & Health Facs. Rev. Rfdg. Series M,
5.50% 7/1/21 Baa1 2,400,000 2,193,000
Puerto Rico Pub. Bldgs. Auth. Rev. Rfdg.
Series L, 5.50% 7/1/21 Baa1 3,000,000 2,741,250
Puerto Rico Commonwealth Urban Renewal &
Hsg. Corp. Rev. Rfdg. 7.875% 10/1/04 Baa1 6,270,000 6,975,375
Puerto Rico Ind., Med. & Envir. Poll. Cont. Facs.
Fing. Auth. Rev. (American Home)
Series A, 5.10% 12/1/18 A2 1,250,000 1,098,438
Puerto Rico Tel. Auth. Rev.:
Series N, 5.50% 1/1/13 A 1,000,000 952,500
4% 8/10/95 (MBIA Insured) Aaa 5,000,000 5,000,000
6.561% 1/16/15 (MBIA Insured) INFL (d) Aaa 4,800,000 4,314,000
40,731,282
GUAM - 0.6%
Guam Pwr. Auth. Rev. Series A, 5.25% 10/1/13 BBB 2,795,000 2,477,069
TOTAL MUNICIPAL BONDS
(Cost $374,781,176) 383,567,425
MUNICIPAL NOTES (A) - 8.1%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 8.1%
Erie County RAN 4.75% 8/15/95,
LOC Union Bank of Switzerland MIG 1 $ 6,000,000 $ 6,001,980
New York City Trust For Cultural Resource Rev.
(Guggenheim Foundation) Series 1990 B,
3.75%, LOC Swiss Bank, VRDN VMIG 1 4,600,000 4,600,000
New York State Dorm. Auth. Rev. (Cornell Univ.)
Series 1990 B, 2.75%, BPA Morgan Guaranty,
VRDN VMIG 1 3,700,000 3,700,000
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev., VRDN:
(Central Hudson Gas & Elec.) Series 1985 B,
3.70%, LOC Deutsche Bank - 7,900,000 7,900,000
(Niagra Mohawk Proj.):
Series 1985 A, 4.30%,
LOC Toronto-Dominion Bank Canada A-1+ 2,900,000 2,900,000
Series 1987 A, 4.15%,
LOC Toronto-Dominion Bank Canada - 3,500,000 3,500,000
Westchester County Gen. Oblig. TAN
5% 12/14/95 - 5,000,000 5,023,450
TOTAL MUNICIPAL NOTES
(Cost $33,610,573) 33,625,430
TOTAL INVESTMENTS - 100%
(Cost $408,391,749) $ 417,192,855
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
100 Municipal Bond Contracts Sept. 1995 $ 11,287,500 $ (317,313)
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.7%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
RAN - Revenue Anticipation Notes
TAN - Tax 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) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(c) Security collateralized by an amount sufficient to pay interest and
principal.
(d) 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.
(e) A portion of the Security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $14,642,413.
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 53.1% AAA, AA, A 59.3%
Baa 34.4% BBB 30.3%
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 0.7%. FMR has
determined that unrated debt securities that are lower quality account for
0.0% 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 23.7%
Lease Revenue 13.2
General Obligation 11.0
Others
(individually less than 10%) 52.1
TOTAL 100.0%
INCOME TAX INFORMATION
At July 31, 1995, the aggregate cost of investment securities for income
tax purposes was $408,568,047. Net unrealized appreciation aggregated
$8,624,808, of which $14,503,137 related to appreciated investment
securities and $5,878,329 related to depreciated investment securities.
At January 31, 1995, the fund elected to defer to its fiscal year ending
January 31, 1996 $7,713,765 of losses recognized during the period November
1, 1994 to January 31, 1995.
At January 31, 1995, the fund was required to defer $376,121 of losses on
futures contracts and options.
FIDELITY NEW YORK TAX-FREE HIGH YIELD PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995 (UNAUDITED)
1.ASSETS 2. 3.
4.Investment in securities, at value (cost $408,391,749) 5. $ 417,192,855
- -
See accompanying schedule
6.Interest receivable 7. 5,310,840
8.Receivable for daily variation on futures contracts 9. 40,625
10. 11.TOTAL ASSETS 12. 422,544,320
13.LIABILITIES 14. 15.
16.Payable to custodian bank $ 27,156 17.
18.Payable for investments purchased 3,285,141 19.
20.Payable for fund shares redeemed 315,637 21.
22.Distributions payable 349,708 23.
24.Accrued management fee 139,864 25.
26.Other payables and accrued expenses 74,028 27.
28. 29.TOTAL LIABILITIES 30. 4,191,534
31.32.NET ASSETS 33. $ 418,352,786
34.Net Assets consist of: 35. 36.
37.Paid in capital 38. $ 420,778,532
39.Accumulated undistributed net realized gain (loss) 40. (10,909,539)
on investments
41.Net unrealized appreciation (depreciation) 42. 8,483,793
on investments
43.44.NET ASSETS, for 35,021,512 shares outstanding 45. $ 418,352,786
46.47.NET ASSET VALUE, offering price and redemption 48. $11.95
price per share ($418,352,786 (divided by) 35,021,512 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1995 (UNAUDITED)
49.50.INTEREST INCOME 51. $ 12,183,032
52.EXPENSES 53. 54.
55.Management fee $ 835,237 56.
57.Transfer agent, accounting and custodian fees 344,440 58.
and expenses
59.Non-interested trustees' compensation 983 60.
61.Registration fees 537 62.
63.Audit 22,252 64.
65.Legal 1,063 66.
67.Miscellaneous 1,107 68.
69. 70.TOTAL EXPENSES 71. 1,205,619
72.73.NET INTEREST INCOME 74. 10,977,413
75.REALIZED AND UNREALIZED GAIN (LOSS) 77. 78.
76.Net realized gain (loss) on:
79. Investment securities (2,557,646) 80.
81. Futures contracts (236,777) (2,794,423)
82.Change in net unrealized appreciation (depreciation) 83. 84.
on:
85. Investment securities 22,968,411 86.
87. Futures contracts (166,245) 22,802,166
88.89.NET GAIN (LOSS) 90. 20,007,743
91.92.NET INCREASE (DECREASE) IN NET ASSETS 93. $ 30,985,156
RESULTING FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
94.INCREASE (DECREASE) IN NET ASSETS
95.Operations $ 10,977,413 $ 24,292,710
Net interest income
96. Net realized gain (loss) (2,794,423) (5,917,957)
97. Change in net unrealized appreciation (depreciation) 22,802,166 (48,253,940)
98. 99.NET INCREASE (DECREASE) IN NET ASSETS 30,985,156 (29,879,187)
RESULTING FROM OPERATIONS
100.Distributions to shareholders (10,977,413) (24,292,710)
From net interest income
101. From net realized gain - (7,436,832)
102. In excess of net realized gain - (1,266,843)
103. 104.TOTAL DISTRIBUTIONS (10,977,413) (32,996,385)
105.Share transactions 68,540,072 89,061,235
Net proceeds from sales of shares
106. Reinvestment of distributions 8,750,375 26,647,344
107. Cost of shares redeemed (73,179,573) (150,019,648)
108.109. 4,110,874 (34,311,069)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS
110. 24,118,617 (97,186,641)
111.TOTAL INCREASE (DECREASE) IN NET ASSETS
112.NET ASSETS 113. 114.
115. Beginning of period 394,234,169 491,420,810
116. End of period $ 418,352,786 $ 394,234,169
117.OTHER INFORMATION 119. 120.
118.Shares
121. Sold 5,785,550 7,684,335
122. Issued in reinvestment of distributions 736,614 2,288,470
123. Redeemed (6,168,925) (12,948,285)
124. Net increase (decrease) 353,239 (2,975,480)
</TABLE>
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, NINE MONTHS YEARS ENDED APRIL 30,
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995 1994 C 1993 1992 1991
127.SELECTED PER-SHARE DATA
128.Net asset value, beginning of period
$ 11.370 $ 13.050 $ 12.660 $ 12.100 $ 11.750 $ 11.370
129.Income from Investment Operations
.316 .673 .714 .580 .773 .789
Net interest income
130. Net realized and unrealized gain (loss)
.580 (1.440) .850 .560 .350 .380
131. Total from investment operations
.896 (.767) 1.564 1.140 1.123 1.169
132.Less Distributions
(.316) (.673) (.714) (.580) (.773) (.789)
From net interest income
133. From net realized gain on investments
- - (.210) (.460) - - -
134. In excess of net realized gain on investments
- - (.030) - - - -
135. Total distributions
(.316) (.913) (1.174) (.580) (.773) (.789)
136.Net asset value, end of period
$ 11.950 $ 11.370 $ 13.050 $ 12.660 $ 12.100 $ 11.750
137.TOTAL RETURN B
7.93% -5.78% 12.70% 9.60% 9.80% 10.59%
138.RATIOS AND SUPPLEMENTAL DATA
139.Net assets, end of period (000 omitted)
$ 418,353 $ 394,234 $ 491,421 $ 445,506 $ 412,030 $ 386,169
140.Ratio of expenses to average net assets
.59% .58% .58% .61% .61% .59%
A A
141.Ratio of net interest income to average net assets
5.34% 5.77% 5.45% 6.08% 6.52% 6.81%
A A
142.Portfolio turnover rate
93% 34% 70% 45% 30% 45%
A A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C EFFECTIVE FEBRUARY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INTEREST INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
FINANCIAL HIGHLIGHTS
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells
securities that have grown in value). You can also look at the fund's
income to measure performance. If Fidelity had not reimbursed certain fund
expenses, the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Fidelity New York Tax-Free Insured 7.66% 7.19% 44.14% 115.99%
Lehman Brothers Municipal Bond Index 7.61% 7.87% 47.93% n/a
Average New York Insured
Municipal Bond Fund 6.68% 6.00% 44.76% n/a
Consumer Price Index 1.46% 2.76% 16.95% 40.81%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
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, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Lehman Brothers Municipal Bond Index - a broad gauge of
the municipal bond market. To measure how the fund's performance stacked up
against its peers, you can compare it to the average New York insured
municipal bond fund, which reflects the performance of 14 New York insured
municipal bond funds with similar objectives tracked by Lipper Analytical
Services over the past six months. 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 CPI returns begin on the month end closest to the fund's
start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Fidelity New York Tax-Free Insured 7.19% 7.59% 8.17%
Lehman Brothers Municipal Bond Index 7.87% 8.15% n/a
Average New York Insured
Municipal Bond Fund 6.00% 7.67% n/a
Consumer Price Index 2.76% 3.18% 3.54%
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
NY Free Insured MMunicipal Bond I
10/31/85 10000.00 10000.00
11/30/85 10183.61 10358.70
12/31/85 10408.26 10449.75
01/31/86 10938.77 11065.24
02/28/86 11401.72 11504.09
03/31/86 11420.78 11507.77
04/30/86 11366.44 11516.52
05/31/86 11126.79 11329.03
06/30/86 11241.33 11437.11
07/31/86 11280.58 11506.53
08/31/86 11775.81 12021.68
09/30/86 11753.08 12051.85
10/31/86 12015.66 12259.99
11/30/86 12225.66 12502.86
12/31/86 12212.13 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 11442.65 12069.18
06/30/87 11603.32 12423.53
07/31/87 11732.20 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 11820.05 12656.06
01/31/88 12396.95 13106.87
02/29/88 12487.74 13245.41
03/31/88 12112.05 13091.10
04/30/88 12168.07 13190.59
05/31/88 12186.59 13152.47
06/30/88 12394.35 13344.89
07/31/88 12460.60 13431.90
08/31/88 12492.98 13443.72
09/30/88 12755.43 13687.05
10/31/88 13117.13 13928.63
11/30/88 12907.19 13801.04
12/31/88 13149.65 13942.22
01/31/89 13320.26 14230.55
02/28/89 13155.89 14068.18
03/31/89 13127.72 14034.56
04/30/89 13512.31 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 13943.15 14920.13
09/30/89 13879.48 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 14185.90 15403.14
05/31/90 14559.92 15738.93
06/30/90 14691.47 15877.43
07/31/90 14947.00 16110.83
08/31/90 14698.35 15877.22
09/30/90 14711.16 15886.75
10/31/90 14860.92 16174.30
11/30/90 15162.60 16499.40
12/31/90 15229.86 16572.00
01/31/91 15410.16 16794.06
02/28/91 15533.01 16940.17
03/31/91 15558.78 16946.95
04/30/91 15770.79 17172.34
05/31/91 15924.01 17325.18
06/30/91 15920.14 17307.85
07/31/91 16133.38 17519.01
08/31/91 16377.24 17750.26
09/30/91 16563.80 17981.01
10/31/91 16720.83 18142.84
11/30/91 16760.84 18193.64
12/31/91 17128.35 18584.80
01/31/92 17093.29 18627.55
02/29/92 17129.55 18633.14
03/31/92 17128.25 18640.59
04/30/92 17261.10 18806.49
05/31/92 17535.10 19028.41
06/30/92 17837.14 19348.08
07/31/92 18388.51 19928.53
08/31/92 18151.96 19733.23
09/30/92 18237.10 19861.49
10/31/92 17917.91 19666.85
11/30/92 18363.16 20018.89
12/31/92 18594.29 20223.08
01/31/93 18842.03 20457.67
02/28/93 19640.27 21198.24
03/31/93 19407.54 20973.53
04/30/93 19591.48 21185.37
05/31/93 19696.33 21304.00
06/30/93 20026.53 21659.78
07/31/93 20050.69 21687.94
08/31/93 20500.36 22139.05
09/30/93 20752.18 22391.43
10/31/93 20760.64 22433.98
11/30/93 20533.50 22236.56
12/31/93 20976.22 22705.75
01/31/94 21171.52 22964.60
02/28/94 20532.77 22369.81
03/31/94 19501.74 21459.36
04/30/94 19696.39 21641.77
05/31/94 19930.37 21830.05
06/30/94 19669.29 21703.43
07/31/94 20099.29 22100.61
08/31/94 20122.98 22177.96
09/30/94 19733.12 21851.94
10/31/94 19255.06 21462.98
11/30/94 18700.76 21074.50
12/31/94 19308.31 21538.14
01/31/95 20011.04 22154.13
02/28/95 20684.61 22798.81
03/31/95 20851.46 23061.00
04/30/95 20884.45 23088.67
05/31/95 21574.61 23825.20
06/30/95 21380.21 23617.92
07/31/95 21543.94 23842.29
$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, 1995, the value of your investment
would have grown to $21,544 - a 115.44% 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 $23,833 - a 138.33% 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,
1995 1995 1994 1993 1992 1991
Dividend return 2.67% 5.17% 5.63% 6.28% 6.61% 6.78%
Capital appreciation
return 4.99% -10.65% 6.73% 3.95% 4.31% 1.30%
Total return 7.66% -5.48% 12.36% 10.23% 10.92% 8.08%
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, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 4.68(cents) 28.43(cents) 59.95(cents)
Annualized dividend rate 4.83% 5.08% 5.43%
30-day annualized yield 4.69% - -
30-day annualized tax-equivalent yield 8.33% - -
</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 $11.40 over
the past month, $11.28 over the past six months and $11.04 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 43.71% combined effective 1995 federal, state and New York City tax
bracket.
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. HOW HAS THE FUND DONE, NORM?
A. Fairly well compared to its peers. For the six- and 12-month periods
ended July 31, 1995, the fund had a total return of 7.66% and 7.19%,
respectively. For the same six- and 12-month periods, the average New York
insured municipal bond fund returned 6.68% and 6.00%, respectively, as
tracked by Lipper Analytical Services.
Q. WHAT FACTORS LED TO THE MUNICIPAL BOND MARKET'S REBOUND IN 1995?
A. Indications that the economy was slowing and inflation was moderating
signaled to many investors that the Federal Reserve Board might be willing
to stop raising, or might even lower, interest rates in 1995. Against that
backdrop, municipal bonds enjoyed a strong rebound in the first quarter of
1995 and their performance handily outpaced that of Treasury securities.
However, the municipal bond market rally was stalled in the spring when
investors began to worry that various federal tax reform proposals might
affect the future attractiveness of municipal bonds. The proposal that
caused the municipal market the most concern was the flat-tax proposal,
under which all individuals would be taxed at a uniform rate and deductions
would be eliminated. In my view, it is unlikely that any major tax reform
will be enacted before 1997, and the municipal market overreacted.
Q. MORE SPECIFICALLY, HOW DID THE NEW YORK INSURED SECTOR OF THE MUNICIPAL
BOND MARKET DO?
A. Generally speaking, New York bonds outperformed the national municipal
market during the first several months of the period. That was primarily
due to a relatively low supply of New York bonds available. The state and
New York City were working through their respective budgets and their
issuance of new bonds came to a halt. Once the state and New York City had
completed their budgets, there was a flood of new bonds issued and supply
was abundant. During that period, the New York municipal market performed
more in line with the national market. Concerns about Orange County,
California's, credit quality deterioration resulting from its declaring
bankruptcy in 1994 caused many investors to seek out insured bonds. As a
result, insured bonds in New York and elsewhere generally outpaced
lower-quality bonds during the period.
Q. WHAT STRATEGIES HELPED THE FUND COME OUT AHEAD OF THE AVERAGE FUND OF
ITS TYPE?
A. Two factors contributed to most of the fund's outperformance relative to
the average. The first was the fund's structure. The yield curve, which
measures the difference in yield among bonds with various maturities, was
relatively flat at the beginning of the period. When the curve is flat,
investors aren't rewarded with a relatively large amount of additional
yield by investing in longer-term bonds. So at the beginning of the period,
I had started buying bonds that matured in 15 years or less. During the
market's rally, that structure helped the fund's performance. That's
because the yield curve steepened, and the value of shorter-term bonds
generally rose more than that of longer-term bonds.
Q. DID YOU ALTER THAT STRATEGY AT SOME POINT DURING THE PERIOD?
A. Yes, because as the yield curve steepened, the yield advantage of
longer-term bonds started to increase. So I am reducing the fund's stake in
bonds that mature in 15 years or less and replacing them with bonds
maturing in
20 years or more.
Q. WHAT WAS THE SECOND REASON FOR THE FUND'S OUTPERFORMANCE?
A. Late last year I had purchased some out-of-favor bonds, including
non-callable bonds, which can't be redeemed before their maturity date by
their issuer, and deep discount bonds, which sell well below their face
value. These bonds are relatively sensitive to changes in interest rates,
and as a result, moved back into investors' favor as the municipal bond
market rallied. As they became more popular, their prices generally rose
and helped the fund's performance.
Q. WHERE HAVE YOU FOUND OPPORTUNITIES AND WHAT AREAS HAVE YOU AVOIDED?
A. I sold some water bonds issued by New York City during the period, which
brought the fund's stake in water and sewer bonds down to 14.1% at the end
of the period, from 20.8% six months earlier. I sold these bonds because
the city is planning to sell the utility later this year to a separate
entity. When that occurs, the supply of these bonds available will increase
and I anticipate that their prices will cheapen up. On the other hand, I
increased the fund's stake in escrowed or pre-refunded bonds to 12.1% of
investments at the end of the period, from 1.6% six months earlier. These
bonds are backed by U.S. Treasury securities. That means that their
principal and interest payments are backed by the full faith and credit of
the U.S. government. When I purchased many of these bonds, they looked
relatively cheap on a historical basis and I bought them in anticipation of
their returning to more normal values.
Q. WHAT'S YOUR OUTLOOK?
A. That depends upon a number of factors, including the strength of the
economy, the rate of inflation and the direction of interest rates. We
could see some volatility in the municipal market as various tax reform
proposals fade in and out of public view. As far as the New York municipal
market goes, there are some unanswered questions. Both the state and New
York City are wrestling with some important budget challenges. How
successfully they meet those challenges could affect the entire New York
municipal market. Supply and demand is likely to be an important factor.
