FIDELITY NEW YORK MUNICIPAL TRUST, N-30D, 1996-09-10

FIDELITY NEW YORK MUNICIPAL TRUST
N-30D, 1996-09-10

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SPARTAN(registered trademark)

(registered trademark)
NEW YORK
MUNICIPAL
FUNDS

SEMIANNUAL REPORT
JULY 31, 1996
CHECK PAGE NUMBERS !!!

CONTENTS

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PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEG
IES

SPARTAN NEW YORK MUNICIPAL INCOME FUND

4 PERFORMANCE

7 FUND TALK: THE MANAGER'S OVERVI
EW

10 INVESTMENT CHANGES

11 INVESTMENTS

16 FINANCIAL STATEMENTS

SPARTAN NEW YORK INTERMEDIATE MUNICIPAL INCOME FUND

20 PERFORMANCE

23 FUND TALK: THE MANAGER'S OVERVI
EW

26 INVESTMENT CHANGES

27 INVESTMENTS

31 FINANCIAL STATEMENTS

SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND

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,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
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.
To reduce expenses and demonstrate respect for our environment, we have
initiated a project through which we will begin eliminating duplicate
copies of most financial reports and prospectuses to most households, even
if they have more than one account in the fund. If additional copies of
financial reports, prospectuses or historical account information are
needed, please call 1-800-544-6666.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first seven
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in both the stock and bond markets so far
this year. In 1995, both stock and bond markets posted strong results,
while the year before, stocks posted below-average returns and bonds had
one of the worst years in history.
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 INCOME FUND

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 on an average sized account. You can also look at the fund's
income to measure performance. If Fidelity had not reimbursed certain fund
expenses, the past five years and life of fund total returns would have
been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Spartan New York Municipal Income -0.53% 7.00% 45.12% 64.87%

Lehman Brothers New York 4 Plus Year -0.32% 7.07% n/a n/a
Municipal Bond Index

New York Municipal Debt Funds Average -0.93% 5.90% 41.99% n/a

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 the performance of the Lehman
Brothers New York 4 Plus Year Municipal Bond Index, which is a total
performance benchmark for New York investment-grade municipal bonds with
maturities of at least four years. To measure how the fund's performance
stacked up against its peers, you can compare it to the New York municipal
debt funds average, which reflects the performance of 99 mutual funds with
similar objectives tracked by Lipper Analytical Services, Inc. over the
past six months. Both benchmarks reflect reinvestment of dividends and
capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan New York Municipal Income 7.00% 7.73% 8.00%

Lehman Brothers New York 4 Plus Year 7.07% n/a n/a
Municipal Bond Index

New York Municipal Debt Funds Average 5.90% 7.25% n/a

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Spartan New York Municipal Income Fund on February 28, 1990,
shortly after the fund started. As the chart shows, by July 31, 1996, the
value of the investment would have grown to $16,405 - a 64.05% increase on
the initial investment. This assumes you still own the fund on July 31,
1996 and therefore does not include the effect of the $5 account closeout
fee. For comparison, look at how the Lehman Brothers Municipal Bond Index,
which reflects the performance of the investment-grade municipal bond
market, did over the same period. With dividends reinvested, the same
$10,000 would have grown to $16,379 - a 63.79% increase.

UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally 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 YEARS ENDED JANUARY 31,
MONTHS
ENDED
JULY 31,

1996 1996 1995 1994 1993 1992

Dividend return 2.54% 5.97% 5.41% 5.91% 6.57% 7.13%
Capital appreciation
return -3.07% 10.08% -11.58% 7.20% 5.22% 4.91%

Total return -0.53% 16.05% -6.17% 13.11% 11.79% 12.04%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD

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PERIODS ENDED JULY 31, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.59(cents) 27.07(cents) 54.38(cents)

Annualized dividend rate 5.22% 5.21% 5.20%

30-day annualized yield 5.20% - -

30-day annualized tax-equivalent yield 9.19% - -

</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 $10.34 over
the past month, $10.41 over the past six months and $10.46 over the past
year, you can compare the fund's income over these three periods. Dividends
per share show the income paid by the fund for a set period and do not
reflect any tax reclassifications. 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 43.41%
combined effective 1996 federal, state and New York City income tax
bracket, but does not reflect the payment of the alternative minimum tax,
if applicable.
SPARTAN NEW YORK MUNICIPAL INCOME FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Norm Lind, Portfolio Manager of Spartan New York
Municipal Income Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. For the six months ended July 31, 1996, the fund returned -0.53%. That
was somewhat better than the New York municipal debt funds average, as
tracked by Lipper Analytical Services, which had a total return of -0.93%.
The Lehman Brothers New York 4 Plus Year Municipal Bond Index had a total
return of -0.32% over the same period. For the 12 months ended July 31,
1996, the fund returned 7.00%, while the Lipper average and the index
returned 5.90% and 7.07% respectively.
Q. AFTER THE STRONG PERFORMANCE OF THE MUNICIPAL MARKET DURING 1995, HOW
WOULD YOU CHARACTERIZE THE INVESTING ENVIRONMENT IN 1996?
A. It's been a pretty choppy market so far this year. Coming into December
and January, there were real concerns in the muni market about the
potential for tax reform and, more specifically, for a flat tax. That made
investors wary of the municipal market, since those proposals posed a
possible threat to the favorable tax treatment of municipal bonds. As a
result, municipal bond prices fell, and yields were pushed up close to
historically high levels compared to U.S. Treasury yields. As the year wore
on, however, and no concrete proposals emerged as rallying points for
serious reform, buyers gradually returned to the municipal market.
Q. BUT THEN THE ECONOMY'S UNEXPECTED STRENGTH DEALT ANOTHER BLOW TO THE
MARKET IN THE SPRING . . .
A. That's right. When employment numbers came out that suggested the
economy was far stronger than people had anticipated, interest rates rose
fairly sharply. But partly because the municipal market had already been
through a rough patch earlier in the year, municipals fared relatively well
compared to other fixed-income investments. After the initial shock of
higher rates, municipals have recovered somewhat over the past few months
and, despite their negative short-term results, were among the
better-performing income-oriented investments.
Q. HOW DID THAT BACKDROP TRANSLATE TO THE NEW YORK MUNICIPAL MARKET?
A. In New York, the story has been the budget. That holds true for both the
state and the city. New York state was extremely late in getting a budget
deal finalized - the budget was due on April 1, and it wasn't finished
until mid-July. As you can imagine, that uncertainty had quite an impact on
the New York municipal market. What you might not imagine, though, is that
the result was strong relative performance by some New York issues.
Q. WHY WAS THAT?
A. It was mainly because of the limited supply of New York bonds out in the
marketplace as a result of the lack of a budget agreement. You see, without
a completed budget, the state could not issue significant new debt.
However, the situation was not as dramatic as last year, when the
legislature nearly let the state government shut down. This year, it
continued to pass bills to let the government continue operations and, most
importantly, guarantee that debt service would continue to be paid.
Q. WHAT OTHER FACTORS HELPED THE FUND OVER THE PAST SIX MONTHS?
A. Once again, the fund's structure played an important role. As I've
mentioned in previous reports, I've been a buyer of premium, non-callable
bonds. The non-callability can provide upside potential, since the bond
can't be redeemed by the issuer when rates fall, while the premium - or
above-par - price gives the bond de minimus protection. That means that the
bond is protected from unfavorable tax treatment that can occur during
particular market environments. That structure hurt the fund somewhat as
rates rose, although as the market has recovered, so have those types of
bonds.
Q. WAS THERE ANYTHING ELSE THAT PROVED DISAPPOINTING OVER THE PERIOD?
A. Yes, I'd have to say that the fund's underweighting in New York City
bonds was one of my biggest disappointments during this period. I believed
that the state budget process would be every bit as difficult as it turned
out to be, but I also thought there would be more of a negative impact on
the city's bonds. In retrospect, it would have helped the fund's
performance to have weighted the portfolio more heavily in the city's
bonds.
Q. NORM, WE UNDERSTAND THERE WERE SOME INVESTMENT POLICY CHANGES . . .
A. As of June 24, 1996, the fund reserves the right to invest up to 5% of
its assets - down from one-third - in below-investment-grade securities.
The fund does not intend to seek out the lower-quality,
below-investment-grade bonds. Instead, this change helps the fund maintain
a degree of flexibility under unusual circumstances. Further, Fidelity now
uses two additional agencies to determine the credit quality of the fund's
bonds. Ratings from Duff & Phelps Rating Co. and Fitch Investors Service,
L.P., are being employed, along with those from Moody's Investors Service
and Standard & Poor's which Fidelity had been using previously.
Q. LOOKING AHEAD, NORM, WHAT DO YOU SEE ON THE HORIZON FOR THE NEW YORK
MUNICIPAL MARKET?
A. I think some cautious optimism is in order right now. The level of
municipal yields, as a percentage of Treasury yields, is at the lower end
of its historical range. That suggests that municipals are at fair to
slightly high levels. Another reason for a bit of caution is that we could
see renewed talk of tax reform as we head into the heat of the campaign
season. Given all of that, I believe that the fund's structure is on target
for providing value over the long term, and I intend to maintain its
emphasis in the premium, non-callable area.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: high current income
exempt from federal, state
and New York City income
taxes by investing primarily in
longer-term,
investment-grade New York
municipal securities
START DATE: February 3, 1990
SIZE: as of July 31, 1996,
more than $309 million
MANAGER: Norm Lind, since
1995; manager, Fidelity New
York Municipal Income, since
1993; Fidelity New York
Insured Municipal Income
Fund, since 1994; Fidelity
Advisor Short-Intermediate
Municipal Income, Spartan
Intermediate Municipal
Income, Spartan New York
Intermediate Municipal
Income and Spartan
Short-Intermediate
Municipal Income funds,
since 1995; joined Fidelity in
1986
(checkmark)
NORM LIND ON NEW YORK'S
ONGOING BUDGET DIFFICULTIES:
"I think it's obvious to most
observers that the state of
New York needs to reform its
budget process. It clearly
shouldn't take until the middle
of July to work out a budget
that's due April 1; the market
sees that as a sign of a
financial house that's not in
order. In fact, Governor
Pataki started the process
early this time around, in
December rather than
January, in the hopes of
getting a head start. However,
his budget counted on federal
reforms of welfare and
Medicaid to help the state with
its financing. The lack of
progress on the federal level
allowed the state to delay
serious work on the budget for
some time. The good news
from New York is that the
final budget does look
credible, and included some
tax cuts. There's still much
work to be done on the
spending side. In the "out"
years, or the years beyond
next year, there are projected
deficits of billions of dollars -
and the state has already
done what it could on a
one-time basis to sell off
assets. The size of the
projected deficits will make it
very hard for the state to
balance the budget through
revenue growth; a concerted
effort to face the issue
head-on and make necessary
spending cuts is what the
state could use most going
forward."
SPARTAN NEW YORK MUNICIPAL INCOME FUND

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF JULY 31, 1996
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO

General Obligation 34.2 34.8

Transportation 17.6 11.7

Industrial Development 13.1 11.5

Special Tax 12.1 12.1

Water & Sewer 7.1 9.9

AVERAGE YEARS TO MATURITY AS OF JULY 31, 1996
6 MONTHS AGO

Years 15.0 14.9

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, 1996
6 MONTHS AGO

Years 8.1 8.2

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. BEGINNING
WITH THE REPORTING CYCLE OF JUNE,1996, THE MODEL USED TO CALCULATE
DURATIONS MAY BE SLIGHTLY MODIFIED IN ORDER TO FURTHER REFINE THIS
INFORMATION. THESE CHANGES IN METHODOLOGY MAY PRODUCE ADJUSTMENTS IN
HISTORICAL DURATION FIGURES.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF JULY 31, 1996 AS OF JANUARY 31, 1996
Aaa 26.7%
Aa, A 34.6%
Baa 36.6%
Ba, B 0.0%
Non-rated 0.0%
Short-term
investments 2.1%
Aaa 28.2%
Aa, A 34.0%
Baa 34.8%
Ba, B 0.0%
Non-rated 0.0%
Short-term
investments 3.0%
Row: 1, Col: 1, Value: 26.7
Row: 1, Col: 2, Value: 34.6
Row: 1, Col: 3, Value: 36.6
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 2.1
Row: 1, Col: 1, Value: 28.2
Row: 1, Col: 2, Value: 34.0
Row: 1, Col: 3, Value: 34.8
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 3.0
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 INCOME FUND

INVESTMENTS JULY 31, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 97.9%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - 88.8%
Franklin County Ctfs. of Prtn.
(Court House Redev. Proj.) 8.125% 8/1/06 BBB- $ 2,030,000 $ 2,222,850
Monroe County Gen. Oblig.:
6.50% 6/1/04 Aa 1,310,000 1,439,363
6% 6/1/06 Aa 1,000,000 1,068,750
Nassau County Gen. Oblig.:
Rfdg. Series A, 6.50% 5/1/07 (FGIC Insured) Aaa 4,000,000 4,400,000
Series P, 6.30% 11/1/00 (FGIC Insured) Aaa 2,670,000 2,846,888
5.125% 11/1/05 (FGIC Insured) Aaa 2,565,000 2,584,238
New York City Gen. Oblig.:
Rfdg. Series A, 7% 8/1/04 Baa1 5,000,000 5,375,000
Rfdg. Series B, 5.70% 8/15/02 Baa1 1,165,000 1,167,913
Series A, 8% 8/15/21 (Pre-Refunded to
8/15/01 @101.50) (d) Aaa 2,485,000 2,879,494
Series B:
7.50% 2/1/02 Baa1 1,000,000 1,086,250
7.50% 2/1/06 Baa1 5,000,000 5,406,250
Unltd. Tax 7.50% 2/1/07 Baa1 5,500,000 5,988,125
Series H, 7% 2/1/05 Baa1 3,500,000 3,718,750
7.50% 2/1/03 Baa1 5,000,000 5,468,750
New York City Ind. Dev. Agcy.
(American Airlines Inc. Proj.) 6.90% 8/1/24 Baa2 2,000,000 2,077,500
New York City Ind. Dev. Agcy. Spl. Facs. Rev.:
(American Airlines Inc. Proj.)
Series 1990, 8% 7/1/20 (b) Baa2 4,325,000 4,616,938
(Terminal One Group Assoc. Proj.) 6% 1/1/15 A 15,560,000 15,229,350
New York City Muni. Assistance Corp.:
Series D, 6% 7/1/05 (AMBAC Insured) Aaa 3,000,000 3,217,500
6% 7/1/04 Aa 4,835,000 5,155,319
6% 7/1/05 Aa 4,215,000 4,494,244
6% 7/1/06 Aa 1,000,000 1,063,750
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev. Series B, 5.875% 6/15/26 A 8,450,000 8,281,000
New York Metropolitan Transit Auth. Rev.:
6% 7/1/16 (FSA Insured) Aaa 1,000,000 1,010,000
6.10% 7/1/21 (FSA Insured) Aaa 5,490,000 5,558,625
New York Metropolitan Transit Auth. Svc.
Contract Trans. Facs.:
Rfdg. Series 7, 5.45% 7/1/07 Baa1 3,230,000 3,149,250
Series 7, 0% 7/1/10 Baa1 9,500,000 4,120,625
New York State Dorm. Auth. Lease Rev.:
6% 7/1/04 (AMBAC Insured) Aaa 5,225,000 5,571,156
6% 7/1/05 (AMBAC Insured) Aaa 1,240,000 1,322,150
New York State Dorm. Auth. Rev.:
Rfdg. (State Univ. Edl. Facs.):
Series A:
6.50% 5/15/05 Baa1 2,480,000 2,638,100
6.50% 5/15/06 Baa1 1,500,000 1,591,875
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev.: - continued
Rfdg. (State Univ. Edl. Facs.): - continued
Series A: - continued
5.50% 5/15/10 Baa1 $ 2,375,000 $ 2,282,969
5.25% 5/15/15 Baa1 7,850,000 7,143,500
5.875% 5/15/17 Baa1 3,750,000 3,703,125
Series B:
5.25% 5/15/09 Baa1 2,475,000 2,332,688
5.25% 5/15/10 Baa1 2,290,000 2,138,288
7.50% 5/15/11 Baa1 2,000,000 2,305,000
(City Univ. Sys.):
Series C, 7.50% 7/1/10 Baa1 4,000,000 4,580,000
5.75% 7/1/18 Baa1 2,000,000 1,905,000
(Consolidated City Univ. Sys.) Series A,
5.75% 7/1/09 Baa1 5,000,000 4,931,250
(Mt. Sinai Medical School) 5.70% 7/1/11
(MBIA Insured) Aaa 2,175,000 2,229,375
(Strong Memorial Hospital) 5.10% 7/1/04 A1 1,470,000 1,468,163
New York State Energy Research & Dev. Auth.
Gas Facs. Rev. (Brooklyn Union Gas Co.) (e):
Series B, 9.927% 7/15/26 INFL (b) A1 3,500,000 4,029,375
8.82% 4/1/20 INFL A1 3,500,000 3,696,875
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 1,095,000
Series A, 6.80% 6/15/01 Aa 4,000,000 4,360,000
Series D:
5.90% 5/15/01 Aaa 1,000,000 1,055,000
6.10% 5/15/03 Aaa 2,240,000 2,410,800
6.20% 11/15/04 Aaa 1,250,000 1,362,500
New York State Envir. Facs. Corp. Resource
Recovery Rev. (Huntington Proj.) Series A,
7.50% 10/1/12 (b) Baa 12,500,000 13,109,375
New York State Local Gov't. Assistance Corp.:
Rfdg. Series C, 5.50% 4/1/17 A 3,275,000 3,184,938
Rfdg. Series E, 5.25% 4/1/16 A 11,100,000 10,475,625
Series B, 6% 4/1/18 A 5,595,000 5,595,000
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 @100) (d) Aaa 2,540,000 2,847,975
New York State Mtg. Agcy. Rev. (Homeowner Mtg.) (b):
Series HH-3, 7.95% 4/1/22 Aa 2,500,000 2,656,250
Series SS, 7.95% 10/1/22 Aa 2,545,000 2,713,606
New York State Pwr. Auth. Rev. & Gen. Purp.
Series CC, 5.125% 1/1/11 (FGIC Insured) Aaa 10,000,000 9,687,500
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Thruway Auth. Svc. Contract
Rev. (Local Hwy. & Bridge) 7.25% 1/1/10
(Pre-Refunded to 1/1/01 @102) (d) Baa1 $ 2,500,000 $ 2,787,500
New York State Tollway Auth. Hwy. &
Bridge Trust Fund:
Series A:
6% 4/1/00 (AMBAC Insured) Aaa 2,000,000 2,090,000
6.25% 4/1/04 (MBIA Insured) Aaa 1,750,000 1,898,750
Series B:
6% 4/1/04 (MBIA Insured) Aaa 4,000,000 4,275,000
5.30% 4/1/11 (MBIA Insured) Aaa 4,000,000 3,905,000
New York State Urban Dev. Corp. Rev.
6.25% 4/1/05 (MBIA Insured) Aaa 1,225,000 1,321,468
Onondaga County Ind. Dev. Agy. Rev.
(Bristol-Meyers Squibb Co. Proj.)
5.75% 3/1/24 Aaa 3,170,000 3,098,675
Oyster Bay Rfdg. Gen. Oblig. 5.50% 2/15/06 Aa 1,555,000 1,588,043
Suffolk County Ind. Dev. Agcy. Rev.
(Dowling College Civic Facs.) 8.25% 12/1/20 BBB 975,000 1,127,344
Suffolk County Rfdg. Southwest Swr. Dist.
6% 2/1/04 (MBIA Insured) Aaa 4,570,000 4,884,187
Suffolk County Wtr. Auth. 6% 6/1/17
(MBIA Insured) Aaa 3,060,000 3,197,700
Triborough Bridge & Tunnel Auth. Rev.:
Rfdg. (Gen. Purp.):
Series A, 4.60% 1/1/04 Aa 3,800,000 3,719,250
Series Y:
6% 1/1/12 Aa 7,600,000 7,999,000
5.50% 1/1/17 Aa 2,700,000 2,639,250
(Convention Ctr. Proj.):
Series E:
7.25% 1/1/10 Baa1 6,170,000 6,925,824
6% 1/1/11 Baa1 1,500,000 1,500,000
6% 1/1/03 Aa 1,250,000 1,328,124
272,334,295
NEW YORK & NEW JERSEY - 6.9%
New York & New Jersey Port Auth.:
Consolidated:
76th Series, 6.50% 11/1/26 (b) A1 3,000,000 3,071,250
85th Series:
5.20% 9/1/16 A1 2,000,000 1,862,500
5.20% 9/1/18 A1 1,675,000 1,545,187
5.375% 3/1/28 A1 7,000,000 6,492,500
99th Series, 7% 11/1/04 (FGIC Insured) (b) Aaa 5,040,000 5,695,200
4.75% 1/15/26 (AMBAC Insured) Aaa 3,000,000 2,531,250
21,197,887
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
PUERTO RICO - 2.2%
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Hwy. Rev. 4.14% 8/30/96 Baa1 $ 2,500,000 $ 2,500,000
Puerto Rico Commonwealth Hwy. & Trans. Auth.
Hwy. Rev. Gen. Oblig.:
Series C, 5% 7/1/36 Baa1 1,900,000 1,617,374
5.50% 7/1/36 Baa1 1,300,000 1,205,750
Puerto Rico Infrastructure Fing. Auth. Spl. Tax
Series 1988 A, 7.75% 7/1/08 Baa1 1,500,000 1,605,000
6,928,124
TOTAL MUNICIPAL BONDS
(Cost $294,910,816) 300,460,306
MUNICIPAL NOTES (A) - 2.1%
NEW YORK - 2.1%
Chautauqua County Ind. Dev. Auth. Rev.
(Bush Industries, Inc. Proj.) Series 1984, 4.15%,
LOC Mellon Bank NA, VRDN - 1,200,000 1,200,000
New York City Gen. Oblig. Series 1994 E-3, 3.60%
(LOC Morgan Guaranty Trust Co.) VRDN VMIG 1 1,000,000 1,000,000
New York City Ind. Dev. Agcy. Ind. Dev. Rev.
(Japan Airlines Co. Ltd. Proj.) Series 1991,
3.70%, LOC Morgan Guaranty Trust Co. (b) A-1+ 1,000,000 1,000,000
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev. (Niagara Mohawk Pwr. Corp.) VRDN:
Series 1985 B, 3.65%
LOC Toronto-Dominion Bank P-1 500,000 500,000
Series 1986 A, 3.75%,
LOC Toronto-Dominion Bank (b) P-1 800,000 800,000
Series 1987 B, 3.75%,
LOC Morgan Guaranty Trust Co. (b) A-1+ 300,000 300,000
Series 1988 A, 3.75%,
LOC Morgan Guaranty Trust Co. (b) A-1+ 1,500,000 1,500,000
TOTAL MUNICIPAL NOTES
(Cost $6,300,000) 6,300,000
TOTAL INVESTMENTS - 100%
(Cost $301,210,816) $ 306,760,306
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
3. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
4. Security collateralized by an amount sufficient to pay interest and
principal.
5. 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.
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 61.3% AAA, AA, A 60.0%
Baa 35.5% BBB 29.4%
Ba 0.0% BB 2.2%
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:
General Obligation 34.2%
Transportation 17.6
Industrial Development 13.1
Special Tax 12.1
Water & Sewer 7.1
Electric Revenue 6.1
Others (individually less than 5%) 9.8
TOTAL 100.0%
INCOME TAX INFORMATION
At July 31, 1996, the aggregate cost of investment securities for income
tax purposes was $301,727,534. Net unrealized appreciation aggregated
$5,032,772, of which $7,513,937 related to appreciated investment
securities and $2,481,165 related to depreciated investment securities.
At January 31, 1996, the fund had a capital loss carryforward of
approximately $8,388,000 which will expire on January 31, 2004.
At January 31, 1996 the fund was required to defer $251,712 of losses on
futures contracts.
SPARTAN NEW YORK MUNICIPAL INCOME FUND

