SPARTAN(REGISTERED TRADEMARK)
NEW YORK MUNICIPAL
FUNDS
AND
FIDELITY
NEW YORK MUNICIPAL
MONEY MARKET FUND
ANNUAL REPORT
JANUARY 31, 1999
(fidelity_logo_graphic)(registered trademark)
CONTENTS
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING
STRATEGIES
SPARTAN NEW YORK MUNICIPAL
INCOME FUND
4 PERFORMANCE
7 FUND TALK: THE MANAGER'S
OVERVIEW
10 INVESTMENT CHANGES
11 INVESTMENTS
26 FINANCIAL STATEMENTS
SPARTAN NEW YORK MUNICIPAL
MONEY MARKET FUND
30 PERFORMANCE
32 FUND TALK: THE MANAGER'S
OVERVIEW
34 INVESTMENT CHANGES
35 INVESTMENTS
44 FINANCIAL STATEMENTS
FIDELITY NEW YORK MUNICIPAL
MONEY MARKET FUND
48 PERFORMANCE
50 FUND TALK: THE MANAGER'S
OVERVIEW
52 INVESTMENT CHANGES
53 INVESTMENTS
64 FINANCIAL STATEMENTS
NOTES 68 NOTES TO THE FINANCIAL
STATEMENTS
REPORT OF INDEPENDENT 74 THE AUDITOR'S OPINION.
ACCOUNTANTS
OTHER FUND INFORMATION 75
DISTRIBUTIONS 76
OF SPECIAL NOTE 77
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THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
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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.
PRESIDENT'S MESSAGE
(PHOTO_OF_EDWARD_C_JOHNSON_3D)
DEAR SHAREHOLDER:
After the first month of 1999, U.S. stock markets seem to have
maintained their momentum from 1998, as the S&P 500, the Dow and
NASDAQ all reached record highs in January. The technology sector, and
Internet stocks in particular, were the main contributors. In the bond
markets, domestic securities continued to trade at historically low
yields, while positive economic news helped credit-sensitive sectors
outperform Treasury bonds.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
The longer your investment time frame, the less likely it is that you
will be affected by short-term market volatility. A 10-year investment
horizon appropriate for saving for a college education, for example,
enables you to weather market cycles in a long-term fund, which may
have a higher risk potential, but also has a higher potential rate of
return.
An intermediate-length fund could make sense if your investment
horizon is two to four years, while 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. These
funds seek income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-8888, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you 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 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.
Total return reflects the change in value of an investment, assuming
reinvestment of the fund's dividend income and capital gains (the
profits earned upon the sale of securities that have grown in value).
You can also look at the fund's income, as reflected in its yield, to
measure performance. If Fidelity had not reimbursed certain fund
expenses, the total returns and dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
SPARTAN NY MUNICIPAL INCOME 6.45% 33.41% 113.45%
LB New York 4 Plus Year 7.42% 38.68% n/a
Municipal Bond
New York Municipal Debt Funds 5.79% 28.93% 107.49%
Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. 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 - a market
value-weighted index of New York investment-grade municipal bonds with
maturities of four years or more. 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 mutual funds with similar objectives tracked by Lipper Inc. The
past one year average represents a peer group of 99 mutual funds.
These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
SPARTAN NY MUNICIPAL INCOME 6.45% 5.94% 7.88%
LB New York 4 Plus Year 7.42% 6.76% n/a
Municipal Bond
New York Municipal Debt Funds 5.79% 5.19% 7.54%
Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a different figure than that
obtained by averaging the cumulative total returns and annualizing the
result.)
$10,000 OVER 10 YEARS
Spartan NY Muni Income LB Municipal Bond
00071 LB015
1989/01/31 10000.00 10000.00
1989/02/28 9920.69 9885.90
1989/03/31 9901.88 9862.27
1989/04/30 10195.53 10096.40
1989/05/31 10376.59 10306.11
1989/06/30 10523.17 10446.06
1989/07/31 10617.67 10588.23
1989/08/31 10561.43 10484.57
1989/09/30 10516.47 10453.33
1989/10/31 10575.07 10581.17
1989/11/30 10727.05 10766.35
1989/12/31 10799.47 10854.41
1990/01/31 10739.68 10803.07
1990/02/28 10810.57 10899.22
1990/03/31 10782.66 10902.49
1990/04/30 10666.69 10823.56
1990/05/31 10906.76 11059.83
1990/06/30 11052.86 11157.05
1990/07/31 11237.77 11321.06
1990/08/31 11052.57 11156.68
1990/09/30 11050.65 11163.04
1990/10/31 11115.76 11365.53
1990/11/30 11314.34 11594.09
1990/12/31 11349.36 11644.53
1991/01/31 11503.34 11800.80
1991/02/28 11576.19 11903.47
1991/03/31 11631.12 11907.75
1991/04/30 11796.39 12066.12
1991/05/31 11881.14 12173.39
1991/06/30 11916.00 12161.34
1991/07/31 12102.98 12309.46
1991/08/31 12251.01 12471.58
1991/09/30 12461.48 12633.96
1991/10/31 12589.42 12747.67
1991/11/30 12644.58 12783.23
1991/12/31 12868.20 13057.56
1992/01/31 12756.86 13087.33
1992/02/29 12811.41 13091.52
1992/03/31 12829.87 13096.36
1992/04/30 12952.41 13212.92
1992/05/31 13151.53 13368.44
1992/06/30 13412.47 13592.76
1992/07/31 13829.05 14000.27
1992/08/31 13650.68 13863.77
1992/09/30 13731.78 13954.44
1992/10/31 13517.97 13817.26
1992/11/30 13830.01 14064.73
1992/12/31 14023.52 14208.33
1993/01/31 14195.88 14373.58
1993/02/28 14750.89 14893.47
1993/03/31 14593.09 14736.04
1993/04/30 14740.57 14884.73
1993/05/31 14834.32 14968.38
1993/06/30 15086.03 15218.20
1993/07/31 15099.60 15238.14
1993/08/31 15446.58 15555.40
1993/09/30 15607.40 15732.57
1993/10/31 15619.73 15762.94
1993/11/30 15453.58 15624.07
1993/12/31 15831.88 15953.89
1994/01/31 15999.32 16136.08
1994/02/28 15523.94 15718.16
1994/03/31 14728.07 15078.12
1994/04/30 14847.75 15205.98
1994/05/31 15008.55 15337.81
1994/06/30 14825.23 15244.10
1994/07/31 15138.25 15523.53
1994/08/31 15197.30 15577.24
1994/09/30 14894.66 15348.56
1994/10/31 14541.75 15075.97
1994/11/30 14095.25 14803.40
1994/12/31 14563.05 15129.22
1995/01/31 15074.60 15561.61
1995/02/28 15591.71 16014.15
1995/03/31 15770.77 16198.15
1995/04/30 15801.63 16217.26
1995/05/31 16372.48 16734.76
1995/06/30 16172.51 16589.16
1995/07/31 16270.19 16746.43
1995/08/31 16505.56 16958.77
1995/09/30 16591.22 17066.12
1995/10/31 16899.56 17314.26
1995/11/30 17218.33 17601.51
1995/12/31 17413.17 17770.66
1996/01/31 17530.01 17904.83
1996/02/29 17348.23 17783.97
1996/03/31 17089.32 17556.69
1996/04/30 17035.74 17507.00
1996/05/31 17027.06 17500.00
1996/06/30 17242.35 17690.58
1996/07/31 17390.44 17851.56
1996/08/31 17337.52 17847.28
1996/09/30 17627.24 18097.14
1996/10/31 17849.50 18301.82
1996/11/30 18186.64 18636.74
1996/12/31 18074.34 18558.47
1997/01/31 18094.66 18593.54
1997/02/28 18283.15 18764.23
1997/03/31 17993.81 18514.10
1997/04/30 18160.19 18669.07
1997/05/31 18479.52 18949.85
1997/06/30 18677.01 19151.66
1997/07/31 19267.79 19682.17
1997/08/31 19029.66 19497.74
1997/09/30 19242.85 19729.18
1997/10/31 19383.45 19856.04
1997/11/30 19490.25 19972.79
1997/12/31 19831.75 20264.20
1998/01/31 20051.91 20473.32
1998/02/28 20016.46 20479.47
1998/03/31 20029.07 20497.49
1998/04/30 19857.17 20405.04
1998/05/31 20251.15 20728.06
1998/06/30 20312.99 20809.72
1998/07/31 20346.98 20861.96
1998/08/31 20715.62 21184.27
1998/09/30 21001.96 21448.23
1998/10/31 20986.86 21447.80
1998/11/30 21049.47 21523.08
1998/12/31 21083.05 21577.32
1999/01/29 21345.17 21833.88
IMATRL PRASUN SHR__CHT 19990131 19990212 143220 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Spartan New York Municipal Income Fund on January 31,
1989. As the chart shows, by January 31, 1999, the value of the
investment would have grown to $21,345 - a 113.45% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond Index - a market value-weighted index of
investment-grade municipal bonds with maturities of one year or more -
did over the same period. With dividends reinvested, the same $10,000
would have grown to $21,834 - a 118.34% increase.
(checkmark)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.
TOTAL RETURN COMPONENTS
YEARS ENDED JANUARY 31,
1999 1998 1997 1996 1995
Dividend returns 4.81% 5.36% 5.20% 5.93% 5.27%
Capital returns 1.64% 5.46% -1.98% 10.36% -11.05%
Total returns 6.45% 10.82% 3.22% 16.29% -5.78%
TOTAL RETURN COMPONENTS include both dividend returns and capital
returns. A dividend return reflects the actual dividends paid by the
fund. A capital 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 capital gains, if
any, paid by the fund are reinvested.
DIVIDENDS AND YIELD
PERIODS ENDED JANUARY 31, 1999 PAST 1 MONTH PAST 6 MONTHS PAST 1 YEAR
Dividends per share 5.01(cents) 30.09(cents) 60.23(cents)
Annualized dividend rate 4.57% 4.60% 4.67%
30-day annualized yield 3.96% - -
30-day annualized 6.93% - -
tax-equivalent yield
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
$12.91 over the past one month, $12.98 over the past six months and
$12.89 over the past one year, you can compare the fund's income over
these three periods. The 30-day annualized YIELD is a standard formula
for all bond 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 42.83% combined effective 1999 federal, state and New York City
tax bracket, but does not reflect the payment of the federal
alternative minimum tax, if applicable.
SPARTAN NEW YORK MUNICIPAL INCOME FUND
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Despite its overall high quality, the
municipal-bond market
underperformed U.S. Treasury
bonds during the 12-month period
ending January 31, 1999.
However, toward the tail end of the
period, the tax advantage that
municipal bonds provide attracted
investors, reversing a significant
portion of their underperformance.
During the 12-month period, the
Lehman Brothers Municipal Bond
Index - an index of approximately
48,000 investment-grade, fixed-rate,
tax-exempt bonds - returned
6.65%. By comparison, the Lehman
Brothers Aggregate Bond Index -
a widely followed measure of
taxable bond performance -
returned 8.08% during the period.
The municipal-bond market during
the past year was highlighted by
supply, as issuance fell just short of
the record $292 billion in muni-bond
issuance in 1993. Demand,
however, was less than
overwhelming. Part of this slack
demand can be attributed to the
global flight to quality during the
late summer and early fall. To
compound matters, investors
chased the attractive returns of
stocks when equity markets
recovered in the fourth quarter. As
supply trailed off late in the period,
however, municipal bonds began to
rally and their performance
improved relative to Treasuries.
(photograph of Norm Lind)
An interview with Norm Lind, Portfolio Manager of Spartan New York
Municipal Income Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. For the 12-month period that ended January 31, 1999, the fund had a
total return of 6.45%. To get a sense of how the fund did relative to
its competitors, the New York municipal debt funds average returned
5.79% for the same 12-month period, according to Lipper Inc.
Additionally, the Lehman Brothers New York 4 Plus Year Municipal Bond
Index - which tracks the types of securities in which the fund invests
- - returned 7.42% for the same one-year period.
Q. WHAT HELPED THE FUND BEAT ITS COMPETITORS DURING THE YEAR?
A. There were three primary reasons why the fund outpaced its peers
during the past 12 months. First, the fund held more bonds issued by
New York City than many of its competitors. The city's economy
remained quite strong and its fiscal situation remained healthy in
tandem. The second reason for the fund's relatively strong performance
was its larger-than-average stake in bonds issued by New York state,
which posted strong performance for many of the same reasons that New
York City's bonds did.
Q. WHAT WAS THE THIRD FACTOR THAT HELPED THE FUND'S PERFORMANCE?
A. The fund also had a relatively large weighting compared to its
peers in non-callable bonds, which can't be redeemed by their issuers
before maturity, and performed well because of that feature. Like a
homeowner refinancing a mortgage, municipal-bond issuers often "call"
- - or redeem - their loans when interest rates fall. Although
refinancing is a positive for the homeowners and municipal issuers, it
can be a negative for bondholders. After a bond is called, bondholders
often are faced with reinvesting the proceeds, which they generally
must do at lower interest rates. As interest rates declined throughout
much of the later stages of 1998, the demand for non-callable
securities was quite strong as investors gravitated towards bonds that
were protected against inopportune calls. That strong demand helped
non-callable bonds outpace most bonds that didn't share the same call
protection.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. Yes, there was one disappointment. My focus on non-callable bonds
meant that I missed out on some of the appreciation that occurred in
bonds that were eligible for advance refunding. That's a process
whereby a municipal-bond issuer retires some older municipal bonds,
issues new bonds at lower prevailing rates, and uses proceeds from the
sale of the new bonds to back the old ones with U.S. Treasuries. When
the original bonds get that Treasury backing, they assume Treasuries'
higher AAA credit rating, and generally appreciate in price as a
result. In particular, I didn't own any bonds issued by the New York
Power Authority, which performed quite well when they were advance
refunded.
Q. HOW WAS THE FUND DIVIDED AMONG BONDS WITH VARIOUS MATURITIES?
A. For much of the past year, the fund's investments were concentrated
in intermediate bonds with maturities of between five and 15 years. I
preferred those bonds because I felt that they offered an appropriate
amount of compensation - in the form of yield - given their
interest-rate sensitivity, which generally increases the longer a
bond's maturity. The flip side was that I didn't think that
longer-term bonds - with maturities of 15 years or more - offered
enough incremental yield over intermediate-maturity securities to
compensate for their added interest-rate sensitivity. More recently,
however, longer-term bonds have started to offer more attractive
yields - more attractive than they have in several years - so I began
to add some to the portfolio.
Q. WHAT'S AHEAD FOR THE NEW YORK MUNICIPAL MARKET?
A. The state is about to enter its budget process, which, if delayed,
may offer an attractive opportunity for the fund. In years past,
budget delays meant the state was prevented from issuing any new debt.
That created somewhat of a scarcity of municipals issued by the state.
Because supply was limited, existing state-issued bonds generally
performed well during the stalled budget process. If I believe that
scarcity will occur again because of budget delays, I may increase the
fund's stake in those bonds. I also believe that municipals may be in
for a fairly strong period of performance in 1999 as they play
catch-up to the U.S. Treasury market, which they lagged during 1998.
That said, the direction of interest rates will be the primary
determinant of municipal performance, and it's anybody's guess where
they will be six months or a year from now.
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.
(checkmark)FUND FACTS
GOAL: high current income
free from federal, state and
New York City income taxes
by investing primarily in
investment-grade New York
municipal securities
FUND NUMBER: 071
TRADING SYMBOL: FTFMX
START DATE: July 10, 1984
SIZE: as of January 31,
1999, more than $1.2
billion
MANAGER: Norm Lind, since
1993; manager, various
Fidelity and Spartan municipal
income funds; joined Fidelity
in 1986
NORM LIND ON DEVELOPMENTS
IN TECHNOLOGY AND THEIR EFFECT
ON MUNICIPAL-BOND ISSUERS:
"I'm currently keeping an eye on
two technology-related
developments and their potential
effect on municipal bond issuers.
The first is the rise of the Internet.
As more and more people shop for
goods and services online, it's
uncertain to what extent states and
municipalities will lose out on
sales-tax revenue. The question is
whether states or municipalities
will be able to tax Internet-based
sales that emanate from those
states or municipalities. Although
there's no clear sense right now of
the magnitude of potential
problems deriving from this issue,
I'm factoring it in when I evaluate
the attractiveness of issuers,
especially those that are heavily
reliant on sales-tax revenues.
"The second technology-related
issue I'm watching is the potential
problems stemming from the
so-called Year 2000 glitch, or `Y2K.'
Here I'm focusing on a couple of
things. The first is whether the
problems that arise from Y2K will
seriously compromise the
operations of a municipal issuer.
Second, I'll be watching the extent
to which municipal issuers
adequately budget for Y2K fixes.
How individual municipalities
meet these technology-related
challenges could affect their fiscal
health and ultimately, their
credit-worthiness."