The net amount of municipal bonds outstanding is shrinking. If you assume
that demand for tax-free bonds remains constant, lower supply could be a
positive for the municipal market.
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 that
guarantee the timely payment
of principle and interest
START DATE: October 11, 1985
SIZE: as of July 31, 1995,
more than $322 million
MANAGER: Norm Lind, since
1994; manager, Fidelity New
York Tax-Free High Yield
Portfolio, and Spartan New
York Municipal High Yield
Portfolio, since 1993; Spartan
Municipal Income Portfolio,
since 1990; joined Fidelity in
1986
(checkmark)
NORM LIND ON HIS OUTLOOK FOR
THE NEW YORK ECONOMY:
"Local and state economic
factors ultimately will help to
determine the overall credit
quality of bonds issued in
New York. That said, there
are a number of factors I'm
currently keeping an eye on. I
think that over the next year
the state's overall economy
will grow at a pace slightly
slower than the nation as a
whole. And in my view,
upstate will show the most
growth, so that's where I'll
probably focus in the months
ahead. Additionally, I'll
probably concentrate on
bonds that have their own
dedicated revenue stream
and aren't as susceptible to
the economy's ups and
downs. For the time being, I'll
most likely continue to
underweight the fund in bonds
issued by New York City.
Reductions in state and
federal government aid are
likely to reduce the number of
governmental jobs located in
the city, thereby putting
pressure on the city's
employment rate."
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF JULY 31, 1995
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO
Transportation 20.4 21.8
Water & Sewer 14.1 20.8
Lease Revenue 13.9 14.1
General Obligation 13.4 8.4
Escrowed/Pre-Refunded 12.1 1.6
AVERAGE YEARS TO MATURITY AS OF JULY 31, 1995
6 MONTHS AGO
Years 13.9 19.3
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF JULY 31, 1995
6 MONTHS AGO
Years 8.0 9.3
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF JULY 31, 1995 AS OF JANUARY 31, 1995
Aaa 82.4%
Aa, A 9.0%
Baa 2.8%
Short-term
investments 5.8%
Aaa 75.7%
Aa, A 15.3%
Baa 5.9%
Short-term
investments 3.1%
Row: 1, Col: 1, Value: 50.0
Row: 1, Col: 2, Value: 32.4
Row: 1, Col: 3, Value: 9.0
Row: 1, Col: 4, Value: 2.8
Row: 1, Col: 5, Value: 5.8
Row: 1, Col: 1, Value: 50.0
Row: 1, Col: 2, Value: 25.7
Row: 1, Col: 3, Value: 15.3
Row: 1, Col: 4, Value: 5.9
Row: 1, Col: 5, Value: 3.1
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO
INVESTMENTS JULY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL BONDS - 94.2%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 90.1%
Albany County Rfdg. 5% 10/1/12
(FGIC Insured) Aaa $ 6,600,000 $ 6,022,500
Albany Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys.
Rev. Rfdg. Series A, 5.50% 12/1/22
(FGIC Insured) Aaa 8,395,000 7,901,794
Buffalo Swr. Auth. Rev. (Swr. Sys.) Series G:
5.25% 7/1/08 (FGIC Insured) Aaa 6,000,000 5,902,500
5% 7/1/12 (FGIC Insured) Aaa 5,700,000 5,137,125
Cherry Valley Springfield Central School Dist.
Unltd. Tax:
7.80% 5/1/14 (MBIA Insured) Aaa 435,000 538,856
7.80% 5/1/15 (MBIA Insured) Aaa 435,000 542,119
7.80% 5/1/16 (MBIA Insured) Aaa 435,000 541,575
7.80% 5/1/17 (MBIA Insured) Aaa 435,000 544,294
7.80% 5/1/18 (MBIA Insured) Aaa 434,000 545,755
Clifton Park Wtr. Auth. Sys. Rev. Rfdg. 5%
10/1/18 (FGIC Insured) Aaa 1,820,000 1,599,325
Erie County Gen. Oblig. Rev. Series A,
5.50% 6/1/97 (MBIA Insured) Aaa 2,000,000 2,050,000
5.50% 6/1/98 (MBIA Insured) Aaa 2,390,000 2,461,700
Erie County Wtr. Auth. Wtr. Rev. Rfdg.
(Fourth Resolution) 0% 12/1/17
(AMBAC Insured) Aaa 1,210,000 243,512
Monroe County Pub. Impt.:
7% 6/1/03 (FGIC Insured) Aaa 1,000,000 1,142,500
7% 6/1/04 (FGIC Insured) Aaa 2,150,000 2,472,500
Nassau County Gen. Impt. Rev.:
6.30% 11/1/03 (FGIC Insured) Aaa 1,000,000 1,093,750
Rfdg. Series A, 5% 5/1/08 (FGIC Insured) Aaa 2,000,000 1,930,000
Nassau County Gen. Oblig. Rev. Series J,
7.375% 10/15/07 (FGIC Insured)
(Pre-Refunded to 10/15/00 @ 103) (c) Aaa 1,250,000 1,454,688
New York City Edl. Construction Fund 6.25%
10/1/03 (MBIA Insured) Aaa 1,895,000 2,067,919
New York City Gen. Oblig. Rev.:
Series C, Sub-Series C-1,
6.625% 8/1/13 (MBIA Insured)
(Pre-Refunded to 8/1/02 @ 101.5) (c) Aaa 9,370,000 10,599,812
Series H, Sub-Series H-1, 5.70% 8/1/03
(MBIA Insured) Aaa 1,950,000 2,023,125
New York State Dorm. Auth. Rev.:
Rfdg. (Manhattanville) 0% 7/1/10
(MBIA Insured) Aaa 2,175,000 916,219
Rfdg. (New York Univ.) Series A:
5% 7/1/07 (MBIA Insured) Aaa 3,255,000 3,165,487
5% 7/1/11 (MBIA Insured) Aaa 2,000,000 1,817,500
(City Univ.):
Rfdg. Series B, 8.20% 7/1/13
(AMBAC Insured) Aaa 1,500,000 1,693,125
Series F, 5.25% 7/1/06 (FGIC Insured) Aaa 8,225,000 8,214,719
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev. - continued
(City Univ. Sys. Consolidated) Series A:
7.625% 7/1/20
(Pre-Refunded to 7/1/00 @ 102) (c) Aaa $ 5,000,000 $ 5,800,000
5.75% 7/1/06 (FGIC Insured) Aaa 1,750,000 1,820,000
(Children Assoc., Inc.) 7.60% 7/1/18
(MBIA Insured) Aaa 1,500,000 1,623,750
(Columbia Univ.) Series A:
4.40% 7/1/04 Aaa 2,600,000 2,460,250
4.50% 7/1/05 Aaa 2,500,000 2,356,250
(Ideal Senior Living Hsg.) 7.625% 8/1/28
(MBIA Insured) Aaa 2,000,000 2,185,000
(Mount Sinai Medical School) Series A:
5% 7/1/14 (MBIA Insured) Aaa 4,235,000 3,785,031
5% 7/1/15 (MBIA Insured) Aaa 3,000,000 2,673,750
5% 7/1/16 (MBIA Insured) Aaa 5,000,000 4,437,500
(New York State Univ. Edl. Facs.):
Rfdg. Series B:
7.25% 5/15/03
(Pre-Refunded to 5/15/00 @ 102) (c) Aaa 1,545,000 1,761,300
5.25% 5/15/11 (FGIC Insured) Aaa 2,950,000 2,780,375
Series A:
Rfdg.:
5.50% 5/15/07 (FGIC Insured) Aaa 6,700,000 6,808,875
5.50% 5/15/09 (AMBAC Insured) Aaa 6,000,000 5,955,000
5.50% 5/15/13 (AMBAC Insured) Aaa 4,500,000 4,331,250
6.80% 5/15/00 (FGIC Insured) Aaa 2,000,000 2,175,000
7.70% 5/15/12
(Pre-Refunded to 5/15/00 @ 102) (c) Aaa 1,250,000 1,450,000
Series C, 7% 5/15/18 (FSA Insured)
(Pre-Refunded to 5/15/00 @ 102) (c) Aaa 2,000,000 2,260,000
(New York Univ. Law School) 7.625% 7/1/09
(MBIA Insured) (BIG Insured) Aaa 3,090,000 3,399,000
(Rensselaer Polytechnic Institute) 4.90%
7/1/04 (MBIA Insured) Aaa 1,170,000 1,148,062
(Special Act. School Dist. Prog.) 5.80%
7/1/12 (MBIA Insured) Aaa 1,350,000 1,339,875
(St. Vincent's Hosp. & Med. Ctr.):
6% 2/1/03 (AMBAC Insured) Aaa 1,820,000 1,940,575
6% 8/1/03 (AMBAC Insured) Aaa 1,875,000 2,006,250
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 2,534,062
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 1,100,000
Series D, 6.30% 5/15/05 Aaa 2,000,000 2,187,500
New York State Gen. Oblig. Rev.:
7.10% 3/1/01 (AMBAC Insured) Aaa 3,200,000 3,576,000
7.10% 3/1/10 (AMBAC Insured) Aaa 1,720,000 1,874,800
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Gen. Oblig. Unltd. Tax Rev.
7.125% 11/15/10 A $ 2,670,000 $ 2,873,588
New York State Hsg. Fin. Agcy. Svc. Contract
Oblig. Rev. Series A, 7.80% 9/15/11
(Pre-Refunded to 3/15/01 @ 102) (c) Aaa 5,000,000 5,887,500
New York State Local Gov't. Assistance Corp.
Rfdg.:
Series C, 5.50% 4/1/17 A 10,000,000 9,262,500
Series E:
6% 4/1/14 A 4,000,000 4,005,000
5.25% 4/1/16 A 8,000,000 7,270,000
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 4,440,000
(Health Insurance Plan Greater New York)
Series B, 8.50% 11/1/15 (AMBAC Insured)
(Pre-Refunded to 11/1/97 @ 100) (c) Aaa 4,555,000 4,987,725
(Long-Term Health Care) Series A, 6.80%
11/1/14 (Cap. Guaranty Insured) Aaa 1,250,000 1,315,625
(Mary Immogene Basset Hosp.) 7.125%
11/1/20 (MBIA Insured) Aaa 2,290,000 2,496,100
(Mental Health Svcs. Facs. Impt.)
Series D, 7.40% 2/15/18 Baa1 1,640,000 1,787,600
(Montefiore Med. Ctr.) 7.25% 2/15/24
(MBIA Insured) Aaa 2,000,000 2,155,000
(North Shore Univ. Hosp. Mtg. Proj.)
Series A, 7.20% 11/1/20
(MBIA Insured) Aaa 6,000,000 6,577,500
(St. Francis Hosp. Proj.) Series A, 7.625%
11/1/21 (FGIC Insured) Aaa 1,795,000 1,947,575
New York State Metropolitan Trans. Auth. Svc.
Contract Commuter Facs. Rev. Rfdg. Series L,
7.50% 7/1/17 (MBIA Insured) Aaa 4,000,000 4,315,000
New York State Metropolitan Trans. Auth. Trans.
Facs. Rev.,
Rfdg., Series K, 6.30% 7/1/06
(MBIA Insured) Aaa 5,150,000 5,607,063
Rfdg., Series K, 6.625% 7/1/14
(Pre-Refunded to 7/1/02 @ 101.5) (c) Aaa 5,000,000 5,650,000
Rfdg., Series N, 0% 7/1/11
(FGIC Insured) Aaa 5,980,000 2,347,150
Series O, 6.25% 7/1/14
(MBIA Insured) Aaa 3,500,000 3,591,875
New York State Pwr. Auth. & Gen. Purp. Rev.
Rfdg., Series CC, 5.125% 1/1/11
(MBIA Insured) Aaa 8,000,000 7,480,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Tollway Auth. Gen. Rev.:
Series B, 5% 1/1/14 (MBIA Insured) Aaa $ 3,950,000 $ 3,535,250
Series C, 6.50% 1/1/01 (FGIC Insured) Aaa 3,620,000 3,914,125
New York State Tollway Auth. Hwy. & Bridge
Trust Fund:
Series A, 6% 4/1/00 (AMBAC Insured) Aaa 2,000,000 2,117,500
Series A, 6.25% 4/1/04 (MBIA Insured) Aaa 1,750,000 1,907,500
Series B, 6.40% 4/1/04 (FGIC Insured) Aaa 1,000,000 1,093,750
Niagara Falls Bridge Commission Toll Rev.:
Rfdg. Series B, 5.125% 10/1/07
(FGIC Insured) Aaa 2,000,000 1,947,500
Series B, 5.25% 10/1/15 (FGIC Insured) Aaa 14,225,000 13,140,344
Niagara Falls Gen. Oblig. (Pub. Impt.):
7.50% 3/1/08 (MBIA Insured) Aaa 995,000 1,181,562
7.50% 3/1/10 (MBIA Insured) Aaa 1,155,000 1,374,450
7.50% 3/1/11 (MBIA Insured) Aaa 1,245,000 1,486,219
7.50% 3/1/16 (MBIA Insured) Aaa 1,060,000 1,279,950
7.50% 3/1/17 (MBIA Insured) Aaa 1,200,000 1,446,000
Suffolk County Ind. Dev. Agcy. Southwest Swr.
Sys. Rev.:
6% 2/1/07 (FGIC Insured) Aaa 1,500,000 1,582,500
6% 2/1/08 (FGIC Insured) Aaa 2,500,000 2,621,875
Suffolk County Wtr. Auth. Wtrwks. Rev.:
Rfdg. (Sr. Lien):
5.10% 6/1/09 (MBIA Insured) Aaa 2,000,000 1,877,500
5.10% 6/1/10 (MBIA Insured) Aaa 4,500,000 4,185,000
Rfdg. (Sub. Lien)
5.10% 6/1/13 (MBIA Insured) Aaa 2,000,000 1,835,000
7.375% 6/1/12 (AMBAC Insured) Aaa 30,000 32,475
5% 6/1/17 (MBIA Insured) Aaa 3,000,000 2,655,000
6% 6/1/17 (MBIA Insured) Aaa 3,500,000 3,543,750
Triborough Bridge & Tunnel Auth. Rev.
(Convention Ctr. Proj.) Series E, 7.25%
1/1/10 Baa1 1,700,000 1,893,375
Triborough Bridge & Tunnel Auth. Spl. Oblig.
Rev. Rfdg.:
Series A, 6.40% 1/1/03
(MBIA Insured) Aaa 4,000,000 4,330,000
Series B, 7.10% 1/1/10
(AMBAC Insured) Aaa 2,000,000 2,190,000
Triborough Bridge & Tunnel Rev. 6% 1/1/03 Aa 1,250,000 1,351,562
Yonkers Gen. Oblig. Rev.:
6% 8/1/04 (FGIC Insured) Aaa 1,020,000 1,095,225
6% 8/1/05 (FGIC Insured) Aaa 1,080,000 1,158,300
297,164,367
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - 2.4%
New York & New Jersey Port Auth. Consolidated:
88th Series, 4.50% 10/1/04 A1 $ 4,000,000 $ 3,775,000
89th Series, 5.125% 10/1/21
(FGIC Insured) Aaa 4,750,000 4,215,625
7,990,625
PUERTO RICO - 1.7%
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.:
Rfdg. Series N, 7% 7/1/07 Baa1 2,150,000 2,295,125
Rfdg. Series S, 7% 7/1/06 Baa1 2,500,000 2,837,500
7.125% 7/1/14 Baa1 550,000 595,375
5,728,000
TOTAL MUNICIPAL BONDS
(Cost $303,464,650) 310,882,992
MUNICIPAL NOTES (A) - 5.8%
NEW YORK - 5.8%
New York City Muni. Wtr. Fin. Auth. Wtr.& Swr.
Rev., VRDN:
Series 1993 C, 3.90% (FGIC Insured) VMIG 1 2,100,000 2,100,000
Series 1994 C, 3.90% (FGIC Insured) - 1,500,000 1,500,000
Series 1994 G, 3.80% (FGIC Insured) VMIG 1 500,000 500,000
Triborough Bridge & Tunnel Auth. Spl. Oblig.
Rev. Series 1994, 3.50% (FGIC Insured),
VRDN VMIG 1 10,000,000 10,000,000
Westchester County Gen. Oblig. TAN
5% 12/14/95 - 5,000,000 5,023,450
TOTAL MUNICIPAL NOTES
(Cost $19,108,948) 19,123,450
TOTAL INVESTMENTS - 100%
(Cost $322,573,598) $ 330,006,442
SECURITY TYPE ABBREVIATIONS
TAN - Tax 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) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(c) Security collateralized by an amount sufficient to pay interest and
principal.
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 90.8% AAA, AA, A 87.4%
Baa 2.8% BBB 6.8%
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 investment in securities, is as follows:
Transportation 20.4%
Water & Sewer 14.1
Lease Revenue 13.9
General Obligation 13.4
Escrowed/Pre-Refunded 12.1
Others
(individually less than 10%) 26.1
TOTAL 100.0%
INCOME TAX INFORMATION
At July 31, 1995, the aggregate cost of investment securities for income
tax purposes was $322,573,598. Net unrealized appreciation aggregated
$7,432,844, of which $10,311,178 related to appreciated investment
securities and $2,878,334 related to depreciated investment securities.
At January 31, 1995, the fund elected to defer to its fiscal year ending
January 31, 1996 $2,776,458 of losses recognized during the period November
1, 1994 to January 31, 1995.
At January 31, 1995, the fund was required to defer $195,896 of losses on
futures contracts and options.
FIDELITY NEW YORK TAX-FREE INSURED PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995 (UNAUDITED)
143.ASSETS 144. 145.
146.Investment in securities, at value (cost 147. $ 330,006,442
$322,573,598) -
See accompanying schedule
148.Interest receivable 149. 4,199,311
150. 151.TOTAL ASSETS 152. 334,205,753
153.LIABILITIES 154. 155.
156.Payable to custodian bank $ 613,895 157.
158.Payable for investments purchased 11,008,577 159.
160.Payable for fund shares redeemed 81,793 161.
162.Distributions payable 308,188 163.
164.Accrued management fee 107,852 165.
166.Other payables and accrued expenses 66,172 167.
168. 169.TOTAL LIABILITIES 170. 12,186,477
171.172.NET ASSETS 173. $ 322,019,276
174.Net Assets consist of: 175. 176.
177.Paid in capital 178. $ 321,230,675
179.Accumulated undistributed net realized gain (loss) 180. (6,644,243)
on investments
181.Net unrealized appreciation (depreciation) 182. 7,432,844
on investments
183.184.NET ASSETS, for 28,313,581 shares 185. $ 322,019,276
outstanding
186.187.NET ASSET VALUE, offering price and 188. $11.37
redemption price per share ($322,019,276 (divided by)
28,313,581 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1995 (UNAUDITED)
189.190.INTEREST INCOME 191. $ 9,082,895
192.EXPENSES 193. 194.
195.Management fee $ 653,118 196.
197.Transfer agent, accounting and custodian fees 272,764 198.
and expenses
199.Non-interested trustees' compensation 780 200.
201.Registration fees 530 202.
203.Audit 16,422 204.
205.Legal 849 206.
207.Miscellaneous 1,009 208.
209. 210.TOTAL EXPENSES 211. 945,472
212.213.NET INTEREST INCOME 214. 8,137,423
215.REALIZED AND UNREALIZED GAIN (LOSS) 217. 218.
216.Net realized gain (loss) on:
219. Investment securities (2,898,968) 220.
221. Futures contracts (907,447) (3,806,415)
222.Change in net unrealized appreciation 223. 224.