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $301,210,816) - $ 306,760,306
See accompanying schedule

Cash 292,159

Interest receivable 4,343,763

TOTAL ASSETS 311,396,228

LIABILITIES

Payable for investments purchased $ 1,474,148

Distributions payable 238,851

Accrued management fee 142,895

TOTAL LIABILITIES 1,855,894

NET ASSETS $ 309,540,334

Net Assets consist of:

Paid in capital $ 313,409,282

Accumulated undistributed net realized gain (loss) (9,418,438)
on investments

Net unrealized appreciation (depreciation) on 5,549,490
investments

NET ASSETS, for 29,682,307 shares outstanding $ 309,540,334

NET ASSET VALUE, offering price and redemption price $10.43
per share ($309,540,334 (divided by) 29,682,307 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1996 (UNAUDITED)

INTEREST INCOME $ 8,913,652

EXPENSES

Management fee $ 852,691

Non-interested trustees' compensation 710

Total expenses before reductions 853,401

Expense reductions (18,927) 834,474

NET INTEREST INCOME 8,079,178

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities (172,310)

Futures contracts (82,040) (254,350)

Change in net unrealized appreciation (depreciation) on:

Investment securities (9,858,936)

Futures contracts (7,677) (9,866,613)

NET GAIN (LOSS) (10,120,963)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (2,041,785)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JULY 31, JANUARY 31,
1996 1996
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 8,079,178 $ 16,823,675
Net interest income

Net realized gain (loss) (254,350) 367,447

Change in net unrealized appreciation (depreciation) (9,866,613) 29,786,657

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (2,041,785) 46,977,779
FROM OPERATIONS

Distributions to shareholders from net interest income (8,079,178) (17,006,346)

Share transactions 18,641,489 45,657,560
Net proceeds from sales of shares

Reinvestment of distributions 6,646,826 14,016,045

Cost of shares redeemed (33,335,591) (57,063,043)

Redemption fees 10,866 10,681

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (8,036,410) 2,621,243
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (18,157,373) 32,592,676

NET ASSETS

Beginning of period 327,697,707 295,105,031

End of period $ 309,540,334 $ 327,697,707

OTHER INFORMATION
Shares

Sold 1,787,486 4,435,483

Issued in reinvestment of distributions 638,333 1,350,510

Redeemed (3,199,542) (5,514,764)

Net increase (decrease) (773,723) 271,229

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, NINE MONTHS YEAR ENDED
ENDED ENDED APRIL 30,
JULY 31, 1996 JANUARY 31,

SELECTED PER-SHARE DATA (UNAUDITED) 1996 1995 1994 E 1993 1992

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.760 $ 9.780 $ 11.380 $ 10.890 $ 10.480 $ 10.090

Income from Investment Operations .271 .549 .607 .622 .491 .675
Net interest income

Net realized and unrealized gain (loss) (.330) .986 (1.322) .768 .518 .408

Total from investment operations (.059) 1.535 (.715) 1.390 1.009 1.083

Less Distributions (.271) (.555) F (.607) (.622) (.491) (.675)
From net interest income

From net realized gain - - (.160) (.280) (.110) (.020)

In excess of net realized gain - - (.120) - - -

Total distributions (.271) (.555) (.887) (.902) (.601) (.695)

Redemption fees added to paid in capital .000 .000 .002 .002 .002 .002

Net asset value, end of period $ 10.430 $ 10.760 $ 9.780 $ 11.380 $ 10.890 $ 10.480

TOTAL RETURN B (.52)% 16.05% (6.16)% 13.12% 9.83% 11.03%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 309,540 $ 327,698 $ 295,105 $ 446,030 $ 366,840 $ 291,913

Ratio of expenses to average net assets .55% A .55% .55% .55% .48% A, .38% D
D

Ratio of expenses to average net assets after expense .54% A, .54% C .55% .55% .48% A .38%
reductions C

Ratio of net interest income to average net assets 5.21% A 5.30% 5.98% 5.49% 6.03% A 6.51%

Portfolio turnover rate 53% A 82% 38% 50% 35% A 21%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL RETURNS WOULD HAVE BEEN LOWER
HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
E 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.
F THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES ( SEE NOTE 1 OF NOTES TO FINANCIAL STATEMENTS).
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL INCOME FUND

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 on an average sized account. 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 and dividends would
have been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED JULY 31, 1996 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Spartan New York Intermediate Municipal Inco -0.44% 5.79% 10.21%
me

Lehman Brothers New York 1-17 Year 0.31% 6.17% n/a
Municipal Bond Index

New York Intermediate Municipal Debt -0.28% 4.72% n/a
Funds Average
</TABLE>
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 New York 1-17 Year Municipal Bond Index, which is a total return
performance benchmark for New York investment-grade municipal bonds with
maturities between one and 17 years. To measure how the fund's performance
stacked up against its peers, you can also compare it to the New York
intermediate municipal debt funds average, which reflects the performance
of 23 mutual funds with similar objectives tracked by Lipper Analytical
Services, Inc. over the past six months. Both benchmarks reflect
reinvestment of dividends and capital gains if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1996 PAST 1 LIFE OF
YEAR FUND

Spartan New York Intermediate Municipal Inco 5.79% 3.82%
me

Lehman Brothers New York 1-17 Year 6.17% n/a
Municipal Bond Index

New York Intermediate Municipal Debt 4.72% n/a
Funds Average

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Spartan New York Intermediate Municipal Income Fund on December
31, 1993, shortly after the fund started. As the chart shows, by July 31,
1996, the value of the investment would have grown to $11,009 - a 10.09%
increase on the initial investment. This assumes you still own the fund on
July 31, 1996 and therefore does not include the effect of the $5 account
closeout fee. For comparison, look at how the Lehman Brothers Municipal
Bond Index, which reflects the performance of the investment-grade
municipal bond market, did over the same period. With dividends reinvested,
the same $10,000 would have grown to $11,189 - a 11.89% increase.

1996 1996 1995 1994

Dividend return 2.27% 5.34% 4.82% 0.33%

Capital appreciation
return -2.71% 7.64% -8.05% 0.88%

Total return -0.44% 12.98% -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, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 3.73(cents) 22.47(cents) 46.22(cents)

Annualized dividend rate 4.55% 4.64% 4.74%

30-day annualized yield 4.62% - -

30-day annualized tax-equivalent yield 8.16% - -

</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 $9.65 over
the past month, $9.72 over the past six months, and $9.76 over the past
year, you can compare the fund's income over these three periods. Dividends
per share show the income paid by the fund for a set period of time and do
not reflect any tax reclassifications. 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 43.41%
combined effective 1996 federal, state and New York City income tax
bracket, but does not reflect payment of the alternative minimum tax, if
applicable.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL INCOME FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Norm Lind, Portfolio Manager of Spartan New York
Intermediate Municipal Income Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. For the six months ended July 31, 1996, the fund returned -0.44%,
slightly underperforming the New York intermediate municipal debt funds
average, as tracked by Lipper Analytical Services, which had a total return
of -0.28%. The Lehman Brothers New York 1-17 Year Municipal Bond Index had
a total return of 0.31% over the same period. For the 12 months ended July
31, 1996, the fund returned 5.79%, while the Lipper average and the index
returned 4.72% and 6.17%, respectively.
Q. WHAT'S CONTRIBUTED TO THE SOMEWHAT CHOPPY MUNICIPAL MARKET ENVIRONMENT
WE'VE SEEN SO FAR IN 1996?
A. Well, coming into December and January, there were real concerns in the
muni market about the potential for tax reform and, more specifically, for
a flat tax. That made investors wary of the municipal market, since those
proposals posed a possible threat to the favorable tax treatment of
municipal bonds. As a result, municipal bond prices fell, and yields were
pushed up close to historically high levels compared to U.S. Treasury
yields. As the year wore on, however, and no concrete proposals emerged as
rallying points for serious reform, buyers gradually returned to the
municipal market.
Q. HOW HAS THE MUNICIPAL MARKET REACTED TO THE ECONOMY'S UNEXPECTED
STRENGTH?
A. When employment numbers came out in the spring that suggested the
economy was far stronger than people had anticipated, interest rates rose
fairly sharply. But partly because the municipal market had already been
through a rough patch earlier in the year, municipals fared relatively well
compared to other fixed-income investments. After the initial shock of
higher rates, municipals have recovered somewhat over the past few months
and, despite their negative short-term results, were among the
better-performing income-oriented investments.
Q. HOW DID THAT BACKDROP TRANSLATE TO THE NEW YORK MUNICIPAL MARKET?
A. In New York, the story has been the budget. That holds true for both the
state and the city. New York state was extremely late in getting a budget
deal finalized - the budget was due on April 1, and it wasn't finished
until mid-July. As you can imagine, that uncertainty had quite an impact on
the New York municipal market. What you might not imagine, though, is that
the result was strong relative performance by some New York issues.
Q. WHY WAS THAT?
A. It was mainly because of the limited supply of New York bonds out in the
marketplace as a result of the lack of a budget agreement. You see, without
a completed budget, the state could not issue significant new debt.
However, the situation was not as dramatic as last year, when the
legislature nearly let the state government shut down. This year, it
continued to pass bills to let the government continue operations and, most
importantly, guarantee that debt service would continue to be paid.
Q. WHAT OTHER FACTORS HELPED THE FUND OVER THE PAST SIX MONTHS?
A. The fund's structure played an important role. The portfolio was heavily
weighted in non-callable bonds. The non-callability can provide upside
potential, since the bond can't be redeemed by the issuer when rates fall.
That structure hurt the fund somewhat as rates rose, although as the market
has recovered, so have these types of bonds. Additionally, the fund's
investments in New York Local Government Assistance Corporation - LGAC -
bonds helped the fund's performance. LGAC is a financing authority that has
reached the end of its financing program. The market was slow to recognize
the value of this program, but recently LGAC bonds have been increasingly
attractive to municipal buyers.
Q. WAS THERE ANYTHING THAT PROVED DISAPPOINTING OVER THE PERIOD?
A. Yes, I'd have to say that the fund's underweighting in New York City
bonds was my biggest disappointment during this period. I believed that the
state budget process would be every bit as difficult as it turned out to
be, but I also thought there would be more of a negative impact on the
city's bonds. In retrospect, it would have helped the fund's performance to
have weighted the portfolio more heavily in the city's bonds. One other
area that hurt performance was deep discount bonds with coupon rates below
5%. Specifically, an education bond from Columbia University bond was a
large position in the fund, but has not performed up to my expectations.
Q. NORM, WE UNDERSTAND THERE WERE SOME INVESTMENT POLICY CHANGES . . .
A. As of October 1, 1996, the fund will change some of its debt quality
policies as part of the standardization of quality policies for our
fixed-income funds. The restriction limiting the fund's investments in
BBB-rated bonds - the lowest tier of investment-grade securities - to 25%
of its assets has been eliminated. This change allows the fund increased
flexibility to invest in the lowest tier of investment-grade bonds without
significantly increasing the risk of the fund. Further, Fidelity now uses
two additional agencies to determine the credit quality of the fund's
bonds. Ratings from Duff & Phelps Rating Co. and Fitch Investors Service,
L.P., may be used, along with those from Moody's Investor's Service and
Standard & Poor's which had been used previously.
Q. LOOKING AHEAD, NORM, WHAT DO YOU SEE ON THE HORIZON FOR THE NEW YORK
MUNICIPAL MARKET?
A. I think some cautious optimism is in order right now. The level of
municipal yields, as a percentage of Treasury yields, is at the lower end
of its historical range. That suggests that municipals are at fair to
slightly high levels. Another reason for a bit of caution is that we could
see renewed talk of tax reform as we head into the heat of the campaign
season. Given all of that, I believe that the fund's structure is on target
for providing value over the long term, and I intend to maintain its
emphasis in the premium, non-callable area.
FUND FACTS
GOAL: high current income
exempt from federal, state
and New York City income
taxes by investing primarily
in investment-grade New
York municipal securities
START DATE: December 29,
1993
SIZE: as of July 31, 1996,
more than $53 million
MANAGER: Norm Lind, since
1995; manager, Fidelity New
York Municipal Income, since
1993; Fidelity New York
Insured Municipal Income
Fund, since 1994; Fidelity
Advisor Short-Intermediate
Municipal Income, Spartan
Intermediate Municipal
Income and Spartan
Short-Intermediate Municipal
Income funds, since 1995;
joined Fidelity in 1986
(checkmark)
NORM LIND ON NEW YORK'S
ONGOING BUDGET DIFFICULTIES:
"I think it's obvious to most
observers that the state of
New York needs to reform its
budget process. It clearly
shouldn't take until the middle
of July to work out a budget
that's due April 1; the market
sees that as a sign of a
financial house that's not in
order. In fact, Governor
Pataki started the process
early this time around, in
December rather than
January, in the hopes of
getting a head start. However,
his budget counted on federal
reforms of welfare and
Medicaid to help the state with
its financing. The lack of
progress on the federal level
allowed the state to delay
serious work on the budget for
some time. The good news
from New York is that the final
budget does look credible,
and included some tax cuts.
There's still much work to be
done on the spending side. In
the "out" years, or the years
beyond next year, there are
projected deficits of billions of
dollars - and the state has
already done what it could on
a one-time basis to sell off
assets. The size of the
projected deficits will make it
very hard for the state to
balance the budget through
revenue growth; a concerted
effort to face the issue
head-on and make necessary
spending cuts is what the
state could use most going
forward."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL INCOME FUND

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF JULY 31, 1996
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO

General Obligation 32.5 25.2

Water & Sewer 15.7 17.0

Special Tax 11.0 12.0

Education 9.6 8.0

Resource Recovery 7.8 8.0

AVERAGE YEARS TO MATURITY AS OF JULY 31, 1996
6 MONTHS AGO

Years 8.5 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, 1996
6 MONTHS AGO

Years 5.9 6.1

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. BEGINNING
WITH THE REPORTING CYCLE OF JUNE,1996, THE MODEL USED TO CALCULATE
DURATIONS MAY BE SLIGHTLY MODIFIED IN ORDER TO FURTHER REFINE THIS
INFORMATION. THESE CHANGES IN METHODOLOGY MAY PRODUCE ADJUSTMENTS IN
HISTORICAL DURATION FIGURES.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF JULY 31, 1996 AS OF JANUARY 31, 1996
Aaa 40.2%
Aa, A 30.6%
Baa 22.5%
Ba, B 0.0%
Non-rated 0.0%
Short-term
investments 6.7%
Aaa 46.4%
Aa, A 27.7%
Baa 19.6%
Ba, B 0.0%
Non-rated 0.0%
Short-term
investments 6.3%
Row: 1, Col: 1, Value: 40.2
Row: 1, Col: 2, Value: 30.6
Row: 1, Col: 3, Value: 22.5
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 6.7
Row: 1, Col: 1, Value: 46.4
Row: 1, Col: 2, Value: 27.7
Row: 1, Col: 3, Value: 19.6
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
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 INTERMEDIATE MUNICIPAL INCOME FUND

INVESTMENTS JULY 31, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 93.3%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - 92.3%
Babylon Waste Facs. 9% 8/1/09 (FGIC Insured) Aaa $ 350,000 $ 462,438
Canandaigua School Dist.
5.25% 6/1/07 (AMBAC Insured) Aaa 515,000 521,438
Hempstead Ind. Dev. Agcy. Resource
Recovery Rev. (American Ref.-Fuel Co.)
7.375% 12/1/05 Baa1 2,230,000 2,289,630
Monroe County Gen. Oblig. 6.50% 6/1/04 Aa 1,500,000 1,648,125
Monroe County Pub. Impt. Unltd. Tax 5%
6/1/07 (AMBAC Insured) Aaa 1,500,000 1,471,875
Nassau County Rfdg. Combined
Swr. Dist. Series E, 5.30% 7/1/07
(MBIA Insured) Aaa 350,000 350,875
New York City Gen. Oblig.:
Rfdg. Series D, 6.30% 8/15/01 Baa1 1,000,000 1,037,500
Series A, 7% 8/1/04 (AMBAC Insured) Aaa 1,000,000 1,132,500
5.70% 8/15/02 Baa1 1,310,000 1,313,275
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 1,090,000
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 Metropolitan Trans. Auth. Svc. Contract
Rfdg. (Transit Facs.) Series 5, 6.90% 7/1/05 Baa1 1,500,000 1,606,875
New York City Muni. Assistance Corp.
Series D, 6% 7/1/05 (AMBAC Insured) Aaa 2,000,000 2,145,000
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev. Series B, 5.375% 6/15/07
(AMBAC Insured) Aaa 1,000,000 1,003,750
New York State Crossover Rfdg. Gen. Oblig.
7.50% 11/15/00 A 1,000,000 1,103,750
New York State Ctfs. of Prtn. 6.70% 9/1/97 Baa1 1,110,000 1,135,230
New York State Dorm. Auth. Rev.
Rfdg. (State Univ. Edl. Facs.):
Series A:
6.50% 5/15/04 Baa1 1,000,000 1,063,750
6.50% 5/15/06 Baa1 1,000,000 1,061,250
Series B, 5.25% 5/15/10 Baa1 500,000 466,875
(City Univ.) 6.25% 7/1/03 Baa1 525,000 549,938
(City Univ. Sys. Consolidated) Series C,
6.25% 7/1/04 (AMBAC Insured) Aaa 2,100,000 2,273,250
(Columbia Univ.) Series A, 4.75% 7/1/14 Aaa 2,500,000 2,212,500
(Univ. Rochester-Strong Memorial Hosp.)
5.20% 7/1/05 A1 1,000,000 998,750
(Vassar College):
6% 7/1/03 Aa 300,000 320,250
6% 7/1/04 Aa 745,000 797,150
6% 7/1/06 Aa 850,000 907,375
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev. (Elec. & Gas Corp.) Series E
5.90% 12/1/06 (MBIA Insured) Aaa $ 1,000,000 $ 1,066,250
New York State Envir. Facs. Corp. Poll. Cont. Rev.:
(State Wtr. Revolving Fund):
(City Proj.) Series E,
6.25% 6/15/05 Aa 1,500,000 1,618,125
Series A, 6.90% 6/15/02 Aa 1,100,000 1,211,375
Series D, 6.10% 5/15/03 Aaa 1,000,000 1,076,250
6.40% 11/15/06 Aaa 1,000,000 1,101,250
New York State Local Gov't. Assistance Corp.:
Rfdg. Series E, 6% 4/1/14 A 500,000 520,625
Series A, 7% 4/1/04 A 2,500,000 2,753,125
New York State Pwr. Auth. Rev. & Gen. Purpose
Rfdg. Series W, 6.50% 1/1/08 Aa 250,000 275,625
New York State Thruway Auth. Hwy. & Bridge
Trust Fund Series A, 6.25% 4/1/04
(MBIA Insured) Aaa 500,000 542,500
New York State Thruway Auth. Svc. Contract
Rev. (Local Hwy. & Bridge) Series A, 6%
1/1/05 (MBIA Insured) Aaa 1,000,000 1,066,250
New York State Urban Dev. Corp. Rev. Rfdg.:
(Correctional Cap. Facs.) Series A,
6.30% 1/1/03 Baa1 700,000 731,500
(Syracuse Univ. Ctr.) 5.20% 1/1/03 Baa1 1,000,000 972,500
Niagara Falls Wtr. Treatment 7% 11/1/13
(MBIA Insured) Aaa 1,000,000 1,123,750
Oyster Bay Gen. Oblig. 5.50% 2/15/12 Aa 945,000 940,275
Suffolk County Ind. Dev. Agcy. Southwest Swr.
Sys. Rev. 6% 2/1/07 (FGIC Insured) Aaa 1,340,000 1,432,125
Suffolk County Wtr. Auth. Wtrwks. Rev. Rfdg.
Series C, 5.75% 6/1/10 (AMBAC Insured)
(Pre-Refunded to 6/1/02 @102) (d) Aaa 30,000 31,988
Triborough Bridge & Tunnel Auth. Rev. Gen.
Purpose Rev.:
Rfdg. Series Y, 5.50% 1/1/03 Aa 1,500,000 1,554,375
Series A, 6% 1/1/11 Aa 500,000 518,125
Triborough Bridge & Tunnel Auth. Rev. (d):
Series R, 6% 1/1/20 (MBIA Insured)
(Pre-Refunded to 1/1/00 @100) Aaa 90,000 94,163
Series S, 7% 1/1/21 (Pre-Refunded to
1/1/01 @101.50) Aaa 1,000,000 1,106,250
50,220,400
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
PUERTO RICO - 1.0%
Puerto Rico Commonwealth Pub. Impt. 6.80%
7/1/21
(Pre-Refunded to 7/1/02 @101.50) (d) Aaa $ 500,000 $ 561,250
TOTAL MUNICIPAL BONDS
(Cost $50,470,352) 50,781,650
MUNICIPAL NOTES (A) - 6.7%
NEW YORK - 5.7%
Erie County Ind. Dev. Auth. Ind. Dev. Rev.
(National Wire Prods.) Series 1988 E,
3.75%, LOC Marine Midland Bank,
VRDN (b) A-2 420,000 420,000
New York City Ind. Dev. Auth.
(Japan Airlines Co. Ltd. Proj.) Series 1991,
3.65%, LOC Morgan Guaranty Trust Co,
VRDN (b) A-1+ 700,000 700,000
New York State Energy Research & Dev.
Auth. Poll. Cont. Rev. (Niagara Mohawk
Pwr. Corp.) VRDN:
Series 1985 B, 3.65%
LOC Toronto-Dominion Bank P-1 100,000 100,000
Series 1986 A, 3.75%,
LOC Toronto-Dominion Bank (b) P-1 400,000 400,000
Series 1987 B, 3.75%,
LOC Morgan Guaranty Trust Co. (b) A-1+ 600,000 600,000
Series 1988 A, 3.75%,
LOC Morgan Guaranty Trust Co. (b) A-1+ 900,000 900,000

