SPARTAN(registered trademark)
(REGISTERED TRADEMARK)
CALIFORNIA MUNICIPAL INCOME
FUND
(FORMERLY FIDELITY CALIFORNIA MUNICIPAL INCOME FUND)
SEMIANNUAL REPORT
AUGUST 31, 1997
CONTENTS
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.
PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.
FUND TALK 7 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.
INVESTMENT CHANGES 10 A SUMMARY OF THE MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS.
INVESTMENTS 11 A COMPLETE LIST OF THE FUND'S INVESTMENTS
WITH THEIR MARKET VALUES.
FINANCIAL STATEMENTS 30 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.
NOTES 34 NOTES TO THE FINANCIAL STATEMENTS.
To reduce expenses and demonstrate respect for our environment, we
have initiated a project through which we will begin eliminating
duplicate copies of most financial reports and prospectuses to most
households, even if they have more than one account in the fund. If
additional copies of financial reports, prospectuses or historical
account information are needed, please call 1-800-544-6666.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION
OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS
IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888 FOR A
FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(PHOTO_OF_EDWARD_C_JOHNSON_3D)DEAR SHAREHOLDER:
The short-term volatility that hit the stock and bond markets in the
spring re-emerged in August, and many equity and fixed-income
securities retreated from their 1997 highs. Still, the Standard &
Poor's 500 Index was up roughly 23% year-to-date through August 31,
more than twice its historical annual average. The bond markets have
posted moderate returns through the first eight months of the year,
primarily influenced by positive news on the inflation front.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
The longer your investment time frame, the less likely it is that you
will be affected by short-term market volatility. A 10-year investment
horizon appropriate for saving for a college education, for example,
enables you to weather market cycles in a long-term fund, which may
have a higher risk potential, but also has a higher potential rate of
return.
An intermediate-length fund could make sense if your investment
horizon is two to four years, while a short-term bond fund could be
the right choice if you need your money in one or two years.
If your time horizon is less than a year, you might want to consider
moving some of your bond investment into a money market fund. These
funds seek income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that there is no assurance that a money market fund will
achieve its goal of maintaining a stable net asset value of $1.00 per
share, and that these types of funds are neither insured nor
guaranteed by any agency of the U.S. government.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are
available 24 hours a day, seven days a week to provide you the
information you need to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d
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. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). You can also look at the fund's income, as
reflected in the fund's yield, to measure performance. If Fidelity had
not reimbursed certain fund expenses, the total return and dividends
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1997 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
SPARTAN CALIFORNIA MUNICIPAL INCOME 4.21% 10.05% 39.45% 112.88%
LEHMAN BROTHERS CALIFORNIA MUNICIPAL 4.19% 9.73% N/A N/A
BOND INDEX
CALIFORNIA MUNICIPAL DEBT FUNDS AVERAGE 4.06% 8.98% 37.36% 109.68%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare the fund's returns to the performance
of the Lehman Brothers California Municipal Bond Index - a total
return performance benchmark for California investment-grade municipal
bonds with maturities of at least one year. To measure how the fund's
performance stacked up against its peers, you can compare it to the
California municipal debt funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Analytical Services Inc. The past six months average represents a peer
group of 108 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
SPARTAN CALIFORNIA MUNICIPAL INCOME 10.05% 6.88% 7.85%
LEHMAN BROTHERS CALIFORNIA MUNICIPAL 9.73% N/A N/A
BOND INDEX
CALIFORNIA MUNICIPAL DEBT FUNDS AVERAGE 8.98% 6.54% 7.67%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a slightly different figure than
that obtained by averaging the cumulative total returns and
annualizing the result.)
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19970831 19970911 143542 S00000000000001
Spartan CA: Muni Income LB Municipal Bond
00091 LB015
1987/08/31 10000.00 10000.00
1987/09/30 9460.55 9631.30
1987/10/31 9548.50 9665.39
1987/11/30 9774.95 9917.76
1987/12/31 9965.85 10061.66
1988/01/31 10441.30 10420.06
1988/02/29 10575.57 10530.20
1988/03/31 10234.13 10408.05
1988/04/30 10275.53 10487.15
1988/05/31 10317.51 10456.84
1988/06/30 10484.75 10609.83
1988/07/31 10546.33 10679.00
1988/08/31 10589.03 10688.40
1988/09/30 10819.57 10881.86
1988/10/31 11071.47 11073.38
1988/11/30 10944.44 10971.95
1988/12/31 11139.35 11084.19
1989/01/31 11294.32 11313.41
1989/02/28 11185.59 11184.33
1989/03/31 11169.17 11157.60
1989/04/30 11493.23 11422.48
1989/05/31 11736.69 11659.72
1989/06/30 11886.18 11818.06
1989/07/31 11993.88 11978.91
1989/08/31 11848.08 11861.63
1989/09/30 11863.35 11826.29
1989/10/31 11981.51 11970.92
1989/11/30 12167.80 12180.41
1989/12/31 12216.74 12280.05
1990/01/31 12131.30 12221.96
1990/02/28 12286.35 12330.74
1990/03/31 12313.53 12334.44
1990/04/30 12137.99 12245.14
1990/05/31 12429.72 12512.45
1990/06/30 12543.98 12622.43
1990/07/31 12737.81 12807.98
1990/08/31 12561.50 12622.01
1990/09/30 12611.35 12629.21
1990/10/31 12774.32 12858.30
1990/11/30 13017.55 13116.88
1990/12/31 13066.81 13173.94
1991/01/31 13185.45 13350.73
1991/02/28 13234.13 13466.88
1991/03/31 13248.63 13471.73
1991/04/30 13404.86 13650.91
1991/05/31 13538.03 13772.26
1991/06/30 13541.05 13758.63
1991/07/31 13711.74 13926.21
1991/08/31 13834.59 14109.62
1991/09/30 13982.88 14293.32
1991/10/31 14155.55 14421.96
1991/11/30 14157.66 14462.20
1991/12/31 14394.22 14772.56
1992/01/31 14471.75 14806.24
1992/02/29 14496.44 14810.98
1992/03/31 14488.54 14816.46
1992/04/30 14603.21 14948.32
1992/05/31 14784.96 15124.27
1992/06/30 15015.72 15378.05
1992/07/31 15480.75 15839.09
1992/08/31 15266.06 15684.65
1992/09/30 15343.95 15787.23
1992/10/31 15059.54 15632.04
1992/11/30 15410.82 15912.01
1992/12/31 15648.56 16074.48
1993/01/31 15835.36 16261.42
1993/02/28 16559.47 16849.60
1993/03/31 16363.09 16671.50
1993/04/30 16509.87 16839.71
1993/05/31 16605.97 16934.35
1993/06/30 16873.59 17216.99
1993/07/31 16873.57 17239.54
1993/08/31 17285.03 17598.47
1993/09/30 17503.58 17798.91
1993/10/31 17533.46 17833.27
1993/11/30 17352.43 17676.15
1993/12/31 17750.68 18049.30
1994/01/31 17951.59 18255.42
1994/02/28 17455.61 17782.61
1994/03/31 16562.97 17058.50
1994/04/30 16632.54 17203.15
1994/05/31 16747.06 17352.31
1994/06/30 16575.91 17246.28
1994/07/31 16913.74 17562.41
1994/08/31 16971.97 17623.17
1994/09/30 16711.56 17364.47
1994/10/31 16301.57 17056.07
1994/11/30 15901.19 16747.70
1994/12/31 16174.12 17116.32
1995/01/31 16753.70 17605.50
1995/02/28 17296.57 18117.47
1995/03/31 17474.22 18325.64
1995/04/30 17477.54 18347.26
1995/05/31 18064.21 18932.72
1995/06/30 17829.82 18768.01
1995/07/31 17992.86 18945.93
1995/08/31 18203.29 19186.16
1995/09/30 18365.35 19307.61
1995/10/31 18674.51 19588.34
1995/11/30 19045.92 19913.31
1995/12/31 19275.24 20104.68
1996/01/31 19392.57 20256.47
1996/02/29 19242.88 20119.74
1996/03/31 18949.05 19862.61
1996/04/30 18887.05 19806.40
1996/05/31 18873.53 19798.48
1996/06/30 19123.32 20014.08
1996/07/31 19309.80 20196.21
1996/08/31 19344.59 20191.36
1996/09/30 19612.36 20474.04
1996/10/31 19868.36 20705.60
1996/11/30 20292.37 21084.52
1996/12/31 20191.81 20995.96
1997/01/31 20227.97 21035.64
1997/02/28 20427.48 21228.75
1997/03/31 20134.98 20945.77
1997/04/30 20307.73 21121.09
1997/05/31 20640.54 21438.75
1997/06/30 20866.42 21667.07
1997/07/31 21552.45 22267.25
1997/08/29 21287.87 22058.61
IMATRL PRASUN SHR__CHT 19970831 19970911 143545 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Spartan California Municipal Income Fund on August 31,
1987. As the chart shows, by August 31, 1997, the value of the
investment would have grown to $21,288 - a 112.88% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond Index - which reflects the performance of the
investment-grade municipal bond market - did over the same period.