(depreciation) on:
225. Investment securities 19,390,469 226.
227. Futures contracts 134,526 19,524,995
228.229.NET GAIN (LOSS) 230. 15,718,580
231.232.NET INCREASE (DECREASE) IN NET ASSETS 233. $ 23,856,003
RESULTING FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
234.INCREASE (DECREASE) IN NET ASSETS
235.Operations $ 8,137,423 $ 19,363,852
Net interest income
236. Net realized gain (loss) (3,806,415) 1,343,664
237. Change in net unrealized appreciation (depreciation) 19,524,995 (45,272,294)
238. 23,856,003 (24,564,778)
239.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
240.Distributions to shareholders (8,137,423) (19,363,852)
From net interest income
241. From net realized gain - (2,159,434)
242. In excess of net realized gain - (2,292,300)
243. 244.TOTAL DISTRIBUTIONS (8,137,423) (23,815,586)
245.Share transactions 31,326,259 57,210,652
Net proceeds from sales of shares
246. Reinvestment of distributions 6,127,456 18,383,206
247. Cost of shares redeemed (42,064,581) (130,930,709)
248.249. (4,610,866) (55,336,851)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS
250. 11,107,714 (103,717,215)
251.TOTAL INCREASE (DECREASE) IN NET ASSETS
252.NET ASSETS 253. 254.
255. Beginning of period 310,911,562 414,628,777
256. End of period $ 322,019,276 $ 310,911,562
257.OTHER INFORMATION 259. 260.
258.Shares
261. Sold 2,789,116 5,128,613
262. Issued in reinvestment of distributions 543,247 1,674,611
263. Redeemed (3,728,523) (11,812,561)
264. Net increase (decrease) (396,160) (5,009,337)
</TABLE>
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, NINE MONTHS YEARS ENDED APRIL 30,
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995 1994 C 1993 1992 1991
267.SELECTED PER-SHARE DATA
268.Net asset value, beginning of period
$ 10.830 $ 12.300 $ 11.830 $ 11.320 $ 10.990 $ 10.540
269.Income from Investment Operations
.284 .629 .648 .509 .684 .696
Net interest income
270. Net realized and unrealized gain (loss)
.540 (1.320) .780 .510 .330 .450
271. Total from investment operations
.824 (.691) 1.428 1.019 1.014 1.146
272.Less Distributions
(.284) (.629) (.648) (.509) (.684) (.696)
From net interest income
273. From net realized gain on investments
- - (.070) (.310) - - -
274. In excess of net realized gain on investments
- - (.080) - - - -
275. Total distributions
(.284) (.779) (.958) (.509) (.684) (.696)
276.Net asset value, end of period
$ 11.370 $ 10.830 $ 12.300 $ 11.830 $ 11.320 $ 10.990
277.TOTAL RETURN B
7.66% -5.48% 12.36% 9.16% 9.45% 11.17%
278.RATIOS AND SUPPLEMENTAL DATA
279.Net assets, end of period (000 omitted)
$ 322,019 $ 310,912 $ 414,629 $ 359,305 $ 309,300 $ 246,842
280.Ratio of expenses to average net assets
.59% .58% .58% .61% .62% .64%
A A
281.Ratio of net interest income to average net assets
5.06% 5.60% 5.31% 5.73% 6.17% 6.45%
A A
282.Portfolio turnover rate
83% 41% 48% 39% 17% 33%
A A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C EFFECTIVE FEBRUARY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INTEREST INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
FINANCIAL HIGHLIGHTS
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, the past 10 years total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Fidelity New York Tax-Free Money Market 1.68% 3.14% 15.48% 44.13%
Average New York
Tax-Free Money Market Fund 1.63% 2.99% 15.02% n/a
Consumer Price Index 1.46% 2.76% 16.95% 41.47%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
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, the value of your investment would be $1,050. To
measure how the fund's performance stacked up against its peers, you can
compare it to the average New York tax-free money market fund, which
reflects the performance of 38 New York tax-free money market funds with
similar objectives tracked by IBC/Donoghue over the past six months.
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 and IBC/Donoghue numbers are the closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity New York Tax-Free Money Market 3.14% 2.92% 3.72%
Average New York
Tax-Free Money Market Fund 2.99% 2.84% n/a
Consumer Price Index 2.76% 3.18% 3.53%
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
8/1/94 10/31/94 1/30/95 4/24/95 7/31/95
New York Tax-Free 2.30% 2.74% 3.15% 3.53% 3.26%
Money Market
Average New York 2.18% 2.60% 2.97% 3.53% 3.11%
Tax-Free Money Market
Fund
New York Tax-Free 4.09% 4.87% 5.60% 6.27% 5.79%
Money Market Tax-equivalen
t
Row: 1, Col: 1, Value: 2.3
Row: 1, Col: 2, Value: 2.18
Row: 2, Col: 1, Value: 2.74
Row: 2, Col: 2, Value: 2.6
Row: 3, Col: 1, Value: 3.15
Row: 3, Col: 2, Value: 2.97
Row: 4, Col: 1, Value: 3.53
Row: 4, Col: 2, Value: 3.53
Row: 5, Col: 1, Value: 3.26
Row: 5, Col: 2, Value: 3.11
5% -
4% -
3% -
2% -
1% -
0%
New York
Tax-Free
Money Market
Average New York
Tax-Free Money
Market Fund
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 1995 federal, state and New York City income tax rate of
43.71%. Figures for the average New York tax-free money market fund are
from IBC/Donoghue. A portion of the fund's income may be subject to the
alternative minimum tax.
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. And there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Jan Bradburn,
Portfolio Manager of Fidelity New
York Tax-Free Money Market Portfolio
Q. JAN, WHAT KIND OF INVESTMENT CLIMATE HAVE YOU BEEN OPERATING IN FOR THE
PAST SIX MONTHS?
A. While conditions were relatively calm compared to last year, the climate
definitely shifted. Shortly after the period began last February, the
Federal Reserve raised the federal funds rate - the rate banks charge each
other for overnight loans -one-half percentage point to 6.0%. It was the
seventh rate increase in 12 months, and the final act in a Fed policy
designed to slow down the pace of economic growth and prevent an outbreak
of inflation. The success of that policy was already becoming apparent even
as the Fed was raising interest rates for the last time. Growth in the
gross domestic product slowed from 5.1% during the fourth quarter of 1994
to 2.8% during the first quarter of 1995, and trickled to an estimated
0.50% during the second quarter. By early summer, it was clear to most
observers that the Fed had no intention of raising rates again anytime
soon. Indeed, speculation centered on when the Fed might decide the risk of
recession was great enough to warrant a rate cut. In July, as expected, the
Fed acted, trimming the federal funds rate back to 5.75%.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
A. From the beginning of the period through mid-summer, the fund's average
maturity was around 45 days. Later in the period, as interest rates peaked
and the summer borrowing season brought abundant new supply into the
market, I began looking for opportunities to lock in attractive rates for
longer terms. By the end of July, the fund's average maturity was around 60
days. The fund's stake in variable rate demand notes, or VRDNs, has stayed
steady throughout the period at around 50% of total assets. VRDNs pay a
variable interest rate that resets at daily, weekly or monthly intervals.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on July 31, 1995, was 3.26%, compared to
3.20% six months ago. On an after-tax basis, the fund's latest yield was
the equivalent of a 5.79% taxable yield for New York City investors in the
43.71% combined state and federal and local income tax bracket. Through
July 31, 1995, the fund's six-month total return was 1.68%, compared to
1.63% for the average New York tax-exempt money market fund, according to
IBC/Donoghue.
Q. WHAT'S YOUR OUTLOOK?
A. The key to the shifts that took place in the investment climate during
the period is understanding that while they were dramatic, there were few
surprises. Most market participants anticipated a rate increase in
February, and they got one. Similarly, by the time the Fed governors met in
July, most market participants not only believed that a rate cut was all
but inevitable; they were already acting on that assumption. Then, for a
short while afterwards, it looked as if more rate cuts might be coming. But
as key economic indicators showed surprising signs of strength, and the
threat of recession faded, it began to look more as if the Fed would stand
pat for a while and wait for a clear trend to develop. That's where we were
when the period ended-waiting for direction. Given the high level of
uncertainty, I think it makes sense to preserve some flexibility in the
months ahead. I'll probably maintain an average maturity of around 60 days,
which I regard as neutral.
FUND FACTS
GOAL: tax-free income and
stability by investing in
high-quality, short-term
municipal money market
securities whose interest is free
from federal income tax and
New York state and city income
taxes
START DATE: July 6, 1984
SIZE: as of July 31, 1995,
more than $756 million
MANAGER: Janice Bradburn,
since 1989; manager, Fidelity
Ohio Municipal Money Market
Portfolio, since 1993; Fidelity
Massachusetts Tax-Free and
Spartan Massachusetts
Municipal Money Market
Portfolios, since 1992; Spartan
New York Municipal Money
Market Portfolio, since 1990;
Spartan Florida Municipal
Money Market since 1995;
joined Fidelity in 1989
(checkmark)
WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager
is expecting rates to fall.
When the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future
tax or other revenues and
payable from those specific
sources.
TENDER BOND: A variable-rate,
long-term security that gives
the bond holder the option to
redeem the bond at face
value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
7/31/95 1/31/95 7/31/94
0 - 30 73 68 63
31 - 90 8 16 20
91 - 180 5 11 12
181 - 397 14 5 5
WEIGHTED AVERAGE MATURITY
7/31/95 1/31/95 7/31/94
Fidelity New York Tax-Free
Money Market Portfolio 59 days 42 days 48 days
Average New York Tax-Free
56 days 42 days 54 days
Money Market Fund*
ASSET ALLOCATION
AS OF JULY 31, 1995 AS OF JANUARY 31, 1995
Row: 1, Col: 1, Value: 57.0
Row: 1, Col: 2, Value: 16.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 4.0
Row: 1, Col: 1, Value: 48.0
Row: 1, Col: 2, Value: 25.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 23.0
Row: 1, Col: 5, Value: 2.0
Variable rate
demand notes
(VRDNs) 57%
Commercial
paper 16%
Tender bonds 3%
Municipal
notes 20%
Other 4%
Variable rate
demand notes
(VRDNs) 48%
Commercial
paper 25%
Tender bonds 2%
Municipal
notes 23%
Other 2%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO
INVESTMENTS JULY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 98.0%
Albany County Ind. Dev. Auth. Ind. Dev. Rev.
(Campus Plaza 7 Inc. Proj.) 4.10%,
LOC Marine Midland Bank, VRDN (b) $ 1,045,000 $ 1,045,000
Albany County School Dist. BAN 4.50% 7/12/96 1,250,000 1,256,820
Amsterdam Ind. Dev. Rev. (Longview Fiber Co.)
Series 1987, 3.85%, LOC Algemene Bank, VRDN 1,880,000 1,880,000
Bellmore Unified Free School Dist. TAN 4% 6/27/96 1,500,000 1,503,915
Briarcliff BAN 4.125% 6/15/96 1,000,000 1,000,209
Chautauqua County Ind. Dev. Agcy. Rev.
(Red Wing Co. Inc. Proj.) Series 1985, 3.75%,
LOC Wachovia Bank of Georgia, VRDN 3,500,000 3,500,000
Chemung County Ind. Dev. Auth. Rev. (McWayne Inc. Proj.)
Series 1992 A, 3.80%, LOC Amsouth Bank, VRDN (b) 3,000,000 3,000,000
Columbia County Ind. Dev. Auth. Ind. Dev. Rev.
(Philip Morris Proj.) 3.75%, VRDN 1,800,000 1,800,000
Commack Union School Dist. Gen. Oblig. TAN
4.25% 6/28/96 1,000,000 1,003,929
Erie County Ind. Dev. Auth. Ind. Rev., VRDN: (b)
(Nat'l. Wire Products) Series 1988 E, 4.10%,
LOC Marine Midland Bank 345,000 345,000
(Niagara Envelope Co. Proj.) 4.10%,
LOC Marine Midland Bank 2,200,000 2,200,000
(Uniland Dev./Buffalo Campus) Series 1986 D, 4.10%,
LOC Marine Midland Bank 1,420,000 1,420,000
Erie County RAN 4.75% 8/15/95,
LOC Union Bank of Switzerland 1,200,000 1,200,134
Half Hollow Hills Unified Free School Dist. TAN
4.25% 6/28/96 8,500,000 8,534,893
Hamburg BAN 4.125% 6/13/96 3,000,000 3,010,627
Harborfields Central School Dist. TAN 4.25% 6/27/96 2,800,000 2,813,444
Herricks Unified Free School Dist. TAN 4.125% 6/28/96 3,000,000
3,009,819
Hyde Park Central School Dist. BAN 4.10% 10/27/95 1,290,000 1,291,206
Islip Ind. Dev. Auth. Ind. Dev. Rev. (Magu Realty/Creative
Bath Proj.) Series 1992, 3.75%, LOC Chemical Bank,
VRDN (b) 4,660,000 4,660,000
Islip Ind. Dev. Auth. Rev. (Brentwood Dist. Corp. Facs. Proj.)
Series 1984, 4.125%, LOC Bankers Trust, VRDN 2,000,000 2,000,000
Jefferson County Ind. Dev. Auth. Rev. (Watertown-Carthage
Television Corp. Proj.) Series 1982, 3.80%,
LOC First Nat'l. Bank of Chicago, VRDN 3,300,000 3,300,000
Monroe County Ind. Dev. Auth. Rev. (Advent Tool & Mold)
Series 1990 D, 4.10%, LOC Marine Midland Bank,
VRDN (b) 1,175,000 1,175,000
Nassau County BAN:
5% 8/15/95 3,259,000 3,259,790
5.25% 8/15/95 8,000,000 8,001,870
5% 11/15/95 6,655,000 6,669,921
5.25% 11/15/95 4,915,000 4,927,520
4.25% 3/15/96 12,700,000 12,746,082
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Nassau County Gen. Impt. Rev. Bond Series Q, 5% 8/1/96
(FGIC Insured) $ 5,225,000 $ 5,288,484
Nassau County Ind. Dev. Auth. Rev. (CR/PL Inc. Proj.)
Series 1985, 4%, LOC First Nat'l. Bank of Chicago,
VRDN 3,930,000 3,930,000
New York City Gen. Oblig. Bonds, Series 1995 B: (c)
4% tender 8/14/95, LOC Chemical Bank 1,500,000 1,500,000
3.60% tender 8/18/95, LOC Chemical Bank 2,900,000 2,900,000
3.87% tender 8/22/95, LOC Chemical Bank 6,000,000 6,000,000
New York City Gen. Oblig. Rev., VRDN:
Series E-5, 4%, LOC Sumitomo Bank 300,000 300,000
Series 1995 B-8, 3.80%, LOC Mitsubishi Bank Ltd. 7,000,000 7,000,000
Series 1995 B-10, 3.75%,
LOC Union Bank of Switzerland 3,700,000 3,700,000
Series 1995 F-2, 3.90%, LOC Banque Paribas 11,800,000 11,800,000
Series 1995 F-3, 3.90%, LOC Ind. Bank of Japan 10,000,000 10,000,000
Series 1995 F-4, 3.80%,
LOC Landesbank Hessen-Thuringen 3,800,000 3,800,000
Series 1995 F-7, 3.80%,
LOC Union Bank of Switzerland 4,000,000 4,000,000
New York City Gen. Oblig. TAN 4.50% 2/15/96 5,500,000 5,522,825
New York City Hsg. Dev. Corp. Mtg. Rev., VRDN: (b)
(Tribeca Towers) Series 1994 A, 3.65%
(FNMA Guaranty) 2,800,000 2,800,000
(York Avenue Proj.) Series 1994 A, 3.75%,
LOC Chemical Bank 11,000,000 11,000,000
New York City Hsg. Dev. Corp. Rev., VRDN:
(Montefiore Med. Ctr. Proj.) Series 1993 A, 3.55%,
LOC Chemical Bank 8,400,000 8,400,000
(Related-East 96th St. Proj.) Series 1990 A, 3.45%,
LOC Mitsubishi Bank 26,000,000 26,000,000
New York City Ind. Dev. Auth. Facs. Rev.
(Church of the Heavenly Rest Day School Proj.)
Series 1991, 3.75%, LOC Barclays Bank, VRDN 6,470,000 6,470,000
New York City Ind. Dev. Auth. Ind. Dev. Rev., VRDN: (b)
(Japan Airlines Co. Ltd.) Series 1991, 3.90%,
LOC Morgan Guaranty Trust Co. 6,000,000 6,000,000
(Nippon Cargo Airlines Co.) Series 1992, 4.65%,
LOC Ind. Bank of Japan 13,800,000 13,800,000
New York City Metropolitan Transit Auth. Participating
VRDN, Series M, 3.95% (Liquidity Facility Hong Kong &
Shanghai Banking Corp.) (c) 13,000,000 13,000,000
New York City Metropolitan Transit Auth. Tender Option
Bonds Series 144, 3.96% (Liquidity Facility Citibank) (c) 16,655,000
16,655,000
New York City Muni. Wtr. Fin. Auth. Rev. Series 1, CP:
2.95% 8/1/95, LOC Canadian Imperial Bank 2,200,000 2,200,000
3.85% 8/7/95, LOC Canadian Imperial Bank 11,000,000 11,000,000
4.20% 8/15/95, LOC Canadian Imperial Bank 14,100,000 14,100,000
4% 8/17/95, LOC Canadian Imperial Bank 12,500,000 12,500,000
3.70% 10/12/95, LOC Canadian Imperial Bank 14,000,000 14,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.
Series 1995 A, 4.25% (FGIC Insured), VRDN $ 6,200,000 $ 6,200,000
New York City Participating VRDN, Series 1994 C-3,
3.96% (Liquidity Facility Citibank) (c) 17,000,000 17,000,000
New York City Trust For Cultural Resources Rev.
(Carnegie Hall), VRDN:
Series 1985, 3.75%, LOC Dai-Ichi Kangyo Bank Ltd. 6,075,000 6,075,000
Series 1990, 3.75%, LOC Dai-Ichi Kangyo Bank Ltd. 1,300,000 1,300,000
New York & New Jersey Port. Auth. Rev., Series A, 3.15%
8/21/95 (Liquidity Facility Daiwa Bank Ltd.), CP (b) 1,645,000 1,645,000
New York State Dorm. Auth. Participating VRDN,
Series PA-60, 3.95%, (Liquidity Facility Merrill Lynch) (c) 4,500,000
4,500,000
New York State Dorm. Auth. Pooled Short Term Rev.,
Series 1987 A, 4.25% 8/2/95, LOC Tokai Bank Ltd., CP 2,084,000 2,084,000
New York State Dorm. Auth. Rev. Bonds (City Univ. Sys.)
Series A, 7.625% 7/1/96 4,100,000 4,314,737
New York State Dorm. Auth. Rev. Bonds
(Sloan-Kettering Mem. Cancer Ctr.) :
Series 1989 A, 3.65% tender 9/19/95,
LOC Chemical Bank 8,000,000 8,000,000
Series 1989 A, 3.65% tender 10/17/95,
LOC Chemical Bank 8,000,000 8,000,000
Series 1989 B, 3.65% tender 10/24/95,
LOC Chemical Bank 6,500,000 6,500,000
New York State Energy Research & Dev. Auth.
Participating VRDN, Series 943202, 3.96%
(Liquidity Facility Citibank) (c) 15,400,000 15,400,000
New York State Energy Research & Dev. Auth. Poll. Cont. Rev.:
Bonds, Series 1985 A:
(New York State Elec. & Gas Corp. Proj.) 4.65%
tender 3/15/96, LOC Morgan Bank Delaware 2,000,000 2,000,000
(Long Island Lighting Proj.)
