SPARTAN CALIFORNIA MUNICIPAL FUNDS
SUPPLEMENT TO THE PROSPECTUS DATED APRIL 16, 1993
SCR-93-7 (continued) September 1, 1993
TO HELP YOU LEARN MORE ABOUT FIDELITY'S SPARTAN CALIFORNIA HIGH YIELD FUND,
WE ARE PROVIDING THE FOLLOWING BACKGROUND INFORMATION ON THE MANAGER'S
EXPERIENCE DURING THE PAST FIVE YEARS. THE OTHER SECTIONS UPDATE THE
SUMMARY OF FUND EXPENSES AND THE FUNDS' FINANCIAL HISTORIES IN THE ATTACHED
PROSPECTUS. PLEASE CALL US AT 1-800-544-8888 IF YOU WOULD LIKE A COPY OF
THE LATEST ANNUAL OR SEMIANNUAL REPORT FOR THESE FUNDS.
* * *
FUND MANAGER BIOGRAPHY
JOHN (JACK) HALEY JR. has been portfolio manager and vice president of
Spartan California Municipal High Yield Portfolio since December 1989,
Fidelity California Tax-Free Insured Portfolio since 1986, and Fidelity
California Tax-Free High Yield Portfolio since 1985. Since 1985, he has
also managed Fidelity Advisor Limited Term Tax-Exempt Portfolio. He
previously managed Fidelity Limited Term Municipals.
* * *
TEMPORARY EXPENSE LIMITATION. Effective September 1, 1993, FMR has
voluntarily agreed to temporarily limit the total expenses of the money
market fund (excluding interest, taxes, brokerage commissions, and
extraordinary expenses) to an annual rate of .20% of the fund's average net
assets. As long as this temporary expense limitation continues, it will
lower the money market fund's expenses and increase its yield. This expense
limitation may be terminated or revised at any time, at which time the
fund's expenses will go up and its yield will be reduced.
The following replaces corresponding sections under the heading "Summary of
Fund Expenses" beginning on page 2.
MONEY HIGH
MARKET YIELD
FUND FUND
B. ANNUAL FUND OPERATING EXPENSES - (as a percentage of average net
assets)
Management Fee 0.20 %* 0.55%
12b-1 Fee None None
Other Expenses 0.00 % 0.00%
TOTAL FUND OPERATING EXPENSES 0.20 % 0.55%
* NET OF REIMBURSEMENT
C. EXAMPLES
You would pay the following expenses on a $1,000 investment in each fund,
assuming (1) a
5% annual return and (2) full redemption at the end of each time period:
One year $ 7 $11
Three years $ 11 $23
Five years $ 16 $36
Ten years $ 31 $74
You would pay the following expenses on the same investment, assuming no
redemptions:
One year $ 2 $ 6
Three years $ 6 $18
Five years $ 11 $31
Ten years $ 26 $6 9
B. ANNUAL FUND OPERATING EXPENSES are based on the funds' expenses after
reimbursement. Management fees are paid by each fund to FMR to provide the
funds with investment advisory and other services, such as maintaining
shareholder records, portfolio accounting, and custodial services. FMR is
responsible for all other expenses of the funds with certain exceptions.
Expenses eligible for reimbursement by FMR do not include interest, taxes,
brokerage commissions (if any), or extraordinary expenses. FMR has
voluntarily agreed to temporarily limit the total operating expenses of the
money market fund to annual rate of .20% of the fund's average net
assets. If this agreement were not in effect, the management fee, other
expenses, and total operating expenses for the money market fund would have
been .50%, .00%, and .50%, respectively. Management fees and other expenses
are reflected in each fund's share price or dividends and are not charged
directly to individual accounts. Please refer to the section entitled
"Management, Distribution, and Service Fees" on page 13 for further
information.
The following information replaces the last sentence of the section
entitled "The Funds' Investments" beginning on page 6.
"The high yield fund does not intend to invest in federally or state
taxable obligations under normal conditions."
* * *
MONEY MARKET FUND FINANCIAL HIGHLIGHTS
(page 3 of 4)
Ten Months November 27, 1989
Ended (Commencement
February 28, Years Ended April 30, of Operations) to
1993 1992 1991 April 30, 1990
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 1.000000 $ 1.000000 $ 1.000000 $
1.000000
Net interest income .022193 .040769 .053819 .025165
Dividends from net interest income (.022193) (.040769) (.053819)
(.025165)
Net asset value, end of period $ 1.000000 $ 1.000000 $ 1.000000 $ 1.000000
TOTAL RETURN (dagger) 2.69%* 4.15% 5.52% 6.08%*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 855,590 $ 917,640 $ 763,959 $
396,652
Ratio of expenses to average net assets .30%* .10% .07% --
Ratio of expenses to average net assets before voluntary
expense limitation .50%* .50% .50% .50%*
Ratio of net interest income to average net assets 2.67%* 4.05% 5.33%
5.99%*
* ANNUALIZED
(dagger) THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD THE ADVISER NOT
REIMBURSED CERTAIN EXPENSES DURING THE PERIODS SHOWN.
HIGH YIELD FUND FINANCIAL HIGHLIGHTS
(page 4 of 4)
November 27, 1989
Ten Months (Commencement
Ended Years Ended April 30, of Operations) to
February 28, 1993 1992 1991 April 30, 1990
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 10.540000 $ 10.240000 $ 9.760000 $ 10.000000
Income from Investment Operations
Net interest income .543357 .663106 .706224 .300683
Net realized and unrealized gain (loss) on investments .857898 .297169 .472301 (.248564)
Total from investment operations 1.401255 .960275 1.178525 .052119
Less Distributions
From net interest income (.543357) (.663106) (.706224) (.300683)
From net realized gain on investments (.070000) - - -
Total distributions (.613357) (.663106) (.706224) (.300683)
Redemption fees added to paid in capital .002102 .002831 .007699 .008564
Net asset value, end of period $ 11.330000 $ 10.540000 $ 10.240000 $ 9.760000
TOTAL RETURN (dagger) 16.52%* 9.66% 12.52% 1.39%*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 573,871 $ 479,137 $ 281,725 $ 107,409
Ratio of expenses to average net assets .40%* .36% .19% .00%*
Ratio of expenses to average net assets before voluntary expense .55%* .55% .55% .55%*
limitation
Ratio of net interest income to average net assets 6.07%* 6.36% 7.02% 7.42%*
Portfolio turnover rate 26%* 13% 15% 5%*
</TABLE>
* ANNUALIZED
(dagger) THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD THE ADVISER NOT
REIMBURSED CERTAIN EXPENSES DURING THE PERIODS SHOWN.
The per-share data and ratios have been audited by Price Waterhouse,
independent accountants, whose unqualified report is included in the funds'
annual report. The annual report is incorporated by reference into the
Statement of Additional Information.