With dividends and capital gains, if any, reinvested, the same $10,000
would have grown to $22,059 - a 120.59% increase.
UNDERSTANDING
PERFORMANCE
HOW A FUND DID YESTERDAY IS
NO GUARANTEE OF HOW IT WILL DO
TOMORROW. BOND PRICES, FOR
EXAMPLE, GENERALLY MOVE IN
THE OPPOSITE DIRECTION OF INTEREST
RATES. IN TURN, THE SHARE PRICE,
RETURN AND YIELD OF A FUND THAT
INVESTS IN BONDS WILL VARY. THAT
MEANS IF YOU SELL YOUR SHARES
DURING A MARKET DOWNTURN,
YOU MIGHT LOSE MONEY. BUT IF
YOU CAN RIDE OUT THE MARKET'S
UPS AND DOWNS, YOU MAY HAVE
A GAIN.
(CHECKMARK)
TOTAL RETURN COMPONENTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEAR ENDED YEAR ENDED YEARS ENDED FEBRUARY 28,
ENDED FEBRUARY 28, FEBRUARY 29,
AUGUST 31,
1997 1997 1996 1995 1994 1993
</TABLE>
DIVIDEND RETURNS 2.60% 5.37% 5.86% 5.96% 5.82% 6.89%
CAPITAL APPRECIATION 1.61% 0.79% 5.39% -6.87% -0.41% 7.34%
RETURNS
TOTAL RETURNS 4.21% 6.16% 11.25% -0.91% 5.41% 14.23%
TOTAL RETURN COMPONENTS include both dividend returns and capital
appreciation returns. 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 capital gains paid by the fund, if any, are reinvested.
DIVIDENDS AND YIELD
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED AUGUST 31, 1997 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR
DIVIDENDS PER SHARE 5.02(CENTS) 30.01(CENTS) 59.73(CENTS)
ANNUALIZED DIVIDEND RATE 4.91% 5.03% 5.07%
30-DAY ANNUALIZED YIELD 4.55% - -
30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 7.84% - -
</TABLE>
DIVIDENDS per share show the income paid by the fund for a set period.
If you annualize this number, based on an average share price of
$12.05 over the past one month, $11.83 over the past six months and
$11.77 over the past one year, you can compare the fund's income over
these three periods. Dividends per share show the income paid by the
fund for a set period and do not reflect any tax reclassifications.
The 30-day annualized YIELD is a standard formula for all funds based
on the yields of the bonds in the fund, averaged over the past 30
days. This figure shows you the yield characteristics of the fund's
investments at the end of the period. It also helps you compare funds
from different companies on an equal basis. The tax-equivalent yield
shows what you would have to earn on a taxable investment to equal the
fund's tax-free yield, if you're in the 41.95% combined effective 1997
federal and state tax bracket but does not reflect the payment of the
federal alternative minimum tax, if applicable.
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Jonathan Short, Portfolio Manager of Spartan
California Municipal Income Fund
Q. HOW DID THE FUND PERFORM, JON?
A. Fairly well. For the six-month period that ended August 31, 1997,
the fund had a total return of 4.21%. To get a sense of how the fund
did relative to its competitors, the California municipal debt funds
average returned 4.06% for the same six-month period, as tracked by
Lipper Analytical Services, and the Lehman Brothers California
Municipal Bond Index returned 4.19%. For the 12-month period that
ended August 31, 1997, the fund had a total return of 10.05%,
outpacing the California municipal debt funds average's return of
8.98% and the Lehman Brothers California Municipal Bond Index, which
returned 9.73%.
Q. THE BOND MARKET BECAME LESS SKITTISH DURING THE PAST SIX MONTHS.
WHAT ACCOUNTED FOR THE MARKET'S CHANGING SENTIMENT?
A. As the period wore on, market participants began to worry less
about inflation. Bond investors, of course, dislike even the threat of
inflation because it can eat away at the fixed-income payments their
bonds generate. Early in the period, investors were worried that the
economy was growing at too quick a pace - and much faster than
anticipated. As a result, investors sent bond yields higher and bond
prices lower. While there weren't any tangible signs that inflation
was on the upswing, there were concerns that the Federal Reserve Board
would
raise interest rates as an anti-inflationary measure sometime down the
road. But late in the spring, bond investors became more optimistic on
evidence that the economy was growing at a moderate, non-inflationary
pace. In July, the market was further cheered by Fed Chairman Alan
Greenspan, who testified before Congress that inflation didn't appear
to be a problem, implying that further interest rate hikes didn't
appear to be on the horizon. Further evidence of low inflation helped
the bond market rally continue through August.
Q. WHAT HELPED THE FUND OUTPACE ITS BENCHMARK AND ITS PEERS DURING THE
PAST SIX MONTHS?
A. It's difficult to know for certain - at least when it comes to the
peer group - but I think it comes down to several factors. First, the
fund had a relatively heavy stake - compared to the index and its
peers - in bonds rated Baa by Moody's Investors Service. During the
period, these lower-investment-grade bonds did better than
higher-rated bonds and made a positive contribution to the fund's
performance.
Q. AND THE OTHER FACTORS THAT MADE A POSITIVE CONTRIBUTION TO
PERFORMANCE?
A. I continued to emphasize non-callable bonds, which performed well
during the period. Non-callable bonds can't be redeemed by their
issuer before maturity. Issuers often are prompted to refinance their
older, more expensive debt if current rates are lower than they're
paying on existing bonds. The prices of many of the fund's
non-callable holdings rose during the past six months as investors
increasingly sought out bonds with call protection. Finally, some
specific holdings contributed to the fund's better-than-average
performance. For example, the prices of bonds issued by Desert
Hospital rose when it was taken over by Tenet Health Care.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. During the past six months there weren't any specific holdings that
were disappointments. However, the fund had a relatively light
weighting in bonds with maturities of 20 years or more. Those very
long-maturity bonds generally performed better than intermediate-term
bonds with maturities of between five and 20 years, which the fund
heavily emphasizes. I chose to focus on intermediate maturity bonds
because the yield curve - which is a graphical representation of the
yield of bonds by ascending maturity dates - was flat. By that I mean
that up to about a 20-year maturity, an investor would be paid an
appropriate amount of additional income for each additional year of
maturity. It is this additional income that compensates the investor
for the additional risk taken on by investing in the longer maturity
part of the market. But for bonds with maturities of 20 years or
longer, the extra income for each successive year to maturity was not,
in my opinion, attractive enough for the level of risk inherent in
these bonds.
Q. WHAT FACTORS DO YOU THINK WILL SHAPE THE MUNICIPAL MARKET OVER THE
NEXT SIX MONTHS?
A. It's quite likely that the bond markets - municipal and taxable
alike - will stay very focused on economic reports. As we've seen over
the past year, the markets have been quite reactive to news about the
economy's strength, pushing bond prices up when economic growth
appeared moderate and sending them lower when growth appeared strong.
I expect we'll see similar reactions from the bond market until
economic growth trends become more defined and sustainable. As far as
the municipal market goes, there are some technical factors that I
view as positives. The supply of municipals has dwindled over the past
years, although lower interest rates have prompted some municipal
issuers to issue new debt. While that has caused an increase in the
supply of municipals available, it was easily absorbed by the market.
Furthermore, I view the increase in supply as temporary.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
JON SHORT ON CALIFORNIA'S
ECONOMY, FISCAL SITUATION AND
CREDIT RATING:
"The continued strength of
California's economy has been
somewhat surprising. Not only has
the state's employment growth
showed remarkable strength -
particularly in the technology,
trade-related and entertainment
industries - but the housing
market looks much healthier than
it did a couple of years earlier.
Even areas in Southern California,
which had lagged the northern
part of the state throughout much
of this decade, have finally shown
signs that they are on the mend.
The state's strong economy has
translated into a better fiscal
environment. State revenues - in
the form of taxes and other fees
- - came in ahead of budget. As a
result of the state's improved fiscal
situation, I believe that the
municipal bond credit rating
agencies will take a hard look at
the state's current credit rating
and perhaps even upgrade it. If a
credit rating upgrade occurs, it
would likely be viewed as a
positive by municipal investors."
