SPARTAN(registered trademark)
(registered trademark)
CALIFORNIA
MUNICIPAL
PORTFOLIOS
ANNUAL REPORT
FEBRUARY 28, 1995
CONTENTS
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING
STRATEGIES
SPARTAN CALIFORNIA MUNICIPAL
HIGH YIELD PORTFOLIO 4 PERFORMANCE
7 FUND TALK: THE MANAGER'S OVERVI
EW
10 INVESTMENT CHANGES
11 INVESTMENTS
20 FINANCIAL STATEMENTS
SPARTAN CALIFORNIA
INTERMEDIATE MUNICIPAL
PORTFOLIO 24 PERFORMANCE
27 FUND TALK: THE MANAGER'S OVERVI
EW
30 INVESTMENT CHANGES
31 INVESTMENTS
35 FINANCIAL STATEMENTS
SPARTAN CALIFORNIA MUNICIPAL
MONEY MARKET PORTFOLIO 39 PERFORMANCE
41 FUND TALK: THE MANAGER'S OVERVI
EW
43 INVESTMENT CHANGES
44 INVESTMENTS
53 FINANCIAL STATEMENTS
NOTES 57 NOTES TO THE FINANCIAL STATEMENTS
REPORT OF INDEPENDENT
ACCOUNTANTS 60 THE AUDITOR'S OPINION
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK. FOR MORE
INFORMATION ON ANY FIDELITY FUND INCLUDING CHARGES AND EXPENSES, CALL
1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although there have been a few positive market indications so far in 1995,
no one can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
SPARTAN CALIFORNIA MUNICIPAL HIGH YIELD PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value), and the effect of the $5 account closeout fee.
You can also look at the fund's income to measure performance. If Fidelity
had not reimbursed certain fund expenses during the periods shown, the
total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan California Municipal High Yield -0.86% 45.36% 47.85%
Lehman Brothers Municipal Bond Index 1.88% 46.94% n/a
Average California Municipal Bond Fund 0.19% 42.95% n/a
Consumer Price Index 2.86% 17.89% 19.86%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a specific period - in this case, one year, five years, or since the
fund started on November 27, 1989. For example, if you invested $1,000 in a
fund that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare the fund's returns to the performance of
the Lehman Brothers Municipal Bond Index - a broad gauge of the municipal
bond market. To measure how the fund's performance stacked up against its
peers, you can compare it to the average California municipal bond fund,
which reflects the performance of 83 California municipal bond funds with
similar objectives tracked by Lipper Analytical Services during the period
covered by this report. Both benchmarks include reinvested dividends and
capital gains, if any. Comparing the fund's performance to the consumer
price index (CPI)helps show how your fund did compared to inflation. (The
CPI returns begin on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan California Municipal High Yield -0.86% 7.77% 7.72%
Lehman Brothers Municipal Bond Index 1.88% 8.00% n/a
Average California Municipal Bond Fund 0.19% 7.40% n/a
Consumer Price Index 2.86% 3.35% 3.51%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Spartan California: Municipal Bond Index
11/30/89 10000.00 10000.00
12/31/89 10089.59 10082.00
01/31/90 9987.25 10034.61
02/28/90 10117.34 10123.92
03/31/90 10159.31 10126.96
04/30/90 10004.70 10054.05
05/31/90 10291.88 10273.22
06/30/90 10405.50 10363.63
07/31/90 10581.76 10515.97
08/31/90 10331.18 10363.49
09/30/90 10395.12 10369.71
10/31/90 10553.01 10557.40
11/30/90 10839.12 10769.61
12/31/90 10913.35 10816.99
01/31/91 11018.96 10961.94
02/28/91 11069.18 11057.31
03/31/91 11087.32 11061.73
04/30/91 11257.62 11208.85
05/31/91 11362.91 11308.61
06/30/91 11346.28 11297.30
07/31/91 11518.86 11435.13
08/31/91 11648.23 11586.07
09/30/91 11801.24 11736.69
10/31/91 11931.26 11842.32
11/30/91 11937.33 11875.48
12/31/91 12173.80 12130.80
01/31/92 12203.82 12158.70
02/29/92 12206.42 12162.35
03/31/92 12224.29 12167.22
04/30/92 12344.95 12275.51
05/31/92 12515.93 12420.36
06/30/92 12732.26 12629.02
07/31/92 13141.12 13007.89
08/31/92 12932.78 12880.41
09/30/92 13009.41 12964.13
10/31/92 12727.07 12837.09
11/30/92 13058.60 13066.87
12/31/92 13248.13 13200.15
01/31/93 13414.25 13353.27
02/28/93 14043.75 13836.66
03/31/93 13901.26 13689.99
04/30/93 14029.90 13828.26
05/31/93 14111.34 13905.70
06/30/93 14341.34 14137.93
07/31/93 14346.55 14156.31
08/31/93 14721.67 14450.76
09/30/93 14903.96 14615.49
10/31/93 14947.65 14643.26
11/30/93 14794.60 14514.40
12/31/93 15105.41 14820.66
01/31/94 15269.33 14989.61
02/28/94 14833.82 14601.38
03/31/94 14078.13 14007.11
04/30/94 14135.56 14126.17
05/31/94 14220.75 14249.06
06/30/94 14092.84 14166.42
07/31/94 14375.53 14425.66
08/31/94 14419.03 14476.15
09/30/94 14204.27 14263.36
10/31/94 13876.56 14009.47
11/30/94 13516.99 13755.90
12/31/94 13750.65 14058.53
01/31/95 14245.82 14460.60
02/28/95 14707.07 14881.40
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
California Municipal High Yield Portfolio on November 30, 1989, shortly
after the fund started. As the chart shows, by February 28, 1995, the value
of your investment would have grown to $14,707 - a 47.07% increase on your
initial investment. This assumes you still own the fund on February 28,
1995 and therefore does not include the effect of the $5 account closeout
fee. For comparison, look at how the Lehman Brothers Municipal Bond Index
did over the same period. With dividends reinvested, the same $10,000 would
have grown to $14,881 - a 48.81% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
YEARS ENDED FEBRUARY 28,
1995 1994 1993 1992 1991
Dividend returns 5.83% 5.62% 6.72% 6.83% 7.51%
Capital appreciation
returns -6.69% 0.00% 8.32% 3.43% 1.89%
Total returns -0.86% 5.62% 15.04% 10.26% 9.40%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED FEBRUARY 28, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 4.57(cents) 29.79(cents) 60.33(cents)
Annualized dividend rate 6.01% 6.21% 6.06%
30-day annualized yield 5.97% - -
30-day annualized tax-equivalent yield 10.48% - -
</TABLE>
DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $9.91 over
the past month, $9.68 over the past six months and $9.95 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 43.04% combined effective 1995 federal and state income tax bracket.
SPARTAN CALIFORNIA MUNICIPAL HIGH YIELD PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
A municipal bond market rally
beginning in mid-November
helped to counteract the negative
effects of several months of
sharply rising interest rates. For
the 12 months ended February
28, 1995, the Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
had a total return of 1.88%. By
comparison, the Lehman Brothers
Aggregate Bond Index - a proxy
of investment-grade taxable
bonds - returned 1.78%. Interest
rate increases had caused a
significant downturn in all U.S.
bond markets through the first
nine of the 12 months ended
February 28, 1995. From March
1994 through February 1995, the
Federal Reserve Board raised the
federal funds rate - the rate
banks charge each other for
overnight loans - six times,
increasing the rate by 2.75% to
6.00%. These actions sparked
inflation fears, leading to a sharp
sell-off in all bond markets. The
municipal market saw further
instability from September through
mid-November, as investors sold
bonds to realize losses for tax
purposes. From mid-November
through the end of February, the
municipal market rebounded as
there were indications that
Federal Reserve Board rate hikes
were having their intended effect
of slowing the economy and
reducing the risk of inflation. In
addition, the recent rally was
helped by an abatement of
tax-loss selling and a decrease in
the supply of new municipal
bonds.
NOTE TO SHAREHOLDERS:
On March 27, 1995, Jonathan Short
(left) became portfolio manager of Spartan California Municipal High Yield
Portfolio. The following is an interview with John Haley - who managed the
fund during the period covered by this report - with some comments from Jon
Short on his outlook and strategy:
Photo of
JOHN SHORT
Photo of
JOHN HALEY
Q. JACK, HOW HAS THE FUND PERFORMED?
J.H. It was a volatile 12 months for both the municipal bond market and the
fund. For the year ended February 28, 1995, the fund had a total return of
- -0.86%. That trailed the average California municipal fund, which returned
0.19% for the same period, according to Lipper Analytical Services.
Q. WHILE ALL MUNICIPAL BONDS SUFFERED FROM FEARS OF INFLATION AND RISING
INTEREST RATES, CALIFORNIA MUNICIPAL BONDS EXPERIENCED ADDITIONAL
PROBLEMS...
J.H. That's true, especially late in 1994 and early 1995. Prior to that,
California bonds held their own relative to the national municipal market.
The state experienced continued, but gradual, improvements in the economy
and there were some positive fiscal developments. However, when Orange
County declared bankruptcy, there was a general widening of credit spreads.
By that I mean that yields on California bonds had to rise, relative to the
national municipal market, in order to compensate investors for the
additional perceived risk. As those yields rose, prices fell. Bonds issued
by Orange County were hit the worst, although there was a ripple effect on
other counties which had investments in its pools.
Q. WHY DID THE FUND LAG THE AVERAGE?
J.H. Primarily because it had a heavy concentration in longer-term discount
bonds - which sell below face value - and zero coupon bonds. These two
types of bonds tend to fall more than others when interest rates are
rising. While discount and zero coupon bonds hurt the fund's performance
during most of 1994, they turned out to be a positive later in the year and
in the first two months of 1995 when yields were falling and bond prices
were rising. I've utilized the market's recent strength to selectively
reduce the fund's holdings in these types of bonds.
Q. IS THE FUND INVESTED IN ANY ORANGE COUNTY SECURITIES?
J.H. The fund had no investments in uninsured securities issued by Orange
County at end of the period. However, the fund did have about a 4.5% stake
in insured securities issued by Orange County and municipalities which had
investments in the Orange County investment pool. That insurance means that
the securities' principal and interest payments are guaranteed.
Additionally, the fund had less than a 3% stake in uninsured securities
issued by municipalities which participated in the Orange County investment
pool. In my view, the losses sustained by the municipalities in the
county's investment pool should be seen as a one-time setback for their
financial health, which shouldn't hinder their longer-term viability.
Though they may face some short-term cash flow hurdles, which temporarily
may put downward pressure on their credit quality, I believe their
long-term credit viability will not be impacted. Another bond affected by
Orange County's bankruptcy was the Orange County Development Agency, Santa
Ana Heights Project, which made up less than 1% of the fund's investments
at the end of the period. This bond carries different ratings by the credit
agencies - Caa by Moody's Investors Service and BBB by Standard & Poor's.
That split rating revolves around the relationship between Orange County
and the Development Agency. In my view, the county and the Development
Agency are two separate entities. As a result, the Development Agency has
pledged a distinct revenue flow to cover interest and principal payments.
After the period ended, the Development Agency paid its scheduled debt
service payment in full, which improved the outlook for the bond.
Q. JON, WHAT'S AHEAD FOR THE FUND?
J.S. I'll focus on tempering the fund's duration. I plan to do that partly
through de-emphasizing long-term bonds with maturities of 20 years or more,
and emphasizing short- and intermediate-term bonds. And because I believe
that the economy could start to slow, I'll most likely invest less in
low-and medium-quality bonds and more in high-quality and insured bonds.
FUND FACTS
GOAL: to provide tax-free
income for California residents
START DATE: November 27,
1989
SIZE: as of February 28,
1995, more than $395 million
MANAGER: John Haley, 1989 -
March 1995; Jonathan Short,
starting March 27, 1995; also
manager, Fidelity California
Tax-Free High Yield, Fidelity
California Tax-Free Insured
and Spartan California
Intermediate Municipal
Portfolios, since March 1995;
joined Fidelity
in 1992
(checkmark)
JONATHAN SHORT ON HIS
INVESTMENT STRATEGY:
"During the market's recent
rally, credit spreads - the
difference in yields on bonds
with various credit ratings -
have narrowed. That means
that currently there is less
incentive, in the form of extra
income, to own lower- and
medium-quality bonds. That
narrowing was partly due to
improvements in the
economy, which in turn
boosted the prospects for
lower- and medium-quality
bonds in general. A weaker
economy, which is what I think
could develop over the next
12 months, could translate
into a widening of credit
spreads. That means the
prices of lower-quality bonds
would have to fall more or rise
less than higher-quality bonds
as yields rise."
(solid bullet) Inverse floaters, one of the
financial arrangements known
as derivatives, made up less
than 3% of the fund's
investments at the end of the
period. The yield on inverse
floaters rises as short-term
interest rates fall, and vice
versa. By using various
derivatives, the manager
hopes to achieve higher
levels of tax-exempt income
and increased flexibility in
managing the fund's overall
sensitivity to changes in
interest rates.
SPARTAN CALIFORNIA MUNICIPAL HIGH YIELD PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF FEBRUARY 28, 1995
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO
Health Care 19.8 20.7
Lease Revenue 19.7 20.6
Special Tax 19.7 19.8
Electric Revenue 7.9 8.3
Housing 6.6 5.4
AVERAGE YEARS TO MATURITY AS OF FEBRUARY 28, 1995
6 MONTHS AGO
Years 19.2 21.5
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 FEBRUARY 28, 1995
6 MONTHS AGO
Years 8.6 10.3
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THE ABOVE EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF FEBRUARY 28, 1995 AS OF AUGUST 31, 1994
Aaa 26.2%
Aa, A 38.6%
Baa 15.5%
Caa 0.7%
Non-rated 13.5%
Short-term and other
investments 5.5%
Aaa 31.6%
Aa, A 36.6%
Baa 18.4%
Ba, B 0.0%
Non-rated 11.6%
Short-term and other
investments 1.8%
Row: 1, Col: 1, Value: 26.2
Row: 1, Col: 2, Value: 38.6
Row: 1, Col: 3, Value: 15.5
Row: 1, Col: 4, Value: 1.7
Row: 1, Col: 5, Value: 13.5
Row: 1, Col: 6, Value: 5.5
Row: 1, Col: 1, Value: 31.6
Row: 1, Col: 2, Value: 36.6
Row: 1, Col: 3, Value: 18.4
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 11.6
Row: 1, Col: 6, Value: 2.8
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS. UNRATED DEBT SECURITIES THAT ARE
EQUIVALENT TO BA AND BELOW ACCOUNTED FOR 4.3% AND 4.3% OF THE FUND'S
INVESTMENTS ON FEBRUARY 28, 1995, AND AUGUST 31, 1994, RESPECTIVELY.
SPARTAN CALIFORNIA MUNICIPAL HIGH YIELD PORTFOLIO
INVESTMENTS FEBRUARY 28, 1995
Showing Percentage of Total Value of Investments
MUNICIPAL BONDS - 94.5%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - 93.8%
Alameda County Ctfs. of Prtn. Rfdg.
(Santa Rita Jail Proj.)
5.375% 6/1/09 (MBIA Insured) Aaa $ 1,250,000 $ 1,185,938
Alameda Hsg. Auth. Multi-Family Hsg. Rev.
(Independence Apts.) Series A,
7.50% 2/20/31 (GNMA Coll.) - 1,770,000 1,823,100
Anaheim Pub. Fing. Auth. Tax Allocation Rev.:
(Cap. Appreciation Redev. Proj.)
0% 12/1/06 (MBIA Insured) Aaa 5,000,000 2,550,000
(Reg. Rites) 8.432% 12/1/18 (MBIA Insured)
INFL (d) Aaa 1,500,000 1,612,500
Buena Park Commty. Redev. Agcy. Tax Allocation
Rfdg. (Central Business Dist. Proj.)
7.10% 9/1/14 BBB+ 1,500,000 1,333,125
Burbank Redev. Agcy. Tax Allocation Series A:
Rfdg. 6% 12/1/23 Baa1 1,950,000 1,735,500
5.25% 12/1/08 Baa1 2,355,000 2,184,263
California Dept. Wtr. Resources Wtr. Sys. Rev.
(Central Valley Proj.) Series J-1, 7%
12/1/12 Aa 1,000,000 1,113,750
California Health Facs. Fing. Auth. Rev.:
(Children's Hosp.) Series A,
7.50% 10/1/20 (MBIA Insured) Aaa 2,450,000 2,646,000
(Gould Med. Foundation) Series A,
7.30% 4/1/20 A 1,500,000 1,638,750
(Los Medanos Health Care Corp.) Series A,
7.25% 3/1/20 A 1,500,000 1,524,375
(Mills-Peninsula Hosp.) Series A,
7.875% 1/15/12 A- 2,000,000 2,072,500
(Scripps Health) Series A,
4.625% 10/1/13 (MBIA Insured) Aaa 1,075,000 881,500
California Hsg. Fin. Agcy. Rev. (Home Mtg.):
Series A, 0% 8/1/23 (b) Aa 3,650,000 415,188
Series C:
8.30% 8/1/19(b) Aa 1,910,000 2,005,500
0% 8/1/21(b) Aa 5,870,000 770,438
7.60% 8/1/30(b) Aa 6,580,000 6,867,875
Series E, 5.50% 8/1/14 Aa 2,000,000 1,815,000
Series F-2,. 7.25% 8/1/16 (b)(e) Aa 4,620,000 4,874,100
California Gen. Oblig.:
6% 9/1/03 A1 5,000,000 5,162,500
4.75%, 9/1/23 A1 180,000 142,200
California Pub. Cap. Impt. Fing. Auth. Rev.
(Pooled Proj.) Series B,
8.10% 3/1/18(MBIA Insured) Aaa 1,885,000 1,995,744
California Pub. Works Board Lease Rev.:
Rfdg. (Dept. Correction State Prisons) Series A:
5.25% 12/1/13, (AMBAC Insured) Aaa 1,355,000 1,229,663
5% 12/1/19, (AMBAC Insured) Aaa 2,500,000 2,128,125
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Pub. Works Board Lease Rev. - continued
(California University Proj.):
Series A, 5.50% 6/1/14 (f) A $ 6,475,000 $ 5,698,000
Series B, 6.40% 12/1/09 A1 1,000,000 1,006,250
California Statewide Commty. Dev. Corp.
Ctfs. of Prtn.:
Rfdg. (Eskaton, Inc.)
5.875% 5/1/20 A 3,900,000 3,500,250
Rfdg. (Triad Healthcare)
6.25% 8/1/06 A 2,000,000 1,992,500
(Villaview Commty. Hosp., Inc.) Series A,
7% 9/1/09 A 1,200,000 1,240,500
(Catholic Healthcare West)
5.54% 7/1/13 (MBIA Insured) Aaa 4,000,000 3,770,000
(Children's Hosp.) 6% 6/1/13
(MBIA Insured) Aaa 1,570,000 1,554,300
(Odd Fellows):
5.375% 10/1/13 A+ 2,500,000 2,184,375
5.50% 10/1/23 A+ 3,000,000 2,538,750
(Sister of Charity Leavenworth Sys.):
5% 12/1/14 Aa 1,315,000 1,098,025
5% 12/1/23 Aa 8,875,000 7,033,438
(St. Joseph Health Sys.) 5.50% 7/1/23 Aa 3,000,000 2,621,250
California Urban Dev. Agcy. Rev.
(Civic Recreational Proj.#1):
Rfdg. 7.375% 5/1/12 - 8,600,000 8,965,500
7.30% 5/1/06 - 4,000,000 4,160,000
7.375% 5/1/15 (Unrefunded Balanced) - 1,140,000 1,188,450
Campbell Ctfs. of Prtn. Rfdg. (Civic Center Proj.)
6% 10/1/18 A 2,565,000 2,395,069
Carson Redev. Agcy. Redev. Proj. Area #1
Tax Allocation Rfdg.:
6.375% 10/1/12 Baa1 1,465,000 1,391,750
6.375% 10/1/16 Baa1 1,000,000 935,000
Carson Redev. Agcy. Redev. Proj. Area #2
Tax Allocation Rfdg. 5.875% 10/1/09 Baa 2,000,000 1,855,000
Castaic Lake Wtr. Agcy. Ctfs. of Prtn.
(Wtr. Sys. Impt. Proj.):
Rfdg. Series A, 7% 8/1/11
(MBIA Insured) Aaa 1,500,000 1,668,750
Rfdg. Series A, 7% 8/1/13 (MBIA Insured) Aaa 1,580,000 1,749,850
Central California Joint Pwrs. Health Fing. Auth.
Rfdg. (Commty. Hosp. of Central California
Proj.) 5% 2/1/23 A 7,920,000 6,058,800
Central California Joint Pwrs. Health Fing. Auth.
Ctfs. of Prtn. (Commty. Hosp. of Central
California Proj.) 5.25% 2/1/13 A 4,000,000 3,360,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Central Valley Fing. Auth. Cogeneration Proj. Rev.
(Carson Ice Generation Proj.):
6% 7/1/09 BBB- $ 3,050,000 $ 2,908,938
6.10% 7/1/13 BBB- 1,000,000 947,500
6.20% 7/1/20 BBB- 1,450,000 1,370,250
Clovis Unified School Dist. Series B,
0% 8/1/03 (MBIA Insured) Aaa 3,485,000 2,195,550
Coalinga Ctfs. of Prtn. 7% 4/1/10 BBB+ 1,655,000 1,659,138
Contra Costa County Ctfs. of Prtn.
(Merrithew Mem. Hosp.)
(Cap. Appreciation) 0% 11/1/14 A1 3,000,000 840,000
Desert Hosp. Rev. Ctfs. of Prtn.
Series 1992, 8.164% 7/28/20
(CGIC Insured) INFL (d) Aaa 4,000,000 4,135,000
Duarte Ctfs of Prtn. (City of Hope Nat'l.
Medical Ctr.) 6.25% 4/1/23 Baa1 2,000,000 1,775,000
East Bay Muni. Util. Dist. Wtr. Sys. Rev. Rfdg.
Sub. 5% 6/1/10 (MBIA Insured) Aaa 1,500,000 1,353,750
Eastern Muni. Wtr. Dist. Wtr. & Swr. Rev.
Ctfs. of Prtn. 6.75% 7/1/12
(FGIC Insured) Aaa 2,000,000 2,182,500
Escondido Joint Pwr. Fing. Auth. Rev.
(Cap. Appreciation) 0% 9/1/12
(AMBAC Insured) Aaa 2,160,000 742,500
Fairfield-Suisun Swr. Dist. Swr. Rev. Rfdg.
Series A:
0% 5/1/07 (MBIA Insured) Aaa 1,635,000 801,150
0% 5/1/08 (MBIA Insured) Aaa 2,085,000 951,281
0% 5/1/09 (MBIA Insured) Aaa 2,080,000 894,400
Folsom Pub. Fing. Auth. Local Agcy. Rev.
Series A, 7.25% 10/1/10 BBB+ 1,285,000 1,310,700
Fontana Redev. Agcy. Tax Allocation Rfdg.
(Yurupa Hills):
Series 1992 A, 7.10% 10/1/23 BBB 2,000,000 1,992,500
Series A, 7% 10/1/14 BBB+ 1,900,000 1,892,875
Inglewood Ctfs. of Prtn. (Civic Center Impt. Proj.)
7% 8/1/19 A 1,000,000 1,015,000
Irvine Ranch Wtr. Dist. Joint Pwr. Agcy. Local
Pool Rev.:
7.80% 2/15/08 A+ 1,560,000 1,624,350
7.875% 2/15/23 A+ 5,500,000 5,740,625
8.25% 8/15/23 A+ 16,365,000 17,387,813
King Ctfs. of Prtn. 7.50% 7/1/04 - 2,800,000 2,989,000
Los Angeles Ctfs. of Prtn. (Health Facs.
Construction Loan) (Bay Harbor Hosp.)
7.30% 4/1/20 A 1,000,000 1,037,500
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Los Angeles County Ctfs. of Prtn.:
(Correctional Facs.) (Cap. Appreciation)
0% 9/1/11 (MBIA Insured) Aaa $ 6,400,000 $ 2,360,000
(Disney Parking Proj.):
0% 9/1/11 A 6,270,000 2,084,775
0% 3/1/12 A 2,180,000 700,325
0% 3/1/13 A 2,750,000 828,438
0% 9/1/13 A 3,215,000 936,369
0% 9/1/15 A 3,815,000 963,288
0% 3/1/17 A 3,450,000 771,938
0% 9/1/18 A 8,775,000 1,765,969
0% 3/1/19 A 3,175,000 619,125
0% 9/1/20 A 5,425,000 942,594
(Disney Parking Proj.)(Cap. Appreciation):
0% 9/1/10 A 2,980,000 1,076,525
0% 3/1/20 A 1,000,000 180,000
Metropolitan Wtr. Dist. Southern Wtrwks. Rev.
5 3/4% 8/12/18 Aa 5,000,000 4,800,000
Modesto Ctfs. of Prtn.:
(Commty. Ctr. Refing. Proj.) Series A, 5.60%
11/1/14 (AMBAC Insured) Aaa 1,370,000 1,292,938
(Golf Course Refing. Proj.) Series B, 5%
11/1/23 (AMBAC Insured) Aaa 1,585,000 1,335,363
Modesto Irrigation Dist. Ctfs. of Prtn. Rfdg. &
Cap. Impts. Series A, 0% 10/1/10
(MBIA Insured) Aaa 2,270,000 890,975
Northern California Pwr. Agcy. Pub. Pwr. Rev.:
Rfdg. (Geothermal Proj. #3) Series A,
5.80% 7/1/09 A 4,800,000 4,554,000
7.50% 7/1/23 (AMBAC Insured)
(Pre-Refunded to 7/1/21 @ 100)(h) Aaa 1,170,000 1,382,063
Norwalk Redev. Agcy. Tax Allocation
(Norwalk Redev. Proj. #1) 7.15% 12/1/15 - 3,900,000 3,982,875
Ontario Redev. Fing. Auth. Rev.
(Ctr. City Cimarron Proj.#1):
0% 8/1/08 (MBIA Insured) Aaa 3,255,000 1,460,681
0% 8/1/09 (MBIA Insured) Aaa 3,260,000 1,381,425
Orange County Dev. Agcy. Tax Allocation
(Santa Ana Heights Proj.) 6.125% 9/1/23 Caa 3,500,000 2,695,000
Orange County Local Trans. Sales Auth. Tax Rev.
6% 2/15/08 (AMBAC Insured) Aaa 1,250,000 1,273,438
Palm Desert Fing. Auth. Tax Allocation
8.255% 4/1/22 (MBIA Insured) INFL (d) Aaa 2,750,000 2,877,188
Palm Springs Ctfs. of Prtn.
(Muni. Golf Course Expansion Proj.)
7.40% 11/1/18 BBB+ 1,500,000 1,533,750
Palomar Pomerado Health Sys. Rev.
0% 11/1/05 (MBIA Insured) Aaa 3,075,000 1,660,500
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Pasadena Ctfs. of Prtn. Rfdg. (Old Pasadena
Pkg. Facs. Proj.) 6.25% 1/1/18 A1 $ 3,605,000 $ 3,559,938
Pleasanton Joint Pwrs. Fing. Auth. Reassessment:
Series A:
6% 9/2/05 Baa 1,815,000 1,801,388
6.15% 9/2/12 Baa 5,265,000 5,067,563
5.80% 9/2/02 Baa 2,500,000 2,496,875
Port Oakland Port. Rev. Rfdg. Series F:
(Cap. Appreciation)
0% 11/1/08 (MBIA Insured) Aaa 3,500,000 1,548,750
0% 11/1/06 (MBIA Insured) Aaa 1,250,000 637,500
Poway Redev. Agcy. Tax Allocation
5.67% 12/15/14 (FGIC Insured) Aaa 9,365,000 8,990,400
Rancho Mirage Joint Pwrs. Fing. Auth. Ctfs. of Prtn.
(Eisenhower Mem. Hosp.) 7% 3/1/22 A 1,000,000 1,001,250
Richmond Joint Pwrs. Fing. Auth. Rev. Series B:
7% 5/15/07 A- 2,375,000 2,484,844
7.25% 5/15/13 A- 2,500,000 2,546,875
Riverside County Asset Lease Rev.
5.75% 6/1/01 A 1,250,000 1,231,250
Riverside County Asset Leasing Corp. Leasehold Rev.
(Riverside County Hosp. Proj.) Series A:
6.375% 6/1/09 (Detachable Call Option) A 3,000,000 2,962,500
6.50% 6/1/12 A 5,500,000 5,438,125
Riverside County Ctfs. of Prtn.
(Air Force Village West, Inc.) Series A:
Rfdg. 8.125% 6/15/20 - 5,500,000 5,582,500
8.125% 6/15/12 - 2,690,000 2,730,350
Riverside County Redev. Agcy. Tax Allocation
(Redev. Proj. #4) Series A:
7.50% 10/1/10 BBB 1,000,000 1,031,250
7.50% 10/1/26 BBB 2,500,000 2,578,125
Riverside Unified School Dist. Ctfs. of Prtn.
(Cap. Appreciation Land Acquisition Proj.)
Series B, 0% 9/1/26 (FSA Insured) (i) Aaa 1,835,000 1,506,994
Sacramento Fing. Auth. (Cap. Appreciation
Tax Allocation Proj.) Series B,
0% 11/1/13 (MBIA Insured) Aaa 500,000 158,750
Sacramento Muni. Util Dist. Elec. Rev.:
4.81% 11/15/08 (FGIC Insured) Aaa 7,000,000 5,923,750
8.311% 8/15/18 (FGIC Insured), INFL (d) Aaa 1,750,000 1,806,875
San Bernardino County Ctfs. of Prtn.:
(Cap. Facs. Proj.) Series B, 6.875% 8/1/24
(Escrowed to Maturity)(h) Baa1 2,500,000 2,759,375
(Med. Ctr. Fing. Proj.):
5.50% 8/1/17 (g) Baa1 6,500,000 5,419,375
5.50% 8/1/22 Baa1 4,500,000 3,673,125
San Diego County Wtr. Auth.Ctfs. of Prtn.