SPARTAN NEW YORK MUNICIPAL INCOME FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP FIVE SECTORS AS OF
JANUARY 31, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE SECTORS 6 MONTHS AGO
General Obligations 36.2 37.1
Special Tax 16.7 13.7
Transportation 12.4 11.9
Education 7.6 8.0
Electric Utilities 6.7 4.5
AVERAGE YEARS TO MATURITY AS
OF JANUARY 31, 1999
6 MONTHS AGO
Years 13.7 14.6
</TABLE>
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 JANUARY 31, 1999
6 MONTHS AGO
Years 7.3 7.5
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION
(MOODY'S RATINGS)
AS OF JANUARY 31, 1999
Aaa 42.1%
Aa, A 42.0%
Baa 14.0%
Not Rated 0.4%
Short-term
investments 1.5%
Row: 1, Col: 1, Value: 41.8
Row: 1, Col: 2, Value: 41.7
Row: 1, Col: 3, Value: 14.0
Row: 1, Col: 4, Value: 1.0
Row: 1, Col: 5, Value: 1.5
Row: 1, Col: 6, Value: nil
AS OF JULY 31, 1998
Aaa 39.6%
Aa, A 40.8%
Baa 17.7%
Not Rated 0.6%
Short-term
investments 1.3%
Row: 1, Col: 1, Value: 39.4
Row: 1, Col: 2, Value: 40.6
Row: 1, Col: 3, Value: 17.7
Row: 1, Col: 4, Value: 1.0
Row: 1, Col: 5, Value: 1.3
Row: 1, Col: 6, Value: nil
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
AMOUNTS SHOWN ARE AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
SPARTAN NEW YORK MUNICIPAL INCOME FUND
INVESTMENTS JANUARY 31, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS - 98.5%
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - 95.1%
Albany County Gen. Oblig. Aaa $ 1,275,000 $ 1,401,621
5.85% 6/1/13 (FGIC Insured)
Buffalo Swr. Auth. Rev. Rfdg. Aaa 2,700,000 2,760,831
(Swr. Sys.) Series G, 5%
7/1/12 (FGIC Insured)
Canandaigua City School Aaa 515,000 562,596
District Rfdg. 5.25% 6/1/07
(AMBAC Insured)
Cherry Valley Central School
District Unltd. Tax:
7.8% 5/1/14 (MBIA Insured) Aaa 435,000 591,539
7.8% 5/1/15 (MBIA Insured) Aaa 435,000 591,248
7.8% 5/1/16 (MBIA Insured) Aaa 435,000 591,918
7.8% 5/1/17 (MBIA Insured) Aaa 435,000 594,458
7.8% 5/1/18 (MBIA Insured) Aaa 434,000 595,105
Erie County (Wtr. Auth. Impt. AA 2,000,000 2,175,820
& Extension Rev.) Series 3,
6.1% 12/1/04 (Escrowed to
Maturity) (e)
Erie County Gen. Oblig.
Series A:
6% 2/1/04 (FGIC Insured) Aaa 1,100,000 1,213,564
6% 2/1/05 (FGIC Insured) Aaa 1,000,000 1,117,400
6% 2/1/06 (FGIC Insured) Aaa 1,030,000 1,165,394
Long Island Pwr. Auth. Elec.
Sys. Rev.:
Bonds (New York Elec. Rev. Aaa 10,000,000 10,293,400
Proj.) Series 8, 4.5%,
tender 4/1/04 (AMBAC Insured)
Series A:
5.5% 12/1/29 Baa1 16,335,000 16,804,631
5.75% 12/1/24 Baa1 25,000,000 26,701,750
Metropolitan Trans. Auth.
Commuter Facilities Rev.:
Rfdg. (Svc. Contract) Series Baa1 2,960,000 3,216,247
R, 5.4% 7/1/10
Series E, 5.5% 7/1/09 (AMBAC Aaa 2,705,000 2,983,804
Insured)
Metropolitan Trans. Auth. Aaa 3,000,000 3,076,890
Dedicated Tax Fund Series A,
5.25% 4/1/26 (MBIA Insured)
Metropolitan Trans. Auth.
Svc. Contract:
(Commuter Facilities) Series Baa1 5,400,000 6,368,598
3, 7.375% 7/1/08
(Trans. Facilities) Series 3, Baa1 1,830,000 2,158,247
7.375% 7/1/08
Rfdg. (Trans. Facilities):
Series 5, 6.9% 7/1/05 Baa1 4,100,000 4,465,884
Series 7:
0% 7/1/10 Baa1 9,500,000 5,743,795
5.45% 7/1/07 Baa1 4,930,000 5,393,124
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
Metropolitan Trans. Auth.
Trans. Facilities Rev.:
Rfdg.:
(Svc. Contract) Series R, Baa1 $ 4,000,000 $ 4,344,760
5.3% 7/1/09
Series K, 6.3% 7/1/06 (MBIA Aaa 10,150,000 11,734,111
Insured)
Series N, 0% 7/1/11 (FGIC Aaa 5,980,000 3,464,094
Insured)
Series A:
5.75% 7/1/21 (MBIA Insured) Aaa 10,000,000 10,869,400
6% 7/1/16 (FSA Insured) Aaa 9,090,000 10,139,622
Monroe County Gen. Oblig.:
(Pub. Impt.):
6.1% 3/1/04 (MBIA Insured) Aaa 870,000 928,568
6.5% 6/1/04 Aa2 65,000 73,556
6.5% 6/1/04 (Escrowed to Aa2 2,245,000 2,552,116
Maturity) (e)
6.5% 6/1/05 Aa2 115,000 132,311
6.5% 6/1/05 (Escrowed to Aa2 3,335,000 3,857,328
Maturity) (e)
6.5% 6/1/06 Aa2 120,000 139,712
6.5% 6/1/06 (Escrowed to Aa2 3,625,000 4,233,021
Maturity) (e)
6.5% 6/1/07 (AMBAC Insured) Aaa 50,000 58,970
6.5% 6/1/07 (AMBAC Insured) Aaa 950,000 1,120,430
(Escrowed to Maturity) (e)
7% 6/1/03 (FGIC Insured) Aaa 1,000,000 1,132,100
7% 6/1/04 (FGIC Insured) Aaa 2,150,000 2,482,906
6% 6/1/04 Aa2 1,510,000 1,670,724
6% 6/1/05 Aa2 2,155,000 2,416,617
Monroe Woodbury Central
School District:
5.625% 5/15/22 (MBIA Insured) Aaa 1,245,000 1,321,480
5.625% 5/15/24 (MBIA Insured) Aaa 2,645,000 2,807,482
Muni. Assistance Corp. for
New York City Rfdg.:
Series D, 6% 7/1/05 (AMBAC Aaa 10,000,000 11,252,700
Insured)
Series E:
6% 7/1/03 Aa2 1,250,000 1,366,538
6% 7/1/04 Aa2 14,500,000 16,020,905
6% 7/1/05 Aa2 12,945,000 14,503,966
6% 7/1/06 Aa2 5,000,000 5,667,150
Series I:
5.25% 7/1/02 Aa2 2,250,000 2,365,155
5.5% 7/1/04 (AMBAC Insured) Aa2 8,000,000 8,645,200
Series J, 5.75% 7/1/03 Aa2 1,000,000 1,083,140
Series L, 6% 7/1/07 Aa2 5,000,000 5,705,650
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
Nassau County Gen. Oblig.:
(Gen. Impt.):
Series R, 5.125% 11/1/05 Aaa $ 2,565,000 $ 2,752,707
(FGIC Insured)
Series T, 5.2% 9/1/11 (FGIC Aaa 2,695,000 2,867,237
Insured)
Rfdg.:
(Combined Swr. District) Aaa 350,000 381,514
Series F, 5.3% 7/1/07 (MBIA
Insured)
(Gen. Impt.) Series A, 6.5% Aaa 4,000,000 4,688,040
5/1/07 (FGIC Insured)
Series A, 6% 7/1/09 (FGIC Aaa 3,320,000 3,827,628
Insured)
Series P, 6.3% 11/1/03 (FGIC Aaa 1,000,000 1,111,790
Insured)
Series U:
5.25% 11/1/11 (AMBAC Insured) Aaa 1,500,000 1,609,245
5.25% 11/1/15 (AMBAC Insured) Aaa 2,150,000 2,237,054
New York City Edl. Aaa 1,895,000 2,102,806
Construction Fund Series A,
6.25% 10/1/03 (MBIA Insured)
New York City Gen. Oblig.:
Rfdg.:
Series A:
5.3% 8/1/12 A3 6,000,000 6,346,860
6.25% 8/1/08 A3 1,000,000 1,146,640
7% 8/1/03 A3 2,000,000 2,256,120
Series B:
5.7% 8/15/02 A3 2,260,000 2,409,160
5.7% 8/15/02 (Escrowed to A3 75,000 80,181
Maturity) (e)
6.2% 8/15/06 A3 2,195,000 2,483,050
Series C:
5.7% 8/15/02 A3 1,310,000 1,396,460
6% 2/1/22 A3 3,500,000 3,817,310
Series E:
6% 8/1/26 A3 3,455,000 3,765,950
6.2% 8/1/07 (MBIA Insured) Aaa 1,750,000 2,020,043
6.5% 2/15/06 A3 1,000,000 1,146,720
Series F, 6% 8/1/16 A3 7,750,000 8,504,230
Series G:
5.25% 8/1/11 A3 5,000,000 5,298,300
5.35% 8/1/13 A3 5,000,000 5,270,350
Series H, 6% 8/1/17 A3 1,000,000 1,100,840
Series I, 5.875% 3/15/12 A3 10,000,000 10,983,400
Series J, 6.125% 8/1/12 A3 1,000,000 1,126,060
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York City Gen. Oblig.: -
continued
Series A-1, 6.25% 8/1/03 Aaa $ 9,200,000 $ 10,155,696
(AMBAC Insured)
Series B:
5.875% 8/15/13 A3 3,870,000 4,261,721
6.5% 8/15/11 A3 1,000,000 1,199,390
7.5% 2/1/02 A3 1,000,000 1,105,580
7.5% 2/1/03 A3 5,000,000 5,595,050
7.5% 2/1/07 A3 5,500,000 6,126,340
Series C, 6.4% 8/1/03 A3 6,000,000 6,586,980
Series D:
5.25% 8/1/13 A3 2,500,000 2,612,675
5.25% 8/1/21 (MBIA Insured) Aaa 6,000,000 6,128,580
5.375% 8/1/17 A3 2,500,000 2,576,825
5.75% 2/15/08 A3 1,000,000 1,090,600
Series E:
6% 8/1/08 (FGIC Insured) Aaa 8,000,000 9,151,280
6% 8/1/26 (Pre-Refunded to A3 295,000 338,235
8/1/2006 @ 101.5) (e)
Series F, 5.75% 2/1/15 A3 2,500,000 2,688,225
Series G:
6% 10/15/26 A3 4,950,000 5,427,923
6% 10/15/26 (Pre-Refunded to A3 50,000 57,638
10/15/2007 @ 101) (e)
Series H:
5.5% 8/1/12 A3 9,000,000 9,693,450
7% 2/1/05 A3 675,000 743,425
7% 2/1/05 (Pre-Refunded to Aaa 1,355,000 1,507,031
2/1/2002 @ 101.5) (e)
7% 2/1/06 A3 420,000 462,575
Series I, 6.125% 4/15/11 A3 25,000,000 28,342,240
Series L, 5.75% 8/1/12 A3 3,700,000 4,055,237
New York City Ind. Dev. Agcy. Aaa 1,000,000 1,143,560
Civic Fac. Rev. (USTA Nat'l.
Tennis Ctr. Proj.) 6.4%
11/15/08 (FSA Insured)
New York City Ind. Dev. Agcy. Aaa 2,900,000 3,193,277
Ind. Dev. Rev. (Japan
Airlines Co. Ltd. Proj.)
Series 1991, 6% 11/1/15
(FSA Insured) (d)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York City Ind. Dev. Agcy.
Spl. Facilities Rev.:
(American Airlines, Inc. Baa2 $ 10,000,000 $ 11,171,100
Proj.) 6.9% 8/1/24 (d)
(Term. One Group Assoc. Proj.):
5.7% 1/1/04 (d) A3 1,500,000 1,603,845
6% 1/1/08 (d) A3 500,000 544,275
New York City Muni. Wtr. Fin.
Auth.:
Series B:
5.375% 6/15/07 (AMBAC Insured) Aaa 500,000 539,825
5.5% 6/15/27 (MBIA Insured) Aaa 7,775,000 8,135,682
5.875% 6/15/26 A2 21,250,000 22,734,313
Series C, 7% 6/15/16 (FGIC Aaa 500,000 548,700
Insured) (Pre-Refunded to
6/15/2001 @ 101.5) (e)
New York City Transitional
Fin. Auth. Rev.:
(Future Tax):
2nd Series A, 5% 8/15/15 Aa3 3,375,000 3,428,798
Series A, 5.125% 8/15/21 Aa3 20,000,000 20,177,400
Series B, 4.75% 11/15/16 Aa3 11,470,000 11,278,910
Series C, 5.25% 5/1/13 Aa3 10,000,000 10,630,800
New York City Trust Cultural
Resources Rev.:
(American Museum of Natural Aaa 4,850,000 5,138,672
History) Series A, 5.65%
4/1/22 (MBIA Insured)
(New York Botanical Garden) Aaa 1,250,000 1,349,988
5.75% 7/1/16 (MBIA Insured)
New York State Dorm. Auth.
Lease Rev.:
(State Univ. Dorm.
Facilities) Series A:
5.3% 7/1/24 (AMBAC Insured) Aaa 3,150,000 3,229,727
6% 7/1/05 (AMBAC Insured) (b) Aaa 2,240,000 2,516,528
Rfdg. (State Univ. Dorm. Aaa 7,370,000 8,063,443
Facilities) Series A, 6%
7/1/03 (AMBAC Insured)
New York State Dorm. Auth.
Rev.:
(Barnard College) 5.25% Aaa 4,625,000 4,745,990
7/1/26 (AMBAC Insured)
(Champlain Valley Physicians):
6% 7/1/08 (Connie Lee Insured) AAA 600,000 690,024
6% 7/1/09 (Connie Lee Insured) AAA 370,000 427,591
6% 7/1/10 (Connie Lee Insured) AAA 250,000 289,403
(City Univ. Sys. Consolidated):
2nd Series A, 5.75% 7/1/07 Aaa 1,965,000 2,215,007
(MBIA Insured)
Series 1, 5% 7/1/11 (MBIA Aaa 11,095,000 11,672,384
Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth.
Rev.: - continued
(City Univ. Sys. Consolidated):
Series A:
5.5% 7/1/04 Baa1 $ 2,000,000 $ 2,147,120
5.5% 7/1/05 Baa1 1,000,000 1,083,390
5.75% 7/1/09 (MBIA Insured) Aaa 5,000,000 5,673,350
Series C:
6.25% 7/1/05 (AMBAC Insured) Aaa 6,320,000 7,189,379
7.5% 7/1/10 Baa1 4,000,000 4,899,520
Series D, 7% 7/1/09 Baa1 6,000,000 7,010,100
5.5% 7/1/16 (AMBAC Insured) Aaa 2,500,000 2,655,300
(Columbia Univ.) Series A, Aaa 9,700,000 10,997,472
5.75% 7/1/09
(Ideal Senior Living Hsg.) Aaa 2,000,000 2,077,080
7.625% 8/1/28 (MBIA Insured)
(Pre-Refunded to 2/1/1999 @
102) (e)
(Ithaca College) 5.25% 7/1/26 Aaa 9,805,000 10,061,499
(AMBAC Insured)
(Judicial Facilities Lease) Baa1 2,000,000 2,158,120
Series B, 7% 4/15/16
(Mental Health Svcs. A3 3,495,000 4,155,870
Facilities Impt.) Series B,
6.5% 8/15/10
(Mental Health Svcs.
Facilities):
Series A:
5.75% 8/15/11 A3 3,000,000 3,340,380
6% 2/15/01 A3 500,000 523,620
Series D, 4.75% 2/15/25 (MBIA Aaa 10,000,000 9,583,400
Insured)
(New York Hosp. Med. Ctr.) Aaa 5,500,000 6,002,810
Series B, 5.25% 2/1/07
(AMBAC Insured)
(New York Univ.) Series A:
5.75% 7/1/15 (MBIA Insured) Aaa 1,250,000 1,418,938
5.75% 7/1/27 (MBIA Insured) Aaa 5,000,000 5,717,400
(Saint Josephs Hosp. Health
Ctr.):
6% 7/1/08 (MBIA Insured) Aaa 1,260,000 1,450,121
6% 7/1/09 (MBIA Insured) Aaa 1,500,000 1,718,100
(Saint Vincent's Hosp. & Med.
Ctr.):
6% 2/1/03 (AMBAC Insured) Aaa 1,820,000 1,971,297
6% 8/1/03 (AMBAC Insured) Aaa 1,875,000 2,050,519
(Univ. of Rochester-Strong
Memorial Hosp.):
5.1% 7/1/04 A1 1,470,000 1,551,218
5.2% 7/1/05 A1 1,000,000 1,063,080
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth.
Rev.: - continued
Rfdg.:
(City Univ. Sys. Baa1 $ 500,000 $ 555,665
Consolidated) Series A,
5.75% 7/1/07
(City Univ.) Series U, 6.25% Baa1 525,000 574,991
7/1/03
(Colgate Univ.):
6% 7/1/16 (MBIA Insured) Aaa 1,900,000 2,203,867
6% 7/1/21 (MBIA Insured) Aaa 2,500,000 2,921,075
(FIT Student Hsg.):
5.75% 7/1/03 (AMBAC Insured) Aaa 1,590,000 1,723,544
5.75% 7/1/04 (AMBAC Insured) Aaa 1,680,000 1,841,868
5.75% 7/1/05 (AMBAC Insured) Aaa 1,650,000 1,830,411
5.75% 7/1/06 (AMBAC Insured) Aaa 1,500,000 1,681,335
(Jamaica Hosp.) Series F, Aaa 6,935,000 7,155,672
5.2% 2/15/13 (MBIA Insured)
(Manhattanville College) 0% Aaa 2,175,000 1,331,296
7/1/10 (MBIA Insured)
(Mental Health Svcs. A3 2,550,000 2,839,323
Facilities) Series B, 5.75%
2/15/11
(New York & Presbyterian Aaa 5,000,000 5,156,750
Hosp.) 4.4% 8/1/13 (AMBAC
Insured) (Fed. Hsg.