FUND FACTS
GOAL: high current tax-free
income for California residents
FUND NUMBER: 091
TRADING SYMBOL: FCTFX
START DATE: July 7, 1984
SIZE: as of August 31, 1997,
more than $1.1 billion
MANAGER: Jonathan Short,
since 1995; manager, various
Fidelity and Spartan municipal
income; joined Fidelity in 1990
(checkmark)
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF AUGUST 31, 1997
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE SECTORS
6 MONTHS AGO
GENERAL OBLIGATION 26.2 30.3
ELECTRIC REVENUE 13.5 15.0
WATER & SEWER 13.2 9.6
SPECIAL TAX 10.8 10.8
LEASE REVENUE 9.6 8.5
AVERAGE YEARS TO MATURITY AS OF AUGUST 31, 1997
6 MONTHS AGO
YEARS 14.2 14.6
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 AUGUST 31, 1997
6 MONTHS AGO
YEARS 7.3 7.6
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF AUGUST 31, 1997 AS OF FEBRUARY 28, 1997
AAA 51.2%
AA, A 33.0%
BAA 11.2%
NON-RATED 1.7%
SHORT-TERM
INVESTMENTS 2.9%
AAA 38.9%
AA, A 42.3%
BAA 12.3%
NON-RATED 3.9%
SHORT-TERM
INVESTMENTS 2.6%
ROW: 1, COL: 1, VALUE: 2.9
ROW: 1, COL: 2, VALUE: 1.7
ROW: 1, COL: 3, VALUE: 11.2
ROW: 1, COL: 4, VALUE: 33.0
ROW: 1, COL: 5, VALUE: 51.2
ROW: 1, COL: 1, VALUE: 2.6
ROW: 1, COL: 2, VALUE: 3.9
ROW: 1, COL: 3, VALUE: 12.3
ROW: 1, COL: 4, VALUE: 42.3
ROW: 1, COL: 5, VALUE: 38.9
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
AMOUNTS SHOWN ARE AS A
PERCENTAGE OF THE FUND'S INVESTMENTS.
INVESTMENTS AUGUST 31, 1997 (UNAUDITED)
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES
MUNICIPAL BONDS - 97.2%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - 97.2%
Alameda Hsg. Auth. Multi-Family Hsg. Rev.
(Independence Apts.) Series A,
7.50% 2/20/31 (GNMA Collateralized) AAA $ 4,355,000 $ 4,519,271
Anaheim Pub. Fing. Auth. Tax Allocation Rev. (Cap.
Appreciation) 0% 12/1/06 (MBIA Insured) Aaa 5,000,000 3,218,750
Buena Park Commty. Redev. Agcy. Tax Allocation
Rfdg. (Central Business Dist. Proj.) 7.10%
9/1/14 BBB+ 3,500,000 3,749,336
Burbank Redev. Agcy. Tax Allocation Series A,
5.75% 12/1/08 Baa1 4,655,000 4,794,650
Burbank Redev. Agcy. Tax Allocation (City Ctr.
Redev. Proj.) Series A, 5% 12/1/15
(FSA Insured) Aaa 4,000,000 3,825,000
Cabrillo Unified School Dist. (Cap. Appreciation)
Series A, 0% 8/1/10 (AMBAC Insured) Aaa 2,150,000 1,101,875
California Edl. Facs. Auth. Rev.:
Rfdg.:
(Chapman Univ.)
5.375% 10/1/16 (Connie Lee Insured) AAA 2,000,000 1,962,500
(Univ. of Southern California):
Series A, 5.65% 10/1/10 Aa3 2,740,000 2,890,700
Series A, 5.70% 10/1/15 Aa3 1,000,000 1,020,000
(Pooled Facs. Prog.)
Series 1987, 7.625% 11/1/12
(MBIA Insured) Aaa 1,000,000 1,025,130
California Edl. Facs. Auth. Rev. Student Loan
(California Loan Program) Series A,
6% 3/1/16 (MBIA Insured) (e) Aaa 4,900,000 5,028,625
California Gen. Oblig.:
6.10% 11/1/01 A1 1,250,000 1,332,813
6.10% 2/1/02 A1 1,000,000 1,067,500
5.50% 6/1/03 A1 8,000,000 8,410,000
6% 9/1/03 A1 10,000,000 10,787,500
7% 10/1/04 A1 1,000,000 1,145,000
6.40% 2/1/05 A1 3,375,000 3,754,688
6.90% 4/1/05 A1 2,350,000 2,693,688
6.40% 2/1/06 A1 575,000 644,719
6.50 2/1/07 A1 1,000,000 1,136,250
6.40% 9/1/07 A1 3,000,000 3,405,000
6% 10/1/08 A1 1,925,000 2,124,719
6.50% 9/1/10 A1 3,350,000 3,831,563
7% 10/1/10 A1 2,500,000 2,981,250
5.25% 10/1/13 A1 1,700,000 1,700,000
5.25% 10/1/14 A1 2,000,000 1,990,000
5.25% 10/1/17 A1 1,500,000 1,464,375
6.25% 10/1/19 A1 11,540,000 12,463,200
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Health Facs. Fing. Auth. Rev.:
(Cap. Appreciation)
(Kaiser Permanente Health Sys.):
Series A, 0% 10/1/09 Aa3 $ 7,140,000 $ 3,819,900
Series A, 0% 10/1/10 Aa3 3,795,000 1,902,244
(Gould Med. Foundation) Series A, 7.30%
4/1/20 (Escrowed to Maturity) (c) A 4,500,000 4,916,250
Rfdg.:
(Alexian Brothers, San Jose):
7.05% 1/1/09 (MBIA Insured) Aaa 4,500,000 4,837,500
7.125% 1/1/16 (MBIA Insured) Aaa 2,510,000 2,682,563
(Children's Hosp.):
6% 7/1/03 (MBIA Insured) Aaa 1,200,000 1,296,000
6% 7/1/05 (MBIA Insured) Aaa 1,850,000 2,016,500
6% 7/1/06 (MBIA Insured) Aaa 1,500,000 1,642,500
(Summit Medical Ctr.) Series A,
5.50% 5/1/05 (FSA Insured) Aaa 2,400,000 2,535,000
(Sutter Health Systems) Series A,
5.125% 8/15/17 (FSA Insured) Aaa 1,000,000 957,500
(Sacramento Med. Foundation)
Series F, 7.875% 6/1/18 A 1,000,000 1,043,130
(St. Elizabeth Hosp. Proj.) 6.30% 11/15/15
(Pre-Refunded to 11/15/02 @ 102.00) (c) - 1,000,000 1,106,250
California Hsg. Fin. Agcy. Rev.:
(Cap. Appreciation) (Home Mtg.):
Series A 1983, 0% 2/1/15 Aa2 8,187,000 1,586,231
Series A, 0% 8/1/23 (e) Aa2 3,650,000 501,875
Series B 1983, 0% 8/1/15 Aa2 170,000 27,838
Series C, 0% 8/1/21 (e) Aa2 5,870,000 946,538
(Home Mtg.):
Series A, 5% 8/1/03 (MBIA Insured) Aaa 1,935,000 1,978,538
Series C, 8.30% 8/1/19 (e) Aa2 755,000 779,168
Series C, 7.60% 8/1/30 (e) Aa2 5,390,000 5,720,138
Series F-2, 7.25% 8/1/16 (e) Aa2 3,390,000 3,640,013
Series F, 7.875% 8/1/19 Aa2 650,000 670,209
Series I, 4.95% 8/01/28 (MBIA Insured) (e) Aaa 3,345,000
3,336,638
Series L, 5.70% 8/1/25 (MBIA Insured) (e) Aaa 2,110,000 2,165,388
Series R, 5.25% 8/1/16 (MBIA Insured) (e) Aaa 3,935,000 3,969,431
California Poll. Cont. Fing. Auth. Poll. Cont.
Rev.:
(General Motors Corp.) 5.50% 4/1/08 A3 1,500,000 1,513,125
Rfdg. (San Diego Gas & Elec.)
Series A, 5.90% 6/1/14 A2 3,900,000 4,138,875
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Poll. Cont. Fing. Auth. Solid Waste
Disp. Rev. (Browning-Ferris Industries Inc.)
Series A, 5.80% 12/1/16 (e) A3 $ 3,400,000 $ 3,438,250
California Pub. Cap. Impt. Fing. Auth. Rev.
(Pooled Proj.) Series B, 8.10% 3/1/18 Aaa 9,140,000 9,529,273
California Dept. Wtr. Resources Rev.
(Central Valley Proj.):
Rfdg.:
Series T, 5.50% 12/1/08 (d) Aa2 2,635,000 2,770,044
Series T, 5% 12/1/09 (d) Aa2 5,000,000 5,000,000
Series J-1, 7% 12/1/12 Aa2 1,000,000 1,192,500
Series J-2, 5.50% 12/1/01 Aa2 500,000 524,375
Series J-3, 5.90% 12/1/05 Aa2 1,005,000 1,097,963
Series O, 4.75% 12/1/17 Aa2 5,000,000 4,593,750
Series O, 5% 12/1/22 Aa2 1,900,000 1,771,750
Series O, 4.75% 12/1/25 Aa2 6,555,000 5,825,756
California Franchise Tax Board Ctfs. of Partn. Rfdg.