3,120,000
NEW YORK & NEW JERSEY - 1.0%
New York & New Jersey Port Auth. Series SS,
4.90% 9/1/97 (b) MIG 1 515,000 515,323
TOTAL MUNICIPAL NOTES
(Cost $3,635,000) 3,635,323
TOTAL INVESTMENTS - 100%
(Cost $54,105,352) $ 54,416,973
SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
3. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
4. 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 69.8% AAA, AA, A 73.3%
Baa 22.5% BBB 18.3%
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 0.0%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
General Obligation 32.5%
Water and Sewer 15.7
Special Tax 11.0
Education 9.6
Resource Recovery 7.8
Lease Revenue 5.0
Others (individually less than 5%) 18.4
TOTAL 100.0%
INCOME TAX INFORMATION
At July 31, 1996, the aggregate cost of investment securities for income
tax purposes was $54,105,352. Net unrealized appreciation aggregated
$311,621, of which $651,391 related to appreciated investment securities
and $339,770 related to depreciated investment securities.
At January 31, 1996, the fund had a capital loss carryforward of
approximately $319,000 which will expire on January 31, 2003.
The fund has elected to defer to its fiscal year ending January 31, 1997
approximately $6,000 of losses recognized during the period November 1,
1995 to January 31,1996.
At January 31, 1996, the fund was required to defer $19,222 of losses on
futures contracts.
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL INCOME FUND

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $54,105,352) - $ 54,416,973
See accompanying schedule

Receivable for fund shares sold 52,226

Interest receivable 605,802

TOTAL ASSETS 55,075,001

LIABILITIES

Payable to custodian bank $ 178,381

Payable for investments purchased 1,002,631

Distributions payable 30,715

Accrued management fee 24,856

Other payables and accrued expenses 3,907

TOTAL LIABILITIES 1,240,490

NET ASSETS $ 53,834,511

Net Assets consist of:

Paid in capital $ 53,788,736

Accumulated undistributed net realized gain (loss) (265,846)
on investments

Net unrealized appreciation (depreciation) on 311,621
investments

NET ASSETS, for 5,541,976 shares outstanding $ 53,834,511

NET ASSET VALUE, offering price and redemption price $9.71
per share ($53,834,511 (divided by) 5,541,976 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1996 (UNAUDITED)

INTEREST INCOME $ 1,386,786

EXPENSES

Management fee $ 148,219

Non-interested trustees' compensation 122

Total expenses before reductions 148,341

Expense reductions (16,110) 132,231

NET INTEREST INCOME 1,254,555

REALIZED AND UNREALIZED GAIN (LOSS) 78,294
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on (1,617,818)
investment securities

NET GAIN (LOSS) (1,539,524)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (284,969)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JULY 31, JANUARY 31,
1996 1996
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 1,254,555 $ 2,399,673
Net interest income

Net realized gain (loss) 78,294 364,706

Change in net unrealized appreciation (depreciation) (1,617,818) 3,106,640

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (284,969) 5,871,019
FROM OPERATIONS

Dividends to shareholders From net interest income (1,254,555) (2,448,025)

Share transactions 14,994,451 43,426,908
Net proceeds from sales of shares

Reinvestment of distributions 1,071,015 2,102,390

Cost of shares redeemed (16,720,882) (28,094,066)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (655,416) 17,435,232
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (2,194,940) 20,858,226

NET ASSETS

Beginning of period 56,029,451 35,171,225

End of period $ 53,834,511 $ 56,029,451

OTHER INFORMATION
Shares

Sold 1,533,004 4,497,855

Issued in reinvestment of distributions 110,152 216,479

Redeemed (1,717,391) (2,889,437)

Net increase (decrease) (74,235) 1,824,897

</TABLE>

FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SIX MONTHS YEAR ENDED JANUARY 31, DECEMBER 29, 1993
ENDED (COMMENCEMENT OF
JULY 31, 1996 OPERATIONS) TO

(UNAUDITED) 1996 1995 JANUARY 31, 1994

SELECTED PER-SHARE DATA

Net asset value, beginning $ 9.980 $ 9.280 $ 10.090 $ 10.000
of period

Income from Investment .225 .471 .480 .033
Operations
Net interest income

Net realized and unrealized (.270) .709 (.810) .090
gain (loss)

Total from investment (.045) 1.180 (.330) .123
operations

Less Distributions

From net interest income (.225) (.480) E (.480) (.033)

Net asset value, end of period $ 9.710 $ 9.980 $ 9.280 $ 10.090

TOTAL RETURN B (.43)% 12.98% (3.21)% 1.23%

RATIOS AND SUPPLEMENTAL
DATA

Net assets, end of period $ 53,835 $ 56,029 $ 35,171 $ 9,273
(000 omitted)

Ratio of expenses to average .50% A, D .22% D .04% D 0.0% A,
net assets D

Ratio of expenses to average .49% A, C .22% .04% 0.0% A
net assets after expense
reductions

Ratio of net interest income to 4.65% A 4.87% 5.18% 3.85% A
average net assets

Portfolio turnover rate 24% A 77% 33% 0%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL RETURNS WOULD HAVE BEEN LOWER
HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
E THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES (SEE NOTE 1 OF NOTES TO FINANCIAL STATEMENTS).
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND

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, the past five years and life of fund
total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Spartan New York Municipal Money Market 1.49% 3.19% 14.95% 23.94%

New York Tax-Free 1.38% 2.98% 13.53% 20.99%
Money Market Funds Average

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 New York tax-free money market funds average, which
reflects the performance of 35 mutual funds with similar objectives tracked
by IBC Financial Data, Inc. over the past six months. (The periods covered
by the IBC Financial Data, Inc. numbers are the closest available match to
those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan New York Municipal Money Market 3.19% 2.82% 3.36%

New York Tax-Free 2.97% 2.57% 3.01%
Money Market Funds Average

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
7/31/95 10/30/95 1/29/96 4/29/96 7/29/96

Spartan New York 3.39% 3.39% 2.90% 3.34% 3.05%
Municipal Money Market

New York Tax-Free Money 3.11% 3.16% 2.74% 3.10% 2.84%
Market Funds Average

Spartan New York 5.99% 5.99% 5.12% 5.90% 5.39%
Municipal Money Market -
Tax-equivalent

Row: 1, Col: 1, Value: 3.39
Row: 1, Col: 2, Value: 3.11
Row: 2, Col: 1, Value: 3.39
Row: 2, Col: 2, Value: 3.16
Row: 3, Col: 1, Value: 2.9
Row: 3, Col: 2, Value: 2.74
Row: 4, Col: 1, Value: 3.34
Row: 4, Col: 2, Value: 3.1
Row: 5, Col: 1, Value: 3.05
Row: 5, Col: 2, Value: 2.84
4% -
3% -
2% -
1% -
0%
Spartan New York
Municipal Money
Market
New York Tax-Free
Money Market
Funds Average
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 New York tax-free money market funds average as
tracked by IBC Financial Data, Inc. Or you can look at the fund's
tax-equivalent yield, which is based on a combined effective 1996 federal,
state and New York City income tax rate of 43.41%. 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 FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jan Bradburn, Portfolio Manager of Spartan New York
Municipal Money Market Fund
Q. JAN, HOW HAS THE INVESTMENT CLIMATE CHANGED DURING THE PERIOD?
A. The past six months have brought a dramatic reversal in market
sentiment. When the current reporting period began, the economy was
expanding slowly, inflationary pressures were under control, Congress and
the White House appeared on the verge of signing a balanced budget
agreement and the Federal Reserve was in an easing mode. Three times since
July 1995, the Fed had cut the rate banks charge each other for overnight
loans, known as the federal funds rate - most recently on January 31, 1996,
the day before the period began. Looking ahead, many market participants
believed further rate cuts would be necessary to prevent the economy from
sliding into a recession.
Q. WHY DID THE MARKET SENTIMENT CHANGE?
A. Early in the period, the economy began showing tentative signs of
improvement. Fed Chairman Alan Greenspan, testifying before the Senate
Banking Committee in mid-February, suggested the economy was performing
better than expected. Then came the infamous February employment report.
When market participants saw that the number of jobs created during the
month had been four times greater than expected, interest rates rose
sharply. As it turned out, the economy expanded at an annual rate of 2.2%
during the first quarter - very close to the Fed's target pace for
sustainable, non-inflationary growth. Since then, a stream of positive
indicators has pushed interest rates steadily higher. Not surprisingly, the
estimated second-quarter growth rate was even faster at 4.2%.
Q. WHAT WAS YOUR STRATEGY DURING
THE PERIOD?
A. The fund's average maturity at the beginning of the period was around 60
days, reflecting my belief at the time that further rate cuts were likely.
When interest rates are falling, it often makes sense to lock in current
rates by buying securities with longer average maturities. Since then,
however, as market pressures have driven short-term interest rates higher,
I've gradually reduced the fund's average maturity in order to gain more
flexibility. For most of the period, the fund's average maturity in days
has ranged from the high 40s to the mid 50s, depending on the supply of
attractive issues. At the end of July, the fund's average maturity was 52
days.
Q. HOW DID THE FUND PERFORM?
A. Slightly better than the average of its peers. The fund's seven-day
yield on July 31, 1996 was 3.07% compared to 2.92% six months ago. The
latest yield was the equivalent of a 5.42% taxable rate of return for New
York City investors in the 43.41% combined federal, state and local income
tax bracket. Through July 31, 1996, the fund's six-month total return was
1.49%, compared to 1.38% for the New York tax-free money market funds
average, according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. Recent positive trends in key indicators such as employment, housing and
consumer spending portray a healthy economy, decreasing the possibility of
further rate cuts. Given the growing uncertainty, I'll probably aim to keep
the fund's average maturity between 50 and 60 days-possibly longer,
depending on buying opportunities and the supply of new issues. That would
give me flexibility to adapt to changing conditions.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
7/31/96 1/31/96 7/31/95

0 - 30 69 60 72

31 - 90 15 10 10

91 - 180 5 19 4

181 - 397 11 11 14

WEIGHTED AVERAGE MATURITY
7/31/96 1/31/96 7/31/95

Spartan New York
Municipal Money Market 52 days 62 days 61 days

New York Tax-Free
Money Market Funds 55 days 49 days 56 days
Average*

ASSET ALLOCATION
AS OF JULY 31, 1996 AS OF JANUARY 31, 1996

Row: 1, Col: 1, Value: 60.0
Row: 1, Col: 2, Value: 13.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 21.0
Row: 1, Col: 5, Value: 3.0
Row: 1, Col: 1, Value: 54.0
Row: 1, Col: 2, Value: 9.0
Row: 1, Col: 3, Value: 4.0
Row: 1, Col: 4, Value: 25.0
Row: 1, Col: 5, Value: 8.0
Variable rate
demand notes
(VRDNs) 60%
Commercial
paper 13%
Tender bonds 3%
Municipal
notes 21%
Other 3%
Variable rate
demand notes
(VRDNs) 54%
Commercial
paper 9%
Tender bonds 4%
Municipal
notes 25%
Other 8%
* SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND

INVESTMENTS JULY 31, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 94.8%
Albany Central School District BAN:
4% 5/2/97 $ 2,525,000 $ 2,530,288
4.50% 6/20/97 575,000 577,442
Amherst Ind. Dev. Auth.
(Maple Dev. Proj.) Series 1986, 3.75%,
LOC Marine Midland Bank, VRDN (b) 4,525,000 4,525,000
Babylon Ind. Dev. Rev. (Southern Container Corp.)
3.75%, LOC Fleet Bank, VRDN (b) 3,600,000 3,600,000
Broome County BAN 4.10% 4/18/97 10,800,000 10,831,850
Chautauqua County Ind. Dev. Auth. Rev.
(Red Wing Co. Inc. Proj.) Series 1985, 3.65%,
LOC Wachovia Bank of Georgia, VRDN 100,000 100,000
Chemung County Ind. Dev. Auth. Civic Fac. Rev.
(Arnot Ogden Med. Ctr.) 3.40%,
LOC Chemical Bank, VRDN 2,600,000 2,600,000
Chemung County Ind. Dev. Auth. Ind. Dev. Rev.
(MMARS Second Prog.) Series A, 3.75%,
LOC Marine Midland Bank, VRDN 2,400,000 2,400,000
Commack Unified Free School Dist. TAN 4.35% 6/27/97 700,000 701,827
Dobbs Ferry Unified School Dist. TAN 4.25% 2/28/97 800,000 802,237
Dutchess County Ind. Dev. Auth. Rev. (Toys "R" Us/
Nytex Inc. Proj.) 3.525%, LOC Bankers Trust Co., VRDN 500,000 500,000
East Hampton Township BAN:
3.50% 8/22/96 730,000 730,145
4% 4/17/97 1,000,000 1,002,049
Elmira BAN 4.375% 7/10/97 1,600,000 1,607,599
Erie County Ind. Dev. Auth. Ind. Dev. Rev. (b):
(Niagara Envelope Co. Proj.) 3.75%,
LOC Marine Midland Bank, VRDN 1,900,000 1,900,000
(Uniland Dev./Buffalo Campus-B) 3.75%,
LOC Marine Midland Bank, VRDN 1,230,000 1,230,000
Erie County RAN 4.50% 9/20/96,
LOC Union Bank of Switzerland 4,500,000 4,503,847
Freeport Unified Free School Dist. TAN Series B,
4.30% 6/30/97, LOC State Street Bank & Trust Company 3,600,000 3,610,901
Greensburgh Central School Dist. TAN 3.75% 10/11/96 2,800,000 2,801,069
Greenwood Lake Unified Free School Dist.
BAN 4.50% 6/27/97 2,280,000 2,291,885
Guilderland Central School Dist. TAN 3.85% 10/4/96 1,360,000 1,360,586
Herkimer County Ind. Rev. Agcy. (H.M. Quackenbush, Inc.)
Series 1988 A, 3.75%, LOC Marine Midland Bank,
VRDN (b) 1,100,000 1,100,000
Herricks Unified Free School Dist. TAN 4.25% 6/27/97 3,700,000 3,712,072
Huntington Unified Free School Dist. 4.25% 6/24/97 3,350,000 3,362,274
Island Park Unified Free School Dist. BAN 4% 9/13/96 894,000 894,408
Islip Ind. Dev. Agcy. Rev. (Interstate Litho Corp.) Series 1996 A,
3.80%, LOC Marine Midland Bank NA, VRDN (b) 1,400,000 1,400,000
Katonah-Lewisboro Unified Free School Dist. TAN
3.61% 10/18/96 3,200,000 3,200,391
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Lewis County Ind. Dev. Auth. Ind. Dev. Rev. Rfdg.
(Philip Morris Proj.) 3.60%, VRDN $ 1,300,000 $ 1,300,000
Monroe County BAN 4% 12/12/96 7,000,000 7,012,152
Monroe County Ind. Dev. Auth. Rev. (b):
(515 Lee Rd. Assoc./Nylomold Corp.) 3.75%, Series 1988 C,
LOC Marine Midland Bank, VRDN 300,000 300,000
(Advent Tool & Mold) Series 1990 D, 3.75%,
LOC Marine Midland Bank, VRDN 985,000 985,000
(JMT Prop. Proj.) Series 1988 B, 3.75%,
LOC Marine Midland Bank, VRDN 1,660,000 1,660,000
Nassau County BAN:
4% 8/15/96 7,795,000 7,796,066
4.25% 8/15/96 2,200,000 2,201,866
3.50% 11/15/96 6,700,000 6,701,252
4% 11/15/96 9,200,000 9,209,067
4.25% 3/14/97 9,200,000 9,225,976
Nassau County Gen. Impt. Bonds:
Series A, 5% 11/1/96 (FGIC Insured) 1,510,000 1,514,609
Series Q, 5% 8/1/96 (FGIC Insured) 4,300,000 4,300,000
Series P, 6.30% 11/1/96 (FGIC Insured) 450,000 453,252
New York City Gen. Oblig.:
Bonds Series A 8% 8/15/96 12,100,000 12,302,603
VRDN:
Series 1992 D:
3.55% (FGIC Insured) 2,100,000 2,100,000
3.55% (FGIC Insured) 4,500,000 4,500,000
Series 1995 B-10, 3.55%,
LOC Union Bank of Switzerland 2,700,000 2,700,000
Series 1995 F-4, 3.50%,
LOC Landesbank Hessen-Thuringen 7,800,000 7,800,000
Series 1995 F-7, 3.45%, LOC Union Bank of Switzerland 3,800,000
3,800,000
Series B, 3.55% (FGIC Insured) (BPA FGIC
Purchase Inc.) (Liquidity Facility FGIC) 4,600,000 4,600,000
New York City Gen. Oblig. Particpating VRDN,
Series 1994 C-3, 3.67% (Liquidity Facility Citibank) (c) 10,100,000
10,100,000
New York City Hsg. Dev. Corp. (Related-East 96th St. Proj.)
Series 1990 A, 3.40%, LOC Mitsubishi Bank Ltd., VRDN 1,400,000 1,400,000
New York City Hsg. Dev. Corp. Mtg. Rev. (York Ave. Proj.)
Series 1994 A, 3.55%,
LOC Marine Midland Bank, VRDN 13,250,000 13,250,000
New York City Hsg. Dev. Corp. Multi-Family Mtg. Rev., VRDN:
(100 Jane St. Dev. Proj.) Series 1995 A, 3.55%,
LOC Fleet National Bank NY 13,150,000 13,150,000
(400 W. 59th St. Proj.):
3.50%, LOC Bayerische Hypotheken (b) 12,600,000 12,600,000
3.55%, LOC Bayerische Hypothenken (b) 28,600,000 28,600,000
New York City Ind. Dev. Agcy. Rev. (Berkeley Carrol School Proj.)
Series 1993, 3.45%, LOC Chemical Bank, VRDN 1,126,000 1,126,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Ind. Dev. Auth. Ind. Dev. Rev. VRDN (b):
(Andin Int'l.) 3.05%, LOC ABN-Amro Bank $ 2,250,000 $ 2,250,000
(Apache Realty) 3.60%, LOC ABN-Amro Bank 1,250,000 1,250,000
(Bowe Industries, Inc.) 3.60%, LOC ABN-Amro Bank 1,750,000 1,750,000
(Display Sys., Inc.) Series 1990 E, 3.60%,
LOC ABN-Amro Bank 450,000 450,000
New York City Metropolitan Transit Auth. Participating VRDN (c):
Series 1993 C, 3.55%
(Liquidity Facility Midland Bank PLC) (FGIC Insured) 10,000,000
10,000,000
Series 1995 SG-36, 3.70%
(Liquidity Facility Society Generale) 7,590,000 7,590,000
New York City Metropolitan Transit Auth. Tender Option Bonds
Series 146, 3.67% (Liquidity Facility Citibank) (c) 16,655,000
16,655,000
New York City Muni. Fin. Auth. Participating VRDN,
Series 1992 A, 3.55% (Liquidity Facility Hong Kong
Shanghai Corp.) (MBIA Insured) (c) 5,500,000 5,500,000
New York City Muni. Wtr. Fin. Auth., CP:
Series 1:
3.55% 9/17/96, LOC Canadian Imperial Bank 24,000,000 24,000,000
3.60% 9/23/96, LOC Canadian Imperial Bank 2,300,000 2,300,000
Series 3, 3.70% 10/17/96, LOC Bank of
Nova Scotia/Toronto-Dominion Bank 5,700,000 5,700,000
New York State Dormitory Auth. Participating VRDN (c):
Series 1991 A, 3.70% (Liquidity Facility Citibank) 2,800,000 2,800,000
Series PA-60, 3.55% (Liquidity Facility Merrill Lynch & Co.) 2,500,000
2,500,000
New York State Dormitory Auth. Rev.:
Bonds:
(Memorial Sloan-Kettering Cancer Ctr.):
Series 1989 A, 3.50%, tender 9/19/96,
LOC Chemical Bank 10,400,000 10,400,000
Series 1989 B, 3.50%, tender 10/16/96,
LOC Chemical Bank 7,900,000 7,900,000
Series 1989 C:
3.55%, tender 9/18/96, LOC Chemical Bank 2,000,000 2,000,000
3.65%, tender 9/26/96, LOC Chemical Bank 1,000,000 1,000,000
3.65%, tender 10/24/96, LOC Chemical Bank 4,500,000 4,500,000
New York State Energy Research & Dev. Auth.
(Long Island Lighting) VRDN (b):
Series 1993 A, 3.55%, LOC Toronto-Dominion Bank 13,300,000 13,300,000
Series 1994 A, 3.50%, LOC Union Bank of Switzerland 7,600,000
7,600,000
Series 1995 A, 3.50%, LOC Union Bank of Switzerland 8,200,000
8,200,000
New York State Energy Research & Dev. Auth. Bonds
Series 943206, 3.25%, tender 8/1/96
(Liquidity Facility Citibank) (c) (e) 6,200,000 6,200,000
New York State Energy Research & Dev. Auth.
Participating VRDN, Series 943202,
3.67% (Liquidity Facility Citibank) (MBIA Insured) (c) 11,600,000
11,600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Energy Research & Dev. Poll. Auth. Cont. Rev.
Bonds (New York State Electric & Gas) Series 1985 D,
3.65%, tender 12/1/96, LOC Union Bank of Switzerland $ 4,550,000 $
4,550,000
New York State Energy Research & Dev. Auth. Poll.
Cont. Rev. (Niagara Mohawk Pwr.), VRDN:
Series 1986 A, 3.75%,
LOC Toronto Dominion Bank (b) 800,000 800,000
Series 1987 A, 4.05%,
LOC Toronto Dominion Bank 3,900,000 3,900,000
Series 1987 B, 3.75%,
LOC Morgan Guaranty Trust Co. (b) 17,550,000 17,550,000
Series 1988 A, 3.75%,
LOC Morgan Guaranty Trust Co. (b) 14,300,000 14,300,000
New York State Envir. Fac. Corp. Participating VRDN,
Series CR-154, 3.67% (Liquidity Facility Citibank) (c) 6,000,000
6,000,000
New York State Envir. Fac. Corp. Solid Waste Rev. Bonds
(General Elec. Proj.) Series 1992 A, 3.65%,
tender 10/29/96 (b) 1,450,000 1,450,000
New York State Gen. Oblig., CP:
Series Q:
3.70% 8/7/96
(Liquidity Facility Westdeutche Landesbanken) 4,400,000 4,400,000
3.70% 8/8/96
(Liquidity Facility Westdeutsche Landesbanken) 2,200,000 2,200,000
Series R, 3.70% 8/8/96
(Liquidity Facility Westdeutsche Landesbanken) 2,300,000 2,300,000
Series S:
3.55% 10/8/96
(Liquidity Facility Westdeutche Landesbanken) 5,200,000 5,200,000
3.55% 10/9/96
(Liquidity Facility Westdeutche Landesbanken) 5,500,000 5,500,000
New York State Hsg. Fin. Agcy. Rev., VRDN (b):
(E. 84th St. Proj.) Series 1995 A, 3.55%,
LOC Fleet National Bank 10,000,000 10,000,000
(Normandie Court II Proj.) Series 1987 A, 3.65%,
LOC Fleet National Bank 13,500,000 13,500,000
New York State Local Gov't. Assistance Corp., VRDN:
Series 1995 D, 3.45%, LOC Societe Generale 8,100,000 8,100,000
Series 1995 E, 3.45%, LOC Canadian Imperial Bank 4,900,000 4,900,000
New York State Med. Care Facs. Fin. Agcy. Participating VRDN,
Series PA-89, 3.55%
(Liquidity Facility Merrill Lynch & Co.) (c) 4,000,000 4,000,000
New York State Mtg. Agcy. Participating VRDN (b)(c):
Series PA-29, 3.70%
(Liquidity Facility Merrill Lynch & Co.) 6,000,000 6,000,000
Series PA-87, 3.70%
(Liquidity Facility Merrill Lynch & Co.) 3,200,000 3,200,000
Series PT-11, 3.70% (Liquidity Facility Commerzbank) 2,485,000
2,485,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Mtg. Agcy. Participating VRDN (b)(c): - continued
Series PT-15 A, 3.70%
(Liquidity Facility Commerzbank) $ 4,500,000 $ 4,500,000
Series PT-15 B, 3.70%
(Liquidity Facility Facility Commerzbank) 4,100,000 4,100,000
Series PT-26, 3.65% (Liquidity Facility Credit Suisse) 2,580,000
2,580,000
New York State Pwr. Auth. Rev.:
CP:
3.80% 8/12/96 1,800,000 1,800,000
3.60% 8/13/96 2,200,000 2,200,000
Bonds, 3.25%, tender 9/1/96 2,200,000 2,200,000
Niagara County BAN 4.75% 7/18/97 1,612,200 1,622,616
Northport-East Northport Unified Free School Dist.:
BAN 4.50% 6/30/97 1,175,000 1,180,153
TAN 4.50% 6/30/97 4,700,000 4,723,093
Onondaga County BAN 4% 3/28/97 900,000 901,414
Oswego County Ind. Dev. Agcy. Poll. Cont. Rev.
(Phillip Morris Co. Proj.) 3.60%, VRDN 3,000,000 3,000,000
Oswego County Ind. Dev. Auth. Ind. Dev. Rev.
(Engraph Inc. Proj.) Series 1989, 3.70%,
LOC SunTrust Bank, VRDN (b) 5,620,000 5,620,000
Oyster Bay BAN 4.25% 7/11/97 9,100,000 9,119,598
Plainview-Old Bethpage Central School Dist. TAN:
4.25% 6/30/97 500,000 500,645
4.50% 6/30/97 1,400,000 1,405,526
Riverhead Central School Dist. BAN 4% 12/6/96 1,000,000 1,001,319
Rochester Gen. Oblig.:
BAN 4.50% 10/31/96 7,400,000 7,412,804
Bonds Series A, 4.25% 9/15/96 3,720,000 3,724,476
Rockland County Ind. Dev. Agcy. Rev.
(INSL-X Prod. Corp. Proj.) Series 1990, 3.55%,
LOC Bank of New York, VRDN (b) 3,050,000 3,050,000
St. Lawrence County Ind. Dev. Agcy. Envir. Impt. Rev.
(Reynolds Metals Proj.) 3.55%,
LOC Royal Bank of Canada, VRDN 5,300,000 5,300,000
Schenectady Ind. Dev. Agcy. Rev.
(Super Steel Schenectady Proj.) Series 1996 A, 3.60%,
LOC Key Bank of New York, VRDN 2,300,000 2,300,000
Southampton BAN 3.75% 2/14/97 500,000 501,041
South Huntington Unified School Dist. TAN 4.50% 6/30/97 3,950,000
3,969,209
Suffolk County Gen. Oblig. Bonds 5% 7/15/97 (d) 1,500,000 1,512,060
Suffolk County Gen Oblig. TAN 4.50% 9/12/96 9,000,000 9,006,707
Suffolk County Ind. Dev. Agcy. (Suffolk Child Dev. Ctr. Proj.)
Series 1989, 3.50%, LOC Barclays Bank, VRDN 900,000 900,000
Suffolk County Ind. Dev. Agcy. Ind. Dev. Rev.
(Nissequogue Cogen. Partner Fac.) 3.50%,
LOC Toronto-Dominion Bank, VRDN (b) 21,500,000 21,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Tompkins BAN:
4% 4/11/97 (b) $ 1,000,000 $ 1,002,003
4% 4/11/97 1,800,000 1,804,816
Tonawanda BAN 4.25% 5/8/97 800,000 803,071
Triborough Bridge & Tunnel Auth. Bonds
Series CR-132, 3.45%, tender 8/15/96 (MBIA Insured)
(Liquidity Facility Citibank) (c)(d) 5,410,000 5,410,000
Triborough Bridge & Tunnel Auth. Participating VRDN,
Series BT-184, 3.50%
(Liquidity Facility Bankers Trust Company) (c) 3,420,000 3,420,000
Ulster County TAN 4.25% 3/26/97,
LOC State Street Bank & Trust Company 4,000,000 4,012,416
Washington County BAN 4.25% 4/25/97 1,574,000 1,578,985
Williamsville Central School Dist. BAN 3.57% 1/24/97 655,000 655,212
634,660,877
NEW YORK & NEW JERSEY - 5.2%
New York & New Jersey Port Auth. Rev.:
Series 1991, 3.952%, VRDN (b) 9,800,000 9,800,000
Series 1992, 3.53%, VRDN 9,600,000 9,600,000
Series 1995, 3.53%, VRDN (b) 13,200,000 13,200,000
Series A, 2.90% 8/8/96
(Liquidity Facility Bank of Nova Scotia) CP (b) 2,400,000 2,400,000
35,000,000
TOTAL INVESTMENTS - 100% $ 669,660,877
Total Cost for Income Tax Purposes $ 660,660,877
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
3. Provides evidence of ownership in one or more underlying municipal
bonds.
4. Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
5. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
ACQUISITION ACQUISITION
SECURITY DATE COST
New York State Energy
Research & Dev. Auth.
Bonds Series 943026
3.25%, tender 8/1/96
(Liquidity Facility Citibank)
7/1/96 $ 6,200,000
INCOME TAX INFORMATION
At January 31, 1996, the fund had a capital loss carryforward of
approximately $71,730 of which $20, $20,930 and $50,780 will expire on
January 31, 2000, 2001, and 2002, respectively.
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value - $ 669,660,877
See accompanying schedule