Administration Insured)
(Rochester Institute of Aaa 4,375,000 4,496,625
Technology) 5.25% 7/1/22
(MBIA Insured)
(Second Hosp.) Series E, 5% Aaa 3,500,000 3,686,970
2/15/10 (MBIA Insured)
(State Univ. Edl. Facilities):
Series A:
6.5% 5/15/05 A3 7,080,000 8,083,448
6.5% 5/15/06 A3 3,400,000 3,937,268
Series B:
5.25% 5/15/05 A3 2,250,000 2,413,575
5.25% 5/15/11 (FGIC Insured) Aaa 2,950,000 3,226,150
7.375% 5/15/14 A3 275,000 292,383
7.5% 5/15/11 A3 3,445,000 4,366,159
5.5% 5/15/09 A3 3,000,000 3,308,820
(Univ. of Rochester) Series A:
5% 7/1/10 (MBIA Insured) Aaa 2,000,000 2,129,460
5% 7/1/11 (MBIA Insured) Aaa 1,570,000 1,659,066
5% 7/1/12 (MBIA Insured) Aaa 1,805,000 1,897,380
5% 7/1/27 (MBIA Insured) Aaa 16,475,000 16,467,916
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth.
Rev.: - continued
Rfdg.:
(Univ. of Rochester) Series A:
5.25% 7/1/13 (MBIA Insured) Aaa $ 1,000,000 $ 1,065,490
Series F, 5.1% 2/15/12 (MBIA Aaa 3,605,000 3,802,987
Insured)
New York State Energy Aaa 1,000,000 1,046,760
Research & Dev. Auth. Rfdg.
(Brooklyn Union Gas Co.
Proj.) Series A, 5.5% 1/1/21
(MBIA Insured)
New York State Energy
Research & Dev. Auth. Elec.
& Gas Poll. Cont. Rev.:
(Central Hudson Gas) Series Aaa 2,250,000 2,372,603
B, 7.375% 10/1/14 (FGIC
Insured), LOC Morgan
Guaranty Trust Co., NY
Rfdg. (St. Elec. & Gas Corp.) Aaa 1,000,000 1,136,830
Series E, 5.9% 12/1/06 (MBIA
Insured)
New York State Energy A1 10,600,000 11,486,902
Research & Dev. Auth.
Facilities Rev. Rfdg.
(Consolidated Edison Co.)
Series A, 6.1% 8/15/20
New York State Envir.
Facilities Corp. Poll. Cont.
Rev. (State Wtr. Revolving
Fund):
Series A:
6.8% 6/15/01 Aa2 2,000,000 2,150,900
6.9% 6/15/02 Aaa 265,000 289,780
6.9% 6/15/02 (Pre-Refunded to Aaa 835,000 918,308
6/15/2001 @ 102) (e)
7% 6/15/12 Aaa 190,000 207,693
Series B, 5.2% 5/15/14 Aaa 2,220,000 2,390,030
Series C, 5.85% 7/15/15 Aaa 3,060,000 3,366,459
Series D:
5.9% 5/15/01 Aaa 1,000,000 1,054,640
6.3% 5/15/05 Aaa 2,000,000 2,285,320
6.3% 11/15/05 Aaa 2,725,000 3,129,799
Series E:
6.25% 6/15/05 Aa1 1,200,000 1,359,672
6.5% 6/15/14 Aaa 130,000 140,152
New York State Envir. Baa1 12,500,000 13,101,375
Facilities Corp. Resource
Recovery Rev. (Huntington
Proj.) Series A, 7.5%
10/1/12 (d)
New York State Gen. Oblig.:
Rfdg.:
Series F, 5.25% 9/15/11 A2 10,150,000 10,965,553
7.5% 11/15/00 A2 1,000,000 1,072,630
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Gen. Oblig.: -
continued
5.5% 7/15/12 A2 $ 1,000,000 $ 1,089,160
New York State Hsg. Fin. - 4,660,000 4,754,551
Agcy. 8.25% 5/1/09
New York State Hsg. Fin. Aaa 3,955,000 4,136,060
Agcy. Hsg. Proj. Mtg. Rev.
(Nursing Home & Health Care
Proj.) Series A, 4.6%
11/1/06 (MBIA Insured)
New York State Local Govt.
Assistance Corp.:
Rfdg.:
Series A:
5% 4/1/10 (FGIC Insured) Aaa 5,000,000 5,346,050
5% 4/1/13 (FGIC Insured) Aaa 3,500,000 3,636,710
5% 4/1/14 (FGIC Insured) Aaa 5,000,000 5,172,400
Series C, 5.5% 4/1/17 A3 14,675,000 15,743,340
Series E, 5.25% 4/1/16 A3 23,600,000 25,172,704
Series A, 5.25% 4/1/15 (AMBAC Aaa 5,000,000 5,212,250
Insured)
Series B, 6% 4/1/18 A3 14,245,000 15,534,030
(Pre-Refunded to 4/1/2002 @
102) (e)
Series D, 5.375% 4/1/14 A3 4,000,000 4,284,280
New York State Med. Care
Facilities Fin. Agcy. Rev.:
(Long-Term. Health Care) Aaa 1,170,000 1,289,235
Series A, 6.8% 11/1/14 (FSA
Insured)
(Mary Imogene Basset Hosp.) Aaa 2,290,000 2,520,397
Series A, 7.125% 11/1/20
(MBIA Insured) (Pre-Refunded
to 5/1/2001 @ 102) (e)
(Mental Health Svcs.
Facilities):
Series A:
7.5% 2/15/21 Baa1 50,000 54,112
7.5% 2/15/21 (Pre-Refunded to Aaa 85,000 93,554
2/15/2001 @ 102) (e)
Series B, 7.875% 8/15/20 Aaa 755,000 822,376
(Pre-Refunded to 8/15/2000
@ 102) (e)
Series D, 7.4% 2/15/18 Baa1 450,000 498,128
(North Shore Univ. Hosp. Mtg. Aaa 6,000,000 6,517,140
Proj.) 7.2% 11/1/20 (MBIA
Insured) (Pre-Refunded to
11/1/2000 @ 102) (e)
Rfdg.:
(Mental Health Svcs. A3 1,735,000 1,774,593
Facilities) Series A, 8.875%
8/15/07
(Presbyterian Hosp.) Series Aa2 3,000,000 3,088,620
A, 5.25% 8/15/14
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Med. Care
Facilities Fin. Agcy. Rev.:
- - continued
Series A:
7.25% 11/1/11 (MBIA Insured) Aaa $ 890,000 $ 954,338
7.25% 11/1/11 (MBIA Insured) Aaa 2,310,000 2,511,062
(Pre-Refunded to 11/1/2000 @
102) (e)
New York State Mtg. Agcy.
Homeowner Mtg. Rev.
(Homeowner Mtg.):
Series 53, 5.9% 10/1/17 Aa2 2,000,000 2,103,940
Series 69, 4.7% 4/1/24 (d) Aa2 6,040,000 6,086,085
Series HH-3, 7.95% 4/1/22 (d) Aa2 2,500,000 2,613,050
Series SS, 7.95% 10/1/22 (d) Aa2 1,365,000 1,435,502
5.5% 4/1/19 (AMBAC Insured) Aaa 4,500,000 4,586,445
(d)
New York State Pwr. Auth. Aa2 250,000 292,335
Rev. & Gen. Purp. Rfdg.
Series W, 6.5% 1/1/08
(Escrowed to Maturity) (e)
New York State Thruway Auth.
Gen. Rev.:
Rfdg. Series E, 5.25% 1/1/12 Aa3 5,410,000 5,783,993
Series D, 5.375% 1/1/27 Aa3 3,000,000 3,106,920
New York State Thruway Auth.
Hwy. & Bridge Trust Fund:
Series A:
5.25% 4/1/16 (AMBAC Insured) Aaa 5,175,000 5,354,676
6.25% 4/1/04 (MBIA Insured) Aaa 7,840,000 8,745,598
Series B:
5.5% 4/1/09 (FSA Insured) Aaa 2,000,000 2,208,700
6% 4/1/03 (AMBAC Insured) Aaa 9,240,000 10,062,914
6% 4/1/04 (MBIA Insured) Aaa 11,195,000 12,357,825
6.4% 4/1/04 (FGIC Insured) Aaa 1,000,000 1,122,490
New York State Thruway Auth.
Svc. Contract Rev.:
(Local Hwy. & Bridge) 5.75% Baa1 13,700,000 14,481,311
4/1/16
Rfdg. (Local Hwy. & Bridge) Baa1 4,000,000 4,462,240
6% 4/1/11
New York State Urban Dev.
Corp. Rev.:
(Correctional Cap. Baa1 1,455,000 1,612,256
Facilities) Series 5, 5.9%
1/1/08
(Sports Facilities Assistance Aaa 15,000 17,225
Prog.) Series A, 6.25%
4/1/06 (MBIA Insured)
Rfdg.:
(Correctional Cap. Facilities):
Series A, 6.3% 1/1/03 Baa1 700,000 760,368
5.625% 1/1/07 (AMBAC Insured) Aaa 2,000,000 2,161,380
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Urban Dev.
Corp. Rev.: - continued
Rfdg.:
(Syracuse Univ. Ctr.) 5.2% Baa1 $ 1,000,000 $ 1,046,700
1/1/03
Niagara Falls Wtr. Treatment
Plant:
(Pub. Impt.):
7.5% 3/1/08 (MBIA Insured) Aaa 995,000 1,259,242
7.5% 3/1/10 (MBIA Insured) Aaa 1,155,000 1,497,931
7.5% 3/1/11 (MBIA Insured) Aaa 1,245,000 1,635,034
7.5% 3/1/16 (MBIA Insured) Aaa 1,060,000 1,410,468
7.5% 3/1/17 (MBIA Insured) Aaa 1,200,000 1,602,876
7% 11/1/13 (MBIA Insured) (d) Aaa 1,000,000 1,161,590
North Hempstead Gen. Oblig. Aaa 2,000,000 2,280,720
Rfdg. Series B, 6.1% 4/1/06
(FGIC Insured)
Onondaga County Ind. Dev. Aaa 9,000,000 10,043,910
Agcy. Swr. Facilities Rev.
(Bristol-Meyers Squibb Co.
Proj.) 5.75% 3/1/24 (d)
Rockland County Gen. Oblig. Aaa 1,475,000 1,662,045
6% 8/15/05 (AMBAC Insured)
Suffolk County Gen. Oblig.:
Rfdg. (Southwest Swr. Aaa 4,570,000 5,024,304
District) 6% 2/1/04 (MBIA
Insured)
Series A, 6% 8/1/05 (AMBAC Aaa 3,380,000 3,789,825
Insured)
Suffolk County Ind. Dev. BBB 940,000 1,040,411
Agcy. Civic Fac. Rev.
(Dowling College) 8.25%
12/1/20 (Pre-Refunded to
12/1/2000 @ 102) (e)
Suffolk County Ind. Dev.
Agcy. Southwest Swr. Sys.
Rev. Rfdg.:
6% 2/1/07 (FGIC Insured) Aaa 3,090,000 3,519,047
6% 2/1/08 (FGIC Insured) Aaa 2,500,000 2,871,475
Suffolk County Wtr. Auth.
Wtrwks. Rev. Rfdg.:
Series C, 5.75% 6/1/10 (AMBAC Aaa 30,000 32,636
Insured) (Pre-Refunded to
6/1/2002 @ 102) (e)
5.1% 6/1/09 (MBIA Insured) Aaa 2,000,000 2,167,920
5.1% 6/1/10 (MBIA Insured) Aaa 4,500,000 4,864,680
6% 6/1/17 (MBIA Insured) Aaa 6,560,000 7,609,010
Syracuse Ind. Dev. Agcy. Baa1 1,265,000 1,404,947
Civic Fac. Rev. (Saint
Joseph's Hosp. Health Ctr.
Proj.) 7.5% 6/1/18
(Pre-Refunded to 6/1/2001 @
102) (e)
Triborough Bridge & Tunnel
Auth. (Convention Ctr.
Proj.) Series E:
6% 1/1/11 Baa1 4,000,000 4,615,400
7.25% 1/1/10 Baa1 9,870,000 11,762,375
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
Triborough Bridge & Tunnel
Auth. Rev.:
Rfdg.:
Series B:
5% 1/1/14 Aa3 $ 2,000,000 $ 2,087,460
6% 1/1/03 Aa3 2,500,000 2,708,450
6% 1/1/04 Aa3 5,000,000 5,498,600
Series Q, 6.75% 1/1/09 Aa3 1,000,000 1,201,090
Series Y:
5.5% 1/1/03 Aa3 1,500,000 1,597,980
6% 1/1/12 Aa3 14,110,000 16,391,446
Series A:
5.125% 1/1/22 Aa3 5,015,000 5,037,568
5.25% 1/1/28 Aa3 5,400,000 5,476,410
6% 1/1/11 Aa3 500,000 578,950
Series R, 6% 1/1/20 (MBIA Aaa 90,000 92,406
Insured) (Pre-Refunded to
1/1/2000 @ 100) (e)
Series X, 6.2% 1/1/03 Aa3 1,000,000 1,080,680
Triborough Bridge & Tunnel
Spl. Oblig. Rfdg. Series A:
5.125% 1/1/11 (MBIA Insured) Aaa 3,000,000 3,206,310
5.125% 1/1/12 (MBIA Insured) Aaa 1,000,000 1,062,940
Upper Mohawk Valley Reg'l. Aaa 5,000,000 5,061,100
Wtr. Fin. Auth. Wtr. Sys.
Rev. Rfdg. Series A, 5.125%
10/1/26 (FSA Insured)
Yonkers Gen. Oblig. Series A:
6% 8/1/04 (FGIC Insured) Aaa 1,020,000 1,129,589
6% 8/1/05 (FGIC Insured) Aaa 1,080,000 1,209,643
1,129,670,703
NEW YORK & NEW JERSEY - 2.4%
Port Auth. New York & New
Jersey Gen. Oblig.:
Rfdg.:
107th Series, 6% 10/15/06 (d) A1 1,530,000 1,729,053
109th Series, 5.375% 1/15/32 A1 12,500,000 12,867,750
Series 73, 6.75% 10/15/06 (d) A1 2,000,000 2,135,080
Series 85:
5.2% 9/1/15 A1 2,400,000 2,539,728
5.2% 9/1/16 A1 2,000,000 2,096,540
5.2% 9/1/18 A1 1,675,000 1,750,744
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK & NEW JERSEY -
CONTINUED
Port Auth. New York & New
Jersey Gen. Oblig.: -
continued
Series 99, 7% 11/1/04 (FGIC Aaa $ 5,040,000 $ 5,847,307
Insured) (d)
28,966,202
PUERTO RICO - 1.0%
Puerto Rico Commonwealth Baa 6,270,000 6,553,279
Urban Renewal & Hsg. Corp.
Rfdg. 7.875% 10/1/04
Puerto Rico Tel. Auth. Rev. Aaa 4,800,000 5,266,800
7.32% 1/16/15 (MBIA Insured)
INFL (f)
11,820,079
TOTAL MUNICIPAL BONDS 1,170,456,984
(Cost $1,095,071,307)
MUNICIPAL NOTES - 1.5%
NEW YORK - 1.5%
Long Island Pwr. Auth. Elec.
Sys. Rev.:
Series 6, 3.2%, LOC Morgan 6,700,000 6,700,000
Guaranty Trust Co., NY, VRDN
(c)
3.15% (MBIA Insured) (BPA CS 1,750,000 1,750,000
First Boston, Inc.), VRDN
(c)
New York City Gen. Oblig.:
Series 1994 B4, 3%, LOC Union 4,400,000 4,400,000
Bank of Switzerland, VRDN (c)
Series 1994 E, 3.3%, LOC 2,200,000 2,200,000
Morgan Guaranty Trust Co.,
NY, VRDN (c)
Series 1995B-5, 3.2% (MBIA 600,000 600,000
Insured), VRDN (c)
New York City Muni. Wtr. Fin. 700,000 700,000
Auth. Series 1994 G, 3.15%
(FGIC Insured), VRDN (c)
New York State Energy 1,800,000 1,800,000
Research & Dev. Auth. Elec.
& Gas Poll. Cont. Rev.
Series 1987 A, 3.2%, LOC
Toronto Dominion Bank, VRDN
(c)
TOTAL MUNICIPAL NOTES 18,150,000
(Cost $18,150,000)
TOTAL INVESTMENT IN $ 1,188,606,984
SECURITIES - 100%
(Cost $1,113,221,307)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FUTURES CONTRACTS
EXPIRATION DATE UNDERLYING FACE AMOUNT UNREALIZED GAIN/(LOSS)
PURCHASED
77 U.S. Treasury Contracts Mar. 1999 $ 9,856,000 $ 39,756
THE FACE VALUE OF FUTURES
PURCHASED AS A PERCENTAGE OF
TOTAL INVESTMENT IN
SECURITIES - 0.8%
</TABLE>
SECURITY TYPE ABBREVIATION
INFL - INVERSE FLOATING RATE SECURITY
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(b) Security or 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 $921,229.
(c) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(d) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(e) Security collateralized by an amount sufficient to pay interest
and principal.
(f) Coupon is inversely indexed to a floating interest rate. The price
will be more volatile than the price of a comparable fixed rate
security. The rate shown is the rate at period end.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investments in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 83.8% AAA, AA, A 86.3%
Baa 14.0% BBB 9.3%
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 Moody's or S&P amounted to 0.4%.
