SUPPLEMENT TO THE SPARTAN(registered trademark) NEW YORK MUNICIPAL
FUNDS' MARCH 31, 1997
PROSPECTUS
PROPOSED REORGANIZATIONS. The Board of Trustees of Spartan New York
Municipal Income Fund and Spartan New York Intermediate Municipal
Income Fund has unanimously approved Agreements and Plans of
Reorganization ("Agreements") between Spartan New York Municipal
Income Fund and Fidelity New York Municipal Income Fund, a fund of
Fidelity New York Municipal Trust, and between Spartan New York
Intermediate Municipal Income Fund and Fidelity New York Municipal
Income Fund.
The Agreements provide for the transfer of all of the assets and the
assumption of all of the liabilities of Spartan New York Municipal
Income Fund and Spartan New York Intermediate Municipal Income Fund by
Fidelity New York Municipal Income Fund solely in exchange for the
number of shares of Fidelity New York Municipal Income Fund equal in
value to the relative net asset value of the outstanding shares of
Spartan New York Municipal Income Fund or Spartan New York
Intermediate Municipal Income Fund. Following such exchanges, Spartan
New York Municipal Income Fund and Spartan New York Intermediate
Municipal Income Fund will distribute the Fidelity New York Municipal
Income Fund shares to their shareholders pro rata, in liquidation of
Spartan New York Municipal Income Fund and Spartan New York
Intermediate Municipal Income Fund as provided in the Agreements (the
transactions contemplated by the Agreements referred to as the
"Reorganizations").
The Reorganizations can be consummated only if, among other things,
they are approved by a majority vote of shareholders of the respective
fund. A Special Meeting (the "Meeting") of the Shareholders of Spartan
New York Municipal Income Fund and Spartan New York Intermediate
Municipal Income Fund will be held on December 17, 1997, and approval
of the Agreements will be voted on at that time. In connection with
the Meeting, Spartan New York Municipal Income Fund and Spartan New
York Intermediate Municipal Income Fund will be filing with the
Securities and Exchange Commission and delivering to their
shareholders of record a Proxy Statement describing the
Reorganizations and a Prospectus for Fidelity New York Municipal
Income Fund.
If the Agreements are approved at the Meeting and certain conditions
required by the Agreements are satisfied, the Reorganizations are
expected to become effective on or about January 8, 1998 for Spartan
New York Municipal Income Fund and on or about January 15, 1998 for
Spartan New York Intermediate Municipal Income Fund. If shareholder
approval of any Agreement is delayed due to failure to meet a quorum
or otherwise, that Reorganization will become effective, if approved,
as soon as practicable thereafter.
In the event either Spartan New York Municipal Income Fund or Spartan
New York Intermediate Municipal Income Fund shareholders fail to
approve that fund's Agreement, that fund will continue to engage in
business as a registered investment company and the Board of Trustees
will consider other proposals for the reorganization or liquidation of
that Fund.
The following changes became effective April 1, 1997:
Spartan New York Municipal Income Fund and Spartan New York
Intermediate Municipal Income Fund closed to new accounts pending the
Reorganizations.
With respect to Spartan New York Municipal Income Fund and Spartan New
York Intermediate Municipal Income Fund, the following fees for
individual transactions have been eliminated: the $5.00 exchange fee,
the $5.00 wire fee, the $5.00 account closeout fee, and the $2.00
checkwriting fee for Spartan New York Intermediate Municipal Income
Fund. References to these fees throughout the prospectus are no longer
in effect with respect to Spartan New York Municipal Income Fund and
Spartan New York Intermediate Municipal Income Fund.
The following information replaces similar information found in
"Expenses" beginning on page 5:
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you may pay when you buy,
sell, or exchange shares of a fund. In addition, you may be charged an
annual account maintenance fee if your balance falls below $2,500. See
"Transaction Details," page 31 for an explanation of how and when
these charges apply.