Cash 44,287

Receivable for investments sold 13,306,806

Interest receivable 4,802,702

TOTAL ASSETS 687,814,672

LIABILITIES

Payable for investments purchased

Delayed delivery $ 1,515,393

Regular delivery 1,202,911

Distributions payable 26,565

Accrued management fee 292,047

TOTAL LIABILITIES 3,036,916

NET ASSETS $ 684,777,756

Net Assets consist of:

Paid in capital $ 684,878,170

Accumulated net realized gain (loss) on investments (100,414)

NET ASSETS, for 684,861,219 shares outstanding $ 684,777,756

NET ASSET VALUE, offering price and redemption price $1.00
per share ($684,777,756 (divided by) 684,861,219 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1996 (UNAUDITED)

INTEREST INCOME $ 11,920,919

EXPENSES

Management fee $ 1,719,010

Non-interested trustees' compensation 1,533

Total expenses before reductions 1,720,543

Expense reductions (37,854) 1,682,689

NET INTEREST INCOME 10,238,230

NET REALIZED GAIN (LOSS) ON INVESTMENTS (28,681)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 10,209,549

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JULY 31, JANUARY 31,
1996 1996
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 10,238,230 $ 20,622,160
Net interest income

Net realized gain (loss) (28,681) 1,418

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 10,209,549 20,623,578
FROM OPERATIONS

Distributions to shareholders from net interest income (10,238,230) (20,622,160)

Share transactions at net asset value of $1.00 per share 335,030,519 645,609,341
Proceeds from sales of shares

Reinvestment of distributions from net interest income 10,057,025 20,129,073

Cost of shares redeemed (336,756,118) (559,973,142)

NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 8,331,426 105,765,272
RESULTING FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 8,302,745 105,766,690

NET ASSETS

Beginning of period 676,475,011 570,708,321

End of period $ 684,777,756 $ 676,475,011

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31, NINE YEAR ENDED
ENDED JULY 31, MONTHS APRIL 30,
1996 ENDED
JANUARY 31,

(UNAUDITED) 1996 1995 1994 1993 1992

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

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

Income from .015 .034 .025 .020 .018 .037
Investment
Operations
Net interest
income

Less (.015) (.034) (.025) (.020) (.018) (.037)
Distributions
From net
interest
income

Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000

end of period

TOTAL RETURN B 1.49% 3.46% 2.56% 1.99% 1.85% 3.78%

RATIOS AND SUPPLEMENTAL
DATA

Net assets, end $ 684,778 $ 676,475 $ 570,708 $ 462,124 $ 453,812 $ 474,990
of period
(000 omitted)

Ratio of .50% A .50% .50% .50% .50% .37%
expenses to A D
average net
assets

Ratio of .49% A, .50% .50% .50% .50% .37%
expenses to C A
average net
assets after
expense
reductions

Ratio of net 2.98% A 3.41% 2.55% 1.97% 2.43% 3.71%
interest A
income to
average net
assets

</TABLE>

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan New York Municipal Income Fund (the income fund) and Spartan New
York Intermediate Municipal Income Fund (the intermediate fund) are funds
of Fidelity Municipal Trust. Spartan New York Municipal Money Market Fund
(the money market fund) is a fund of Fidelity 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
Municipal Trust and Fidelity 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 financial statements have been prepared in conformity with
generally accepted accounting principles which permit management to make
certain estimates and assumptions at the date of the financial statements.
The following summarizes the significant accounting policies of the income
fund, the intermediate fund and the money market fund:
SECURITY VALUATION.
INCOME 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 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.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Distributions to shareholders from realized capital gains on investments,
if any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options transactions, market discount, losses deferred due to wash
sales and futures and options and excise tax regulations. Permanent book
and tax basis differences relating to shareholder distributions will result
in reclassifications to paid in capital and may affect the per-share
allocation between net interest income and realized and unrealized gain
(loss). Any taxable gain remaining at fiscal year end is distributed in the
following year.
REDEMPTION FEES. Shares held in the income fund less than 180 days are
subject to a redemption fee equal to .50% of the proceeds of the redeemed
shares. The fee, which is retained by the fund, is accounted for as an
addition to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The
market value of the securities purchased or sold on a when-issued or
forward commitment basis are identified as such in the fund's schedule of
investments. Each fund may receive compensation for interest forgone in the
purchase of a delayed delivery security. Losses may arise due to changes in
the market value of the underlying securities or if the counterparty does
not perform under the contract.
FUTURES CONTRACTS AND OPTIONS. The income and intermediate funds may use
futures and options contracts to manage its exposure to the bond market and
to fluctuations in interest rates. Buying futures, writing puts, and buying
calls tend to increase the fund's exposure to the underlying instrument.
Selling futures, buying puts, and writing calls tend to decrease the fund's
exposure to the underlying instrument, or hedge other fund investments.
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.
2. OPERATING POLICIES - CONTINUED
FUTURES CONTRACTS AND OPTIONS - CONTINUED
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 $6,200,000 or
0.9% of net assets for the money market fund.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $79,195,757 and $84,005,445, respectively.
The market value of futures contracts opened and closed during the period
amounted to $920,073 and $1,797,855, respectively.
INTERMEDIATE FUND. Purchases and sales of securities, other than short-term
securities, aggregated $6,560,911 and $6,097,895, 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 income, 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
$1,985, $599 and $5,644 for the income, intermediate and money market
funds, respectively.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect.
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 .40% to .55% of
average net assets and the reimbursement reduced expenses by $13,790.
Effective April 1, 1996, the intermediate fund's expense limitation was
eliminated.
In addition, FMR has entered into arrangements on behalf of each fund with
the funds' custodian and transfer agent whereby interest earned on
uninvested cash balances was used to offset a portion of each fund's
expenses. During the period, each fund's custodian and transfer agent fees
were reduced by $8,707 and $10,220, $2,089 and $231 and $3,082 and $34,772
for the income, intermediate and money market funds, respectively, under
these arrangements.
TO CALL FIDELITY

FOR FUND INFORMATION AND QUOTES
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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-
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* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
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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
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TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER,
MONEY MARKET FUND
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning Jr., Vice President
Norman Lind, Vice President -
INCOME FUND
Janice Bradburn, Vice President -
MONEY MARKET FUND
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant
Treasurer - MONEY MARKET FUND
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 *
ADVISORY BOARD
William O. McCoy
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
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AUTOMATED LINES FOR QUICKEST SERVICE

FIDELITY

(registered trademark)
NEW YORK
MUNICIPAL
FUNDS

SEMIANNUAL REPORT
JULY 31, 1996
CONTENTS

CHECK PAGE NUMBERS !!!

<TABLE>
<CAPTION>
<S> <C> <C>
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING
STRATEGIES

FIDELITY NEW YORK MUNICIPAL INCOME FUND

4 PERFORMANCE

7 FUND TALK: THE MANAGER'S OVERVI
EW

10 INVESTMENT CHANGES

11 INVESTMENTS

19 FINANCIAL STATEMENTS

FIDELITY NEW YORK INSURED MUNICIPAL INCOME FUND

23 PERFORMANCE

26 FUND TALK: THE MANAGER'S OVERVI
EW

29 INVESTMENT CHANGES

30 INVESTMENTS

37 FINANCIAL STATEMENTS

FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND

41 PERFORMANCE

43 FUND TALK: THE MANAGER'S OVERVI
EW

45 INVESTMENT CHANGES

46 INVESTMENTS

54 FINANCIAL STATEMENTS

NOTES 58 NOTES TO THE FINANCIAL STATEMENTS

</TABLE>

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 10 years total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1996 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

Fidelity New York Municipal Income -0.80% 6.89% 43.69% 109.15%

Lehman Brothers New York 4 Plus Year -0.32% 7.07% n/a n/a
Municipal Bond Index

New York Municipal Debt Funds Average -0.93% 5.90% 41.99% 103.23%

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 New
York 4 Plus Year Municipal Bond Index, which is a total return performance
benchmark for New York investment-grade municipal bonds with maturities of
at least four years. To measure how the fund's performance stacked up
against its peers, you can compare it to the New York municipal debt funds
average, which reflects the performance of 99 mutual funds with similar
objectives tracked by Lipper Analytical Services, Inc. over the past six
months. Both benchmarks reflect reinvestment of dividends and capital
gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Fidelity New York Municipal Income 6.89% 7.52% 7.66%

Lehman Brothers New York 4 Plus Year 7.07% n/a n/a
Municipal Bond Index

New York Municipal Debt Funds Average 5.90% 7.25% 7.31%

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
IMAHDR PRASUN SHR__CHT 19960731 19960820 104456 S00000000000001
NY Muni Income LB Municipal Bond
00071 LB015
1986/07/31 10000.00 10000.00
1986/08/31 10457.12 10447.70
1986/09/30 10447.43 10473.92
1986/10/31 10696.09 10654.81
1986/11/30 10875.39 10865.88
1986/12/31 10880.96 10835.89
1987/01/31 11144.23 11162.16
1987/02/28 11239.63 11217.08
1987/03/31 11155.63 11098.18
1987/04/30 10418.78 10541.27
1987/05/31 10325.58 10488.98
1987/06/30 10494.13 10796.94
1987/07/31 10628.78 10907.07
1987/08/31 10663.00 10931.61
1987/09/30 10062.46 10528.56
1987/10/31 10192.52 10565.83
1987/11/30 10395.22 10841.71
1987/12/31 10619.12 10999.02
1988/01/31 11096.16 11390.81
1988/02/29 11216.37 11511.21
1988/03/31 10922.63 11377.68
1988/04/30 10966.69 11464.15
1988/05/31 11021.04 11431.02
1988/06/30 11213.17 11598.25
1988/07/31 11287.19 11673.87
1988/08/31 11322.18 11684.14
1988/09/30 11558.88 11895.63
1988/10/31 11829.23 12104.99
1988/11/30 11703.70 11994.11
1988/12/31 11884.78 12116.81
1989/01/31 12026.45 12367.38
1989/02/28 11931.07 12226.27
1989/03/31 11908.45 12197.05
1989/04/30 12261.60 12486.61
1989/05/31 12479.35 12745.96
1989/06/30 12655.64 12919.05
1989/07/31 12769.28 13094.88
1989/08/31 12701.65 12966.68
1989/09/30 12647.58 12928.04
1989/10/31 12718.05 13086.15
1989/11/30 12900.84 13315.15
1989/12/31 12987.92 13424.07
1990/01/31 12916.02 13360.58
1990/02/28 13001.28 13479.48
1990/03/31 12967.71 13483.53
1990/04/30 12828.24 13385.91
1990/05/31 13116.96 13678.12
1990/06/30 13292.67 13798.35
1990/07/31 13515.05 14001.19
1990/08/31 13292.31 13797.89
1990/09/30 13290.01 13805.76
1990/10/31 13368.32 14056.19
1990/11/30 13607.13 14338.86
1990/12/31 13649.25 14401.24
1991/01/31 13834.43 14594.50
1991/02/28 13922.04 14721.47
1991/03/31 13988.11 14726.77
1991/04/30 14186.87 14922.64
1991/05/31 14288.79 15055.30
1991/06/30 14330.72 15040.40
1991/07/31 14555.58 15223.59
1991/08/31 14733.62 15424.08
1991/09/30 14986.73 15624.90
1991/10/31 15140.60 15765.53
1991/11/30 15206.94 15809.51
1991/12/31 15475.87 16148.79
1992/01/31 15341.97 16185.61
1992/02/29 15407.58 16190.79
1992/03/31 15429.77 16196.78
1992/04/30 15577.14 16340.93
1992/05/31 15816.62 16533.26
1992/06/30 16130.43 16810.69
1992/07/31 16631.44 17314.67
1992/08/31 16416.92 17145.85
1992/09/30 16514.46 17257.99
1992/10/31 16257.32 17088.34
1992/11/30 16632.59 17394.39
1992/12/31 16865.31 17571.99
1993/01/31 17072.61 17776.35
1993/02/28 17740.08 18419.32
1993/03/31 17550.31 18224.63
1993/04/30 17727.66 18408.52
1993/05/31 17840.42 18511.97
1993/06/30 18143.13 18820.94
1993/07/31 18159.46 18845.59
1993/08/31 18576.75 19237.96
1993/09/30 18770.16 19457.08
1993/10/31 18784.99 19494.63
1993/11/30 18585.16 19322.88
1993/12/31 19040.13 19730.79
1994/01/31 19241.50 19956.12
1994/02/28 18669.79 19439.25
1994/03/31 17712.64 18647.69
1994/04/30 17856.57 18805.82
1994/05/31 18049.96 18968.87
1994/06/30 17829.48 18852.97
1994/07/31 18205.93 19198.54
1994/08/31 18276.95 19264.97
1994/09/30 17912.98 18982.16
1994/10/31 17488.56 18645.03
1994/11/30 16951.58 18307.93
1994/12/31 17514.18 18710.89
1995/01/31 18129.39 19245.65
1995/02/28 18751.29 19805.31
1995/03/31 18966.64 20032.87
1995/04/30 19003.74 20056.51
1995/05/31 19690.27 20696.52
1995/06/30 19449.79 20516.46
1995/07/31 19567.26 20710.95
1995/08/31 19850.33 20973.57
1995/09/30 19953.35 21106.33
1995/10/31 20324.17 21413.22
1995/11/30 20707.54 21768.46
1995/12/31 20941.86 21977.66
1996/01/31 21082.37 22143.59
1996/02/29 20863.75 21994.12
1996/03/31 20552.39 21713.03
1996/04/30 20487.94 21651.59
1996/05/31 20477.50 21642.92
1996/06/30 20736.42 21878.62
1996/07/31 20914.53 22077.71
IMATRL PRASUN SHR__CHT 19960731 19960820 104502 R00000000000123

$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity New York Municipal Income Fund on July 31, 1986. As the chart
shows, by July 31, 1996, the value of the investment would have grown to
$20,915 - a 109.15% increase on the initial investment. For comparison,
look at how the Lehman Brothers Municipal Bond Index, which reflects the
performance of the investment-grade municipal bond market, did over the
same period. With dividends reinvested, the same $10,000 would have grown
to $22,080 - a 120.80% increase.

UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. Bond prices, for
example, generally 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 YEARS ENDED JANUARY 31,
MONTHS
ENDED
JULY 31,

1996 1996 1995 1994 1993 1992

Dividend return 2.53% 5.93% 5.27% 5.78% 6.74% 6.95%

Capital appreciation
return -3.33% 10.36% -11.05% 6.92% 4.54% 3.95%

Total return -.80% 16.29% -5.78% 12.70% 11.28% 10.90%
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, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.37(cents) 31.45(cents) 63.30(cents)

Annualized dividend rate 5.26% 5.21% 5.20%

30-day annualized yield 5.07% - -

30-day annualized tax-equivalent yield 8.96% - -

</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 $12.02 over
the past month, $12.11 over the past six months and $12.17 over the past
year, you can compare the fund's income over these three periods. Dividends
per share show the income paid by the fund for a set period and do not
reflect any tax reclassifications. 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 43.41%
combined effective 1996 federal, state and New York City tax bracket, but
does not reflect the payment of the alternative minimum tax if applicable.
FIDELITY NEW YORK MUNICIPAL INCOME FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Norm Lind, Portfolio Manager of Fidelity New York
Municipal Income Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. For the six months ended July 31, 1996, the fund had a total return of
- -0.80%. That was slightly better than the New York municipal debt funds
average, as tracked by Lipper Analytical Services, which had a total return
of -0.93%. The Lehman Brothers New York 4 Plus Year Municipal Bond Index
had a total return of -0.32% over the same period. For the 12 months ended
July 31, 1996, the fund returned 6.89%, while the Lipper average and the
index returned 5.90% and 7.07% respectively.
Q. AFTER THE STRONG PERFORMANCE OF THE MUNICIPAL MARKET DURING 1995, HOW
WOULD YOU CHARACTERIZE THE INVESTING ENVIRONMENT IN 1996?
A. It's been a pretty choppy market so far this year. Coming into December
and January, there were real concerns in the muni market about the
potential for tax reform and, more specifically, for a flat tax. That made
investors wary of the municipal market, since those proposals posed a
possible threat to the favorable tax treatment of municipal bonds. As a
result, municipal bond prices fell, and yields were pushed up close to
historically high levels compared to U.S. Treasury yields. As the year wore
on, however, and no concrete proposals emerged as rallying points for
serious reform, buyers gradually returned to the municipal market.
Q. BUT THEN THE ECONOMY'S UNEXPECTED STRENGTH DEALT ANOTHER BLOW TO THE
MARKET IN THE SPRING . . .
A. That's right. When employment numbers came out that suggested the
economy was far stronger than people had anticipated, interest rates rose
fairly sharply. But partly because the municipal market had already been
through a rough patch earlier in the year, municipals fared relatively well
compared to other fixed-income investments. After the initial shock of
higher rates, municipals have recovered somewhat over the past few months
and, despite their negative short-term results, were among the
better-performing income-oriented investments.
Q. HOW DID THAT BACKDROP TRANSLATE TO THE NEW YORK MUNICIPAL MARKET?
A. In New York, the story has been the budget. That holds true for both the
state and the city. New York state was extremely late in getting a budget
deal finalized - the budget was due on April 1, and it wasn't finished
until mid-July. As you can imagine, that uncertainty had quite an impact on
the New York municipal market. What you might not imagine, though, is that
the result was strong relative performance by some New York issues.
Q. WHY WAS THAT?
A. It was mainly because of the limited supply of New York bonds out in the
marketplace as a result of the lack of a budget agreement. You see, without
a completed budget, the state could not issue significant new debt.
However, the situation was not as dramatic as last year, when the
legislature nearly let the state government shut down. This year, it
continued to pass bills to let the government continue operations and, most
importantly, guarantee that debt service would continue to be paid.
Q. WHAT OTHER FACTORS HELPED THE FUND OVER THE PAST SIX MONTHS?
A. Once again, the fund's structure played an important role. As I've
mentioned in previous reports, I've been a buyer of premium, non-callable
bonds. The non-callability can provide upside potential, since the bond
can't be redeemed by the issuer when rates fall, while the premium - or
above-par - price gives the bond de minimus protection. That means that the
bond is protected from unfavorable tax treatment that can occur during
particular market environments. That structure hurt the fund somewhat as
rates rose, although as the market has recovered, so have those types of
bonds.
Q. WAS THERE ANYTHING ELSE THAT PROVED DISAPPOINTING OVER THE PERIOD?
A. Yes, I'd have to say that the fund's underweighting in New York City
bonds was one of my biggest disappointments during this period. I believed
that the state budget process would be every bit as difficult as it turned
out to be, but I also thought there would be more of a negative impact on
the city's bonds. In retrospect, it would have helped the fund's
performance to have weighted the portfolio more heavily in the city's
bonds.
Q. NORM, WE UNDERSTAND THERE WERE SOME INVESTMENT POLICY CHANGES . . .
A. As of June 24, 1996, the fund reserves the right to invest up to 5% of
its assets - down from one-third - in below-investment-grade securities.
The fund does not intend to seek out the lower-quality,
below-investment-grade bonds. Instead, this change helps the fund maintain
a degree of flexibility under unusual circumstances. Further, Fidelity now
uses two additional agencies to determine the credit quality of the fund's
bonds. Ratings from Duff & Phelps Rating Co. and Fitch Investors Service,
L.P., are being employed, along with those from Moody's Investors Service
and Standard & Poor's which Fidelity had been using previously.
Q. LOOKING AHEAD, NORM, WHAT DO YOU SEE ON THE HORIZON FOR THE NEW YORK
MUNICIPAL MARKET?
A. I think some cautious optimism is in order right now. The level of
municipal yields, as a percentage of Treasury yields, is at the lower end
of its historical range. That suggests that municipals are at fair to
slightly high levels. Another reason for a bit of caution is that we could
see renewed talk of tax reform as we head into the heat of the campaign
season. Given all of that, I believe that the fund's structure is on target
for providing value over the long term, and I intend to maintain its
emphasis in the premium, non-callable area.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF JULY 31, 1996
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO

General Obligation 33.0 33.3

Transportation 16.4 15.7

Special Tax 13.1 9.8

Water & Sewer 8.9 10.3

Escrowed/Pre-Refunded 7.6 8.2

AVERAGE YEARS TO MATURITY AS OF JULY 31, 1996
6 MONTHS AGO

Years 15.5 14.2

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, 1996
6 MONTHS AGO

Years 8.0 7.8

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. BEGINNING
WITH THE REPORTING CYCLE OF JUNE, 1996, THE MODEL USED TO CALCULATE
DURATIONS MAY BE SLIGHTLY MODIFIED IN ORDER TO FURTHER REFINE THIS
INFORMATION. THESE CHANGES IN METHODOLOGY MAY PRODUCE ADJUSTMENTS IN
HISTORICAL DURATION FIGURES.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF JULY 31, 1996 AS OF JANUARY 31, 1996
Aaa 31.2%
Aa, A 38.9%
Baa 27.9%
Non-rated 0.7%
Short-term
investments 1.3%
Aaa 34.9%
Aa, A 32.5%
Baa 26.6%
Non-rated 0.7%
Short-term
investments 5.3%
Row: 1, Col: 1, Value: 31.2
Row: 1, Col: 2, Value: 36.9
Row: 1, Col: 3, Value: 27.9
Row: 1, Col: 4, Value: 1.5
Row: 1, Col: 5, Value: 2.5
Row: 1, Col: 1, Value: 34.9
Row: 1, Col: 2, Value: 32.0
Row: 1, Col: 3, Value: 26.6
Row: 1, Col: 4, Value: 1.5
Row: 1, Col: 5, Value: 5.0
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 MUNICIPAL INCOME FUND

INVESTMENTS JULY 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 98.7%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - 88.2%
Erie County Series Gen. Oblig. Rev. Series B:
5.5% 6/15/14 (FGIC Insured) Aaa $ 1,500,000 $ 1,466,250
5.625% 6/15/20 (FGIC Insured) Aaa 1,000,000 977,500
Erie County Wtr. Auth. Impt. & Extension
Rev. 3rd Series, 6.10% 12/1/04
(Escrowed to Maturity) (c) A 2,000,000 2,137,500
Franklin County Ctfs. of Prtn. (Court House
Redev. Proj.) 8.125% 8/1/06 BBB- 840,000 919,800
Monroe County:
6% 6/1/05 Aa 2,155,000 2,305,850
6.50% 6/1/06 Aa 3,745,000 4,128,863
New York City Gen. Oblig.:
Rfdg. Series B, 5.70% 8/15/02 Baa1 1,170,000 1,172,925
Series A, 7% 8/1/03 Baa1 2,000,000 2,145,000
Series B:
6.75% 8/15/03 (AMBAC Insured) Aaa 12,000,000 13,305,000
7.75% 2/1/06 Baa1 5,000,000 5,406,250
Sub-Series B-1, 7.2% 8/15/08 Baa1 1,000,000 1,071,250
Series C, 6.4% 8/1/03 Baa1 2,000,000 2,077,500
Series H:
7% 2/1/05 Baa1 2,000,000 2,125,000
7% 2/1/06 Baa1 3,500,000 3,705,625
New York City Hsg. Dev. Corp. Mtg. Rev.
(Multi-Family Hsg.) Series A, 8.125% 1/1/19
(GNMA Coll.) AA 4,115,000 4,244,623
New York City Ind. Dev. Agcy. Spl. Facs. Rev.
(American Airlines Inc. Proj.) 6.90% 8/1/24 Baa2 8,000,000 8,310,000
New York City Muni. Assistance Corp.:
Series D 6% 7/1/05 (AMBAC Insured) Aaa 3,000,000 3,217,500
6% 7/1/03 Aa 1,000,000 1,058,750
6% 7/1/04 Aa 4,835,000 5,155,319
6% 7/1/05 Aa 4,215,000 4,494,244
6% 7/1/06 Aa 1,000,000 1,063,750
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 1,392,188
7% 6/15/09
(Pre-refunded to 6/15/01 @ 101) (c) A 2,525,000 2,796,438
7.375% 6/15/09
(Pre-refunded to 6/15/99 @ 101.5) (c) A 1,850,000 2,028,063
7% 6/15/09 A 2,475,000 2,713,219
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev.: - continued
Series 1994 A, 7.1% 6/15/12 A $ 1,000,000 $ 1,083,750
7% 6/15/16 (FGIC Insured)
(Pre-refunded to 6/15/01 @ 101.5) (c) Aaa 500,000 556,875
5.875% 6/15/26 A 13,800,000 13,524,000
New York Metropolitan Trans. Auth.:
(Contract Trans. Facs.):
Rfdg. Series 5, 6.90% 7/1/05 Baa1 2,600,000 2,785,250
Rfdg. Series 7, 5.45% 7/1/07 Baa1 1,700,000 1,657,500
Rfdg. Series K:
6.30% 7/1/06 (MBIA Insured) Aaa 5,000,000 5,450,000
6.30% 7/1/07 (MBIA Insured) - 5,000,000 5,481,250
Series 3, 7.375% 7/1/08 Baa1 1,830,000 2,051,888
(Contract Commuter Facs.):
Series 3, 7.375% 7/1/08 Baa1 5,400,000 6,054,750
Series A:
6.10% 7/1/21 (FSA Insured) Aaa 2,500,000 2,531,250
6.10% 7/1/26 (FSA Insured) Aaa 3,250,000 3,282,500
7.5% 7/1/19 (Escrowed to Maturity) (c) Aaa 1,250,000 1,396,875
New York State Dorm. Auth. Lease Rev.:
(State Univ. Dorm. Facs.):
6% 7/1/03 (AMBAC Insured) Aaa 5,370,000 5,719,050
6% 7/1/05 (AMBAC Insured) Aaa 1,000,000 1,066,250
5.30% 7/1/24 (AMBAC Insured) Aaa 6,650,000 6,184,500
New York State Dorm. Auth. Rev.:
Rfdg.:
Series C:
6% 7/1/03 (AMBAC Insured) Aaa 5,895,000 6,278,175
8.20% 7/1/14 Baa1 1,000,000 1,078,750
Series 1988 D, 8.20% 7/1/12 Baa1 1,260,000 1,365,525
(Cornell Univ.) 5.40% 7/1/14 Aa 1,065,000 1,038,375
Rfdg. (State Univ. Edl. Facs.):
Series A:
6.50% 5/15/05 Baa1 4,600,000 4,893,250 5.50% 5/15/13 Baa1
1,250,000 1,184,375
5.25% 5/15/15 Baa1 10,055,000 9,150,050
Series B:
5.25% 5/15/05 Baa1 2,250,000 2,196,563
7.50% 5/15/11 Baa1 1,445,000 1,665,363
7.375% 5/15/14 Baa1 275,000 299,063
(Colgate Univ.):
6% 7/1/16 (MBIA Insured) Aaa 1,450,000 1,500,750
6% 7/1/21 (MBIA Insured) Aaa 2,500,000 2,581,250
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev.: - continued
(Columbia Univ.) Series A, 4.75% 7/1/14 Aaa $ 6,790,000 $ 6,009,150
(Crouse Irving Mem. Hosp.) 10.50% 7/1/17
(HIB Insured) A+ 750,000 772,688
(Judicial Facs. Lease) Series B, 7% 4/15/16 Baa1 2,000,000 2,122,500
(Mental Health Svc. Fac. Impt.)
5.125% 8/15/21 (MBIA Insured) Aaa 2,000,000 1,812,500
(New York City Univ. Sys. Consolidated)
Series D, 7% 7/1/09 Baa1 6,000,000 6,600,000
2nd Series A, 5.75% 7/1/07 Baa1 2,000,000 2,002,500
New York State Dorm. Auth. Rev. Crossover Rfdg.
(City Univ. Sys.) Series D, 5.75% 7/1/12 Baa1 4,230,000 4,118,963
New York State Energy Research & Dev. Auth.
Facs. Rev. Rfdg. (Consolidated Edison Co.)
Series A, 6.10% 8/15/20 A1 10,500,000 10,500,000
New York State Envir. Facs. Corp. Poll. Cont. Rev.
(State Wtr. Revolving Fund):
(City Proj.) Series A, 7% 6/15/12 Aa 3,000,000 3,285,000
(Pooled Loan) Series B, 5.20% 5/15/14 - 2,220,000 2,109,000
Series D:
6.10% 5/15/03 Aaa 2,240,000 2,410,800
6.20% 11/15/04 Aaa 1,250,000 1,362,500
6.40% 11/15/06 Aaa 1,840,000 2,026,300
Series E, 6.50% 6/15/14 Aa 3,500,000 3,705,625
New York State Hsg. Fin. Agcy. Rev. (St. John
Village Proj.) Section 8, 8.25% 5/1/09 A 5,310,000 5,369,578
New York State Local Govt. Assistance Corp.:
Rfdg. Series C, 5.50% 4/1/17 A 15,400,000 14,976,500
Rfdg. Series E:
5.25% 4/1/16 A 4,500,000 4,246,875
5% 4/1/21 A 7,440,000 6,723,900
Series B, 6% 4/1/18 A 7,000,000 7,000,000
New York State Med. Care Facs.:
8.875% 8/15/07 Baa1 4,225,000 4,476,007
7.875% 8/15/20 Baa1 1,210,000 1,334,025 7.5% 2/15/21 Baa1 135,000
149,006
New York State Med. Care Facs. Fin. Agcy.
Special Oblig. (Mental Health Care Svcs.
Facs. Impt.) Series A, 8.40% 5/1/06
(Escrowed to maturity) (c) Aaa 1,000,000 1,255,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) 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 $ 3,675,000
Rfdg. (Presbyterian Hosp.) Series A,
5.25% 8/15/14 Aa 3,000,000 2,775,000
(Hosp. & Nursing Home) (Richland Hosp.)
Series B, 9.125% 2/15/25
(FHA Guaranteed) (e) AA 1,380,000 1,413,824
New York State Mtg. Agcy. Rev. (Homeowner
Mtg.) Series 53, 5.90% 10/1/17 Aa 2,000,000 1,975,000
New York State Pwr. Auth. Rev. & Gen. Purp.
Series CC, 5.125% 1/1/11 (FGIC Insured) Aaa 7,000,000 6,781,250
New York State Tollway Auth. Hwy. & Bridge
Trust Fund:
Series A, 6.25% 4/1/04 (MBIA Insured) Aaa 4,340,000 4,708,900
Series B:
6% 4/1/03 (AMBAC Insured) Aaa 6,000,000 6,397,500
5.125% 4/1/15 (MBIA Insured) Aaa 4,425,000 4,131,844
New York State Tollway Auth. Svc. Contract
Rev. (Local Hwy. & Bridge) 7.25% 1/1/10
(Pre-refunded to 1/1/01 @ 102) (c) Baa1 2,500,000 2,787,500
New York State Urban Dev. Corp. Rev.:
(Clarkson Ctr. Loan Proj.) 7.80% 1/1/20
(Pre-refunded to 1/1/01 @ 102) (c) Baa1 4,100,000 4,668,875
(Correctional Cap. Facs.):
Series 1, 7.75% 1/1/14 - 1,000,000 1,117,500
Series 5, 5.90% 1/1/08 Baa1 1,455,000 1,433,175
(Onondaga County Convention Proj.):
7.875% 1/1/10 Aaa 3,000,000 3,431,250
7.875% 1/1/20
(Pre-refunded to 1/01/00 @ 102) (c) Aaa 2,250,000 2,573,438
North Hemstead Rfdg. Series B, 6.10% 4/1/06
(FGIC Insured) Aaa 2,000,000 2,155,000
Onondaga County Indl. Dev. Agy. Rev.
(Bristol-Meyers Squibb Co. Proj.)
5.75% 3/1/24 (d) Aaa 1,420,000 1,388,050
Oswego County Pub. Impt. Unltd. Tax:
6.70% 6/15/10 A 1,100,000 1,215,500
6.70% 6/15/11 A 1,100,000 1,218,250
6.70% 6/15/12 A 1,100,000 1,211,375
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Suffolk County Gen. Oblig., Series A,
6% 8/1/05 (AMBAC Insured) Aaa $ 3,380,000 $ 3,612,375
Suffolk County Wtr. Auth. Wtrwks. Rev.
5% 6/1/15 (MBIA Insured) Aaa 4,000,000 3,640,000
Syracuse Ind. Dev. Agcy. Civic Facs. Rev.
(St. Joseph's Hosp. Health Ctr. Proj.)
7.50% 6/1/18 Baa1 1,265,000 1,332,994
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 2,704,781
Tonawanda Hsg. Dev. Corp. 1st Lien Rev.
(Tonawanda Tower Proj.) Section 8:
10% 5/1/06 - 105,000 107,459
10% 5/1/07 - 130,000 133,045
10% 5/1/08 - 310,000 317,260
10% 5/1/09 - 340,000 347,963
10% 5/1/10 - 375,000 383,783
10% 5/1/11 - 410,000 419,602
10% 5/1/12 - 315,000 322,377
Triborough Bridge & Tunnel Auth. Rev.:
Rfdg. (Gen Purp):
Series A, 4.60% 1/1/04 Aa 2,940,000 2,877,525
Series Y, 6% 1/1/12 Aa 7,235,000 7,614,838
(Convention Ctr. Proj.) Series E:
7.25% 1/1/10 Baa1 2,000,000 2,245,000
6% 1/1/11 Baa1 2,500,000 2,500,000
Series R, 6% 1/1/20 Aaa 1,580,000 1,653,067
4.75% 1/1/14 Aa 1,685,000 1,501,756
5% 1/1/14 Aa 2,000,000 1,847,500
Watervliet Elderly Hsg. Corp.:
8% 11/15/00 - 95,000 97,380
8% 11/15/01 - 95,000 97,380
8% 11/15/02 - 100,000 102,438
8% 11/15/03 - 100,000 102,438
8% 11/15/04 - 95,000 97,316
8% 11/15/05 - 95,000 97,316
8% 11/15/06 - 100,000 102,438
8% 11/15/07 - 100,000 102,438
8% 11/15/08 - 100,000 102,438
8% 11/15/09 - 100,000 102,438
355,467,577
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - 5.6%
New York & New Jersey Port Auth.:
Consolidated 85th Series:
5.20% 9/1/15 A1 $ 3,800,000 $ 3,548,250
5.375% 3/1/28 A1 15,525,000 14,399,438
Consolidated 86th Series, 5.20 7/1/11 A1 2,910,000 2,851,800
Series 104, 4.75% 1/15/26 (AMBAC Insured) Aaa 2,000,000 1,687,500
22,486,988
PUERTO RICO - 4.9%
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Rev. Series X, 4.14% 8/30/96 Baa1 2,500,000 2,500,000
Puerto Rico Commonwealth Hwy. & Trans. Auth.
Hwy. Rev. Gen. Oblig.:
5% 7/1/36 Baa1 3,600,000 3,064,500
5.50% 7/1/36 Baa1 3,000,000 2,782,500
Puerto Rico Commonwealth Urban Renewal &
Hsg. Corp. Rfdg., 7.875% 10/1/04 Baa 6,270,000 6,904,838
Puerto Rico Tel. Auth. Rev. 7.065% 1/16/15
(MBIA Insured), INFL (f) Aaa 4,800,000 4,416,000
19,667,838
TOTAL MUNICIPAL BONDS
(Cost $387,546,338) 397,622,403
MUNICIPAL NOTES (A) - 1.3%
NEW YORK - 1.3%
Amherst Ind. Dev. Auth. Ind. Dev. Rev. (Maple
Dev. Proj.) Series 1986, 3.30%, LOC Marine
Midland Bank, VRDN (d) P-1 2,400,000 2,400,000
New York State Energy Research Dev. Auth.
Poll. Cont. Rev. (Niagra Mohawk Proj.)
Series 1986 A, 3.75%, LOC Toronto-
Dominion Bank, VRDN (d) P-1 2,800,000 2,800,000
TOTAL MUNICIPAL NOTES
(Cost $5,200,000) 5,200,000
TOTAL INVESTMENTS - 100%
(Cost $392,746,338) $ 402,822,403
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
21 Municipal Bond Contracts Sept. 1996 $ 2,357,440 $ 13,591
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.6%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
3. Security collateralized by an amount sufficient to pay interest and
principal.
4. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
5. 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 $1,285,760.
6. 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.
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 67.8% AAA, AA, A 69.0%
Baa 27.7% BBB 24.7%
Ba 0.0% BB 2.1%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
*Bond rating downgraded subsequent to acquisition date.
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:
General Obligation 33.0%
Transportation 16.4
Special Tax 13.1
Water & Sewer 8.9
Escrowed/Pre-refunded 7.6
Industrial Development 5.6
Others (individually less than 5%) 15.4
TOTAL 100.0%
INCOME TAX INFORMATION
At July 31, 1996, the aggregate cost of investment securities for income
tax purposes was $392,746,338. Net unrealized appreciation aggregated
$10,076,065, of which $13,843,978 related to appreciated investment
securities and $3,767,913 related to depreciated investment securities.
At January 31, 1996, the fund had a capital loss carryforward of
approximately $5,669,000 which will expire on January 31, 2004.
At January 31, 1996, the fund was required to defer $501,469 of losses on
futures contracts.