The distribution of municipal securities by revenue source, as a
percentage of total value of investments in securities, is as follows:
General Obligations 36.2%
Special Tax 16.7
Transportation 12.4
Education 7.6
Electric Utilities 6.7
Water & Sewer 6.5
Others (individually less 13.9
than 5%)
TOTAL 100.0%
INCOME TAX INFORMATION
At January 31, 1999, the aggregate cost of investment securities for
income tax purposes was $1,113,221,307. Net unrealized appreciation
aggregated $75,385,677, of which $75,445,268 related to appreciated
investment securities and $59,591 related to depreciated investment
securities.
The fund hereby designates approximately $14,738,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
At January 31, 1999 the fund was required to defer approximately
$1,233,000 of losses on futures contracts.
During the fiscal year ended January 31, 1999, 100% of the fund's
income dividends was free from federal income tax, and 7.78% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
SPARTAN NEW YORK MUNICIPAL INCOME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1999
ASSETS
Investment in securities, at $ 1,188,606,984
value (cost $1,113,221,307)
- - See accompanying schedule
Cash 69,120
Receivable for investments 1,005,433
sold
Receivable for fund shares 2,200,741
sold
Interest receivable 16,176,584
Receivable for daily 14,437
variation on futures
contracts
TOTAL ASSETS 1,208,073,299
LIABILITIES
Payable for investments $ 5,580,988
purchased
Payable for fund shares 803,947
redeemed
Distributions payable 1,027,532
Accrued management fee 410,293
Other payables and accrued 159,420
expenses
TOTAL LIABILITIES 7,982,180
NET ASSETS $ 1,200,091,119
Net Assets consist of:
Paid in capital $ 1,122,382,429
Accumulated undistributed net 2,283,257
realized gain (loss) on
investments
Net unrealized appreciation 75,425,433
(depreciation) on investments
NET ASSETS, for 92,354,430 $ 1,200,091,119
shares outstanding
NET ASSET VALUE, offering $12.99
price and redemption price
per share ($1,200,091,119
(divided by) 92,354,430
shares)
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 1999
INTEREST INCOME $ 59,541,565
EXPENSES
Management fee $ 4,394,488
Transfer agent fees 1,119,998
Accounting fees and expenses 332,007
Non-interested trustees' 3,289
compensation
Custodian fees and expenses 62,833
Registration fees 207,477
Audit 8,912
Legal 23,958
Miscellaneous 10,364
Total expenses before 6,163,326
reductions
Expense reductions (113,740) 6,049,586
NET INTEREST INCOME 53,491,979
Realized and Unrealized Gain
(Loss)
Net realized gain (loss) on:
Investment securities 19,060,007
Futures contracts 44,335 19,104,342
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 382,084
Futures contracts (77,844) 304,240
NET GAIN (LOSS) 19,408,582
NET INCREASE (DECREASE) IN $ 72,900,561
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Custodian credits $ 6,508
Transfer agent credits 10,540
FMR reimbursement 96,692
$ 113,740
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JANUARY 31, 1999 YEAR ENDED JANUARY 31, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 53,491,979 $ 22,142,700
Net realized gain (loss) 19,104,342 7,178,566
Change in net unrealized 304,240 14,463,710
appreciation (depreciation)
NET INCREASE (DECREASE) IN 72,900,561 43,784,976
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (53,491,979) (22,142,700)
From net interest income
From net realized gain (13,895,534) (689,878)
TOTAL DISTRIBUTIONS (67,387,513) (22,832,578)
Share transactions - Net 60,910,448 711,644,417
increase (decrease) (Note 6)
TOTAL INCREASE (DECREASE) 66,423,496 732,596,815
IN NET ASSETS
NET ASSETS
Beginning of period 1,133,667,623 401,070,808
End of period $ 1,200,091,119 $ 1,133,667,623
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED JANUARY 31,
1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 12.940 $ 12.290 $ 12.540 $ 11.370 $ 13.050
of period
Income from Investment .602 .624 .629 .635 .673
Operations Net interest
income
Net realized and unrealized .205 .670 (.246) 1.177 (1.440)
gain (loss)
Total from investment .807 1.294 .383 1.812 (.767)
operations
Less Distributions
From net interest income (.602) (.624) (.631) (.642) (.673)
From net realized gain (.155) (.020) (.002) - (.210)
In excess of net realized - - - - (.030)
gain
Total distributions (.757) (.644) (.633) (.642) (.913)
Net asset value, end of period $ 12.990 $ 12.940 $ 12.290 $ 12.540 $ 11.370
TOTAL RETURN A 6.45% 10.82% 3.22% 16.29% (5.78)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,200,091 $ 1,133,668 $ 401,071 $ 433,678 $ 394,234
(000 omitted)
Ratio of expenses to average .53% B .55% B .59% .59% .58%
net assets
Ratio of expenses to average .53% .55% .59% .58% C .58%
net assets after expense
reductions
Ratio of net interest income 4.67% 4.97% 5.15% 5.26% 5.77%
to average net assets
Portfolio turnover rate 25% 43% D 44% 83% 34%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
B 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 (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
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.
D THE PORTFOLIO TURNOVER RATE DOES NOT INCLUDE THE ASSETS ACQUIRED IN
THE MERGER.
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
value of an investment, assuming reinvestment of the fund's dividend
income and does not include the effect of the fund's $5 account
closeout fee on an average-sized account. 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 life of fund total returns
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
SPARTAN NY MUNICIPAL MONEY 3.01% 16.34% 33.89%
MARKET
New York Tax-Free Money 2.81% 15.26% n/a
Market Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance over a set period
- - in this case, 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. 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 mutual funds
with similar objectives tracked by IBC Financial Data, Inc. The past
one year average represents a peer group of 37 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
SPARTAN NY MUNICIPAL MONEY 3.01% 3.07% 3.30%
MARKET
New York Tax-Free Money 2.81% 2.88% n/a
Market Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
2/1/99 11/2/98 8/3/98 4/27/98 2/2/98
Spartan New York Municipal 2.47% 2.74% 3.07% 3.59% 3.12%
Money Market Fund
New York Tax-Free Money 2.24% 2.56% 2.91% 3.34% 2.92%
Market Funds Average
Spartan New York Municipal 4.30% 4.79% 5.37% 6.27% 5.46%
Money Market Fund -
Tax-equivalent
Portion of fund's income 3.94% 0.00% 0.00% 0.66% 0.00%
subject to state taxes
Spartan New York
Municipal Money
Market Fund
New York Tax-Free
Money Market
Funds Average
Row: 1, Col: 1, Value: 2.47
Row: 1, Col: 2, Value: 2.24
Row: 2, Col: 1, Value: 2.74
Row: 2, Col: 2, Value: 2.56
Row: 3, Col: 1, Value: 3.07
Row: 3, Col: 2, Value: 2.91
Row: 4, Col: 1, Value: 3.59
Row: 4, Col: 2, Value: 3.34
Row: 5, Col: 1, Value: 3.12
Row: 5, Col: 2, Value: 2.92
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
table 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 1999 federal, state and New York City
income tax rate of 42.83% and reflects that a portion of the fund's
income was subject to state taxes. A portion of the fund's income may
be subject to the federal alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
(checkmark)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 market
fund will maintain a $1 share
price.
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Diane McLaughlin)
An interview with Diane McLaughlin, Portfolio Manager of Spartan New
York Municipal Money Market Fund
Q. DIANE, WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE PERIOD?
A. The U.S. economy was very strong in 1998. Growth in real GDP -
gross domestic product adjusted for inflation - approached 4% over the
course of the year. Employment was also quite robust, with the
unemployment rate averaging only 4.5% in 1998. Economic conditions
like these are usually accompanied by inflation. Wages started to
creep upward as employers increased pay to attract or retain workers.
But consumers didn't have to pay higher prices as the CPI (consumer
price index) hovered at a tame rate of 1.6% for the year. The strength
of the economy beat expectations; most market observers felt global
economic and financial crises would hurt growth in the U.S. much more
than they did. While the manufacturing sector experienced a downturn -
with exports from the U.S. suffering from increased competition - this
weakness was more than offset by solid domestic demand. Robust
consumer activity - especially in the holiday shopping season -
sustained growth through the end of 1998 and the beginning of 1999.
Q. HOW DID THIS BACKDROP AFFECT FEDERAL RESERVE BOARD MONETARY POLICY?
A. Despite this economic strength, the expectation of an eventual
slowdown prompted the Fed to lower the rate banks charge each other
for overnight loans - known as the fed funds target rate - by 0.25
percentage points in late September. The Fed followed with a second
rate cut in October, responding to financial instability in the
markets, the near-collapse of a highly leveraged hedge fund and
increased aversion to risk by investors in the market. The Fed
implemented an additional cut in November, citing the presence of
downside risks in global financial markets.
Q. WHAT WAS YOUR STRATEGY DURING THIS PERIOD?
A. The fund's maturity at the beginning of the 12-month period stood
at 42 days, and peaked at 54 days in mid-October. I extended the
fund's maturity through the summer months by buying fixed-rate,
one-year notes. There were two main reasons behind these purchases.
First, most issuers bring their one-year municipal securities to
market in the summer, and the additional supply typically drives
yields on these securities higher. In addition, it made sense to lock
in attractive one-year yields since it became clear the Fed was going
to make a move to cut short-term interest rates. Since reaching its
October peak, the maturity has since rolled down to 34 days at the end
of the period.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on January 31, 1999, was 2.49%, compared
to 3.10% 12 months ago. The latest yield was the equivalent of a 4.36%
taxable yield for New York investors in the 42.83% combined federal,
state and New York City tax bracket. Through January 31, 1999, the
fund's 12-month total return was 3.01%, compared to 2.81% for the New
York tax-free money market funds average, according to IBC Financial
Data, Inc.
Q. WHAT'S YOUR OUTLOOK FOR THE BEGINNING OF 1999?
A. In the minutes from its Open Market Committee meeting in November,
the Fed indicated that its decision to implement the latest
interest-rate cut was a tough one given the continued economic
strength in the U.S. At the same meeting, the Fed shifted from a bias
toward lowering rates to a neutral stance. The Fed might reverse
course and increase rates if continued strength in the economy is
finally reflected in higher prices. On the other hand, there is still
a risk that outside factors might threaten U.S. economic growth and
encourage the Fed to ease credit by lowering rates once again. Given
the uncertainty about the future course of interest rates, I'll seek
to maintain a flexible, neutral positioning with the fund's maturity.
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.
(checkmark)FUND FACTS
GOAL: high current income
free from federal income tax
and New York state and city
income taxes, by investing in
short-term municipal securities
of all types
FUND NUMBER: 422
TRADING SYMBOL: FSNXX
START DATE: February 3, 1990
SIZE: as of January 31,
1999, more than $808
million
MANAGER: Diane McLaughlin,
since 1997; manager,
various Fidelity and Spartan
municipal money market
funds; joined Fidelity in 1992
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
<TABLE>
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MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 1/31/99 % OF FUND INVESTMENTS 7/31/98 % OF FUND INVESTMENTS 1/31/98
0 - 30 78 77 65
31 - 90 12 13 21
91 - 180 7 3 9
181 - 397 3 7 5
WEIGHTED AVERAGE MATURITY
1/31/99 7/31/98 1/31/98
Spartan New York
Municipal 34 DAYS 35 days 42 days
Money Market Fund
New York Tax-Free Money 40 DAYS 47 days 44 days
Market Funds Average*
</TABLE>
ASSET ALLOCATION (% OF FUND'S
INVESTMENTS)
AS OF JANUARY 31, 1999
Variable rate demand
notes (VRDNs) 59%
Commercial paper
(including CP mode) 18%
Tender bonds 6%
Municipal
notes 12%
Other 5%
Row: 1, Col: 1, Value: 59.0
Row: 1, Col: 2, Value: 18.0
Row: 1, Col: 3, Value: 6.0
Row: 1, Col: 4, Value: 12.0
Row: 1, Col: 5, Value: 5.0
Row: 1, Col: 6, Value: 0.0
AS OF JULY 31, 1998
Variable rate demand
notes (VRDNs) 70%
Commercial paper
(including CP mode) 15%
Tender bonds 2%
Municipal
notes 13%
Other 0%
Row: 1, Col: 1, Value: 70.0
Row: 1, Col: 2, Value: 15.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 13.0
Row: 1, Col: 5, Value: 0.0
*SOURCE: IBC'S MONEY FUND REPORT (REGISTERED TRADEMARK)
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND
INVESTMENTS JANUARY 31, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL SECURITIES - 100.0%
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - 88.5%
Albany County Arpt. Auth. $ 2,500,000 $ 2,500,000
Rev. Participating VRDN
Series FR 7, 2.95%
(Liquidity Facility Bank of
New York NA) (a)(d)(e)
Amherst Ind. Dev. Auth. Ind. 4,950,000 4,950,000
Dev. Rev. (Maple Dev. Proj.)
Series 1986, 2.8%, LOC
Marine Midland Bank NA, VRDN
(a)(d)
Babylon Ind. Dev. Rev. 2,700,000 2,700,000
(Southern Container Corp.)
2.85%, LOC Fleet Bank NA,
VRDN (a)(d)
Bay Shore Union Free School 3,000,000 3,004,161
District TAN 3.75% 6/29/99
Buffalo Gen. Oblig. RAN 3.75% 3,200,000 3,211,407
7/27/99, LOC Landesbank
Hessen-Thuringen
Chemung County Ind. Dev. 2,400,000 2,400,000
Agcy. Ind. Dev. Rev. (MMARS
Second Prog.) Series A,
2.8%, LOC Marine Midland
Bank NA, VRDN (a)(d)
East Greenbush Gen. Oblig. 2,800,000 2,802,641
BAN 3.9% 6/24/99
Erie County Gen. Oblig. RAN 6,400,000 6,443,230
4% 10/13/99, LOC Bank of New
York NA
Erie County Ind. Dev. Auth. 1,230,000 1,230,000
Ind. Dev. Rev. (Uniland
Dev./Buffalo Campus) Series
1986, 2.8%, LOC Marine
Midland Bank NA, VRDN (a)(d)
Garden City Union Free School 4,000,000 4,007,959
District TAN 4% 6/25/99
Hauppauge Union Free School 2,600,000 2,604,246
District TAN 3.9% 6/29/99
Herkimer County Ind. Rev. 760,000 760,000
Agcy. (H.M. Quackenbush,
Inc.) Series 1988-A, 2.8%,
LOC Marine Midland Bank NA,
VRDN (a)(d)
Herricks Union Free School 2,000,000 2,004,532
District TAN 4% 6/29/99
Islip Ind. Dev. Agcy. Rev. 800,000 800,000
(Interstate Litho Corp.)
Series 1996 A, 2.8%, LOC
Marine Midland Bank NA, VRDN
(a)(d)
Lewis County Ind. Dev. Agcy. 1,300,000 1,300,000
Ind. Dev. Rev. (Philip
Morris Proj.) 2.6%, VRDN (a)
Long Beach Unified School 3,900,000 3,904,297
District TAN 4% 6/29/99
Long Island Pwr. Auth. Elec.
Sys. Rev.:
Bonds:
Series 3, 2.95% 2/25/99, LOC 4,500,000 4,500,000
Bayerische Landesbank
Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, CP mode
Series 4:
3% 3/12/99, LOC Bayerische 3,000,000 3,000,000
Landesbank Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, CP mode
3.05% 3/11/99, LOC Bayerische 4,200,000 4,200,000
Landesbank Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, CP mode
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
Long Island Pwr. Auth. Elec.
Sys. Rev.: - continued
Participating VRDN:
Series 1998 10, 2.87% $ 2,300,000 $ 2,300,000
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series 65, 2.87% (Liquidity 5,000,000 5,000,000
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
Series MS 44, 2.87% 4,570,000 4,570,000
(Liquidity Facility Morgan
Stanley, Dean Witter & Co.)
(a)(e)
Series PT 1043, 2.85% 4,300,000 4,300,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series 1, 2.65%, LOC 27,800,000 27,800,000
Bayerische Landesbank
Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, VRDN (a)
Series 6, 3.2%, LOC Morgan 3,400,000 3,400,000
Guaranty Trust Co., NY, VRDN
(a)
3.15% (MBIA Insured) (BPA CS 13,700,000 13,700,000
First Boston, Inc.), VRDN (a)
Metropolitan Trans. Auth. 3,480,000 3,480,000
Commuter Facilities Rev.
Participating VRDN Series PT
1104B, 2.88% (Liquidity
Facility Merrill Lynch &
Co.) (a)(e)
Metropolitan Trans. Auth.
Trans. Facilities Rev.:
Series 1, 3% 3/31/99, LOC 10,000,000 10,000,000
ABN-AMRO Bank NV, CP
Series A, 3% 4/9/99, LOC 14,400,000 14,400,000
ABN-AMRO Bank NV, CP
Series B, 3.05% 3/12/99, LOC 10,000,000 10,000,000
ABN-AMRO Bank NV, CP
Monroe County Gen. Oblig. BAN 6,400,000 6,411,643
4% 7/23/99
Monroe County Ind. Dev. Agcy.
Rev.:
(Advent Tool & Mold) Series 950,000 950,000
1990 D, 2.8%, LOC Marine
Midland Bank NA, VRDN (a)(d)
(AJL Manufacturing) Series 1,800,000 1,800,000
1996 A, 2.8%, LOC Marine
Midland Bank NA, VRDN (a)(d)
(Flower City Proj.) 2.9%, LOC 3,200,000 3,200,000
Key Bank, NA, VRDN (a)(d)
(Illbruck Office Prod., Inc.) 1,200,000 1,200,000
Series 1997, 2.6%, LOC Key
Bank, NA, VRDN (a)(d)
Muni. Assistance Corp. for 9,050,000 9,050,000
New York City Participating
VRDN Series FR/RI A11, 2.95%
(Liquidity Facility Nat'l.