5.632% 4/25/07 (FGIC Insured) Aaa 2,500,000 2,496,875
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
San Francisco City & County Redev. Agcy.
7.75% 9/1/06 - $ 6,000,000 $ 6,195,000
San Francisco City & County Redev. Fing. Auth.
Tax Allocation Rfdg. (Cap. Appreciation)
(Redev. Proj.) Series B:
Rfdg. 0% 8/1/10 (MBIA Insured) Aaa 1,475,000 584,469
0% 8/1/12 (MBIA Insured) Aaa 1,475,000 508,875
San Joaquin County Ctfs. of Prtn.
(Gen. Hosp. Proj.) 6.25% 9/1/13 A 2,500,000 2,396,875
San Joaquin Hills Trans. Corridor Acgy.
Toll Road Rev. (Sr. Lien):
0% 1/1/04 - 2,350,000 1,498,125
0% 1/1/07 - 3,000,000 1,897,500
Santa Barbara Ctfs. of Prtn.
(American Baptist Hosp.)
7.40% 5/15/15 A 2,000,000 2,087,500
Santa Clara Ctfs. of Prtn. Rfdg. Series A,
4.75% 2/1/14 (MBIA Insured) Aaa 1,250,000 1,045,313
Santa Clara County Fin. Auth. Lease Rev.
(VMC Replacement Proj.) Series A,
7.75% 11/15/08 (AMBAC Insured) Aaa 1,175,000 1,398,250
Santa Margarita/Dana Point Auth. Rev.
Ctfs. of Prtn. (Impt. Dist.s. 1-2-2A & 8)
7.25% 8/1/08 (MBIA Insured) Aaa 1,780,000 2,029,200
Selma Redev. Agcy. Tax Allocation
(Selma Redev. Proj.) 8.10% 8/1/13 (f) - 825,000 850,781
Sequoia Hosp. Dist. Rev. Rfdg.:
5.375% 8/15/13 Baa1 4,000,000 3,320,000
5.375% 8/15/23 Baa1 8,275,000 6,516,563
South Orange County Pub. Fin. Auth. Spl. Tax
Rev.:
(Foothill Area C) 8% 8/15/09
(FGIC Insured) Aaa 3,650,000 4,393,688
(Sr. Lien) 7% 9/1/10 (MBIA Insured) Aaa 3,300,000 3,671,250
Southern California Pub. Pwr. Auth. Pwr. Proj. Rev.:
Rfdg. (Mead Phoenix Proj.) Series A,
4.875% 7/1/20 (AMBAC Insured) Aaa 2,190,000 1,809,488
Rfdg. (Palo Verde Proj.) Series A, 5% 7/1/15 Aa 1,125,000 956,250
(Multiple Proj.) 6.75% 7/1/11 A 2,500,000 2,653,125
(San Juan Unit 3) Series A,
5.375% 1/1/10 (MBIA Insured) Aaa 4,000,000 3,780,000
Southern California Pub. Pwr. Auth. Transmission
Proj. Rev. Rfdg. (Sub Crossover)
0% 7/1/13 Aa 1,500,000 476,250
Sulphur Springs Unified School Dist. Series A:
Unltd. Tax Series A,
0% 9/1/12 (MBIA Insured) Aaa 2,750,000 959,063
0% 9/1/08 (MBIA Insured) Aaa 2,745,000 1,235,250
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Upland Ctfs. Partn.
(San Antonio Commty. Hosp.):
5.25% 1/1/08 A $ 1,850,000 $ 1,644,188
5.25% 1/1/13 A 3,000,000 2,523,750
Upland Hsg. Auth. Rev. Issue A, 7.85%
7/1/20 - 990,000 1,030,838
Vallejo Ctfs. of Prtn. (Marine World Foundation
Proj.) 8.10% 2/1/21 - 7,780,000 8,071,750
Vista Unified School Dist. Ctfs. of Prtn.
0% 9/1/11 (MBIA Insured) Aaa 8,585,000 2,757,931
West Covina Ctfs. of Prtn. (Queen of the Valley
Hosp.) 6.50% 8/15/24 A 1,100,000 1,050,500
West & Central Basin Fing. Auth. Rev.
(West Basin Proj.) Series A:
Rfdg. 5% 8/1/10 (FGIC Insured) Aaa 1,155,000 1,038,041
5% 8/1/10 (AMBAC Insured) Aaa 1,750,000 1,572,813
365,157,531
U.S. VIRGIN ISLANDS - 0.4%
Virgin Islands Pub. Fin. Auth. Rev. Rfdg.
Series A, 7.25% 10/1/18
(Escrowed to Maturity)(h) - 1,500,000 1,546,875
GUAM - 0.3%
Guam Arpt. Auth. Rev. Series A,
6.60% 10/1/10 (b) BBB 1,000,000 1,001,250
TOTAL MUNICIPAL BONDS
(Cost $372,345,188) 367,705,656
MUNICIPAL NOTES (A) - 5.5%
CALIFORNIA - 5.5%
California Poll. Cont. Fin. Auth. Resource
Recovery Rev. (b):
(OMS Equity of Stanislaus) Series 1987:
4%, LOC Swiss Bank, VRDN VMIG 1 4,000,000 4,000,000
(Malaga Proj.) Series A, 3.95%, LOC Bank
of America Nat'l. Trust & Savings,
VRDN - 1,700,000 1,700,000
(Ultra Pwr. Rocklin Proj.):
Series 1988 A, 3.95%,
Bank of America, VRDN - 1,400,000 1,400,000
Series 1988 B, 3.95%, LOC Bank of
America Nat'l. Trust & Savings,
VRDN - 2,000,000 2,000,000
MUNICIPAL NOTES (A) - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Poll. Cont. Fin. Auth. Solid Waste Disp.
Rev. (Shell Oil Co.)(Martinez Proj.), VRDN (b):
Series 1994 A, 3.95% 10/1/24 VMIG 1 $ 4,800,000 $ 4,800,000
Series 1994 B, 3.95% 12/1/24 VMIG 1 2,300,000 2,300,000
Los Angeles County Metropolitan Trans. Auth.
Series 1993-A, 3.90% 7/1/20
(MBIA Insured), VRDN VMIG 1 2,600,000 2,600,000
Southern California Pub. Pwr. Auth. Rev.
(Transmission Proj.) Series 1991, 3.70%
(AMBAC Insured) LOC Swiss Bank,
VRDN VMIG 1 2,500,000 2,500,000
TOTAL MUNICIPAL NOTES
(Cost $21,300,000) 21,300,000
OTHER SECURITIES - 0.0%
RIGHTS
Riverside County Asset Leasing Corp. Leasehold
Rev. (Riverside County Hosp.) Series A
(Call Rights) 6.50% 6/1/12
(Cost $59,950) - 1,100 122,375
TOTAL INVESTMENTS - 100%
(Cost $393,705,138) $ 389,128,031
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SOLD
150 Municipal Bond Contacts March, 95 $ 13,603,125 $ (794,986)
THE FACE VALUE OF FUTURES SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 3.5%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(d) Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate. The price will be more
volatile than the price of a comparable fixed rate security.
(e) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(f) A portion of the Security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $1,705,000.
(g) A portion of the Security pledged to cover margin for delayed delivery
purchases. At the period end, the value of securities pledged amounted to
$5,002,500.
(h) Security collateralized by an amount sufficient to pay interest and
principal.
(i) Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 51.0% AAA, AA, A 66.8%
Baa 10.5% BBB 7.1%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.7% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 12.3%. FMR
has determined that unrated debt securities that are lower quality account
for 4.3% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Health Care 19.8%
Lease Revenue 19.7
Special Tax 19.7
Others
(individually less than 10%) 40.8
TOTAL 100.0%
INCOME TAX INFORMATION
At February 28, 1995, the aggregate cost of investment securities for
income tax purposes was $393,705,138. Net unrealized depreciation
aggregated $4,577,107, of which $9,039,025 related to appreciated
investment securities and $13,616,132 related to depreciated investment
securities.
At February 28, 1995, the fund had a capital loss carryforward of
approximately $2,477,438 which will expire on February 28, 2003.
The fund intends to elect to defer to its fiscal year ending February 28,
1996, $8,177,757 of losses recognized during the period November 1, 1994 to
February 28, 1995.
At February 28, 1995, the fund was required to defer $876,175 of losses on
futures contracts and options.
SPARTAN CALIFORNIA MUNICIPAL HIGH YIELD PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 28, 1995
1.ASSETS 2. 3.
4.Investment in securities, at value (cost $393,705,138) 5. $ 389,128,031
- - See accompanying schedule
6.Cash 7. 482,635
8.Receivable for investments sold 9. 25,997,933
10.Interest receivable 11. 4,454,989
12. 13.TOTAL ASSETS 14. 420,063,588
15.LIABILITIES 16. 17.
18.Payable for investments purchased $ 19,153,057 19.
Regular delivery
20. Delayed delivery 4,620,000 21.
22.Dividends payable 307,438 23.
24.Accrued management fee 163,246 25.
26.Payable for daily variation on futures contracts 59,601 27.
28. 29.TOTAL LIABILITIES 30. 24,303,342
31.32.NET ASSETS 33. $ 395,760,246
34.Net Assets consist of: 35. 36.
37.Paid in capital 38. $ 412,049,073
39.Accumulated undistributed net realized gain (loss) on 40. (10,916,734)
investments
41.Net unrealized appreciation (depreciation) on 42. (5,372,093)
investments
43.44.NET ASSETS, for 39,496,529 shares outstanding 45. $ 395,760,246
46.47.NET ASSET VALUE, offering price and redemption 48. $10.02
price per share ($395,760,246 (divided by) 39,496,529 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED FEBRUARY 28, 1995
49.50.INTEREST INCOME 51. $ 29,168,396
52.EXPENSES 53. 54.
55.Management fee $ 2,432,384 56.
57.Non-interested trustees' compensation 2,599 58.
59. 60.TOTAL EXPENSES 61. 2,434,983
62.63.NET INTEREST INCOME 64. 26,733,413
65.REALIZED AND UNREALIZED GAIN (LOSS) 67. 68.
66.Net realized gain (loss) on:
69. Investment securities (7,060,661) 70.
71. Futures contracts (775,068) (7,835,729)
72.Change in net unrealized appreciation (depreciation) 73. 74.
on:
75. Investment securities (30,838,075) 76.
77. Futures contracts (799,707) (31,637,782)
78.79.NET GAIN (LOSS) 80. (39,473,511)
81.82.NET INCREASE (DECREASE) IN NET ASSETS 83. $ (12,740,098)
RESULTING FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED FEBRUARY 28,
1995 1994
84.INCREASE (DECREASE) IN NET ASSETS
85.Operations $ 26,733,413 $ 33,387,891
Net interest income
86. Net realized gain (loss) (7,835,729) 26,605,540
87. Change in net unrealized appreciation (depreciation) (31,637,782) (26,737,594)
88. 89.NET INCREASE (DECREASE) IN NET ASSETS (12,740,098) 33,255,837
RESULTING FROM OPERATIONS
90.Distributions to shareholders: (26,733,413) (33,387,891)
From net interest income
91. From net realized gain (8,512,355) (17,385,450)
92. In excess of net realized gain - (3,001,030)
93. 94.TOTAL DISTRIBUTIONS (35,245,768) (53,774,371)
95.Share transactions 80,085,080 153,539,687
Net proceeds from sales of shares
96. Reinvestment of distributions 28,631,425 46,508,005
97. Cost of shares redeemed (231,670,779) (186,891,146)
98. Redemption fees 87,648 103,560
99. Net increase (decrease) in net assets resulting (122,866,626) 13,260,106
from
share transactions
100. (170,852,492) (7,258,428)
101.TOTAL INCREASE (DECREASE) IN NET ASSETS
102.NET ASSETS 103. 104.
105. Beginning of period 566,612,738 573,871,166
106. End of period $ 395,760,246 $ 566,612,738
107.OTHER INFORMATION 109. 110.
108.Shares
111. Sold 8,049,380 13,616,855
112. Issued in reinvestment of distributions 2,869,048 4,155,944
113. Redeemed (23,261,421) (16,596,175)
114. Net increase (decrease) (12,342,993) 1,176,624
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED FEBRUARY 28, TEN MONTHS YEARS ENDED APRIL 30,
ENDED
FEBRUARY 28,
1995 1994 1993 1992 1991
115.SELECTED PER-SHARE DATA
116.Net asset value, $ 10.930 $ 11.330 $ 10.540 $ 10.240 $ 9.760
beginning of period
117.Income from .603 .631 .543 .663 .706
Investment Operations
Net interest income
118. Net realized and (.732) (.012) .858 .297 .472
unrealized gain (loss)
119. Total from (.129) .619 1.401 .960 1.178
investment operations
120.Less Distributions (.603) (.631) (.543) (.663) (.706)
From net interest
income
121. From net realized (.180) (.330) (.070) - -
gain on investments
122. In excess of net - (.060) - - -
realized gain on
investments
123. Total distributions (.783) (1.021) (.613) (.663) (.706)
124.Redemption fees .002 .002 .002 .003 .008
added
to paid in capital
125.Net asset value, $ 10.020 $ 10.930 $ 11.330 $ 10.540 $ 10.240
end of period
126.TOTAL RETURN B -.85 5.63 13.76% 9.66 12.52
% % % %
127.RATIOS AND SUPPLEMENTAL DATA
128.Net assets, end of $ 395,760 $ 566,613 $ 573,871 $ 479,137 $ 281,725
period (000 omitted)
129.Ratio of expenses .55 .52 .40% .36 .19
to average net assets % % A % %
130.Ratio of expenses .55 .55 .55% .55 .55
to average net assets % % A % %
before expense
reductions
131.Ratio of net interest 6.04 5.58 6.07% 6.36 7.02
income to average % % A % %
net assets
132.Portfolio turnover 30 54 26% 13 15
rate % % A % %
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
SPARTAN CALIFORNIA INTERMEDIATE MUNICIPAL PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value), and the effect of the $5 account closeout fee.
You can also look at the fund's income to measure performance. If Fidelity
had not reimbursed certain fund expenses during the periods shown, the
total returns and dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 LIFE OF
YEAR FUND
Spartan California Intermediate Municipal 1.66% -0.07%
Lehman Brothers Municipal Bond Index 1.88% n/a
Average California Intermediate
Municipal Bond Fund 1.26% n/a
Consumer Price Index 2.86% 3.50%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a specific period - in this case, one year or since the fund started
on December 30, 1993. For example, if you invested $1,000 in a fund that
had a 5% return over the past year, the value of your investment would be
$1,050. You can compare the fund's returns to the performance of the Lehman
Brothers Municipal Bond Index - a broad gauge of the municipal bond market.
To measure how the fund's performance stacks up against its peers, you can
compare it to the average California intermediate municipal bond fund,
which reflects the performance of 22 California intermediate municipal bond
funds with similar objectives tracked by Lipper Analytical Services during
the period covered by this report. Both benchmarks include reinvested
dividends and capital gains, if any. Comparing the fund's performance to
the consumer price index (CPI) helps show how your fund did compared to
inflation. (The CPI returns begin on the month end closest to the fund's
start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 LIFE OF
YEAR FUND
Spartan California Intermediate Municipal 1.66% -0.06%
Lehman Brothers Municipal Bond Index 1.88% n/a
Average California Intermediate
Municipal Bond Fund 1.26% n/a
Consumer Price Index 2.86% 3.00%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Spartan California IMunicipal Bond Index
12/31/93 10000.00 10000.00
01/31/94 10114.45 10114.00
02/28/94 9828.19 9852.05
03/31/94 9522.27 9451.07
04/30/94 9579.72 9531.40
05/31/94 9659.48 9614.33
06/30/94 9607.31 9558.56
07/31/94 9783.78 9733.48
08/31/94 9816.77 9767.55
09/30/94 9713.92 9623.97
10/31/94 9559.65 9452.66
11/30/94 9394.30 9281.57
12/31/94 9532.70 9485.76
01/31/95 9774.18 9757.06
02/28/95 9992.52 10040.99
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
California Intermediate Municipal Portfolio on December 31, 1993, shortly
after the fund started. As the chart shows, by February 28, 1995, the value
of your investment would have been reduced to $9,993 - a -0.07% decrease
on your initial investment. This assumes you still own the fund on February
28, 1995 and therefore does not include the effect of the $5 account
closeout fee. For comparison, look at how the Lehman Brothers Municipal
Bond Index did over the same period. With dividends reinvested, the same
$10,000 would have grown to $10,041- a 0.41% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
DECEMBER 30, 1993
YEAR (COMMENCEMENT
ENDED OF OPERATIONS) TO
FEBRUARY 28, FEBRUARY 28,
1995 1994
Dividend returns 5.05% 0.69%
Capital appreciation
returns -3.39% -2.41%
Total returns 1.66% -1.72%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED FEBRUARY 28, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 3.69(cents) 24.17(cents) 47.67(cents)
Annualized dividend rate 5.13% 5.30% 5.10%
30-day annualized yield 5.23% - -
30-day annualized tax-equivalent yield 9.18% - -
</TABLE>
DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $9.36 over
the past month, $9.20 over the past six months, and $9.35 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 43.04% combined effective 1995 federal and state income tax bracket.
If the advisor had not reimbursed certain portfolio expenses during the
period shown, the yield and tax-equivalent yield would have been 4.78% and
8.39%, respectively.
SPARTAN CALIFORNIA INTERMEDIATE MUNICIPAL PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
A municipal bond market rally
beginning in mid-November
helped to counteract the negative
effects of several months of
sharply rising interest rates. For
the 12 months ended February
28, 1995, the Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
had a total return of 1.88%. By
comparison, the Lehman Brothers
Aggregate Bond Index - a proxy
of investment-grade taxable
bonds - returned 1.78%. Interest
rate increases had caused a
significant downturn in all U.S.
bond markets through the first
nine of the 12 months ended
February 28, 1995. From March
1994 through February 1995, the
Federal Reserve Board raised the
federal funds rate - the rate
banks charge each other for
overnight loans - six times,
increasing the rate by 2.75% to
6.00%. These actions sparked
inflation fears, leading to a sharp
sell-off in all bond markets. The
municipal market saw further
instability from September through
mid-November, as investors sold
bonds to realize losses for tax
purposes. From mid-November
through the end of February, the
municipal market rebounded as
there were indications that
Federal Reserve Board rate hikes
were having their intended effect
of slowing the economy and
reducing the risk of inflation. In
addition, the recent rally was
helped by an abatement of
tax-loss selling and a decrease in
the supply of new municipal
bonds.
NOTE TO SHAREHOLDERS:
On March 27, 1995, Jonathan Short
(left) became portfolio manager of Spartan California Intermediate
Portfolio. The following is an interview with David Murphy - who managed
the fund during the period covered by this report - with some comments from
Jon Short on his outlook and strategy:
Photo of
JOHN SHORT
Photo of
JOHN HALEY
Q. DAVID, HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
J.H. Much of the past 12 months proved to be a difficult time for municipal
bonds, but the fund did better than average during that period. For the
year ended February 28, 1995, the fund's total return was 1.66%. That
compares to the average California intermediate tax-free bond fund, which
returned 1.26% for the same period, according to Lipper Analytical
Services.
Q. ORANGE COUNTY DECLARED BANKRUPTCY DUE TO LOSSES IN ITS INVESTMENT POOL
IN DECEMBER. WHAT IMPACT DID THAT HAVE ON CALIFORNIA MUNICIPAL BOND PRICES?
J.H. When the news broke that Orange County had experienced substantial
losses, it had a negative impact on not only Orange County issues, but most
other California bonds as well. However, the prices of California bonds not
directly linked to Orange County bounced back in January and February.
Meanwhile, the prices of bonds issued by Orange County or by participants
in the investment pool were still under pressure at the end of the period.
Q. IS THE FUND INVESTED IN ANY ORANGE COUNTY BONDS?
J.H. Yes, about 2.1% of the fund's investments were in Orange County bonds
at the end of the period. When the news first broke about the size of the
losses in the pool and before the county declared bankruptcy, the fund
bought insurance for these bonds from a AAA-rated municipal bond insurance
company. This insurance guarantees timely payment of principal and interest
payments, but does not protect these bonds from price declines. However,
because we insured the bonds before the county declared bankruptcy, our
quick action helped limit price declines. The prices of these now-insured
bonds fell initially, but have retraced some of their earlier losses.
Additionally, San Bernardino County sustained losses - although they were
only a small fraction of those suffered by Orange County - in its own
investment pool. Bonds issued by San Bernardino - which made up 2.5.% of
investments as of February 28, 1995 - also suffered during the past several
months. However, the performance of these bonds wasn't the most significant
determinant of the fund's overall performance.
Q. WHAT FACTORS THEN ACCOUNTED FOR THE FUND'S PERFORMANCE?
J.H. First, in view of the high volatility in the municipal market over the
past 12 months, I kept the fund's duration neutral. Duration is a measure
of how sensitive its share price is to changes in interest rates. By
maintaining a neutral duration, the fund's share price movement was more or
less in line with other funds of its type. What helped the fund do better
than the average fund was its relatively high income. Health care and lease
revenue bonds, which totaled about 34% of the fund's total investments,
helped the fund generate a high level of income.
Q. HOW HAVE YOU ALLOCATED THE FUND'S INVESTMENTS AMONG VARIOUS SECTORS?
J.H. I've tried to diversify across a number of sectors. Water, sewer and
gas utility bonds were the fund's largest sector concentration at 19.7.% of
investments. Lease revenue bonds, which are mostly state-issued, stood at
16.2%. Both types of bonds are generally high-quality bonds from issuers
with a fairly stable and predictable revenue stream. Health care bonds,
which are attractive partially because of their relatively high yields,
stood at 17.3% at the end of the period.
Q. JONATHAN, HOW DO YOU THINK 1995 SHAPES UP FOR CALIFORNIA MUNICIPAL
BONDS?
J.S. I have some concerns about the state's economy and fiscal situation.
Even though the economy has turned more positive and should continue on a
moderate upward track, growth probably won't be robust. Additionally, the
state may have some problems balancing the budget. But there are reasons to
be optimistic. The supply of California municipal bonds is expected to stay
low. Low supply and constant demand could be a positive factor.
FUND FACTS
GOAL: to provide high current
income exempt from
California state and federal
income taxes by investing
primarily in investment-grade
intermediate California
municipal securities
START DATE: December 30,
1993
SIZE: as of February 28,
1995, more than $45 million
MANAGER: David Murphy,
1993 - March 1995. Jonathan
Short, starting March 27,
1995; also manager, Fidelity
California Tax-Free High
Yield, Fidelity California
Tax-Free
Insured and Spartan
California High Yield
Municipal Portfolios, since
March 1995; joined
Fidelity in 1992
(checkmark)
JONATHAN SHORT ON HIS
INVESTMENT STRATEGY:
"There are two market
conditions that will affect my
strategy going forward. At the
end of February, the yield
curve was relatively flat. By
that I mean there wasn't much
difference in yields between
bonds of various maturities.
So there wasn't much
incentive for taking on the
added rate risk of longer-term
bonds. In my view,
intermediate bonds now offer
attractive opportunities.
"Also, credit spreads were
very narrow, meaning there
wasn't much difference in
yields between bonds of
various credit ratings.
Lower-quality bonds currently
don't offer enough in added
yield to warrant making too
large of an investment in
them. As a result, I'll most
likely sell some lower-quality
bonds and buy higher-quality
bonds in their place."
SPARTAN CALIFORNIA INTERMEDIATE MUNICIPAL PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF FEBRUARY 28, 1995
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO
Water & Sewer 19.7 28.1
Health Care 17.3 20.0
Lease Revenue 16.2 13.8
Special Tax 12.1 10.9
Transportation 9.2 5.4
AVERAGE YEARS TO MATURITY AS OF FEBRUARY 28, 1995
6 MONTHS AGO
Years 8.0 9.3
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF FEBRUARY 28, 1995
6 MONTHS AGO
Years 5.7 6.9
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 THE ABOVE EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF FEBRUARY 28, 1995 AS OF AUGUST 31, 1994
Aaa 38.5%
Aa, A 34.3%
Baa 8.1%
Ba, B 0.0%
Non-rated 0.0%
Short-term
investments 19.1%
Aaa 39.1%
Aa, A 44.5%
Baa 8.0%
Ba, B 0.0%
Non-rated 0.0%
Short-term
investments 8.4%
Row: 1, Col: 1, Value: 38.5
Row: 1, Col: 2, Value: 34.3
Row: 1, Col: 3, Value: 8.1
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 19.1
Row: 1, Col: 1, Value: 39.1
Row: 1, Col: 2, Value: 44.5
Row: 1, Col: 3, Value: 8.0
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 8.4
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
SPARTAN CALIFORNIA INTERMEDIATE MUNICIPAL PORTFOLIO
INVESTMENTS FEBRUARY 28, 1995
Showing Percentage of Total Value of Investments
MUNICIPAL BONDS - 80.9%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - 80.7%
California Pub. Wks. Board Lease Rev.
(California University Proj.)
Series A, 6.10% 10/1/06 A $ 1,210,000 $ 1,222,100
California Statewide Commty. Dev. Corp.
Ctfs. of Prtn. Rfdg.
(Triad Healthcare):
5.25% 8/1/97 A 250,000 246,563
5.90% 8/1/01 A 200,000 196,250
6.25% 8/1/06 A 1,000,000 996,250
California Trans. Commission San Francisco Bay
Toll Bridge Rev. (Northern Bridge) Series A,
4.60% 12/1/05 Aa 1,160,000 1,039,650
Carson Redev. Agcy. Rfdg. (Redev. Proj. Area 2)
(Tax Allocation) 5.50% 10/1/02 Baa 100,000 96,000
Castaic Lake Wtr. Agcy. Ctfs. of Prtn.
(Wtr. Sys. Impt. Proj.) Series A,
7.25% 8/1/07 (MBIA Insured) Aaa 1,755,000 2,002,894
Chino Basin Fing. Auth. Rev. Rfdg.
(Muni. Wtr. Dist. Swr. Sys. Proj.):
7% 8/1/05 (AMBAC Insured) Aaa 1,185,000 1,330,163
7% 8/1/06 (AMBAC Insured) Aaa 1,145,000 1,283,831
Clovis Unified School Dist. (Cap. Appreciation)
Series B, 0% 8/1/02 (MBIA Insured) Aaa 300,000 201,000
East Bay Muni. Util. Dist. 5.30% 4/1/07 Aa 1,000,000 956,250
Inglewood Hosp. Rev. (Daniel Freeman
Hosp. Inc.) 6.50% 5/1/01 A 1,000,000 1,031,250
La Quinta Redev. Agcy. Tax Allocation Rfdg.
(Redev. Proj. Area #1):
7.30% 9/1/06 (MBIA Insured) Aaa 620,000 713,000
7.30% 9/1/11 (MBIA Insured) Aaa 555,000 634,781
Los Angeles Convention & Exhibition Ctr. Auth.
Ctfs. of Prtn. Rfdg.
Series A, 7.375% 8/15/18
(Pre-Refunded to 8/15/99 @ 101.50)(e) Aaa 2,020,000 2,237,150
Los Angeles County. Ctfs. of Prtn.
6.85% 11/1/01 INFL (d) A 200,000 200,750
Los Angeles County Metropolitan Trans. Auth.
5.30% 7/1/05 (MBIA Insured) Aaa 2,000,000 1,968,640
Los Angeles Dept. of Wtr. & Pwr. Elec. Rev.
9% 10/15/01 Aa 110,000 132,413
Metropolitan Wtr. Dist. Southern California
Wtrwks. Gen. Oblig. Series A-1,
5.50% 3/1/11 Aaa 1,500,000 1,415,625
Orange County Wtr. Dist. Ctfs. of Prtn.,
Series A, 5.50% 8/15/09
(AMBAC Insured) Aaa 1,000,000 943,750
Port Oakland Port. Rev. Rfdg.
Series F, 0% 11/1/05 (MBIA Insured) Aaa 300,000 163,875
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Redlands Ctfs. of Prtn. Rfdg. (Wtr. Treatment
Facs. Proj.) 4.50% 9/1/15 (FGIC Insured) Aaa $ 930,000 $ 917,213
Riverside County Asset Leasing Corp. Leasehold
Rev. (Riverside County Hosp. Proj.)
Series A, 6% 6/1/03 A 2,000,000 2,007,500
Rosemead Redev. Agcy. (Subordinated Lien Tax
Allocation Proj. Area 1) 0% 10/1/98
(Escrowed to Maturity)(e) A- 1,120,000 935,200
San Bernardino County Ctfs. of Prtn.
(Med. Ctr. Fing.) 5.25% 8/1/05 Baa1 1,235,000 1,114,588
San Diego-Metropolitan Transit Dist. Auth.
Lease Rev. Rfdg. 5.625% 9/1/09 Aa 1,500,000 1,430,625
San Francisco Bldg. Auth. Lease Rev. Dept.
Gen'l Svcs. Lease Series A, 5% 10/1/05 A1 400,000 366,000
San Francisco Port. Commission Rev. Rfdg.
5.50% 7/1/04 A 1,000,000 988,750
Santa Barbara Ctfs. of Prtn. Rfdg.
5.10% 3/1/03 A1 1,000,000 951,250
Santa Margarita/Dana Point Auth. Rev.
(Impt. Dist.s 1-2-2a & 8) Series A,
7.25% 8/1/06 (MBIA Insured) Aaa 1,500,000 1,715,625
Sequoia Hosp. Dist. Rev.:
Rfdg. 5% 8/15/03 Baa1 1,285,000 1,188,625
4.90% 8/15/02 Baa1 1,225,000 1,140,781
Southern California Pub. Pwr. Auth. Pwr. Proj. Rev.:
(San Juan Unit 3) Series A, 5.375% 1/1/09
(MBIA Insured) Aaa 1,000,000 951,250
Series 11, 0% 7/1/15,
(Pre-Prefunded to 7/1/00 @ 101)(e) Aaa 300,000 230,625
Univ. of California Rev. Rfdg.:
(Multiple Purp. Projs.) Series C, 9% 9/1/02
(AMBAC Insured) Aaa 100,000 120,875
(UCLA Med. Ctr.) 8.00% 12/1/95
(MBIA Insured) Aaa 200,000 205,000
Walnut Creek Ctfs. of Prtn. Rfdg. (John Muir
Med. Ctr.) 4.95% 2/15/05 (MBIA Insured) Aaa 300,000 277,875
West Covina Ctfs. of Prtn. (Queen of the Valley Hosp.):
5.90% 8/15/02 A 875,000 867,344
6.00% 8/15/03 A 925,000 916,906
6.125% 8/15/04 A 980,000 968,973
36,307,190
PUERTO RICO - 0.2%
Puerto Rico Commonwealth Impt. Rfdg.