5.50% 10/1/06 A2 1,825,000 1,918,531
California Pub. Wks. Board Lease Rev.:
(Dept. of Corrections, Corcoran II):
Series A, 6% 1/1/05 (AMBAC Insured) Aaa 5,000,000 5,443,750
Series A, 5.50% 1/1/14 (AMBAC Insured) Aaa 3,000,000 3,037,500
(Dept. of Corrections, Madera):
Series A, 7% 9/1/00 A 1,000,000 1,077,500
Series E, 6% 6/1/07 A 2,090,000 2,254,588
Series E, 5.50% 6/1/15 A 6,750,000 6,893,438
Series E, 5.50% 6/1/19 A 3,000,000 2,966,250
(Dept. of Corrections, Susanville)
Series D, 5.25% 6/1/15 (FSA Insured) Aaa 4,000,000 4,010,000
(Franchise Tax Board-PH II)
Series A, 6.25% 9/1/11 A 1,150,000 1,210,375
Rfdg.:
(Commty. College Proj.):
Series A, 5.875% 10/1/08 A 2,000,000 2,115,000
Series D, 5.37% 3/1/12 A 1,500,000 1,509,375
(Dept. of Corrections, Monterey):
Series D, 5.375% 11/1/11 A 2,500,000 2,528,125
Series D, 5.375% 11/1/12 A 1,250,000 1,264,063
Series D, 5.375% 11/1/13 A 4,500,000 4,511,250
Series D, 5.375% 11/1/14 A 5,000,000 4,987,500
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Pub. Wks. Board Lease Rev.: - continued
Rfdg.:
(Dept.of Corrections, State Prisons)
Series A, 5% 12/1/19 (AMBAC Insured) Aaa $ 5,250,000 $ 5,007,188
(Univ. of California Proj.):
Rfdg. Series A, 5.40% 12/1/16
(AMBAC Insured) Aaa 3,340,000 3,306,600
Series A, 6.40%12/1/16 (AMBAC Insured)
(Pre-Refunded to 12/1/02 @ 102.00) (c) Aaa 1,500,000 1,670,625
Series B, 5.25% 6/1/07 A1 2,965,000 3,072,481
Series B, 6.40% 12/1/09 A1 3,700,000 4,199,500
Series B, 5.50% 6/1/14 A1 2,750,000 2,732,813
(Various California State Univ. Proj.):
Rfdg. Series A, 6.375% 10/1/19 A 2,500,000 2,718,750
Series A, 6.50% 9/1/03 A 1,045,000 1,152,113
Series A, 6.50% 9/1/04 A 1,090,000 1,209,900
Series A, 6.10% 10/1/06 A 1,210,000 1,318,900
Series A, 5.50% 6/1/10 A1 4,915,000 5,130,031
Series A, 6.30% 10/1/10 A 3,000,000 3,262,500
Series A, 5.50% 6/1/14 A1 18,250,000 18,478,125
Series B, 5.55% 6/6/10 A1 3,195,000 3,346,763
Series B, 5.50% 6/1/19 A1 2,000,000 1,975,000
Series C, 6% 3/1/05 (AMBAC Insured) Aaa 1,000,000 1,091,250
California Statewide Commty. Dev. Auth. Lease
Rev. (United Airlines) Series A,
5.70% 10/1/33 (e) Baa3 7,850,000 7,643,938
California Statewide Commty. Dev. Auth. Rev.
Ctfs. of Prtn.:
(Sisters Charity Leavenworth Sys.):
4.875% 12/1/10 Aa3 1,000,000 966,250
5% 12/1/14 Aa3 1,315,000 1,249,250
5.616% 7/1/13 (MBIA Insured) Aaa 6,000,000 6,105,000
7.342% 7/1/13 (MBIA Insured) INFL (f) Aaa 2,000,000 2,087,500
Rfdg.:
(Children's Hosp.) 6% 6/1/13
(MBIA Insured) Aaa 2,470,000 2,658,338
(Civic Center Proj.) 6% 10/1/18 A 4,965,000 5,051,888
(Triad Healthcare) 5.90% 8/1/01 A+ 200,000 205,750
(Triad Healthcare) 6.25% 8/1/06 A+ 5,000,000 5,293,750
(St. Joseph Health Sys.) 5.50% 7/1/14 Aa3 4,500,000 4,500,000
(St. Joseph Health Sys.) 5.50% 7/1/23 Aa3 3,000,000 2,947,500
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Statewide Commtys. Dev. Corp.
Ctfs. of Prtn.:
(Odd Fellows) 5.375% 10/1/13 A+ $ 1,250,000 $ 1,237,500
(Villaview Commty. Hosp., Inc.)
Series A, 7% 9/1/09 A+ 2,100,000 2,283,750
California Statewide Commty. Dev. Corp. Rev.
Ctfs. of Partn. (Sisters of Charity Leavenworth)
5% 12/1/23 Aa3 11,375,000 10,450,781
Carson Redev. Agcy.:
(Redev. Proj. Area #1 Tax Allocation):
6.375% 10/1/12 Baa1 3,965,000 4,133,513
6.375% 10/1/16 Baa1 2,000,000 2,077,500
(Redev. Proj. Area #2 Tax Allocation)
5.50% 10/1/02 Baa 100,000 101,250
5.875% 10/1/09 Baa 2,000,000 2,017,500
Carson Redev. Spl. Tax 6% 10/1/13 Baa 1,750,000 1,789,375
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. Rfdg.
(Wtr. Sys. Impt. Proj.)
Series A:
7.25% 8/1/07 (MBIA Insured) Aaa 1,755,000 2,103,806
7% 8/1/11 (MBIA Insured) Aaa 1,500,000 1,779,375
7% 8/1/12 (MBIA Insured) Aaa 1,000,000 1,187,500
7% 8/1/13 (MBIA Insured) Aaa 4,740,000 5,640,600
Central California Joint Pwrs. Health Fing. Auth.
Rfdg. (Commty. Hosps. of Central California)
5.25% 2/2/04 Baa1 5,000,000 4,962,500
Central Coast Wtr. Auth. Rev. Rfdg.
(Regional Facs.) Series A, 5% 10/1/16
(AMBAC Insured) Aaa 1,400,000 1,328,250
Central Valley Fing. Auth. Cogeneration Proj.
Rev. (Carson Ice Gen. Proj.):
5.50% 7/1/01 BBB- 1,400,000 1,440,250
5.80% 7/1/04 BBB- 2,000,000 2,097,500
6% 7/1/09 BBB- 4,800,000 4,992,000
6.10% 7/1/13 BBB- 2,000,000 2,070,000
Chino Basin Fing. Auth. Rev. Rfdg.
(Muni. Wtr. Dist. Swr. Sys. Proj.):
7% 8/1/05 (AMBAC Insured) Aaa 1,185,000 1,374,600
7% 8/1/06 (AMBAC Insured) Aaa 1,145,000 1,338,219
7% 8/1/09 (AMBAC Insured) Aaa 350,000 415,188
Clovis Unified School Dist. (Cap. Appreciation):
Series B, 0% 8/1/02 (MBIA Insured) Aaa 300,000 240,000
Series B, 0% 8/1/03 (MBIA Insured) Aaa 3,485,000 2,657,313
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Coalinga Ctfs. of Prtn. 7% 4/1/10 BBB+ $ 1,655,000 $ 1,727,406
Contra Costa County Ctfs. of Prtn.
(Cap. Appreciation) (Merrithew Mem. Hosp.):
0% 11/1/07 (Escrowed to Maturity) (c) Aaa 4,615,000 2,815,150
0% 11/1/13 (Escrowed to Maturity) (c) Aaa 6,805,000 2,875,113
0% 11/1/14 (Escrowed to Maturity) (c) Aaa 3,000,000 1,192,500
Contra Costa Schools Fing. Auth. Rev.
(Cap. Appreciation) (Vista Unified
School Dist. School Sites)
Series A, 0% 9/1/17 (AMBAC Insured)
(Pre-Refunded to 9/1/02 @ 36.34) (c) Aaa 3,420,000 996,075
Contra Costa Trans. Auth. Sales Tax Rev.
Series A:
6% 3/1/03 (FGIC Insured) Aaa 2,530,000 2,729,238
6% 3/1/04 (FGIC Insured) Aaa 2,500,000 2,721,875
6% 3/1/06 (FGIC Insured) Aaa 2,500,000 2,750,000
6% 3/1/08 (FGIC Insured) Aaa 1,000,000 1,101,250
Culver City Redev. Fing. Auth. Rev. Rfdg. Tax
Allocation 4.60% 11/1/20 (AMBAC Insured) Aaa 3,000,000 2,606,250
Desert Hospital Dist. Rev.
6.392% 7/28/20 (FSA Insured)
(Pre-Refunded to 7/1/02 @ 102.00) (c) Aaa 13,000,000 14,300,000
Duarte Ctfs. of Prtn.