FIDELITY NEW YORK MUNICIPAL INCOME FUND

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $392,746,338) - $ 402,822,403
See accompanying schedule

Interest receivable 5,624,185

Receivable for daily variation on futures contracts 15,094

TOTAL ASSETS 408,461,682

LIABILITIES

Payable to custodian bank $ 140,500

Payable for fund shares redeemed 36,712

Distributions payable 362,200

Accrued management fee 133,091

Other payables and accrued expenses 79,265

TOTAL LIABILITIES 751,768

NET ASSETS $ 407,709,914

Net Assets consist of:

Paid in capital $ 403,995,807

Accumulated undistributed net realized gain (loss) (6,375,549)
on investments

Net unrealized appreciation (depreciation) on 10,089,656
investments

NET ASSETS, for 33,646,153 shares outstanding $ 407,709,914

NET ASSET VALUE, offering price and redemption price $12.12
per share ($407,709,914 (divided by) 33,646,153 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1996 (UNAUDITED)

INTEREST INCOME $ 11,791,936

EXPENSES

Management fee $ 813,306

Transfer agent, accounting and custodian fees and 362,800
expenses

Non-interested trustees' compensation 851

Registration fees 24,745

Audit 25,760

Legal 3,238

Miscellaneous 3,054

Total expenses before reductions 1,233,754

Expense reductions (1,417) 1,232,337

NET INTEREST INCOME 10,559,599

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 267,319

Futures contracts (379,558) (112,239)

Change in net unrealized appreciation (depreciation) on:

Investment securities (14,201,867)

Futures contracts (10,179) (14,212,046)

NET GAIN (LOSS) (14,324,285)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (3,764,686)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JANUARY 31,
JULY 31, 1996 1996
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 10,559,599 $ 22,095,138
Net interest income

Net realized gain (loss) (112,239) 2,257,651

Change in net unrealized appreciation (depreciation) (14,212,046) 38,620,075

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (3,764,686) 62,972,864
FROM OPERATIONS

Distributions to shareholders (10,621,652) (22,337,978)
From net interest income

From net realized gain (68,591) -

TOTAL DISTRIBUTIONS (10,690,243) (22,337,978)

Share transactions 26,932,673 111,567,868
Net proceeds from sales of shares

Reinvestment of distributions 8,400,687 17,664,509

Cost of shares redeemed (46,846,835) (130,423,114)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (11,513,475) (1,190,737)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (25,968,404) 39,444,149

NET ASSETS

Beginning of period 433,678,318 394,234,169

End of period (including undistributed net investment $ 407,709,914 $ 433,678,318
income of $0 and $62,053, respectively)

OTHER INFORMATION
Shares

Sold 2,218,960 9,306,254

Issued in reinvestment of distributions 693,638 1,460,706

Redeemed (3,858,545) (10,843,133)

Net increase (decrease) (945,947) (76,173)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, NINE MONTHS YEAR ENDED
ENDED ENDED APRIL 30,
JULY 31, 1996 JANUARY 31,

(UNAUDITED) 1996 1995 1994 C 1993 1992

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 12.540 $ 11.370 $ 13.050 $ 12.660 $ 12.100 $ 11.750

Income from Investment Operations .313 .635 .673 .714 .580 .773
Net interest income

Net realized and unrealized gain (loss) (.419) 1.177 (1.440) .850 .560 .350

Total from investment operations (.106) 1.812 (.767) 1.564 1.140 1.123

Less Distributions (.314) (.642) D (.673) (.714) (.580) (.773)
From net interest income

From net realized gain - - (.210) (.460) - -

In excess of net realized gain - - (.030) - - -

Total distributions (.314) (.642) (.913) (1.174) (.580) (.773)

Net asset value, end of period $ 12.120 $ 12.540 $ 11.370 $ 13.050 $ 12.660 $ 12.100

TOTAL RETURN B (.80)% 16.29% (5.78)% 12.70% 9.60% 9.80%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 407,710 $ 433,678 $ 394,234 $ 491,421 $ 445,506 $ 412,030

Ratio of expenses to average net assets .60% A .59% .58% .58% .61% A .61%

Ratio of expenses to average net assets after expense .60% A .58% .58% .58% .61% A .61%
reduction E

Ratio of net interest income to average net assets 5.17% A 5.26% 5.77% 5.45% 6.08% A 6.52%

Portfolio turnover rate 49% A 83% 34% 70% 45% A 30%

</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.
D THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES (SEE NOTE 1 OF NOTES TO FINANCIAL STATEMENTS).
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
FIDELITY NEW YORK INSURED MUNICIPAL INCOME FUND

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 10 years total returns would have been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED JULY 31, 1996 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

Fidelity New York Insured Municipal Income -0.81% 6.19% 41.80% 102.80%

Lehman Brothers New York Insured -0.39% 6.55% n/a n/a
Municipal Bond Index

New York Insured Municipal Funds Average -1.08% 5.79% 41.72% n/a
</TABLE>
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 New
York Insured Municipal Bond Index, which is a total return performance
benchmark for insured New York investment-grade municipal bonds with
maturities of at least one year. To measure how the fund's performance
stacked up against its peers, you can compare it to the New York insured
municipal bond funds average, which reflects the performance of 17 mutual
funds with similar objectives tracked by Lipper Analytical Services, Inc.
over the past six months. Both benchmarks reflect reinvestment of dividends
and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Fidelity New York Insured Municipal Income 6.19% 7.23% 7.33%

Lehman Brothers New York Insured 6.55% n/a n/a
Municipal Bond Index

New York Insured Municipal Funds Average 5.79% 7.22% n/a

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19960731 19960820 105825 S00000000000001
NY Insured Muni Income LB Municipal Bond
00095 LB015
1986/07/31 10000.00 10000.00
1986/08/31 10439.01 10447.70
1986/09/30 10418.86 10473.92
1986/10/31 10651.63 10654.81
1986/11/30 10837.79 10865.88
1986/12/31 10825.80 10835.89
1987/01/31 11073.35 11162.16
1987/02/28 11148.74 11217.08
1987/03/31 11019.87 11098.18
1987/04/30 10262.47 10541.27
1987/05/31 10143.67 10488.98
1987/06/30 10286.10 10796.94
1987/07/31 10400.35 10907.07
1987/08/31 10438.57 10931.61
1987/09/30 9857.86 10528.56
1987/10/31 10079.47 10565.83
1987/11/30 10308.71 10841.71
1987/12/31 10478.23 10999.02
1988/01/31 10989.64 11390.81
1988/02/29 11070.12 11511.21
1988/03/31 10737.08 11377.68
1988/04/30 10786.74 11464.15
1988/05/31 10803.16 11431.02
1988/06/30 10987.33 11598.25
1988/07/31 11046.06 11673.87
1988/08/31 11074.77 11684.14
1988/09/30 11307.42 11895.63
1988/10/31 11628.06 12104.99
1988/11/30 11441.96 11994.11
1988/12/31 11656.89 12116.81
1989/01/31 11808.13 12367.38
1989/02/28 11662.42 12226.27
1989/03/31 11637.45 12197.05
1989/04/30 11978.38 12486.61
1989/05/31 12234.23 12745.96
1989/06/30 12378.70 12919.05
1989/07/31 12477.65 13094.88
1989/08/31 12360.32 12966.68
1989/09/30 12303.87 12928.04
1989/10/31 12425.79 13086.15
1989/11/30 12655.35 13315.15
1989/12/31 12713.66 13424.07
1990/01/31 12639.63 13360.58
1990/02/28 12743.08 13479.48
1990/03/31 12768.38 13483.53
1990/04/30 12575.51 13385.91
1990/05/31 12907.07 13678.12
1990/06/30 13023.68 13798.35
1990/07/31 13250.21 14001.19
1990/08/31 13029.78 13797.89
1990/09/30 13041.14 13805.76
1990/10/31 13173.89 14056.19
1990/11/30 13441.33 14338.86
1990/12/31 13500.95 14401.24
1991/01/31 13660.79 14594.50
1991/02/28 13769.69 14721.47
1991/03/31 13792.53 14726.77
1991/04/30 13980.48 14922.64
1991/05/31 14116.30 15055.30
1991/06/30 14112.87 15040.40
1991/07/31 14301.90 15223.59
1991/08/31 14518.09 15424.08
1991/09/30 14683.46 15624.90
1991/10/31 14822.67 15765.53
1991/11/30 14858.14 15809.51
1991/12/31 15183.92 16148.79
1992/01/31 15152.84 16185.61
1992/02/29 15184.99 16190.79
1992/03/31 15183.84 16196.78
1992/04/30 15301.61 16340.93
1992/05/31 15544.50 16533.26
1992/06/30 15812.25 16810.69
1992/07/31 16301.03 17314.67
1992/08/31 16091.34 17145.85
1992/09/30 16166.81 17257.99
1992/10/31 15883.86 17088.34
1992/11/30 16278.56 17394.39
1992/12/31 16483.45 17571.99
1993/01/31 16703.07 17776.35
1993/02/28 17410.69 18419.32
1993/03/31 17204.38 18224.63
1993/04/30 17367.44 18408.52
1993/05/31 17460.39 18511.97
1993/06/30 17753.10 18820.94
1993/07/31 17774.52 18845.59
1993/08/31 18173.15 19237.96
1993/09/30 18396.38 19457.08
1993/10/31 18403.88 19494.63
1993/11/30 18202.52 19322.88
1993/12/31 18594.98 19730.79
1994/01/31 18768.11 19956.12
1994/02/28 18201.87 19439.25
1994/03/31 17287.88 18647.69
1994/04/30 17460.44 18805.82
1994/05/31 17667.85 18968.87
1994/06/30 17436.41 18852.97
1994/07/31 17817.60 19198.54
1994/08/31 17838.60 19264.97
1994/09/30 17493.00 18982.16
1994/10/31 17069.21 18645.03
1994/11/30 16577.83 18307.93
1994/12/31 17116.41 18710.89
1995/01/31 17739.37 19245.65
1995/02/28 18336.47 19805.31
1995/03/31 18484.38 20032.87
1995/04/30 18513.63 20056.51
1995/05/31 19125.44 20696.52
1995/06/30 18953.11 20516.46
1995/07/31 19098.25 20710.95
1995/08/31 19328.29 20973.57
1995/09/30 19438.16 21106.33
1995/10/31 19721.12 21413.22
1995/11/30 20069.97 21768.46
1995/12/31 20279.83 21977.66
1996/01/31 20445.44 22143.59
1996/02/29 20295.78 21994.12
1996/03/31 19977.90 21713.03
1996/04/30 19916.40 21651.59
1996/05/31 19875.04 21642.92
1996/06/30 20093.40 21878.62
1996/07/31 20280.10 22077.71
IMATRL PRASUN SHR__CHT 19960731 19960820 105830 R00000000000123

$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity New York Insured Municipal Income Fund on July 31, 1986. As the
chart shows, by July 31, 1996, the value of the investment would have grown
to $20,280 - a 102.80% increase on the initial investment. For comparison,
look at how the Lehman Brothers Municipal Bond Index, which reflects the
performance of the investment-grade municipal bond market, did over the
same period. With dividends reinvested, the same $10,000 would have grown
to $22,080 - a 120.80% increase.

UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally 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 YEARS ENDED JANUARY 31,
MONTHS
ENDED
JULY 31,

1996 1996 1995 1994 1993 1992

Dividend return 2.30% 5.50% 5.17% 5.63% 6.28% 6.61%

Capital appreciation
return -3.11% 9.75% -10.65% 6.73% 3.95% 4.31%

Total return -.81% 15.25% -5.48% 12.36% 10.23% 10.92%
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, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.64(cents) 27.11(cents) 54.90(cents)

Annualized dividend rate 4.78% 4.73% 4.75%

30-day annualized yield 4.77% - -

30-day annualized tax-equivalent yield 8.43% - -

</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 $11.42 over
the past month, $11.50 over the past six months and $11.55 over the past
year, you can compare the fund's income over these three periods. Dividends
per share show the income paid by the fund for a set period and do not
reflect any tax reclassifications. 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 43.41%
combined effective 1996 federal, state and New York City tax bracket , but
does not reflect the payment of the alternative minimum tax if applicable.
FIDELITY NEW YORK INSURED MUNICIPAL FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Norm Lind, Portfolio Manager of Fidelity New York Insured
Municipal Income Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. For the six months ended July 31, 1996, the fund returned -0.81%. That
was slightly better than the New York insured municipal funds average, as
tracked by Lipper Analytical Services, which had a total return of -1.08%.
The Lehman Brothers New York Insured Municipal Bond Index had a total
return of -0.39% over the same period. For the 12 months ended July 31,
1996, the fund returned 6.19%, while the Lipper average and the index
returned 5.79% and 6.55% respectively.
Q. WHAT'S CONTRIBUTED TO THE SOMEWHAT CHOPPY MUNICIPAL MARKET ENVIRONMENT
SO FAR THIS YEAR?
A. Well, coming into December and January, there were real concerns in the
muni market about the potential for tax reform and, more specifically, for
a flat tax. That made investors wary of the municipal market, since those
proposals posed a possible threat to the favorable tax treatment of
municipal bonds. As a result, municipal bond prices fell, and yields were
pushed up close to historically high levels compared to U.S. Treasury
yields. As the year wore on, however, and no concrete proposals emerged as
rallying points for serious reform, buyers gradually returned to the
municipal market.
Q. HOW HAS THE MARKET REACTED TO THE ECONOMY'S UNEXPECTED STRENGTH?
A. When employment numbers came out in the spring that suggested the
economy was far stronger than people had anticipated, interest rates rose
fairly sharply. But partly because the municipal market had already been
through a rough patch earlier in the year, municipals fared relatively well
compared to other fixed-income investments. After the initial shock of
higher rates, municipals have recovered somewhat over the past few months
and, despite their negative short-term results, were among the
better-performing income-oriented investments.
Q. HOW DID THAT BACKDROP TRANSLATE TO THE NEW YORK MUNICIPAL MARKET?
A. In New York, the story has been the budget. That holds true for both the
state and the city. New York state was extremely late in getting a budget
deal finalized - the budget was due on April 1, and it wasn't finished
until mid-July. As you
can imagine, that uncertainty had quite an impact on the New York municipal
market. What you might not imagine, though, is that the result was strong
relative performance by some New York issues.
Q. WHY WAS THAT?
A. It was mainly because of the limited supply of New York bonds out in the
marketplace as a result of the lack of a budget agreement. You see, without
a completed budget, the state could not issue significant new debt.
However, the situation was not as dramatic as last year, when the
legislature nearly let the state government shut down. This year, it
continued to pass bills to let the government continue operations and, most
importantly, guarantee that debt service would continue to be paid.
Q. WHAT OTHER FACTORS HELPED THE FUND OVER THE PAST SIX MONTHS?
A. The fund has been overweighted in New York Local Government Assistance
Corporation - LGAC - bonds. LGAC is an authority that was set up several
years ago as a financing vehicle for the state, and has now reached the end
of its financing program. Initially, the market was slow to recognize the
value of this particular program, but lately these bonds have traded
closely to the highest grade bonds
in the state. They've had an impact on the performance of the fund in the
past, and they continued to do so over the period. Actually, I've recently
been reducing the fund's positions in LGAC bonds when I see the opportunity
to sell them, in anticipation of buying opportunities for insured
state-appropriated debt during the coming months.
Q. LOOKING AHEAD, NORM, WHAT DO YOU SEE ON THE HORIZON FOR THE INSURED NEW
YORK MUNICIPAL MARKET?
A. I think some cautious optimism is in order right now. It's important to
remember that, although the insurance on municipal bonds guarantees their
timely payment of interest and principal, these bonds are still subject to
market fluctuations. Insured bonds are around 40% of total issuance in New
York municipals now, and that percentage is continuing to increase. Despite
the overall lack of diversity among issuers in the New York market, the
abundance of insured bonds gives me a good range of choice for this fund.
Another reason for a bit of caution is that we could see renewed talk of
tax reform as we head into the heat of the campaign season.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT
AS STATED ON THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY
TIME BASED ON MARKET AND OTHER CONDITIONS.

FIDELITY NEW YORK INSURED MUNICIPAL INCOME FUND

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF JULY 31, 1996
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO

General Obligation 30.0 31.2

Transportation 17.5 16.4

Special Tax 13.2 11.1

Water & Sewer 11.3 11.7

Escrowed/Pre-Refunded 9.0 10.3

AVERAGE YEARS TO MATURITY AS OF JULY 31, 1996
6 MONTHS AGO

Years 12.7 13.2

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, 1996
6 MONTHS AGO

Years 7.7 7.6

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. BEGINNING
WITH THE REPORTING CYCLE OF JUNE, 1996, THE MODEL USED TO CALCULATE
DURATIONS MAY BE SLIGHTLY MODIFIED IN ORDER TO FURTHER REFINE THIS
INFORMATION. THESE CHANGES IN METHODOLOGY MAY PRODUCE ADJUSTMENTS IN
HISTORICAL DURATION FIGURES.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF JULY 31, 1996 AS OF JANUARY 31, 1996
Aaa 77.6%
Aa, A 18.1%
Baa 2.2%
Short-term
investments 2.1%
Aaa 81.0%
Aa, A 12.5%
Baa 3.9%
Short-term
investments 2.6%
Row: 1, Col: 1, Value: 50.0
Row: 1, Col: 2, Value: 17.6
Row: 1, Col: 3, Value: 18.1
Row: 1, Col: 4, Value: 2.2
Row: 1, Col: 5, Value: 2.1
Row: 1, Col: 1, Value: 50.0
Row: 1, Col: 2, Value: 31.0
Row: 1, Col: 3, Value: 12.5
Row: 1, Col: 4, Value: 3.9
Row: 1, Col: 5, Value: 2.6
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 INSURED MUNICIPAL INCOME FUND