4.70% tender 3/1/96, LOC Deutsche Bank 6,000,000 6,000,000
Rfdg. (New York Elec. & Gas Corp.) Series 1994 D,
4.25%, LOC Union Bank of Switzerland, VRDN 7,000,000 7,000,000
(Central Hudson Gas & Elec.) Series 1985 B, 3.70%,
LOC Deutsche Bank, VRDN 1,100,000 1,100,000
(Niagara Mohawk Pwr. Proj.), VRDN:
Series 1985 A, 4.30%,
LOC Long-Term Cr. Bank of Japan 6,000,000 6,000,000
Series 1986 A, 3.90%,
LOC Toronto Dominion Bank (b) 1,500,000 1,500,000
Series 1987 B, 4.40%, LOC Morgan Guaranty (b) 4,500,000 4,500,000
Series 1988 A, 4.40%, LOC Morgan Guaranty (b) 3,500,000 3,500,000
New York State Energy Research & Dev. Auth. Rev.
(Long Island Lighting), VRDN: (b)
Series 1993 A, 3.70%,
LOC Toronto-Dominion Bank 16,700,000 16,700,000
Series 1994 A, 3.65%,
LOC Union Bank of Switzerland 20,000,000 20,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Energy Research & Dev. Auth.
Tender Option Bonds, Series 943206, 3.70%
tender 8/1/95 (Liquidity Facility Citibank) (c) (d) $ 8,000,000 $
8,000,000
New York State Envir. Fac. Corp. Solid Waste Rev. Rfdg.
Bonds (General Elec. Proj.) Series 1992 A, 3.50%
tender 9/19/95 (b) 3,000,000 3,000,000
New York State Envir. Fac. Corp. Wtr. Poll. Cont. Rev.
Tender Option Bonds, Series CR 154, 3.96%
(Liquidity Facility Citibank) (c) 9,222,500 9,222,500
New York State Gen. Oblig. Rev., CP:
Series P:
2.65% 8/1/95
(Liquidity Facility Westdeutche Landesbank) 4,950,000 4,950,000
3.70% 10/2/95
(Liquidity Facility Westdeutsche Landesbank) 8,400,000 8,400,000
3.75% 10/3/95
(Liquidity Facility Westdeutsche Landesbank) 1,000,000 1,000,000
Series Q:
4.05% 8/11/95
(Liquidity Facility Westdeutche Landesbank) 4,700,000 4,700,000
3.70% 10/19/95
(Liquidity Facility Westdeutche Landesbank) 4,600,000 4,600,000
3.75% 10/25/95
(Liquidity Facility Westdeutsche Landesbank) 5,000,000 5,000,000
New York State Hsg. Fin. Agcy. Rev.:
(Liberty View Apts.) Series 1985 A, 3.60%,
LOC Chemical Securities, VRDN 10,000,000 10,000,000
(Mem. Sloan-Kettering Cancer Ctr.)
Series 1985 A, 3.75% (Liquidity Facility
Morgan Guaranty), VRDN 5,800,000 5,800,000
(Normandie Court I) Series 1991 A, 3.60%,
LOC Societe Generale, VRDN 13,100,000 13,100,000
New York State Local Gov't. Assistance Corp. Participating
VRDN, Series PW-4, 3.90% (Liquidity Facility Bank of
Nova Scotia) (c) 5,500,000 5,500,000
New York State Med. Care Facs. Fin. Agcy. Participating VRDN,
Series PA-89, 3.95% (Liquidity Facility Merrill Lynch) (c) 2,650,000
2,650,000
New York State Med. Care Facs. Fin. Agcy. Rev.:
(Brooklyn, Caledonia, Long Island College Hosp.)
Series A, 8.50% 1/15/96 (FHA Guaranteed) 4,820,000 5,001,958
(Lenox Hill Hosp. Proj.) Series 1990 A, 3.60%,
LOC Chemical Bank, VRDN 4,900,000 4,900,000
(Mt. Sinai Hosp.) Series C, 8.875% 1/15/96
(FHA Guaranteed) 14,000,000 14,545,230
New York State Mtg. Agcy. Participating VRDN: (c)
Series PA-87, 4.05% (Liquidity Facility Merrill Lynch) (b) 4,000,000
4,000,000
Series PT-11, 4.05%
(Liquidity Facility Dai-Ichi Kangyo Bank Ltd.) 14,340,000 14,340,000
Series PT-15 A, 4.05%
(Liquidity Facility Dai-ichi Kangyo Bank Ltd.) (b) 6,880,000 6,880,000
Series PT-15 B, 4.05%
(Liquidity Facility Dai-ichi Kangyo Bank Ltd.) (b) 4,280,000 4,280,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Mtg. Agcy. Rev. Bonds,
Series PT-26, 4.10% tender 12/7/95
(Liquidity Facility Credit Suisse) (b) (c) (d) $ 4,300,000 $ 4,300,000
New York State Urban Dev. Corp. Participating VRDN,
Series BTP-113, 3.90%
(Liquidity Facility Bankers Trust Co.) (c) 7,854,000 7,854,000
Niagara County BAN 4.25% 7/19/96 4,112,200 4,129,388
Niagara Falls Bldg. Community Toll Bridge Sys. Rev., 3.60%
(FGIC Insured) (BPA Ind. Bank of Japan), VRDN 1,200,000 1,200,000
Oswego County Ind. Dev. Agcy. Poll. Cont. Rev. Rfdg.
(Phillip Morris Co. Proj.) 3.75%, VRDN 7,000,000 7,000,000
Oyster Bay BAN:
4.85% 12/8/95 3,200,000 3,200,000
4.25% 7/12/96 3,800,000 3,815,568
Penfield Central School Dist. BAN 4.125% 6/20/96 2,000,000 2,007,241
Plainview Old Bethpage Central School Dist. TAN
4.25% 6/28/96 5,000,000 5,019,640
Rochester BAN 5.25% 3/12/96 2,802,000 2,814,967
Rockville Center Unified Free School Dist. 4.25%
6/21/95 2,250,000 2,259,997
Rush Henrietta Central School Dist. BAN 4.125%
6/27/96 2,300,000 2,305,898
St. Lawrence County Ind. Dev. Agcy. Envir. Impt. Rev.
(Reynolds Metals Proj.) 3.65%,
LOC Royal Bank of Canada, VRDN 3,800,000 3,800,000
Suffolk County Ind. Dev. Agcy. Rev. (Suffolk Child Dev. Ctr.
Proj.) Series 1989, 3.75%, LOC Barclays Bank, VRDN 2,000,000 2,000,000
Suffolk County TAN 5.25% 8/15/95,
LOC Westdeutsche Landesbank 34,800,000 34,808,449
Syracuse BAN 5.50% 3/1/96 (b) 3,100,000 3,112,555
Tompkins County BAN Series A, 4.25% 5/31/95 (b) 2,600,000 2,605,197
Triborough Bridge & Tunnel Auth. Spl. Oblig. Rev.
Series 1994, 3.50% (FGIC Insured), VRDN 23,600,000 23,599,728
Triborough Bridge & Tunnel Ctfs.,
Series CR-133, 3.45% tender 8/15/95
(Liquidity Facility Citibank) (c) 6,205,000 6,205,000
Uniondale Unified Free School Dist. TAN:
4.25% 6/27/96 2,300,000 2,308,411
4.50% 6/27/96 4,500,000 4,527,427
Wappinger BAN 4.25% 7/12/96 1,408,000 1,414,411
Williamsville Central School Dist. BAN 4.75%
5/3/96 8,200,000 8,223,686
Wyoming County Ind. Dev. Auth. Rev. (American Precision)
Series 1988 A, 4.10%, LOC Marine Midland Bank,
VRDN (b) 725,000 725,000
738,646,476
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - 2.0%
New York & New Jersey Port Auth. Spl. Proj. Rev.
(KIAC Partners Proj.) Series 3, 3.70%,
LOC Deutsche Bank, VRDN (b) $ 5,000,000 $ 5,000,000
New York & New Jersey Port Auth. Rev.
Series 1992, 3.716%, VRDN 9,700,000 9,700,000
14,700,000
TOTAL INVESTMENTS - 100% $ 753,346,476
Total Cost for Income Tax Purposes $ 753,348,308
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax 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.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
New York State Energy
Research & Dev. Auth.
Bonds, Series 943206,
3.70% tender 8/1/95
(Liquidity Facility
Citibank) 7/1/95 $ 8,000,000
New York State Mtg.
Agcy. Bonds, Series PT-26,
4.10% tender 12/7/95
(Liquidity Facility
Credit Suisse) 6/8/95 $ 4,300,000
INCOME TAX INFORMATION
At January 31, 1995, the fund had a capital loss carryforward of
approximately $37,600 which will expire on January 31, 2002.
FIDELITY NEW YORK TAX-FREE MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995 (UNAUDITED)
283.ASSETS 284. 285.
286.Investment in securities, at value - See 287. $ 753,346,476
accompanying schedule
288.Cash 289. 5,162,312
290.Receivable for investments sold 291. 4,015,444
292.Interest receivable 293. 5,497,434
294. 295.TOTAL ASSETS 296. 768,021,666
297.LIABILITIES 298. 299.
300.Payable for investments purchased $ 10,811,309 301.
302.Distributions payable 83,544 303.
304.Accrued management fee 250,001 305.
306.Other payables and accrued expenses 168,840 307.
308. 309.TOTAL LIABILITIES 310. 11,313,694
311.312.NET ASSETS 313. $ 756,707,972
314.Net Assets consist of: 315. 316.
317.Paid in capital 318. $ 756,747,845
319.Accumulated net realized gain (loss) on 320. (39,881)
investments
321.Unrealized gain from accretion of market discount 322. 8
323.324.NET ASSETS, for 756,582,602 shares 325. $ 756,707,972
outstanding
326.327.NET ASSET VALUE, offering price and 328. $1.00
redemption price per share ($756,707,972 (divided by)
756,582,602 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1995 (UNAUDITED)
329.330.INTEREST INCOME 331. $ 14,668,507
332.EXPENSES 333. 334.
335.Management fee $ 1,497,664 336.
337.Transfer agent, accounting and custodian fees 789,648 338.
and expenses
339.Non-interested trustees' compensation 2,292 340.
341.Registration fees 570 342.
343.Audit 16,308 344.
345.Legal 3,039 346.
347.Miscellaneous 972 348.
349. 350.TOTAL EXPENSES 351. 2,310,493
352.353.NET INTEREST INCOME 354. 12,358,014
355.REALIZED AND UNREALIZED GAIN (LOSS) 357. (932)
356.Net realized gain (loss) on investment securities
358.Increase (decrease) in net unrealized gain from 359. 5
accretion
of market discount
360.361.NET GAIN (LOSS) 362. (927)
363.364.NET INCREASE IN NET ASSETS RESULTING FROM 365. $ 12,357,087
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
366.INCREASE (DECREASE) IN NET ASSETS
367.Operations $ 12,358,014 $ 16,433,377
Net interest income
368. Net realized gain (loss) (932) 40,326
369. Increase (decrease) in net unrealized gain from 5 (188)
accretion of market discount
370. 12,357,087 16,473,515
371.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
372.Distributions to shareholders from net interest (12,358,014) (16,433,377)
income
373.Share transactions at net asset value of $1.00 per 787,763,410 1,496,778,596
share
Proceeds from sales of shares
374. Reinvestment of distributions from net interest 11,890,892 15,685,156
income
375. Cost of shares redeemed (780,227,408) (1,383,665,527)
376.377. 19,426,894 128,798,225
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES
RESULTING FROM SHARE TRANSACTIONS
378. 19,425,967 128,838,363
379.TOTAL INCREASE (DECREASE) IN NET ASSETS
380.NET ASSETS 381. 382.
383. Beginning of period 737,282,005 608,443,642
384. End of period $ 756,707,972 $ 737,282,005
</TABLE>
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, NINE MONTHS YEARS ENDED APRIL 30,
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995 1994 1993 1992 1991
387.SELECTED PER-SHARE DATA
388.Net asset value, beginning of period
$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
389.Income from Investment Operations
.017 .024 .018 .017 .034 .046
Net interest income
390.Less Distributions
(.017) (.024) (.018) (.017) (.034) (.046)
From net interest income
391.Net asset value, end of period
$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
392.TOTAL RETURN B
1.68% 2.44% 1.84% 1.72% 3.46% 4.74%
393.RATIOS AND SUPPLEMENTAL DATA
394.Net assets, end of period (000 omitted)
$ 756,708 $ 737,282 $ 608,444 $ 565,619 $ 540,374 $ 541,472
395.Ratio of expenses to average net assets
.63% .60% .62% .62% .64% .61%
A A
396.Ratio of net interest income to average net
3.35% 2.42% 1.83% 2.26% 3.39% 4.64%
assets
A A
</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, 1995 (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, insured fund, and
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 of their purchase date 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 substantially 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, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options transactions and losses deferred due to wash sales, futures and
options, and excise tax regulations.
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.
FUTURES CONTRACTS AND OPTIONS. The high yield and insured funds may use
futures and options contracts to manage their exposure to the bond markets
and to fluctuations in interest rates. Buying futures, writing puts, and
buying calls tend to increase the funds' exposure to the underlying
instrument. Selling futures, buying puts, and writing calls tend to
decrease the funds' exposure to the underlying instrument, or hedge other
fund investments. Futures contracts and written options involve, to varying
degrees, risk of loss in excess of the futures variation margin or the
option value reflected in the Statement of Assets and Liabilities. The
underlying face amount at value is shown in the schedule of investments
under the caption "Futures Contracts". This amount reflects each contract's
exposure to the underlying instrument at period end. Losses may arise from
changes in the value of the underlying instruments, if there is an illiquid
secondary market for the contracts, or if the counterparties do not perform
under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options 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.
RESTRICTED SECURITIES. Each fund is permitted to invest in securities that
are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from registration
or to the public if the securities are registered. Disposal of these
securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult. At the end of the period,
restricted securities (excluding 144A issues) amounted to $12,300,000 or
1.6% of net assets for the money market fund.
3. PURCHASES AND SALES OF
INVESTMENTS.
HIGH YIELD FUND. Purchases and sales of securities, other than short-term
securities, aggregated $170,014,392 and $182,932,632, respectively.
The market value of futures contracts opened and closed during the period
amounted to $64,721,248 and $66,974,102, respectively.
3. PURCHASES AND SALES OF
INVESTMENTS - CONTINUED
INSURED FUND. Purchases and sales of securities, other than short-term
securities, aggregated $124,464,879 and $128,309,601, respectively.
The market value of futures contracts opened and closed during the period
amounted to $48,473,100 and $61,093,270 respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of each fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1200% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower management fee.
The annual individual fund fee rate is .25%. For the period, the management
fees were equivalent to annualized rates of .41% of average net assets for
the high yield, insured 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.
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 $1,180, $1,874
and $45,111 for the high yield, insured, and money market funds,
respectively, for the period.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the custodian
and transfer and shareholder servicing agent for the funds. UMB 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. Effective January
1, 1995, the Board of Trustees approved a revised transfer agent contract
pursuant to which the funds pay account fees and asset-based fees that vary
according to account size and type of account. Under the prior transfer
agent contract, the fund paid fees based on the type, size, number of
accounts, and the number
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
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 $254,154 and $88,720 for the high yield
fund, $198,893 and $70,351 for the insured fund, and $705,930 and $63,702
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 $43,215.
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)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(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
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East 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
6300 Canoga Avenue
Woodland Hills, 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
90 Alhambra Plaza
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
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, 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
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, 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
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State 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
511 Pine Street
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
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.
Page 63 = BLANK
Do NOT strip-in this type
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
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
Michael D. Conway, Assistant Treasurer
- - MONEY MARKET FUND
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB 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
SPARTAN(registered trademark)
(registered trademark)
NEW YORK
MUNICIPAL
PORTFOLIOS
SEMIANNUAL REPORT
JULY 31, 1995
CONTENTS
CHECK PAGE NUMBERS !!!
<TABLE>
<CAPTION>
<S> <C> <C>
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
16 FINANCIAL STATEMENTS
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO
20 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
47 FINANCIAL STATEMENTS
NOTES 51 NOTES TO THE FINANCIAL STATEMENTS
</TABLE>
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.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND
MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells
securities that have grown in value), and the effect of the $5 account
closeout fee. You can also look at the fund's income to measure
performance. If Fidelity had not reimbursed certain fund expenses during
the periods shown, the five year and life of fund total returns would have
been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Spartan New York Municipal High Yield 7.88% 7.12% 46.29% 54.07%
Lehman Brothers Municipal Bond Index 7.61% 7.87% 47.93% n/a
Average New York Municipal Bond Fund 6.73% 5.78% 44.10% n/a
Consumer Price Index 1.46% 2.76% 16.95% 19.70%
CUMULATIVE TOTAL RETURNS show the fund's performance over a set period - in
this case, six months, one year, five years, 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, the value of your investment would be
$1,050. You can compare the fund's returns to to the performance of the
Lehman Brothers Municipal Bond Index - a broad gauge of the municipal bond
market. To measure how the fund's performance stacked up against its peers,
you can compare it to the average New York municipal bond fund, which
reflects the performance of 91 New York municipal bond funds with similar
objectives tracked by Lipper Analytical Services over the past six months.
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 CPI returns begin on the
month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan New York Municipal High Yield 7.12% 7.91% 8.19%
Lehman Brothers Municipal Bond Index 7.87% 8.15% n/a
Average New York Municipal Bond Fund 5.78% 7.57% n/a
Consumer Price Index 2.76% 3.18% 3.32%
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 YorkMunicipal Bond I
02/28/90 10000.00 10000.00
03/31/90 9983.21 10003.00
04/30/90 9811.79 9930.98
05/31/90 10117.08 10147.47
06/30/90 10261.57 10236.77
07/31/90 10478.70 10387.25
08/31/90 10253.35 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 10549.02 10684.59
01/31/91 10686.28 10827.76
02/28/91 10746.11 10921.96
03/31/91 10807.20 10926.33
04/30/91 10977.12 11071.65
05/31/91 11092.42 11170.19
06/30/91 11110.44 11159.02
07/31/91 11303.75 11295.16
08/31/91 11499.52 11444.25
09/30/91 11673.94 11593.03
10/31/91 11804.45 11697.37
11/30/91 11845.12 11730.12
12/31/91 12068.11 11982.32
01/31/92 11973.64 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 12392.71 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 12998.19 12805.45
10/31/92 12730.57 12679.95
11/30/92 13058.40 12906.92
12/31/92 13209.77 13038.57
01/31/93 13386.37 13189.82
02/28/93 13961.65 13667.29
03/31/93 13839.11 13522.42
04/30/93 13978.32 13659.00
05/31/93 14082.45 13735.49
06/30/93 14323.29 13964.87
07/31/93 14339.75 13983.02
08/31/93 14647.26 14273.87
09/30/93 14814.05 14436.59
10/31/93 14805.45 14464.02
11/30/93 14653.30 14336.74
12/31/93 14980.16 14639.24
01/31/94 15142.62 14806.13
02/28/94 14713.05 14422.65
03/31/94 13989.29 13835.65
04/30/94 14030.97 13953.25
05/31/94 14169.93 14074.65
06/30/94 13991.10 13993.01
07/31/94 14310.60 14249.09
08/31/94 14394.76 14298.96
09/30/94 14086.75 14088.76
10/31/94 13751.76 13837.98
11/30/94 13286.81 13587.52
12/31/94 13732.43 13886.44
01/31/95 14209.60 14283.59
02/28/95 14679.96 14699.25
03/31/95 14809.27 14868.29
04/30/95 14847.12 14886.13
05/31/95 15388.29 15361.00
06/30/95 15232.70 15227.36
07/31/95 15330.23 15372.02
$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, 1995, the value of your
investment would have grown to $15,330 - a 53.30% increase on your initial
investment. This assumes you still own the fund on July 31, 1995 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 $15,366 - a 53.66% 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
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SIX MONT FEBRUARY 3, 199
H 0
PERIOD (COMMENCEME
ENDED YEARS ENDED JANUARY 31, NT
JULY 31, OF OPERATIONS) T
O
JANUARY 31,
1995 1995 1994 1993 1992 1991
</TABLE>
Dividend return 2.88% 5.41% 5.91% 6.57% 7.13% 7.51%
Capital appreciation
return 5.00% -11.58% 7.20% 5.22% 4.91% -0.12%
Total return 7.88% -6.17% 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, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 4.56(cents) 27.60(cents) 57.96(cents)
Annualized dividend rate 5.21% 5.46% 5.80%
30-day annualized yield 5.16% - -
30-day annualized tax-equivalent yield 9.17% - -
</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 $10.31 over
the past month, $10.20 over the past six months and $10.00 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 43.71% combined effective 1995 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. Better than its peers. For the six- and 12-month periods ended July 31,
1995, the fund had total returns of 7.88% and 7.12%, respectively. For the
same six- and 12-month periods, the average New York municipal bond fund
returned 6.73% and 5.78%, respectively, as tracked by Lipper Analytical
Services.