(City of Hope Nat'l. Med. Ctr.):
6% 4/1/08 Baa1 4,930,000 5,090,225
6.25% 4/1/23 Baa1 5,000,000 5,131,250
East Bay Muni. Util. Dist. Wtr. Sys. Rev. Rfdg.:
6% 6/1/02 (FGIC Insured) Aaa 2,000,000 2,142,500
6% 6/1/03 (FGIC Insured) Aaa 4,450,000 4,811,563
5.75% 6/1/04 (MBIA Insured) Aaa 3,000,000 3,228,750
6% 6/1/04 (FGIC Insured) Aaa 1,460,000 1,593,225
6% 6/1/05 (FGIC Insured) Aaa 1,550,000 1,699,188
6% 6/1/06 (FGIC Insured) Aaa 1,840,000 2,028,600
6.10% 6/1/07 A1 1,250,000 1,337,500
6% 6/1/09 (AMBAC Insured) Aaa 1,000,000 1,070,000
6% 6/1/12 (FGIC Insured) Aaa 1,000,000 1,048,750
East Bay Regional Park Dist.:
Series B, 6.10% 9/1/06 Aa 1,300,000 1,373,125
Series C:
6.50% 9/1/01 (FGIC Insured) Aaa 1,160,000 1,254,250
6.50% 9/1/02 (FGIC Insured) Aaa 1,220,000 1,337,425
6.50% 9/1/03 (FGIC Insured) Aaa 1,285,000 1,426,350
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Eastern Muni. Wtr. Dist. Wtr. & Swr. Rev. Ctfs.
of Prtn. 6.75% 7/1/12 (FGIC Insured) Aaa $ 3,600,000 $ 4,180,500
Elk Grove Unified School Dist. Spl. Tax Rfdg.
(Commty. Facs. Dist. #1):
6.50% 12/1/07 (AMBAC Insured) Aaa 1,340,000 1,535,975
6.50% 12/1/24 (AMBAC Insured) Aaa 4,000,000 4,640,000
Encintas Unified School Dist. (Cap. Appreciation):
0% 8/1/03 (MBIA Insured) Aaa 1,750,000 1,334,375
0% 8/1/04 (MBIA Insured) Aaa 1,750,000 1,270,938
0% 8/1/10 (MBIA Insured) Aaa 1,000,000 512,500
Escondido Joint Pwrs. Fing. Auth. Lease Rev. Rfdg.
(Cap. Appreciation) (California Ctr. for the Arts)
0% 9/1/04 (AMBAC Insured) Aaa 570,000 411,113
Eureka Unified School Dist. Ctfs. of Prtn.
(Cap. Appreciation):
Series A, 0% 9/1/27 (FSA Insured) (i) Aaa 660,000 717,750
Series B, 0% 9/1/27 (FSA Insured) (i) Aaa 1,555,000 1,541,394
Fairfield-Suison Swr. Dist. Swr. Rev. Rfdg.
(Cap. Appreciation)
Series A:
0% 5/1/07 (MBIA Insured) Aaa 1,635,000 1,021,875
0% 5/1/08 (MBIA Insured) Aaa 2,085,000 1,230,150
0% 5/1/09 (MBIA Insured) Aaa 2,080,000 1,154,400
Folsom Pub. Fing. Auth. Local Agcy. Rev.
Series A, 7.25% 10/1/10 BBB+ 1,285,000 1,354,069
Fontana Redev. Agcy. Tax Allocation Rfdg.
(Jurupa Hills) Series A, 7% 10/1/14 BBB+ 6,500,000 6,979,375
Foothill/Eastern Trans. Corridor Agcy
(Cap. Appreciation) (California Toll Td. Rev.)
Series A:
0% 1/1/04 Baa 1,600,000 1,150,000
0% 1/1/05 Baa 1,000,000 677,500
0% 1/1/08 (i) Baa 2,000,000 1,370,000
Foster City Pub. Fing. Auth. Rev. (Foster City
Commty. Rev. Proj.) Series A:
6% 9/1/06 A- 1,355,000 1,421,056
6% 9/1/07 A- 1,440,000 1,515,600
5.50% 9/1/09 A- 370,000 377,400
6% 9/1/13 A- 1,925,000 1,965,906
5.80% 9/1/16 A- 1,000,000 1,013,750
Fountain Valley Agcy. for Commty. Dev. Tax
Allocation (Ind. Area Redev. Proj.)
9.10% 1/1/15 BBB+ 1,745,000 1,779,394
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Fremont Unified School Dist. Alameda County
(Cap. Appreciation) Series F:
0% 8/1/04 (MBIA Insured) Aaa $ 1,270,000 $ 922,338
0% 8/1/05 (MBIA Insured) Aaa 1,395,000 959,063
0% 8/1/09 (MBIA Insured) Aaa 1,000,000 546,250
Inglewood California (Daniel Freeman Hosp. Inc.)
6.5% 5/1/01 A 1,000,000 1,066,250
Intermodal Container Transfer Facs. Joint Pwr. Auth.
Rev. Rfdg. Series A, 7.70% 11/1/14
LOC Industrial Bank of Japan A2 1,500,000 1,558,125
Irvine Ranch Wtr. Dist. Joint Pwr. Agcy.
Local Pool Rev.:
7.80% 2/15/08 A+ 1,560,000 1,584,742
7.875% 2/15/23 A+ 9,740,000 9,895,450
8.25% 8/15/23 A+ 30,540,000 31,669,675
Kern County High School Dist. Gen. Oblig.
7% 8/1/09 (Escrowed to Maturity) (c) A1 1,090,000 1,279,388
King Ctfs. of Prtn. 7.50% 7/1/04 - 2,800,000 2,971,500
Kings River Conservation Dist. Rev. Rfdg.
(Pine Flat Pwr.) Series D, 6.375% 1/1/12 Aa 6,830,000 7,214,188
La Quinta Redev. Agcy. Rfdg. Tax Allocation Rfdg.
(Proj. Area #1):
7.30% 9/1/05 (MBIA Insured) Aaa 1,000,000 1,181,250
7.30% 9/1/06 (MBIA Insured) Aaa 620,000 741,675
7.30% 9/1/11 (MBIA Insured) Aaa 555,000 678,488
Livermore Redev. Agcy. Tax Allocation Rev.
(Livermore Redev. Proj.) Series A,
7.75% 8/1/09 - 945,000 963,711
Local Gov't. Fin. Auth. Rev. (Cap. Appreciation)
(Oakland Central Dist.):
0% 9/1/08 (MBIA Insured) Aaa 3,710,000 2,151,800
0% 9/1/09 (MBIA Insured) Aaa 3,565,000 1,942,925
Long Beach Hbr. Rev.:
6% 5/15/06 (MBIA Insured) (e) Aaa 3,000,000 3,270,000
5.75% 5/15/07 (MBIA Insured) (e) Aaa 3,845,000 4,118,956
5.50% 5/15/11 (MBIA Insured) (e) Aaa 700,000 712,250
5.50% 5/15/15 (MBIA Insured) (e) Aaa 3,710,000 3,696,088
Los Angeles Ctfs. of Prtn. 7.30% 4/1/20 A 3,000,000 3,202,500
Los Angeles Dept. Arpt. Rev.
(Los Angeles Int'l Arpt.) Series D,
5.625% 5/15/12 (FGIC Insured) (e) Aaa 1,000,000 1,017,500
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Los Angeles Dept. Wtr. & Pwr. Elec. Plant. Rev.:
Rfdg.:
4.75% 8/15/12 (FGIC Insured) Aaa $ 6,035,000 $ 5,642,725
4.75% 8/15/16 (FGIC Insured) Aaa 2,700,000 2,440,125
6.375% 2/1/20 Aa3 1,000,000 1,051,250
(Second Issue):
9% 10/15/01 Aa3 110,000 128,975
6.75% 10/15/04 (AMBAC Insured) Aaa 2,400,000 2,727,000
Rfdg.:
4.75% 11/15/19 (FGIC Insured) Aaa 5,900,000 5,280,500
4.75% 11/15/19 (MBIA Insured) Aaa 4,000,000 3,580,000
Los Angeles County Ctfs. of Prtn. (Cap. Appreciation)
(Disney Parking Proj.):
0% 3/1/10 Baa1 2,000,000 980,000
0% 3/1/11 Baa1 1,950,000 894,563
0% 3/1/12 Baa1 2,180,000 934,675
0% 3/1/13 Baa1 5,585,000 2,247,963
0% 9/1/17 Baa1 3,370,000 998,363
0% 3/1/18 Baa1 3,000,000 862,500
0% 3/1/19 Baa1 3,175,000 861,219
0% 3/1/20 Baa1 1,000,000 255,000
Los Angeles County Ctfs. of Prtn. Correctional
Facs. (Cap. Appreciation):
0% 9/1/10 (MBIA Insured)
(Escrowed to Maturity) (c) Aaa 3,770,000 1,936,838
0% 9/1/11 (MBIA Insured)
(Escrowed to Maturity) (c) Aaa 6,400,000 3,096,000
Los Angeles County Metropolitan Trans. Auth.