INVESTMENTS JULY 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 97.9%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - 97.4%
Albany County Rfdg. 5% 10/1/12 (FGIC Insured) Aaa $ 6,600,000 $ 6,179,250
Brookhaven 5.30% 10/1/04 (FGIC Insured) Aaa 1,075,000 1,099,188
Buffalo Swr. Auth. Rev. (Swr. Sys.) Series G,
5% 7/1/12 (FGIC Insured) Aaa 5,700,000 5,315,250
Cherry Valley Springfield Central School Dist.
Unltd. Tax:
7.80% 5/1/14 (MBIA Insured) Aaa 435,000 541,575
7.80% 5/1/15 (MBIA Insured) Aaa 435,000 542,119
7.80% 5/1/16 (MBIA Insured) Aaa 435,000 542,663
7.80% 5/1/17 (MBIA Insured) Aaa 435,000 545,381
7.80% 5/1/18 (MBIA Insured) Aaa 434,000 546,840
Clifton Park Wtr. Auth. Sys. Rev. Rfdg.
5% 10/1/18 (FGIC Insured) Aaa 1,820,000 1,628,900
Erie County Gen. Oblig. Series A,
6% 2/1/04 (FGIC Insured) Aaa 1,100,000 1,166,000
6% 2/1/05 (FGIC Insured) Aaa 1,000,000 1,060,000
6% 2/1/06 (FGIC Insured) Aaa 1,030,000 1,090,513
Erie County Wtr. Auth. Rev. Rfdg.
(Fourth Resolution) 0% 12/1/17
(AMBAC Insured) Aaa 1,210,000 262,280
Monroe County Pub. Impt. Gen. Oblig:
7% 6/1/03 (FGIC Insured) Aaa 1,000,000 1,127,500
6% 6/1/04 Aa 1,510,000 1,615,700
7% 6/1/04 (FGIC Insured) Aaa 2,150,000 2,442,938
6.50% 6/1/05 Aa 3,450,000 3,799,313
6.50% 06/1/07 (AMBAC Insured)
(Escrowed to Maturity) (d) Aaa 95,000 105,806
6.50% 06/1/07
(AMBAC Insured) Aaa 905,000 993,238
Nassau County Gen. Oblig.:
Series J, 7.375% 10/15/07 (FGIC Insured)
(Pre-Refunded to 10/15/00 @ 103) (d) Aaa 1,250,000 1,415,625
Series P, 6.30% 11/1/03 (FGIC Insured) Aaa 1,000,000 1,088,750
New York City Edl. Construction Fund
6.25% 10/1/03 (MBIA Insured) Aaa 1,895,000 2,060,813
New York City Gen. Oblig.:
Series A-1, 6.25% 8/1/03 (AMBAC Insured) Aaa 9,200,000 9,924,500
Series C, Sub-Series C-1, 6.625% 8/1/13
(MBIA Insured) (Pre-Refunded to
8/1/02 @ 101.5) (d) Aaa 5,000,000 5,543,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Assistance Corp.:
Series D, 6% 7/1/05 (AMBAC Insured) (e) Aaa $ 2,000,000 $ 2,145,000
6% 7/1/04 Aa 4,830,000 5,149,988
6% 7/1/05 Aa 4,215,000 4,494,244
6% 7/1/06 Aa 1,000,000 1,063,750
New York City Muni. Wtr. Fin. Auth. Wtr. &
Swr. Sys. Rev. Series B, 5.50% 6/15/19
(MBIA Insured) Aaa 3,000,000 2,868,750
New York City Trust Cultural Resources Rev.
(Botanical Gardens) 5.75% 7/1/16
(MBIA Insured) Aaa 1,250,000 1,235,938
New York Metropolitan Trans. Auth. Facs.
Rev. Series A, 6% 7/1/16 (FSA Insured)
(Pre-refunded to 7/1/08 @ 100) (d) Aaa 4,090,000 4,130,900
New York Metropolitan Trans. Auth. Trans. Facs.
Rev. Rfdg.:
Series K:
6.30% 7/1/06 (MBIA Insured) Aaa 5,150,000 5,613,500
6.30% 7/1/07 (MBIA Insured) Aaa 2,600,000 2,850,250
6.625% 7/1/14 (Pre-Refunded to
7/1/ @ 101.5) (d) Aaa 5,000,000 5,537,500
Series N, 0% 7/1/11 (FGIC Insured) Aaa 5,980,000 2,541,500
New York State Dorm. Auth. Rev.:
Rfdg. (City Univ.) Series B, 8.20% 7/1/13
(AMBAC Insured) (Pre-Refunded to
7/1/98 @ 102) (d) Aaa 1,500,000 1,640,625
(Cornell Univ.) 5.40% 7/1/14 Aa 1,065,000 1,038,375
(FIT Student Hsg.):
5.75% 7/1/03 (AMBAC Insured) Aaa 1,590,000 1,661,550
5.75% 7/1/04 (AMBAC Insured) Aaa 1,680,000 1,753,500
5.75% 7/1/05 (AMBAC Insured) Aaa 1,650,000 1,718,063
5.75% 7/1/06 (AMBAC Insured) Aaa 1,500,000 1,556,250
Rfdg. (New York State Univ. Edl. Facs.):
Series A, 5.50% 5/15/07 (FGIC Insured) Aaa 6,700,000 6,817,250
Series B, 7.25% 5/15/03 (Pre-Refunded to
5/15/00 @ 102) (d) AAA 1,545,000 1,714,950
Rfdg. (State Univ. Dorm. Facs.) Series A,
6% 7/1/03 (AMBAC Insured) Aaa 2,000,000 2,130,000
Rfdg. (State Univ. Edl. Facs.):
Series A:
6.50% 5/15/04 Baa1 3,000,000 3,191,250
5.50% 5/15/09 (AMBAC Insured) Aaa 6,000,000 6,022,500
5.50% 5/15/13 (AMBAC Insured) Aaa 4,500,000 4,483,125
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev.: - continued
Rfdg. (State Univ. Edl. Facs.): - continued
Series B:
5.25% 2/1/07 (FGIC Insured) Aaa $ 5,500,000 $ 5,451,875
5.25% 5/15/11 (FGIC Insured) Aaa 2,950,000 2,887,313
(City Univ. Sys. Consolidated) Series C:
6.25% 7/1/04 (AMBAC Insured) Aaa 4,470,000 4,838,775
6.25% 7/1/05 (AMBAC Insured) Aaa 6,320,000 6,849,300
(Ideal Senior Living Hsg.) 7.625% 8/1/28
(MBIA Insured) Aaa 2,000,000 2,155,000
(Insured Spl. Act School Dists. Prog.)
6% 7/1/16 (MBIA Insured) Aaa 1,400,000 1,417,500
(Manhattanville) 0% 7/1/10 (MBIA Insured) Aaa 2,175,000 978,750
(New York State Univ. Edl. Facs.)
Series A, 6.80% 5/15/00 (FGIC Insured) Aaa 2,000,000 2,155,000
Series C, 7% 5/15/18 (FGIC Insured)
(Pre-Refunded to 5/15/00 @ 102) (d) Aaa 2,000,000 2,202,500
(New York Univ. Law School) 7.625%
7/1/09 (MBIA Insured) Aaa 3,090,000 3,348,788
(St. Vincent's Hosp. & Med. Ctr.):
6% 2/1/03 (AMBAC Insured) Aaa 1,820,000 1,931,475
6% 8/1/03 (AMBAC Insured) Aaa 1,875,000 1,996,875
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 2,466,563
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 1,095,000
Series D, 6.30% 5/15/05 Aaa 2,000,000 2,185,000
Series E, 6.25% 6/15/05 (AMBAC Insured) Aa 1,500,000 1,618,125
6.30% 11/15/05 Aaa 2,725,000 2,987,281
New York State Local Govt. Assistance Corp.:
Rfdg. Series C, 5.50% 4/1/17 A 10,000,000 9,725,000
Rfdg. Series E:
5.25% 4/1/16 A 8,000,000 7,550,000
5% 4/1/21 A 4,600,000 4,157,250
Series B, 6% 4/1/18 A 4,425,000 4,425,000
New York State Hsg. Fin. Agcy. Svc. Contract
Oblig. Rev. Series A, 7.80% 9/15/11
(Pre-Refunded to 3/15/01 @ 102) (d) Aaa 5,000,000 5,731,250
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
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 $ 4,465,000
(Health Insurance Plan Greater New York)
Series B, 8.50% 11/1/15 (AMBAC Insured)
(Pre-Refunded to 11/1/97 @ 100) (d) Aaa 4,555,000 4,663,181
(Long-Term Health Care) Series A,
6.80% 11/1/14 (FSA Insured) Aaa 1,250,000 1,320,313
(Mary Immogene Basset Hosp.) 7.125%
11/1/20 (MBIA Insured) Aaa 2,290,000 2,481,788
(Mental Health Svcs. Facs. Impt.) Series D,
7.40% 2/15/18 Baa1 1,640,000 1,808,100
(North Shore Univ. Hosp. Mtg. Proj.) Series A,
7.20% 11/1/20 (MBIA Insured) Aaa 6,000,000 6,562,500
New York State Pwr. Auth. & Gen Purp.
Rev. Rfdg., Series C, 5.125% 1/1/11
(MBIA Insured) Aaa 8,000,000 7,750,000
New York State Tollway Auth.:
Gen. Rev. Series C, 6.50% 1/1/01
(FGIC Insured) Aaa 3,620,000 3,873,400
(Hwy. & Bridge Trust Fund):
Series A, 6% 4/1/00 (AMBAC Insured) Aaa 2,000,000 2,090,000
Series B, 6% 4/1/03 (AMBAC Insured) Aaa 3,240,000 3,454,650
6.40% 4/1/04 (FGIC Insured) Aaa 1,000,000 1,093,750
5.125% 4/1/15 (MBIA Insured) Aaa 6,475,000 6,046,031
New York State Urban Dev. Corp. Rev.
(Sports Fac. Assistance Prog.) Series A,
6.25% 4/1/06 (MBIA Insured) Aaa 2,515,000 2,709,913
Niagara Falls Bridge Commission Toll Rev.
Series B, 5.25% 10/1/15 (FGIC Insured) Aaa 14,225,000 13,620,438
Niagara Falls (Pub. Impt.) Gen. Oblig:
7.50% 3/1/08 (MBIA Insured) Aaa 995,000 1,190,269
7.50% 3/1/10 (MBIA Insured) Aaa 1,155,000 1,390,331
7.50% 3/1/11 (MBIA Insured) Aaa 1,245,000 1,504,894
7.50% 3/1/16 (MBIA Insured) Aaa 1,060,000 1,295,850
7.50% 3/1/17 (MBIA Insured) Aaa 1,200,000 1,467,000
Onondaga County Indl. Dev. Agy. Rev.
(Bristol-Meyers Squibb Co. Proj.)
5.75% 3/1/24 Aaa 1,410,000 1,378,275
Rockland County Gen. Oblig.:
6% 8/15/05 (AMBAC Insured) Aaa 1,475,000 1,581,938
6% 8/15/06 (AMBAC Insured) Aaa 1,550,000 1,660,438
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Suffolk County Gen. Oblig. 5% 10/15/03
(AMBAC Insured) Aaa $ 1,200,000 $ 1,215,000
Suffolk County Ind. Dev. Agcy. Southwest
Swr. Sys. Rev.:
6% 2/1/07 (FGIC Insured) Aaa 1,500,000 1,603,125
6% 2/1/08 (FGIC Insured) Aaa 2,500,000 2,659,375
Suffolk County Wtr. Auth. Wtrwks. Rev.:
Rfdg. (Sr, Lien):
5.10% 6/1/9 (MBIA Insured) Aaa 2,000,000 1,950,000
5.10% 6/1/10 (MBIA Insured) Aaa 4,500,000 4,325,625
5.10% 6/1/13 (MBIA Insured) Aaa 2,000,000 1,917,500
(Southwest Swr. Dist.) 6% 2/1/05
(MBIA Insured) - 1,650,000 1,765,500
7.375% 6/1/12 (AMBAC Insured) Aaa 30,000 32,063
6% 6/1/17 (MBIA Insured) Aaa 3,500,000 3,657,500
Triborough Bridge & Tunnel Auth. Rev.:
Rfdg. (Gen. Purp.)
Series Y, 5.50% 1/1/17 Aa 5,000,000 4,887,500
(Convention Ctr. Proj.) Series E,
7.25% 1/1/10 Baa1 1,700,000 1,908,250
6% 1/1/03 Aa 1,250,000 1,328,115
6% 1/1/04 Aa 5,000,000 5,325,000
Yonkers Gen. Oblig. Rev.:
6% 8/1/04 (FGIC Insured) Aaa 1,020,000 1,082,475
6% 8/1/05 (FGIC Insured) Aaa 1,080,000 1,144,800
308,360,157
NEW YORK & NEW JERSEY - 0.5%
Port Auth. New York & New Jersey Series 104,
4.75% 1/15/26 (AMBAC Insured) Aaa 2,000,000 1,687,500
TOTAL MUNICIPAL BONDS
(Cost $303,812,827) 310,047,657
MUNICIPAL NOTES (A) - 2.1%
NEW YORK - 2.1%
New York City Gen. Oblig. VRDN:
Series 1992 D, 3.55% (FGIC Insured) VMIG 1 500,000 500,000
Series 1993 B, 2.10% (FGIC Insured) VMIG 1 900,000 900,000
MUNICIPAL NOTES (A) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Ind. Dev. Agcy. (Japan Airlines Co.
Ltd. Proj.) Series 91, 3.70%
LOC Morgan Guaranty Trust Co. (c) A-1+ $ 400,000 $ 400,000
New York State Energy Research & Dev. Auth. Poll.
Cont. Rev. (Niagra Mohawk Pwr. Proj.), VRDN:
Series 1986 A, 3.75%, LOC Toronto-
Dominion Bank, Canada (c) P-1 800,000 800,000
Series 1987 A, 3.85%, LOC Toronto-
Dominion Bank, Canada - 1,800,000 1,800,000
Series 1987 B, 3.80%, LOC Morgan
Guaranty Trust Co. (c) A-1+ 600,000 600,000
Series 1988 A, 4.40%, LOC Morgan
Guaranty Trust Co.) (c) A-1+ 1,800,000 1,800,000
TOTAL MUNICIPAL NOTES
(Cost $6,800,000) 6,800,000
TOTAL INVESTMENTS - 100%
(Cost $310,612,827) $ 316,847,657
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
20 Municipal Bond Contracts Sept. 1996 $ 2,258,125 $ 48,569
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.7%
SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
3. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
4. Security collateralized by an amount sufficient to pay interest and
principal.
5. 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 $134,063.
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 95.1% AAA, AA, A 92.1%
Baa 2.2% BBB 5.7%
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:
General Obligation 30.0%
Transportation 17.5
Special Tax 13.2
Water & Sewer 11.3
Escrowed/Pre-Refunded 9.0
Health Care 7.9
Others (individually less than 5%) 11.1
TOTAL 100.0%
INCOME TAX INFORMATION
At July 31, 1996,, the aggregate cost of investment securities for income
tax purposes was $310,612,827. Net unrealized appreciation aggregated
$6,234,830, of which $7,974,023 related to appreciated investment
securities and $1,739,193 related to depreciated investment securities.
At January 31, 1996,, the fund had a capital loss carryforward of
approximately $2,577,000 which will expire on January 31, 2004.
At January 31, 1996, the fund was required to defer $538,334 of losses on
futures contracts.
FIDELITY NEW YORK INSURED MUNICIPAL INCOME FUND

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $310,612,827) - $ 316,847,657
See accompanying schedule

Cash 39,264

Receivable for investments sold 2,177,004

Receivable for fund shares sold 292,757

Interest receivable 4,512,595

Receivable for daily variation on futures contracts 14,375

TOTAL ASSETS 323,883,652

LIABILITIES

Payable for investments purchased $ 2,892,929

Distributions payable 297,824

Accrued management fee 104,841

Other payables and accrued expenses 71,593

TOTAL LIABILITIES 3,367,187

NET ASSETS $ 320,516,465

Net Assets consist of:

Paid in capital $ 315,871,555

Accumulated undistributed net realized gain (loss) (1,638,489)
on investments

Net unrealized appreciation (depreciation) on 6,283,399
investments

NET ASSETS, for 27,835,648 shares outstanding $ 320,516,465

NET ASSET VALUE, offering price and redemption price per $11.51
share ($320,516,465 (divided by) 27,835,648 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1996 (UNAUDITED)

INTEREST INCOME $ 8,617,851

EXPENSES

Management fee $ 642,189

Transfer agent, accounting and custodian fees and 288,373
expenses

Non-interested trustees' compensation 679

Registration fees 24,245

Audit 19,237

Legal 2,531

Miscellaneous 2,359

Total expenses before reductions 979,613

Expense reductions (355) 979,258

NET INTEREST INCOME 7,638,593

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 1,462,296

Futures contracts 14,694 1,476,990

Change in net unrealized appreciation (depreciation) on:

Investment securities (11,976,031)

Futures contracts 48,569 (11,927,462)

NET GAIN (LOSS) (10,450,472)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (2,811,879)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JANUARY 31,
JULY 31, 1996 1996
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 7,638,593 $ 16,005,923
Net interest income

Net realized gain (loss) 1,476,990 (113,500)

Change in net unrealized appreciation (depreciation) (11,927,462) 30,303,012

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (2,811,879) 46,195,435
FROM OPERATIONS

Distributions to shareholders from net interest income (7,638,593) (16,176,302)

Share transactions 18,737,963 57,589,866
Net proceeds from sales of shares

Reinvestment of distributions from net interest income 5,809,246 12,212,695

Cost of shares redeemed (31,750,779) (72,562,749)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (7,203,570) (2,760,188)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (17,654,042) 27,258,945

NET ASSETS

Beginning of period 338,170,507 310,911,562

End of period $ 320,516,465 $ 338,170,507

OTHER INFORMATION
Shares

Sold 1,625,401 5,049,150

Issued in reinvestment of distributions 504,982 1,064,749

Redeemed (2,763,589) (6,354,786)

Net increase (decrease) (633,206) (240,887)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, NINE MONTHS YEARS ENDED
ENDED ENDED APRIL 30,
JULY 31, 1996 JANUARY 31,

(UNAUDITED) 1996 1995 1994 C 1993 1992

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 11.880 $ 10.830 $ 12.300 $ 11.830 $ 11.320 $ 10.990

Income from Investment Operations .271 .562 .629 .648 .509 .684
Net interest income

Net realized and unrealized gain (loss) (.370) 1.056 (1.320) .780 .510 .330

Total from investment operations (.099) 1.618 (.691) 1.428 1.019 1.014

Less Distributions (.271) (.568) D (.629) (.648) (.509) (.684)
From net interest income

From net realized gain - - (.070) (.310) - -

In excess of net realized gain - - (.080) - - -

Total distributions (.271) (.568) (.779) (.958) (.509) (.684)

Net asset value, end of period $ 11.510 $ 11.880 $ 10.830 $ 12.300 $ 11.830 $ 11.320

TOTAL RETURN B (.81)% 15.25% (5.48)% 12.36% 9.16% 9.45%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 320,516 $ 338,171 $ 310,912 $ 414,629 $ 359,305 $ 309,300

Ratio of expenses to average net assets .61% A .60% .58% .58% .61% A .62%

Ratio of expenses to average net assets after expense .61% A .59% E .58% .58% .61% A .62%
reductions

Ratio of net interest income to average net assets 4.79% A 4.91% 5.60% 5.31% 5.73% A 6.17%

Portfolio turnover rate 39% A 74% 41% 48% 39% A 17%

</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.
D THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES (SEE NOTE 1 OF NOTES TO FINANCIAL STATEMENTS).
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES .
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND

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 ten years total
returns would have been lower.
CUMULATIVE TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED JULY 31, 1996 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

Fidelity New York Municipal Money Market 1.41% 3.05% 13.99% 42.40%

New York Tax-Free Money Market Funds Averag 1.38% 2.98% 13.53% 41.62%
e

</TABLE>

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. To
measure how the fund's performance stacked up against its peers, you can
compare it to the New York tax-free money market funds average, which
reflects the performance of 35 mutual funds with similar objectives tracked
by IBC Financial Data, Inc. over the past six months. (The periods covered
by the IBC Financial Data, Inc. numbers are the closest available match to
those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Fidelity New York Municipal Money Market 3.05% 2.65% 3.60%

New York Tax-Free Money Market Funds Averag 2.97% 2.57% 3.54%
e

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
7/31/95 10/30/95 1/29/96 4/29/96 7/29/96

New York Municipal 3.26% 3.26% 2.77% 3.12% 2.91%
Money Market

New York Tax-Free Money 3.11% 3.16% 2.74% 3.10% 2.84%
Market Funds Average

New York Municipal 5.76% 5.76% 4.89% 5.51% 5.14%
Money Market Tax-equivalen
t

</TABLE>
Row: 1, Col: 1, Value: 3.26
Row: 1, Col: 2, Value: 3.11
Row: 2, Col: 1, Value: 3.26
Row: 2, Col: 2, Value: 3.16
Row: 3, Col: 1, Value: 2.77
Row: 3, Col: 2, Value: 2.74
Row: 4, Col: 1, Value: 3.12
Row: 4, Col: 2, Value: 3.1
Row: 5, Col: 1, Value: 2.91
Row: 5, Col: 2, Value: 2.84
New York
Municipal
Money Market
New York Tax-Free
Money Market
Funds Average
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the New York tax-free money market funds average as
tracked by IBC Financial Data, Inc. Or you can look at the fund's
tax-equivalent yield, which is based on a combined effective 1996 federal,
state and New York City income tax rate of 43.41%. 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 MUNICIPAL MONEY MARKET FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jan Bradburn, Portfolio Manager of Fidelity New York
Municipal Money Market Fund
Q. JAN, HOW HAS THE INVESTMENT CLIMATE CHANGED DURING THE PERIOD?
A. The past six months have brought a dramatic reversal in market
sentiment. When the current reporting period began, the economy was
expanding slowly, inflationary pressures were under control, Congress and
the White House appeared on the verge of signing a balanced budget
agreement and the Federal Reserve was in an easing mode. Three times since
July 1995, the Fed had cut the rate banks charge each other for overnight
loans, known as the federal funds rate - most recently on January 31, 1996,
the day before the period began. Looking ahead, many market participants
believed further rate cuts would be necessary to prevent the economy from
sliding into a recession.
Q. WHY DID THE MARKET SENTIMENT CHANGE?
A. Early in the period, the economy began showing tentative signs of
improvement. Fed Chairman Alan Greenspan, testifying before the Senate
Banking Committee in mid-February, suggested the economy was performing
better than expected. Then came the infamous February employment report.
When market participants saw that the number of jobs created during the
month had been four times greater than expected, interest rates rose
sharply. As it turned out, the economy expanded at an annual rate of 2.2%
during the first quarter - very close to the Fed's target pace for
sustainable, non-inflationary growth. Since then, a stream of positive
indicators has pushed interest rates steadily higher. Not surprisingly, the
estimated second-quarter growth rate was even faster at 4.2%.
Q. WHAT WAS YOUR STRATEGY DURING
THE PERIOD?
A. The fund's average maturity at the beginning of the period was around 60
days, reflecting my belief at the time that further rate cuts were likely;
when interest rates are falling, it often makes sense to lock in current
rates by buying securities with longer average maturities. Since then,
however, as market pressures have driven short-term interest rates higher,
I've gradually reduced the fund's average maturity in order to gain more
flexibility. For most of the period, the fund's average maturity in days
has ranged from the high 40s to the mid 50s, depending on the supply of
attractive issues. At the end of July, the fund's average maturity was 53
days.
Q. HOW DID THE FUND PERFORM?
A. Slightly better than the average of its peers. The fund's seven-day
yield on July 31, 1996 was 2.93%, compared to 2.80% six months ago. The
latest yield was the equivalent of a 5.18% taxable rate of return for New
York City investors in the 43.41% combined federal, state and local income
tax bracket. Through July 31, 1996, the fund's six-month total return was
1.41%, compared to 1.38% for the New York tax-free money market funds
average, according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. Recent positive trends in key indicators such as employment, housing and
consumer spending portray a healthy economy, decreasing the possibility of
further rate cuts. Given the growing uncertainty, I'll probably aim to keep
the fund's average maturity between 50 and 60 days - possibly longer,
depending on buying opportunities and the supply of new issues. That would
give me flexibility to adapt to changing conditions.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
7/31/96 1/31/96 7/31/95

0 - 30 69 62 73

31 - 90 14 8 8

91 - 180 5 19 5

181 - 397 12 11 14

WEIGHTED AVERAGE MATURITY
7/31/96 1/31/96 7/31/95

Fidelity New York Municipal
Money Market Fund 53 days 62 days 59 days

New York Tax-Free
Money Market Funds
Average* 55 days 49 days 56 days

ASSET ALLOCATION
AS OF JULY 31, 1996 AS OF JANUARY 31, 1996

Row: 1, Col: 1, Value: 60.31
Row: 1, Col: 2, Value: 11.93
Row: 1, Col: 3, Value: 2.88
Row: 1, Col: 4, Value: 21.22
Row: 1, Col: 5, Value: 3.66
Row: 1, Col: 1, Value: 55.0
Row: 1, Col: 2, Value: 8.0
Row: 1, Col: 3, Value: 4.0
Row: 1, Col: 4, Value: 25.0
Row: 1, Col: 5, Value: 8.0
Variable rate
demand notes
(VRDNs) 60%
Commercial
paper 12%
Tender bonds 3%
Municipal
notes 21%
Other 4%
Variable rate
demand notes
(VRDNs) 55%
Commercial
paper 8%
Tender bonds 4%
Municipal
notes 25%
Other 8%
* SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND

INVESTMENTS JULY 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 96.3%
Albany County Ind. Dev. Auth. Ind. Dev. Rev. (Campus Plaza
7 Inc. Proj.) 3.75%, LOC Marine Midland Bank, VRDN (b) $ 960,000 $ 960,000
Albany County School Dist. BAN:
4% 5/2/97 3,000,000 3,006,283
4.50% 6/20/97 685,000 687,910
Amsterdam Ind. Dev. Agcy. Ind. Dev. Rev. (Longview Fiber Co.)
Series 1987, 3.70%, LOC Algemene Bank, VRDN 1,880,000 1,880,000
Babylon Ind. Dev. Rev. (Southern Container Corp.)
3.75%, LOC Fleet Bank, VRDN (b) 4,400,000 4,400,000
Broome County BAN 4.10% 4/18/97 13,200,000 13,238,927
Chautauqua County Ind. Dev. Agcy. Rev. (Red Wing
Co. Inc. Proj.) Series 1985, 3.65%, LOC Wachovia
Bank of Georgia, VRDN 3,500,000 3,500,000
Chemung County Ind. Dev. Auth. Civic Fac. Rev. (Arnot
Ogden Med. Ctr.) 3.40%, LOC Chemical Bank, VRDN 3,200,000 3,200,000
Chemung County Ind. Dev. Auth. Rev. (McWayne Inc. Proj.)
Series 1992 A, 3.55%, LOC Amsouth Bank, VRDN (b) 2,840,000 2,840,000
Chemung County Ind. Dev. Board Ind. Dev. Rev.
(MMARS Second Prog.) Series A, 3.75%, LOC Marine
Midland Bank, VRDN 1,000,000 1,000,000
Columbia County Ind. Dev. Auth. Ind. Dev. Rev.
(Philip Morris Proj.) 3.60%, VRDN 1,800,000 1,800,000
Commack Unified Free School Dist. TAN 4.35% 6/27/97 800,000 802,088
Dobbs Ferry Unified Free School Dist. TAN 4.25% 2/28/97 950,000 952,656
East Hampton Township BAN:
3.50% 8/22/96 1,000,000 1,000,198
4% 4/17/97 1,350,000 1,352,767
Elmira BAN 4.375% 7/10/97 1,900,000 1,909,024
Erie County Gen. Oblig. RAN 4.50% 9/20/96,
LOC Union Bank of Switzerland 5,500,000 5,504,701
Erie County Ind. Dev. Auth. Ind. Dev. Rev. VRDN (b):
(Nat'l. Wire Products) Series 1988 E, 3.75%,
LOC Marine Midland Bank 320,000 320,000
(Niagara Envelope Co. Proj.) 3.75%,
LOC Marine Midland Bank 2,000,000 2,000,000
(Uniland Dev./Buffalo Campus-B) Series 1986D, 3.75%,
LOC Marine Midland Bank 1,420,000 1,420,000
Freeport Unified Free School Dist. TAN Series B,
4.30% 6/30/97, LOC State Street Bank & Trust Company 4,400,000 4,413,324
Greenburgh County School Dist. TAN 3.75% 10/11/96 3,200,000 3,201,222
Greenwood Lake Unified Free School Dist. BAN
4.50% 6/27/97 2,700,000 2,714,075
Guilderland School Dist. TAN 3.85% 10/4/96 1,600,000 1,600,689
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Herricks Unified Free School Dist. TAN 4.25% 6/27/97 $ 4,300,000 $
4,314,029
Huntington Unified Free School Dist. TAN 4.25% 6/24/97 3,900,000
3,914,289
Island Park Unified Free School Dist. BAN 4% 9/13/96 1,000,000 1,000,456
Islip Ind. Dev. Auth. Ind. Dev. Rev. VRDN:
(Brentwood Dist.) Series 1984, 3.40%,
LOC Fleet Nat'l. Bank 2,000,000 2,000,000
(Interstate Litho Corp.) Series 1996 A, 3.80%,
LOC Marine Midland Bank NA (b) 1,600,000 1,600,000
(Magu Realty/Creative Bath Proj.) Series 1992, 3.60%,
LOC Chemical Bank (b) 3,990,000 3,990,000
Jefferson County Ind. Dev. Auth. Ind. Dev. Rev.
(Watertown-Carthage Television Corp. Proj.) Series 1982,
3.55%, LOC First Nat'l. Bank of Chicago, VRDN 3,300,000 3,300,000
Katonah-Lewisboro Unified Free School Dist. TAN
3.61% 10/18/96 3,800,000 3,800,464
Monroe County BAN 4% 12/12/96 8,770,000 8,785,224
Monroe County Ind. Dev. Auth. Ind. Agcy. Rev.
(Advent Tool & Mold) Series 1990 D, 3.75%,
LOC Marine Midland Bank, VRDN (b) 1,010,000 1,010,000
Nassau County BAN:
4% 8/15/96 8,300,000 8,301,551
4.25% 8/15/96 9,700,000 9,701,327
3.50% 11/15/96 2,800,000 2,802,374
4% 11/15/96 10,800,000 10,810,644
4.25% 3/14/97 10,800,000 10,830,494
Nassau County Gen. Impt. Bonds:
Series A, 5% 11/1/96 (FGIC Insured) 1,900,000 1,905,799
Series P, 6.30% 11/1/96 (FGIC Insured) 550,000 553,975
Series Q, 5% 8/1/96 (FGIC Insured) 5,225,000 5,225,000
Nassau County Ind. Dev. Auth. Ind. Dev. Rev. (Cr/PL Inc. Proj.)
Series 1985, 3.80%, LO First Nat'l. Bank of Chicago, VRDN 3,930,000
3,930,000
New York City Gen. Oblig.:
Bonds:
Series A, 8% 8/15/96 7,550,000 7,676,430
Series A, 8% 8/15/96 600,000 610,045
Series A, 8% 8/15/96 6,500,000 6,608,824
VRDN:
Series B, 3.55% (FGIC Insured) (BPA FGIC Security
Purchase Inc.) (Liquidity Facility FGIC) 5,400,000 5,400,000
Series 1992 D, 3.55% (FGIC Insured) 2,500,000 2,500,000
Series 1992 D, 3.55% (FGIC Insured) 15,000,000 15,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Gen Oblig.: - continued
VRDN: - continued
Series 1995 F-4, 3.50%, LOC Landesbank Hessen-
Thuringen $ 10,700,000 $ 10,700,000
Series 1995 F-7, 3.45%, LOC Union Bank of
Switzerland 2,000,000 2,000,000
New York City Gen. Oblig. Participating VRDN,
Series 1994 C-3, 3.67% (Liquidity Facility Citibank) (c) 17,000,000
17,000,000
New York City Hsg. Dev. Corp. Multi-Family Mtg. Rev. VRDN:
(Tribeca Towers) Series 1994 A, 3.45% FNMA
Guaranty) (b) 3,800,000 3,800,000
(100 Jane St. Dev. Proj.) Series 1995 A, 3.55%,
LOC Fleet National Bank NY 4,000,000 4,000,000
(400 W. 59th St. Proj.):
3.50%, LOC Bayerische Hypothenken, (b) 14,900,000 14,900,000
3.55%, LOC Bayerische Hypothenken, (b) 16,800,000 16,800,000
New York City Hsg. Dev. Corp. Spl. Residential Rev.VRDN:
(Montefiore Med. Ctr. Proj.) Series 1993 A, 3.40%,
LOC Chemical Bank 8,400,000 8,400,000
(Related-East 96th St. Proj.) Series 1990 A, 3.40%,
LOC Mitsubishi Bank Ltd. 1,700,000 1,700,000
New York City Ind. Dev. Agcy. Facs. Rev. (Church of the
Heavenly Rest Day School Proj.) Series 1991, 3.40%,
LOC Barclays Bank, VRDN 6,325,000 6,325,000
New York City Metropolitan Transit Auth. Participating VRDN:
Series 1993 B, 3.55% (Liquidity Facility Hong Kong &
Shanghai Banking Corp.) (c) 13,000,000 13,000,000
Series 1995 SG-36,
3.70% (Liquidity Facility Society Generale) (c) 5,000,000 5,000,000
New York City Metropolitan Transit Auth. Tender Option Bonds
Series 144, 3.67% (Liquidity Facility Citibank) (c) 16,655,000 16,655,000
New York City Muni. Wtr. Fin. Auth. CP:
Series 1:
3.55% 9/17/96, LOC Canadian Imperial Bank 9,600,000 9,600,000
3.55% 9/17/96, LOC Canadian Imperial Bank 19,200,000 19,200,000
3.60% 9/23/96, LOC Canadian Imperial Bank 2,700,000 2,700,000
3.60% 9/24/96, LOC Canadian Imperial Bank 3,500,000 3,500,000
Series 3, 3.70% 10/17/96, LOC Bank of Nova
Scotia/Toronto-Dominion Bank 4,800,000 4,800,000
New York Gen. Oblig. 3.50% 10/10/96 (Liquidity Facility
Westdeutsche Landesbank Giron) 2,000,000 2,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Participating VRDN:
(Rockefeller Univ.) Series 1991, 3.70% (Liquidity Facility
Citibank) (c) $ 3,200,000 $ 3,200,000
Series PA-60, 3.55% (Liquidity Facility Merrill
Lynch & Co.) (c) 4,500,000 4,500,000
New York State Dorm. Auth. Rev. Bonds:
(Sloan-Kettering Mem. Cancer Ctr.):
Series 1989 A:
3.50%, tender 9/19/96, LOC Chemical Bank 8,000,000 8,000,000
3.65%, tender 10/24/96, LOC Chemical Bank 5,160,000 5,160,000
3.65%, tender 10/29/96, LOC Chemical Bank 2,400,000 2,400,000
Series 1989 B:
3.50%, tender 10/16/96, LOC Chemical Bank 6,000,000 6,000,000
3.65%, tender 9/26/96, LOC Chemical Bank 1,500,000 1,500,000
New York State Energy Research & Dev. Auth. Bonds,
Series 943206, 3.25%, tender 8/1/96
(Liquidity Facility Citibank) (MBIA Insured) (c)(d) 8,000,000 8,000,000
New York State Energy Research & Dev. Auth. Participating
VRDN, Series 943202, 3.67% (Liquidity Facility Citibank)
(MBIA Insured) (c) 15,400,000 15,400,000
New York State Energy Research & Dev. Auth. Poll. Cont. Rev.:
Rfdg. (Orange Rocland Utility) Series 1994 A, 3.25%,
LOC Societe Generale, VRDN 3,200,000 3,200,000
(Central Hudson Gas & Elec.) Series 1985 B, 3.30%,
LOC Deutsche Bank, VRDN 8,000,000 8,000,000
(Niagra Mohawk Pwr.) Series 1987 A, 4.05%,
LOC Toronto Dominion Bank, VRDN (b) 14,760,000 14,760,000
(Niagra Mohawk Pwr.) Series 1987 B, 3.75%,
LOC Morgan Guaranty Trust Co., VRDN (b) 6,700,000 6,700,000
(Niagara Mohawk Pwr. Proj.) Series 1988 A, 3.75%,
LOC Morgan Guaranty Trust Co., VRDN (b) 5,000,000 5,000,000
(New York State Electric & Gas), Series 1985 D,
3.65%, tender 12/1/96, LOC Union Bank of Switzerland 5,700,000 5,700,000
(Niagra Mohawk Proj.) Series 1986 A, 3.75%,
LOC Toronto Dominion Bank, VRDN (b) 1,800,000 1,800,000
New York State Energy Research & Dev. Auth. Rev.
(Long Island Lighting):
Series 1993 3.50%,
LOC Toronto-Dominion Bank, VRDN (b) 3,600,000 3,600,000
Series 1993 A, 3.55%,
LOC Toronto-Dominion Bank, VRDN (b) 16,700,000 16,700,000
Series 1994 A, 3.50%, LOC Union
Bank of Switzerland, VRDN (b) 6,400,000 6,400,000
Series 1995 A, 3.50% LOC Union
Bank of Switzerland, VRDN (b) 6,800,000 6,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York Envir. Fac. Corp. Participating VRDN,
Series CR-154, 3.67% (Liquidity Facility Citibank) $ 9,222,500 $ 9,222,500
New York State Gen. Oblig. CP:
Series S:
3.55% 10/8/96
(Liquidity Facility Westdeutsche Landesbanken) 4,800,000 4,800,000
3.55% 10/9/96
(Liquidity Facility Westdeutsche Landesbanken) 6,500,000 6,500,000
Series Q:
3.70% 8/7/96
(Liquidity Facility Westdeutsche Landesbanken) 5,200,000 5,200,000
3.70% 8/8/96
(Liquidity Facility Westdeutsche Landesbanken) 5,000,000 5,000,000
New York State Hsg. Dev. Corp. Mtg. Rev. 92nd Realty Co.)
Series 1994 A, 3.55%, LOC Midland Bank PLC, VRDN (b) 13,750,000
13,750,000
New York State Hsg. Fin. Agcy. Rev. VRDN:
(Mem. Sloan-Kettering Cancer Ctr.) Series 1985 A, 3.25% 5,400,000
5,400,000
(Normandie Court I) Series 1991 A, 2.45%,
LOC Societe Generale 17,100,000 17,100,000
New York State Local Gov't. Assistance Corp. VRDN:
Series 1995 D, 3.45%, LOC Societe Generale 30,900,000 30,900,000
Series 1995 E, 3.45%, LOC Canadian Imperial Bank 8,400,000 8,400,000
Series 1995 F, 3.35%, LOC Toronto Dominion Bank 4,100,000 4,100,000
Series 1995 G, 3.30%, LOC Natwest 5,900,000 5,900,000
New York State Mtg. Agcy. Participating, VRDN (b)(c):
Series PA-87, 3.70%
(Liquidity Facility Merrill Lynch & Co.) 3,800,000 3,800,000
Series PT-11, 3.70% (Liquidity Facility Commerzbank) 11,730,000
11,730,000
Series PT-15 A, 3.70%
(Liquidity Facility Dai-ichi Kangyo Bank Ltd.) 6,880,000 6,880,000
Series PT 15-B, 3.70%
(Liquidity Facility Commerzbank) 4,040,000 4,040,000
Series PT-26, 3.65%, 10/1/23
(Liquidity Facility Credit Suisse) 4,075,000 4,075,000
New York State Medcare Facs. Fin. Agcy. Participating
VRDN, Series PA-89, 3.55% (Liquidity Facility Merrill
Lynch & Co.) (c) 5,025,000 5,025,000
New York State Pwr. Auth. Rev. Bonds, 3.25%, tender 9/1/96 2,800,000
2,800,000
New York State Pwr. Auth. Rev. CP:
3.80% 8/12/96 2,000,000 2,000,000
3.60% 8/13/96 2,800,000 2,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Urban Dev. Corp. Participating VRDN,
Series BTP-113, 3.80% (Liquidity Facility Bankers
Trust Co.) (c) $ 7,854,000 $ 7,854,000
Niagara County BAN 4.75% 7/18/97 2,000,000 2,012,922
Northport-East Northport Unified Free School Dist.:
BAN 4.50% 6/30/97 1,500,000 1,506,578
TAN 4.50% 6/30/97 5,700,000 5,728,007
Onondaga County BAN 4% 3/28/97 1,104,000 1,105,735
Oswego County Ind. Dev. Agcy. Poll. Cont. Rev.
(Phillip Morris Co. Proj.) 3.60%, VRDN 7,000,000 7,000,000
Oyster Bay BAN 4.25% 7/11/97 10,900,000 10,923,474
Plainview-Old Bethpage County School Dist. TAN:
4.50% 6/30/97 1,600,000 1,606,315
4.25% 6/30/97 500,000 500,645
Riverhead County School Dist. BAN 4% 12/6/96 1,350,000 1,351,781
Rochester Gen. Oblig.:
BAN 4.50% 10/31/96 9,200,000 9,215,924
Bonds Series A, 4.25% 9/15/96
(AMBAC Insured) 4,500,000 4,505,415
St. Lawrence County Ind. Dev. Agcy. Envir. Impt. Rev.
(Reynolds Metals Proj.) 3.55%, LOC Royal Bank of
Canada, VRDN 6,400,000 6,400,000
Schenectady Ind. Dev. Agcy. Rev. (Super Steel Schenectady
Proj.) 3.60%, LOC Key Bank Of New York, VRDN 2,700,000 2,700,000
South Huntington Unified Free School Dist. TAN 4.50% 6/30/97 4,800,000
4,823,351
Southampton BAN 3.75% 2/14/97 600,000 601,250
Suffolk County Gen. Oblig. Bonds 5% 7/15/97 1,785,000 1,799,351
Suffolk County Ind. Dev. Agcy. (Suffolk Child Dev. Ctr. Proj.)
Series 1989, 3.50%, LOC Barclays Bank, VRDN 1,800,000 1,800,000
Suffolk County TAN 4.50% 9/12/96
LOC Canadian Imperial Bank 11,000,000 11,008,197
Tompkins BAN:
4% 4/11/97 (b) 1,200,000 1,202,404
4% 4/11/97 2,195,000 2,200,873
Tonawanda BAN 4.25% 5/8/97 1,000,000 1,003,839
Triborough Bridge & Tunnel Auth. Participating VRDN (c):
Series BT-184, 3.50% (Liquidity Facility Bankers
Trust Company) 4,100,000 4,100,000
Series CR-133, 3.45% (Liquidity Facility Citibank) 6,205,000 6,205,000
Triborough Bridge & Tunnel Auth. Spl. Oblig. Rev.
Series 1994, 3.45% (FGIC Insured), VRDN 9,600,000 9,600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Ulster County TAN 4.25% 3/26/97, LOC State Street
Bank & Trust Company $ 5,000,000 $ 5,015,520
Washington County BAN 4.25% 4/25/97 2,000,000 2,006,335
Williamsville County School Dist. BAN 3.57% 1/24/97 800,000 800,259
Wyoming County Ind. Dev. Auth. Ind. Dev. Rev.
(American Precision) Series 1988 A, 3.75%,
LOC Marine Midland Bank, VRDN (b) 640,000 640,000
758,814,464
NEW YORK & NEW JERSEY - 3.7%
New York & New Jersey Port Auth. Rev.:
Series 1992, 3.53%, VRDN 9,700,000 9,700,000
Series 1995, 3.53%, VRDN (b) 16,900,000 16,900,000
CP Series A, 2.90% 8/8/96 (Liquidity Facility Bank of
Nova Scotia) (b) 2,900,000 2,900,000
29,500,000
TOTAL INVESTMENTS - 100% $ 788,314,464
Total Cost for Income Tax Purposes $ 788,314,464
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
3. Provides evidence of ownership in one or more underlying municipal
bonds.
4. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
New York State Energy
Research & Dev. Auth.
Bonds, Series 943206,
3.25%, tender 8/1/96
(Liquidity Facility Citibank)
(MBIA Insured) 7/1/96 $8,000,000
INCOME TAX INFORMATION
At January 31, 1996, the fund had a capital loss carryforward of
approximately $40,600 of which $37,600 and $3,000 will expire on January
31, 2001 and 2004 , respectively.
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value - $ 788,314,464
See accompanying schedule

Cash 5,379,982

Receivable for investments sold 15,300,000

Interest receivable 5,861,594

TOTAL ASSETS 814,856,040

LIABILITIES

Payable for investments purchased $ 3,106,502

Distributions payable 112,323

Accrued management fee 269,699

Other payables and accrued expenses 189,355

TOTAL LIABILITIES 3,677,879

NET ASSETS $ 811,178,161

Net Assets consist of:

Paid in capital $ 811,251,846

Accumulated net realized gain (loss) on investments (73,685)

NET ASSETS, for 811,086,603 shares outstanding $ 811,178,161

NET ASSET VALUE, offering price and redemption price per $1.00
share ($811,178,161 (divided by) 811,086,603 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1996 (UNAUDITED)

INTEREST INCOME $ 14,117,042

EXPENSES

Management fee $ 1,635,892

Transfer agent, accounting and custodian fees and 854,236
expenses

Non-interested trustees' compensation 2,782

Registration fees 8,910

Audit 15,056

Legal 2,738

Miscellaneous 3,383

Total expenses before reductions 2,522,997

Expense reductions (11,896) 2,511,101

NET INTEREST INCOME 11,605,941

NET REALIZED GAIN (LOSS) ON INVESTMENTS (33,056)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 11,572,885

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JANUARY 31,
JULY 31, 1996 1996
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 11,605,941 $ 24,804,124
Net interest income

Net realized gain (loss) (33,056) (1,680)

Increase (decrease) in net unrealized gain from - (3)
accretion of market discount

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 11,572,885 24,802,441
FROM OPERATIONS

Distributions to shareholders from net interest income (11,605,941) (24,804,124)

Share transactions at net asset value of $1.00 per share 1,090,000,822 1,758,541,233
Proceeds from sales of shares

Reinvestment of distributions from net interest income 11,136,984 23,870,558

Cost of shares redeemed (1,112,792,496) (1,696,826,206)

NET INCREASE (DECREASE) IN NET ASSETS AND SHARES (11,654,690) 85,585,585
RESULTING FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (11,687,746) 85,583,902

NET ASSETS

Beginning of period 822,865,907 737,282,005

End of period $ 811,178,161 $ 822,865,907

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, NINE MONTHS YEAR ENDED
ENDED ENDED APRIL 30,
JULY 31, 1996 JANUARY 31,

(UNAUDITED) 1996 1995 1994 1993 1992

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

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

Income from Investment Operations .014 .033 .024 .018 .017 .034
Net interest income

Less Distributions (.014) (.033) (.024) (.018) (.017) (.034)
From net interest income

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

TOTAL RETURN B 1.41% 3.32% 2.44% 1.84% 1.72% 3.46%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 811,178 $ 822,866 $ 737,282 $ 608,444 $ 565,619 $ 540,374

Ratio of expenses to average net assets .61%A .62% .60% .62% .62% A .64%

Ratio of net interest income to average net assets 2.82%A 3.26% 2.42% 1.83% 2.26% A 3.39%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended July 31, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity New York Municipal Income Fund (the income fund) and Fidelity New
York Insured Municipal Income Fund (the insured fund) are funds of Fidelity
New York Municipal Trust. Fidelity New York Municipal Money Market Fund
(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 financial statements have been prepared in conformity
with generally accepted accounting principles which permit management to
make certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting policies of
the income fund, insured fund and money market fund:
SECURITY VALUATION.
INCOME 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 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
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options transactions, market discount, losses deferred due to wash
sales and futures and options, and excise tax regulations.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net interest income and realized
and unrealized gain (loss). Any taxable gain remaining at fiscal year end
is distributed in the following year.
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 income and insured 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 fund's exposure to the underlying instrument.
Selling futures, buying puts, and writing calls tend to decrease the fund's
exposure
to the underlying instrument, or hedge other fund investments. Futures
contracts involve, to varying degrees, risk of loss in excess of the
futures variation margin reflected in the Statement of Assets and
Liabilities. The underlying face amount at value of any open futures
contracts at period end 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 $8,000,000 or
1.0% of net assets for the money market fund.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $103,948,280 and $97,073,647, respectively.
The market value of futures contracts opened and closed during the period
amounted to $16,629,927 and $19,427,971, respectively.
INSURED FUND. Purchases and sales of securities, other than short-term
securities, aggregated $60,686,978 and $65,282,050, respectively.
The market value of futures contracts opened and closed during the period
amounted to $3,314,335 and $1,119,472, 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 .1100% 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 an annualized rate of .40%, of average net assets
for the income, insured and money market funds.
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.
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 $701 for the
income fund and that no payments were made to third parties under the Plans
during the period for the insured and money market funds.
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,
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
under which FSC performs the activities associated with the funds' transfer
and shareholder servicing agent and accounting functions. The funds pay
account fees and asset-based fees that vary according to account size and
type of account. 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 $258,245 and $91,758 for the income fund, $207,523 and $70,343
for the insured fund, and $760,145 and $64,518 for the money market fund,
respectively.
For the period, the transfer agent fees were equivalent to annualized rates
of .13%, .13% and .18% of average net assets for the income, insured and
money market funds, respectively.
Money market fund 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 $40,660.
5. EXPENSE REDUCTIONS.
Each fund has entered into arrangements with its custodian and transfer
agent whereby interest earned on uninvested cash balances was used to
offset a portion of each fund's expenses. During the period, the transfer
agent fees were reduced by $1,417, $355 and $11,896 for the income ,
insured and money market funds, respectively, under these arrangements.
TO CALL FIDELITY

If more than one address is listed, please locate the address that is
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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
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER,
MONEY MARKET FUND
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Norman Lind, Vice President -
INCOME AND INSURED FUNDS
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
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer - MONEY MARKET FUND
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 *
ADVISORY BOARD
William O. McCoy
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