Q. WHAT HAS THE ENVIRONMENT BEEN LIKE FOR MUNICIPAL BONDS OVER THE PAST SIX
MONTHS?
A. The Federal Reserve Board continued on a course of raising interest
rates into February 1995, when it raised short-term interest rates by
one-half-percentage point. Despite that, investors entered the period
believing that the Fed might be at the end of its tightening cycle. That
assumption proved to be correct and interest rates generally fell during
the period. A slow-growth economy, combined with relatively low inflation
and lower interest rates, provided a favorable backdrop for tax-free and
taxable bonds alike. A lack of supply caused tax-free bonds to outperform
taxable bonds during the first quarter of 1995. But by April, municipals
paused to catch their breath after posting such strong first-quarter gains
and they underperformed Treasures. What's more, discussion about several
federal income tax reform proposals, including a flat tax proposal in which
all individuals would be taxed at a uniform rate and deductions would be
eliminated, caused some investors to worry about the future attractiveness
of municipal bonds.
Q. TURNING TO THE NEW YORK MUNICIPAL MARKET, WHAT FACTORS DETERMINED ITS
RECENT PERFORMANCE?
A. New York state and New York City stopped issuing new bonds during the
first several months of the 1995 as each wrestled with its respective
budgetary problems. That caused the total supply of New York bonds to
dwindle and helped the New York municipal market to outperform the national
market during that time. As the year progressed, however, the state's and
New York City's budgetary problems became more difficult. Meanwhile,
investors began to anticipate that once both budgets had been worked out
there would be a flood of new bonds issued. The severity of the budget
problems coupled with an anticipated increase in supply caused the New York
municipal market to perform more in line with the national market in the
second half of the period.
Q. WHY DID THE FUND OUTPERFORM THE AVERAGE NEW YORK TAX-FREE FUND?
A. In late 1994, I had invested in out-of-favor deep discount bonds, which
sell well below their stated value, and non-callable bonds, which can't be
redeemed by their issuer before their scheduled maturity date. Because they
were out of favor, these bonds were priced cheaply compared to what I
believed to be their real value. Since the prices of both types tend to be
relatively sensitive to changes in interest rates, they came back into
favor in 1995 when interest rates were falling and ultimately helped the
fund's performance.
Q. DID YOU MODIFY THE WAY IN WHICH THE FUND IS INVESTED IN BONDS WITH
VARIOUS MATURITIES?
A. Yes, and here's why. The yield curve, which measures the difference in
yield among bonds with various maturities, was relatively flat in late 1994
and early 1995. That meant that investors weren't rewarded with a fair
amount of incremental yield for buying bonds with longer maturities. As a
result, at the beginning of the period I began positioning the fund so that
it had a relatively heavy weighting in bonds maturing in less than 15
years. That structure benefited the fund's performance during the municipal
market's rally, when the yield curve steepened dramatically. During this
steepening process, the value of shorter-term bonds generally rose more
than that of longer-term bonds. The municipal yield curve is reaching
historically steep levels and the yield advantage of owning longer-term
bonds has increased somewhat. So I sold some bonds with maturities of more
than 15 years, and bought some bonds with maturities of 20 years or more.
In many cases, I sold bonds with credit ratings of Ba and Baa, as rated by
Moody's Investors Service, and replaced them with bonds rated A, Aa and
Aaa. The spread, or the difference in yields between bonds of various
credit quality, was small during the period. That meant that even though
the exchange helped improve the overall credit quality of the fund, I
wasn't forced to sacrifice a lot of the additional yield that lower-rated
bonds usually carry.
Q. WHERE ELSE HAVE YOU FOUND OPPORTUNITIES, AND WHAT AREAS HAVE YOU
AVOIDED?
A. At one point, I sold some state-appropriated bonds, which rely on annual
appropriations by the state legislature to meet all or part of their
principal and interest payments, when they looked to me to be fairly
priced. Unfortunately, I wasn't able to sell as many state- appropriated
bonds as I wanted to at the time. Conversely, bonds issued by New York City
looked to me to be cheap at times, relative to what I thought their value
was, so I bought some in anticipation of them returning to more of a fair
value. But because I think the city will continue to face some budgetary
pressures, I've purposely kept the fund underweighted, relative to the New
York market as a whole, in New York City bonds.
Q. WHAT FACTORS DO YOU THINK WILL DETERMINE THE MUNICIPAL BOND MARKET'S
DIRECTION OVER THE NEXT SIX MONTHS?
A. The direction of the economy, inflation and interest rates will be the
main determinant of the future direction of the municipal market. As I've
already mentioned, New York state and New York City continue to experience
budgetary challenges. How successfully their respective governments resolve
those problems will also have an impact on the New York municipal market.
We could see the municipal market hiccup now and then as the possibility of
a flat tax fades in and out of public view. But in my view, it's unlikely
that a flat tax will be enacted before 1997, if ever, and the market
appears to have overreacted. On a more positive note, the net amount of
municipal bonds outstanding is shrinking. If you assume that demand for
tax-free bonds remains static, lower supply could be a positive for the
municipal market.
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, 1995,
more than $317 million
MANAGER: Norm Lind, since
1993; manager, Fidelity New
York Tax-Free High Yield
Portfolio, since 1993; Fidelity
New York Tax-Free Insured
Portfolio, since 1994; Spartan
Municipal Income Portfolio,
since 1990; joined Fidelity in
1986
(checkmark)
NORM LIND ON THE
NEW YORK ECONOMY:
"Local and state economic
factors ultimately will help to
determine the overall credit
quality of bonds issued in
New York. That said, there
are a number of factors I'm
currently keeping an eye on. I
think that over the next year
the state's overall economy
will grow at a pace slightly
slower than the nation as a
whole. And in my view,
upstate will show the most
growth, so that's where I'll
probably focus in the months
ahead. Additionally, I'll
probably concentrate on
bonds that have their own
dedicated revenue stream
and aren't as susceptible to
the economy's ups and
downs. For the time being, I'll
most likely continue to
underweight the fund in bonds
issued by New York City.
Reductions in state and
federal government aid are
likely to reduce the number of
governmental jobs located in
the city, thereby putting
pressure on the city's
employment rate."
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF JULY 31, 1995
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO
Transportation 21.0 21.3
Lease Revenue 13.0 11.8
General Obligation 10.9 10.6
Special Tax 10.8 11.6
Industrial Development 7.9 15.9
AVERAGE YEARS TO MATURITY AS OF JULY 31, 1995
6 MONTHS AGO
Years 14.7 20.3
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF JULY 31, 1995
6 MONTHS AGO
Years 8.0 9.3
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF JULY 31, 1995 AS OF JANUARY 31, 1995
Aaa 20.8%
Aa, A 32.8%
Baa 39.4%
Ba, B 0.0%
Non-rated 1.3%
Short-term
investments 5.7%
Aaa 3.7%
Aa, A 35.1%
Baa 45.0%
Ba, B 5.1%
Non-rated 4.8%
Short-term
investments 6.3%
Row: 1, Col: 1, Value: 20.8
Row: 1, Col: 2, Value: 32.8
Row: 1, Col: 3, Value: 39.4
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 2.3
Row: 1, Col: 6, Value: 5.7
Row: 1, Col: 1, Value: 3.7
Row: 1, Col: 2, Value: 35.1
Row: 1, Col: 3, Value: 45.0
Row: 1, Col: 4, Value: 5.1
Row: 1, Col: 5, Value: 4.8
Row: 1, Col: 6, Value: 6.3
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO
INVESTMENTS JULY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL BONDS - 94.3%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 83.4%
Babylon Ind. Dev. Agcy. Resource Recovery Rev.
(Ogden Martin Sys. Babylon, Inc. Co.):
Series A, 8.50% 1/1/19 (e) Baa1 $ 930,000 $ 1,012,538
Series B, 8.50% 1/1/19 (e) Baa1 2,875,000 3,130,156
Battery Park New York City Auth. Rev.
Series 1990, 6.50% 5/1/20
(Pre-Refunded to 5/1/99 @ 100)(d) Aaa 3,000,000 3,232,500
Franklin County Ctfs. of Prtn. (Court House
Redev. Proj.) 8.125% 8/1/06 (e) BBB- 2,120,000 2,347,900
Monroe County Wtr. Auth. Wtr. Rev. Rfdg.
Series B, 5.25% 8/1/16 A1 1,800,000 1,642,500
Nassau County Gen. Oblig. Series P,
6.30% 11/1/00 (FGIC Insured) Aaa 2,670,000 2,870,250
New York City Gen. Oblig. Rev.:
Rfdg. Series A, 7% 8/1/04 Baa1 5,000,000 5,300,000
Series A, 8% 8/15/21
(Escrowed to maturity)(d) Aaa 2,485,000 2,963,363
Series B:
7.50% 2/1/02 Baa1 1,000,000 1,087,500
7.75% 2/1/06 Baa1 5,000,000 5,450,000
7.50% 2/1/07 Baa1 5,500,000 5,940,000
Series H, 7.0% 2/1/05 Baa1 3,500,000 3,723,125
7.50% 2/1/03 Baa1 5,000,000 5,443,750
New York City Ind. Dev. Agcy. Civic Facs. Rev.
(YMCA of Greater NY Proj.) 8% 8/1/16 (e) - 3,950,000 4,216,625
New York City Ind. Dev. Auth. Spl. Facs. Rev.:
(American Airlines, Inc. Proj.)
Series 1990, 8% 7/1/20 (b) Baa3 8,575,000 9,035,906
(Terminal One Group Assoc. Proj.)
6% 1/1/15 A 15,560,000 14,762,550
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev. 4.05% 8/9/95 (MBIA Insured) Aaa 5,000,000 5,000,000
New York State Dorm. Auth. Rev.:
Rfdg. (State Univ. Edl. Facs.):
Series A:
5.25% 5/15/15 Baa1 7,850,000 6,957,063
5.875% 5/15/17 Baa1 3,750,000 3,576,563
Series B:
5.25% 5/15/05 Baa1 2,700,000 2,615,625
5.25% 5/15/09 Baa1 2,475,000 2,289,375
5.25% 5/15/10 Baa1 1,350,000 1,231,875
7.50% 5/15/11 Baa1 2,000,000 2,287,500
(City Univ. Sys.) Series C, 7.50% 7/1/10 Baa1 4,000,000 4,565,000
(City Univ. Sys. Consolidated) Series A:
7.625% 7/1/20 Aaa 5,000,000 5,800,000
5.75% 7/1/09 Baa1 5,000,000 4,806,250
(State Univ. Edl. Facs.) Series A, 7.70% 5/15/12
(Pre-refunded to 5/15/00 @ 102)(d) Aaa 4,000,000 4,640,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Energy Research & Dev. Auth.
Gas Facs. Rev. (Brooklyn Union Gas Co.):
8.579% 4/1/20, INFL (f) A1 $ 3,500,000 $ 3,648,750
9.466% 7/15/26, INFL (f) A1 3,500,000 3,933,125
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 1,100,000
Series 1990 B, 7.50% 3/15/11 Aaa 1,500,000 1,651,875
Series A, 6.80% 6/15/01 Aa 4,000,000 4,430,000
Series B, 5.20 5/15/14 Aaa 3,000,000 2,778,750
Series D:
6.10% 5/15/03 Aaa 2,240,000 2,424,800
6.20% 11/15/04 Aaa 1,250,000 1,368,750
New York State Envir. Facs. Corp. Resource
Recovery Rev. (Huntington Proj.) Series A,
7.50% 10/1/12 (b) Baa 12,500,000 13,093,750
New York State Local Gov't. Assistance Corp.
Rfdg.:
Series B, 5.50% 4/1/21 A 5,300,000 4,829,625
Series C, 5.50% 4/1/17 A 3,275,000 3,033,469
Series E:
6% 4/1/14 A 10,110,000 10,122,638
5.25% 4/1/16 A 11,100,000 10,087,125
New York State Med. Care Facs. Fin. Agcy. Rev.
(Mental Health Svcs.) Series A,
7.75% 8/15/10 (MBIA Insured)
(Pre-Refunded to 2/15/00 @ 102)(d) Aaa 2,540,000 2,933,700
New York State Metropolitan Trans. Auth. Svc.
Contract Trans. Facs. Rev:
Rfdg. Series 7, 5.45% 7/1/07 Baa1 3,230,000 3,104,838
Series O, 5.75% 7/1/07 Baa1 2,500,000 2,456,250
Series 3, 9.25% 7/1/99 Baa1 2,000,000 2,290,000
Series 7, 0% 7/1/10 Baa1 9,500,000 3,740,625
Series L, 7.50% 7/1/17 (AMBAC Insured) Aaa 1,000,000 1,078,750
New York State Mtg. Agcy. Rev.
(Homeowner Mtg.)(b):
Series 48, 6% 4/1/13 Aa 8,805,000 8,529,844
Series HH-3, 7.95% 4/1/22 Aa 2,500,000 2,671,875
Series SS, 7.95% 10/1/22 Aa 2,600,000 2,788,500
New York State Pwr. Auth. Rev. & Gen. Purp.
Series CC, 5.125% 1/1/11 (FGIC Insured) Aaa 10,000,000 9,350,000
New York State Thruway Auth. Svc. Contract Rev.
(Local Hwy. & Bridge) 7.25% 1/1/10 Baa1 2,500,000 2,668,750
New York State Tollway Auth. Hwy. & Bridge
Trust Fund Series A:
6% 4/1/00 (AMBAC Insured) Aaa 2,000,000 2,117,500
6.25% 4/1/04 (MBIA Insured) Aaa 1,750,000 1,907,500
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Urban Dev. Corp. Rev.:
Rfdg.(Correctional Cap. Facs.) Series A:
6.30% 1/1/03 Baa1 $ 2,270,000 $ 2,369,313
6.40% 1/1/04 Baa1 2,730,000 2,859,675
5.50% 1/1/09 Baa1 4,000,000 3,775,000
(Syracuse Univ. Ctr. Science & Technology)
7.875% 1/1/17 Baa1 2,000,000 2,135,000
Suffolk County Ind. Dev. Agcy. Civic Facs. Rev.
(Dowling College) 8.25% 12/1/20 BBB 990,000 1,084,050
Suffolk County Wtr. Auth. 6% 6/1/17
(MBIA Insured) Aaa 3,160,000 3,199,500
Triborough Bridge & Tunnel Auth. Rev.:
Rfdg. (Spl. Oblig.):
Series 1991 A, 6.625% 1/1/17
(MBIA Insured) Aaa 1,000,000 1,050,000
Series B, 7.10% 1/1/10 A1 3,000,000 3,262,500
(Convention Ctr. Proj.) Series E:
7.25% 1/1/10 (e) Baa1 5,670,000 6,314,963
6% 1/1/11 Baa1 1,500,000 1,475,625
(Gen. Purp.) Series A:
4.60% 1/1/04 Aa 3,800,000 3,728,750
4.80% 1/1/08 Aa 5,000,000 4,787,500
6% 1/1/03 Aa 1,250,000 1,351,563
261,462,142
NEW YORK & NEW JERSEY - 7.5%
New York & New Jersey Port Auth.
Consolidated 85th Series:
5.20% 9/1/16 A1 2,000,000 1,820,000
5.20% 9/1/18 A1 1,675,000 1,517,969
5.375% 3/1/28 A1 7,100,000 6,469,875
Consolidated 88th Series, 4.50% 10/1/04 A1 4,330,000 4,086,438
Consolidated 91st Series 5.2% 11/15/15 A1 4,500,000 4,078,125
Consolidated 99th Series, 7% 11/1/04
(FGIC Insured) Aaa 5,040,000 5,676,300
23,648,707
PUERTO RICO - 3.4%
Puerto Rico Commonwealth Gen. Oblig. Rfdg.
Unltd. Tax 5.50% 7/1/13 Baa1 3,000,000 2,853,750
Puerto Rico Commonwealth Hwy. & Trans. Auth.
Rev. Rfdg. Series W, 5.50% 7/1/13 Baa1 1,000,000 942,500
Puerto Rico Infrastructure Fing. Auth. Spl. Tax
Series 1988 A, 7.75% 7/1/08 Baa1 1,500,000 1,640,620
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
PUERTO RICO - CONTINUED
Puerto Rico Tel. Auth. Rev.:
5.50% 1/16/15 (MBIA Insured) Aaa $ 3,800,000 $ 3,600,500
4% 8/10/95 (MBIA Insured) Aaa 1,600,000 1,600,000
10,637,370
TOTAL MUNICIPAL BONDS
(Cost $292,532,338) 295,748,219
MUNICIPAL NOTES (A) - 5.7%
NEW YORK - 5.7%
Amherst Ind. Dev. Auth. Ind. Dev. Rev.
(Maple Dev. Proj.) Series 1986, 4.10%,
LOC Marine Midland Bank, VRDN (b) - 2,570,000 2,570,000
New York City Hsg. Dev. Corp. Multi-Family
Mtg. Rev. (Tribeca Towers) Series 1994A,
3.65%, (FNMA Guaranteed) VRDN (b) A-1+ 5,000,000 5,000,000
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev. (Niagra Mohawk Pwr. Proj.)
Series 1988 A, 4.40%, LOC Morgan
Guaranty Trust Co., VRDN (b) A-1+ 1,300,000 1,300,000
New York Envir. Facs. Corp. Resource Recovery
Rev. (Hunting, Inc. Proj.) Series 1989, 4%,
LOC Union Bank of Switzerland, VRDN (b) A-1+ 9,000,000 9,000,000
TOTAL MUNICIPAL NOTES
(Cost $17,870,000) 17,870,000
TOTAL INVESTMENTS - 100%
(Cost $310,402,338) $ 313,618,219
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
50 Municipal Bond Contracts Sept. 1995 $ 5,643,750 $ (75,297)
THE FACE VALUE OF FUTURES SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 1.8%
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) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
(d) Security collateralized by an amount sufficient to pay interest and
principal.
(e) A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $10,264,019.
(f) 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.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Transportation 21.0%
Lease Revenue 13.0
General Obligation 10.9
Special Tax 10.8
Others
(individually less than 10%) 44.3
TOTAL 100.0%
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 53.5% AAA, AA, A 46.0%
Baa 38.3% BBB 2.9%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 1.3%. FMR has
determined that unrated debt securities that are lower quality account for
1.3% of the total value of investment in securities.
INCOME TAX INFORMATION
At July 31, 1995, the aggregate cost of investment securities for income
tax purposes was $310,919,057. Net unrealized appreciation aggregated
$2,699,162, of which $7,932,236 related to appreciated investment
securities and $5,233,074 related to depreciated investment securities.
At January 31, 1995, the fund elected to defer to its fiscal year ending
January 31, 1996, $8,889,987 of losses recognized during the period
November 1, 1994 to January 31, 1995.