Sales Tax Rev.:
(Proposition C) Second Series A:
5.90% 7/1/02 (AMBAC Insured) Aaa 1,200,000 1,284,000
5.90% 7/1/03 (AMBAC Insured) Aaa 1,655,000 1,783,263
5.90% 7/1/04 (AMBAC Insured) Aaa 1,005,000 1,091,681
(Proposition A) Ist Tier Sr. Series A:
5.90% 7/1/14 (MBIA Insured) Aaa 1,585,000 1,668,213
5.25% 7/1/11 (MBIA Insured) Aaa 3,230,000 3,254,225
(Proposition C) Second Series A:
5.90% 7/1/07 (AMBAC Insured) Aaa 1,730,000 1,903,000
5.90% 7/1/08 (AMBAC Insured) Aaa 500,000 550,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Los Angeles County Trans. Commission
Sales Tax Rev. Series A, 6.75% 7/1/11
(Pre-Refunded to 7/1/01 @ 102.00) (c) Aaa $ 1,250,000 $ 1,382,813
Los Angeles Hbr. Dept. Rev. 7.60% 10/1/18
(Escrowed to Maturity) (c) AAA 11,810,000 14,895,363
Los Angeles Unified School Dist. Series A:
6% 7/1/14 (FGIC Insured) Aaa 1,200,000 1,302,000
6% 7/1/15 (FGIC Insured) Aaa 1,000,000 1,082,500
Los Angeles Wastewtr. Sys. Rev. Rfdg.:
Series A, 6% 2/1/04 (FGIC Insured) Aaa 3,000,000 3,251,250
Series A, 5% 2/1/11 (FGIC Insured) Aaa 1,345,000 1,329,869
Series D, 4.70% 11/1/17 (FGIC Insured) Aaa 4,000,000 3,600,000
M-S-R Pub. Pwr. Agcy. San Juan Proj. Rev. Rfdg.
Series D, 6.75% 7/1/20 (MBIA Insured)
(Escrowed to Maturity) (c) Aaa 2,500,000 2,937,500
Madera Cnty. Ctfs. Partn. (Valley Children's
Hospital) 6.25% 3/15/05 (MBIA Insured) Aaa 1,480,000 1,631,700
Manhattan Beach Unified School Dist.
(Cap. Appreciation) 0% 9/1/09 (FGIC Insured) Aaa 975,000 530,156
Metropolitan Wtr. Dist. Southern California
Gen. Oblig. 5% 3/1/02 Aaa 1,000,000 1,025,000
Metropolitan Wtr. Dist. Southern California Wtrwks.
Rev.:
5.75% 8/10/18 Aa 14,000,000 14,577,500
7.682% 8/5/22 INFL (f) Aa 1,300,000 1,386,125
Rfdg. 4.75% 7/1/21 (MBIA Insured) Aaa 6,000,000 5,407,500
Modesto Ctfs. of Prtn.:
(Commty. Ctr. Refing. Proj.):
Series A, 5.60% 11/1/14 (AMBAC Insured) Aaa 1,370,000 1,426,513
Series A, 5% 11/1/23 (AMBAC Insured) Aaa 2,500,000 2,368,750
(Golf Course Refing. Proj.)
Series B, 5% 11/1/23 (FGIC Insured) Aaa 1,585,000 1,501,788
Modesto Irrigation Dist. Ctfs. of Prtn.
(Geysers Geothermal Pwr. Proj.) Series 1986,
5% 10/1/17 A1 5,000,000 4,675,000
Modesto Irrigation Dist. Ctfs. of Prtn. Rfdg. &
Cap. Impts. (Cap. Appreciation) Series A:
0% 10/1/05 (MBIA Insured) Aaa 2,140,000 1,463,225
0% 10/1/08 (MBIA Insured) Aaa 2,270,000 1,310,925
0% 10/1/09 (MBIA Insured) Aaa 2,270,000 1,234,313
0% 10/1/10 (MBIA Insured) Aaa 2,270,000 1,157,700
Moreno Valley Unified School Dist. Ctfs. of Prtn.
(Cap. Appreciation) (Land Acquisition)
0% 9/1/11 (FSA Insured) (i) Aaa 2,350,000 2,446,938
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Northern California Pwr. Agcy. Pub. Pwr. Rev. Rfdg.:
(Geothermal Proj. #3):
Series A, 5.50% 7/1/05 (AMBAC Insured) (g) Aaa $ 2,250,000 $
2,387,813
Series A, 5.80% 7/1/09 (AMBAC Insured) Aaa 5,135,000 5,565,056
Series B, 5.50% 7/1/01 (AMBAC Insured) Aaa 2,000,000 2,090,000
(Hydro Electric Proj. #1)
7.50% 7/1/23 (AMBAC Insured)
(Pre-Refunded to 7/1/21 @ 100) (c) Aaa 3,825,000 4,819,500
Northern California Trans. Rev. (Ore Trans. Proj.)
Series A, 7% 5/1/13 (MBIA Insured) Aaa 7,100,000 8,475,625
Oakland Ctfs. of Prtn. Rfdg. (Cap. Appreciation)
(Oakland Museum) Series A, 0% 4/1/07
(AMBAC Insured) Aaa 2,750,000 1,725,625
Oakland Redev. Agcy. Central Dist. Redev. (Sub.
Tax Allocation) 5% 9/1/21 (MBIA Insured) Aaa 1,000,000 948,750
Ontario Redev. Fing. Auth. Rev.:
(Cap. Appreciation) (Ctr. City Cimarron Proj. #1):
0% 8/1/08 (MBIA Insured) Aaa 3,255,000 1,896,038
0% 8/1/09 (MBIA Insured) Aaa 3,260,000 1,784,850
0% 8/1/10 (MBIA Insured) Aaa 3,255,000 1,672,256
(Ontario Redev. Proj. #1):
6.65% 8/1/07 (MBIA Insured) Aaa 1,000,000 1,156,250
6.75% 8/1/08 (MBIA Insured) Aaa 1,065,000 1,243,388
6.95% 8/1/11 (MBIA Insured) Aaa 1,000,000 1,192,500
Orange County Local Trans. Auth. Sales Tax Rev.
First Series-Measure M:
6% 2/15/08 (AMBAC Insured) Aaa 2,500,000 2,740,625
6% 2/15/09 Aa 2,000,000 2,187,500
Orange County Wtr. Dist. Ctfs. of Prtn., Series A,
5.50% 8/15/09 (AMBAC Insured) Aaa 1,000,000 1,031,250
Palomar Pomerado Health Sys. Rev.
(Cap.Appreciation) 0% 11/1/05 (MBIA Insured) Aaa 3,075,000
2,083,313
Placer County Wtr. Agcy. Rev.
(Middle Fork Proj.) Series A, 3.75% 7/1/12 A 8,830,000 7,604,838
Pleasanton Joint Pwrs. Fing. Auth. Rev.
Reassessment Series A:
5.70% 9/2/01 Baa3 1,205,000 1,247,175
5.80% 9/2/02 Baa3 5,230,000 5,458,813
6% 9/2/05 Baa3 2,865,000 3,054,806
6.15% 9/2/12 Baa3 13,055,000 13,740,388
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Port Oakland Port. Rev.:
Rfdg. (Cap. Appreciation) Series F:
0% 11/1/05 (MBIA Insured) Aaa $ 300,000 $ 204,000
0% 11/1/06 (MBIA Insured) Aaa 2,890,000 1,867,663
0% 11/1/07 (MBIA Insured) Aaa 4,250,000 2,592,500
0% 11/1/08 (MBIA Insured) Aaa 5,270,000 3,030,250
Series G, 6% 11/1/07 (MBIA Insured) (e) Aaa 900,000 981,000
Series G, 5.50% 11/1/17 (MBIA Insured) (e) Aaa 1,465,000 1,446,688
Rancho Mirage Joint Pwrs. Fing. Auth. Ctfs. of
Prtn. (Eisenhower Mem. Hosp.) 7% 3/1/22
(Pre-Refunded to 3/1/02 @ 102.00) (c) A2 5,300,000 5,955,875
Rancho California Wtr. Dist. Fing. Auth. Rev. Rfdg.:
6.50% 11/1/00 (FGIC Insured) Aaa 1,315,000 1,407,050
6.50% 11/1/03 (FGIC Insured) Aaa 1,300,000 1,447,875
6.50% 11/1/04 (FGIC Insured) Aaa 1,985,000 2,235,606
6.50% 11/1/05 (FGIC Insured) Aaa 500,000 566,875
5% 8/15/14 (AMBAC Insured) Aaa 4,840,000 4,688,750
4.875% 8/1/15 (AMBAC Insured) Aaa 2,005,000 1,857,131
Redding Elec. Sys. Rev. Ctfs. of Prtn. (Cap.
Appreciation) Series A:
0% 6/1/05 (FGIC Insured) Aaa 2,000,000 1,387,500
0% 6/1/06 (FGIC Insured) Aaa 1,730,000 1,139,638
0% 6/1/07 (FGIC Insured) Aaa 1,890,000 1,176,525
0% 6/1/08 (FGIC Insured) Aaa 1,300,000 763,750
Richmond Redev. Agcy. Tax Allocation
(Harbour Redev. Proj.) 7% 7/1/09
(FSA Insured) Aaa 1,750,000 1,960,000
Riverside County Asset Leasing Corp. Leasehold Rev.