<TABLE>
<CAPTION>
<S> <C>
MAXIMUM SALES CHARGE ON PURCHASES NONE
AND REINVESTED DISTRIBUTIONS
DEFERRED SALES CHARGE ON REDEMPTIONS NONE
REDEMPTION FEE (AS A % OF AMOUNT REDEEMED ON SHARES HELD LESS THAN 180 DAYS) NONE
FOR SPARTAN NEW YORK MONEY MARKET AND SPARTAN NEW YORK INTERMEDIATE
FOR SPARTAN NEW YORK INCOME .50%
EXCHANGE AND WIRE TRANSACTION FEES $5.00
(FOR SPARTAN NEW YORK MONEY MARKET ONLY)
CHECKWRITING FEE, PER CHECK WRITTEN $2.00
(APPLICABLE FOR SPARTAN NEW YORK MONEY MARKET)
ACCOUNT CLOSEOUT FEE (FOR SPARTAN NEW YORK MONEY MARKET ONLY) $5.00
ANNUAL ACCOUNT MAINTENANCE FEE $12.00
(FOR ACCOUNTS UNDER $2,500)
</TABLE>
THESE FEES ARE WAIVED (except for the redemption fee) if your account
balance at the time of the transaction is $50,000 or more.
EXAMPLES: Let's say, hypothetically, that each fund's annual return is
5% and that its operating expenses are exactly as just described. For
every $1,000 you invested, here's how much you would pay in total
expenses after the number of years indicated. Figures for Spartan New
York Money Market assume that you leave your account open, and than
assume that you close your account at the end of period:
SPARTAN NY INTERMEDIATE
AFTER 1 YEAR $ 6
AFTER 3 YEARS $ 18
AFTER 5 YEARS $ 31
AFTER 10 YEARS $ 69
SPARTAN NY INCOME
AFTER 1 YEAR $ 6
AFTER 3 YEARS $ 18
AFTER 5 YEARS $ 31
AFTER 10 YEARS $ 69
These examples illustrate the effect of expenses, but are not meant to
suggest actual or expected costs or returns, all of which may vary.
SUPPLEMENT TO THE FIDELITY NEW YORK MUNICIPAL FUNDS' MARCH 31, 1997
PROSPECTUS
PROPOSED REORGANIZATION. The Board of Trustees of Fidelity New York
Insured Municipal Income Fund has unanimously approved an Agreement
and Plan of Reorganization ("Agreement") between Fidelity New York
Insured Municipal Income Fund and Fidelity New York Municipal Income
Fund, a fund of Fidelity New York Municipal Trust.
The Agreement provides for the transfer of all of the assets and the
assumption of all of the liabilities of Fidelity New York Insured
Municipal Income Fund by Fidelity New York Municipal Income Fund
solely in exchange for the number of shares of Fidelity New York
Municipal Income Fund equal in value to the relative net asset value
of the outstanding shares of Fidelity New York Insured Municipal
Income Fund. Following such exchange, Fidelity New York Insured
Municipal Income Fund will distribute the Fidelity New York Municipal
Income Fund shares to its shareholders pro rata, in liquidation of
Fidelity New York Insured Municipal Income Fund as provided in the
Agreement (the transactions contemplated by the Agreement referred to
as the "Reorganization").
The Reorganization can be consummated only if, among other things, it
is approved by a majority vote of shareholders. A Special Meeting (the
"Meeting") of the Shareholders of Fidelity New York Insured Municipal
Income Fund will be held on December 17, 1997, and approval of the
Agreement will be voted on at that time. In connection with the
Meeting, Fidelity New York Insured Municipal Income Fund will be
filing with the Securities and Exchange Commission and delivering to
its shareholders of record a Proxy Statement describing the
Reorganization and a Prospectus for Fidelity New York Municipal Income
Fund.
If the Agreement is approved at the Meeting and certain conditions
required by the Agreement are satisfied, the Reorganization is
expected to become effective on or about January 22, 1998. If
shareholder approval of the Agreement is delayed due to failure to
meet a quorum or otherwise, the Reorganization will become effective,
if approved, as soon as practicable thereafter.