5.375% 7/1/06 Baa1 100,000 94,625
TOTAL MUNICIPAL BONDS
(Cost $36,649,299) 36,401,815
MUNICIPAL NOTES (A) - 19.1%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - 19.1%
California Poll. Cont. Fin. Auth. Resource
Recovery Rev.:
(Malaga Proj.) Series A, 3.95%,
LOC Bank of America Nat'l. Trust &
Savings, VRDN (b) - $ 1,900,000 $ 1,900,000
(Ultra Pwr. Rocklin Proj.) Series 1988 B,
3.95%, LOC Bank of America Nat'l.
Trust & Savings, VRDN (b) - 1,200,000 1,200,000
California Poll. Cont. Fin. Auth. Solid Waste
Disp. Rev. (Shell Oil Co.) (Martinez Proj.)
Series 1994A, 3.95% 10/1/24,
VRDN (b) VMIG 1 1,700,000 1,700,000
Los Angeles County Trans. Commission
Sales Tax Rev. Rfdg. Series 1992 A,
3.70% (FGIC Insured), VRDN VMIG 1 2,100,000 2,100,000
Southern California Pub. Pwr. Auth. Rev.
(Transmission Proj.) Series 1991, 3.70%
(AMBAC Insured) LOC Swiss Bank,
VRDN VMIG 1 1,700,000 1,700,000
TOTAL MUNICIPAL BONDS
(Cost $8,600,000) 8,600,000
TOTAL INVESTMENTS - 100%
(Cost $45,249,299) $ 45,001,815
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(d) Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate. The price will be more
volatile than the price of a comparable fixed rate security.
(e) Security collateralized by an amount sufficient to pay interest and
principal.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 65.3% AAA, AA, A 76.0%
Baa 8.1% BBB 4.9%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.0%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Water & Sewer 19.7%
Health Care 17.3
Lease Revenue 16.2
Special Tax 12.1
Others
(individually less than 10%) 34.7
TOTAL 100.0%
INCOME TAX INFORMATION
At February 28, 1995, the aggregate cost of investment securities for
income tax purposes was $45,249,299. Net unrealized depreciation aggregated
$247,484, of which $318,241 related to appreciated investment securities
and $565,725 related to depreciated investment securities.
At February 28, 1995, the fund had a capital loss carryforward of
approximately $586,607 which will expire on February 28, 2003.
The fund intends to elect to defer to its fiscal year ending February 28,
1996, $470,388 of losses recognized during the period November 1, 1994 to
February 28, 1995.
SPARTAN CALIFORNIA INTERMEDIATE MUNICIPAL PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 28, 1995
133.ASSETS 134. 135.
136.Investment in securities, at value (cost 137. $ 45,001,815
$45,249,299) - See accompanying schedule
138.Cash 139. 716,162
140.Receivable for investments sold 141. 1,616,086
142.Interest receivable 143. 471,902
144.Receivable from investment adviser for expense 145. 14,982
reductions
146. 147.TOTAL ASSETS 148. 47,820,947
149.LIABILITIES 150. 151.
152.Payable for investments purchased $ 1,987,779 153.
154.Dividends payable 38,716 155.
156.Accrued management fee 18,311 157.
158.Other payables and accrued expenses 4,995 159.
160. 161.TOTAL LIABILITIES 162. 2,049,801
163.164.NET ASSETS 165. $ 45,771,146
166.Net Assets consist of: 167. 168.
169.Paid in capital 170. $ 47,075,625
171.Accumulated undistributed net realized gain (loss) 172. (1,056,995)
on investments
173.Net unrealized appreciation (depreciation) on 174. (247,484)
investments
175.176.NET ASSETS, for 4,853,102 shares outstanding 177. $ 45,771,146
178.179.NET ASSET VALUE, offering price and 180. $9.43
redemption price per share ($45,771,146 (divided by) 4,853,102
shares)
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED FEBRUARY 28, 1995
181.182.INTEREST INCOME 183. $ 1,858,631
184.EXPENSES 185. 186.
187.Management fee $ 196,443 188.
189.Non-interested trustees' compensation 49 190.
191. Total expenses before reductions 196,492 192.
193. Expense reductions (180,062) 16,430
194.195.NET INTEREST INCOME 196. 1,842,201
197.REALIZED AND UNREALIZED GAIN (LOSS) 199. 200.
198.Net realized gain (loss) on:
201. Investment securities (958,932) 202.
203. Futures contracts (98,063) (1,056,995)
204.Change in net unrealized appreciation 205. 152,087
(depreciation) on investment securities
206.207.NET GAIN (LOSS) 208. (904,908)
209.210.NET INCREASE (DECREASE) IN NET ASSETS 211. $ 937,293
RESULTING FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR DECEMBER 30, 199
ENDED 3
FEBRUARY 28, (COMMENCEMENT
OF OPERATIONS) TO
FEBRUARY 28,
1995 1994
212.INCREASE (DECREASE) IN NET ASSETS
213.Operations $ 1,842,201 $ 60,323
Net interest income
214. Net realized gain (loss) (1,056,995) -
215. Change in net unrealized appreciation 152,087 (399,571)
(depreciation)
216. 937,293 (339,248)
217.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
218.Dividends to shareholders from net interest income (1,842,201) (60,323)
219.Share transactions 53,135,545 27,634,217
Net proceeds from sales of shares
220. Reinvestment of dividends from net interest 1,537,975 49,121
income
221. Cost of shares redeemed (30,710,334) (4,570,899)
222. 23,963,186 23,112,439
Net increase (decrease) in net assets resulting from
share transactions
223. 23,058,278 22,712,868
224.TOTAL INCREASE (DECREASE) IN NET ASSETS
225.NET ASSETS 226. 227.
228. Beginning of period 22,712,868 -
229. End of period $ 45,771,146 $ 22,712,868
230.OTHER INFORMATION 232. 233.
231.Shares
234. Sold 5,689,086 2,780,541
235. Issued in reinvestment of distributions 164,937 5,010
236. Redeemed (3,327,012) (459,460)
237. Net increase (decrease) 2,527,011 2,326,091
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
YEAR DECEMBER 30, 199
ENDED 3
FEBRUARY 28, (COMMENCEMENT
OF OPERATIONS) TO
FEBRUARY 28,
1995 1994
238.SELECTED PER-SHARE DATA
239.Net asset value, beginning of period $ 9.760 $ 10.000
240.Income from Investment Operations .477 .070
Net interest income
241. Net realized and unrealized gain (loss) (.330) (.240)
242. Total from investment operations .147 (.170)
243.Less Distributions (.477) (.070)
From net interest income
244.Net asset value, end of period $ 9.430 $ 9.760
245.TOTAL RETURN B 1.67% -1.71%
246.RATIOS AND SUPPLEMENTAL DATA
247.Net assets, end of period (000 omitted) $ 45,771 $ 22,713
248.Ratio of expenses to average net assets .05% -
249.Ratio of expenses to average net assets before .55% .55%
expense reductions A
250.Ratio of net interest income to average net assets 5.16% 4.66%
A
251.Portfolio turnover rate 55% -
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. SEE
NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of the fund's $5 account closeout fee. Yield measures the income
paid by a fund. Since a money market fund tries to maintain a $1 share
price, yield is an important measure of performance. If Fidelity had not
reimbursed certain fund expenses during the periods shown, the total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan California Municipal Money Market 3.00% 19.74% 21.58%
Average California Tax-Free
Money Market Fund 2.58% 16.93% 19.74%
Consumer Price Index 2.86% 17.89% 19.86%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a specific period - in this case, one year, five years or since the
fund started on November 27, 1989. For example, if you invested $1,000 in a
fund that had a 5% return over the past year, the value of your investment
would be $1,050. To measure how the fund's performance stacked up against
its peers, you can compare it to the average California tax-free money
market fund, which reflects the performance of 43 California tax-free money
market funds with similar objectives tracked by IBC/Donoghue during the
period covered by this report. Comparing the fund's performance to the
consumer price index (CPI) helps show how your investment did compared to
inflation. (The periods covered by CPI and IBC Donoghue are the closest
available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan California Municipal Money Market 3.00% 3.67% 3.79%
Average California Tax-Free
Money Market Fund 2.58% 3.18% 3.49%
Consumer Price Index 2.86% 3.35% 3.51%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
2/28/94 5/30/94 8/29/94 11/28/94 2/27/95
Spartan California 2.44% 2.72% 2.91% 3.46% 3.90%
Municipal Money Market
If Fidelity had not reimburs 2.14% 2.47% 2.71% 3.26% 3.70%
ed
certain fund expenses
Average California Tax-Free 1.96% 2.31% 2.56% 3.07% 3.45%
Money Market Fund
Spartan California 4.28% 4.78% 5.11% 6.07% 6.85%
Municipal Money Market -
Tax-equivalent
If Fidelity had not reimburs 3.76% 4.34% 4.76% 5.72% 6.50%
ed
certain fund expenses
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. If the
advisor had not reimbursed certain fund expenses during the periods shown,
the yields would have been lower. You can compare these yields to the
average California tax-free money market fund. Or you can look at the
fund's tax-equivalent yield, which is based on a combined effective 1995
federal and state income tax rate of 43.04%. A portion of the funds income
may be subject to the alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Deborah Watson, Portfolio Manager of Spartan California
Municipal Money Market Portfolio
Q. DEB, WHAT KIND OF RATE ENVIRONMENT HAVE YOU BEEN OPERATING IN DURING THE
PAST SIX MONTHS?
J.H. Short-term rates have continued to rise but the pattern has changed.
When we began the period at the end of August, the federal funds rate - the
rate banks charge each other for overnight loans - was 4.75%. That was
after the Federal Reserve Board had raised the rate five times within a
period of seven months. But the next increase - three quarters of a
percentage point - didn't occur until November, and after that we waited
another three months for the last increase of one-half of a point in early
February. We ended the period with the federal funds rate at 6.00%, up
three full points since February 1994.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
J.H. Generally speaking, in a rising-rate environment I try to keep the
fund's average maturity at the short end of the curve. That's so the fund's
yield can keep pace with rising yields in the market. For most of the
period, that strategy has translated into an average maturity of around 35
days. In the weeks before the latest rate increase by the Fed, I lowered
the fund's average maturity even more, to less than 30 days.
Q. HOW DID THE FUND PERFORM?
J.H. On February 28, 1995, the fund's seven-day yield was 3.90%, compared
to 2.96% on August 31, 1994, six months ago. The increase reflects the way
short-term interest rates have risen since last summer. The fund's latest
yield is the equivalent of a 6.85% taxable yield for California investors
in the 43.04% combined state and federal tax bracket. The total return for
the year ended February 28, 1995 was 3.00%. That beat the average
California tax-free money market fund, which had a total return of 2.58%
during the same period, according to IBC/Donoghue.
Q. DID THE FUND SUFFER ANY LOSSES ASSOCIATED WITH THE BANKRUPTCY FILING BY
ORANGE COUNTY LATE LAST YEAR?
J.H. No. The fund had no direct exposure to Orange County or to any of the
municipalities that had investments in the Orange County investment pool.
The fund did experience unusually heavy redemptions by shareholders during
the early weeks of December. But then the flow of assets reversed
direction, and by January the fund's total assets were even greater than
before. The most important fact to note is that the fund's net asset value
was never threatened, remaining stable at $1 per share during the time.
Q. WHAT'S THE OUTLOOK?
J.H. The big question is whether the economy is in fact slowing down. If
so, that could mean that interest rates have peaked, in which case I might
want to extend the fund's average maturity. My own view is that it's too
early to make a firm projection either way. That's why I've settled on a
neutral average maturity for the time being, instead of going aggressively
long or short. Meanwhile, I'll strive to apply even greater scrutiny in my
choice of investments.
FUND FACTS
GOAL: to provide high current
tax-free income for California
residents with share price
stability
START DATE: November 27,
1989
SIZE: as of February 28,
1995, more than $1 billion
MANAGER: Deborah Watson,
since November 1989;
manager, Fidelity California
Tax-Free Money Market
Portfolio, since 1988; Spartan
Florida Municipal Money
Market Portfolio, since August
1992; Spartan Pennsylvania
Municipal Money Market
Portfolio, since September
1989; joined Fidelity in 1982
(checkmark)
WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager
is expecting rates to fall.
When the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future
tax or other revenues and
payable from those specific
sources.
TENDER BOND: A variable-rate,
long-term security that gives
the bond holder the option to
redeem the bond at face
value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET PORTFOLIO
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
2/28/95 8/31/94 2/28/94
0 - 30 80 80 67
31 - 90 10 10 12
91 - 180 10 0 20
181 - 397 0 10 1
WEIGHTED AVERAGE MATURITY
2/28/95 8/31/94 2/28/94
Spartan California Municipal
Money Market 24 days 41 days 43 days
Average California Municipa
l 33 days 53 days 50 days
Money Market Fund*
ASSET ALLOCATION
AS OF FEBRUARY 28, 1995 AS OF AUGUST 31, 1994
Row: 1, Col: 1, Value: 68.0
Row: 1, Col: 2, Value: 14.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 14.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 69.0
Row: 1, Col: 2, Value: 14.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 15.0
Row: 1, Col: 5, Value: 0.0
Variable rate
demand notes
(VRDNs) 68%
Commercial
paper 14%
Tender bonds 2%
Municipal
notes 14%
Other 2%
Variable rate
demand notes
(VRDNs) 69%
Commercial
paper 14%
Tender bonds 2%
Municipal
notes 15%
Other 0%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET PORTFOLIO
INVESTMENTS FEBRUARY 28, 1995
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - 100.0%
Alameda Rev. (KQED Inc. Proj.) 5.05%,
LOC Long Term Credit Bank of Japan Ltd., VRDN $ 5,400,000 $ 5,400,000
Anaheim Hsg. Auth. Multi-Family Hsg. Rev., VRDN (b):
(Bel Age Apts. Proj.) 4% (FNMA Guaranteed) 2,700,000 2,700,000
(Parka Vista Apts. Proj.) 4.25%, LOC Citibank 8,500,000 8,500,000
(Sage Park Proj.) Series A, 4.25%,
LOC Bank of America 3,900,000 3,900,000
Azusa Multi-Family Hsg. Rev. (Pacific Glen Apt. Proj.)
Series 1994, 4.05%, VRDN 1,400,000 1,400,000
Beverly Hills Ctfs. of Prtn. (Civic Center Proj.)
8.80% 6/1/95 1,000,000 1,040,930
Big Bear Lake Ind. Dev. Board (Southwest Gas Corp. Proj.)
Series 1993 A, 3.85%, LOC Union Bank of Switzerland,
VRDN (b) 7,300,000 7,300,000
Butte County Board of Ed. BAN 5% 10/27/95 3,700,000 3,705,419
California Gen. Oblig. Adj. Rate RAN Series 1994-95 B:
4.14% 6/28/95 28,000,000 27,999,625
4.365% 6/28/95 25,000,000 25,000,253
California Gen. Oblig. Bonds:
Series CR-26I, 4.15%, tender 3/15/95
(Liquidity Facility Citibank) (AMBAC Insured) (c) (d) 7,925,000
7,925,000
Series 93-N, 4% tender 3/1/95
(AMBAC Insured) (Liquidity Facility Citibank) (c) (d) 14,000,000
14,000,000
9.75% 3/1/95 12,000,000 12,000,000
11% 5/1/95 3,000,000 3,031,529
5% 6/1/95 3,000,000 3,000,000
California Gen. Oblig. RAN Series A, 5% 6/28/95 14,550,000 14,590,378
California Health Facs. Fin. Auth. Rev. (Kaiser Permanente)
Series 1993 A, 3.90%, VRDN 3,000,000 3,000,000
California Hsg. Fin. Agcy. Participating VRDN (c):
Series PA-58, 4.20% (Liquidity Facility Merrill
Lynch & Co.) 2,910,000 2,910,000
Series PA-90, 4.25% (Liquidity Facility Merrill
Lynch & Co.) (b) 6,500,000 6,500,000
Series PT-14, 4.20%
(Liquidity Facility Dai-Ichi Kangyo Bank Ltd.) 5,780,000 5,780,000
Series PT-40B, 4.25%
(Liquidity Facility Dai-Ichi Kangyo Bank Ltd.) (b) 12,970,000
12,970,000
Series PT-40C, 4.20%
(Liquidity Facility Banque Nationale de Paris) 4,440,000 4,440,000
Series PT-40D, 4.25%
(Liquidity Facility Banque Nat'l. De Paris) (b) 13,340,000 13,340,000
Series PT-56, 4.25%
(Liquidity Facility Credit Suisse) 2,000,000 2,000,000
Series 1994-1, 4.29%
(Liquidity Facility State Street Bank) (b) 16,000,000 16,000,000
California Hsg. Fin. Agcy. Tender Option Bonds,
Series CR-156, 4.39% (Liquidity Facility Citibank)(b)(c) 7,500,000
7,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Poll. Cont. Fin. Auth. Solid Waste Disp. Rev., VRDN (b):
(Colmac Energy Proj.) Series B,
3.85%, LOC Swiss Bank $ 2,600,000 $ 2,600,000
(Taormina Industries, Inc. Proj.) Series 1994 B,
3.95%, LOC Sanwa Bank Ltd. 7,000,000 7,000,000
(Western Waste Industries Proj.) Series 1994 A,
4.15%, LOC Bank of California 6,500,000 6,500,000
California Poll. Cont. Resource Recovery Rev.
(Burney Forest Prod. Proj.) 3.75%,
LOC Nat'l. Westminster Bank, VRDN (b) 5,000,000 5,000,000
California School Cash Reserve Prog. Auth. TRAN
Series A, 4.50% 7/5/95 18,000,000 18,044,863
California Statewide Commty. Dev. Auth. Rev., VRDN (b):
(AHNNN Proj.) 4.45%, LOC Bank of Tokyo 440,000 440,000
(American River Packaging) 4.05%
LOC California Teachers Retirement Sys. 1,800,000 1,800,000
(American Zettler, Inc. Proj.) 4.45%,
LOC Bank of Tokyo 2,240,000 2,240,000
(Bro-Co Gen. Partnership Proj.) Series 1990, 4.45%,
LOC Bank of Tokyo 4,320,000 4,320,000
(Charles & Loralie Harris Proj.) Series 1989, 4.45%,
LOC Bank of Tokyo 975,000 975,000
(Florestone Prod. Co.) Series 1989, 4.45%,
LOC Bank of Tokyo 440,000 440,000
(Grundfos Pumps) Series 1989,
4.45%, LOC Bank of Tokyo 5,700,000 5,700,000
(K.U.M. LTD Proj.) Series 1992, 4.45%,
LOC Bank of Tokyo 2,000,000 2,000,000
(Lance Computer Manufacturer) 4.05%
LOC California Teachers Retirement Sys. 4,000,000 4,000,000
(Merrill Packaging Proj.) 4.10%
LOC Bank of Tokyo 2,005,000 2,005,000
(Northwest Pipe & Casing Co. Proj.) Series 1990, 4.45%,
LOC Bank of Tokyo 4,000,000 4,000,000
(Pasco Scientific Proj.) 4.05%
LOC California Teachers Retirement Sys. 3,300,000 3,300,000
(Propak Corp. Proj.) Series 1994 B, 4.05%
LOC California Teachers Retirement Sys. 2,700,000 2,700,000
(Rapelli of California Inc. Proj.) Series 1989, 4.30%,
LOC Bank of Tokyo 2,500,000 2,500,000
(Reliance Upholstery Supply Co., Proj.) Series 1990,
4.45%, LOC Bank of Tokyo 600,000 600,000
(Santa Cruz-Wilson Entities Ltd. Proj.) Series 1993, 4.10%,
LOC Bank of Tokyo, VRDN (b) 1,485,000 1,485,000
(Sunclipse, Inc.):
(Alahambra Proj.) Series 1989, 4.30%,
LOC California Teachers Retirement Sys. 2,600,000 2,600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Statewide Commty. Dev. Auth. Rev., VRDN (b) - continued
(Sunclipse, Inc.) - continued
(Union City Proj.) Series 1989, 4.30%,
LOC Bank of Tokyo $ 1,785,000 $ 1,785,000
(Zarn Inc. Proj.) Series 1989, 4.45%,
LOC Bank of Tokyo 1,680,000 1,680,000
(Zieman Manufacturing Co. Proj.) Series 1990, 4.45%,
LOC Bank of Tokyo 560,000 560,000
California Poll. Cont. & Fin. Auth. Rev. Bonds
(Pacific Gas & Elec. Co.):
Rfdg. Series 1988 B (b):
4.10%, tender 3/31/95, LOC Sumitomo Bank Ltd. 5,000,000 5,000,000
4.05% 3/31/95, LOC Sumitomo Bank Ltd. 1,000,000 1,000,000
4.10% tender 4/5/95, LOC Sumitomo Bank Ltd. 3,500,000 3,500,000
4.25%, tender 4/27/95, LOC Sumitomo Bank Ltd. 3,000,000 3,000,000
Series 1988 A (b):
3.90% tender 3/7/95, LOC Swiss Bank Corp. 3,000,000 3,000,000
3.70% tender 3/8/95, LOC Swiss Bank Corp. 3,000,000 3,000,000
3.90% tender 3/17/95, LOC Swiss Bank Corp. 4,000,000 4,000,000
3.85% tender 3/24/95, LOC Swiss Bank Corp. 2,000,000 2,000,000
4.10% tender 4/7/95, LOC Swiss Bank Corp. 2,500,000 2,500,000
4.10% tender 4/11/95, LOC Swiss Bank Corp. 4,000,000 4,000,000
4.25% tender 5/16/95, LOC Swiss Bank Corp. 15,495,000 15,495,000
4.25% tender 5/18/95, LOC Swiss Bank Corp. 8,775,000 8,775,000
Series 1988 C, 4% tender 4/7/95, LOC Credit Suisse 4,000,000 4,000,000
Series 1988 D:
4.20% tender 5/15/95, LOC Bank of Tokyo 7,000,000 7,000,000
4.10% 4/7/95, LOC Bank of Tokyo 3,300,000 3,300,000
Series 1988 E,4% tender 4/6/95,
LOC Morgan Guaranty Trust 5,000,000 5,000,000
Camarillo Hsg. Auth. Rev. (Heritage Park Apts.)
Series 1989 A, 4%, VRDN (b) 1,000,000 1,000,000
Carlsbad Multi-Family Hsg. Rev., VRDN:
(La Costa Apt. Proj.) Series 1993 A, 3.90%,
LOC Bank of America 4,000,000 4,000,000
(Seascape Village Proj.) Series A, 4.25% 3,600,000 3,600,000
Chula Vista Ind. Dev. Rev. Bonds
(San Diego Gas & Elec. Co.) (b):
Series C, 3.95% tender 3/7/95 5,000,000 5,000,000
Series E, 4.10%, tender 3/6/95 2,500,000 2,500,000
Concord Multi-Family Hsg. Rev.
(Hill Apt. Proj.) 4.10%, LOC Citibank, VRDN (b) 8,950,000 8,950,000
Contra Costa County Multi-Family Hsg. Rev. (Park Regency)
Series A, 4.05%, LOC Sumitomo Bank Ltd.,
VRDN (b) 13,900,000 13,900,000
Contra Costa Transit Auth. Tax Rev. Series 1993 A,
3.90% (FGIC Insured), VRDN 12,300,000 12,300,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Costa Mesa Redev. Agcy. Multi-Family Hsg. Rev.
(Costa Mesa Family Village Apts.) Series 1994 A, 4%,
LOC Bank of America, VRDN $ 3,500,000 $ 3,500,000
Duarte Single-Family Mtg. Rev. Participating VRDN,
Series A-1, 4.30% (Liquidity Facility Norwest Bank)(c) 5,355,000
5,355,000
Emeryville Redev. Agcy. Multi-Family Hsg. (Emerybay Apts. II)
4.35%, LOC Bank of America, VRDN (b) 8,000,000 8,000,000
Escondido Commty. Dev. Commission Rev.
(Escondido Promeneade Proj.)
4.30%,LOC Bank of America, VRDN (b) 1,000,000 1,000,000
Fairfield Ind. Dev. Auth. Ind. Dev. Rev.
(Medical Design Concepts Proj.) Series 1990 A,
4.35%, LOC Tokai Bank (b) 1,300,000 1,300,000
Fairfield Ind. Dev. Auth. Ind. Dev. Rev.
4.30%, LOC Wells Fargo Bank, VRDN (b) 1,800,000 1,800,000
Fontana Apt. Dev. Rev. Rfdg. (Citrus Ave. Apt. Proj.)
Series 1992 A, 3.90%, LOC Bank of America, VRDN 3,700,000 3,700,000
Fontana Unified School Dist. TRAN
4.50% 7/7/95 (MBIA Insured) 5,200,000 5,222,830
Freemont TRAN 4.25% 7/5/95 10,000,000 10,020,977
Fresno Hsg. Rev. (Palm Lakes Apt. Proj.) Series 1985,
5.50%, LOC Tokai Bank,VRDN (b) 2,000,000 2,000,000
Garden Grove Hsg. Auth. Multi-Family Hsg. Rev.
(Valley View Sr. Villas Proj.) Series 1990 A,
4.70%, LOC Wells Fargo Bank, VRDN (b) 7,200,000 7,200,000
Goleta Unified School Dist. TRAN 4.50% 7/10/95 3,300,000 3,306,829
Huntington Beach Multi-Family Hsg. (Five Point Seniors Proj.)
Series 1991 A, 4.70%,LOC Wells Fargo Bank, VRDN (b) 6,400,000 6,400,000
Huntington Park Multi-Family Rev. (Casa Rita Apts.)
Series 1994 A, 4.30%, LOC Tokai Bank, VRDN (b) 1,700,000 1,700,000
Irvine Apt. Dev. Rev. (San Rafael Apts. Proj.) Series 1992 A,
4.20%, LOC Sumitomo Bank Ltd., VRDN (b) 5,500,000 5,500,000
Kern Commty. College Dist. Ctfs. of Participation 4.30%,
LOC Bank of California; Dai-Ichi Kangyo Bank Ltd.,
Fuji Bank Ltd., VRDN 5,700,000 5,700,000
Kern County Ctfs. of Prtn., Series 1986 A,
3.85% 8/1/06, LOC Sanwa Bank Ltd., VRDN 1,700,000 1,700,000
La Verne Ind. Dev. Auth. Rev. (Paper-Pak Products Inc. Proj.)
4.25%, LOC First Union Nat'l Bank of North Carolina,
VRDN (b) 7,835,000 7,835,000
Livermore Multi-Family Mtg. Rev. (Portola Meadows Apts.)
Series 1989 A, 4.25%, LOC Bank of America, VRDN (b) 10,400,000
10,400,000
Livermore Ctfs. of Prtn. (Wtr. Reclamation Plant Expansion Proj.)
4.10%, LOC Nat'l. Westminster Bank, VRDN 830,000 830,000
Loma Linda Multi-Family Hsg. Rev. (Loma Linda Springs Apts.)
Series 1989, 5.45%, LOC Tokai Bank Ltd., VRDN (b) 12,120,000 12,120,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Long Beach Hbr. Dept. Rev. Series A, CP (b):
4.10% 4/12/95 $ 16,500,000 $ 16,500,000
4.20% 4/13/95 15,000,000 15,000,000
Los Angeles Ctfs. of Prtn. (Baldwin Hills Pub. Parking Facs.)
Series 1984, 4.05%, LOC Wells Fargo Bank, VRDN 1,200,000 1,200,000
Los Angeles Commty. College Dist. TRAN 4.50% 7/7/95 10,000,000
10,021,076
Los Angeles Commty. Redev. Agcy. Ctfs. of Prtn. (CMC Med.
Plaza) 4.15%, LOC Bank of America, VRDN 4,700,000 4,700,000
Los Angeles Convention & Exhibition Ctr. Auth.
Participating VRDN:
Series 94PW10, 4.20%
(Liquidity Facility Bank of Nova Scotia)(c) 11,130,000 11,130,000
Series PA-1006, 4.15%, (MBIA Insured)
(Liquidity Facility Merrill Lynch & Co.)(c) 9,420,000 9,420,000
Los Angeles County Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
(Malibu Meadows Proj.) Series 1991 A,
4.05%, LOC Sumitomo Bank Ltd. 811,000 811,000
(Meadowridge Apt. Proj.) Series 1994 B, 4.05% 5,000,000 5,000,000
(Park Sierra Apt. Proj.) 3.90%, LOC Citibank (b) 39,200,000 39,200,000
(River Park Apt.) Series 1988 D,
3.95%, LOC Dai-Ichi Kangyo Bank (b) 2,100,000 2,100,000
(Sand Canyon Villas Proj.) Series 1989 A,
4.05%, LOC Ind. Bank of Japan Ltd. (b) 8,700,000 8,700,000
Los Angeles County Ind. Dev. Auth. (Caitac & Jae Proj.)
4.45%, LOC Union Bank, VRDN (b) 4,200,000 4,200,000
Los Angeles County Local Edl. Agcys. Pooled TRAN
Series 1994-95 A, 4.50% 7/6/95 8,000,000 8,020,097
Los Angeles County Metropolitan Transport Auth. Rev.
(Union Station Gateway Proj.)