At January 31, 1995, the fund was required to defer $75,461 of losses on
futures contracts and options.
SPARTAN NEW YORK MUNICIPAL HIGH YIELD PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995 (UNAUDITED)
5.ASSETS 6. 7.
8.Investment in securities, at value (cost $310,402,338) 9. $ 313,618,219
- -
See accompanying schedule
10.Interest receivable 11. 4,260,334
12.Redemption fees receivable 13. 10
14.Receivable for daily variation on futures contracts 15. 20,313
16. 17.TOTAL ASSETS 18. 317,898,876
19.LIABILITIES 20. 21.
22.Payable to custodian bank $ 173,667 23.
24.Payable for fund shares redeemed 41,076 25.
26.Distributions payable 315,551 27.
28.Accrued management fee 148,361 29.
30. 31.TOTAL LIABILITIES 32. 678,655
33.34.NET ASSETS 35. $ 317,220,221
36.Net Assets consist of: 37. 38.
39.Paid in capital 40. $ 325,859,756
41.Accumulated undistributed net realized gain (loss) 42. (11,780,119)
on investments
43.Net unrealized appreciation (depreciation) 44. 3,140,584
on investments
45.46.NET ASSETS, for 30,892,723 shares outstanding 47. $ 317,220,221
48.49.NET ASSET VALUE, offering price and redemption 50. $10.27
price per share ($317,220,221 (divided by) 30,892,723 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1995 (UNAUDITED)
51.52.INTEREST INCOME 53. $ 9,402,479
54.EXPENSES 55. 56.
57.Management fee $ 858,441 58.
59.Non-interested trustee's compensation 740 60.
61. 62.TOTAL EXPENSES 63. 859,181
64.65.NET INTEREST INCOME 66. 8,543,298
67.REALIZED AND UNREALIZED GAIN (LOSS) 69. 70.
68.Net realized gain (loss) on:
71. Investment securities (2,127,393) 72.
73. Futures contracts (304,772) (2,432,165)
74.Change in net unrealized appreciation (depreciation) 75. 76.
on:
77. Investment securities 17,452,222 78.
79. Futures contracts 58,916 17,511,138
80.81.NET GAIN (LOSS) 82. 15,078,973
83.84.NET INCREASE (DECREASE) IN NET ASSETS 85. $ 23,622,271
RESULTING FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
86.INCREASE (DECREASE) IN NET ASSETS
87.Operations $ 8,543,298 $ 21,050,856
Net interest income
88. Net realized gain (loss) (2,432,165) (4,678,274)
89. Change in net unrealized appreciation (depreciation) 17,511,138 (46,375,984)
90. 91.NET INCREASE (DECREASE) IN NET ASSETS 23,622,271 (30,003,402)
RESULTING FROM OPERATIONS
92.Distributions to shareholders (8,543,298) (21,050,856)
From net interest income
93. From net realized gain - (5,445,236)
94. In excess of net realized gain - (4,245,511)
95. 96.TOTAL DISTRIBUTIONS (8,543,298) (30,741,603)
97.Share transactions 26,383,974 60,874,946
Net proceeds from sales of shares
98. Reinvestment of distributions 7,043,798 26,203,604
99. Cost of shares redeemed (26,398,638) (177,324,646)
100. Redemption fees 7,083 66,557
101.102. 7,036,217 (90,179,539)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS
103. 22,115,190 (150,924,544)
104.TOTAL INCREASE (DECREASE) IN NET ASSETS
105.NET ASSETS 106. 107.
108. Beginning of period 295,105,031 446,029,575
109. End of period $ 317,220,221 $ 295,105,031
110.OTHER INFORMATION 112. 113.
111.Shares
114. Sold 2,604,724 5,994,383
115. Issued in reinvestment of distributions 691,087 2,597,398
116. Redeemed (2,587,889) (17,610,723)
117. Net increase (decrease) 707,922 (9,018,942)
</TABLE>
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, NINE MONTHS YEARS ENDED APRIL 30,
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995 1994C 1993 1992 1991
120.SELECTED PER-SHARE DATA
121.Net asset value, beginning of period
$ 9.780 $ 11.380 $ 10.890 $ 10.480 $ 10.090 $ 9.690
122.Income from Investment Operations
.276 .607 .622 .491 .675 .717
Net interest income
123. Net realized and unrealized gain (loss)
.490 (1.322) .768 .518 .408 .394
124. Total from investment operations
.766 (.715) 1.390 1.009 1.083 1.111
125.Less Distributions
(.276) (.607) (.622) (.491) (.675) (.717)
From net interest income
126. From net realized gain on investments
- - (.160) (.280) (.110) (.020) -
127. In excess of net realized gain on investments
- - (.120) - - - -
128. Total distributions
(.276) (.887) (.902) (.601) (.695) (.717)
129.Redemption fees added to paid in capital
- - .002 .002 .002 .002 .006
130.Net asset value, end of period
$ 10.270 $ 9.780 $ 11.380 $ 10.890 $ 10.480 $ 10.090
131.TOTAL RETURN B
7.89% -6.16% 13.12 9.83% 11.03 11.88
% % %
132.RATIOS AND SUPPLEMENTAL DATA
133.Net assets, end of period (000 omitted)
$ 317,220 $ 295,105 $ 446,030 $ 366,840 $ 291,913 $ 163,472
134.Ratio of expenses to average net assets
.55% .55% .55 .48% .38 .19
A % A % %
135.Ratio of expenses to average net assets before
.55% .55% .55 .55% .55 .55
expense reductions
A % A % %
136.Ratio of net interest income to average net assets
5.47% 5.98% 5.49 6.03% 6.51 7.21
A % A % %
137.Portfolio turnover rate
114% 38% 50 35% 21 40
A % A % %
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C EFFECTIVE FEBRUARY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INTEREST INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
FINANCIAL HIGHLIGHTS
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
securities that have grown in value), and the effect of the $5 account
closeout fee. You can also look at the fund's income to measure
performance. If Fidelity had not reimbursed certain fund expenses during
the periods shown, the total returns, dividends, and yields would have been
lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND
Spartan New York Intermediate Municipal 6.32% 6.00% 4.17%
Lehman Brothers Municipal Bond Index 7.61% 7.87% n/a
Average New York Intermediate
Municipal Bond Fund 6.30% 6.00% n/a
Consumer Price Index 1.46% 2.76% 4.60%
CUMULATIVE TOTAL RETURNS show the fund's performance over a set period - in
this case, six months, one year 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, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the Lehman
Brothers Municipal Bond Index - a broad gauge of the municipal bond market.
To measure how the fund's performance stacked up against its peers, you can
also compare it to the average New York intermediate municipal bond fund,
which reflects the performance of 22 New York intermediate municipal bond
funds with similar objectives tracked by Lipper Analytical Services over
the past six months. 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
CPI returns begin on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 1 LIFE OF
YEAR FUND
Spartan New York Intermediate Municipal 6.00% 2.60%
Lehman Brothers Municipal Bond Index 7.87% n/a
Average New York Intermediate
Municipal Bond Fund 6.00% n/a
Consumer Price Index 2.76% 2.88%
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 YorkMunicipal Bond Ind
12/31/93 10000.00 10000.00
01/31/94 10110.96 10114.00
02/28/94 9874.47 9852.05
03/31/94 9490.81 9451.07
04/30/94 9590.31 9531.40
05/31/94 9711.74 9614.33
06/30/94 9671.17 9558.56
07/31/94 9815.93 9733.48
08/31/94 9837.50 9767.55
09/30/94 9692.01 9623.97
10/31/94 9538.05 9452.66
11/30/94 9393.15 9281.57
12/31/94 9574.33 9485.76
01/31/95 9786.16 9757.06
02/28/95 10014.76 10040.99
03/31/95 10141.74 10156.46
04/30/95 10141.88 10168.65
05/31/95 10343.94 10493.03
06/30/95 10287.06 10401.74
07/31/95 10405.71 10500.55
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan New
York Intermediate Municipal Portfolio on December 31, 1993, shortly after
the fund started. As the chart shows, by July 31, 1995, the value of your
investment would have grown to $10,406- a 4.06% increase on your initial
investment. This assumes you still own the fund on July 31, 1995 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 $10,496- a 4.96% 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
DECEMBER 29, 1993
SIX MONTHS YEAR (COMMENCEMENT
ENDED ENDED OF OPERATIONS) TO
JULY 31, JANUARY 31, JANUARY 31,
1995 1995 1994
Dividend return 2.56% 4.82% 0.33%
Capital appreciation
return 3.76% -8.05% 0.88%
Total return 6.32% -3.23% 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, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 4.03(cents) 23.33(cents) 48.04(cents)
Annualized dividend rate 4.92% 4.92% 5.11%
30-day annualized yield 4.89% - -
30-day annualized tax-equivalent yield 8.69% - -
</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 $9.63 over
the past month, $9.56 over the past six months, and $9.40 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 43.71% combined effective 1995 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 4.59% and 8.15%, respectively.
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. HOW DID THE FUND PERFORM, DAVID?
A. In line with its peers. For the six- and 12-month periods ended July 31,
1995, the Spartan New York Intermediate Portfolio returned 6.32% and 6.00%,
respectively. For the same six- and 12-month periods, the average New York
intermediate municipal bond fund had returns of 6.30% and 6.00%,
respectively, as tracked by Lipper Analytical Services.
Q. THE MUNICIPAL BOND MARKET ENJOYED A HEALTHY RALLY DURING THE PAST SIX
MONTHS. IN YOUR VIEW, WHAT FACTORS DROVE THAT RALLY?
A. Beginning early this year, investors started to anticipate that the
Federal Reserve Board was near the end of its cycle of raising interest
rates in an effort to thwart any future inflation. As a result, interest
rates on taxable bonds started to fall, and rates on tax-free bonds quickly
followed suit. During the first quarter of 1995, municipal bonds were the
best performing fixed-income investment, outperforming Treasuries and other
taxable securities. However, the municipal bond market's outperformance was
put on hold in April when investors began to worry that certain federal tax
reform proposals might negatively impact the future attractiveness of
municipal bonds. What caused municipal investors the most concern was the
flat-tax proposal, which would tax individuals at a uniform rate and
eliminate deductions.
Q. WHAT FACTORS AFFECTED THE NEW YORK MUNICIPAL MARKET SPECIFICALLY?
A. Both New York City and New York state wrestled with budget problems
during much of the past six months, and both were late in issuing their
current budgets. In the case of New York City, that was one reason why the
rating agency Standard & Poor's downgraded the City's credit rating. In the
case of New York state, the delayed budget stymied an anticipated upgrade
of the state's credit rating. However, these developments didn't seem to
have a significant impact on the prices of New York municipal bonds and
they performed in line with the national municipal market. One reason for
that was that during their budget processes, New York City and New York
state briefly stopped issuing new municipal bonds, and supply therefore
diminished. Meanwhile, demand remained fairly constant. Limited supply and
stable demand helped keep New York municipal prices firm.
Q. WHAT WAS YOUR STRATEGY OVER THE PAST SIX MONTHS?
A. Let's start with the fund's structure. During much of the period, the
yield curve was relatively flat. That meant that there wasn't a significant
difference between yields on bonds of various maturities, and consequently,
investors weren't really rewarded with much additional yield by investing
in longer-term bonds. So I maintained a "bulleted strategy," concentrating
about 33% of the fund's investments in bonds with maturities of seven to 10
years by the end of the period. A bulleted strategy - in which the fund is
heavily concentrated in one maturity range - benefits the fund if the yield
curve doesn't flatten any further, or if it starts to steepen once again.
Recently, that steepening has occurred.
Q. SO HAVE YOU CHANGED YOUR STRATEGY?
A. Yes, lately I've been moving the fund to a more "barbelled" structure,
in which I heavily weight two ends of the maturity spectrum. In this case,
I am heavily weighting bonds with maturities of 15 to 20 years on one end
and bonds with maturities of five to 10 years on the other end. I am doing
that because I anticipate that the yield curve will once again flatten.
Q. HAVE YOU MADE ANY CHANGES IN THE WAY THE FUND IS DISTRIBUTED AMONG BONDS
WITH DIFFERENT CREDIT RATINGS?
A. Yes. I've sold some lower-grade bonds and replaced them with bonds rated
Aaa by Moody's Investors Service. Of course, one of the advantages of
owning lower-grade bonds is that they tend to pay higher yields.
Fortunately, I was able to make the switch from lower- to higher-quality
bonds at a time when the yield spread between those types of bonds was
narrow, and therefore, I didn't have to sacrifice much yield by improving
the overall credit quality of the fund. The fund's stake in Aaa-rated bonds
rose to 47.2% by the end of the period, up from 31.4% six months earlier.
The fact that there tends to be relatively healthy and steady demand for
Aaa-rated bonds from individual investors also makes these bonds
attractive.
Q. WHAT OTHER TYPES OF BONDS LOOK ATTRACTIVE - AND WHICH DON'T - GOING
FORWARD?
A. In general, I try to avoid investing in bonds that trade at par, or face
value. Rather, I prefer to invest in bonds that sell at a discount - below
face value - or at a premium - above face value. Here's why: When a par
bond rises above its par value, it stops trading to its maturity date.
Instead, it trades to an earlier call date, the first date the issuer can
redeem the bond. When that occurs, a par bond's potential for price
appreciation is limited, but it still carries a level of risk that is
equivalent to that of a longer-term bond. Recently, I've found attractive
opportunities in premium bonds.
Q. WHAT'S AHEAD FOR THE MUNICIPAL MARKET?
A. I consider it unlikely that municipal bond prices will enjoy the same
degree of appreciation over the next six months that they did in the
previous six. I think it would be wise for shareholders to expect that the
fund's total return will be less dependent on capital appreciation and more
dependent on income. Investors should keep in mind that continued talk of
tax reform will likely add some volatility to the municipal market for the
balance of the year. But in my view, there probably won't be any new
dramatic tax legislation enacted before 1997.
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 10 years
START DATE: December 29,
1993
SIZE: as of July 31, 1995,
more than $48 million
MANAGER: David Murphy,
since 1993; manager,
Spartan Short-Intermediate
Municipal Fund, since 1989;
Spartan Intermediate
Municipal Portfolio, since
1993; Spartan New Jersey
Municipal High Yield Portfolio,
since 1991; Fidelity Limited
Term Municipals, since 1989;
Fidelity New York Tax-Free
Insured Portfolio, 1992-1994;
joined Fidelity in 1989
(checkmark)
DAVID MURPHY'S OUTLOOK FOR THE
NEW YORK ECONOMY:
"Looking forward, there are a
number of questions about
New York's economic
strength. Key among them is
whether employment growth
will remain strong enough to
sustain the state's recent
economic expansion or
whether it will trail off and put
a lid on growth. Even though I
do expect a continuation of
the state's recent expansion, I
think that the state growth
rate will lag that experienced
by the nation as a whole.
That's because I expect
employment growth for both
the state and New York City to
be somewhat sluggish. Job
growth in the financial
services industry - which
was one of the key engines
firing economic growth during
previous economic
expansions - has recently
remained weak, despite a
rebound in profitability for
banks and investment firms.
With the layoffs and attrition
resulting from bank
consolidations, this segment
of the state's employment
base may actually contract
over the next several years."
- -----
Effective October 1, 1995,
Norman Lind will become
manager of this fund.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF JULY 31, 1995
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO
Resource Recovery 13.1 18.6
Water & Sewer 12.8 9.4
Transportation 12.7 16.9
General Obligation 12.3 13.7
Education 9.4 1.8
AVERAGE YEARS TO MATURITY AS OF JULY 31, 1995
6 MONTHS AGO
Years 9.0 9.0
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF JULY 31, 1995
6 MONTHS AGO
Years 6.0 5.8
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF JULY 31, 1995 AS OF JANUARY 31, 1995
Aaa 47.3%
Aa, A 23.7%
Baa 15.0%
Ba, B 0.0%
Non-rated 3.5%
Short-term
investments 10.5%
Aaa 31.4%
Aa, A 20.3%
Baa 25.6%
Ba, B 0.0%
Non-rated 0.0%
Short-term
investments 22.7%
Row: 1, Col: 1, Value: 47.3
Row: 1, Col: 2, Value: 23.7
Row: 1, Col: 3, Value: 15.0
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 3.5
Row: 1, Col: 6, Value: 10.5
Row: 1, Col: 1, Value: 31.4
Row: 1, Col: 2, Value: 20.3
Row: 1, Col: 3, Value: 25.6
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 22.7
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO
INVESTMENTS JULY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL BONDS - 89.5%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 86.0%
Babylon Waste Facs. 9% 8/1/09 (FGIC Insured) Aaa $ 350,000 $ 462,000
Buffalo Swr. Auth. Rev. (Swr. Sys.) Series G,
5.25% 7/1/08 (FGIC Insured) Aaa 450,000 442,688
Hempstead Town Ind. Dev. Agcy. Resource
Recovery Rev. (American Ref-Fuel Co.)
7.375% 12/1/05 Baa1 2,730,000 2,852,850
Monroe County Pub. Impt. Unltd. Tax
5% 6/1/07 (AMBAC Insured) Aaa 1,500,000 1,462,500
Nassau County Combined Swr. Dist. Rfdg.
Series E, 5.30% 7/1/07 (MBIA Insured) Aaa 350,000 351,750
New York City Gen. Oblig. Rfdg.:
Series A, 7% 8/1/04 Baa1 1,000,000 1,060,000
Series D, 6.30% 8/15/01 Baa1 1,000,000 1,038,750
New York City Ind. Dev. Agcy. Civic Facs. Rev.
(USTA Nat'l. Tennis Ctr. Proj.)
6.40% 11/15/08 (FSA Insured) Aaa 1,000,000 1,081,250
New York City Ind. Dev. Agcy. Spl. Facs. Rev.
(Terminal One Group Assoc. Proj.)
5.70% 1/1/04 (b) A 1,500,000 1,520,625
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev. Series F, 5.80% 6/15/09 A 200,000 199,000
New York State Ctfs. of Prtn. 6.70% 9/1/97 Baa1 1,110,000 1,148,850
New York State Gen. Oblig. Crossover Rfdg.
7.50% 11/15/00 A 1,000,000 1,136,250
New York State Dorm. Auth. Rev.
(Columbia Univ.) Series A:
4.40% 7/1/04 Aaa 2,400,000 2,271,000
4.50% 7/1/05 Aaa 2,500,000 2,356,250
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev. (New York State Elec. & Gas
Corp.) 5.90% 12/1/06 (MBIA Insured) Aaa 1,000,000 1,042,500
New York State Envir. Facs. Corp. Poll. Cont. Rev.
(State Wtr. Revolving Fund New York City Muni.):
Series D, 6.10% 5/15/03 Aaa 1,000,000 1,082,500
Series E, 6.25% 6/15/05
(AMBAC Insured) Aa 1,500,000 1,612,500
New York State Local Govt. Assistance Corp.:
Series A, 7% 4/1/04 A 2,500,000 2,765,625
Series B:
7.375% 4/1/12
(Pre-Refunded to 4/1/01 @ 102)(d) Aaa 1,000,000 1,157,500
7.50% 4/1/20 (Escrowed to Maturity)(d) Aaa 1,000,000 1,163,750
Series D, 5.10% 4/1/07 A 750,000 726,563
New York State Metropolitan Trans. Auth. Svc.
Contract (Trans. Facs.) Series O,
5.25% 7/1/01 Baa1 100,000 100,000
New York State Mtg. Agcy. Rev. (Homeowner
Mtg.) Series 48, 6.05% 4/1/17 (b) Aa 2,000,000 1,932,500
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Pwr. Auth. Rev. & Gen. Purp.:
Rfdg. Series W, 6.50% 1/1/08 Aa $ 250,000 $ 277,188
Series CC, 5% 1/1/09 (FGIC Insured) Aaa 1,000,000 928,750
New York State Tollway Auth. Hwy. & Bridge
Trust Fund Series A, 6.25% 4/1/04
(MBIA Insured) Aaa 500,000 545,000
New York State Urban Dev. Corp. Rev. Rfdg.