(Riverside County Hosp. Proj.):
Series A:
5.75% 6/1/01 (MBIA Insured) Aaa 1,250,000 1,314,063
6% 6/1/03 (MBIA Insured) Aaa 1,000,000 1,078,750
6.375% 6/1/09 (MBIA Insured) Aaa 5,000,000 5,450,000
6.50% 6/1/12 (MBIA Insured) Aaa 18,000,000 20,430,000
Series B
5.70% 6/1/16 (MBIA Insured) Aaa 1,950,000 2,030,438
Riverside Unified School Dist. Ctfs. of Prtn.
(Cap. Appreciation) (Land Acquisition Proj.)
Series B, 0% 9/1/26 (FSA Insured) (i) Aaa 5,485,000 5,361,588
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Riverside County Redev. Agcy. Tax Allocation
(Redev. Proj. #4) Series A:
7.50% 10/1/10 BBB $ 1,000,000 $ 1,082,500
7.50% 10/1/26 BBB 2,500,000 2,706,250
Riverside County Trans. Commission Sales Tax
Rev. Series A:
5% 6/1/06 (AMBAC Insured) Aaa 2,100,000 2,157,750
5.25% 6/1/07 (AMBAC Insured) Aaa 790,000 819,625
Rosemead Redev. Agcy. (Cap. Appreciation)
(Proj. Area 1) 0% 10/1/98
(Escrowed to Maturity) (c) A- 1,120,000 1,074,438
Roseville Joint Unified High School Dist.
(Cap. Appreciation) Series B,
0% 8/1/00 (FGIC Insured) Aaa 1,060,000 936,775
Sacramento City Fing. Auth. (Gas Tax) Series A:
6% 10/1/07 (AMBAC Insured) Aaa 1,290,000 1,428,675
6.75% 12/1/08 (AMBAC Insured) Aaa 1,475,000 1,727,594
Sacramento City Fing. Auth. Lease Rev. Rfdg.
Series A:
5.375% 11/1/14 (AMBAC Insured) Aaa 8,725,000 8,866,781
5.40% 11/1/20 (AMBAC Insured) Aaa 1,925,000 1,929,813
Sacramento Cogeneration Auth. Cogeneration
Proj. Rev. (Proctor & Gamble Proj.):
5.40% 7/1/98 BBB- 2,000,000 2,019,940
5.70% 7/1/00 BBB- 1,200,000 1,234,500
5.90% 7/1/02 BBB- 1,000,000 1,048,750
6% 7/1/03 BBB- 700,000 740,250
7% 7/1/05 BBB- 1,500,000 1,687,500
6.375% 7/1/10 BBB- 1,500,000 1,610,625
6.50% 7/1/14 BBB- 1,000,000 1,071,250
Sacramento Muni. Util. Dist. Elec. Rev.:
1.76% 11/15/08 (FGIC Insured) (h) Aaa 17,700,000 17,456,625
6.30% 8/15/18 (FGIC Insured) Aaa 9,000,000 9,483,750
Rfdg. Series G, 6.50% 9/1/13 Aaa 5,100,000 5,826,750
Sacramento Pwr. Auth. Cogeneration Proj. Rev.:
6.50% 7/1/06 BBB- 4,500,000 4,927,500
6.50% 7/1/07 BBB- 2,000,000 2,190,000
6.50% 7/1/08 BBB- 1,000,000 1,092,500
San Bernardino County Ctfs. of Prtn.:
(Cap. Facs. Proj.) Series B, 6.875% 8/1/24
(Escrowed to Maturity) (c) AAA 5,000,000 6,050,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
San Bernardino County Ctfs. of Prtn.: - continued
(Medical Ctr. Fing. Proj.):
5.50% 8/1/05 (MBIA Insured) Aaa $ 2,700,000 $ 2,828,250
5.50% 8/1/06 (MBIA Insured) Aaa 2,500,000 2,612,500
5.50% 8/1/07 (MBIA Insured) Aaa 6,000,000 6,270,000
Rfdg. (Medical Ctr. Fing. Proj.):
5.25% 8/1/04 Baa1 915,000 927,581
5.50% 8/1/22 Baa1 10,000,000 9,775,000
San Diego County Regulation Trans. Commission
Sales Tax Rev. Second Series A:
6.25% 4/1/03 (FGIC Insured) Aaa 8,000,000 8,710,000
6% 4/1/04 (FGIC Insured) Aaa 5,900,000 6,408,875
6% 4/01/05 (AMBAC Insured) Aaa 1,500,000 1,640,625
San Diego County Wtr. Auth.
Wtr. Rev. Ctfs. of Prtns.
5.632% 4/25/07 (FGIC Insured) Aaa 5,000,000 5,300,000
San Diego Multi-Family Hsg. Rev.
(Island Gardens Apts. Proj.) Series B, 9.50%
10/20/20 LOC Swiss Bank AAA 1,585,000 1,604,210
San Diego Pub. Facs. Fing. Auth. Swr. Rev.:
Series B, 5.375% 5/15/15 (FGIC Insured) Aaa 1,000,000 998,750
6% 5/15/07 (FGIC Insured) Aaa 1,500,000 1,653,750
San Diego Swr. Rev. Series A, 5% 5/15/13
(AMBAC Insured) Aaa 2,000,000 1,940,000
San Francisco Bay Area Rapid Trans. Dist.
Sales Tax Rev. Rfdg. 6.75% 7/1/10
(AMBAC Insured) Aaa 1,500,000 1,760,625
San Francisco Bldg. Auth. Lease Rev. Dept.
Gen'l Svcs. Lease Series A:
5% 10/1/05 A 400,000 408,500
5% 10/1/08 A 2,640,000 2,646,600
San Francisco City & County Series 95 A&B,
6.50% 6/15/03 (FGIC Insured) Aaa 2,180,000 2,411,625
San Francisco City & County Int'l. Arpt. Rev. Rfdg.
Second Series:
6.20% 5/1/05 (AMBAC Insured) Aaa 2,300,000 2,501,250
5.125% 5/1/07 (FGIC Insured) Aaa 2,000,000 2,035,000
6% 5/1/13 (FGIC Insured) Aaa 1,075,000 1,128,750
San Francisco City & County Public Safety
Impt. Proj. Series B, 7.20% 6/15/05 A1 1,000,000 1,043,020
San Francisco City & County Pub. Utils. Wtr.
Rev. Rfdg. Series A, 6.50% 11/1/09 Aa 1,000,000 1,097,500
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
San Francisco City & County Redev.
Fing. Auth. Tax Allocation Rev. (Cap. Appreciation)
Series A:
0% 8/1/06 (FGIC Insured) Aaa $ 1,035,000 $ 676,631
0% 8/1/07 (FGIC Insured) Aaa 1,085,000 669,988
0% 8/1/08 (FGIC Insured) Aaa 1,085,000 632,013
0% 8/1/09 (FGIC Insured) Aaa 1,085,000 594,038
0% 8/1/10 (FGIC Insured) Aaa 1,085,000 557,419
(Redev. Proj.) Series B, 0% 8/1/10
(MBIA Insured) Aaa 1,475,000 757,781
San Francisco City & County Redev. Agcy.
7.75% 9/1/06
(Pre-Refunded to 9/1/97 @ 102.00) (c) Aaa 15,000,000 15,300,000
San Francisco City & County School Dist. Facs.
Impt. Proj. Series C, 6.20% 6/15/11
(FGIC Insured) Aaa 1,755,000 1,882,238
San Francisco City & County Swr. Rev.:
(Cap. Appreciation) Series B:
0% 10/1/06 (FGIC Insured) Aaa 3,690,000 2,393,888
0% 10/1/07 (FGIC Insured) Aaa 4,770,000 2,921,625
0% 10/1/08 (FGIC Insured) Aaa 1,600,000 924,000
Rfdg. 5.90% 10/1/08 (AMBAC Insured) Aaa 5,000,000 5,331,250
San Francisco Port. Comm. Rev. Rfdg.
5.50% 7/1/04 A 1,000,000 1,031,250
San Joaquin County Ctfs. of Prtn.
(General Hospital Proj.):
5.70% 9/1/01 A 2,250,000 2,314,688
5.80% 9/1/02 A 350,000 362,688
6.25% 9/1/13 A 2,500,000 2,606,250
6.625% 9/1/20 A 2,500,000 2,665,625
San Jose Arpt. Rev. Rfdg. 5.875% 3/1/07
(FGIC Insured) Aaa 1,905,000 2,081,213
San Jose Ctfs. of Prtn. Rfdg. (Communication
Ctr. Proj.) 6.50% 5/1/10 (MBIA Insured) Aaa 5,000,000 5,393,750
San Jose Redev. Agcy. Tax Alloc. Merged Area
Redev. Proj. Rfdg. 6% 8/1/15 (MBIA Insured) Aaa 3,000,000 3,266,250
San Mateo County Trans. Dist. Series A,
5% 6/1/10 (MBIA Insured) Aaa 3,040,000 3,051,400
Santa Barbara Ctfs. of Prtn.:
7.40% 5/15/15 A+ 2,000,000 2,145,000
Rfdg. 5.10% 3/1/03 A1 1,000,000 1,015,000
Santa Barbara Redev. Agcy. Tax Allocation Rfdg.