Series 1995 A, 4% (FGIC Insured) VRDN 6,000,000 6,000,000
Los Angeles County Pub. Works Fin. Auth. Participating VRDN,
Series 8, 4.30% (Liquidity Facility Credit Suisse) (c) 11,452,771
11,452,771
Los Angeles County TRAN 4.50% 6/30/94 29,245,000 29,291,522
Los Angeles Dept. of Wtr. & Pwr. Participating VRDN (c):
Series BT-51, 4.20%
(Liquidity Facility Bankers Trust) 6,430,000 6,430,000
Series PT-24, 4.15%
(Liquidity Facility Dai-Ichi Kangyo Bank Ltd.) 2,000,000 2,000,000
Los Angeles Dept. of Wtr. & Pwr. Elec. Plant Rev. CP:
4.50% 3/16/95 5,500,000 5,500,000
4.50% 3/20/95 4,000,000 4,000,000
4.55% 3/21/95 2,400,000 2,400,000
Los Angeles Multi-Family Hsg. Rev., VRDN:
(Beverly Park Apts.) Series 1988 A,
4%, LOC Barclay's Bank (b) 13,000,000 13,000,000
(Channel Gateway Apts.) Series 1989 B,
4%, LOC Fuji Bank Ltd. (b) 57,600,000 57,600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Los Angeles Multi-Family Hsg. Rev., VRDN - continued
(Museum Terrace Apt. Proj.) Series H,
4%, LOC Bank of America $ 4,500,000 $ 4,500,000
(Poinsettia Apts. Proj.) Series 1989 A,
4.10%, LOC Dai-Ichi Kangyo Bank (b) 1,000,000 1,000,000
Series 1985 K, 4.10%,
LOC Federal Home Loan Bank of San Francisco 5,300,000 5,300,000
Los Angeles Wastewtr. Sys. Rev., CP:
4.25% 5/16/95 (Liquidity Facility Sumitomo Bank Ltd.) 2,800,000
2,800,000
3.90% 3/24/95 (Liquidity Facility Sumitomo Bank Ltd.) 3,000,000
3,000,000
3.85% 3/22/95 (Liquidity Facility Sumitomo Bank Ltd.) 1,500,000
1,500,000
Los Angeles County Trans. Commission 2nd Sub. Sales
Tax Rev. 4.05% 4/13/95, LOC ABN-AMRO Bank;
Bank of California; Banque Nationale de Paris;
Canadian Imperial Bank, CP 4,000,000 4,000,000
Marin County Hsg. Auth. Rev. (Crest Marin II Apt. Proj.)
3.90%, LOC Dai-Ichi Kangyo Bank Ltd., VRDN (b) 14,750,000 14,750,000
Metropolitan Wtr. Dist. of Southern California Participating
VRDN (c):
Series 32-A, 3.90%
(Liquidity Facility Morgan Guaranty Trust) 6,350,000 6,350,000
Series 32-B, 3.90%
(Liquidity Facility Morgan Guaranty Trust) 4,945,000 4,945,000
Metropolitan Wtr. Dist. of Southern California Rev.
3.85% 3/22/95 CP 3,200,000 3,200,000
Millbrae Elementary School Dist. TRAN 4.50% 7/10/95 1,900,000 1,903,932
Morgan Hill Unified School Dist. TRAN 4.25% 7/5/95 5,590,000 5,600,217
Newark Ind. Dev. Auth. Rev. (Gas Tech Proj.)
Series 1989 A, 4%, LOC Union Bank of Switzerland,
VRDN (b) 3,000,000 3,000,000
Northern California Transmission Agcy. Participating VRDN,
Series PA-1007, 4.15% (MBIA Insured)
(Liquidity Facility Merrill Lynch & Co.) (c) 4,340,000 4,340,000
Oakland County Rev. (Children's Hosp. Med. Ctr.)
Series 1994 B, 3.95%,
LOC Banque Nationale de Paris, VRDN 6,800,000 6,800,000
Oceanside Multi-Family Mtg. Rev., VRDN:
(Lakeridge Apt. Proj.) Series 1994, 4.65% 6,000,000 6,000,000
(Riverview Springs Apts.) Series 1990 A, 4.50%,
LOC Bank of Tokyo 8,480,000 8,480,000
Olcese Wtr. Dist. Rev. Bonds (Rio Bravo Wtr. Delivery Sys.
Proj.) Series 1986 A, 4.25%, tender 4/17/95,
LOC Sumitomo Bank Ltd. (b) 6,000,000 6,000,000
Ontario Ind. Dev. Auth. Rev. (Safari Land Proj.)
Series 1989, 5.35%, LOC Tokai Bank Ltd.,
VRDN (b) 3,700,000 3,700,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Orange County Apt. Dev. Rev.:
(Bear Brands Apt.) Series 1985 Z, 4.65%,
LOC Fuji Bank Ltd., VRDN $ 4,500,000 $ 4,500,000
(Foothill Oaks Apts. Proj.) Issue 1989 B, 4.40%,
LOC Bank of America, VRDN (b) 8,500,000 8,500,000
(Frost Construction) Series 1985 B, 4.30%,
LOC Wells Fargo Bank, VRDN 2,000,000 2,000,000
(Laguna Summit Apts.) Series 1985 X, 4.60%,
LOC Tokai Bank Ltd., VRDN 4,100,000 4,100,000
(Niguel Summit II) Series 1985 U-B, 4.25%,
LOC Bank of America, VRDN 8,000,000 8,000,000
(Park Place Apts. Proj.) Series 1989 A, 4.95%,
LOC Tokai Bank Ltd., VRDN (b) 14,300,000 14,300,000
(Seaside Meadows Proj.) 4.65%,
LOC Fuji Bank Ltd., VRDN 11,000,000 11,000,000
(Vista Verde Apt. Proj.) Series 1988 A, 4.30%,
LOC Wells Fargo Bank, VRDN (b) 12,050,000 12,050,000
(WLCO Partners) VRDN:
Series 1985 C-1, 4.50%, LOC Tokai Bank Ltd. 5,000,000 5,000,000
Series 1985 C-2, 4.50%, LOC Tokai Bank Ltd. 2,500,000 2,500,000
Series 1985 C-3, 4.50%, LOC Tokai Bank Ltd. 1,000,000 1,000,000
(Wood Canyon Villas) Issue 1991 B, 5.30%
LOC Bank of America, VRDN 10,500,000 10,500,000
Orange County Hsg. Auth. Apt. Dev. Rev., VRDN:
(Costa Mesa Partners) Series 1985-BB, 5.20%,
LOC Tokai Bank Ltd 9,400,000 9,400,000
(Lantern Pines Proj. - Frost Group) 4.30%,
LOC Bank of Tokyo 12,700,000 12,700,000
Panama-Buena Vista Unified School Dist. Capital Impt.
Fing. Rev. Series 1994, 4.15%,
LOC Bank of California, VRDN 5,000,000 5,000,000
Paramount Hsg. Auth. Multi-Family Hsg. Rev. Rfdg.
(Century Place Apt. Proj.) 4.05%,
LOC Dai-Ichi Kangyo Bank Ltd., VRDN (b) 3,400,000 3,400,000
Rancho Cucamonga Redev. Agcy. Ctfs. Of Prtn.
8.15% 5/1/95 1,260,000 1,293,729
Riverside County Ind. Dev. Auth. (Golden West Homes Proj.)
5.10%, LOC Wells Fargo Bank, VRDN (b) 2,500,000 2,500,000
Sacramento Muni. Util. Dist. Rev. Series H, CP:
4.10% 4/12/95 LOC Bank of America;
Morgan Guaranty Trust 7,850,000 7,850,000
3.80% 3/24/95, LOC Bank of America;
Morgan Guaranty Trust 1,500,000 1,500,000
San Bernadino County Ind. Dev. Auth. Rev., VRDN (b):
(McCain Citrus Inc. Proj.) 4.45%, LOC Bank of Tokyo 900,000 900,000
(McElroy Metal Mill Proj.) 4.45%, LOC Bank of Tokyo 800,000 800,000
(NRI, Inc.) 4.45%, LOC Bank of Tokyo 1,440,000 1,440,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
San Bernadino County Mtg. Rev. Rfdg. (Pepperwood Apts.)
Series 1993 A, 4%, LOC Federal Home Loan Bank of
San Francisco, VRDN $ 3,000,000 $ 3,000,000
San Bernadino County Multi-Family Hsg. Rev., VRDN:
(Western Properties II) 4%, LOC Bank of America 1,000,000 1,000,000
(Western Properties IV) 4%, LOC Bank of America 2,700,000 2,700,000
(Woodview Apts.) 4%, LOC Bank of America 1,400,000 1,400,000
San Diego Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Coral Pointe Apt. Proj.) Series 1993 A, 4.50% 5,000,000
5,000,000
(Carmel Del Mar Apt. Proj.)
Series 1993-E, 4%, LOC Citibank 7,608,000 7,608,000
(Lusk Mira Mesa Apts.) Series 1985 E, 4%,
LOC Bank of America 2,200,000 2,200,000
(Paseo Point Apt.) Series 1994 A, 3.95%,
LOC Bank of Tokyo 3,000,000 3,000,000
San Diego Reg'l. Trans. Commission Sales Tax Rev. Series A,
5.60% 4/1/95 1,100,000 1,101,537
San Francisco Redev. Agcy. Rev. (St. Francis Place Proj.)
Series 1989 A, 4.60%,
LOC Mitsubishi Trust & Banking, VRDN 13,300,000 13,300,000
San Jose Redev. Agcy. Participating VRDN,
Series PA-42I, 4.15%, (MBIA Insured)
(Liquidity Facility Merrill Lynch & Co.) (c) 2,700,000 2,700,000
San Jose Multi-Family Mtg. Rev., VRDN:
(Kimberly Woods) Series 1984, 4%,
LOC Bank of America 4,600,000 4,600,000
(Somerset Park Apts.) Series 1987 A, 4.25%,
LOC Bank of America (b) 3,100,000 3,100,000
San Mateo Unified School Dist. TRAN 4.50%
7/10/95 2,750,000 2,755,690
Santa Ana Ind. Dev. Auth. Rev. (McFadden Properties Proj.)
4.25%, LOC Bank of America, VRDN 800,000 800,000
Santa Clara County Apt. Dev. Rev. (Lincoln Pajaro Proj.) 4%,
LOC Sumitomo Bank Ltd., VRDN 5,300,000 5,300,000
Santa Clara Elec. Rev. Series B, 3.80%,
LOC Nat'l. Westminster, VRDN 1,800,000 1,800,000
Simi Valley Multi-Family Hsg. Rev. (Shadowridge Apts.)
Series 1989, 4.10%, LOC Citibank, VRDN (b) 19,200,000 19,200,000
Stockton Hosp. Rev. (St. Joseph's Hosp.) Series 1985 A, 4%,
LOC Dai-Ichi Kangyo Bank Ltd., VRDN 17,135,000 17,135,000
Torrance Hospital Rev. (Little Co. of Mary Hosp.-Torrance
Mem. Med. Ctr.) Series 1992, 4.15%,
LOC Fuji Bank Ltd., VRDN 7,800,000 7,800,000
Tustin City Assessment Bonds Dist. #85-1, 4.70%,
tender 3/7/95, LOC Sanwa Bank Ltd 9,000,000 9,000,000
Union City Hsg. Mtg. Rev. (Greenhaven Apts. Proj.)
Issue A, 4.60% LOC Mitsubishi Trust, VRDN 4,975,000 4,975,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Upland Commty. Redev. Agcy. Multi-Family Hsg. Rev.
(Northwoods) Series 1989 B, 4.80%,
LOC Sanwa Bank Ltd., VRDN $ 1,300,000 $ 1,300,000
Washington Township Hosp. Dist. Rev., Series 1985 A, 3.90%,
LOC Ind. Bank of Japan Ltd., VRDN 2,700,000 2,700,000
TOTAL INVESTMENTS - 100% $ 1,155,173,204
Total Cost for Income Tax Purposes $ 1,155,172,829
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on the holdings is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
California Gen. Oblig. Bonds:
Series CR-26I, 4.15%,
tender 3/15/95 (Liquidity
Facility Citibank)
(AMBAC Insured) 2/15/95 $ 7,925,000
California Gen. Oblig. Bonds:
Series 93 N, 4%,
tender 3/1/95 (Liquidity
Facility Citibank)
(AMBAC Insured) 2/1/95 $ 14,000,000
INCOME TAX INFORMATION
At February 28, 1995, the fund had a capital loss carryforward of
approximately $756,900 of which $34,400, $722,500 will expire on February
28, 2001 and 2003, respectively.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 28, 1995
252.ASSETS 253. 254.
255.Investment in securities, at value - See 256. $ 1,155,173,204
accompanying schedule
257.Cash 258. 157,952
259.Interest receivable 260. 9,273,055
261. 262.TOTAL ASSETS 263. 1,164,604,211
264.LIABILITIES 265. 266.
267.Share transactions in process $ 1,016,805 268.
269.Dividends payable 66,970 270.
271.Accrued management fee 269,071 272.
273. 274.TOTAL LIABILITIES 275. 1,352,846
276.277.NET ASSETS 278. $ 1,163,251,365
279.Net Assets consist of: 280. 281.
282.Paid in capital 283. $ 1,164,011,236
284.Accumulated net realized gain (loss) on 285. (760,246)
investments
286.Unrealized gain from accretion of market discount 287. 375
288.289.NET ASSETS, for 1,164,011,209 shares 290. $ 1,163,251,365
outstanding
291.292.NET ASSET VALUE, offering price and 293. $1.00
redemption price per share ($1,163,251,365 (divided by)
1,164,011,209 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED FEBRUARY 28, 1995
294.295.INTEREST INCOME 296. $ 38,920,686
297.EXPENSES 298. 299.
300.Management fee $ 5,998,081 301.
302.Non-interested trustees' compensation 6,744 303.
304. Total expenses before reductions 6,004,825 305.
306. Expense reductions (2,654,441) 3,350,384
307.308.NET INTEREST INCOME 309. 35,570,302
310.REALIZED AND UNREALIZED GAIN (LOSS) 312. (725,885)
311.Net realized gain (loss) on investment securities
313.Increase (decrease) in net unrealized gain from 314. 375
accretion
of market discount
315.316.NET GAIN (LOSS) 317. (725,510)
318.319.NET INCREASE IN NET ASSETS RESULTING FROM 320. $ 34,844,792
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED FEBRUARY 28,
1995 1994
321.INCREASE (DECREASE) IN NET ASSETS
322.Operations $ 35,570,302 $ 22,877,298
Net interest income
323. Net realized gain (loss) (725,885) 30,247
324. Increase (decrease) in net unrealized gain from 375 -
accretion of market discount
325. 34,844,792 22,907,545
326.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
327.Dividends to shareholders from net interest income (35,570,302) (22,877,298)
328.Share transactions at net asset value of $1.00 per 1,667,363,709 1,234,266,731
share
Proceeds from sales of shares
329. Reinvestment of dividends from net interest 34,366,827 22,035,126
income
330. Cost of shares redeemed (1,602,356,882) (1,047,318,874)
331. 99,373,654 208,982,983
Net increase (decrease) in net assets and shares
resulting from share transactions
332. 98,648,144 209,013,230
333.TOTAL INCREASE (DECREASE) IN NET ASSETS
334.NET ASSETS 335. 336.
337. Beginning of period 1,064,603,221 855,589,991
338. End of period $ 1,163,251,365 $ 1,064,603,221
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED FEBRUARY 28, TEN MONTHS YEARS ENDED APRIL 30,
ENDED
FEBRUARY 28,
1995 1994 1993 1992 1991
339.SELECTED PER-SHARE DATA
340.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value, beginning
of period
341.Income from .030 .024 .022 .041 .054
Investment
Operations
Net interest
income
342.Less (.030) (.024) (.022) (.041) (.054)
Distributions
From net interest
income
343.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value,
end of period
344.TOTAL 3.00 2.45 2.24% 4.15 5.52
RETURN B % % % %
345.RATIOS AND SUPPLEMENTAL
DATA
346.Net assets, $ 1,163,251 $ 1,064,603 $ 855,590 $ 917,640 $ 763,959
end of period
(000 omitted)
347.Ratio of .28 .21 .30% .10 .07
expenses % % A % %
to average net
assets
348.Ratio of .50 .50 .50% .50 .50
expenses to % % A % %
average net
assets before
expense
reductions
349.Ratio of net 2.96 2.42 2.67% 4.05 5.33
interest income to % % A % %
average net
assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. SEE
NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1995
1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan California Municipal High Yield Portfolio (the high yield fund) and
Spartan California Intermediate Municipal Portfolio (the intermediate fund)
are funds of Fidelity California Municipal Trust. Spartan California
Municipal Money Market Portfolio (the money market fund) is a fund of
Fidelity California 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 California Municipal Trust and
Fidelity California Municipal Trust II (the trusts) are organized as a
Massachusetts business trust and a Delaware business trust, respectively.
Each fund is authorized to issue an unlimited number of shares. The
following summarizes the significant accounting policies of the high yield
fund, the intermediate fund and money market fund:
SECURITY VALUATION.
HIGH YIELD AND INTERMEDIATE FUNDS. Securities are valued based upon a
computerized matrix system and/or appraisals by a pricing service, both of
which consider market transactions and dealer-supplied valuations.
Short-term securities maturing within sixty days of their purchase date are
valued either at amortized cost or original cost plus accrued interest,
both of which approximate current value. Securities for which quotations
are not readily available through the pricing service are valued at their
fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each of the funds was not subject to income
taxes to the extent that it distributes all of its taxable income for its
fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. For the
money market fund, accretion of market discount represents unrealized gain
until realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
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
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS -
CONTINUED
for futures and options transactions, losses deferred due to wash sales and
excise tax regulations.
REDEMPTION FEES. Shares held in the high yield fund less than 180 days are
subject to a redemption fee equal to .50% of the proceeds of the redeemed
shares. The fee, which is retained by the fund, is accounted for as an
addition to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The
market value of the securities purchased or sold on a when- issued or
forward commitment basis are identified as such in the high yield fund's
schedule of investments. The high yield fund may receive compensation for
interest forgone in the purchase of a delayed delivery security. With
respect to purchase commitments, the fund identifies securities as
segregated in its custodial 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.
FUTURES CONTRACTS AND OPTIONS.
The high yield and intermediate funds may use futures and options contracts
to manage its exposure to the bond market and to fluctuations in interest
rates. Buying futures, writing puts, and buying calls tend to increase the
fund's exposure to the underlying instrument. Selling futures, buying puts,
and writing calls tend to decrease the fund's exposure to the underlying
instrument, or hedge other fund investments. Futures contracts and written
options involve, to varying degrees, risk of loss in excess of the futures
variation margin or the option value reflected in the Statement of Assets
and Liabilities. The underlying face amount at value is shown in the
schedule of investments under the captions "Futures Contracts". This amount
reflects each contract's exposure to the underlying instrument at period
end. Losses may arise from changes in the value of the underlying
instruments, if there is an illiquid secondary market for the contracts, or
if the counterparties do not perform under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the
last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
RESTRICTED SECURITIES. Each fund is permitted to invest in privately placed
restricted securities. These securities
2. OPERATING POLICIES -
CONTINUED
RESTRICTED SECURITIES - CONTINUED
may be resold in transactions exempt from registration or to the public if
the securities are registered. Disposal of these securities may involve
time-consuming negotiations and expense, and prompt sale at an acceptable
price may be difficult. At the end of the period, restricted securities
(excluding 144A issues) amounted to $21,925,000 or 1.9% of net assets for
the money market fund.
3. PURCHASES AND SALES OF
INVESTMENTS.
HIGH YIELD FUND. Purchases and sales of securities, other than short-term
securities, aggregated $130,671,663 and $273,150,110, respectively.
The market value of futures contracts opened and closed during the period
amounted to $744,367,789 and $737,737,595, respectively.
INTERMEDIATE FUND. Purchases and sales of securities, other than short-term
securities, aggregated $37,519,546 and $17,298,246, respectively.
The market value of futures contracts opened and closed during the period
amounted to $20,823,537 and $20,663,119, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses, except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .55%, .55% and .50% of average net
assets for the high yield, intermediate and money market funds,
respectively.
FMR also bears the cost of providing shareholder services to each fund. To
offset the cost of providing these services, FMR or its affiliates
collected certain transaction fees from shareholders which amounted to
$10,745, $1,290 and $25,093 for the high yield, intermediate and money
market fund, respectively.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect, and after reducing
the fee for any payments by FMR pursuant to the fund's Distribution and
Service Plan.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the funds' operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above a specified percentage of average net assets.
INTERMEDIATE FUND.. For the period, this expense limitation ranged from an
annual rate of 0% to .10% of average net assets and the reimbursement
reduced expenses by $180,062.
MONEY MARKET FUND. For the period, this expense limitation ranged from an
annual rate of .25% to .30% of average net assets and the reimbursement
reduced expenses by $2,654,441.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity California Municipal Trust and Fidelity
California Municipal Trust II and the Shareholders of Spartan California
Municipal High Yield Portfolio, Spartan California Intermediate Municipal
Portfolio, and Spartan California Municipal Money Market Portfolio:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for Moody's and Standard &
Poor's ratings), 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 California Municipal High Yield
Portfolio, Spartan California Intermediate Municipal Portfolio (funds of
Fidelity California Municipal Trust) and Spartan California Municipal Money
Market Portfolio (a fund of Fidelity California Municipal Trust II) at
February 28, 1995, 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 each portfolio's 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 February 28, 1995 by correspondence
with the custodian and brokers and the application of alternative auditing
procedures where confirmations from brokers were not received, provide a
reasonable basis for the opinion expressed above.
/s/PRICE WATERHOUSE, LLP
PRICE WATERHOUSE, LLP
Boston, Massachusetts
March 29, 1995
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND
QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios.(registered trademark)
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND
ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER, MONEY MARKET FUND
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President -
MONEY MARKET FUND
Deborah F. Watson, Vice President -
MONEY MARKET FUND
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
Michael D. Conway, Assistant Treasurer- MONEY MARKET FUND
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
United Missouri Bank, N.A.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
FIDELITY
(REGISTERED TRADEMARK)
CALIFORNIA
TAX-FREE
PORTFOLIOS
ANNUAL REPORT
FEBRUARY 28, 1995
CONTENTS
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING
STRATEGIES
FIDELITY CALIFORNIA TAX-FREE
HIGH YIELD PORTFOLIO 4 PERFORMANCE
7 FUND TALK: THE MANAGER'S OVERVI
EW
10 INVESTMENT CHANGES
11 INVESTMENTS
22 FINANCIAL STATEMENTS
FIDELITY CALIFORNIA TAX-FREE
INSURED PORTFOLIO 26 PERFORMANCE
29 FUND TALK: THE MANAGER'S OVERVI
EW
32 INVESTMENT CHANGES
33 INVESTMENTS
40 FINANCIAL STATEMENTS
FIDELITY CALIFORNIA TAX-FREE
MONEY MARKET PORTFOLIO 44 PERFORMANCE
46 FUND TALK: THE MANAGER'S OVERVI
EW
48 INVESTMENT CHANGES
49 INVESTMENTS
57 FINANCIAL STATEMENTS
NOTES 61 NOTES TO THE FINANCIAL STATEMENTS
REPORT OF INDEPENDENT
ACCOUNTANTS 65 THE AUDITOR'S OPINION
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK. FOR MORE
INFORMATION ON ANY FIDELITY FUND INCLUDING CHARGES AND EXPENSES, CALL
1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although there have been a few positive market indications so far in 1995,
no one can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
FIDELITY CALIFORNIA TAX-FREE HIGH YIELD PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value). You can also look at the fund's income to
measure performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
California Tax-Free High Yield -0.91% 40.78% 123.76%
Lehman Brothers Municipal Bond Index 1.88% 46.94% 153.83%
Average California Municipal Bond Fund 0.19% 42.95% 132.67%
Consumer Price Index 2.86% 17.89% 42.36%
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 invested $1,000 in a fund that had a 5% return over the
past year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Lehman Brothers Municipal Bond
Index - a broad gauge of the municipal bond market. To measure how the
fund's performance stacked up against its peers, you can compare it to the
average California municipal bond fund, which reflects the performance of
83 California municipal bond funds with similar objectives tracked by
Lipper Analytical Services during the period covered by this report. Both
benchmarks include reinvested dividends and capital gains, if any.
Comparing the fund's performance to the consumer price index (CPI) helps
show how your fund did compared to inflation.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
California Tax-Free High Yield -0.91% 7.08% 8.39%
Lehman Brothers Municipal Bond Index 1.88% 8.00% 9.76%
Average California Municipal Bond Fund 0.19% 7.40% 8.79%
Consumer Price Index 2.86% 3.35% 3.59%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had achieved that return
by performing at a constant rate each year.
$10,000 OVER 10 YEARS
Cal Free High YieldMunicipal Bond Inde
02/28/85 10000.00 10000.00
03/31/85 10068.20 10086.30
04/30/85 10374.66 10455.46
05/31/85 10643.87 10818.47
06/30/85 10751.74 10931.96
07/31/85 10808.98 10953.38
08/31/85 10745.18 10876.93
09/30/85 10546.31 10767.83
10/31/85 10870.26 11136.85
11/30/85 11174.36 11536.33
12/31/85 11386.16 11637.73
01/31/86 11925.39 12323.19
02/28/86 12306.58 12811.93
03/31/86 12475.25 12816.03
04/30/86 12418.52 12825.77
05/31/86 12233.33 12616.97
06/30/86 12331.09 12737.33
07/31/86 12382.45 12814.65
08/31/86 12952.29 13388.36
09/30/86 12914.82 13421.97
10/31/86 13130.57 13653.76
11/30/86 13346.01 13924.24
12/31/86 13383.22 13885.81
01/31/87 13738.83 14303.92
02/28/87 13845.27 14374.29
03/31/87 13746.82 14221.92
04/30/87 12694.23 13508.27
05/31/87 12503.10 13441.27
06/30/87 12727.57 13835.90
07/31/87 12872.37 13977.03
08/31/87 12936.60 14008.48
09/30/87 12238.73 13491.98
10/31/87 12352.51 13539.74
11/30/87 12645.45 13893.27
12/31/87 12892.41 14094.86
01/31/88 13507.48 14596.92
02/29/88 13681.19 14751.21
03/31/88 13239.47 14579.36
04/30/88 13293.02 14690.16
05/31/88 13347.33 14647.70
06/30/88 13563.69 14862.00
07/31/88 13643.35 14958.90
08/31/88 13698.59 14972.06
09/30/88 13996.82 15243.06
10/31/88 14322.71 15512.10
11/30/88 14158.37 15370.01
12/31/88 14410.52 15527.24
01/31/89 14611.00 15848.35
02/28/89 14470.34 15667.52
03/31/89 14449.09 15630.07
04/30/89 14868.31 16001.13
05/31/89 15183.27 16333.47
06/30/89 15376.65 16555.28
07/31/89 15515.98 16780.60
08/31/89 15327.37 16616.32
09/30/89 15347.12 16566.47
10/31/89 15499.97 16768.58
11/30/89 15740.97 17062.03
12/31/89 15804.28 17201.94
01/31/90 15693.74 17121.09
02/28/90 15894.32 17273.47
03/31/90 15929.48 17278.65
04/30/90 15702.40 17154.24
05/31/90 16079.80 17528.20
06/30/90 16227.61 17682.45
07/31/90 16478.36 17942.38
08/31/90 16250.27 17682.22
09/30/90 16314.77 17692.83
10/31/90 16525.59 18013.07
11/30/90 16840.25 18375.13
12/31/90 16903.97 18455.98
01/31/91 17057.45 18703.29
02/28/91 17120.43 18866.01
03/31/91 17139.19 18873.56
04/30/91 17341.30 19124.58
05/31/91 17513.57 19294.78
06/30/91 17517.47 19275.49
07/31/91 17738.29 19510.65
08/31/91 17897.22 19768.19
09/30/91 18089.06 20025.18
10/31/91 18312.43 20205.40
11/30/91 18315.16 20261.98
12/31/91 18621.20 20697.61
01/31/92 18721.49 20745.22
02/29/92 18753.43 20751.44
03/31/92 18743.21 20759.74
04/30/92 18891.55 20944.50
05/31/92 19126.66 21191.65
06/30/92 19425.19 21547.67
07/31/92 20026.78 22194.10
08/31/92 19749.04 21976.60
09/30/92 19849.81 22119.44
10/31/92 19481.87 21902.67
11/30/92 19936.32 22294.73
12/31/92 20243.87 22522.14
01/31/93 20485.52 22783.39
02/28/93 21422.26 23608.15
03/31/93 21168.20 23357.91
04/30/93 21358.09 23593.82
05/31/93 21482.41 23725.95
06/30/93 21828.61 24122.17
07/31/93 21828.58 24153.53
08/31/93 22360.85 24655.92
09/30/93 22643.58 24937.00
10/31/93 22682.24 24984.38
11/30/93 22448.05 24764.52
12/31/93 22963.25 25287.05
01/31/94 23223.16 25575.32
02/28/94 22581.54 24912.92
03/31/94 21426.76 23898.96
04/30/94 21516.77 24102.11
05/31/94 21664.92 24311.79
06/30/94 21443.52 24170.79
07/31/94 21880.56 24613.11
08/31/94 21955.89 24699.26
09/30/94 21619.01 24336.18
10/31/94 21088.62 23902.99
11/30/94 20570.68 23470.35
12/31/94 20923.75 23986.70
01/31/95 21673.52 24672.72
02/28/95 22375.82 25383.00
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity
California Tax-Free High Yield Portfolio ten years ago on February 28,
1985. As the chart shows, by February 28, 1995, the value of your
investment would have grown to $22,376 - a 123.76% increase on your initial
investment. For comparison, look at how the Lehman Brothers Municipal Bond
Index did over the same period. With dividends reinvested, the same $10,000
would have grown to $25,383 - a 153.83% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
YEARS ENDED FEBRUARY 28,
1995 1994 1993 1992 1991
Dividend returns 5.96% 5.82% 6.89% 6.88% 7.00%
Capital appreciation
returns -6.87% -0.41% 7.34% 2.66% 0.71%
Total returns -0.91% 5.41% 14.23% 9.54% 7.71%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested.
DIVIDENDS AND YIELD
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED FEBRUARY 28, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 5.06(cents) 33.88(cents) 68.45(cents)
Annualized dividend rate 6.00% 6.36% 6.20%
30-day annualized yield 5.81% - -
30-day annualized tax-equivalent yield 10.20% - -
</TABLE>
DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $11.00 over
the past month, $10.74 over the past six months and $11.04 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 43.04% combined effective 1995 federal and state tax bracket.