(Correctional Cap. Facs.):
Series A, 6.30% 1/1/03 Baa1 1,000,000 1,043,750
5.25% 1/1/03 Baa1 165,000 162,525
Niagara Falls Bridge Commission Toll Rev.:
Rfdg. Series B, 5.125% 10/1/07
(FGIC Insured) Aaa 1,000,000 973,750
5.125% 10/1/08 (FGIC Insured) Aaa 2,520,000 2,438,100
Niagara Falls Wtr. Treatment Plant Rev.
7% 11/1/13 (MBIA Insured) Aaa 1,000,000 1,095,000
North Hempstead Solid Waste Mgt.
4.90% 2/1/06 (MBIA Insured) Aaa 125,000 120,156
Onondaga County Gen. Oblig.
5.70% 4/1/08 Aa 1,000,000 1,033,750
Suffolk County Ind. Dev. Agcy. Southwest Swr.
Sys. Rev. 6% 2/1/07 (FGIC Insured) Aaa 1,340,000 1,413,700
Suffolk County Wtr. Auth. Wtrwks. Rev.:
Rfdg. Series C, 5.75% 6/1/10,
(AMBAC Insured)
(Escrowed to Maturity)(d) Aaa 30,000 32,438
5.75% 6/1/10 (AMBAC Insured) Aaa 170,000 170,000
Triborough Bridge & Tunnel Auth. Rev.:
(Gen. Purp.) Series A, 6% 1/1/11 Aa 500,000 514,375
Series R, 6% 1/1/20 (MBIA Insured)
(Pre-Refunded to 1/1/00 @ 100)(d) Aaa 90,000 95,850
Series S, 7% 1/1/21
(Escrowed to Maturity)(d) Aaa 1,000,000 1,130,000
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 1,516,875
42,458,408
NEW YORK & NEW JERSEY - 3.5%
New York & New Jersey Port Auth. Series SS,
4.90% 9/1/97 (b) MIG 1 1,700,000 1,720,075
TOTAL MUNICIPAL BONDS
(Cost $43,653,314) 44,178,483
MUNICIPAL NOTES (A) - 10.5%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
NEW YORK - 10.5%
Chautauqua County Ind. Dev. Auth. Rev.
(Bush Industries, Inc. Proj.) Series 84, 4.50%,
LOC Marine Midland Bank, VRDN - $ 1,500,000 $ 1,500,000
Erie County Ind. Dev. Auth. Ind. Dev. Rev.
(National Wire Prods.) Series 1988 E, 4.10%,
LOC Marine Midland Bank, VRDN (b) A-2 675,000 675,000
Erie County Ind. Dev. Auth. Ind. Dev. Rev.
(The Holling Press, Inc.) Series 1989 F, 4.20%,
LOC Marine Midland Bank, VRDN (b) - 1,240,000 1,240,000
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev. Series 1994 C, 3.90% 6/15/23
(FGIC Insured) VRDN - 300,000 300,000
New York Envir. Facs. Corp. Resource Recovery
Rev. (Hunting, Inc. Proj.) Series 1989, 4%,
LOC Union Bank of Switzerland,
VRDN (b) A-1+ 1,500,000 1,500,000
TOTAL MUNICIPAL NOTES
(Cost $5,215,000) 5,215,000
TOTAL INVESTMENTS - 100%
(Cost $48,868,314) $ 49,393,483
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) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
(d) Security collateralized by an amount sufficient to pay interest and
principal.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Resource Recovery 13.1%
Water & Sewer 12.8
Transportation 12.7
General Obligation 12.3
Others
(individually less than 10%) 49.1
TOTAL 100.0%
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 71.0% AAA, AA, A 72.8%
Baa 15.0% BBB 9.2%
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 3.5%. FMR has
determined that unrated debt securities that are lower quality account for
0.0% of the total value of investment in securities.
INCOME TAX INFORMATION
At July 31, 1995, the aggregate cost of investment securities for income
tax purposes was $48,868,314. Net unrealized appreciation aggregated
$525,169, of which $797,603 related to appreciated investment securities
and $272,434 related to depreciated investment securities.
At January 31, 1995, the fund elected to defer to its fiscal year ending
January 31, 1996, $311,521 of losses recognized during the period November
1, 1994 to January 31, 1995.
At January 31, 1995, the fund had a capital loss carryforward of
approximately $351,000 which will expire on January 31, 2003.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995 (UNAUDITED)
138.ASSETS 139. 140.
141.Investment in securities, at value (cost 142. $ 49,393,483
$48,868,314) -
See accompanying schedule
143.Cash 144. 5,849
145.Interest receivable 146. 615,124
147.Receivable from investment adviser for expense 148. 12,363
reductions
149. 150.TOTAL ASSETS 151. 50,026,819
152.LIABILITIES 153. 154.
155.Payable for investments purchased $ 1,175,363 156.
157.Distributions payable 24,421 158.
159.Accrued management fee 22,665 160.
161.Other payables and accrued expenses 3,907 162.
163. 164.TOTAL LIABILITIES 165. 1,226,356
166.167.NET ASSETS 168. $ 48,800,463
169.Net Assets consist of: 170. 171.
172.Paid in capital 173. $ 49,119,139
174.Accumulated undistributed net realized gain (loss) 175. (843,845)
on investments and foreign currency transactions
176.Net unrealized appreciation (depreciation) 177. 525,169
on investments
178.179.NET ASSETS, for 5,069,951 shares outstanding 180. $ 48,800,463
181.182.NET ASSET VALUE, offering price and 183. $9.63
redemption price per share ($48,800,463 (divided by) 5,069,951
shares)
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1995 (UNAUDITED)
184.INTEREST INCOME 185. $ 1,170,364
186.EXPENSES 187. 188.
189.Management fee $ 125,990 190.
191.Non-interested trustees' compensation 81 192.
193. Total expenses before reductions 126,071 194.
195. Expense reductions (84,695) 41,376
196.197.NET INTEREST INCOME 198. 1,128,988
199.REALIZED AND UNREALIZED GAIN (LOSS) 201. 202.
200.Net realized gain (loss) on:
203. Investment securities (145,289) 204.
205. Futures contracts (35,662) (180,951)
206.Change in net unrealized appreciation 207. 1,702,370
(depreciation) on investment securities
208.209.NET GAIN (LOSS) 210. 1,521,419
211.212.NET INCREASE (DECREASE) IN NET ASSETS 213. $ 2,650,407
RESULTING FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
214.INCREASE (DECREASE) IN NET ASSETS
215.Operations $ 1,128,988 $ 1,478,256
Net interest income
216. Net realized gain (loss) (180,951) (662,894)
217. Change in net unrealized appreciation 1,702,370 (1,240,992)
(depreciation)
218. 2,650,407 (425,630)
219.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
220.Distributions to shareholders from net interest (1,128,988) (1,478,256)
income
221.Share transactions 22,970,068 52,266,191
Net proceeds from sales of shares
222. Reinvestment of distributions 961,146 1,270,950
223. Cost of shares redeemed (11,823,395) (25,735,391)
224.225. 12,107,819 27,801,750
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS
226. 13,629,238 25,897,864
227.TOTAL INCREASE (DECREASE) IN NET ASSETS
228.NET ASSETS 229. 230.
231. Beginning of period 35,171,225 9,273,361
232. End of period $ 48,800,463 $ 35,171,225
233.OTHER INFORMATION 235. 236.
234.Shares
237. Sold 2,411,002 5,494,111
238. Issued in reinvestment of distributions 100,525 135,984
239. Redeemed (1,232,890) (2,757,505)
240. Net increase (decrease) 1,278,637 2,872,590
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
241. SIX MONTHS YEAR DECEMBER 29, 199
ENDED ENDED 3
JULY 31, 1995 JANUARY 31, (COMMENCEMENT
OF OPERATIONS) TO
JANUARY 31,
242. (UNAUDITED) 1995 1994
243.SELECTED PER-SHARE DATA
244.Net asset value, beginning of period $ 9.280 $ 10.090 $ 10.000
245.Income from Investment Operations .233 .480 .033
Net interest income
246. Net realized and unrealized gain (loss) .350 (.810) .090
247. Total from investment operations .583 (.330) .123
248.Less Distributions (.233) (.480) (.033)
From net interest income
249.Net asset value, end of period $ 9.630 $ 9.280 $ 10.090
250.TOTAL RETURN B 6.33% -3.21% 1.23%
251.RATIOS AND SUPPLEMENTAL DATA
252.Net assets, end of period (000 omitted) $ 48,800 $ 35,171 $ 9,273
253.Ratio of expenses to average net assets .18%A .04% -
254.Ratio of expenses to average net assets .55%A .55% .55%A
before expense reductions
255.Ratio of net investment income to 4.93%A 5.18% 3.85%A
average
net assets
256.Portfolio turnover rate 75%A 33% -
</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. 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 past five
years and life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Spartan New York Municipal Money Market 1.74% 3.26% 16.86% 20.10%
Average New York Tax-Free
Money Market Fund 1.63% 2.99% 15.02% 17.57%
Consumer Price Index 1.46% 2.76% 16.95% 19.70%
CUMULATIVE TOTAL RETURNS show the fund's performance over a set period - in
this case, six months, one year, five years 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, the value of your investment would be $1,050.
To measure how the fund's performance stacked up against its peers, you can
compare it to the average New York tax-free money market fund, which
reflects the performance of 38 New York tax-free money market funds with
similar objectives tracked by IBC/Donoghue over the past six months.
Comparing the fund's performance to the consumer price index (CPI) helps
show how your investment did compared to inflation. (The periods covered by
the CPI and IBC/Donoghue numbers are the closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan New York Municipal Money Market 3.26% 3.17% 3.39%
Average New York Tax-Free
Money Market Fund 2.99% 2.84% 3.03%
Consumer Price Index 2.76% 3.18% 3.32%
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
8/1/94 10/31/94 1/30/95 4/24/95 7/31/95
Spartan New York 2.44% 2.88% 3.24% 3.72% 3.39%
Municipal Money Market
Average New York Tax-Free 2.18% 2.60% 2.97% 3.53% 3.11%
Money Market Fund
Spartan New York 4.33% 5.12% 5.76% 6.61% 6.02%
Municipal Money Market -
Tax-equivalent
Row: 1, Col: 1, Value: 2.44
Row: 1, Col: 2, Value: 2.18
Row: 2, Col: 1, Value: 2.88
Row: 2, Col: 2, Value: 2.6
Row: 3, Col: 1, Value: 3.24
Row: 3, Col: 2, Value: 2.97
Row: 4, Col: 1, Value: 3.72
Row: 4, Col: 2, Value: 3.53
Row: 5, Col: 1, Value: 3.39
Row: 5, Col: 2, Value: 3.11
4% -
3% -
2% -
1% -
0%
Spartan New York
Municipal Money
Market
Average New York
Tax-Free Money
Market Fund
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 1995 federal, state and New York City income tax rate of
43.71%. Figures for the average New York tax-free money market fund are
from IBC/Donoghue. A portion of the fund's income may be subject to the
alternative minimum tax.
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 Jan Bradburn,
Portfolio Manager of Spartan
New York Municipal Money Market
Portfolio
Q. JAN, WHAT KIND OF INVESTMENT CLIMATE HAVE YOU BEEN OPERATING IN FOR THE
PAST SIX MONTHS?
A. While conditions were relatively calm compared to last year, the climate
definitely shifted. Shortly after the period began last February, the
Federal Reserve raised the federal funds rate - the rate banks charge each
other for overnight loans - one-half percentage point to 6.0%. It was the
seventh rate increase in 12 months, and the final act in a Fed policy
designed to slow down the pace of economic growth and prevent an outbreak
of inflation. The success of that policy was already becoming apparent even
as the Fed was raising interest rates for the last time. Growth in the
gross domestic product slowed from 5.1% during the fourth quarter of 1994
to 2.8% during the first quarter of 1995, and trickled to an estimated
0.50% during the second quarter. By early summer, it was clear to most
observers that the Fed had no intention of raising rates again anytime
soon. Indeed, speculation centered on when the Fed might decide the risk of
recession was great enough to warrant a rate cut. In July, as expected, the
Fed acted, trimming the federal funds rate back to 5.75%.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
A. From the beginning of the period through mid-summer, the fund's average
maturity was around 45 days. Later in the period, as interest rates peaked
and the summer borrowing season brought abundant new supplies into the
market, I began looking for opportunities to lock in attractive rates for
longer terms. By the end of July, the fund's average maturity was around 60
days. The fund's stake in variable rate demand notes, or VRDNs, has stayed
steady throughout the period at around 50% of total assets. VRDNs pay a
variable interest rate that resets at daily, weekly or monthly intervals.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on July 31, 1995, was 3.39%, compared to
3.30% six months ago. On an after-tax basis, the fund's latest yield was
the equivalent of a 6.02% taxable rate for New York City investors in the
43.71% combined state and federal and local income tax bracket. Through
July 31, 1995, the fund's six-month total return was 1.74%, compared to
1.63% for the average New York tax-exempt money market fund, according to
IBC/Donoghue.
Q. WHAT'S YOUR OUTLOOK?
A. The key to the shifts that took place in the investment climate during
the period is understanding that while they were dramatic, there were few
surprises. Most market participants anticipated a rate increase in
February, and they got one. Similarly, by the time the Fed governors met in
July, most market participants not only believed that a rate cut was all
but inevitable; they were already acting on that assumption. Then, for a
short while afterwards, it looked as if more rate cuts might be coming. But
as key economic indicators showed surprising signs of strength, and the
threat of recession faded, it began to look more as if the Fed would stand
pat for a while and wait for a clear trend to develop. That's where we were
when the period ended - waiting for direction. Given the high level of
uncertainty, I think it makes sense to preserve some flexibility in the
months ahead. I'll probably maintain an average maturity of around 60 days,
which I regard as neutral.
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, 1995,
more than $592 million
MANAGER: Janice Bradburn,
since 1990; manager,
Spartan Florida Municipal
Money Market, since 1995;
Fidelity Ohio Municipal Money
Market, since 1993; Fidelity
Massachusets Tax-Free and
Spartan Massachusetts
Municipal Money Market,
since 1992; Fidelity New York
Tax-Free Money Market,
since 1989; joined Fidelity in
1989
(checkmark)
WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager
is expecting rates to fall.
When the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future
tax or other revenues and
payable from those specific
sources.
TENDER BOND: A variable-rate,
long-term security that gives
the bond holder the option to
redeem the bond at face
value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.
SPARTAN NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
7/31/95 1/31/95 7/31/94
0 - 30 72 69 65
31 - 90 10 15 19
91 - 180 4 11 11
181 - 397 14 5 5
WEIGHTED AVERAGE MATURITY
7/31/95 1/31/95 7/31/94
Spartan New York
Municipal Money Market 61 days 41 days 47 days
Average New York Tax-Fre
e 56 days 42 days 55 days
Money Market Fund*
ASSET ALLOCATION
AS OF JULY 31, 1995 AS OF JANUARY 31, 1995
Row: 1, Col: 1, Value: 56.0
Row: 1, Col: 2, Value: 17.0
Row: 1, Col: 3, Value: 4.0
Row: 1, Col: 4, Value: 19.0
Row: 1, Col: 5, Value: 4.0
Row: 1, Col: 1, Value: 51.0
Row: 1, Col: 2, Value: 23.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 23.0
Row: 1, Col: 5, Value: 2.0
Variable rate
demand notes
(VRDNs) 56%
Commercial
paper 17%
Tender bonds 4%
Municipal
notes 19%
Other 4%
Variable rate
demand notes
(VRDNs) 51%
Commercial
paper 23%
Tender bonds 2%
Municipal
notes 23%
Other 1%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
SPARTAN NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO
INVESTMENTS JULY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 94.5%
Albany School Dist. BAN:
3.90% 6/20/96 $ 1,550,000 $ 1,550,659
4.50% 7/12/96 1,000,000 1,005,456
Amherst Ind. Dev. Auth. Ind. Dev. Rev. (Maple Dev. Proj.)
Series 1986, 4.10%, LOC Marine Midland Bank,
VRDN (b) 4,545,000 4,545,000
Bellmore Unified Free School Dist. 4% 6/27/96 1,000,000 1,002,610
Briarcliff BAN 4.125% 6/15/96 800,000 800,167
Chautauqua County Ind. Dev. Agcy. Rev.
(Red Wing Co. Inc. Proj.) Series 1985, 3.75%,
LOC Wachovia Bank of Georgia, VRDN 100,000 100,000
Chemung County Ind. Dev. Agcy. Ind. Dev. Rev.
(MMARS Second Prog.) Series A, 4.15%,
LOC Marine Midland Bank, VRDN 2,500,000 2,500,000
Dutchess County Ind. Dev. Auth. Rev. (Toys "R" Us)
(U.S. Nytex, Inc. Proj.) 3.875%, LOC Bankers Trust,
VRDN 500,000 500,000
Erie County Ind. Dev. Auth. Ind. Dev. Rev.:
(Niagara Envelope Co. Proj.) 4.10%,
LOC Marine Midland Bank, VRDN (b) 2,000,000 2,000,000
(Uniland Dev./Buffalo Campus-B) 4.10%,
LOC Marine Midland Bank, VRDN (b) 1,230,000 1,230,000
Franklin County Ind. Dev. Auth. Ind. Dev. Rev.
(Kes Chateaugay) Series 1991 A, 3.70%,
LOC Bank of Tokyo, VRDN (b) 12,900,000 12,900,000
Glenville BAN 4.25% 7/19/96 4,000,000 4,016,712
Half Hollow Hills Unified Free School Dist. TAN
4.25% 6/28/96 7,000,000 7,028,736
Hamburg BAN 4.125% 6/13/96 2,000,000 2,007,085
Harborfields Central School Dist. TAN 4.25%
6/27/96 2,200,000 2,210,563
Herkimer County Ind. Dev. Agcy. (H.M. Quackenbush, Inc.)
Series 1988 A, 4.10%, LOC Marine Midland Bank,
VRDN (b) 1,190,000 1,190,000
Herricks Unified Free School Dist. TAN 4.125% 6/28/96 2,500,000
2,508,182
Hyde Park Central School Dist. BAN 4.10% 10/27/95 1,000,000 1,000,935
Lewis County Ind. Dev. Auth. Ind. Dev. Rev.
(Philip Morris Proj.) 3.75%, VRDN 1,300,000 1,300,000
Monroe County Ind. Dev. Auth. Rev., VRDN (b):
(515 Lee Rd. Assoc./Nylomold Corp.) 4.10%,
Series 1988 C, LOC Marine Midland Bank, 400,000 400,000
(JMT Prop. Proj.) Series 1988 B, 4.10%,
LOC Marine Midland Bank 1,880,000 1,880,000
(Advent Tool & Mold) Series 1990 D, 4.10%,
LOC Marine Midland Bank 985,000 985,000
Nassau County BAN:
5% 8/15/95 2,500,000 2,500,653
5.25% 8/15/95 6,282,000 6,283,419
5% 11/15/95 5,000,000 5,011,211
4.25% 3/15/96 10,300,000 10,337,373
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Nassau County Gen. Impt. Rev. Bond Series Q, 5% 8/1/96
(FGIC Insured) $ 4,300,000 $ 4,352,245
New York City Gen. Oblig.:
Bonds:
Series 1995 B, Sub-Series B-9, 4% tender 8/14/95,
LOC Chemical Bank 1,000,000 1,000,000
Series 1995 B, Sub-Series B-9, 3.87% tender 8/22/95,
LOC Chemical Bank 5,000,000 5,000,000
Series D, 9.50% 8/15/15 1,000,000 1,021,967
Series 1995 B-8, 3.80%,
LOC Mitsubishi Bank Ltd., VRDN 6,000,000 6,000,000
Series 1995 F-2, 3.90%, LOC Banque Paribas, VRDN 3,200,000 3,200,000
Series 1995 F-3, 3.90%,
LOC Industrial Bank of Japan, VRDN 9,200,000 9,200,000
Series 1995 F-4, 3.80%,
LOC Landesbank Hessen-Thuringen 2,900,000 2,900,000
Series 1995 F-5, 3.85%, VRDN 6,400,000 6,400,000
Series 1995 F-7, 3.80%,
LOC Union Bank of Switzerland, VRDN 8,100,000 8,100,000
New York City Gen. Oblig. Participating VRDN,
(Liquidity Facility Citibank)(c) 10,100,000 10,100,000
New York City Gen. Oblig. TAN 4.50% 2/15/96 4,400,000 4,418,260
New York City Hsg. Dev. Corp. Mtg. Rev. (York Avenue Proj.)