Westminster Bank PLC) (a)(e)
Nassau County Gen. Oblig.:
BAN:
Series 1999 A, 3.5% 8/17/99 8,049,000 8,066,140
Series E, 4% 5/18/99 8,600,000 8,615,926
3.5% 5/18/99 2,764,000 2,767,588
Participating VRDN Series 2,500,000 2,500,000
PT-1069, 2.85% (Liquidity
Facility Merrill Lynch &
Co.) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
Nassau County Gen. Oblig.: -
continued
Series T, 5.125% 9/1/99 (FGIC $ 3,655,000 $ 3,697,323
Insured)
New Rochelle City School 4,300,000 4,308,380
District TAN 4% 6/30/99
New York City Hsg. Dev. Corp.
Multi-family Hsg. Mtg. Rev.:
(York Avenue Proj.) Series 10,650,000 10,650,000
1994 A, 2.6%, VRDN (a)(d)
2.5%, LOC Fleet Bank NA, VRDN 2,000,000 2,000,000
(a)(d)
New York City Hsg. Dev. Corp. 3,500,000 3,500,000
Multi-family Mgt Rev.
(Gerard Court Proj.) Series
1997A, 2.65%, LOC Bayerische
Hypo-und Vereinsbank AG,
VRDN (a)(d)
New York City Gen. Oblig.:
Bonds:
Series 1994 C 3, 3.5%, tender 10,100,000 10,100,000
3/1/99 (Liquidity Facility
Citibank, New York NA) (e)(f)
Series 1996 J3, 3.35% 3,800,000 3,800,000
2/12/99, LOC Morgan Guaranty
Trust Co., NY, CP mode
Series B 9, 3.15% 2/9/99, LOC 4,900,000 4,900,000
Chase Manhattan Bank, CP mode
Series H 3, 3.15% 2/9/99 (FSA 1,500,000 1,500,000
Insured) (BPA State Street
Bank & Trust Co.), CP mode
Series H 4, 3.15% 2/9/99 5,000,000 5,000,000
(AMBAC Insured) (BPA
Kredietbank NV), CP mode
Series H-3, 3.35% 2/26/99 3,100,000 3,100,000
(FSA Insured), CP mode
Participating VRDN:
Series FR-33, 2.9% (Liquidity 4,185,000 4,185,000
Facility Bank of New York
NA) (a)(e)
Series PT 1027, 2.85% 4,300,000 4,300,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series PT 1042, 2.85% 4,300,000 4,300,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series 1992-D, 2.6% (FGIC 6,000,000 6,000,000
Insured) (BPA FGIC-SPI),
VRDN (a)
Series 1993 B, 3.3% (FGIC 5,900,000 5,900,000
Insured), VRDN (a)
Series 1994 A7, 3.3%, LOC 1,000,000 1,000,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
Series 1994 E2, 3.3%, LOC 1,000,000 1,000,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
Series 1994 E4, 3.3%, LOC 2,900,000 2,900,000
State St Bank & Trust Co.,
VRDN (a)
Series 1994 E5, 3.3%, LOC 2,000,000 2,000,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
Series 1994-B2, 3.3%, LOC 1,400,000 1,400,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York City Gen. Oblig.: -
continued
Series 1994 A-7, 3.3%, LOC $ 3,700,000 $ 3,700,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
Series 1994 B3, 3.3%, LOC 1,000,000 1,000,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
Series 1994 B4, 3%, LOC Union 2,200,000 2,200,000
Bank of Switzerland, VRDN
(a)
Series 1995 B5, 3.2% (MBIA 3,915,000 3,915,000
Insured) (BPA Bank of Nova
Scotia), VRDN (a)
Series A 10, 2.35%, LOC 3,500,000 3,500,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
Series B, 2.7% (FGIC Insured) 3,900,000 3,900,000
(BPA FGIC-SPI), VRDN (a)
New York City Hsg. Dev. Corp. 18,100,000 18,100,000
Multi-family Rent Hsg. Rev.
Series A, 2.45% (Fannie Mae
Guaranteed), VRDN (a)(d)
New York City Ind. Dev. Agcy. 4,320,000 4,320,000
Ind. Dev. Rev. Participating
VRDN Series 1997 E, 2.9%
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(d)(e)
New York City Muni. Wtr. Fin.
Auth.:
Participating VRDN:
Series SGB 25, 2.92% 9,000,000 9,000,000
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SGB 26, 2.92% 17,800,000 17,800,000
(Liquidity Facility Societe
Generale, France) (a)(e)
Series PA 454, 2.85% 2,000,000 2,000,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series 5B, 2.95% 4/16/99, LOC 2,500,000 2,500,000
Westdeutsche Landesbank
Girozentrale, LOC Bayerische
Landesbank Girozentrale, CP
New York City Transitional 8,700,000 8,700,000
Fin. Auth. Rev. Series A 2,
2.35%, VRDN (a)
New York Metropolitan Trans. 4,900,000 4,900,000
Auth. Bonds 3.5%, tender
3/1/99 (FGIC Insured)
(Liquidity Facility
Citibank, New York NA) (e)(f)
New York State Dorm. Auth.
Rev.:
Bonds Series 1989 B, 2.95% 2,600,000 2,600,000
4/7/99, LOC Chase Manhattan
Bank, CP mode
Participating VRDN:
Series 1998, 2.87% (Liquidity 8,000,000 8,000,000
Facility Bank of America
Nat'l. Trust & Savings
Assoc.) (a)(e)
Series PA 279, 2.85% 22,835,000 22,835,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series PA 430, 2.82% 7,945,000 7,945,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series PT 1067, 2.85% 4,000,000 4,000,000
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Energy $ 7,800,000 $ 7,800,000
Research & Dev. Auth.
Participating VRDN Series
FR/RI 9, 2.9% (Liquidity
Facility Bank of New York
NA) (a)(e)
New York State Energy
Research & Dev. Auth. Elec.
& Gas Poll. Cont. Rev.:
(Niagara Mohawk Pwr. Proj.) 1,800,000 1,800,000
Series A, 3.25%, LOC Toronto
Dominion Bank, VRDN (a)(d)
Bonds:
(New York State Elec. & Gas 8,700,000 8,700,000
Corp. Proj.) Series 1985 A,
3.58%, tender 3/15/99, LOC
Morgan Guaranty Trust Co., NY
Series 1985 B, 3.58%, tender 11,750,000 11,750,000
3/1/99, LOC Deutsche Bank AG
Series 1987 A, 3.2%, LOC 2,600,000 2,600,000
Toronto Dominion Bank, VRDN
(a)
New York State Envir. 4,995,000 4,995,000
Facilities Corp. Poll. Cont.
Rev. Participating VRDN
Series PA 174, 2.82%
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
New York State Envir. 6,985,000 6,985,000
Facility Corp. Participating
VRDN Series 943203, 2.92%
(Liquidity Facility
Citibank, New York NA)
(a)(e)
New York State Gen. Oblig.:
Series U:
3.1% 2/22/99, CP 10,200,000 10,200,000
3.1% 2/22/99, CP 2,000,000 2,000,000
Series V:
2.9% 4/9/99, CP 2,600,000 2,600,000
3% 3/8/99, CP 4,000,000 4,000,000
New York State Hsg. Fin.
Agcy. Hsg. Proj. Mtg. Rev.:
(240 East 39th Street) Series 4,300,000 4,300,000
1997 A, 2.45%, LOC Chase
Manhattan Bank, VRDN (a)(d)
Participating VRDN Series PT 6,000,000 6,000,000
107, 2.85% (Liquidity
Facility Banco Santander SA)
(a)(e)
New York State Local Govt.
Assistance Corp.
Participating VRDN:
Series PT 1040, 2.85% 9,200,000 9,200,000
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series SG 99, 2.85% 1,800,000 1,800,000
(Liquidity Facility Societe
Generale, France) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Mtg. Agcy.
Homeowner Mtg. Rev.
Participating VRDN:
Series PA 153, 2.9% $ 2,640,000 $ 2,640,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series PA 29, 2.88% 6,000,000 6,000,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series PA 87, 2.88% 2,200,000 2,200,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series PT 108, 2.9% 2,845,000 2,845,000
(Liquidity Facility Banco
Santander SA) (a)(d)(e)
Series PT 11, 2.9% (Liquidity 900,000 900,000
Facility Commerzbank AG)
(a)(d)(e)
Series PT 15A, 2.9% 4,500,000 4,500,000
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series PT 15B, 2.9% 2,460,000 2,460,000
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series PT 26, 2.9% (Liquidity 1,540,000 1,540,000
Facility Merrill Lynch &
Co.) (a)(d)(e)
Series RI 24, 3% (Liquidity 3,000,000 3,000,000
Facility Bank of New York
NA) (a)(d)(e)
New York State Pwr. Auth.
Rev. & Gen. Purp.:
Bonds:
3.45%, tender 3/1/99 4,000,000 4,000,000
3.45%, tender 3/1/99 4,600,000 4,600,000
Series 1:
2.9% 4/9/99, CP 3,000,000 3,000,000
3% 2/5/99, CP 8,400,000 8,400,000
3% 4/8/99, CP 3,200,000 3,200,000
3.1% 2/19/99, CP 4,000,000 4,000,000
3.15% 4/7/99, CP 2,200,000 2,200,000
3.3% 2/18/99, CP 3,900,000 3,900,000
3.35% 2/17/99, CP 9,900,000 9,900,000
Series 2:
3% 2/10/99, CP 6,100,000 6,100,000
3.05% 3/1/99, CP 14,300,000 14,300,000
New York State Thruway Auth. 8,000,000 8,000,000
Gen. Rev. Participating VRDN
Series MS 23, 2.87%
(Liquidity Facility Morgan
Stanley, Dean Witter & Co.)
(a)(e)
New York State Thruway Auth.
Hwy. & Bridge Trust Fund:
Series 1998 C, 4% 4/1/99 9,445,000 9,450,293
Series A, 4.5% 4/1/99 5,665,000 5,672,717
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
Niagara Falls RAN:
Lot 1, 3.5% 12/10/99 (AMBAC $ 3,200,000 $ 3,213,312
Insured)
Lot 2, 3.5% 1/7/00 (AMBAC 4,800,000 4,821,655
Insured)
North Hempstead Gen. Oblig. 8,220,000 8,220,000
Participating VRDN Series
1998-37 2.87% (Liquidity
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
Oneida County Ind. Dev. Agcy. 2,100,000 2,100,000
Rev. (Utica Corp.) Series
1996, 2.95%, LOC Fleet Bank
NA, VRDN (a)(d)
Oswego City Ind. Dev. Auth. 5,620,000 5,620,000
Ind. Rev. (Engraph, Inc.
Proj.) Series 1989, 2.75%,
LOC SunTrust Bank of
Atlanta, VRDN (a)(d)
Oswego County Ind. Dev. Auth. 5,200,000 5,200,000
Poll. Cont. Rev. Rfdg.
(Philip Morris Co. Proj.)
2.85%, VRDN (a)
Oyster Bay Gen. Oblig. BAN:
Series 1998, 3.8% 8/27/99 1,000,000 1,001,092
4% 2/25/99 4,850,000 4,851,414
Port Washington Union Free 2,600,000 2,603,929
School District TAN 4%
6/24/99
Riverhead Ind. Dev. Auth. 2,800,000 2,800,000
Ind. Dev. Rev. (Adchem Corp.
Facility) Series 1998,
2.72%, LOC European American
Bank Uniondale, VRDN (a)(d)
Rochester Gen. Oblig. BAN 6,420,000 6,422,629
Series I, 4% 3/9/99
Rockland County Ind. Dev. 2,400,000 2,400,000
Auth. (INSL-X Prod. Corp.
Proj.) Series 1990, 2.8%,
LOC Bank of New York NA,
VRDN (a)(d)
Saint Lawrence County Ind. 5,300,000 5,300,000
Dev. Agcy. Impt. Rev.
(Reynolds Metals Proj.)
2.65%, LOC Royal Bank of
Canada, VRDN (a)(d)
Saint Lawrence County Ind. 2,500,000 2,500,000
Dev. Agcy. Poll. Cont. Rev.
(Aluminum Co. America Proj.)
Series B, 2.89%, VRDN (a)
Saint Lawrence Ind. Dev. 3,250,000 3,250,000
Auth. Envir. Facility
(Aluminum Co. of America
Proj.) Series 1998 A, 2.94%,
VRDN (a)(d)
Saratoga County Ind. Dev. 2,700,000 2,700,000
Agcy. (Spurlock Adhesives,
Inc.) Series 1997 A, 2.9%,
LOC Key Bank, NA, VRDN (a)(d)
Schenectady County Ind. Dev. 1,900,000 1,900,000
Agcy. Rev. (Super Steel
Schenectady Proj.) Series
1996 A, 2.6%, LOC Key Bank,
NA, VRDN (a)(d)
Seneca County Ind. Dev. Agcy. 3,100,000 3,100,000
(New York Chiropractic
College) Series 1997, 2.7%,
LOC Fleet Bank NA, VRDN (a)
Sewanhaka Central High School 7,000,000 7,013,976
District TAN 3.9% 6/30/99
Southampton Union Free School 4,325,000 4,329,938
District TAN 3.9% 6/25/99
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
Suffolk County Ind. Dev. $ 2,625,000 $ 2,625,000
Agcy. Civic Fac. Rev.
(Maryhaven Ctr. of Hope)
Series 1997 A, 2.8%, LOC Key
Bank, NA, VRDN (a)
695,800,428
NEW YORK & NEW JERSEY - 8.2%
Port Auth. New York & New
Jersey Gen. Oblig.:
(New Jersey Equip. Notes) 4,500,000 4,500,000
Series 1997-1D, 2.6%, VRDN
(a)
Participating VRDN 2.85% 7,900,000 7,900,000
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (Liquidity
Facility BankAmerica Corp.)
(a)(e)
Series 1991, 3.3463%, VRDN 9,800,000 9,800,000
(a)(d)(f)
Series 1996 5, 2.6%, VRDN (a) 4,800,000 4,800,000
Series 1997 3B, 2.6%, VRDN (a) 8,300,000 8,300,000
Series 1997 4B, 2.7%, VRDN 2,000,000 2,000,000
(a)(d)
Series 4, 2.6%, VRDN (a) 4,400,000 4,400,000
Port Auth. New York & New
Jersey Spl. Oblig. Rev.:
(Versatile Structure Oblig.) 3,100,000 3,100,000
Series 1R, 3.25%, VRDN (a)(d)
Participating VRDN:
Series 6, 2.9% (Liquidity 5,300,000 5,300,000
Facility Societe Generale,
France) (a)(d)(e)
Series FR/RI 16, 2.9% 8,400,000 8,400,000
(Liquidity Facility Bank of
New York NA) (a)(d)(e)
Series SG 117, 2.9% 5,800,000 5,800,000
(Liquidity Facility Societe
Generale, France) (a)(d)(e)
64,300,000
SHARES
OTHER - 3.3%
Municipal Central Cash Fund 26,042,074 26,042,074
(b)(c)
TOTAL INVESTMENT IN $ 786,142,502
SECURITIES - 100%
Total Cost for Income Tax Purposes $ 786,142,587
</TABLE>
SECURITY TYPE ABBREVIATION
BAN - BOND ANTICIPATION NOTE
CP - COMMERCIAL PAPER
RAN - REVENUE ANTICIPATION NOTE
TAN - TAX ANTICIPATION NOTE
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Information in this report regarding holdings by state and
security types does not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of its most recent fiscal period end is available upon request.
(c) At the period end, the seven-day yield of the Municipal Central
Cash Fund was 2.91%. The yield refers to the income earned by
investing in the fund over the seven-day period, expressed as an
annual percentage.
(d) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(e) Provides evidence of ownership in one or more underlying municipal
bonds.
(f) Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
SECURITY ACQUISTION DATE COST
New York City Gen. Oblig. 9/1/98 $ 10,100,000
Bonds Series 1994 C 3, 3.5%,
tender 3/1/99 (Liquidity
Facility Citibank, New York
NA)
New York Metropolitan Trans. 9/1/98 $ 4,900,000
Auth. Bonds 3.5%, tender
3/1/99 (FGIC Insured)
(Liquidity Facility
Citibank, New York NA)
Port Auth. New York & New 6/18/91 $ 9,800,000
Jersey Gen. Oblig. Series
1991, 3.3463%, VRDN
OTHER INFORMATION
At the end of the period, restricted securities (excluding 144A
issues) amounted to $24,800,000 or 3.1% of net assets (see Note 2 of
Notes to Financial Statements
INCOME TAX INFORMATION
At January 31, 1999, the fund had a capital loss carryforward of
approximately $124,000 of which $4,000, $51,000, $28,000 and $41,000
will expire on January 31, 2001, 2002, 2005 and 2006, respectively.