FIDELITY CALIFORNIA TAX-FREE HIGH YIELD PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
A municipal bond market rally
beginning in mid-November
helped to counteract the negative
effects of several months of
sharply rising interest rates. For
the 12 months ended February
28, 1995, the Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
had a total return of 1.88%. By
comparison, the Lehman Brothers
Aggregate Bond Index - a proxy
of investment-grade taxable
bonds - returned 1.78%. Interest
rate increases had caused a
significant downturn in all U.S.
bond markets through the first
nine of the 12 months ended
February 28, 1995. From March
1994 through February 1995, the
Federal Reserve Board raised the
federal funds rate - the rate
banks charge each other for
overnight loans - six times,
increasing the rate by 2.75% to
6.00%. These actions sparked
inflation fears, leading to a sharp
sell-off in all bond markets. The
municipal market saw further
instability from September through
mid-November, as investors sold
bonds to realize losses for tax
purposes. From mid-November
through the end of February, the
municipal market rebounded as
there were indications that
Federal Reserve Board rate hikes
were having their intended effect
of slowing the economy and
reducing the risk of inflation. In
addition, the recent rally was
helped by an abatement of
tax-loss selling and a decrease in
the supply of new municipal
bonds.
NOTE TO SHAREHOLDERS:
On March 27, 1995, Jonathan Short (left) became portfolio manager of
Fidelity California Tax-Free High Yield Portfolio. The following is an
interview with John Haley - who managed the fund during the period covered
by this report - with some comments from Jon Short on his outlook and
strategy:
Photo of
JOHN SHORT
Photo of
JOHN HALEY
Q. JACK, HOW HAS THE FUND PERFORMED?
J.H. It was a volatile 12 months for both the municipal bond market and the
fund. For the year ended February 28, 1995, the fund had a total return of
- -0.91%. That trailed the average California municipal bond fund, which
returned 0.19% for the same period, according to Lipper Analytical
Services.
Q. WHILE ALL MUNICIPAL BONDS SUFFERED FROM FEARS OF INFLATION AND RISING
INTEREST RATES, CALIFORNIA MUNICIPAL BONDS EXPERIENCED ADDITIONAL
PROBLEMS...
J.H. That's true, especially in late 1994. Prior to that, California bonds
held their own relative to the national municipal market. The state
experienced continued, but gradual, improvements in the economy and there
were some positive fiscal developments. However, when Orange County
declared bankruptcy, there was a general widening of credit spreads. By
that I mean that yields on California bonds had to rise, relative to the
national municipal market, in order to compensate investors for the
additional perceived risk. As those yields rose, prices fell. Bonds issued
by Orange County were hit the worst, although there was a ripple effect on
other counties which had investments in its investment pool.
Q. WHY DID THE FUND LAG THE AVERAGE?
J.H. Primarily because it had a heavy concentration in longer-term discount
bonds - which sell below face value - and zero coupon bonds. These two
types of bonds tend to fall more than others when interest rates are
rising. While discount and zero coupon bonds hurt the fund's performance
during most of 1994, they turned out to be a positive later in the year and
in the first two months of 1995 when yields were falling and bond prices
were rising. I've utilized the market's recent strength to selectively
reduce the fund's holdings in these types of bonds.
Q. IS THE FUND INVESTED IN ANY ORANGE COUNTY SECURITIES?
J.H. The fund had no investments in uninsured securities issued by Orange
County at the end of the period. However, the fund did have less than a 3%
stake invested in insured securities issued by Orange County and
municipalities which had investments in the Orange County investment pool.
That insurance means that the securities' principal and interest payments
are guaranteed. Additionally, the fund had less than a 3% stake in
uninsured securities issued by municipalities which participated in the
Orange County investment pool. In my view, the losses sustained by these
municipalities should be seen as a one-time setback for their financial
health, though they may face some short-term cash flow hurdles, which
temporarily may put downward pressure on their credit quality. But I
believe that their long-term credit viability will not be affected. Another
bond affected by Orange County's bankruptcy was the Orange County
Development Agency, Santa Ana Heights Project, which made up less than 1%
of the fund's investments by the end of the period. This bond carries
different ratings by the credit agencies; Caa by Moody's Investors Service
and BBB by Standard & Poor's. That split rating revolves around the
relationship between Orange County and the Development Agency. In my view,
the county and the Development Agency are two separate entities. As a
result, the Development Agency has pledged a distinct revenue flow to cover
interest and principal payments. After the period ended, the Development
Agency paid its scheduled debt service payment in full, which improved the
outlook for the bond.
Q. JON, WHAT'S AHEAD FOR THE FUND?
J.S. I'll focus on tempering the fund's duration, which measures how
sensitive the fund's share price is to changes in interest rates. I plan to
do that by de-emphasizing long-term bonds with maturities of 20 years or
more, and emphasizing short- and intermediate-term bonds - or those with
maturities in the one- to 15-year range. And because I believe that the
economy could start to slow, I'll most likely invest less in lower-and
medium-quality bonds and more in high-quality and insured bonds.
FUND FACTS
GOAL: to provide high current
income exempt from
California state and federal
income taxes by investing
primarily in investment-grade
California municipal securities
START DATE: July 7, 1984
SIZE: as of February 28,
1995, more than $477 million
MANAGER: John Haley, 1989 -
March 1995; Jonathan Short,
starting March 27, 1995;
manager, Fidelity California
Tax-Free High Yield, Fidelity
California Tax-Free Insured
and Spartan California
Municipal High Yield and
Spartan California Intermediate
Municipal Portfolios, since
March 1995; joined
Fidelity in 1992
(checkmark)
JONATHAN SHORT ON HIS
INVESTMENT STRATEGY:
"During the market's recent
rally, credit spreads - the
difference in yields on bonds
with various credit ratings -
have narrowed. That means
that currently there is less
incentive, in the form of extra
income, to own lower-quality
bonds. That narrowing was
partly due to improvements in
the economy, which in turn
boosted the prospects for
lower-quality bonds in
general. A weaker economy,
which is what I think could
develop over the next 12
months, could translate into a
widening of credit spreads.
That means the prices of
lower-quality bonds would
have to fall more or rise less
as the yields rose."
(solid bullet) Inverse floaters, one of the
financial arrangements known
as derivatives, made up less
than 3% of the fund's
investments at the end of the
period. The yield on inverse
floaters rises as short-term
interest rates fall, and vice
versa. By using various
derivatives, the manager
hopes to achieve higher
levels of tax-exempt income
and increased flexibility in
managing the fund's overall
sensitivity to changes in
interest rates.Inverse floaters,
one of the financial
arrangements known as
derivatives, made up less
than 3% of the fund's
investments at the end of the
period. The yield on inverse
floaters rises as short-term
interest rates fall, and vice
versa. By using various
derivatives, the manager
hopes to achieve higher
levels of tax-exempt income
and increased flexibility in
managing the fund's overall
sensitivity to changes in
interest rates.
FIDELITY CALIFORNIA TAX-FREE HIGH YIELD PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF FEBRUARY 28, 1995
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO
Health Care 24.6 23.1
Special Tax 16.6 20.9
Lease Revenue 16.0 16.3
Electric Revenue 11.8 9.5
General Obligation 7.5 6.8
AVERAGE YEARS TO MATURITY AS OF FEBRUARY 28, 1995
6 MONTHS AGO
Years 18.5 20.2
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF FEBRUARY 28, 1995
6 MONTHS AGO
Years 8.6 10.2
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THE ABOVE EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF FEBRUARY 28, 1995 AS OF AUGUST 31, 1994
Aaa 30.3%
Aa, A 39.0%
Baa 14.0%
Caa 0.4%
Non-rated 10.3%
Short-term and other
investments 6.0%
Aaa 34.5%
Aa, A 36.2%
Baa 15.1%
Caa 0.0%
Non-rated 13.3%
Short-term and other
investments 0.9%
Row: 1, Col: 1, Value: 30.3
Row: 1, Col: 2, Value: 39.0
Row: 1, Col: 3, Value: 14.0
Row: 1, Col: 4, Value: 1.4
Row: 1, Col: 5, Value: 10.3
Row: 1, Col: 6, Value: 6.0
Row: 1, Col: 1, Value: 34.5
Row: 1, Col: 2, Value: 36.2
Row: 1, Col: 3, Value: 15.1
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 13.3
Row: 1, Col: 6, Value: 1.9
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS. UNRATED DEBT SECURITIES THAT ARE
EQUIVALENT TO BA AND BELOW ACCOUNT FOR 4.4% AND 5.7% OF THE FUND'S
INVESTMENTS AT FEBRUARY 28, 1995, AND AUGUST 31, 1994, RESPECTIVELY.
FIDELITY CALIFORNIA TAX-FREE HIGH YIELD PORTFOLIO
INVESTMENTS FEBRUARY 28, 1995
Showing Percentage of Total Value of Investments
MUNICIPAL BONDS - 94.0%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - 92.7%
Alameda County Ctfs. of Prtn. Rfdg. (Santa Rita
Jail Proj.) 5.375% 6/1/09 (MBIA Insured) Aaa $ 2,250,000 $ 2,134,687
Alameda Hsg. Auth. Multi-Family Hsg. Rev.
(Independence Apts.) Series A,
7.50% 2/20/31 (GNMA Coll.) AAA 2,640,000 2,719,200
Anaheim Pub. Fing. Auth. Tax Allocation Rev. (Reg.
Rites) 8.432% 12/1/18 (MBIA Insured) INFL (c) Aaa 1,500,000 1,612,500
Buena Park Commty. Redev. Agcy. Tax
Allocation Rfdg. (Central Business Dist. Proj.)
7.10% 9/1/14 BBB+ 2,000,000 1,777,500
Burbank Redev. Agcy. Tax Allocation Rfdg.
Series A:
5.75% 12/1/08 Baa1 2,300,000 2,133,250
6% 12/1/13 Baa1 1,750,000 1,605,625
6% 12/1/23 Baa1 1,975,000 1,757,750
California Gen. Oblig.:
Unltd. Tax 6% 9/1/03 A1 4,000,000 4,130,000
4.75% 9/1/23 A1 1,000,000 790,000
California Health Facs. Fing. Auth. Rev.:
Rfdg. (Alexian Brothers, San Jose):
7.05% 1/1/09 (MBIA Insured) Aaa 4,500,000 4,770,000
7.125% 1/1/16 (MBIA Insured) Aaa 2,510,000 2,644,912
Rfdg. (Catholic Healthcare West)
Series A, 4.75% 7/1/19 (MBIA Insured) Aaa 2,000,000 1,620,000
(Daughters of Charity-St. Vincents Hosp.)
Series A, 9.25% 11/1/15 Aa 1,000,000 1,063,750
(Gould Med. Foundation) Series A,
7.30% 4/1/20 (Escrowed to Maturity) (d) A 3,000,000 3,277,500
(Kaiser Permanente Health Sys.) Series A:
(Cap. Appreciation):
0% 10/1/09 Aa2 7,140,000 2,829,225
0% 10/1/10 Aa2 3,795,000 1,404,150
0% 10/1/12 Aa2 14,990,000 4,834,275
9.125% 10/1/15 Aa2 2,500,000 2,603,125
(Robert F. Kennedy Med. Ctr.)
Series A, 7.75% 3/1/14 A 2,980,000 3,132,725
(St. Elizabeth Hosp. Proj.)
6.30% 11/15/15 A1 1,000,000 973,750
(Sacramento Med. Foundation)
Series F, 7.875% 6/1/18 A 1,000,000 1,056,250
California Hsg. Fin. Agcy. Rev. (Home Mtg.):
Series A, 8.10% 8/1/16 Aa 1,475,000 1,532,156
Series E, 5.50% 8/1/14 Aa 2,000,000 1,815,000
Series F, 7.875% 8/1/19 Aa 915,000 944,737
California Poll. Cont. Fing. Auth. Poll. Cont.
Rev. (General Motors Corp.)
5.50% 4/1/08 Baa1 1,500,000 1,372,500
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Pub. Cap. Impt. Fing. Auth. Rev.
(Pooled Proj.) Series B, 8.10% 3/1/18
(MBIA Insured) Aaa $ 980,000 $ 1,037,575
California Pub. Wks. Board Lease Rev.:
Rfdg. (Dept. Corrections State Prisons)
Series A, 5% 12/1/19
(AMBAC Insured) Aaa 3,250,000 2,766,563
Rfdg. (Dept. Corrections St. Prisons -
Del Norte) Series C, 4.875%
12/1/06 A 1,550,000 1,373,687
(California University Projs.):
Series A:
5.50% 6/1/10 A 1,915,000 1,737,862
5.50% 6/1/14 A 9,275,000 8,162,000
5.50% 12/1/18 A 2,500,000 2,168,750
Series B:
5.25% 6/1/07 A 2,965,000 2,694,444
6.40% 12/1/09 A1 1,000,000 1,006,250
5.50% 6/1/14 A 5,000,000 4,400,000
California Statewide Commty. Dev.
Corp. Rev. Ctfs. of Prtn.:
Rfdg.:
(Childrens Hosp.)
4.75% 6/1/21 (MBIA Insured) Aaa 1,530,000 1,229,738
(Eskaton, Inc.) 5.875% 5/1/20 A 4,000,000 3,590,000
(Triad Healthcare) 6.25% 8/1/06 (g) A 2,000,000 1,992,500
(St. Joseph Health Sys.):
5.50% 7/1/14 Aa 3,500,000 3,158,750
5.50% 7/1/23 Aa 3,000,000 2,621,250
(Childrens Hosp.)
6% 6/1/10 (MBIA Insured) Aaa 2,835,000 2,856,263
(J. Paul Getty Trust) 5% 10/1/13 Aaa 1,450,000 1,266,937
(Odd Fellows Hsg. of Napa):
5.375% 10/1/13 A+ 2,500,000 2,184,375
5.50% 10/1/23 A+ 2,000,000 1,692,500
(Sisters of Charity Leavenworth)
5% 12/1/23 Aa 6,375,000 5,052,187
(Unihealth) Series A
5.50% 10/1/14 (AMBAC Insured) Aaa 1,750,000 1,612,187
(Villaview Commty. Hosp.)
Series A, 7% 9/1/09 A 1,000,000 1,033,750
6.752% 7/1/13 (MBIA Insured) INFL (c) Aaa 2,000,000 1,767,500
Campbell Ctfs. of Prtn. Rfdg.
(Civic Center Proj.) 6% 10/1/18 A 2,400,000 2,241,000
Carson Redev. Agcy. Tax Allocation Rfdg.:
(Redev. Proj. Area #1):
6.375% 10/1/12 Baa1 1,500,000 1,425,000
6.375% 10/1/16 Baa1 1,000,000 935,000
(Redev. Proj. Area #2) 6% 10/1/13 Baa 1,750,000 1,594,687
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. Rfdg.
(Wtr. Sys. Impt. Proj.) Series A:
7.25% 8/1/08 (MBIA Insured) Aaa $ 1,500,000 $ 1,710,000
7% 8/1/13 (MBIA Insured) Aaa 1,580,000 1,749,850
Central California Joint Pwrs.
Health Fing. Auth. Ctfs. of Prtn.
(Commty. Hosp. of Central California Proj.):
Rfdg. 5% 2/1/23 A 5,950,000 4,551,750
5.25% 2/1/13 A 4,000,000 3,360,000
Central Valley Fing. Auth. Cogeneration Proj.
Rev. (Carson Ice Generation Proj.):
6% 7/1/09 BBB- 1,750,000 1,669,063
6.10% 7/1/13 BBB- 1,000,000 947,500
Compton Commty. Redev. Agcy. Tax Allocation
Rfdg. (Walnut Ind. Park Proj.) Series A,
7.50% 8/1/13 (AMBAC Insured) Aaa 3,900,000 4,192,500
Contra Costa County Ctfs. of Prtn.
(Merrithew Mem. Hosp.):
0% 11/1/07 A1 4,615,000 2,099,825
0% 11/1/13 A1 6,805,000 2,032,994
Desert Hosp. Rev. Ctfs. of Prtn.
Series 1992, 8.164% 7/28/20
(CGIC Insured) INFL (c) Aaa 4,000,000 4,135,000
Duarte Ctfs of Prtn. (City of Hope Nat'l.
Med. Ctr.) 6.25% 4/1/23 Baa1 3,000,000 2,662,500
Duarte Redev. Agcy. Tax Allocation (Huntington
Drive-PH 2 Redev. Proj.) 9.25% 11/1/10,
(Pre-Refunded to 11/1/95 @ 102) (d) - 1,640,000 1,722,000
East Bay Muni. Util. Dist. Wtr. Sys. Rev. Rfdg.
Sub. 5% 6/1/10 (MBIA Insured) Aaa 1,500,000 1,353,750
Eastern Muni. Wtr. Dist. Wtr. & Swr. Rev.
Ctfs. of Prtn. 6.75% 7/1/12 (FGIC Insured) Aaa 1,600,000 1,746,000
Fontana Redev. Agcy. Tax Allocation Rfdg.
(Jurupa Hills Redev. Proj.):
Series A, 7% 10/1/14 BBB+ 2,300,000 2,291,375
Series 1992 A, 7.10% 10/1/23 BBB 2,495,000 2,485,644
Foster City Pub. Fing. Auth. Rev.
(Foster City Commty. Proj.) Series A:
6% 9/1/06 A- 1,355,000 1,321,125
6% 9/1/07 A- 1,440,000 1,384,200
6% 9/1/13 A- 3,925,000 3,655,156
Fountain Valley Agcy. for Commty. Dev.
Tax Allocation (Ind. Area Redev. Proj.)
9.10% 1/1/15 BBB+ 1,745,000 1,788,625
Industry Urban Ind. Dev. Agcy. Rev.
(Civic Recreational Proj.):
Crossover Rfdg. #1-A, 7.375% 5/1/12 - 11,250,000 11,728,125
#1-B, 7.375% 5/1/15 - 245,000 255,412
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Intermodal Container Transfer Facs. Joint Pwr.
Auth. Rev. Rfdg. Series 1989 A, 7.70%
11/1/14, LOC Industrial Bank of Japan
(BIG Insured) Aa3 $ 1,500,000 $ 1,571,250
Irvine Ranch Wtr. Dist. Joint Pwr. Agcy.
Local Pool Rev.:
Series I, 7.875% 2/15/23 A+ 390,000 407,062
Series II, 8.25% 8/15/23 A+ 15,675,000 16,654,687
Kern County High School Dist. Gen. Oblig.
7% 8/1/09 A1 1,090,000 1,188,100
Livermore Redev. Agcy. Tax Allocation Rev.
(Livermore Redev. Proj.) Series A,
7.75% 8/1/09 - 1,000,000 1,026,250
Local Gov't. Fin. Auth. Rev.
(Oakland Central Dist.) 0% 9/1/08 Aaa 3,710,000 1,660,225
Loma Linda Hosp. Rev. (Loma Linda Univ. Med.
Ctr Proj.) Series B, 9% 12/1/12 BBB 1,550,000 1,631,375
Los Angeles Ctfs. of Prtn.
(Health Facs. Construction Loan)
(Bay Harbor Hosp.) 7.30% 4/1/20 A 2,000,000 2,075,000
Los Angeles County Ctfs. of Prtn.
(Cap. Appreciation):
(Correctional Facs.):
0% 9/1/12 (MBIA Insured) Aaa 3,575,000 1,228,906
0% 9/1/10 (MBIA Insured) Aaa 3,770,000 1,484,438
(Disney Parking Proj.):
0% 9/1/08 A 2,030,000 875,438
0% 9/1/10 A 2,980,000 1,076,525
0% 3/1/11 A 3,950,000 1,357,812
0% 3/1/13 A 2,835,000 854,044
0% 9/1/15 A 3,800,000 959,500
0% 9/1/17 A 3,370,000 728,762
0% 3/1/18 A 3,000,000 626,250
0% 3/1/20 A 1,690,000 304,200
0% 9/1/20 A 2,500,000 434,375
Los Angeles Hbr. Dept. Rev. 7.60% 10/1/18
(Escrowed to Maturity) (d) Aa 5,540,000 6,052,450
Los Angeles Wastewtr. Sys. Rev. Rfdg. Series D,
5.20% 11/1/21 (FGIC Insured) Aaa 1,935,000 1,688,287
Metropolitan Wtr. Dist. Southern California
Crossover Rfdg. Series A-1, 5.50% 3/1/11
(Escrowed to 3/1/99) (d) Aaa 2,000,000 1,887,500
Metropolitan Wtr. Dist. Southern California
Wtrwks. Rev.:
Rfdg. Series A, 5.75% 7/1/21 Aa 2,250,000 2,129,062
5.75% 7/1/09 Aa 3,000,000 2,966,250
5.75% 8/12/18 Aa 5,000,000 4,800,000
7.811% 8/5/22 INFL (c) Aa 1,300,000 1,222,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Modesto Irrigation Dist. Ctfs. of Prtn.
(Geysers Geothermal Pwr. Proj.)
Series 1986 A, 5% 10/1/17 A1 $ 5,000,000 $ 4,118,750
Modesto Irrigation Dist. Ctfs. of Prtn.
Rfdg. & Cap. Impts. Series A:
0% 10/1/05 (MBIA Insured) Aaa 2,140,000 1,174,325
0% 10/1/08 (MBIA Insured) Aaa 2,270,000 1,010,150
Northern California Pwr. Agcy. Pub. Pwr. Rev.:
Rfdg. (Geothermal Proj. #3) Series A:
5.80% 7/1/09 A 1,000,000 948,750
5.85% 7/1/10 A 1,000,000 947,500
7.50% 7/1/23 (AMBAC Insured)
(Pre-Refunded to 7/1/21 @ 100) (d) Aaa 1,355,000 1,600,594
Northern California Transmission Rev.
(Ore Trans. Proj.) Series A,
7% 5/1/13 (MBIA Insured) Aaa 7,000,000 7,752,500
Norwalk Redev. Agcy. Tax Allocation
(Norwalk Redev. Proj. #1) 7.15%
12/1/15 - 2,500,000 2,553,125
Oakland Ctfs. of Prtn. Rfdg. (Oakland
Museum) Series A, 0% 4/1/07
(AMBAC Insured) Aaa 2,750,000 1,354,375
Oakland Redev. Agcy. Rfdg. Central Dist.
Redev. (Sr. Tax Allocation) 5.50% 2/1/14
(AMBAC Insured) Aaa 2,400,000 2,238,000
Ontario Redev. Fing. Auth. Rev. (Cap.
Appreciation Proj. #1) (Ctr. City)
0% 8/1/10 (MBIA Insured) Aaa 3,255,000 1,289,794
Orange County Dev. Agcy. Tax Allocation
(Santa Ana Heights Proj.) 6.125% 9/1/23 Caa 2,500,000 1,925,000
Orange County Local Trans. Auth. Sales Tax
Rev. First Series-Measure M, 6% 2/15/08
(AMBAC Insured) Aaa 1,250,000 1,273,438
Palm Desert Fing. Auth. Tax Allocation
8.255% 4/1/22 (MBIA Insured) INFL (c) Aaa 3,000,000 3,138,750
Palm Springs Ctfs. of Prtn. (Muni. Golf Course
Expansion Proj.) 7.40% 11/1/18 BBB+ 1,750,000 1,789,375
Palomar Pomerado Health System Rev.
4.75% 11/1/23 (MBIA Insured) Aaa 4,100,000 3,259,500
Pasadena Ctfs. of Prtn. Rfdg. (Old Pasadena
Pkg. Facs. Proj.) 6.25% 1/1/18 A1 3,600,000 3,555,000
Placer County Wtr. Agcy. Rev. (Middle Fork Proj.)
Series A, 3.75% 7/1/12 A 8,830,000 6,545,238
Pleasanton Joint Pwrs. Fing. Auth. Reassessment
Series A:
5.80% 9/2/02 Baa 2,500,000 2,496,875
6.15% 9/2/12 Baa 2,935,000 2,824,938
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Port Oakland Port Rev. Rfdg.
(Cap. Appreciation) Series F:
0% 11/1/06 (MBIA Insured) Aaa $ 1,990,000 $ 1,014,900
0% 11/1/07 (MBIA Insured) Aaa 4,250,000 2,024,063
0% 11/1/08 (MBIA Insured) Aaa 1,770,000 783,225
Poway Redev. Agcy. Tax Allocation (Parguay
Redev. Proj.) 5.67% 12/15/14 (FGIC Insured) Aaa 7,400,000 7,104,000
Rancho Mirage Joint Pwrs. Fing. Auth. Ctfs. of Prtn.
(Eisenhower Mem. Hosp.) 7% 3/1/22 A 3,300,000 3,304,125
Riverside County Asset Leasing Corp. Leasehold
Rev. (Riverside County Hosp. Proj.)
Series A, 6.50% 6/1/12 A 7,000,000 6,932,500
Riverside County Ctfs. of Prtn.
(Air Force Village West, Inc.) Series A:
Rfdg. 8.125% 6/15/20 - 5,850,000 5,937,750
8.125% 6/15/12 - 2,600,000 2,639,000
Riverside Unified School Dist. Ctfs. of Prtn.
(Cap. Appreciation Land Acquisition Proj.)
Series B, 0% 9/1/26 (FSA Insured) (f) Aaa 1,940,000 1,593,225
Sacramento Fing. Auth. Lease Rev. Rfdg. Series A,
5.375% 11/1/14 (AMBAC Insured) Aaa 2,225,000 2,049,781
Sacramento Fing. Auth. Rev. Tax Allocation
(Cap. Appreciation) Series B:
0% 11/1/13 (MBIA Insured) Aaa 500,000 158,750
0% 11/1/15 (MBIA Insured) Aaa 5,695,000 1,580,362
Sacramento Muni. Util. Dist. Elec. Rev.:
Rfdg. Series G, 6.50% 9/1/13
(MBIA Insured) Aaa 2,100,000 2,220,750
4.81% 11/15/08 (FGIC Insured) Aaa 7,000,000 5,923,750
8.311% 8/15/18 (FGIC Insured) INFL (c) Aaa 1,750,000 1,806,875
San Bernardino County Ctfs. of Prtn.:
(Cap. Facs. Proj.) Series B, 6.875% 8/1/24
(Escrowed to Maturity) (d)(e) Baa1 2,500,000 2,759,375
(Med. Ctr. Fing. Proj.):
5.50% 8/1/17 Baa1 6,500,000 5,419,375
5.50% 8/1/22 Baa1 5,500,000 4,489,375
San Diego County Wtr. Auth. Ctfs. of Prtn.
5.632% 4/25/07 (FGIC Insured) Aaa 2,500,000 2,496,875
San Diego Multi-Family Hsg. Rev. (Island
Gardens Apts. Proj.) Series B (GNMA Coll.)
9.50% 10/20/20, LOC Swiss Bank AAA 1,585,000 1,634,531
San Francisco Bay Area Rapid Transit Dist.
Sales Tax Rev. Rfdg. 6.75% 7/1/10
(AMBAC Insured) Aaa 1,500,000 1,638,750
San Francisco City & County Redev. Agcy.
7.75% 9/1/06 - 9,000,000 9,292,500
San Francisco City & County Redev. Fing. Auth.
Tax Allocation Rev.:
Rfdg. (San Francisco Redev. Proj.)
Series B, 5% 8/1/15 (MBIA Insured) Aaa 2,000,000 1,730,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
San Francisco City & County Redev. Fing. Auth.
Tax Allocation Rev.: - continued
Series A:
0% 8/1/06 (FGIC Insured) Aaa $ 1,035,000 $ 535,613
0% 8/1/07 (FGIC Insured) Aaa 1,085,000 523,513
0% 8/1/08 (FGIC Insured) Aaa 1,085,000 489,606
0% 8/1/09 (FGIC Insured) Aaa 1,085,000 459,769
0% 8/1/10 (FGIC Insured) Aaa 1,085,000 429,931
San Joaquin Hills Trans. Corridor Agcy. Toll
Road Rev. (Sr. Lien):
0% 1/1/05 - 2,500,000 1,584,375
0% 1/1/07 - 3,000,000 1,897,500
San Jose Redev. Agcy. Tax Allocation
(Merged Area Redev. Proj.)
5% 8/1/20 (MBIA Insured) Aaa 2,530,000 2,150,500
Santa Ana Commty. Redev. Agcy.
Tax Allocation Rfdg. Series B, 7.375%
9/1/09 BBB+ 5,000,000 5,037,500
Santa Clara Ctfs. of Prtn. Rfdg. Series A,
4.75% 2/1/14 (MBIA Insured) Aaa 1,250,000 1,045,313
Santa Clara Elec. Rev. Series B,
0% 7/1/06 (MBIA Insured) Aaa 2,080,000 1,081,600
Santa Clara Fing. Auth. Lease Rev.
(VMC Facs. Replacement Proj.) Series A,
7.75% 11/15/09 (AMBAC Insured) Aaa 3,725,000 4,428,094
Santa Margarita/Dana Point Auth. Rev.
(Impt. Dist. 1, 2-2A & 8) Series A:
Rfdg. 7.25% 8/1/12 (MBIA Insured) Aaa 1,865,000 2,121,438
7.25% 8/1/07 (MBIA Insured) Aaa 2,200,000 2,513,500
Santa Monica Rev. (Family YMCA Proj.)
9.50% 12/1/05, LOC Bank of Tokyo (e) - 2,750,000 2,873,750
Sequoia Hosp. Dist. Rev. Rfdg.:
5.375% 8/15/13 Baa1 4,170,000 3,461,100
5.375% 8/15/23 Baa1 8,250,000 6,496,875
South Orange County Pub. Fin. Auth.
Spl. Tax Rev.:
(Foothill Area) Series C,
7.50% 8/15/06 (FGIC Insured) Aaa 2,000,000 2,330,000
(Sr. Lien) Series A,
7% 9/1/09 (MBIA Insured) Aaa 3,000,000 3,341,250
Southern California Pub. Pwr. Auth. Pwr.
Proj. Rev.:
Rfdg. (Mead Adelanto Proj.) Series A,
4.75% 7/1/16 (AMBAC Insured) Aaa 2,000,000 1,647,500
(Multiple Projs.):
6.75% 7/1/10 A 1,400,000 1,489,250
6.75% 7/1/11 A 4,000,000 4,245,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Sulphur Springs Unified School Dist. Series A:
0% 9/1/07 (MBIA Insured) Aaa $ 4,445,000 $ 2,133,600
0% 9/1/09 (MBIA Insured) Aaa 2,485,000 1,046,806
0% 9/1/11 (MBIA Insured) Aaa 1,830,000 683,963
Upland Ctfs. of Prtn.