Series 1994 A, 3.75%, LOC Chemical Bank, VRDN (b) 9,000,000 9,000,000
New York City Hsg. Dev. Corp. Multi-Family Mtg. Rev.
(Tribeca Towers) Series 1994 A, 3.65%
(FNMA Guaranty) VRDN (b) 17,700,000 17,700,000
New York City Hsg. Dev. Corp. Spl. Rev.
(Related-East 96th St. Proj.) Series 1990 A, 3.45%,
LOC Mitsubishi Bank, VRDN 1,000,000 1,000,000
New York City Ind. Dev. Auth. Ind. Dev. Rev.:
(Andin Int'l.) 3.75%, LOC ABN-AMRO Bank,
VRDN (b) 2,400,000 2,400,000
(Apache Realty) 3.75%, LOC ABN-AMRO Bank,
VRDN (b) 1,350,000 1,350,000
(Bowe Industries, Inc.) 3.75%, LOC ABN-AMRO bank,
VRDN (b) 1,800,000 1,800,000
(Display Sys., Inc.) Series 1990 E, 3.75%,
LOC ABN-AMRO Bank, VRDN (b) 500,000 500,000
(Japan Airlines Co. Ltd.) Series 1991,3.90%,
LOC Morgan Guaranty Trust Co., VRDN (b) 1,500,000 1,500,000
(Nippon Cargo Airlines Co.) Series 1992,4.65%,
LOC Ind. Bank of Japan, VRDN (b) 10,500,000 10,500,000
New York City Metropolitan Transit Auth. Participating VRDN,
Series 1993 C, 3.95%, (Liquidity Facility Hong Kong
Shanghai Banking Corp.)(c) 10,000,000 10,000,000
New York City Metropolitan Transit Auth. Tender
Option Bonds Series 146, 3.96%
(Liquidity Facility Citibank New York) (c) 16,655,000 16,655,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Fin. Auth. Rev. Participating VRDN,
Series 1992 A, 3.95%, (MBIA Insured) (c) $ 5,500,000 $ 5,500,000
New York City Muni. Water Fin. Auth. CP Series 1:
2.95% 8/1/95, LOC Canadian Imperial Bank 1,800,000 1,800,000
3.85% 8/7/95, LOC Canadian Imperial Bank 9,000,000 9,000,000
4.20% 8/15/95, LOC Canadian Imperial Bank 4,000,000 4,000,000
4.20% 8/15/95, LOC Canadian Imperial Bank 3,500,000 3,500,000
4% 8/17/95, LOC Canadian Imperial Bank 9,800,000 9,800,000
3.70% 10/12/95, LOC Canadian Imperial Bank 11,000,000 11,000,000
New York City Muni. Water Fin. Auth. Water & Swr. Sys.
Rev. Series 1995 A, 4.25%,(FGIC Insured), VRDN 2,600,000 2,600,000
New York City Trust for Cultural Resources Rev.
(Carnegie Hall) Series 1985, 3.75%,
LOC Dai-Ichi Kangyo Bank Ltd., VRDN 2,400,000 2,400,000
New York Envir. Fac. Corp. Solid Wst. Rev. Rfdg.
(General Elec. Proj.) Series 1992 A,3.50%
tender 9/19/95 (b) 4,800,000 4,800,000
New York State Gen. Oblig. CP:
Series P:
2.65% 8/1/95 5,800,000 5,800,000
3.70% 10/2/95
(Liquidity Facility Westdeutsche Landesbank) 4,000,000 4,000,000
Series Q:
4.05% 8/11/95
(Liquidity Facility Westdeutche Landesbank) 3,700,000 3,700,000
3.70% 10/17/95
(Liquidity Facility Westdeutche Landesbank) 2,400,000 2,400,000
3.70% 10/19/95
(Liquidity Facility Westdeutche Landesbank) 4,900,000 4,900,000
3.75% 10/24/95
(Liquidity Facility Westdeutche Landesbank) 1,500,000 1,500,000
New York State Dorm. Auth. Rev. Bond (City Univ. Sys.)
Series A, 7.625% 7/1/96 3,400,000 3,578,075
New York Dorm. Auth. Rev. Bonds (Sloan-Kettering Cancer
Center):
Series 1989 A:
3.65% tender 9/19/95, LOC Chemical Bank 10,400,000 10,400,000
3.65% tender 10/17/95, LOC Chemical Bank 7,000,000 7,000,000
3.65% tender 10/24/95, LOC Chemical Bank 7,160,000 7,160,000
Series 1989B, 3.10% tender 9/1/95,
LOC Chemical Bank 1,500,000 1,500,000
New York State Dorm. Auth. Participating VRDN, Series PA-60,
3.95%, (Liquidity Facility Merrill Lynch & Co.)(c) 2,500,000 2,500,000
New York State Energy Research & Dev. Auth.
(Long Island Lighting) VRDN (b):
Series 1993 3.55%,
LOC Toronto-Dominion Bank 5,500,000 5,500,000
Series 1993 A, 3.70%,
LOC Toronto-Dominion Bank 13,300,000 13,300,000
Series 1994 A, 3.65%,
LOC Union Bank of Switzerland 18,000,000 18,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Energy Research & Dev. Auth. Bonds
Series 943206, 3.70% tender 8/1/95
(Liquidity Facility Citibank) (c)(d) $ 6,200,000 $ 6,200,000
New York State Energy Research & Dev. Auth.
Participating VRDN, Series 943202, 3.96%
(Liquidity Facility Citibank)(c) 11,600,000 11,600,000
New York State Energy Research & Dev. Auth. Poll. Cont.
Rev. Bonds:
(Long Island Lighting Proj.):
Series 1985 A, 4.70 tender 3/1/96,
LOC Deutsche Bank 5,000,000 5,000,000
(New York State Elec. & Gas Corp. Proj.)
Series 1985 A, 4.65% tender 3/15/96,
LOC Morgan Bank Delaware 1,500,000 1,500,000
(Niagara Mohawk Pwr. Proj.) Series 1988 A, 4.40%,
LOC Morgan Guaranty Trust Co., VRDN (b) 4,900,000 4,900,000
New York State Envir. Fac. Corp. Wtr. Poll. Cont. Rev.
Tender Option Bond Series CR 154, 3.96%
(Liquidity Facility Citibank) (c) 6,000,000 6,000,000
New York State Hsg. Fin. Agcy. Rev.
(Normandie Court II Proj.) Series 1987 A, 3.60%,
LOC Bankers Trust, VRDN (b) 13,860,000 13,860,000
New York State Hsg. Fin. Auth. Rev. (Liberty View Apts.)
Series 1985 A, 3.60%,
LOC Manufacturers Hanover Trust, VRDN 2,050,000 2,050,000
New York State Local Gov't. Assistance Corp.
Participating VRDN, Series PW-4, 3.70%
(Liquidity Facility Bank of Nova Scotia) (c) 4,500,000 4,500,000
New York State Med. Care Facs. Fin. Agcy.
Participating VRDN, Series PA-89, 3.95%
(Liquidity Facility Merrill Lynch & Co.)(c) 2,000,000 2,000,000
New York State Med. Care Facs. Fin. Agcy. Rev. Bonds
(Brooklyn, Caledonia, Long Island College Hosp.)
Series A, 8.50% 1/15/96 (FHA Guaranteed) 3,600,000 3,735,788
(Mt. Sinai Hosp.) Series C, 8.875% 1/15/96
(FHA Guaranteed) 11,000,000 11,428,395
New York State Mtg. Agcy. Participating VRDN (b)(c):
Series PA-29, 4.05%,
(Liquidity Facility Merrill Lynch & Co.) 6,000,000 6,000,000
Series PA-87, 4.05%
(Liquidity Facility Merrill Lynch & Co.) 3,300,000 3,300,000
Series PT-11, 4.05%
(Liquidity Facility Dai-Ichi Kangyo Bank Ltd.) 3,000,000 3,000,000
Series PT-15 A, 4.05%
(Liquidity Facility Facility Dai-ichi Kangyo Bank Ltd.) 4,500,000
4,500,000
Series PT-15 B, 4.05%
(Liquidity Facility Facility Dai-ichi Kangyo Bank Ltd.) 4,320,000
4,320,000
Series PT-26, 4.10% (Liquidity Facility Credit Suisse) (d) 2,700,000
2,700,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York & New Jersey Port Auth. CP Series A, 3.65%
10/17/95 (Liquidity Facility Daiwa Bank Ltd.)(b) $ 5,065,000 $ 5,065,000
Oswego County Ind. Dev. Agcy. Poll. Cont. Rev. Rfdg.
(Phillip Morris Co. Proj.) 3.75%, VRDN 3,000,000 3,000,000
Oswego County Ind. Dev. Auth. Ind. Dev. Rev.
(Engraph Inc. Proj.) Series 89, 3.90%,
LOC Suntrust Banks Inc., VRDN (b) 5,620,000 5,620,000
Oyster Bay BAN:
4.85% 12/8/95 2,400,000 2,400,000
4.25% 7/12/96 3,200,000 3,213,110
Penfield Central School Dist. BAN 4.125% 6/20/96 2,000,000 2,007,241
Plainview Old Bethpage Central School Dist. TAN
4.25% 6/28/96 4,000,000 4,015,712
Rochester BAN 5.25% 3/12/96 2,200,000 2,210,181
Rockland County Ind. Dev. Agcy. Rev. (INSL-X Prod.
Corp. Proj.) Series 1990, 3.80%,
LOC Bank of New York, VRDN (b) 3,250,000 3,250,000
Rockville Center Unified Free School Dist. 4.25%
6/21/95 2,000,000 2,008,886
Rush Henrietta Central School Dist. BAN 4.125%
6/27/96 2,000,000 2,005,129
St. Lawerence County Ind. Dev. Agcy. Envir. Impt. Rev.
(Reynolds Metals Proj.) 3.65%,
LOC Royal Bank of Canada, VRDN 3,000,000 3,000,000
Suffolk County Ind. Dev. Agcy. (Suffolk Child Dev. Ctr. Proj.)
Series 1989, 3.75%, LOC Barclays Bank) VRDN 900,000 900,000
Suffolk County Ind. Dev. Agcy. Ind. Dev. Rev.
(Nissequogue Cogeneration Partner Facs.) 3.85%,
LOC Toronto-Dominion Bank, VRDN (b) 22,500,000 22,500,000
Suffolk County TAN 5.25% 8/15/95,
LOC Westdeutsche Landesbank Gironzentrale 27,200,000 27,206,610
Syracuse BAN 5.50% 3/1/96 2,375,000 2,384,619
Tompkins County BAN Series A, 4.25% 5/31/95 (b) 2,000,000 2,003,998
Triborough Bridge & Tunnel Auth. Ctfs.
Series CR-132, 3.45% tender 8/15/95
(Liquidity Facility Citibank) (c) 5,410,000 5,410,000
Uniondale Unified Free School Dist. TAN:
4.25% 6/27/96 2,000,000 2,007,314
4.50% 6/27/96 3,500,000 3,521,332
Wappinger BAN 4.25% 7/12/96 1,000,000 1,004,553
Williamsville Central School Dist. BAN 4.75%
5/3/96 6,400,000 6,418,485
564,275,661
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - 5.5%
New York & New Jersey Port Auth. Spl. Proj. Rev.
(KIAC Partners Proj.) Series 3, VRDN (b):
3.70%, LOC Deutsche Bank $ 11,400,000 $ 11,400,000
3.70%, LOC Deutsche Bank 2,000,000 2,000,000
New York & New Jersey Port Auth. Rev., VRDN:
Series 1991, 4.16% (b) 9,800,000 9,800,000
Series 1992, 3.72% 9,600,000 9,600,000
32,800,000
TOTAL INVESTMENTS - 100% $ 597,075,661
Total Cost for Income Tax Purposes $ 597,076,044
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax 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.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on the holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
New York State Energy Research
& Dev. Auth. Bonds
Series 943206, 3.70%
tender 8/1/95 (Liquidity Facility
Citibank) 7/7/94 $ 6,200,000
New York State Mtg. Agcy.
Participating VRDN, Series PL-26,
4.10% (Liquidity Facility
Credit Suisse) 6/9/94 $ 2,700,000
INCOME TAX INFORMATION
At January 31, 1995 the fund had a capital loss carryforward of
approximately $73,000 of which $1,000, $21,000 and $51,000 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, 1995 (UNAUDITED)
257.ASSETS 258. 259.
260.Investment in securities, at value - See 261. $ 597,075,661
accompanying schedule
262.Cash 263. 23,026
264.Interest receivable 265. 4,069,063
266. 267.TOTAL ASSETS 268. 601,167,750
269.LIABILITIES 270. 271.
272.Payable for investments purchased $ 8,770,505 273.
274.Share transactions in process 116,175 275.
276.Distributions payable 16,178 277.
278.Accrued management fee 254,766 279.
280. 281.TOTAL LIABILITIES 282. 9,157,624
283.284.NET ASSETS 285. $ 592,010,126
286.Net Assets consist of: 287. 288.
289.Paid in capital 290. $ 592,081,355
291.Accumulated net realized gain (loss) on 292. (71,229)
investments
293.294.NET ASSETS, for 592,064,404 shares 295. $ 592,010,126
outstanding
296.297.NET ASSET VALUE, offering price and 298. $1.00
redemption price per share ($592,010,126 (divided by)
592,064,404 shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1995 (UNAUDITED)
299.300.INTEREST INCOME 301. $ 11,636,144
302.EXPENSES 303. 304.
305.Management fee $ 1,452,935 306.
307.Non-interested trustees' compensation 1,572 308.
309. 310.TOTAL EXPENSES 311. 1,454,507
312.313.NET INTEREST INCOME 314. 10,181,637
315.316.NET REALIZED GAIN (LOSS) ON INVESTMENTS 317. 1,922
318.319.NET INCREASE IN NET ASSETS RESULTING FROM 320. $ 10,183,559
OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
321.INCREASE (DECREASE) IN NET ASSETS
322.Operations $ 10,181,637 $ 13,505,070
Net interest income
323. Net realized gain (loss) 1,922 28,609
324. Increase (decrease) in net unrealized gain from - (153)
accretion of market discount
325. 10,183,559 13,533,526
326.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
327.Distributions to shareholders from net interest (10,181,637) (13,505,070)
income
328.Share transactions at net asset value of $1.00 per 299,623,333 560,912,446
share
Proceeds from sales of shares
329. Reinvestment of distributions from net interest income 9,930,052 13,132,469
330. Cost of shares redeemed (288,253,502) (465,489,438)
331.332. 21,299,883 108,555,477
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES
RESULTING FROM SHARE TRANSACTIONS
333. 21,301,805 108,583,933
334.TOTAL INCREASE (DECREASE) IN NET ASSETS
335.NET ASSETS 336. 337.
338. Beginning of period 570,708,321 462,124,388
339. End of period $ 592,010,126 $ 570,708,321
</TABLE>
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, NINE MONTHS YEARS ENDED APRIL 30,
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995 1994 1993 1992 1991
342.SELECTED PER-SHARE DATA
343.Net asset value, beginning of period
$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
344.Income from Investment Operations
.017 .025 .020 .018 .037 .052
Net interest income
345.Less Distributions
(.017) (.025) (.020) (.018) (.037) (.052)
From net interest income
346.Net asset value, end of period
$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
347.TOTAL RETURN B
1.75% 2.56 1.99 1.85% 3.78 5.37
% % % %
348.RATIOS AND SUPPLEMENTAL DATA
349.Net assets, end of period (000 omitted)
$ 592,010 $ 570,708 $ 462,124 $ 453,812 $ 474,990 $ 466,327
350.Ratio of expenses to average net assets
.50% .50 .50 .50% .37 .10
A % % A % %
351.Ratio of expenses to average net assets before
.50% .50 .50 .50% .50 .50
expense reductions
A % % A % %
352.Ratio of net interest income to average net assets
3.50% 2.55 1.97 2.43% 3.71 5.15
A % % A % %
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
FINANCIAL HIGHLIGHTS
NOTES TO FINANCIAL STATEMENTS
For the period ended July 31, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan New York Municipal High Yield Portfolio (the high yield fund) and
Spartan New York Intermediate 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. 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:
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 of their purchase date 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 substantially 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, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options transactions and losses deferred due to wash sales, futures and
options, and excise tax regulations.
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.
FUTURES CONTRACTS AND OPTIONS. The high yield and intermediate funds may
use futures and options contracts to manage their exposure to the bond
market and to fluctuations in interest rates. Buying futures, writing puts,
and buying calls tend to increase the funds' exposure to the underlying
instrument. Selling futures, buying puts, and writing calls tend to
decrease the funds' exposure to the underlying instrument, or hedge other
fund investments. Futures contracts and written options involve, to varying
degrees, risk of loss in excess of the futures variation margin or the
option value reflected in the Statement of Assets and Liabilities. The
underlying face amount at value is shown in the schedule of investments
under the caption "Futures Contracts." This amount reflects each contract's
exposure to the underlying instrument at period end. Losses may arise from
changes in the value of the underlying instruments, if there is an illiquid
secondary market for the contracts, or if the counterparties do not perform
under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options 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.
RESTRICTED SECURITIES. Each fund is permitted to invest in securities that
are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from registration
or to the public if the securities are registered. Disposal of these
securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult. At the end of the period,
restricted securities (excluding 144A issues) amounted to $8,900,000 or
1.5% of net assets for the money market fund.
3. PURCHASES AND SALES OF
INVESTMENTS.
HIGH YIELD FUND. Purchases and sales of securities, other than short-term
securities, aggregated $163,937,935 and $157,616,821, respectively.
The market value of futures contracts opened and closed during the period
amounted to $61,645,496 and $68,788,148, respectively.
INTERMEDIATE FUND. Purchases and sales of securities, other than short-term
securities, aggregated $27,502,986 and $13,333,357, respectively.
The market value of futures contracts opened and closed during the period
amounted to $20,144,304 and $20,374,097, 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.
FMR also bears the cost of providing shareholder services to each fund. To
offset the cost of providing these services, FMR or its affiliates
collected certain transaction fees from shareholders which amounted to
$1,945, $444 and $5,967 for the high yield, intermediate and money markets
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.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the intermediate fund's operating
expenses (excluding interest, taxes, brokerage commissions and
extraordinary expenses) above a specified percentage of average net assets.
During the period, this expense limitation ranged from .10% to .25% of
average net assets and the reimbursement reduced expenses by $84,695.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East 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
6300 Canoga Avenue
Woodland Hills, 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
90 Alhambra Plaza
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
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, 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
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, 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
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State 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
511 Pine Street
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Janice Bradburn, Vice President -
MONEY MARKET FUND
Fred L. Henning Jr., Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
Michael D. Conway, Assistant Treasurer - MONEY MARKET FUND
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB 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