During the fiscal year ended January 31, 1999, 100% of the fund's
income dividends was free from federal income tax, and 36.54% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1999
ASSETS
Investment in securities, at $ 786,142,502
value - See accompanying
schedule
Cash 846
Receivable for investments 19,248,934
sold
Receivable for fund shares 4,221,810
sold
Interest receivable 5,864,890
TOTAL ASSETS 815,478,982
LIABILITIES
Payable for investments $ 6,000,713
purchased
Payable for fund shares 568,241
purchased
Distributions payable 83,756
Accrued management fee 338,559
Other payables and accrued 4,968
expenses
TOTAL LIABILITIES 6,996,237
NET ASSETS $ 808,482,745
Net Assets consist of:
Paid in capital $ 808,607,238
Accumulated net realized gain (124,493)
(loss) on investments
NET ASSETS, for 808,590,247 $ 808,482,745
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($808,482,745
(divided by) 808,590,247
shares)
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 1999
INTEREST INCOME $ 27,967,397
EXPENSES
Management fee $ 4,037,205
Non-interested trustees' 3,118
compensation
Total expenses before 4,040,323
reductions
Expense reductions (58,969) 3,981,354
NET INTEREST INCOME 23,986,043
NET REALIZED GAIN (LOSS) ON 16,495
INVESTMENTS
NET INCREASE IN NET ASSETS $ 24,002,538
RESULTING FROM OPERATIONS
OTHER INFORMATION
Expense reductions
Custodian credits $ 14,547
Transfer agent credits 44,422
$ 58,969
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JANUARY 31, 1999 YEAR ENDED JANUARY 31, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 23,986,043 $ 24,441,162
Net realized gain (loss) 16,495 (41,045)
Increase (decrease) in net - (2,163)
unrealized gain from
accretion of discount
NET INCREASE (DECREASE) IN 24,002,538 24,397,954
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (23,986,043) (24,441,162)
from net interest income
Share transactions at net 812,304,407 782,843,921
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 23,196,815 24,030,268
distributions from net
interest income
Cost of shares redeemed (813,713,783) (764,080,261)
NET INCREASE (DECREASE) IN 21,787,439 42,793,928
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 21,803,934 42,750,720
IN NET ASSETS
NET ASSETS
Beginning of period 786,678,811 743,928,091
End of period $ 808,482,745 $ 786,678,811
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED JANUARY 31,
1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .030 .032 .030 .034 .025
Operations Net interest
income
Less Distributions
From net interest income (.030) (.032) (.030) (.034) (.025)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A, B 3.01% 3.26% 3.07% 3.46% 2.56%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 808,483 $ 786,679 $ 743,928 $ 676,475 $ 570,708
(000 omitted)
Ratio of expenses to average .50% .50% .50% .50% .50%
net assets
Ratio of expenses to average .49% C .50% .49% C .50% .50%
net assets after expense
reductions
Ratio of net interest income 2.97% 3.21% 3.03% 3.41% 2.55%
to average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE.
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).
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
value of an investment, assuming reinvestment of the fund's dividend
income. Yield measures the income paid by a fund. Since a money market
fund tries to maintain a $1 share price, yield is an important measure
of performance. If Fidelity had not reimbursed certain fund expenses,
the past 10 year total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY NY MUNICIPAL MONEY 2.91% 15.62% 38.57%
MARKET
New York Tax-Free Money 2.81% 15.26% 38.20%
Market Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. 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. 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 tax-free money market funds
with similar objectives tracked by IBC Financial Data, Inc. The past
one year average represents a peer group of 37 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY NY MUNICIPAL MONEY 2.91% 2.95% 3.32%
MARKET
New York Tax-Free Money 2.81% 2.88% 3.30%
Market Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
2/1/99 11/2/98 8/3/98 4/27/98 2/2/98
Fidelity New York Municipal 2.37% 2.68% 2.99% 3.46% 2.99%
Money Market Fund
New York Tax-Free Money 2.24% 2.56% 2.91% 3.34% 2.92%
Market Funds Average
Fidelity New York Municipal 4.14% 4.69% 5.23% 6.05% 5.23%
Money Market Fund -
Tax-equivalent
Portion of fund's income 1.33% 0.00% 0.00% 0.69% 0.00%
subject to state taxes
New York
Municipal
Money Market
New York Tax-Free
Money Market
Funds Average
Row: 1, Col: 1, Value: 2.37
Row: 1, Col: 2, Value: 2.24
Row: 2, Col: 1, Value: 2.68
Row: 2, Col: 2, Value: 2.56
Row: 3, Col: 1, Value: 2.99
Row: 3, Col: 2, Value: 2.91
Row: 4, Col: 1, Value: 3.46
Row: 4, Col: 2, Value: 3.34
Row: 5, Col: 1, Value: 2.99
Row: 5, Col: 2, Value: 2.92
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
table 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 1999 federal, state and New York City
income tax rate of 42.83% and reflects that a portion of the fund's
income was subject to state taxes. A portion of the fund's income may
be subject to the federal alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
(checkmark)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.
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Diane McLaughlin)
An interview with Diane McLaughlin, Portfolio Manager of Fidelity New
York Municipal Money Market Fund
Q. DIANE, WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE PERIOD?
A. The U.S. economy was very strong in 1998. Growth in real GDP -
gross domestic product adjusted for inflation - approached 4% over the
course of the year. Employment was also quite robust, with the
unemployment rate averaging only 4.5% in 1998. Economic conditions
like these are usually accompanied by inflation. Wages started to
creep upward as employers increased pay to attract or retain workers.
But consumers didn't have to pay higher prices as the CPI (consumer
price index) hovered at a tame rate of 1.6% for the year. The strength
of the economy beat expectations; most market observers felt global
economic and financial crises would hurt growth in the U.S. much more
than they did. While the manufacturing sector experienced a downturn -
with exports from the U.S. suffering from increased competition - this
weakness was more than offset by solid domestic demand. Robust
consumer activity - especially in the holiday shopping season -
sustained growth through the end of 1998 and the beginning of 1999.
Q. HOW DID THIS BACKDROP AFFECT FEDERAL RESERVE BOARD MONETARY POLICY?
A. Despite this economic strength, the expectation of an eventual
slowdown prompted the Fed to lower the rate banks charge each other
for overnight loans - known as the fed funds target rate - by 0.25
percentage points in late September. The Fed followed with a second
rate cut in October, responding to financial instability in the
markets, the near-collapse of a highly leveraged hedge fund and
increased aversion to risk by investors in the market. The Fed
implemented an additional cut in November, citing the presence of
downside risks in global financial markets.
Q. WHAT WAS YOUR STRATEGY DURING THIS PERIOD?
A. The fund's maturity at the beginning of the 12-month period stood
at 37 days, and peaked at 54 days in mid-October. I extended the
fund's maturity through the summer months by buying fixed-rate,
one-year notes. There were two main reasons behind these purchases.
First, most issuers bring their one-year municipal securities to
market in the summer, and the additional supply typically drives
yields on these securities higher. In addition, it made sense to lock
in attractive one-year yields since it became clear the Fed was going
to make a move to cut short-term interest rates. Since reaching its
October peak, the maturity has since rolled down to 33 days at the end
of the period.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on January 31, 1999, was 2.39%, compared
to 2.98% 12 months ago. The latest yield was the equivalent of a 4.18%
taxable yield for New York investors in the 42.83% combined federal,
state and New York City tax bracket. Through January 31, 1999, the
fund's 12-month total return was 2.91%, compared to 2.81% for the New
York tax-free money market funds average, according to IBC Financial
Data, Inc.
Q. WHAT'S YOUR OUTLOOK FOR THE BEGINNING OF 1999?
A. In the minutes from its Open Market Committee meeting in November,
the Fed indicated that its decision to implement the latest
interest-rate cut was a tough one given the continued economic
strength in the U.S. At the same meeting, the Fed shifted from a bias
toward lowering rates to a neutral stance. The Fed might reverse
course and increase rates if continued strength in the economy is
finally reflected in higher prices. On the other hand, there is still
a risk that outside factors might threaten U.S. economic growth and
encourage the Fed to ease credit by lowering rates once again. Given
the uncertainty about the future course of interest rates, I'll seek
to maintain a flexible, neutral positioning with the fund's maturity.
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.
(checkmark)FUND FACTS
GOAL: high current income
free from federal income tax
and New York state and city
income taxes, by investing in
short-term municipal securities
of all types
FUND NUMBER: 092
TRADING SYMBOL: FNYXX
START DATE: July 6, 1984
SIZE: as of January 31,
1999, more than $1.2
billion
MANAGER: Diane McLaughlin,
since 1997; manager,
various Fidelity and Spartan
municipal money market
funds; joined Fidelity in
1992
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 1/31/99 % OF FUND INVESTMENTS 7/31/98 % OF FUND INVESTMENTS 1/31/98
0 - 30 78 76 69
31 - 90 12 13 19
91 - 180 7 3 8
181 - 397 3 8 4
WEIGHTED AVERAGE MATURITY
1/31/99 7/31/98 1/31/98
Fidelity New York
Municipal 33 DAYS 38 days 37 days
Money Market Fund
New York Tax-Free
Money 40 DAYS 47 days 44 days
Market Funds Average*
</TABLE>
ASSET ALLOCATION (% OF FUND'S
INVESTMENTS)
AS OF JANUARY 31, 1999
Variable rate demand
notes (VRDNs) 61%
Commercial paper
(including CP mode) 21%
Tender bonds 5%
Municipal
notes 11%
Other 2%
Row: 1, Col: 1, Value: 61.0
Row: 1, Col: 2, Value: 21.0
Row: 1, Col: 3, Value: 5.0
Row: 1, Col: 4, Value: 11.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 6, Value: 0.0
AS OF JULY 31, 1998
Variable rate demand
notes (VRDNs) 69%
Commercial paper
(including CP mode) 16%
Tender bonds 2%
Municipal
notes 13%
Other 0%
Row: 1, Col: 1, Value: 69.0
Row: 1, Col: 2, Value: 16.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 13.0
Row: 1, Col: 5, Value: 0.0
*SOURCE: IBC'S MONEY FUND REPORT (REGISTERED TRADEMARK)
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND
INVESTMENTS JANUARY 31, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL SECURITIES - 100.0%
PRINCIPAL AMOUNT VALUE (NOTE 1)
ALASKA - 0.2%
Valdez Marine Term. Rev.
Rfdg. (Exxon Pipeline Co.
Proj.):
Series 1993 B, 3.15%, VRDN (a) $ 1,300,000 $ 1,300,000
Series 1993 A, 3.15%, VRDN (a) 1,000,000 1,000,000
2,300,000
GEORGIA - 0.1%
Putnam County Poll. Cont. 1,000,000 1,000,000
Rev. (Pwr. Co. Plant Proj.)
2nd Series 1997, 3.2%, VRDN
(a)
ILLINOIS - 0.2%
Madison County Envir. Impt. 2,500,000 2,500,000
Rev. (Shell Wood River)
Series 1998 A, 3.25%, VRDN
(a)(d)
INDIANA - 0.2%
Rockport Poll. Cont. Rev. 2,300,000 2,300,000
(AEP Generating Co. Proj.)
Series 1995 B, 3.2% (AMBAC
Insured) (BPA Bank of New
York NA), VRDN (a)
LOUISIANA - 0.3%
Saint Charles Parish Poll. 3,100,000 3,100,000
Cont. Rev. (Shell Oil
Co.-Norco Proj.) Series
1991, 3.25%, VRDN (a)(d)
NEW YORK - 91.7%
Albany County Arpt. Auth. 2,800,000 2,800,000
Rev. Participating VRDN
Series FR 7, 2.95%
(Liquidity Facility Bank of
New York NA) (a)(d)(e)
Albany County Ind. Dev. Auth. 785,000 785,000
Ind. Dev. Rev. (Campus Plaza
7, Inc. Proj.) 2.8%, LOC
Marine Midland Bank NA, VRDN
(a)(d)
Amherst Ind. Dev. Auth. Ind. 800,000 800,000
Dev. Rev. (Maple Dev. Proj.)
Series 1986, 2.8%, LOC
Marine Midland Bank NA, VRDN
(a)(d)
Amsterdam Ind. Dev. Agcy. 1,880,000 1,880,000
Ind. Dev. Rev. (Longview
Fiber Co.) Series 1987,
2.9%, LOC ABN-AMRO Bank NV,
VRDN (a)
Babylon Ind. Dev. Rev. 3,200,000 3,200,000
(Southern Container Corp.)
2.85%, LOC Fleet Bank NA,
VRDN (a)(d)
Buffalo Gen. Oblig. RAN 3.75% 4,800,000 4,817,111
7/27/99, LOC Landesbank
Hessen-Thuringen
Chautauqua County Ind. Dev. 300,000 300,000
Auth. Rev. (Bush Industries,
Inc. Proj.) Series 84,
3.075%, LOC Mellon Bank NA,
Pittsburgh, VRDN (a)
Chemung County Ind. Dev.
Agcy. Ind. Dev. Rev.:
(MMARS Second Prog.) Series 1,000,000 1,000,000
A, 2.8%, LOC Marine Midland
Bank NA, VRDN (a)(d)
(McWayne, Inc. Proj.) Series 2,490,000 2,490,000
1992, 2.9%, LOC Amsouth
Bank, Birmingham, VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
Coldspring Hbr. Central $ 6,100,000 $ 6,108,485
School District TAN 3.75%
6/29/99
Columbia County Ind. Dev. 1,800,000 1,800,000
Agcy. Ind. Dev. Rev. (Philip
Morris Proj.) 2.6%, VRDN (a)
Commack N Y Union Free School 3,500,000 3,507,969
District TAN 4% 6/29/99
East Greenbush Gen. Oblig. 3,700,000 3,703,490
BAN 3.9% 6/24/99
Erie County Gen. Oblig. RAN 9,100,000 9,161,468
4% 10/13/99, LOC Bank of New
York NA
Erie County Ind. Dev. Auth. 1,215,000 1,215,000
Ind. Dev. Rev. (Uniland
Dev./Buffalo Campus) Series
1986, 2.8%, LOC Marine
Midland Bank NA, VRDN (a)(d)
Great Neck Union Free School 5,000,000 5,010,947
District TAN 4% 6/30/99
Hauppauge Union Free School 4,400,000 4,406,687
District TAN 3.9% 6/29/99
Huntington Union Free School 7,000,000 7,014,400
District TAN 3.9% 6/29/99
Islip Ind. Dev. Agcy. Rev. 1,350,000 1,350,000
(Interstate Litho Corp.)
Series 1996 A, 2.8%, LOC
Marine Midland Bank NA, VRDN
(a)(d)
Jefferson County Ind. Dev. 2,700,000 2,700,000
Agcy. Ind. Dev. Rev.
(Fisher Gauge Facilities)
Series 1996, 2.95%, LOC
Fleet Bank NA, VRDN (a)(d)
Long Beach Unified School 7,000,000 7,007,749
District TAN 4% 6/29/99
Long Island Pwr. Auth. Elec.
Sys. Rev.:
Bonds:
Series 3:
2.75% 2/25/99, LOC Bayerische 5,500,000 5,500,000
Landesbank Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, CP mode
2.95% 2/25/99, LOC Bayerische 8,000,000 8,000,000
Landesbank Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, CP mode
Series 4:
3.05% 3/11/99, LOC Bayerische 4,800,000 4,800,000
Landesbank Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, CP mode
3.05% 3/11/99, LOC Bayerische 5,200,000 5,200,000
Landesbank Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, CP mode
Participating VRDN:
Series 1998 10, 2.87% 1,800,000 1,800,000
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series 66, 2.87% (Liquidity 6,335,000 6,335,000
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
Long Island Pwr. Auth. Elec.
Sys. Rev.: - continued
Participating VRDN:
Series MS 44, 2.87% $ 6,600,000 $ 6,600,000
(Liquidity Facility Morgan
Stanley, Dean Witter & Co.)
(a)(e)
Series PT 1043, 2.85% 5,700,000 5,700,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series 1, 2.65%, LOC 48,100,000 48,100,000
Bayerische Landesbank
Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, VRDN (a)
3.15% (MBIA Insured) (BPA CS 8,700,000 8,700,000
First Boston, Inc.), VRDN (a)
Metropolitan Trans. Auth. 7,685,000 7,685,000
Commuter Facilities Rev.
Participating VRDN Series PT
1104A, 2.85% (Liquidity
Facility Merrill Lynch &
Co.) (a)(e)
Metropolitan Trans. Auth.
Trans. Facilities Rev.:
Series 1, 3% 3/31/99, LOC 15,000,000 15,000,000
ABN-AMRO Bank NV, CP
Series A:
3% 4/8/99, LOC ABN-AMRO Bank 5,000,000 5,000,000
NV, CP
3% 4/9/99, LOC ABN-AMRO Bank 20,600,000 20,600,000
NV, CP
Series B, 3.05% 3/12/99, LOC 10,000,000 10,000,000
ABN-AMRO Bank NV, CP
Monroe County Gen. Oblig. BAN 8,700,000 8,715,827
4% 7/23/99
Monroe County Ind. Dev. Agcy.
Rev.:
(Advent Tool & Mold) Series 520,000 520,000
1990 D, 2.8%, LOC Marine
Midland Bank NA, VRDN (a)(d)
(AJL Manufacturing) Series 1,800,000 1,800,000
1996 A, 2.8%, LOC Marine
Midland Bank NA, VRDN (a)(d)
(Flower City Proj.) 2.9%, LOC 4,200,000 4,200,000
Key Bank, NA, VRDN (a)(d)
(Illbruck Office Prod., Inc.) 3,385,000 3,385,000
Series 1997, 2.6%, LOC Key
Bank, NA, VRDN (a)(d)
Muni. Assistance Corp. for 5,700,000 5,700,000
New York City Participating
VRDN Series FR/RI A11, 2.95%
(Liquidity Facility Nat'l.
Westminster Bank PLC) (a)(e)
Nassau County Gen. Oblig. BAN:
Series 1999 A, 3.5% 8/17/99 10,000,000 10,021,295
Series E, 4% 5/18/99 11,400,000 11,421,112
Nassau County Ind. Dev. Auth. 4,930,000 4,930,000
Ind. Dev. Rev. (CR/PL, Inc.