(San Antonio Commty. Hosp.):
5.25% 1/1/08 A 1,850,000 1,644,188
5.25% 1/1/13 A 5,500,000 4,626,875
5% 1/1/18 A 2,000,000 1,577,500
Vallejo Ctfs. of Prtn.
(Marine World Foundation Proj.):
7.80% 2/1/98 - 1,455,000 1,500,469
8.10% 2/1/21 - 3,040,000 3,154,000
West & Central Basin Fing. Auth.
(West Basin Proj.) Series A,
5% 8/1/10 (AMBAC Insured) Aaa 3,000,000 2,696,250
West Covina Ctfs. of Prtn.
(Queen of the Valley Hosp.) 6.50%
8/15/24 A 1,100,000 1,050,500
Western Placer Unified School Dist. Unltd. Tax
Series A:
0% 8/1/12 (FGIC Insured) Aaa 1,720,000 582,650
0% 8/1/13 (FGIC Insured) Aaa 1,855,000 586,644
0% 8/1/14 (FGIC Insured) Aaa 2,005,000 593,981
0% 8/1/15 (FGIC Insured) Aaa 2,165,000 603,494
430,861,175
PUERTO RICO - 0.6%
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Rev. Rfdg. Series W, 5.50%
7/1/13 Baa1 2,875,000 2,655,781
U.S. VIRGIN ISLANDS - 0.3%
Virgin Islands Pub. Fin. Auth. Rev. Series A,
7.25% 10/1/18 - 1,500,000 1,546,875
GUAM - 0.4%
Guam Arpt. Auth. Rev. Series A,
6.50% 10/1/23 BBB 1,700,000 1,683,000
TOTAL MUNICIPAL BONDS
(Cost $436,623,657) 436,746,831
MUNICIPAL NOTES (A) - 6.0%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - 6.0%
Anaheim Ctfs. of Prtn. Series 1993,
3.90% (AMBAC Insured) VRDN VMIG 1 $ 1,600,000 $ 1,600,000
California Health Facs. Fin. Auth. Rev., VRDN:
Rfdg. (St. Joseph Health Sys.) Series 1985 A,
3.70%, LOC Toronto-Dominion Bank VMIG 1 1,500,000 1,500,000
(Sutter Health) Series 1990 A,
3.70%, LOC Morgan Guaranty VMIG 1 2,600,000 2,600,000
California Poll. Cont. Fing. Auth. Poll. Cont. Rev.,
VRDN:
(Shell Oil Co.) Series 1991 A, 3.70% A-1+ 3,400,000 3,400,000
(Southern California Edison Co.)
Series 1986 D, 4% VMIG 1 1,500,000 1,500,000
Los Angeles County Metropolitan Trans.
Auth. Rev., Series 1993 A, 3.90%
(MBIA Insured), VRDN VMIG 1 2,000,000 2,000,000
Southern California Pub. Pwr. Auth. Rev.
(Transmission Proj.) Series 1991, 3.70%
(AMBAC Insured) LOC Swiss Bank,
VRDN VMIG 1 15,400,000 15,400,000
TOTAL MUNICIPAL NOTES
(Cost $28,000,000) 28,000,000
OTHER SECURITIES - 0.0%
CALIFORNIA - 0.0%
Riverside County Asset Leasing Corp.
Leasehold Rev. (Riverside County Hosp.)
Series A (Call Rights) 6.50% 6/1/12
(Cost $59,950) - 1,100 $ 122,375
TOTAL INVESTMENTS - 100%
(Cost $464,683,607) $ 464,869,206
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SOLD
165 Muni Bond Mar. 1995 $ 14,963,438 $ (796,403)
THE VALUE OF FUTURES CONTRACTS SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 3.2%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(c) Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate. The price will be more
volatile than the price of a comparable fixed rate security.
(d) Security collateralized by an amount sufficient to pay interest and
principal.
(e) A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $3,252,500.
(f) Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
(g) Issuer filed for protection under the Federal Bankruptcy Code or is in
default of interest payment. The state of California has assumed the
interest payments.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 55.9% AAA, AA, A 71.9%
Baa 9.5% BBB 6.1%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.4% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 9.7%. FMR has
determined that unrated debt securities that are lower quality account for
4.4% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Health Care 24.6%
Special Tax 16.6
Lease Revenue 16.0
Electric Revenue 11.8
Others
(individually less than 10%) 31.0
TOTAL 100.0%
INCOME TAX INFORMATION
At February 28, 1995 the aggregate cost of investment securities for income
tax purposes was $464,698,268. Net unrealized appreciation aggregated
$170,938, of which $15,404,375 related to appreciated investment securities
and $15,233,437 related to depreciated investment securities.
At February 28, 1995 the fund had a capital loss carryforward of
approximately $2,269,893 which will expire on February 28, 2003.
The fund intends to elect to defer to its fiscal year ending February 28,
1996, $5,288,702 of losses recognized during the period November 1, 1994 to
February 28, 1995.
At February 28, 1995 the fund was required to defer $3,305,809 of losses on
futures contracts.
FIDELITY CALIFORNIA TAX-FREE HIGH YIELD PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 28, 1995
6.ASSETS 7. 8.
9.Investment in securities, at value (cost $464,683,607) 10. $ 464,869,206
- - See accompanying schedule
11.Cash 12. 32,494
13.Receivable for investments sold 14. 14,906,780
15.Interest receivable 16. 6,124,779
17. 18.TOTAL ASSETS 19. 485,933,259
20.LIABILITIES 21. 22.
23.Payable for investments purchased $ 8,057,140 24.
25.Dividends payable 489,545 26.
27.Accrued management fee 157,783 28.
29.Payable for daily variation on futures contracts 66,769 30.
31.Other payables and accrued expenses 118,338 32.
33. 34.TOTAL LIABILITIES 35. 8,889,575
36.37.NET ASSETS 38. $ 477,043,684
39.Net Assets consist of: 40. 41.
42.Paid in capital 43. $ 487,737,201
44.Accumulated undistributed net realized gain (loss) on 45. (10,082,713)
investments
46.Net unrealized appreciation (depreciation) on 47. (610,804)
investments
48.49.NET ASSETS, for 42,889,800 shares outstanding 50. $ 477,043,684
51.52.NET ASSET VALUE, offering price and redemption 53. $11.12
price per share ($477,043,684 (divided by) 42,889,800 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED FEBRUARY 28, 1995
54.55.INTEREST INCOME 56. $ 33,436,078
57.EXPENSES 58. 59.
60.Management fee $ 2,030,213 61.
62.Transfer agent, accounting and custodian fees and 697,019 63.
expenses
64.Non-interested trustees' compensation 12,441 65.
66.Registration fees 749 67.
68.Audit 27,521 69.
70.Legal 1,020 71.
72.Reports to shareholders 6,278 73.
74. 75.TOTAL EXPENSES 76. 2,775,241
77.78.NET INTEREST INCOME 79. 30,660,837
80.REALIZED AND UNREALIZED GAIN (LOSS) 82. 83.
81.Net realized gain (loss) on:
84. Investment securities (2,397,278) 85.
86. Futures contracts (994,613) (3,391,891)
87.Change in net unrealized appreciation (depreciation) 88. 89.
on:
90. Investment securities (36,330,602) 91.
92. Futures contracts (801,124) (37,131,726)
93.94.NET GAIN (LOSS) 95. (40,523,617)
96.97.NET INCREASE (DECREASE) IN NET ASSETS 98. $ (9,862,780)
RESULTING FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED FEBRUARY 28,
1995 1994
99.INCREASE (DECREASE) IN NET ASSETS
100.Operations $ 30,660,837 $ 34,009,274
Net interest income
101. Net realized gain (loss) (3,391,891) 24,914,674
102. Change in net unrealized appreciation (depreciation) (37,131,726) (27,806,838)
103. (9,862,780) 31,117,110
104.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
105.Distributions to shareholders: (30,660,837) (34,009,274)
From net interest income
106. From net realized gain (6,907,583) (12,686,288)
107. 108.TOTAL DISTRIBUTIONS (37,568,420) (46,695,562)
109.Share transactions 88,981,948 155,444,832
Net proceeds from sales of shares
110. Reinvestment of distributions 27,201,828 33,996,332
111. Cost of shares redeemed (166,997,663) (185,364,588)
112. (50,813,887) 4,076,576
Net increase (decrease) in net assets resulting from
share transactions
113. (98,245,087) (11,501,876)
114.TOTAL INCREASE (DECREASE) IN NET ASSETS
115.NET ASSETS 116. 117.
118. Beginning of period 575,288,771 586,790,647
119. End of period $ 477,043,684 $ 575,288,771
120.OTHER INFORMATION 122. 123.
121.Shares
124. Sold 8,082,007 12,515,698
125. Issued in reinvestment of distributions 2,459,962 2,749,174
126. Redeemed (15,215,484) (14,926,974)
127. Net increase (decrease) (4,673,515) 337,898
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED FEBRUARY 28, TEN MONTHS YEARS ENDED APRIL 30,
ENDED
FEBRUARY 28,
1995 1994 1993 1992 1991
128.SELECTED PER-SHARE DATA
129.Net asset value, $ 12.100 $ 12.430 $ 11.540 $ 11.300 $ 10.940
beginning of
period
130.Income from .685 .719 .611 .744 .752
Investment
Operations
Net interest income
131. Net realized (.830) (.060) .890 .240 .360
and unrealized gain
(loss)
132. Total from (.145) .659 1.501 .984 1.112
investment
operations
133.Less (.685) (.719) (.611) (.744) (.752)
Distributions
From net interest
income
134. From net (.150) (.270) - - -
realized gain on
investments
135. Total (.835) (.989) (.611) (.744) (.752)
distributions
136.Net asset value, $ 11.120 $ 12.100 $ 12.430 $ 11.540 $ 11.300
end of period
137.TOTAL RETURN B -0.91% 5.41% 13.40% 8.94% 10.44%
138.RATIOS AND SUPPLEMENTAL
DATA
139.Net assets, $ 477,044 $ 575,289 $ 586,791 $ 529,445 $ 523,590
end of period
(000 omitted)
140.Ratio of .56% .57% .60%A .59% .58%
expenses
to average net
assets
141.Ratio of net 6.16% 5.78% 6.17%A 6.52% 6.71%
interest income to
average net assets
142.Portfolio turnover 29% 44% 32%A 23% 15%
rate
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIDELITY CALIFORNIA TAX-FREE INSURED PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value). You can also look at the fund's income to
measure performance. If Fidelity had not reimbursed certain fund expenses
during the periods shown, the total returns and dividends would have been
lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
California Tax-Free Insured -1.30% 41.54% 70.27%
Lehman Brothers Municipal Bond Index 1.88% 46.94% n/a
Average California Insured
Municipal Bond Fund 0.20% 45.23% n/a
Consumer Price Index 2.86% 17.89% 36.93%
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 September 18,
1986. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, the value of your investment would be $1,050. You can
compare the fund's returns to the performance of the Lehman Brothers
Municipal Bond Index - a broad gauge of the municipal bond market. To
measure how the fund's performance stacked up against its peers, you can
compare it to the average California insured municipal bond fund, which
reflects the performance of 21 California insured municipal bond funds with
similar objectives tracked by Lipper Analytical Services during the period
covered by this report. Both benchmarks include reinvested dividends and
capital gains, if any. Comparing the fund's performance to the consumer
price index (CPI) helps show how your fund did compared to inflation. (The
CPI returns begin on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
California Tax-Free Insured -1.30% 7.20% 6.50%
Lehman Brothers Municipal Bond Index 1.88% 8.00% n/a
Average California Insured
Municipal Bond Fund 0.20% 7.75% n/a
Consumer Price Index 2.86% 3.35% 3.80%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had achieved that return
by performing at a constant rate each year.
$10,000 OVER LIFE OF FUND
Cal Free Insured (40Municipal Bond Index
09/30/86 10000.00 10000.00
10/31/86 10123.71 10172.70
11/30/86 10256.03 10374.22
12/31/86 10317.83 10345.59
01/31/87 10603.31 10657.09
02/28/87 10604.78 10709.53
03/31/87 10513.45 10596.01
04/30/87 9640.19 10064.30
05/31/87 9517.05 10014.38
06/30/87 9640.71 10308.40
07/31/87 9744.96 10413.55
08/31/87 9799.01 10436.98
09/30/87 9216.28 10052.17
10/31/87 9475.91 10087.75
11/30/87 9702.92 10351.14
12/31/87 9855.54 10501.34
01/31/88 10443.19 10875.39
02/29/88 10585.54 10990.35
03/31/88 10158.73 10862.31
04/30/88 10215.69 10944.86
05/31/88 10227.01 10913.23
06/30/88 10391.86 11072.89
07/31/88 10423.97 11145.09
08/31/88 10491.94 11154.90
09/30/88 10696.80 11356.80
10/31/88 11006.00 11557.25
11/30/88 10859.52 11451.38
12/31/88 10999.82 11568.53
01/31/89 11198.36 11807.77
02/28/89 11060.27 11673.04
03/31/89 11063.14 11645.14
04/30/89 11360.28 11921.60
05/31/89 11588.22 12169.21
06/30/89 11709.08 12334.47
07/31/89 11830.69 12502.34
08/31/89 11663.09 12379.94
09/30/89 11677.91 12342.80
10/31/89 11761.12 12493.38
11/30/89 11946.84 12712.02
12/31/89 11963.78 12816.26
01/31/90 11852.69 12756.02
02/28/90 12041.01 12869.55
03/31/90 12032.82 12873.41
04/30/90 11831.86 12780.72
05/31/90 12136.60 13059.34
06/30/90 12251.80 13174.26
07/31/90 12443.18 13367.93
08/31/90 12238.67 13174.09
09/30/90 12279.77 13182.00
10/31/90 12475.39 13420.59
11/30/90 12762.40 13690.34
12/31/90 12803.27 13750.58
01/31/91 12895.57 13934.84
02/28/91 12920.79 14056.07
03/31/91 12921.08 14061.69
04/30/91 13094.04 14248.71
05/31/91 13228.26 14375.53
06/30/91 13201.36 14361.15
07/31/91 13390.41 14536.36
08/31/91 13525.25 14728.24
09/30/91 13718.24 14919.71
10/31/91 13911.62 15053.98
11/30/91 13925.98 15096.13
12/31/91 14206.61 15420.70
01/31/92 14265.69 15456.17
02/29/92 14263.38 15460.81
03/31/92 14280.07 15466.99
04/30/92 14421.86 15604.65
05/31/92 14609.32 15788.78
06/30/92 14865.11 16054.03
07/31/92 15355.50 16535.65
08/31/92 15067.00 16373.60
09/30/92 15167.22 16480.03
10/31/92 14817.19 16318.53
11/30/92 15241.60 16610.63
12/31/92 15507.07 16780.06
01/31/93 15684.79 16974.71
02/28/93 16510.39 17589.19
03/31/93 16288.64 17402.75
04/30/93 16454.83 17578.51
05/31/93 16533.51 17676.95
06/30/93 16851.43 17972.16
07/31/93 16807.86 17995.52
08/31/93 17235.80 18369.83
09/30/93 17447.89 18579.25
10/31/93 17462.71 18614.55
11/30/93 17209.68 18450.74
12/31/93 17650.01 18840.05
01/31/94 17870.43 19054.82
02/28/94 17267.64 18561.31
03/31/94 16270.06 17805.86
04/30/94 16363.49 17957.21
05/31/94 16507.01 18113.44
06/30/94 16299.03 18008.38
07/31/94 16659.92 18337.93
08/31/94 16688.04 18402.12
09/30/94 16343.40 18131.60
10/31/94 15933.83 17808.86
11/30/94 15521.37 17486.52
12/31/94 15842.45 17871.23
01/31/95 16471.80 18382.34
02/28/95 17043.44 18917.27
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
California Tax-Free Insured Portfolio on September 30, 1986, shortly after
the fund started. As the chart shows, by February 28, 1995, the value of
your investment would have grown to $17,043 - a 70.43% increase on your
initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond Index did over the same period. With dividends reinvested,
the same $10,000 would have grown to $18,917- a 89.17% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
YEARS ENDED FEBRUARY 28,
1995 1994 1993 1992 1991
Dividend returns 5.50% 5.35% 6.43% 6.48% 6.58%
Capital appreciation
returns -6.80% -0.76% 9.32% 3.91% 0.73%
Total returns -1.30% 4.59% 15.75% 10.39% 7.31%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested.
DIVIDENDS AND YIELD
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED FEBRUARY 28, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 4.14(cents) 27.61(cents) 55.76(cents)
Annualized dividend rate 5.55% 5.90% 5.73%
30-day annualized yield 5.49% - -
30-day annualized tax-equivalent yield 9.64% - -
</TABLE>
DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $9.73 over
the past month, $9.44 over the past six months and $9.73 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 43.04% combined effective 1995 federal and state tax bracket.
FIDELITY CALIFORNIA TAX-FREE INSURED PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
A municipal bond market rally
beginning in mid-November
helped to counteract the negative
effects of several months of
sharply rising interest rates. For
the 12 months ended February
28, 1995, the Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
had a total return of 1.88%. By
comparison, the Lehman Brothers
Aggregate Bond Index - a proxy
of investment-grade taxable
bonds - returned 1.78%. Interest
rate increases had caused a
significant downturn in all U.S.
bond markets through the first
nine of the 12 months ended
February 28, 1995. From March
1994 through February 1995, the
Federal Reserve Board raised the
federal funds rate - the rate
banks charge each other for
overnight loans - six times,
increasing the rate by 2.75% to
6.00%. These actions sparked
inflation fears, leading to a sharp
sell-off in all bond markets. The
municipal market saw further
instability from September through
mid-November, as investors sold
bonds to realize losses for tax
purposes. From mid-November
through the end of February, the
municipal market rebounded as
there were indications that
Federal Reserve Board rate hikes
were having their intended effect
of slowing the economy and
reducing the risk of inflation. In
addition, the recent rally was
helped by an abatement of
tax-loss selling and a decrease in
the supply of new municipal
bonds.
NOTE TO SHAREHOLDERS:
On March 27, 1995, Jonathan Short
(left) became portfolio manager of
Fidelity California Tax-Free Insured Portfolio. The following is an
interview with John Haley - who managed the fund during the period covered
by this report - with some comments from Jon Short on his outlook and
strategy:
Photo of
JOHN SHORT
Photo of
JOHN HALEY
Q. JACK, HOW HAS THE FUND PERFORMED?
J.H. Against the backdrop of rising interest rates, the municipal bond
market and the fund had a tough go of it over the past 12 months. For the
year ended February 28, 1995, the fund had a total return of -1.30%. That
compares to the average California insured tax-free bond fund, which
returned 0.20% for the same period, according to Lipper Analytical
Services.
Q. HOW DID CALIFORNIA INSURED BONDS PERFORM DURING THE PAST 12 MONTHS?
J.H. They turned in mixed results. It's worth remembering that municipal
bond insurance doesn't insulate a bond's price from declining. Rather,
insurance guarantees timely interest and principal payments by the issuer
and protects investors from losses in the event of an issuer's default.
This guarantee makes insured bonds highly desirable among some investors,
and as a result, the insured municipal market is very liquid. That means
that these bonds are easily traded. After the Federal Reserve started
raising short-term interest rates in February 1994, insured bonds were
among the first to be sold by investors because of that liquidity, and as a
result, they were among the market's worst performers. But after Orange
County declared bankruptcy, many investors - individual and institutional
alike - were concerned about the credit quality of some California issuers
and moved more toward insured bonds. As a result, they were among the
California municipal market's best performers during the last three months
of the period.
Q. TURNING BACK TO THE FUND, WHY WASN'T IT ABLE TO KEEP PACE WITH THE
AVERAGE?
J.H. The fund had a fairly large stake in bonds that are particularly
sensitive to interest rate movements. I'm specifically referring to
longer-term discount bonds - which sell below face value - and zero coupon
bonds. Discount and zero coupon bonds performed badly when interest rates
were rising and hurt the fund's performance. But when interest rates fell
and the market rallied in December, January and February, these bonds were
among the fund's top performers. Because the market has been fairly strong
recently, I've found opportunities to reduce the fund's holdings
in these bonds.
Q. IS THE FUND INVESTED IN ANY ORANGE COUNTY SECURITIES?
J.H. At the end of the period, the fund had no investments in uninsured
securities issued by Orange County. However, the fund has a less than 5%
stake in insured bonds issued by Orange County or municipalities which were
participants in the county's investment pool. Because these bonds are
insured, their principal and interest payments are guaranteed by a
municipal bond insurance agency. Finally, the fund had less than 1% of
investments in another bond which was affected by Orange County's
bankruptcy - the Orange County Development Agency. This bond carries
different ratings by the credit agencies; Caa by Moody's Investors Service
and BBB by Standard & Poor's. That split rating revolves around the
relationship between Orange County and the Development Agency. In my view,
the county and the Development Agency are two separate entities. As a
result, the Development Agency has pledged a distinct revenue flow to cover
interest and principal payments. After the period ended, the Development
Agency paid its scheduled debt service payment in full, which improved the
outlook for the bond.
Q. HOW HAVE YOU ALLOCATED THE FUND'S INVESTMENTS AMONG VARIOUS SECTORS?
J.H. Special tax bonds, backed by a special tax like a retail sales tax,
were the fund's largest sector concentration at 26.9% of investments. Lease
revenue bonds made up the fund's second largest sector concentration at
24.2% of investments on February 28, 1995. Those two sectors changed spots
from six months ago. Recently I've found selected opportunities in health
care bonds, raising the fund's stake in them to 12.5% of investments at the
end of the period, from 11.1% six months earlier.
Q. JON, HOW WILL YOU MANAGE THE FUND GOING FORWARD?
J.S. During the market's recent rally, credit spreads - the difference in
yields on bonds with various credit ratings - have narrowed. That means
that currently there is less incentive, in the form of extra income, to own
lower-quality bonds. But because I believe that the economy's growth rate
will slow over the next 12 months, I think there could be a widening of
credit spreads. If that happens, the prices of lower-quality bonds would
have to fall as their yields rose. As a result, I'll most likely continue
to decrease the fund's stake in lower-quality bonds, and increase its stake
in insured bonds.
FUND FACTS
GOAL: to provide high current
tax-free income for California
residents
START DATE: September 18,
1986
SIZE: as of February 28,
1995, more than $216 million
MANAGER: John Haley, 1989 -
March 1995; Jonathan Short,
starting March 27, 1995;
manager, Fidelity California
Tax-Free High Yield, Spartan
California Municipal High Yield
and Spartan California
Intermediate Municipal
Portfolios, since March 1995;
joined Fidelity in 1992
(checkmark)
JONATHAN SHORT ON HIS
INVESTMENT STRATEGY:
"I'll continue to focus on
tempering the fund's duration
- - which measures how
sensitive its share price is to
changes in interest rates. I'll
do that primarily by
de-emphasizing long-term
bonds with maturities of 20
years or more, and
emphasizing short- and
intermediate-term bonds - or
those with maturities in the
one- to 15-year range. And
because I believe that the
economy could start to
weaken, I expect to invest
less in lower- and
medium-quality
investment-grade bonds and
more in insured bonds."
(solid bullet) Inverse floaters, one of the
financial arrangements known
as derivatives, made up less
than 3% of the fund's
investments at the end of the
period. The yield on inverse
floaters rises as short-term
interest rates fall, and vice
versa. By using various
derivatives, the manager
hopes to achieve higher
levels of tax-exempt income
and increased flexibility in
managing the fund's overall
sensitivity to changes in
interest rates.Inverse floaters,
one of the financial
arrangements known as
derivatives, made up less
than 3% of the fund's
investments at the end of the
period. The yield on inverse
floaters rises as short-term
interest rates fall, and vice
versa. By using various
derivatives, the manager
hopes to achieve higher
levels of tax-exempt income
and increased flexibility in
managing the fund's overall
sensitivity to changes in
interest rates.
FIDELITY CALIFORNIA TAX-FREE INSURED PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF FEBRUARY 28, 1995
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO
Special Tax 26.9 25.3
Lease Revenue 24.2 29.0
Health Care 12.5 11.1
Electric Revenue 11.4 9.6
General Obligation 7.0 9.5
AVERAGE YEARS TO MATURITY AS OF FEBRUARY 28, 1995
6 MONTHS AGO
Years 18.5 20.6
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 FEBRUARY 28, 1995
6 MONTHS AGO
Years 9.1 11.3
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THE ABOVE EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF FEBRUARY 28, 1995 AS OF AUGUST 31, 1994
Aaa 67.8%
Aa, A 18.3%
Baa 6.3%
Caa 0.5%
Non-rated 0.5%
Short-term and other
investments 6.6%
Aaa 73.9%
Aa, A 15.5%
Baa 7.2%
Caa 0.0%
Non-rated 0.4%
Short-term and other
investments 3.0%
Row: 1, Col: 1, Value: 67.8
Row: 1, Col: 2, Value: 18.3
Row: 1, Col: 3, Value: 6.3
Row: 1, Col: 4, Value: 1.5
Row: 1, Col: 5, Value: 1.5
Row: 1, Col: 6, Value: 6.6
Row: 1, Col: 1, Value: 73.90000000000001
Row: 1, Col: 2, Value: 15.5
Row: 1, Col: 3, Value: 7.2
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 1.4
Row: 1, Col: 6, Value: 3.0
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
FIDELITY CALIFORNIA TAX-FREE INSURED PORTFOLIO
INVESTMENTS FEBRUARY 28, 1995
Showing Percentage of Total Value of Investments
MUNICIPAL BONDS - 93.4%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - 93.4%
Alameda County Ctfs. of Prtn. Rfdg.
(Santa Rita Jail Proj.):
5.375% 6/1/09 (MBIA Insured) Aaa $ 2,500,000 $ 2,371,875
5% 12/1/15 (MBIA Insured) Aaa 1,000,000 865,000
Anaheim Pub. Fing. Auth. Tax Allocation Rev. (Reg.
Rites) 8.432% 12/1/18 (MBIA Insured) INFL (c) Aaa 1,000,000 1,075,000
Antioch Area Pub. Facs. Fing. Agcy. Rfdg.
(Spl. Tax Commty. Facs. Dist. No. 1989-1)
5% 8/1/18 Aaa 8,795,000 7,519,725
Bay Area Gov't. Assoc. Rev. (Muni. Fing. Pool)
Series A, 8.05% 9/1/10 A 1,470,000 1,567,387
Burbank Redev. Agcy. Tax Allocation
(City Ctr. Redev. Proj.) Series A, 5% 12/1/15
(CGIC Insured) Aaa 4,000,000 3,415,000
California Edl. Facs. Auth. Rev. (Pooled Facs. Prog.)
Series 1987, 7.625% 11/1/12 (MBIA Insured) Aaa 1,000,000 1,070,000
California Gen. Oblig. Unltd. Tax 6% 9/1/03 A1 1,000,000 1,032,500
California Health Facs. Fing. Auth. Rev.:
(Children's Hosp.- San Diego)
Series A, 6.80% 7/1/02 (MBIA Insured) Aaa 1,855,000 2,005,718
(Children's Hosp.-San Francisco)
Series A, 7.50% 10/1/20 (MBIA Insured) Aaa 1,650,000 1,782,000
(Scripps Health)
Series A, 4.625% 10/1/13
(MBIA Insured) Aaa 1,345,000 1,102,900
California Hsg. Fin. Agcy. Rev. (Home Mtg.)
Series 1983 A, 0% 2/1/15 Aa 8,187,000 1,135,946
Series 1983 B, 0% 8/1/15 Aa 170,000 21,675
California Pub. Cap. Impt. Fing. Auth. Rev.
(Pooled Proj. ) Series B, 8.10% 3/1/18
(MBIA Insured) Aaa 2,920,000 3,091,550
California Pub. Wks. Board Lease Rev.:
Rfdg. (Dept. Corrections State Prisons)
Series A, 5% 12/1/19 (AMBAC Insured) Aaa 2,000,000 1,702,500
(California University Projs.)
Series B, 6.40% 12/1/09 A1 1,700,000 1,710,625
California Statewide Commty. Dev. Corp.
Rev. Ctfs. of Prtn.:
Rfdg. (Eskaton, Inc.) 5.875% 5/1/20 A 1,000,000 897,500
(Catholic Health Care West)
5.54% 7/1/13 (MBIA Insured) Aaa 2,000,000 1,885,000
(Cedars Hosp.) 5.125% 11/1/07
(MBIA Insured) Aaa 1,985,000 1,853,494
(Childrens Hosp.) 6% 6/1/11
(MBIA Insured) Aaa 1,700,000 1,704,250
(St. Joseph Health Sys.) 5.50% 7/1/23 Aa 1,000,000 873,750
(Sisters of Charity Leavenworth):
4.875% 12/1/10 Aa 1,000,000 846,250
5% 12/1/23 Aa 1,000,000 792,500
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Carson Redev. Agcy. Tax Allocation Rfdg.
(Redev. Proj. Area #1) 6.375%
10/1/12 Baa1 $ 1,000,000 $ 950,000
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. Rfdg.
(Wtr. Sys. Impt. Proj.) Series A:
7% 8/1/12 (MBIA Insured) Aaa 1,000,000 1,110,000
7% 8/1/13 (MBIA Insured) Aaa 1,580,000 1,749,850
Central California Joint Pwrs. Health Fing.
Auth. Ctfs. of Prtn. (Commty. Hosp.s of
Central California Proj.) 5.25% 2/1/13 A 2,000,000 1,680,000
Culver City Redev. Fin. Auth. Rev. Rfdg.
Tax Allocation:
5.50% 11/1/14 (AMBAC Insured) Aaa 4,000,000 3,720,000
4.60% 11/1/20 (AMBAC Insured) Aaa 1,000,000 787,500
Desert Hosp. Rev. Ctfs. of Prtn.