In the event Fidelity New York Insured Municipal Income Fund
shareholders fail to approve the Agreement, Fidelity New York Insured
Municipal Income Fund will continue to engage in business as a
registered investment company and the Board of Trustees will consider
other proposals for the reorganization or liquidation of Fidelity New
York Insured Municipal Income Fund.
The following changes became effective April 1, 1997:
Fidelity New York Insured Municipal Income Fund closed to new accounts
pending the Reorganization.
With respect to Fidelity New York Insured Municipal Income Fund and
Fidelity New York Municipal Income Fund, the minimum investments have
been changed to the following:
TO OPEN AN ACCOUNT $10,000
TO ADD TO AN ACCOUNT $1,000
Through regular investment plans $500
MINIMUM BALANCE $5,000
With respect to Fidelity New York Insured Municipal Income Fund and
Fidelity New York Municipal Income Fund, the minimum check amount has
been increased to $1,000.
References to the minimums throughout the prospectus are changed to
the above minimums with respect to Fidelity New York Insured Municipal
Income Fund and Fidelity New York Municipal Income Fund.
The following information replaces similar information found in
"Expenses" beginning on page 6:
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you pay when you buy or
sell shares of a fund. In addition, you may be charged an annual
account maintenance fee if your balance falls below $2,500. See
"Transaction Details," page 33 for an explanation of how and when
these charges apply.
MAXIMUM SALES CHARGE ON PURCHASES NONE
AND REINVESTED DISTRIBUTIONS
DEFERRED SALES CHARGE ON REDEMPTIONS NONE
EXCHANGE FEE NONE
ANNUAL ACCOUNT MAINTENANCE FEE $12.00
(FOR ACCOUNTS UNDER $2,500)
ANNUAL FUND OPERATING EXPENSES are paid out of each fund's assets.
Each fund pays a management fee to FMR. It also incurs other expenses
for services such as maintaining shareholder records and furnishing
shareholder statements and financial reports. The fund's expenses are
factored into its share price or dividends and are not charged
directly to shareholder accounts (see page 23).
The following figures are based on historical expenses, adjusted to
reflect current fees, and are calculated as a percentage of average
net assets.
NEW YORK INSURED
MANAGEMENT FEE (AFTER REIMBURSEMENT) 0.35%
12B-1 FEE NONE
OTHER EXPENSES 0.20%
TOTAL FUND OPERATING EXPENSES 0.55%
(AFTER REIMBURSEMENT)
NEW YORK INCOME
MANAGEMENT FEE (AFTER REIMBURSEMENT) 0.36%
12B-1 FEE NONE
OTHER EXPENSES 0.19%
TOTAL FUND OPERATING EXPENSES 0.55%
(AFTER REIMBURSEMENT)
EXAMPLES: Let's say, hypothetically, that each fund's annual return is
5% and that its operating expenses are exactly as just described. For
every $1,000 you invested, here's how much you would pay in total
expenses after the number of years indicated.
NEW YORK INSURED
AFTER 1 YEAR $ 6
AFTER 3 YEARS $ 18
AFTER 5 YEARS $ 31
AFTER 10 YEARS $ 69
NEW YORK INCOME
AFTER 1 YEAR $ 6
AFTER 3 YEARS $ 18
AFTER 5 YEARS $ 31
AFTER 10 YEARS $ 69
These examples illustrate the effect of expenses, but are not meant to
suggest actual or expected costs or returns, all of which may vary.
Effective April 1, 1997, FMR voluntarily agreed to implement an
expense cap for Fidelity New York Insured Municipal Income Fund and
Fidelity New York Municipal Income. FMR will reimburse the funds to
the extent that total operating expenses exceed 0.55%. Each fund has
entered into arrangements with its custodian and transfer agent
whereby interest earned on uninvested cash balances is used to reduce
custodian and transfer agent expenses. If these agreements were not in
effect, the management fee and total operating expenses would be 0.40%
and 0.60%, respectively for New York Insured and 0.40% and 0.59%,
respectively for New York Income. Expenses eligible for reimbursement
do not include interest, taxes, brokerage commissions, or
extraordinary expenses.