Proj.) Series 1985, 3.25%,
LOC American Nat'l. Bank &
Trust, Chicago, VRDN (a)
New Rochelle City School 5,700,000 5,711,108
District TAN 4% 6/30/99
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York City Hsg. Dev. Corp.
Multi-family Hsg. Mtg. Rev.:
(West 43rd Street Dev.) $ 18,500,000 $ 18,500,000
Series 1996 B, 2.65%, LOC
Fleet Bank NA, VRDN (a)(d)
(York Avenue Proj.) Series 15,650,000 15,650,000
1994 A, 2.6%, VRDN (a)(d)
New York City Hsg. Dev. Corp.
Multi-family Mgt Rev.:
(Gerard Court Proj.) Series 4,600,000 4,600,000
1997A, 2.65%, LOC Bayerische
Hypo-und Vereinsbank AG,
VRDN (a)(d)
(Tompkins) Series 1997A, 7,100,000 7,100,000
2.65%, LOC Bayerische
Hypotheken-und Wechselbank
AG, VRDN (a)(d)
New York City Gen. Oblig.:
Bonds:
Series 1994 C 3, 3.5%, tender 19,740,000 19,740,000
3/1/99 (Liquidity Facility
Citibank, New York NA) (e)(f)
Series 1994 H5, 3.15% 2/9/99 4,100,000 4,100,000
(MBIA Insured) (BPA
Landesbank
Hessen-Thuringen), CP mode
Series 1996 J3, 3.35% 7,200,000 7,200,000
2/12/99, LOC Morgan Guaranty
Trust Co., NY, CP mode
Series H 3:
3.15% 2/9/99 (FSA Insured), 2,700,000 2,700,000
CP mode
3.15% 2/9/99 (FSA Insured) 5,500,000 5,500,000
(BPA State Street Bank &
Trust Co.), CP mode
3.35% 2/26/99 (FSA Insured), 1,700,000 1,700,000
CP mode
3.35% 2/26/99 (FSA Insured) 1,600,000 1,600,000
(BPA State Street Bank &
Trust Co.), CP mode
Series J 2, 3.15% 2/9/99, LOC 11,200,000 11,200,000
Commerzbank AG, CP mode
Participating VRDN:
Series FR-33, 2.9% (Liquidity 6,000,000 6,000,000
Facility Bank of New York
NA) (a)(e)
Series PT 1027, 2.85% 5,700,000 5,700,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series PT 1042, 2.85% 5,700,000 5,700,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series 1993 B, 3.3% (FGIC 8,700,000 8,700,000
Insured), VRDN (a)
Series 1993-E5, 3.3%, LOC 2,100,000 2,100,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
Series 1994A-7, 3.3%, LOC 2,950,000 2,950,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
Series 1994B 2, 3.3%, LOC 3,130,000 3,130,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
Series 1994E-2, 3.3%, LOC 3,100,000 3,100,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York City Gen. Oblig.: -
continued
Series 1994 E6, 3.3% (FGIC $ 1,800,000 $ 1,800,000
Insured), VRDN (a)
Series 1995 B5, 3.2% (MBIA 1,800,000 1,800,000
Insured) (BPA Bank of Nova
Scotia), VRDN (a)
Series 1995 B5, 3.2% (MBIA 7,300,000 7,300,000
Insured), VRDN (a)
Series A6, 2.5%, LOC 2,360,000 2,360,000
Landesbank Hessen-Thuringen,
VRDN (a)
New York City Hsg. Dev. Corp. 60,100,000 60,100,000
Multi-family Rent Hsg. Rev.
Series A, 2.45% (Fannie Mae
Guaranteed), VRDN (a)(d)
New York City Ind. Dev. Agcy. 2,725,000 2,725,000
Civic Fac. Rev. (Peninsula
Hosp. Ctr.) Series 1998,
2.95%, LOC Chase Manhattan
Bank, VRDN (a)
New York City Ind. Dev. Agcy.
Ind. Dev. Rev. Participating
VRDN:
Series 1996 H, 2.9% 1,730,000 1,730,000
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(d)(e)
Series 1997 E, 2.9% 5,020,000 5,020,000
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(d)(e)
Series 1997 H, 2.9% 3,700,000 3,700,000
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(d)(e)
New York City Muni. Wtr. Fin.
Auth.:
Participating VRDN:
Series PA 441, 2.82% 3,020,000 3,020,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series PA 454, 2.85% 12,995,000 12,995,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series SGB 25, 2.92% 28,600,000 28,600,000
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SGB 26, 2.92% 3,600,000 3,600,000
(Liquidity Facility Societe
Generale, France) (a)(e)
Series 4, 2.7% 2/24/99, LOC 7,600,000 7,600,000
Westdeutsche Landesbank
Girozentrale, CP
Series 5B, 3.05% 3/11/99, LOC 1,400,000 1,400,000
Westdeutsche Landesbank
Girozentrale, LOC Bayerische
Landesbank Girozentrale, CP
New York City Transitional 7,495,000 7,495,000
Fin. Auth. Rev.
Participating VRDN Series PA
431, 2.82% (Liquidity
Facility Merrill Lynch &
Co.) (a)(e)
New York Metropolitan Trans. 6,700,000 6,700,000
Auth. Bonds 3.5%, tender
3/1/99 (FGIC Insured)
(Liquidity Facility
Citibank, New York NA) (e)(f)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth.
Rev.:
Bonds (Sloan-Kettering Cancer
Ctr.):
Series 1989A:
2.75% 4/12/99, LOC Chase $ 1,000,000 $ 1,000,000
Manhattan Bank, CP mode
2.95% 4/7/99, LOC Chase 2,760,000 2,760,000
Manhattan Bank, CP mode
Series 1996:
2.95% 4/5/99, LOC Morgan 16,500,000 16,500,000
Guaranty Trust Co., NY, CP
mode
2.95% 4/7/99, LOC Morgan 1,500,000 1,500,000
Guaranty Trust Co., NY, CP
mode
Participating VRDN:
Series 1998, 2.87% (Liquidity 14,105,000 14,105,000
Facility Bank of America
Nat'l. Trust & Savings
Assoc.) (a)(e)
Series 97C3202, 2.82% 3,800,000 3,800,000
(Liquidity Facility
Citibank, New York NA) (a)(e)
Series PA 279, 2.85% 34,300,000 34,300,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series PA 341, 2.82% 2,820,000 2,820,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series PT 1067, 2.85% 6,000,000 6,000,000
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
(Jewish Med. Ctr.) Series I, 4,690,000 4,699,562
4.25% 7/1/99 (MBIA Insured)
New York State Energy 10,900,000 10,900,000
Research & Dev. Auth.
Participating VRDN Series
FR/RI 9, 2.9% (Liquidity
Facility Bank of New York
NA) (a)(e)
New York State Energy
Research & Dev. Auth. Elec.
& Gas Poll. Cont. Rev.:
Bonds:
Series 1985 B, 3.58%, tender 15,000,000 15,000,000
3/1/99, LOC Deutsche Bank AG
(New York State Elec. & Gas 11,300,000 11,300,000
Corp. Proj.) Series 1985 A,
3.58%, tender 3/15/99, LOC
Morgan Guaranty Trust Co., NY
Participating VRDN Series 43, 4,995,000 4,995,000
2.92% (Liquidity Facility
Morgan Stanley, Dean Witter
& Co.) (a)(d)(e)
(Niagara Mohawk Pwr. Proj.):
Series 1985 A, 3.2%, LOC 1,000,000 1,000,000
Toronto Dominion Bank, VRDN
(a)
Series 1985, 3.2%, LOC 1,800,000 1,800,000
Canadian Imperial Bank of
Commerce, VRDN (a)
Series A, 3.25%, LOC Toronto 1,000,000 1,000,000
Dominion Bank, VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Envir. $ 5,100,000 $ 5,100,000
Facility Corp. Participating
VRDN Series 943203, 2.92%
(Liquidity Facility
Citibank, New York NA) (a)(e)
New York State Envir. 12,400,000 12,400,000
Facility Corp. Solid Waste
Rev. Bonds (Gen. Elec.
Proj.) Series 1992 A, 2.65%
2/12/99, CP mode (d)
New York State Gen. Oblig.:
Bonds Series 1997A, 3% 1,000,000 1,000,000
2/26/99, LOC Bayerische
Landesbank Girozentrale, LOC
Landesbank Hessen-Thuringen,
CP mode
Series U, 3.1% 2/22/99, CP 14,800,000 14,800,000
Series V, 2.9% 4/9/99, CP 14,500,000 14,500,000
New York State Hsg. Fin.
Agcy. Hsg. Proj. Mtg. Rev.:
(240 East 39th Street) Series 42,500,000 42,500,000
1997 A, 2.45%, LOC Chase
Manhattan Bank, VRDN (a)(d)
(250 West 50th Street) Series 7,000,000 7,000,000
1997 A, 2.55%, LOC Fleet
Bank NA, VRDN (a)(d)
(Union Square South) Series 14,700,000 14,700,000
1996 A, 2.55%, LOC
Bayerische Hypotheken-und
Wechselbank AG, VRDN (a)(d)
New York State Local Govt.
Assistance Corp.
Participating VRDN:
Series PT 1040, 2.85% 12,495,000 12,495,000
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series SG 99, 2.85% 7,000,000 7,000,000
(Liquidity Facility Societe
Generale, France) (a)(e)
New York State Med. Care 5,999,000 5,999,000
Facilities Fin. Agcy. Rev.
Participating VRDN Series PA
89, 2.82% (Liquidity
Facility Merrill Lynch &
Co.) (a)(e)
New York State Mtg. Agcy.
Homeowner Mtg. Rev.
Participating VRDN:
Sereis 1969, 2.9% (Liquidity 4,720,000 4,720,000
Facility Merrill Lynch &
Co.) (a)(d)(e)
Series PA 153, 2.9% 2,000,000 2,000,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series PA 87, 2.88% 2,520,000 2,520,000
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series PT 108, 2.9% 3,500,000 3,500,000
(Liquidity Facility Banco
Santander SA) (a)(d)(e)
Series PT 11, 2.9% (Liquidity 4,245,000 4,245,000
Facility Commerzbank AG)
(a)(d)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Mtg. Agcy.
Homeowner Mtg. Rev.
Participating VRDN: -
continued
Series PT 15A, 2.9% $ 6,880,000 $ 6,880,000
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series PT 15B, 2.9% 3,600,000 3,600,000
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series PT 26, 2.9% (Liquidity 4,855,000 4,855,000
Facility Merrill Lynch &
Co.) (a)(d)(e)
Series RI 24, 3% (Liquidity 8,400,000 8,400,000
Facility Bank of New York
NA) (a)(d)(e)
Series 1997 G, 2.9% 5,550,000 5,550,000
(Liquidity Facility Caisse
des Depots et
Consignations) (a)(d)(e)
New York State Pwr. Auth.
Rev. & Gen. Purp.:
Bonds 3.45%, tender 3/1/99 11,400,000 11,400,000
Series 1:
3% 2/5/99, CP 9,600,000 9,600,000
3% 4/9/99, CP 1,500,000 1,500,000
3.1% 2/19/99, CP 6,000,000 6,000,000
3.15% 4/7/99, CP 2,800,000 2,800,000
3.3% 2/18/99, CP 5,500,000 5,500,000
3.35% 2/17/99, CP 14,200,000 14,200,000
Series 2:
3% 2/10/99, CP 8,900,000 8,900,000
3.05% 3/1/99, CP 19,700,000 19,700,000
New York State Thruway Auth. 10,000,000 10,000,000
Gen. Rev. Participating VRDN
Series MS 23, 2.87%
(Liquidity Facility Morgan
Stanley, Dean Witter & Co.)
(a)(e)
New York State Thruway Auth.
Hwy. & Bridge Trust Fund:
Series 1998 C, 4% 4/1/99 12,800,000 12,807,173
Series A, 4.5% 4/1/99 7,200,000 7,209,807
New York State Urban Dev.
Corp. Rev. Participating VRDN:
Series 1998, 2.9% (Liquidity 8,975,000 8,975,000
Facility Bank of New York
NA) (a)(e)
Series SG-33, 2.85% 3,650,000 3,650,000
(Liquidity Facility Societe
Generale, France) (a)(e)
Niagara Falls RAN:
Lot 1, 3.5% 12/10/99 (AMBAC 4,700,000 4,719,552
Insured)
Lot 2, 3.5% 1/7/00 (AMBAC 7,200,000 7,232,483
Insured)
North Hempstead Gen. Oblig. 10,570,000 10,570,000
Participating VRDN Series
1998 36, 2.87% (Liquidity
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
Oneida County Ind. Dev. Agcy. $ 2,315,000 $ 2,315,000
Rev. (Utica Corp.) Series
1996, 2.95%, LOC Fleet Bank
NA, VRDN (a)(d)
Oswego County Ind. Dev. Auth. 9,500,000 9,500,000
Poll. Cont. Rev. Rfdg.
(Philip Morris Co. Proj.)
2.85%, VRDN (a)
Oyster Bay Gen. Oblig. BAN:
3.75% 10/1/99 5,000,000 5,014,427
4% 2/25/99 6,150,000 6,151,793
Port Washington Union Free 3,400,000 3,405,138
School District TAN 4%
6/24/99
Riverhead Ind. Dev. Auth. 4,200,000 4,200,000
Ind. Dev. Rev. (Adchem Corp.
Facility) Series 1998,
2.72%, LOC European American
Bank Uniondale, VRDN (a)(d)
Rochester Gen. Oblig. BAN 9,600,000 9,603,931
Series I, 4% 3/9/99
Saint Lawrence County Ind. 6,400,000 6,400,000
Dev. Agcy. Impt. Rev.
(Reynolds Metals Proj.)
2.65%, LOC Royal Bank of
Canada, VRDN (a)(d)
Saint Lawrence Ind. Dev. 5,000,000 5,000,000
Auth. Envir. Facility
(Aluminum Co. of America
Proj.) Series 1998 A, 2.94%,
VRDN (a)(d)
Saratoga County Ind. Dev. 2,850,000 2,850,000
Agcy. (Spurlock Adhesives,
Inc.) Series 1997 A, 2.9%,
LOC Key Bank, NA, VRDN (a)(d)
Schenectady County Ind. Dev. 2,100,000 2,100,000
Agcy. Rev. (Super Steel
Schenectady Proj.) Series
1996 A, 2.6%, LOC Key Bank,
NA, VRDN (a)(d)
Seneca County Ind. Dev. Agcy. 3,700,000 3,700,000
(New York Chiropractic
College) Series 1997, 2.7%,
LOC Fleet Bank NA, VRDN (a)
Southampton Union Free School 5,800,000 5,806,622
District TAN 3.9% 6/25/99
Suffolk County Ind. Dev. 2,830,000 2,830,000
Agcy. Civic Fac. Rev.
(Maryhaven Ctr. of Hope)
Series 1997 A, 2.8%, LOC Key
Bank, NA, VRDN (a)
Vestal Central School 1,275,000 1,275,652
District BAN 3.77% 6/22/99
Wyoming County Ind. Dev. 410,000 410,000
Agcy. Ind. Dev. Rev.
(American Precision) Series
1988 A, 2.8%, LOC Marine
Midland Bank NA, VRDN (a)(d)
1,113,967,788
NEW YORK & NEW JERSEY - 7.0%
Port Auth. New York & New
Jersey Gen. Oblig.:
Participating VRDN:
2.85% (Liquidity Facility 10,000,000 10,000,000
Bank of America Nat'l. Trust
& Savings Assoc.) (Liquidity
Facility BankAmerica Corp.)
(a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK & NEW JERSEY -
CONTINUED
Port Auth. New York & New
Jersey Gen. Oblig.: -
continued
Participating VRDN:
Series GS 52, 2.9% (Liquidity $ 5,100,000 $ 5,100,000
Facility Societe Generale,
France) (a)(d)(e)
Series FR/RI 3, 2.9% 6,660,000 6,660,000
(Liquidity Facility Bank of
New York NA) (a)(d)(e)
Series 1996 1, 2.6%, VRDN (a) 5,000,000 5,000,000
Series 1997 1C, 2.6%, VRDN (a) 3,800,000 3,800,000
Series 1997 2, 2.7%, VRDN 1,600,000 1,600,000
(a)(d)
Series 1997 3A, 2.6%, VRDN (a) 10,200,000 10,200,000
Series 1996 4, 2.6%, VRDN (a) 4,200,000 4,200,000
Series 1997 4A, 2.7%, VRDN 2,300,000 2,300,000
(a)(d)
Series 3, 2.6%, VRDN (a) 6,600,000 6,600,000
Series A, 2.95% 4/5/99, CP (d) 4,800,000 4,800,000
Port Auth. New York & New
Jersey Spl. Oblig. Rev.
Participating VRDN:
Series 6, 2.9% (Liquidity 6,200,000 6,200,000
Facility Societe Generale,
France) (a)(d)(e)
Series FR/RI 16, 2.9% 9,800,000 9,800,000
(Liquidity Facility Bank of
New York NA) (a)(d)(e)
Series SG 117, 2.9% 8,755,000 8,755,000
(Liquidity Facility Societe
Generale, France) (a)(d)(e)
85,015,000
SHARES
OTHER - 0.3%
Municipal Central Cash Fund 4,100,778 4,100,778
(b)(c)
TOTAL INVESTMENT IN $ 1,214,283,566
SECURITIES - 100%
Total Cost for Income Tax Purposes $ 1,214,283,674
</TABLE>
SECURITY TYPE ABBREVIATION
BAN - BOND ANTICIPATION NOTE
CP - COMMERCIAL PAPER
RAN - REVENUE ANTICIPATION NOTE
TAN - TAX ANTICIPATION NOTE
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Information in this report regarding holdings by state and
security types does not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of its most recent fiscal period end is available upon request.