(Desert Hosp. Corp.) Series 1992,
8.164% 7/28/20 (CGIC Insured) INFL (c) Aaa 2,000,000 2,067,500
East Bay Muni. Util. Dist. Wtr. Sys. Rev. Rfdg.
5% 6/1/05 (MBIA Insured) Aaa 2,000,000 1,900,000
Eureka Unified School Dist. Ctfs. of Prtn.
(Cap. Appreciation): (f)
Series A, 0% 9/1/27 (FSA Insured) Aaa 660,000 621,225
Series B, 0% 9/1/27 (FSA Insured) Aaa 1,555,000 1,337,300
Fontana Redev. Agcy. Tax Allocation Rfdg.
(Jurupa Hills Redev. Proj.):
Series A, 7% 10/1/14 BBB+ 2,300,000 2,291,375
Series 1992 A, 7.10% 10/1/23 BBB 1,000,000 996,250
Foothill De Anza Commty. College Ctfs. of Prtn.
5.25% 9/1/21 (Connie Lee Insured) AAA 1,175,000 1,007,563
Grossmont Hosp. Dist. Rev. Series A,
8% 11/15/17 (MBIA Insured)
(Pre-Refunded to 11/15/97 @ 102) (d) Aaa 1,500,000 1,646,250
Irvine Ranch Wtr. Dist. Joint Pwr. Agcy
Local Pool Rev.:
Series I, 7.875% 2/15/23 A+ 3,850,000 4,018,438
Series II, 8.25% 8/15/23 A+ 3,000,000 3,187,500
Lemon Grove Commty. Dev. Agcy. Tax
Allocation Rev. (Lemon Grove Redev. Proj.)
6.90% 8/1/20 Baa 1,000,000 987,500
Local Gov't. Fin. Auth. Rev. (Oakland Cent. Dist.)
0% 9/1/09 (MBIA Insured) Aaa 3,565,000 1,501,756
Los Angeles Convention & Exhibition Ctr. Auth.
Lease Rev. Rfdg. Series A, 5.125% 8/15/13
(MBIA Insured) Aaa 3,000,000 2,677,500
Los Angeles County Ctfs. of Prtn.
(Cap. Appreciation):
(Correctional Facs.) 0% 9/1/13
(MBIA Insured) (e) Aaa 3,380,000 1,081,600
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Los Angeles County Ctfs. of Prtn.
(Cap. Appreciation): - continued
(Disney Parking Proj.):
0% 3/1/10 A $ 3,000,000 $ 1,117,500
0% 3/1/15 A 1,000,000 261,250
0% 3/1/16 A 5,615,000 1,354,619
0% 3/1/17 A 1,835,000 410,581
Los Angeles County Pub. Wks. Fing. Auth.
Lease Rev. (Mult. Cap. Facs. Proj. IV)
4.75% 12/1/13 (MBIA Insured) Aaa 10,000,000 8,400,000
M-S-R Pub. Pwr. Agcy. Rev. (San Juan Proj.)
Series D, 6.75% 7/1/20 (MBIA Insured) Aaa 2,500,000 2,715,625
Mesa Consolidated Wtr. Dist. Ctfs. of Prtn. (Cap.
Impt. Phase II) 7.625% 3/15/08
(AMBAC Insured) Aaa 1,000,000 1,081,250
Metropolitan Wtr. Dist. Southern California
Wtrwks. Rev. 5.75% 8/12/18 Aa 4,000,000 3,840,000
Modesto Ctfs. of Prtn. (Commty. Ctr. Refing. Proj.)
Series A, 5% 11/1/23 (AMBAC Insured) Aaa 2,500,000 2,106,250
Modesto Irrigation Dist. Ctfs. of Prtn. Rfdg. & Cap.
Impts. Series A, 0% 10/1/09 (MBIA Insured) Aaa 2,270,000 953,400
Moreno Valley Unified School Dist. Ctfs. of Prtn.
(Land Acquisition) 0% 9/1/11
(FSA Insured) (f) Aaa 2,350,000 1,900,563
Northern California Pwr. Agcy. Pub. Pwr. Rev.
7.50% 7/1/23 (AMBAC Insured)
(Pre-Refunded to 7/1/21 @ 100) (d) Aaa 1,300,000 1,535,625
Norwalk Redev. Agcy. Tax Allocation
(Norwalk Redev. Proj. #1) 7.15% 12/1/15 - 1,000,000 1,021,250
Oakland Redev. Agcy. Central Dist. Redev.:
Rfdg. (Sr. Tax Allocation) 5.50% 2/1/14
(AMBAC Insured) Aaa 3,000,000 2,797,500
(Sub. Tax Allocation) 5% 9/1/13
(MBIA Insured) Aaa 2,960,000 2,593,700
Orange County Dev. Agcy. Tax Allocation
(Santa Ana Heights Proj.) 6.125% 9/1/23 Caa 1,500,000 1,155,000
Palm Desert Fing. Auth. Tax Allocation
8.255% 4/1/22 (MBIA Insured) INFL (c) Aaa 1,750,000 1,830,938
Palomar Pomerado Health System Rev.
4.75% 11/1/23 (MBIA Insured) Aaa 1,500,000 1,192,500
Placer County Wtr. Agcy. Wtr. Rev. Ctfs. of Prtn.
(Phase 1 Cap. Impt. Projs.)
7.75% 7/1/18 (MBIA Insured)
(Pre-Refunded to 7/1/98 @ 102) (d) Aaa 1,000,000 1,216,250
Pleasanton Joint Pwrs. Fin. Auth. Reassessment
Series A, 6% 9/2/05 Baa 1,975,000 1,960,187
Poway Redev. Agcy. Tax Allocation (Parguay
Redev. Proj.) 5.67% 12/15/14
(FGIC Insured) Aaa 4,200,000 4,032,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Rancho Mirage Joint Pwrs. Fing. Auth. Ctfs. of
Prtn. (Eisenhower Mem. Hosp.) 7% 3/1/22 A $ 1,000,000 $ 1,001,250
Redding Elec. Sys. Rev. Ctfs. of Prtn.
(Cap. Appreciation) Series A:
0% 6/1/05 (FGIC Insured) Aaa 2,000,000 1,117,500
0% 6/1/06 (FGIC Insured) Aaa 1,730,000 903,925
0% 6/1/07 (FGIC Insured) Aaa 1,890,000 921,375
0% 6/1/08 (FGIC Insured) Aaa 1,300,000 589,875
Redondo Beach Redev. Agcy. Tax Allocation
(South Bay Ctr.) 8.625% 5/1/14
(FGIC Insured) Aaa 1,000,000 1,082,500
Richmond Redev. Agcy. Tax Allocation
Rdfg. (Harbour Redev. Proj.)
7% 7/1/09 (CGIC Insured) Aaa 1,750,000 1,892,187
Riverside County Asset Leasing Corp. Leasehold
Rev. (Riverside County Hosp. Proj.) Series A:
6.375% 6/1/09 (Detachable Call Option) A 2,000,000 1,975,000
6.50% 6/1/12 A 5,500,000 5,449,375
Riverside County Trans. Commission Sales Tax Rev.
Series A, 5.75% 6/1/09 (AMBAC Insured) Aaa 2,000,000 2,002,500
Riverside Unified School Dist. Ctfs. of Prtn.
(Cap. Appreciation Land Acquisition Proj.)
Series B, 0% 9/1/26 (FSA Insured) (f) Aaa 1,710,000 1,404,337
Sacramento Fing. Auth. Lease Rev. Rfdg.
Series A, 5.375% 11/1/14
(AMBAC Insured) Aaa 6,500,000 5,988,125
Sacramento Muni. Util. Dist. Elec. Rev.:
Rfdg. Series G, 6.50% 9/1/13
(MBIA Insured) (e) Aaa 7,000,000 7,402,500
4.81% 11/15/08 (FGIC Insured) Aaa 3,700,000 3,131,125
8.311% 8/15/18 (FGIC Insured) INFL (c) Aaa 1,000,000 1,032,500
San Bernadino County Ctfs. of Prtn.
(Med. Ctr. Fing. Proj.):
5.50% 8/1/17 Baa1 3,350,000 2,793,063
5.50% 8/1/22 Baa1 3,160,000 2,579,350
San Bernadino Redev. Agcy. Tax Allocation
Rfdg. (Southeast Ind. Park) 7.40% 3/1/14
(AMBAC Insured) Aaa 2,100,000 2,226,000
San Francisco City & County Redev. Fing. Auth.
Tax Allocation Rev. (San Francisco Redev. Proj.)
5.25% 8/1/17 (FGIC Insured) Aaa 1,500,000 1,333,125
San Jacinto Unified School Dist. Ctfs. of Prtn.,
Series B, 0% 9/1/26 (FSA Insured) (f) Aaa 1,585,000 1,454,238
San Joaquin County Ctfs. of Prtn.:
(Cap. Facs. Proj.):
Rfdg. 5% 11/15/09 (MBIA Insured) Aaa 1,000,000 903,750
5% 11/15/10 (MBIA Insured) Aaa 1,110,000 993,450
(Gen. Hosp. Proj.) 6.625% 9/1/20 A 2,500,000 2,465,625
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED)(C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
San Jose Redev. Agcy. Tax Allocation
(Merged Area Redev. Proj.):
6% 8/1/15 (MBIA Insured) Aaa $ 3,000,000 $ 2,988,750
5% 8/1/20 (MBIA Insured) Aaa 3,000,000 2,550,000
Santa Ana Commty. Redev. Agcy. Tax Allocation
Rfdg. (S. Main St. Redev.) 5.25% 9/1/13
(MBIA Insured) Aaa 3,000,000 2,730,000
Sequoia Hosp. Dist. Rev. Rfdg. 5.375% 8/15/13 Baa1 1,000,000 830,000
South Orange County Pub. Fin. Auth. Spl. Tax Rev.:
(Foothill Area) Series C, 7.50% 8/15/07
(FGIC Insured) Aaa 2,290,000 2,667,850
(Sr. Lien) Series A, 7% 9/1/09
(MBIA Insured) Aaa 2,000,000 2,227,500
Southern California Pub. Pwr. Auth. Pwr. Proj.
Rev. (San Juan Unit 3) Series A,
5.375% 1/1/10 (MBIA Insured) Aaa 4,000,000 3,780,000
Sulpher Springs Unified School Dist. Series A,
0% 9/1/08 (MBIA Insured) Aaa 2,000,000 900,000
Tahoe-Truckee Joint Union School Dist.
(Cap. Appreciation) Series A, 0% 9/1/10 Aaa 6,625,000 2,575,469
Torrance Hosp. Rev. (Little Co. of Mary Hosp.)
6.875% 7/1/15 A 1,445,000 1,473,900
Upland Ctfs. of Prtn. (San Antonio Commty.
Hosp.) 5% 1/1/18 A 1,000,000 788,750
Walnut Creek Ctfs. of Prtn. Rfdg. (John Muir
Med. Ctr.) 5% 2/15/16 (MBIA Insured) Aaa 3,250,000 2,790,937
West & Central Basin Fing. Auth. (West Basin
Proj.) Series A, 5% 8/1/10 (AMBAC Insured) Aaa 2,000,000 1,797,500
West Covina Ctfs. of Prtn. (Queen of the Valley
Hosp.) 6.50% 8/15/24 A 1,000,000 955,000
TOTAL MUNICIPAL SECURITIES
(Cost $202,997,446) 198,815,571
MUNICIPAL NOTES (A) - 6.6%
CALIFORNIA - 6.6%
Los Angeles County Metropolitan Trans. Auth.
Series 1993-A, 3.90% (MBIA Insured) VRDN VMIG 1 9,400,000 9,400,000
Los Angeles County Trans. Commission Sales Tax
Rev. Rfdg. Series 1992 A, 3.70% (FGIC Insured)
LOC Ind. Bank of Japan Ltd., VRDN VMIG 1 2,900,000 2,900,000
Southern California Pub. Pwr. Auth. Rev.
(Transmission Proj.) Series 1991, 3.70%
(AMBAC Insured) LOC Swiss Bank, VRDN VMIG 1 1,800,000 1,800,000
TOTAL MUNICIPAL NOTES
(Cost $14,100,000) 14,100,000
OTHER SECURITIES - 0.0%
CALIFORNIA - 0.0%
Riverside County Asset Leasing Corp.
Leasehold Rev. (Riverside County Hosp.)
Series A (Call Rights) 6.50% 6/1/12
(Cost $43,600) - 800 $ 89,000
TOTAL INVESTMENTS - 100%
(Cost $217,141,046) $ 213,004,571
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SOLD
155 Muni. Bond Mar. 1995 $ 14,056,563 $ (782,469)
THE VALUE OF FUTURES CONTRACTS SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 6.6%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(c) Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate. The price will be more
volatile than the price of a comparable fixed rate security.
(d) Security collateralized by an amount sufficient to pay interest and
principal.
(e) A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $4,254,100.
(f) Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 80.9% AAA, AA, A 86.3%
Baa 4.7% BBB 2.5%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.5% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.5%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Special Tax 26.9%
Lease Revenue 24.2
Health Care 12.5
Electric Revenue 11.4
Others
(individually less than 10%) 25.0
TOTAL 100.0%
INCOME TAX INFORMATION
At February 28, 1995, the aggregate cost of investment securities for
income tax purposes was $217,141,046. Net unrealized depreciation
aggregated $4,136,475, of which $4,231,891 related to appreciated
investment securities and $8,368,366 related to depreciated investment
securities.
At February 28, 1995 the fund had a capital loss carryforward of
approximately $1,010,908 which will expire on February 28, 2003.
The fund intends to elect to defer to its fiscal year ending February 28,
1996, $5,226,675 of losses recognized during the period November 1, 1994 to
February 28, 1995.
At February 28, 1995 the fund was required to defer $145,506 of losses on
futures contracts.
FIDELITY CALIFORNIA TAX-FREE INSURED PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 28, 1995
143.ASSETS 144. 145.
146.Investment in securities, at value (cost 147. $ 213,004,571
$217,141,046) - See accompanying schedule
148.Receivable for investments sold 149. 6,614,229
150.Interest receivable 151. 2,684,629
152. 153.TOTAL ASSETS 154. 222,303,429
155.LIABILITIES 156. 157.
158.Payable to custodian bank $ 21,006 159.
160.Payable for investments purchased 4,825,815 161.
162.Payable for fund shares redeemed 128,577 163.
164.Dividends payable 220,042 165.
166.Accrued management fee 71,232 167.
168.Payable for daily variation on futures contracts 68,866 169.
170.Other payables and accrued expenses 61,800 171.
172. 173.TOTAL LIABILITIES 174. 5,397,338
175.176.NET ASSETS 177. $ 216,906,091
178.Net Assets consist of: 179. 180.
181.Paid in capital 182. $ 227,425,655
183.Accumulated undistributed net realized gain (loss) 184. (5,600,620)
on investments
185.Net unrealized appreciation (depreciation) on 186. (4,918,944)
investments
187.188.NET ASSETS, for 22,051,786 shares 189. $ 216,906,091
outstanding
190.191.NET ASSET VALUE, offering price and 192. $9.84
redemption price per share ($216,906,091 (divided by)
22,051,786 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED FEBRUARY 28, 1995
193.194.INTEREST INCOME 195. $ 14,529,333
196.EXPENSES 197. 198.
199.Management fee $ 940,793 200.
201.Transfer agent, accounting and custodian fees and 372,389 202.
expenses
203.Non-interested trustees' compensation 4,108 204.
205.Registration fees 683 206.
207.Audit 39,427 208.
209.Legal 2,283 210.
211.Reports to shareholders 1,133 212.
213.Miscellaneous 2,818 214.
215. 216.TOTAL EXPENSES 217. 1,363,634
218.219.NET INTEREST INCOME 220. 13,165,699
221.REALIZED AND UNREALIZED GAIN (LOSS) 223. 224.
222.Net realized gain (loss) on:
225. Investment securities (4,265,429) 226.
227. Futures contracts (716,775) (4,982,204)
228.Change in net unrealized appreciation 229. 230.
(depreciation) on:
231. Investment securities (15,107,606) 232.
233. Futures contracts (803,759) (15,911,365)
234.235.NET GAIN (LOSS) 236. (20,893,569)
237.238.NET INCREASE (DECREASE) IN NET ASSETS 239. $ (7,727,870)
RESULTING FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED FEBRUARY 28,
1995 1994
240.INCREASE (DECREASE) IN NET ASSETS
241.Operations $ 13,165,699 $ 15,916,757
Net interest income
242. Net realized gain (loss) (4,982,204) 14,152,827
243. Change in net unrealized appreciation (depreciation) (15,911,365) (16,541,399)
244. (7,727,870) 13,528,185
245.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
246.Distributions to shareholders: (13,165,699) (15,916,757)
From net interest income
247. From net realized gain (4,232,425) (5,560,443)
248. 249.TOTAL DISTRIBUTIONS (17,398,124) (21,477,200)
250.Share transactions 89,403,793 191,511,206
Net proceeds from sales of shares
251. Reinvestment of distributions 13,115,054 16,831,370
252. Cost of shares redeemed (152,246,558) (183,505,791)
253. (49,727,711) 24,836,785
Net increase (decrease) in net assets resulting from
share transactions
254. (74,853,705) 16,887,770
255.TOTAL INCREASE (DECREASE) IN NET ASSETS
256.NET ASSETS 257. 258.
259. Beginning of period 291,759,796 274,872,026
260. End of period $ 216,906,091 $ 291,759,796
261.OTHER INFORMATION 263. 264.
262.Shares
265. Sold 9,161,615 17,343,548
266. Issued in reinvestment of distributions 1,344,750 1,531,056
267. Redeemed (15,615,632) (16,625,614)
268. Net increase (decrease) (5,109,267) 2,248,990
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED FEBRUARY 28, TEN MONTHS YEARS ENDED APRIL 30,
ENDED
FEBRUARY 28,
1995 1994 1993 1992 1991
269.SELECTED PER-SHARE DATA
270.Net asset value, $ 10.740 $ 11.030 $ 10.100 $ 9.740 $ 9.370
beginning of
period
271.Income from .558 .589 .492 .603 .605
Investment
Operations
Net interest income
272. Net realized (.730) (.090) .930 .360 .370
and unrealized gain
(loss)
273. Total from (.172) .499 1.422 .963 .975
investment
operations
274.Less (.558) (.589) (.492) (.603) (.605)
Distributions
From net interest
income
275. From net (.170) (.200) - - -
realized gain on
investments
276. Total (.728) (.789) (.492) (.603) (.605)
distributions
277.Net asset value, $ 9.840 $ 10.740 $ 11.030 $ 10.100 $ 9.740
end of period
278.TOTAL RETURN B -1.30% 4.59% 14.48% 10.14% 10.67%
279.RATIOS AND SUPPLEMENTAL
DATA
280.Net assets, $ 216,906 $ 291,760 $ 274,872 $ 177,763 $ 113,711
end of period
(000 omitted)
281.Ratio of .59% .48% .63%A .66% .72%
expenses
to average net
assets
282.Ratio of .59% .60% .63%A .66% .72%
expenses to
average net assets
before expense
reductions
283.Ratio of net 5.71% 5.31% 5.72%A 6.06% 6.30%
interest income to
average net assets
284.Portfolio turnover 32% 60% 27%A 19% 14%
rate
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE
TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
FIDELITY CALIFORNIA TAX-FREE MONEY MARKET PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period and reinvestment of its dividends (or income). Yield
measures the income paid by a fund. Since a money market fund tries to
maintain a $1 share price, yield is an important measure of performance. If
Fidelity had not reimbursed certain fund expenses during the periods shown,
the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
California Tax-Free Money Market 2.60% 16.81% 47.52%
Average California Tax-Free
Money Market Fund 2.58% 16.93% n/a
Consumer Price Index 2.86% 17.89% 42.36%
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 invested $1,000 in a fund that had a 5% return over the
past year, the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to the
average California tax-free money market fund, which reflects the
performance of 43 California tax-free money market funds with similar
objectives tracked by IBC/Donoghue during the period covered by this
report. Comparing the fund's performance to the consumer price index (CPI)
helps show how your investment did compared to inflation.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
California Tax-Free Money Market 2.60% 3.16% 3.96%
Average California Tax-Free
Money Market Fund 2.58% 3.18% n/a
Consumer Price Index 2.86% 3.35% 3.59%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had achieved that return
by performing at a constant rate each year.
YIELDS
2/28/94 5/30/94 8/29/94 11/28/94 2/27/95
California Tax-Free 1.91% 2.30% 2.58% 3.10% 3.45%
Money Market
Average California Tax-Free 1.96% 2.31% 2.56% 3.07% 3.45%
Money Market Fund
California Tax-Free 3.35% 4.04% 4.53% 5.44% 6.06%
Money Market Tax-equivalen
t
Row: 1, Col: 1, Value: 1.91
Row: 1, Col: 2, Value: 1.96
Row: 2, Col: 1, Value: 2.3
Row: 2, Col: 2, Value: 2.31
Row: 3, Col: 1, Value: 2.62
Row: 3, Col: 2, Value: 2.56
Row: 4, Col: 1, Value: 3.1
Row: 4, Col: 2, Value: 3.07
Row: 5, Col: 1, Value: 3.44
Row: 5, Col: 2, Value: 3.45
4% -
3% -
2% -
1% -
0%
California
Tax-Free
Money Market
Average California
Tax-Free Money
Market Fund
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the average California tax-free money market fund.
Or you can look at the fund's tax-equivalent yield, which is based on a
combined effective 1995 federal and state income tax rate of 43.04%. A
portion of the fund's income may be subject to the alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free
investments are usually lower
than yields on taxable
investments. However, a
straight comparison between
the two may be misleading
because it ignores the way
taxes reduce taxable returns.
Tax-equivalent yield - the
yield you'd have to earn on a
similar taxable investment to
match the tax-free yield -
makes the comparison more
meaningful. Keep in mind that
the U.S. government neither
insures nor guarantees a
money market fund. And
there is no assurance that a
money fund will maintain a $1
share price.
(checkmark)
FIDELITY CALIFORNIA TAX-FREE MONEY MARKET PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Deborah Watson, Portfolio Manager of Fidelity California
Tax-Free Money Market Portfolio
Q. DEB, WHAT KIND OF RATE ENVIRONMENT HAVE YOU BEEN OPERATING IN DURING THE
PAST SIX MONTHS?
J.H. Short-term rates have continued to rise but the pattern has changed.
When we began the period at the end of August, the federal funds rate - the
rate banks charge each other for overnight loans - was 4.75%. That was
after the Federal Reserve Board had raised the rate five times within a
period of seven months. But the next increase - three quarters of a
percentage point - didn't occur until November, and after that we waited
another three months for the last increase of one-half point in early
February. We ended the period with the federal funds rate at 6.00%, up
three full points since February 1994.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
J.H. Generally speaking, in a rising-rate environment I try to keep the
fund's average maturity at the short end of the curve. That's so the fund's
yield can keep pace with rising yields in the market. For most of the
period, that strategy has translated into an average maturity of around 35
days. In the weeks before the latest rate increase by the Fed, I lowered
the fund's average maturity even more, to less than 30 days.
Q. HOW DID THE FUND PERFORM?
J.H. On February 28, 1995, the fund's seven-day yield was 3.44%, compared
to 2.62% six months ago. The increase reflects the way short-term interest
rates have risen since last summer. The fund's latest yield is the
equivalent of a 6.04% taxable yield for California investors in the 43.04%
combined state and federal tax bracket. The total return for the year
ending February 28, 1995, was 2.60%. That beat the average California
tax-free money market fund, which had a total return of 2.58% during the
same period, according to IBC/Donoghue.
Q. DID THE FUND SUFFER ANY LOSSES ASSOCIATED WITH THE BANKRUPTCY FILING BY
ORANGE COUNTY LATE LAST YEAR?
J.H. No. The fund had no direct exposure to Orange County or to any of the
municipalities that had investments in the Orange County investment pool.
The fund did experience unusually heavy redemptions by shareholders during
the early weeks of December. But soon the flow of assets reversed
direction, and by January the fund's total assets were even greater than
before. The most important fact to note is that the fund's net asset value
was never threatened, remaining stable at $1 per share.
Q. WHAT'S THE OUTLOOK?
J.H. The big question is whether the economy is in fact slowing down, as
the latest statistics on job growth, unemployment and capacity utilization
would seem to suggest. If so, that could mean that interest rates have
peaked, in which case I might want to extend the fund's average maturity.
My own view is that it's too early to make a firm projection either way.
That's why I've settled on a neutral average maturity for the time being,
instead of going aggressively long or short. Meanwhile, I'll strive to
apply even greater scrutiny in my choice of investments.
FUND FACTS
GOAL: High current tax-free
income for California
residents while maintaining a
stable $1 share price
START DATE: July 7, 1984
SIZE: as of February 28,
1995, more than $675 million
MANAGER: Deborah Watson,
since July 1988; manager,
Spartan California Municipal
Money Market Portfolio, since
1989; Spartan Florida
Municipal Money Market
Portfolio, since 1992; Spartan
Pennsylvania Municipal
Money Market Portfolio, since
1989; joined
Fidelity in 1982
(checkmark)
WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager
is expecting rates to fall.
When the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future
tax or other revenues and
payable from those specific
sources.
TENDER BOND: A variable-rate,
long-term security that gives
the bond holder the option to
redeem the bond at face
value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.
FIDELITY CALIFORNIA TAX-FREE MONEY MARKET PORTFOLIO
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
2/28/95 8/31/94 2/28/94
0 - 30 85 82 68
31 - 90 7 9 10
91 - 180 8 0 19
181 - 397 0 9 3
WEIGHTED AVERAGE MATURITY
2/28/95 8/31/94 2/28/94
California Tax-Free
Money Market 21 days 39 days 44 days
Average California
Tax-Free Money Market Fun 33 days 53 days 50 days
d*
ASSET ALLOCATION
AS OF FEBRUARY 28, 1995 AS OF AUGUST 31, 1994
Row: 1, Col: 1, Value: 69.0
Row: 1, Col: 2, Value: 14.0
Row: 1, Col: 3, Value: 4.0
Row: 1, Col: 4, Value: 14.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 66.0
Row: 1, Col: 2, Value: 15.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 16.0
Row: 1, Col: 5, Value: 0.0
Variable rate
demand notes
(VRDNs) 69%
Commercial
paper 14%
Tender bonds 2%
Municipal
notes 14%
Other 1%
Variable rate
demand notes
(VRDNs) 66%
Commercial
paper 15%
Tender bonds 3%
Municipal
notes 16%
Other 0%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
FIDELITY CALIFORNIA TAX-FREE MONEY MARKET PORTFOLIO
INVESTMENTS FEBRUARY 28, 1995
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - 100.0%
Alameda County Ind. Dev. Auth. Ind. Rev., VRDN:
Rfdg. (Longview Fibre Co.) Series 1988, 4.20%,
LOC ABN-AMRO Bank $ 1,750,000 $ 1,750,000
(Jacobs Investment Co. Proj.) Series 1985 A, 4.15%,
LOC Bank of America 3,800,000 3,800,000
Alameda Rev. (KQED Inc. Proj.) 5.05%,
LOC Long-Term Credit Bank of Japan Ltd., VRDN 3,500,000 3,500,000
Anaheim Hsg. Auth. Multi-Family Hsg. Rev.
(Parka Vista Apts.) 4.25%, LOC Citibank, VRDN (b) 5,500,000 5,500,000
Azusa Multi-Family Hsg. Rev. (Pacific Glen Apt. Proj.)
Series 1994, 4.05%, VRDN 3,800,000 3,800,000
Big Bear Lake Ind. Dev. Board (Southwest Gas
Corp. Proj.) Series 1993 A, 3.85%,
LOC Union Bank of Switzerland, VRDN (b) 400,000 400,000
Butte County Board of Ed. BAN 5% 10/27/95 2,300,000 2,303,367
California Gen. Oblig. Bonds:
Series CR-26I, 4.15%, tender 3/15/95
(Liquidity Facility Citibank) (AMBAC Insured) (c) (d) 8,000,000
8,000,000
Series 93 N, 4%, tender 3/1/95
(Liquidity Facility Citibank) (AMBAC Insured) (c) (d) 8,000,000
8,000,000
9.75% 3/1/95 4,000,000 4,000,000
11% 5/1/95 2,000,000 2,021,020
5% 6/1/95 1,000,000 1,000,000
California Gen. Oblig. adj. rate RAN Series 1994-95 B:
4.14% 6/28/95 22,500,000 22,500,000
4.365% 6/28/95 11,000,000 11,000,085
California Gen. Oblig. RAN Series A, 5% 6/28/95 6,000,000 6,016,841
California Health Facs. Fing. Auth. Rev., VRDN:
(Children's Hospital of Orange County) Series 1994,
3.85% (MBIA Insured) 4,200,000 4,200,000
(Kaiser Permanente Health Sys.):
Series 1993 A, 3.90% 4,300,000 4,300,000
Series 1993 B, 3.90% 7,600,000 7,600,000
California Hsg. Fin. Agcy. Participating VRDN (c):
Series PA-40B, 4.25%
(Liquidity Facility Dai-Ichi Kangyo Bank Ltd.) (b) 7,500,000 7,500,000
Series PA-58, 4.20% (Liquidity Facility Merrill Lynch) 1,500,000
1,500,000
Series PA-90, 4.25% (Liquidity Facility Merrill Lynch) (b) 2,350,000
2,350,000
Series PT-14, 4.20%
(Liquidity Facility Dai-Ichi Kangyo Bank Ltd.) 3,110,000 3,110,000
Series PT-40A, 4.25%
(Liquidity Facility Dai-Ichi Kangyo Bank Ltd.) (b) 5,000,000 5,000,000
Series PT-40C, 4.20%
(Liquidity Facility Banque Nationale de Paris) 8,830,000 8,830,000
Series PT-56, 4.25% (Liquidity Facility Credit Suisse) 1,500,000
1,500,000
Series 1994-1, 4.29%
(Liquidity Facility State Street Bank) (b) 9,809,300 9,809,300
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Hsg. Fin. Agcy. Tender Option Bonds,
Series CR-156, 4.39% (Liquidity Facility
Citibank) (b)(c) $ 4,500,000 $ 4,500,000
California Poll. Cont. Fin. Auth. Rev. Bonds
(Pacific Gas & Elec. Co.):
Rfdg. Series 1988 B (b):
4.10%, tender 3/31/95, LOC Sumitomo Bank Ltd. 3,000,000 3,000,000
4.25%, tender 4/27/95, LOC Sumitomo Bank Ltd. 2,000,000 2,000,000
Series 1988 A (b):
3.90%, tender 3/7/95, LOC Swiss Bank Corp. 3,000,000 3,000,000
3.70%, tender 3/8/95, LOC Swiss Bank Corp. 1,000,000 1,000,000
3.85%, tender 3/24/95, LOC Swiss Bank Corp. 2,000,000 2,000,000
4.10%, tender 4/11/95, LOC Swiss Bank Corp. 3,000,000 3,000,000
4.20%, tender 5/15/95, LOC Swiss Bank Corp. 5,000,000 5,000,000
4.25%, tender 5/16/95, LOC Swiss Bank Corp. 2,300,000 2,300,000
Series 1988 D:
3.90%, tender 3/17/95, LOC Bank of Tokyo 6,000,000 6,000,000
4.20%, tender 4/10/95, LOC Bank of Tokyo 12,300,000 12,300,000
Series 1988 E, 3.75%, tender 3/3/95,
LOC Morgan Guaranty Trust 8,000,000 7,999,775
California Poll. Cont. Fin. Auth. Solid Wst. Disp. Rev.