(c) At the period end, the seven-day yield of the Municipal Central
Cash Fund was 2.91%. The yield refers to the income earned by
investing in the fund over the seven-day period, expressed as an
annual percentage.
(d) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(e) Provides evidence of ownership in one or more underlying municipal
bonds.
(f) Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
SECURITY ACQUISTION DATE COST
New York City Gen. Oblig. 9/1/98 $ 19,740,000
Bonds Series 1994 C 3, 3.5%,
tender 3/1/99 (Liquidity
Facility Citibank, New York
NA)
New York Metropolitan Trans. 9/1/98 $ 6,700,000
Auth. Bonds 3.5%, tender
3/1/99 (FGIC Insured)
(Liquidity Facility
Citibank, New York NA)
OTHER INFORMATION
At the end of the period, restricted securities (excluding 144A
issues) amounted to $26,440,000 or 2.1% of net assets (see Note 2 of
Notes to Financial Statements
INCOME TAX INFORMATION
At January 31, 1999, the fund had a capital loss carryforward of
approximately $129,000 of which $38,000, $3,000, $33,000, $50,000 and
$5,000 will expire on January 31, 2001, 2004, 2005, 2006, and 2007,
respectively.
During the fiscal year ended January 31, 1999, 100% of the fund's
income dividends was free from federal income tax, and 38.68% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1999
ASSETS
Investment in securities, at $ 1,214,283,566
value - See accompanying
schedule
Receivable for investments 39,429,284
sold
Receivable for fund shares 26,479,318
sold
Interest receivable 8,562,519
Prepaid expenses 49,169
TOTAL ASSETS 1,288,803,856
LIABILITIES
Payable to custodian bank $ 218,253
Payable for investments 18,000,000
purchased
Payable for fund shares 13,467,518
purchased
Distributions payable 73,129
Accrued management fee 391,416
Other payables and accrued 249,093
expenses
TOTAL LIABILITIES 32,399,409
NET ASSETS $ 1,256,404,447
Net Assets consist of:
Paid in capital $ 1,256,533,472
Accumulated net realized gain (129,025)
(loss) on investments
NET ASSETS, for 1,256,368,181 $ 1,256,404,447
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($1,256,404,447
(divided by) 1,256,368,181
shares)
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 1999
INTEREST INCOME $ 38,698,043
EXPENSES
Management fee $ 4,316,690
Transfer agent fees 1,829,101
Accounting fees and expenses 155,062
Non-interested trustees' 4,305
compensation
Custodian fees and expenses 68,053
Registration fees 91,235
Audit 46,377
Legal 15,527
Miscellaneous 175
Total expenses before 6,526,525
reductions
Expense reductions (39,002) 6,487,523
NET INTEREST INCOME 32,210,520
NET REALIZED GAIN (LOSS) ON (2,262)
INVESTMENTS
NET INCREASE IN NET ASSETS $ 32,208,258
RESULTING FROM OPERATIONS
OTHER INFORMATION
Expense reductions
Custodian credits $ 24,744
Transfer agent credits 14,258
$ 39,002
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JANUARY 31, 1999 YEAR ENDED JANUARY 31, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 32,210,520 $ 28,576,683
Net realized gain (loss) (2,262) (52,805)
Increase (decrease) in net - (2,400)
unrealized gain from
accretion of discount
NET INCREASE (DECREASE) IN 32,208,258 28,521,478
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (32,210,520) (28,576,683)
from net interest income
Share transactions at net 3,575,190,769 2,792,087,742
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 31,407,887 27,750,434
distributions from net
interest income
Cost of shares redeemed (3,432,834,121) (2,617,216,206)
NET INCREASE (DECREASE) IN 173,764,535 202,621,970
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 173,762,273 202,566,765
IN NET ASSETS
NET ASSETS
Beginning of period 1,082,642,174 880,075,409
End of period $ 1,256,404,447 $ 1,082,642,174
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED JANUARY 31,
1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .029 .031 .029 .033 .024
Operations Net interest
income
Less Distributions
From net interest income (.029) (.031) (.029) (.033) (.024)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN 2.91% 3.13% 2.94% 3.32% 2.44%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,256,404 $ 1,082,642 $ 880,075 $ 822,866 $ 737,282
(000 omitted)
Ratio of expenses to average .58% .61% .61% .62% .60%
net assets
Ratio of net interest income 2.86% 3.10% 2.89% 3.26% 2.42%
to average net assets
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan New York Municipal Income Fund (the income fund) is a fund of
Fidelity New York Municipal Trust. Spartan New York Municipal Money
Market Fund and Fidelity New York Municipal Money Market Fund (the
money market funds) are funds 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 require management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the money market
funds and the income fund:
SECURITY VALUATION
INCOME FUND. 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. 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.
Short-term securities with remaining maturities of sixty days or less
for which quotations are not readily available are valued at amortized
cost or original cost plus accrued interest, both of which approximate
current value.
MONEY MARKET FUNDS. 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 funds, accretion of 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
among 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 transactions, market discount, and losses
deferred due to futures. The income fund also utilized earnings and
profits distributed to shareholders on redemption of shares as a part
of the dividends paid deduction for income tax purposes.
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). Accumulated undistributed net
realized gain (loss) on investments may include temporary book and tax
basis differences that will reverse in a subsequent period. 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.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission (the SEC), the funds may invest
in the Municipal Central Cash Fund (the Cash Fund) managed by Fidelity
Investments Money Management, Inc. (FIMM), an affiliate of Fidelity
Management & Research Company (FMR). The Cash Fund is an open-end
money market fund available only to investment companies and other
accounts managed by FMR and its affiliates. The Cash Fund seeks
preservation of capital, liquidity, and current income by investing in
high-quality, short-term municipal securities of various states and
municipalities. Income distributions from the Cash Fund are declared
daily and paid monthly from net interest income. Income distributions
earned by the funds are recorded as interest income in the
accompanying financial statements.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell
securities on a delayed delivery basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of
the underlying securities and the date when the securities will be
delivered and paid for are fixed at the time the transaction is
negotiated. Each fund may receive compensation for interest forgone in
the purchase of a delayed delivery security. With respect to purchase
commitments, each fund identifies securities as segregated in its
records with a value at least equal to the amount of the commitment.
Losses may arise due to changes in the market value of the underlying
securities or if the counterparty does not perform under the contract.
2. OPERATING POLICIES -
CONTINUED
FUTURES CONTRACTS. The income fund may use futures contracts to manage
its exposure to the bond market and to fluctuations in interest rates.
Buying futures tends to increase the fund's exposure to the underlying
instrument, while selling futures tends 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 or if the counterparties do not perform under
the contracts' terms. Gains (losses) are realized upon the expiration
or closing of the futures contracts. Futures contracts are valued at
the settlement price established each day by the board of trade or
exchange on which they are traded.
RESTRICTED SECURITIES. Certain funds are 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. Information regarding restricted securities is included
under the caption "Other Information" at the end of each applicable
fund's schedule of investments.
3. PURCHASES AND SALES
OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $352,815,282 and $285,028,757, respectively.
The market value of futures contracts opened and closed during the
period amounted to $151,529,946 and $161,061,300, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the funds' investment adviser for the income fund
and Fidelity New York Municipal Money Market Fund, 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
the 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 0.1100% to 0.3700% for the
period. The annual individual fund fee rate for each fund is 0.25%. 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. For the
period, the management fees were equivalent to annual rates of 0.38%
of average net assets for the income fund
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES. - CONTINUED
MANAGEMENT FEE - CONTINUED
and Fidelity New York Municipal Money Market Fund.
As Spartan New York Municipal Money Market Fund's investment adviser,
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 0.50% of the fund's average net
assets.
FMR also bears the cost of providing shareholder services to the fund.
To offset the cost of providing these services, FMR or its affiliates
collect certain transaction fees from the fund's shareholders which
amounted to $8,474 for the period.
SUB-ADVISER FEE. As the money market and the income (effective January
1, 1999) funds' investment sub-adviser, FIMM, 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.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian and transfer and shareholder servicing agent for the income
fund and Fidelity New York Municipal Money Market Fund. UMB has
entered into a sub-contract with Fidelity Service Company, Inc. (FSC),
an affiliate of FMR, under which FSC performs the activities
associated with the funds' transfer and shareholder servicing agent
and accounting functions. The funds pay 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, the transfer agent fees were equivalent to an annual
rate of 0.10% and 0.16% of average net assets for the income fund and
Fidelity New York Municipal Money Market Fund, respectively.
MONEY MARKET INSURANCE. Pursuant to an Exemptive Order issued by the
SEC, the money market funds, along with other money market funds
advised by FMR or its affiliates, have entered into insurance
agreements with FIDFUNDS Mutual Limited (FIDFUNDS), an affiliated
mutual insurance company, effective January 1, 1999. FIDFUNDS provides
limited coverage for certain loss events including issuer default as
to payment of principal or interest and bankruptcy or insolvency of a
credit enhancement provider. The insurance does not cover losses
resulting from changes in interest rates, ratings downgrades or other
market conditions. The funds may be subject to a special assessment of
up to approximately 2.5 times the funds' annual gross premium if
covered losses exceed certain levels. During the period, Fidelity New
York Municipal Money Market Fund paid premiums of $53,639 to FIDFUNDS
which are being amortized over one year. During the period, FMR has
borne the cost of Spartan New York Municipal Money Market Fund's
premium payable to FIDFUNDS.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the income fund's operating
expenses (excluding interest, taxes, brokerage commissions and
extraordinary expenses) above an annual rate of 0.53% of average net
assets.
In addition, the income fund, Fidelity New York Municipal Money Market
Fund and FMR, on behalf of Spartan New York Municipal Money Market
Fund, have entered into arrangements with their custodians and
transfer agents whereby credits realized as a result of uninvested
cash balances were used to reduce a portion of each applicable fund's
expenses. For the period, the reductions under these arrangements are
shown under the caption "Other Information" on each applicable fund's
Statement of Operations.
6. SHARE TRANSACTIONS.
Share transactions for the income fund were as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SHARES DOLLARS SHARES DOLLARS
YEAR ENDED JANUARY 31, YEAR ENDED JANUARY 31, YEAR ENDED JANUARY 31, YEAR ENDED JANUARY 31,
1999 1999 1998 1998
Shares sold 18,328,379 $ 236,488,822 9,891,184 $ 124,707,337
Issued in exchange for the - - 24,405,423 315,806,182
net assets of Spartan New
York Municipal Income Fund
Issued in exchange for the - - 4,167,207 54,257,038
net assets of Spartan New
York Intermediate Municipal
Income Fund
Issued in exchange for the - - 23,431,479 303,437,659
net assets of Fidelity New
York Insured Municipal
Income Fund
Reinvestment of
distributions 4,132,077 53,230,286 1,508,191 19,001,163
Shares redeemed (17,740,542) (228,808,660) (8,405,380) (105,564,962)
Net increase (decrease) 4,719,914 $ 60,910,448 54,998,104 $ 711,644,417
</TABLE>
7. MERGER INFORMATION.
On January 8, January 15, and January 22, 1998, Spartan New York
Municipal Income Fund, formerly Fidelity New York Municipal Income
Fund, (the fund) acquired all of the assets and assumed all of the
liabilities of Spartan New York Municipal Income Fund, Spartan New
York Intermediate Municipal Income Fund and Fidelity New York Insured
Municipal Income Fund (target funds), respectively. Each acquisition
was approved by the shareholders of the target funds on December 17,
1997. Based on the opinion of fund counsel, the reorganizations
qualified as tax-free reorganizations for federal income tax purposes
with no gain or loss recognized to the funds to their shareholders.
The fund's acquisition of Spartan New York Municipal Income Fund was
accomplished by an exchange of 24,405,423 shares of the fund for
28,222,179 shares then outstanding of Spartan New York Municipal
Income fund (each valued at $11.19). Spartan New York Municipal Income
Fund's net assets, including $23,652,998 of unrealized appreciation
were combined with the fund for total net assets after the acquisition
of $769,705,267.
The fund's acquisition of Spartan New York Intermediate Municipal
Income Fund was accomplished by an exchange of 4,167,207 shares of the
fund for 5,277,922 shares then outstanding of Spartan New York
Intermediate Municipal Income Fund (each valued at $10.28). Spartan
New York Intermediate Municipal Income Fund's net assets, including
$3,126,064 of unrealized appreciation were combined with the fund for
total net assets after the acquisition of $830,969,959.
The fund's acquisition of Fidelity New York Insured Municipal Income
Fund was accomplished by an exchange of 23,431,479 shares of the fund
for 24,974,293 shares then outstanding of Fidelity New York Insured
Municipal Income Fund (each valued at $12.15). Fidelity New York
Insured Municipal Income Fund's net assets, including $21,188,713 of
unrealized appreciation were combined with the fund for total net
assets after the acquisition of $1,130,460,046.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity New York Municipal Trust and Fidelity New
York Municipal Trust II and the shareholders of Spartan New York
Municipal Income Fund, Spartan New York Municipal Money Market Fund
and Fidelity New York Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Spartan New York Municipal Income Fund (a fund of Fidelity New York
Municipal Trust), Spartan New York Municipal Money Market Fund and
Fidelity New York Municipal Money Market Fund (funds of Fidelity New
York Municipal Trust II) at January 31, 1999, and the results of their
operations, the changes in their net assets and the financial
highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements")
are the responsibility of the funds' management; our responsibility is
to express an opinion on these financial statements based on our
audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require
that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of securities at January 31, 1999 by correspondence with the custodian
and brokers, provide a reasonable basis for the opinion expressed
above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
March 9, 1999
OTHER FUND INFORMATION
CHANGE IN INDEPENDENT AUDITOR. Based on the recommendation of the
Audit Committee of Spartan New York Municipal Income Fund, Spartan New
York Municipal Money Market Fund and Fidelity New York Municipal Money
Market Fund, the Board of Trustees has determined not to retain
PricewaterhouseCoopers LLP (PwC) as the funds' independent auditor and
voted to appoint Deloitte & Touche LLP for the fiscal year ended
January 31, 2000. During the two most recent fiscal years, PwC's audit
reports contained no adverse opinion or disclaimer of opinion; nor
were the reports qualified or modified as to uncertainty, audit scope,
or accounting principles. Further, there were no disagreements between
the funds and PwC on accounting principles, financial statement
disclosure or audit scope, which if not resolved to the satisfaction
of PwC would have caused it to make reference to the disagreements in
connection with its report.
DISTRIBUTIONS
The Board of Trustees of Spartan New York Municipal Income Fund voted
to pay on March 8, 1999 to shareholders of record at the opening of
business on March 5, 1999, a distribution of $.021 per share derived
from capital gains realized from sales of portfolio securities.
The Spartan New York Municipal Income Fund hereby designates 100% of
the long-term capital gain dividends distributed during the fiscal
year as 20%-rate capital gain dividends.
OF SPECIAL NOTE
INTRODUCING FIDELITY'S NEW, REORGANIZED PROSPECTUS
Recently, the SEC issued new disclosure requirements for all mutual
fund prospectuses. While Fidelity could have complied by simply
following the new requirements, we saw a different opportunity. We saw
the chance to create a brand new prospectus: one that is better
organized, easier to use and more informative than ever.
The new format of the Fidelity mutual fund prospectus puts the
information you need to make informed investment decisions right at
your fingertips. In the opening pages, you will find the SEC-mandated
summary that highlights the fund's investment objectives, strategies
and risks. There's also an easy-to-read performance chart and fee
table right up front.
Inside, you will find additional features we've introduced to make the
fund prospectus a more useful tool. In our new Shareholder Information
section, for example, we have provided practical, beneficial
information - from how to buy or sell shares, key contact information,
investment services, ways to set up your account and more - all in one
convenient location.
We invite you to spend a moment and review our new prospectus. It is
designed to help make your investment decision easier, no matter which
of the Fidelity funds you invest in.
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpress(registered trademark) provides a single
toll-free number to access account balances, positions, quotes and
trading. It's easy to navigate the service, and on your first call,
the system will help you create a personal identification number (PIN)
for security.
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(COMPUTER_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call EarthLink Sprint at
1-800-288-2967, and be sure to ask for registration number SMD004 to
receive a special Fidelity package that includes 30 days of free
Internet access. EarthLink is North America's #1 independent Internet
access provider.
(COMPUTER_GRAPHIC)
FIDELITY ON-LINE XPRESS+(registered trademark)
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE
WILL ALSO VARY. THIS MEANS THAT YOU MAY HAVE A GAIN OR LOSS WHEN YOU
SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY MARKET FUNDS WILL
BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY
MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT. TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY
SALES CHARGES.
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and
send you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048
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 500
Merrimack, NH 03054-0500
(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 500
Merrimack, NH 03054-0500
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Investments
Money Management, Inc.
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning Jr., Vice President
Dwight D. Churchill, Vice President -
INCOME FUND
Boyce I. Greer, Vice President -
MONEY MARKET FUNDS
Norman U. Lind, Vice President -
INCOME FUND
Diane M. McLaughlin, Vice President -
MONEY MARKET FUNDS
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
Stanley N. Griffith, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant
Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
NYS-ANN-0399 72371
1.700624.101
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
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)
TouchTone Xpress(registered trademark) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
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Corporate Headquarters
82 Devonshire St., Boston, MA 02109
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