(Western Waste Industries), VRDN:
Series 1994 A, 4.15%, LOC Bank of California (b) 3,500,000 3,500,000
4.475%, LOC Citibank 2,200,000 2,200,000
California School Cash Reserve Prog. Auth. TRAN
Series A, 4.50% 7/5/95 11,500,000 11,526,568
California Statewide Commty. Dev. Auth. Rev., VRDN:
(Covenant Retirement Commty.) 4.10%,
LOC Lasalle Nat'l. Bank 7,000,000 7,000,000
(Delancey St. Foundation Ctfs. of Prtn.) 4.25%,
LOC Bank of America 2,825,000 2,825,000
(Florestone Prod. Co.) Series 1989, 4.45%,
LOC Bank of Tokyo (b) 925,000 925,000
(Triple H Food Processors Proj.) Series 1991, 4.45%,
LOC Bank of Tokyo (b) 2,220,000 2,220,000
California Statewide Commty. Ind. Dev. Rev.
(W&H Voortman Inc. Proj.) Series 1990, 4.45%,
LOC Bank of Tokyo, VRDN (b) 1,065,000 1,065,000
Carlsbad Multi-Family Hsg. Rev., VRDN:
(La Costa Apt. Proj.) Series 1993 A, 3.90%,
LOC Bank of America 2,000,000 2,000,000
(Seascape Village Proj.) Series A, 4.25% 10,165,000 10,165,000
Chula Vista Ind. Dev. Rev. Bonds (San Diego Gas & Elec.) (b):
Series C:
3.70%, tender 3/10/95 1,500,000 1,499,522
3.80%, tender 3/10/95 1,500,000 1,499,593
Series E, 4.10%, tender 3/6/95 2,500,000 2,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Contra Costa County Multi-Family Hsg. Rev.
(Del Norte Place Apt.) Series 1994 A, 4.15%,
LOC Sumitomo Bank Ltd., VRDN (b) $ 3,500,000 $ 3,500,000
Covina Redev. Agcy. Multi-Family Hsg. Rev.
(Shadowhills Apt. Proj.) Series 1994 A, 4.05%, VRDN 4,980,000 4,980,000
Duarte Redev. Agcy. Single-Family Mtg. Rev.
Participating VRDN, Series A-1, 4.30%
(Liquidity Facility Norwest Bank) (c) 3,100,000 3,100,000
East Bay Muni. Util. Dist. Wtr. Sys. Rev. Series 1988, CP:
4.50% 3/16/95 6,200,000 6,200,000
4.55% 3/16/95 1,000,000 1,000,000
3.85% 3/22/95 1,650,000 1,650,000
Eastern Muni. Wtr. Dist. Wtr. & Swr. Rev. (Riverside County)
Series 1993, 3.90% (Liquidity Facility Ind. Bank
of Japan), VRDN 3,400,000 3,400,000
El Cerrito TRAN Series 1994, 4.25% 7/5/95 2,000,000 2,003,995
Escondido Commty. Dev. Commission Rev. (Escondido
Promeneade) 4.30%, LOC Bank of America, VRDN (b) 4,000,000 4,000,000
Fontana Apt. Dev. Rev. Rfdg. (Citrus Ave. Apt. Proj.)
Series 1992 A, 3.90%, LOC Bank of America, VRDN 1,800,000 1,800,000
Fontana Unified School Dist. TRAN 4.50% 7/7/95
(MBIA Insured) 2,800,000 2,812,293
Fremont Bldg. & Equip. Acquisition Fing. Proj.
(Fremont Park Facs. Corp.) 4.05%,
LOC Sumitomo Bank Ltd., VRDN 2,575,000 2,575,000
Fremont TRAN 4.25% 7/5/95 5,600,000 5,611,747
Hayward Hsg. Auth. Multi-Family Hsg. Rev. (Foothills Garden
Apts.) Series 1985 A, 3.75%, LOC Citibank, VRDN 7,600,000 7,600,000
Huntington Beach Multi-Family Hsg. Rev.
(Seabridge Villas Proj.) Series 1985 A, 4.10%,
LOC Bank of America, VRDN 2,000,000 2,000,000
Irvine Apt. Dev. Rev. (San Rafael Apts. Proj.) Series 1992 A,
4.20%, LOC Sumitomo Bank Ltd., VRDN (b) 5,500,000 5,500,000
Kern Commty. College Dist. Ctfs. of Prtn. 4.30%,
LOC Bank of California, Dai-Ichi Kangyo Bank Ltd., &
Fuji Bank Ltd., VRDN 6,600,000 6,600,000
Lancaster Redev. Agcy. Multi-Family Hsg. Rev.
(Westwood Park Apt.) Series 1985 K, 4%,
LOC Bank of America, VRDN 1,200,000 1,200,000
Livermore Ctfs. of Prtn. (Wtr. Reclamation Plant Expansion
Proj.) 4.10%, LOC Nat'l. Westminster Bank, VRDN 495,000 495,000
Loma Linda Multi-Family Hsg. Rev. (Loma Linda Springs Apts.)
Series 1989, 5.45%, LOC Tokai Bank Ltd., VRDN (b) 1,465,000 1,465,000
Long Beach Hbr. Dept. Rev. Series A, CP (b):
4.10% 4/12/95 (Liquidity Facility CIBC) 5,000,000 5,000,000
4.20% 4/13/95 (Liquidity Facility CIBC) 4,000,000 4,000,000
Los Angeles Commty. College Dist. TRAN 4.50% 7/7/95 5,000,000 5,010,538
Los Angeles Commty. Redev. Agcy. Ctfs. of Prtn. (CMC Med.
Plaza) 4.15%, LOC Bank of America, VRDN 600,000 600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Los Angeles County Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
(Malibu Meadows Proj.) Series 1991 A, 4.05%,
LOC Sumitomo Bank Ltd. $ 4,000,000 $ 4,000,000
(Malibu Meadows II Proj.) Series 1991 B, 4.05%,
LOC Sumitomo Bank Ltd. 5,500,000 5,500,000
(Meadowridge Apt. Proj.) Series 1994 B, 4.05% 1,815,000 1,815,000
(Raintree Meadows Proj.) Series 1991 D, 4%,
LOC FHLB 3,558,000 3,558,000
(Sand Canyon Villas Proj.) Series 1989 A, 4.05%,
LOC Ind. Bank of Japan Ltd. (b) 3,300,000 3,300,000
Los Angeles County Metropolitan Transport Auth. Rev.
(Union Station Gateway Proj.) Series 1995 A, 4% (FGIC
Insured) (Liquidity Facility Societe Generale), VRDN 1,000,000 1,000,000
Los Angeles County Pub. Works Fin. Auth. Participating VRDN,
Series 8, 4.30% (Liquidity Facility Credit Suisse) (c) 7,635,180
7,635,181
Los Angeles County TRAN 4.50% 6/30/94 17,350,000 17,376,287
Los Angeles County Transport Commission 2nd Sub
Sales Tax Rev. 4.05% 4/13/95, LOC ABN-AMRO Bank;
Bank of California; Banque Nationale de Paris;
Canadian Imperial Bank of Commerce, CP 6,000,000 6,000,000
Los Angeles Ctfs. of Prtn. (Baldwin Hills Pub. Parking Facs.)
Series 1984, 4.05%, LOC Wells Fargo Bank, VRDN 12,700,000 12,700,000
Los Angeles Dept. of Wtr. & Pwr., CP:
4.50% 3/16/95 1,500,000 1,500,000
4.50% 3/20/95 2,000,000 2,000,000
Los Angeles Dept. of Wtr. & Pwr. Participating VRDN (c):
Series BT-51, 4.20% (Liquidity Facility Bankers Trust) 3,600,000
3,600,000
Series PT-24, 4.15%
(Liquidity Facility Dai-Ichi Kangyo Bank Ltd.) 2,300,000 2,300,000
Los Angeles Local Edl. Agcys. Pooled TRAN
Series 1994-95 A, 4.50% 7/6/95 4,000,000 4,010,048
Los Angeles Multi-Family Hsg. Rev., VRDN:
(Channel Gateway Apts.) Series 1989 B, 4%,
LOC Fuji Bank Ltd. (b) 9,500,000 9,500,000
(Museum Terrace Apt. Proj.) Series H, 4%,
LOC Bank of America 3,800,000 3,800,000
(Studio Colony Proj.) Series 1985 C, 4.10%,
LOC Ind. Bank of Japan Ltd. 4,857,000 4,857,000
Series 1985 K, 4.10%, LOC FHLB 13,700,000 13,700,000
Los Angeles Wastewtr. Sys. 4.25% 5/16/95, CP 1,000,000 1,000,000
Metropolitan Wtr. Dist. of Southern California
Participating VRDN (c):
Series 32-A, 3.90%
(Liquidity Facility Morgan Guaranty Trust) 5,700,000 5,700,000
Series 32-B, 3.90%
(Liquidity Facility Morgan Guaranty Trust) 3,000,000 3,000,000
Midpeninsula Reg'l. Open Space Dist. (Santa Clara &
San Mateo Counties) Series A, 4.25%,
LOC Fuji Bank Ltd., VRDN 3,570,000 3,570,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Northern California Pwr. Agcy. Pub. Pwr. Participating VRDN,
Series PW-9, 4.20% (Liquidity Facility Canadian
Imperial Bank of Commerce) (c) $ 9,900,000 $ 9,900,000
Northern California Transmission Agcy. Participating VRDN,
Series PA-1007, 4.15% (Liquidity Facility Merrill Lynch) (c) 4,360,000
4,360,000
Oakland County Rev.
(Children's Hosp. Med. Ctr.) Series 1994 B,
3.95%, LOC Banque Nationale de Paris, VRDN 13,000,000 13,000,000
Oceanside Multi-Family Rev. (Lakeridge Apt. Proj.)
Series 1994, 4.65%, VRDN 4,000,000 4,000,000
Olcese Wtr. Dist. Bonds (Rio Bravo Wtr. Delivery Sys. Proj.)
Series 1986 A, 4.25%, tender 4/17/95,
LOC Sumitomo Bank Ltd. (b) 2,800,000 2,800,000
Ontario Ind. Dev. Auth. Rev. (Safariland Proj.)
Series 1989, 5.35%, LOC Tokai Bank Ltd., VRDN (b) 1,000,000 1,000,000
Orange County Apt. Dev. Rev., VRDN:
(Bear Brands Apt.) Series 1985 Z, 4.65%,
LOC Fuji Bank Ltd. 8,000,000 8,000,000
(Hidden Hills) Series 1985 U-C, 4.60%,
LOC Tokai Bank Ltd. 5,300,000 5,300,000
(Laguna Summit Apts.) Series 1985 X, 4.60%,
LOC Tokai Bank Ltd. 3,400,000 3,400,000
(Niguel Summit II) Series 1985 U-B, 4.25%,
LOC Bank of America 2,740,000 2,740,000
(Park Place Apts. Proj.) Series 1989 A, 4.95%,
LOC Tokai Bank Ltd. (b) 1,000,000 1,000,000
(Vista Verde Apt. Proj.) Series 1988 A, 4.30%,
LOC Wells Fargo Bank (b) 4,200,000 4,200,000
(WLCO Partners):
Series 1985 C-1, 4.50%, LOC Tokai Bank Ltd. 1,000,000 1,000,000
Series 1985 C-3, 4.90%, LOC Tokai Bank Ltd. 2,900,000 2,900,000
Orange County Hsg. Auth. Apt. Dev. Rev., VRDN:
(Costa Mesa Partners) Series 1985-BB, 5.20%,
LOC Tokai Bank Ltd. 16,900,000 16,900,000
(Lantern Pines Proj.-Frost Group) 4.30%,
LOC Bank of Tokyo 5,700,000 5,700,000
Oxnard Redev. Agcy. Ctfs. of Prtn. (Channel Islands Bus. Ctr.
Proj.) 4.375%, LOC Wells Fargo Bank, VRDN 3,195,000 3,195,000
Palm Springs Ctfs. of Prtn. Commty. Redev. Agcy. Rev.
(Headquarters Hotel Proj.) Series 1984 II, 3.90%,
LOC Citibank, VRDN 800,000 800,000
Panama-Buena Vista Unified School Dist. Capital Impt. Fing.
Rev. Series 1994, 4.15%, LOC Bank of California, VRDN 3,000,000
3,000,000
Paramount Hsg. Auth. Multi-Family Hsg. Rev. Rfdg.
(Century Place Apt. Proj.) 4.05%,
LOC Dai-Ichi Kangyo Bank Ltd., VRDN (b) 1,600,000 1,600,000
Pittsburg Multi-Family Hsg. Auth. Rev.
(Fountain Plaza Apt.) 4%, VRDN 7,000,000 7,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Redlands Multi-Family Hsg. Rev. (Parkview Terrace Proj.)
3.90%, LOC Bank of America, VRDN $ 1,600,000 $ 1,600,000
Riverside County Ctfs. of Prtn. (Aces Pub. Facs. Fin. Prog.)
Series 1985 B, 3.90%, LOC Sanwa Bank Ltd.,
VRDN 1,400,000 1,400,000
Riverside County Hsg. Auth. Multi-Family Hsg. Rev.
(Victoria Springs Apts.) Series 1989 C, 4.50%,
LOC Bank of America, VRDN (b) 1,500,000 1,500,000
Sacramento Hsg. Auth. Multi-Family Rev. (Smoketree Apts.)
Series 1990 A, 3.90%, VRDN 9,000,000 9,000,000
Sacramento Muni. Util. Dist. Elec. Rev. Series H, 3.80%
3/24/95, LOC Bank of America;
Morgan Guaranty Trust, CP 4,300,000 4,300,000
San Bernadino County Mtg. Rev. Rfdg. (Pepperwood Apts.)
Series 1993 A, 4%, LOC FHLB, VRDN 4,000,000 4,000,000
San Bernadino County Multi-Family Hsg. Rev., VRDN:
(Quail Pointe Apt.) Series 1990 A, 3.90% 3,500,000 3,500,000
(Western Properties II) 4%, LOC Bank of America 500,000 500,000
(Western Properties IV) 4%, LOC Bank of America 1,500,000 1,500,000
(Western Properties V) 4%, LOC Bank of America 800,000 800,000
San Diego County Multi-Family Hsg. Rev. Series 1985 C,
3.90%, VRDN 1,300,000 1,300,000
San Diego Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Coral Pointe Apt. Proj.) Series 1993 A, 4.50% 3,265,000
3,265,000
(Carmel Del Mar Apr. Proj.) Series 1993 E, 4%,
LOC Citibank 3,000,000 3,000,000
(Nobel Court Apts.) Series 1985 L, 3.90%,
LOC Citibank 3,825,000 3,825,000
(Paseo Point Apt.) Series 1994 A, 3.95%,
LOC Bank of Tokyo 5,100,000 5,100,000
San Francisco City & County Arpts. Commty. Int'l. Arpt. Rev.
Rfdg. Bonds 2nd Series 4, 5% 5/1/95 (MBIA Insured) 1,410,000 1,411,969
San Francisco City & County Multi-Family Hsg. Rev.
(Winterland Proj.) 3.75%, LOC Citibank, VRDN 6,100,000 6,100,000
San Francisco Redev. Agcy. Rev., VRDN:
(Bayside Village Apts.) 3.90%,
LOC Ind. Bank of Japan Ltd. 8,200,000 8,200,000
(Rincon Ctr.) Series 1985 B, 3.75%, LOC Citibank 9,240,000 9,240,000
(St. Francis Place Proj.) Series 1989 A, 4.60%,
LOC Mitsubishi Trust & Banking 5,500,000 5,500,000
San Jose Multi-Family Hsg. Rev. (Kimberly Woods)
Series 1984, 4%, LOC Bank of America, VRDN 3,000,000 3,000,000
Santa Ana Ind. Dev. Auth. Rev. (Mcfadden Properties Proj.)
4.25%, LOC Bank of America, VRDN 400,000 400,000
Santa Clara Elec. Sys. Rev. Series A, 3.80%,
LOC Nat'l. Westminster Bank, VRDN 1,000,000 1,000,000
Simi Valley Multi-Family Hsg. Rev. (Shadowridge Apts.)
Series 1989, 4.10%, LOC Citibank, VRDN (b) 3,800,000 3,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Southern California Pub. Pwr. Auth. Rev. (Transmission Proj.)
Series 1991, 3.70%, LOC Swiss Bank Corp.
(AMBAC Insured) VRDN $ 2,000,000 $ 2,000,000
Stockton Hosp. Rev. (St. Joseph's Hosp.) Series 1985 A, 4%,
LOC Dai-Ichi Kangyo Bank Ltd., VRDN 10,365,000 10,365,000
Suisun City Hsg. Auth. Multi-Family Rev.
(Village Green Apt.) Series 1988 A, 3.90%, VRDN 2,500,000 2,500,000
Torrance Hosp. Rev. (Little Co. of Mary Hosp.-Torrance
Mem. Med. Ctr.) Series 1992, 4.15%,
LOC Fuji Bank Ltd., VRDN 5,600,000 5,600,000
Tustin City Assessment Bonds Dist. #85-1, 4.70%,
tender 3/7/95, LOC Sanwa Bank Ltd. 5,989,000 5,989,000
Upland Commty. Redev. Agcy. Multi-Family Hsg. Rev.
(Northwoods) Series 1989 B, 4.80%,
LOC Sanwa Bank Ltd., VRDN 3,850,000 3,850,000
Vallejo Commty. Dev. Auth. Rev. (Vallejo Ctr. Assoc.)
Series 1994 A, 4.10%, LOC Bank of Tokyo,
VRDN 2,820,000 2,820,000
Washington Township Hosp. Dist. Rev., Series 1985 A,
3.90%, LOC Ind. Bank of Japan Ltd., VRDN 7,300,000 7,300,000
TOTAL INVESTMENTS - 100% $ 669,302,129
Total Cost for Income Tax Purposes $ 669,292,973
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on the holdings is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
California Gen. Oblig. Bonds:
Series CR-26I, 4.15%,
tender 3/15/95 (Liquidity
Facility Citibank)
(AMBAC Insured) 2/15/95 $ 8,000,000
California Gen. Oblig. Bonds:
Series 93 N, 4%,
tender 3/1/95 (Liquidity
Facility Citibank)
(AMBAC Insured) 2/1/95 $ 8,000,000
INCOME TAX INFORMATION
At February 28, 1995, the fund had a capital loss carryforward of
approximately $585,900 of which $27,400, $52,500, $28,800 and $477,200 will
expire on February 28, 1996, 1997, 1998 and 2003, respectively.
FIDELITY CALIFORNIA TAX-FREE MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 28, 1995
285.ASSETS 286. 287.
288.Investment in securities, at value - See 289. $ 669,302,129
accompanying schedule
290.Cash 291. 1,016,403
292.Interest receivable 293. 5,379,975
294. 295.TOTAL ASSETS 296. 675,698,507
297.LIABILITIES 298. 299.
300.Dividends payable $ 26,120 301.
302.Accrued management fee 230,547 303.
304.Other payables and accrued expenses 256,994 305.
306. 307.TOTAL LIABILITIES 308. 513,661
309.310.NET ASSETS 311. $ 675,184,846
312.Net Assets consist of: 313. 314.
315.Paid in capital 316. $ 675,759,335
317.Accumulated net realized gain (loss) on 318. (584,554)
investments
319.Unrealized gain from accretion of market discount 320. 10,065
321.322.NET ASSETS, for 675,783,175 shares 323. $ 675,184,846
outstanding
324.325.NET ASSET VALUE, offering price and 326. $1.00
redemption price per share ($675,184,846 (divided by)
675,783,175 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED FEBRUARY 28, 1995
327.328.INTEREST INCOME 329. $ 21,364,572
330.EXPENSES 331. 332.
333.Management fee $ 2,723,476 334.
335.Transfer agent, accounting and custodian fees and 1,371,303 336.
expenses
337.Non-interested trustees' compensation 1,290 338.
339.Registration fees 1,500 340.
341.Audit 26,744 342.
343.Legal 8,312 344.
345.Miscellaneous 6,268 346.
347. 348.TOTAL EXPENSES 349. 4,138,893
350.351.NET INTEREST INCOME 352. 17,225,679
353.REALIZED AND UNREALIZED GAIN (LOSS) 355. (475,878)
354.Net realized gain (loss) on investment securities
356.Increase (decrease) in net unrealized gain from 357. 8,614
accretion
of market discount
358.359.NET GAIN (LOSS) 360. (467,264)
361.362.NET INCREASE IN NET ASSETS RESULTING FROM 363. $ 16,758,415
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED FEBRUARY 28,
1995 1994
364.INCREASE (DECREASE) IN NET ASSETS
365.Operations $ 17,225,679 $ 10,549,462
Net interest income
366. Net realized gain (loss) (475,878) 26,686
367. Increase (decrease) in net unrealized gain from 8,614 1,451
accretion of market discount
368. 16,758,415 10,577,599
369.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
370.Dividends to shareholders from net interest income (17,225,679) (10,549,462)
371.Share transactions at net asset value of $1.00 per 1,890,883,466 1,472,161,834
share
Proceeds from sales of shares
372. Reinvestment of dividends from net interest 16,639,355 10,140,028
income
373. Cost of shares redeemed (1,843,636,022) (1,438,844,793)
374. 63,886,799 43,457,069
Net increase (decrease) in net assets and shares
resulting from share transactions
375. 63,419,535 43,485,206
376.TOTAL INCREASE (DECREASE) IN NET ASSETS
377.NET ASSETS 378. 379.
380. Beginning of period 611,765,311 568,280,105
381. End of period $ 675,184,846 $ 611,765,311
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED FEBRUARY 28, TEN MONTHS YEARS ENDED APRIL 30,
ENDED
FEBRUARY 28,
1995 1994 1993 1992 1991
382.SELECTED PER-SHARE DATA
383.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period
384.Income from .026 .020 .019 .035 .047
Investment
Operations
Net interest
income
385.Less (.026) (.020) (.019) (.035) (.047)
Distributions
From net interest
income
386.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
387.TOTAL RETURN B 2.60% 1.97% 1.92% 3.59% 4.85%
388.RATIOS AND SUPPLEMENTAL
DATA
389.Net assets, $ 675,185 $ 611,765 $ 568,280 $ 556,516 $ 538,791
end of period
(000 omitted)
390.Ratio of .62% .64% .62%A .63% .61%
expenses
to average net
assets
391.Ratio of net 2.58% 1.95% 2.29%A 3.50% 4.75%
interest income to
average net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1995
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity California Tax-Free High Yield Portfolio (the high yield fund) and
Fidelity California Tax-Free Insured Portfolio (the insured fund) are funds
of Fidelity California Municipal Trust. Fidelity California Tax-Free Money
Market Portfolio (the money market fund) is a fund of Fidelity California
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 California Municipal Trust and Fidelity
California Municipal Trust II (the trusts) are organized as a Massachusetts
business trust and a Delaware business trust, respectively. Each fund is
authorized to issue an unlimited number of shares. The following summarizes
the significant accounting policies of the funds:
SECURITY VALUATION.
HIGH YIELD AND INSURED FUNDS. Securities are valued based upon a
computerized matrix system and/or appraisals by a pricing service, both of
which consider market transactions and dealer-supplied valuations.
Short-term securities maturing within sixty days of their purchase date are
valued either at amortized cost or original cost plus accrued interest,
both of which approximate current value. Securities for which quotations
are not readily available through the pricing service are valued at their
fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each fund is not subject to income taxes to
the extent that it distributes all of its taxable income for the fiscal
year. The schedules of investments include information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. For the
money market fund, accretion of market discount represents unrealized gain
until realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for losses on
certain securities, futures and options transactions, market discount,
capital loss carryforwards and losses deferred due to wash sales, futures
and options, and excise tax regulations. The high yield and insured funds
may also utilize earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for income
tax purposes.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FUTURES CONTRACTS AND OPTIONS. The high yield and insured funds may use
futures and options contracts to manage its exposure to the bond market and
to fluctuations in interest rates. Buying futures, writing puts, and buying
calls tend to increase the fund's exposure to the underlying instrument.
Selling futures, buying puts, and writing calls tend to decrease the fund's
exposure to the underlying instrument, or hedge other fund investments.
Futures contracts and written options involve, to varying degrees, risk of
loss in excess of the futures variation margin or the option value
reflected in the Statement of Assets and Liabilities. The underlying face
amount at value is shown in the schedule of investments under the captions
"Futures Contracts". This amount reflects each contract's exposure to the
underlying instrument at period end. Losses may arise from changes in the
value of the underlying instruments, if there is an illiquid secondary
market for the contracts, or if the counterparties do not perform under the
contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
RESTRICTED SECURITIES. Each fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $16,000,000 or 2.4% of net assets for the money market fund.
3. PURCHASES AND SALES OF
INVESTMENTS.
HIGH YIELD FUND. Purchases and sales of securities, other than short-term
securities, aggregated $139,016,003 and $223,663,841 respectively. The
market value of futures contracts opened and closed during the period
amounted to $775,013,232 and $766,927,454, respectively.
INSURED FUND. Purchases and sales of securities, other than short-term
securities, aggregated $70,248,867 and $132,353,033 respectively. The
market value of futures contracts opened and closed during the period
amounted to $431,560,410 and $420,996,860, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of each fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1325% to
.3700% for the period March 1, 1994 to July 31, 1994 and .1200% to .3700%
for the period August 1, 1994 to February 28, 1995. In the event that these
rates were lower than the contractual rates in effect during those periods,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .25%. For
the period, the management fees were equivalent to annual rates of .41% of
average net assets for the high yield, insured and money market funds,
respectively.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect, and after reducing
the fee for any payments by FMR pursuant to the fund's Distribution and
Service Plan.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plans (the Plans), and in accordance with Rule 12b-1 of the 1940 Act, FMR
or the funds' distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of each fund's shares. Subject to
the approval of each Board of Trustees, the Plans also authorize payments
to third parties that assist in the sale of each fund's shares or render
shareholder support services. FMR or FDC has informed the funds that
payments made to third parties under the Plans amounted to $2,034, $2,117
and $29,848 for the high yield, insured and money market funds,
respectively, for the period.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES. United Missouri Bank, N.A. (the Bank)
is the custodian and transfer and shareholder servicing agent for the
funds. The Bank has entered into a sub-contract with Fidelity Service Co.
(FSC), an affiliate of FMR, under which FSC performs the activities
associated with the funds' transfer and shareholder servicing agent and
accounting functions. During the period March 1 to December 31, 1994, the
funds paid fees based on the type, size, number of accounts and the number
of transactions made by shareholders. Effective January 1, 1995, the Board
of Trustees approved a revised transfer agent fee contract pursuant to
which the funds pay account fees and asset-based fees that vary according
to account size and type of account. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements. The accounting
fee is based on the level of average net assets for the month plus
out-of-pocket expenses. For the period, FSC received transfer agent and
accounting fees amounting to $468,720 and $214,470 for the high yield fund,
$264,495 and $101,423 for the insured fund, and $1,205,669 and $117,152 for
the money market fund, respectively.
Money Market fund shareholders participating in the Fidelity Ultra Service
Account(registered trademark) Program (the Program) pay a $5.00 monthly fee
to Fidelity Brokerage Services, Inc. (FBSI), an affiliate of FMR, for
performing services associated with the Program. For the period, fees paid
to FBSI by shareholders participating in the Program amounted to $143,858.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity California Municipal Trust and Fidelity
California Municipal Trust II and the Shareholders of Fidelity California
Tax-Free High Yield Portfolio, Fidelity California Tax-Free Insured
Portfolio, and Fidelity California Tax-Free Money Market Portfolio:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for Moody's and Standard &
Poor's ratings), 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 Fidelity California Tax-Free High Yield
Portfolio and Fidelity California Tax-Free Insured Portfolio (funds of
Fidelity California Municipal Trust) and Fidelity California Tax-Free Money
Market Portfolio (a fund of Fidelity California Municipal Trust II) at
February 28, 1995, 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 Fidelity California Municipal
Trust and Fidelity California Municipal Trust II's 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 February 28, 1995 by correspondence
with the custodian and brokers and the application of alternative auditing
procedures where confirmations from brokers were not received, provide a
reasonable basis for the opinion expressed above.
/s/PRICE WATERHOUSE LLP
PRICE WATERHOUSE LLP
Boston, Massachusetts
March 31, 1995
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND
QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios.(registered trademark)
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND
ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
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Do NOT strip-in this type
Page 71 = BLANK
Do NOT strip-in this type
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER, MONEY MARKET FUND
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr. , Vice President -
MONEY MARKET FUND
John F. Haley Jr., Vice President -
HIGH YIELD AND INSURED FUNDS
Deborah F. Watson, Vice President -
MONEY MARKET FUND
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
Michael D. Conway, Assistant Treasurer - MONEY MARKET FUND
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Marvin L. Mann*
Edward H. Malone*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
United Missouri Bank, N.A.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