(Central City Redev. Proj.)
6% 3/1/05 (AMBAC Insured) Aaa 500,000 546,875
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Santa Clara County Fin. Auth. Lease Rev.
(VMC Fac Replacement Proj.) Series A:
7.75% 11/15/08 (AMBAC Insured) Aaa $ 1,175,000 $ 1,471,688
7.75% 11/15/09 (AMBAC Insured) Aaa 3,725,000 4,684,188
Santa Clara Elec. Rev. (Cap. Appreciation)
Series B, 0% 7/1/06 (MBIA Insured) Aaa 2,080,000 1,365,000
Santa Margarita/Dana Point. Auth. Rev. Rfdg.
(Impt. Dists. 1 & 2, 2A & 8) Series A:
7.25% 8/1/06 (MBIA Insured) Aaa 1,500,000 1,792,500
7.25% 8/1/07 (MBIA Insured) Aaa 2,200,000 2,648,250
7.25% 8/1/08 (MBIA Insured) Aaa 1,780,000 2,144,900
7.25% 8/1/12 (MBIA Insured) Aaa 1,865,000 2,261,313
Santa Rosa Waste Wtr. Rev. Rfdg. & Sub Reg'l.
Waste Wtr. Proj. Series A, 4.75% 9/1/16
(FGIC Insured) Aaa 900,000 824,625
Sequoia Hosp. Dist. Rev. Rfdg.:
4.90% 8/15/02 (Escrowed to Maturity) (c) Baa 1,225,000 1,252,563
5% 8/15/03 (Escrowed to Maturity) (c) Baa 1,285,000 1,321,944
South Orange County Pub. Fing. Auth. Spl. Tax Rev.:
Rfdg. (Sr. Lien) 7% 9/1/10 (MBIA Insured) Aaa 3,300,000 3,922,875
Series C:
7.50% 8/15/06 (FGIC Insured) Aaa 2,000,000 2,420,000
7.50% 8/15/07 (FGIC Insured) Aaa 2,290,000 2,790,938
8% 8/15/09 (FGIC Insured) Aaa 3,650,000 4,658,313
Southern California Pub. Pwr. Auth. Pwr. Proj. Rev.:
(Multiple Proj.):
6.75% 7/1/10 A 1,400,000 1,599,500
6.75% 7/1/11 A 6,500,000 7,442,500
Rfdg.:
(Mead Adelanto Proj.) Series A:
4.75% 7/1/16 (AMBAC Insured) Aaa 2,000,000 1,807,500
4.875% 7/1/20 (AMBAC Insured) Aaa 2,300,000 2,093,000
(Palo Verde Proj.) Series A:
5.50% 7/1/05 (AMBAC Insured) Aaa 5,000,000 5,306,250
6% 7/1/07 (AMBAC Insured) Aaa 1,100,000 1,210,000
Series A, 5% 7/1/15 (AMBAC Insured) Aaa 5,500,000 5,259,375
Series 11, 0% 7/1/15 (Escrowed to Maturity) (c) Aaa 300,000
268,500
Southern California Pub. Pwr. Auth. Transmission
Proj. Rev. Rfdg. (Southern Transmission Proj.):
Series A, 6% 7/1/06 (MBIA Insured) Aaa 2,000,000 2,205,000
5.50% 7/1/20 Aa3 1,000,000 978,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Stanislaus County Ctfs. of Prtn. Rfdg.
5.25% 5/1/14 (MBIA Insured) Aaa $ 1,500,000 $ 1,494,375
Sulpher Springs Unified School Dist. Series A:
0% 9/1/07 (MBIA Insured) Aaa 4,445,000 2,728,119
0% 9/1/08 (MBIA Insured) Aaa 4,745,000 2,746,169
0% 9/1/09 (MBIA Insured) Aaa 2,485,000 1,351,219
0% 9/1/12 (MBIA Insured) Aaa 2,750,000 1,237,500
Tahoe-Truckee Joint Unified School Dist. (Cap.
Appreciation) Series A, 0% 9/1/10 Aaa 6,625,000 3,387,031
University of California Rev. Rfdg.
(Multiple Purp. Projs.):
Series C, 9% 9/1/02 (AMBAC Insured) Aaa 100,000 120,750
Series C, 4.75% 9/1/16 (AMBAC Insured) Aaa 5,000,000 4,543,750
Series D, 6.10% 9/1/10 (MBIA Insured) Aaa 2,000,000 2,135,000
Upland Ctfs. of Prtn. Rfdg.
(San Antonio Commty. Hosp.):
5.25% 1/1/08 A 3,700,000 3,704,625
5% 1/1/18 A 2,500,000 2,281,250
5.25% 1/1/13 A 8,500,000 8,213,125
West Covina Queen of the Valley Hosp. Ctfs. of Prtn.:
5.90% 8/15/02 A2 875,000 918,750
6.00% 8/15/03 A2 925,000 979,344
6.125% 8/15/04 A2 980,000 1,047,375
6 1/2% 8/15/24 A2 3,200,000 3,408,000
TOTAL MUNICIPAL BONDS
(Cost $1,088,552,706) 1,152,130,659
MUNICIPAL NOTES (A) - 2.8%
CALIFORNIA - 2.8%
California Poll. Cont. Fing. Auth. Poll. Cont. Rev.
Rfdg. (Pacific Gas & Elec.) Series G,
3.50% VRDN (e) VMIG 1 4,900,000 4,900,000
California Poll. Cont. Fing. Auth. Resource
Recovery Rev.:
(Malaga Proj.) Series A, 3.55%
LOC Bank of America Nat'l. Trust &
Savings, VRDN (e) P-1 100,000 100,000
(Rocklin Proj.) Series A, 3.55%
LOC Security Pacific Nat'l. Bank, VRDN (e) P-1 3,100,000
3,100,000
California Poll. Cont. Fin. Auth. Solid Waste Disp.
Rev. (Shell Oil Co.) (Martinez Proj.)
Series 1994 A, 3.45% 10/1/24 VRDN (e) VMIG 1 8,100,000 8,100,000
Chula Vista Ind. Dev. Rev. Rfdg.
(San Diego Gas & Electric) 3.75% VDRN (e) VMIG 1 5,200,000
5,200,000
MUNICIPAL NOTES - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Fresno County Tax & Rev. TRAN 4.75% 9/29/97 SP-1 $ 4,000,000 $
4,002,800
Irvine California Ranch Wtr. Dist. Consolidated
Rfdg. Series A, 3.35% 5/1/09 VRDN VMIG 1 2,700,000 2,700,000
Los Angeles Commty. Redev. Agcy. Multi-Family
Hsg. Rev. (Promenade Towers) 3.20%
LOC Tokai Bank, VRDN VMIG 1 1,000,000 1,000,000
Los Angeles County Metropolitan Trans. Auth.
Rev. Participating VRDN, Series SGB-1, 3.55%
(Liquidity Facility Societe Generale, France) (j) AAA 1,975,000
1,975,000
Orange County Various Sanitation Dist. Ctfs.
of Prtn. Series C, 3.55% (FGIC Insured) VRDN VMIG 1 2,300,000
2,300,000
TOTAL MUNICIPAL NOTES
(Cost $33,377,800) 33,377,800
TOTAL INVESTMENTS - 100%
(Cost $1,121,930,506) $1,185,508,459
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
25 Treasury Bond Contracts Dec. 97 $ 2,818,750 $ (6,402)
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - .2%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(1.) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(2.) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(3.) Security collateralized by an amount sufficient to pay interest
and principal.
(4.) A portion of the security was purchased on a delayed delivery or
when-issued basis (see Note 2 of Notes to Financial Statements).
(5.) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(6.) Coupon is inversely indexed to a floating interest rate. The
price will be more volatile than the price of a comparable fixed rate
security. The rate shown is the rate at period end.
(7.) 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 $447,715.
(8.) Debt obligation initially issued at one coupon which converts to
a higher coupon at a specified date.
(9.) Debt obligation initially issued in zero coupon form which
converts to coupon form at a specified rate and date.
(10.) Provides evidence of ownership in one or more underlying
municipal bonds.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 73.9% AAA, AA, A 84.9%
Baa 7.2% BBB 6.1%
Ba 0.0% BB 0.1%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
The percentage not rated by Moody's or S&P amounted to 1.7%.
The distribution of municipal securities by revenue source, as a
percentage of total value of investment in securities, is as follows:
General Obligation 26.2%
Electric Revenue 21.7
Water and Sewer 13.2
Special Tax 10.8
Lease Revenue 9.6
Health Care 7.7
Escrow/Prerefunded 5.7
Others (individually less than 5%) 5.1
TOTAL 100.0%
INCOME TAX INFORMATION
At August 31, 1997 the aggregate cost of investment securities for
income tax purposes was $1,121,930,506. Net unrealized appreciation
aggregated $63,566,349, of which $64,376,036 related to appreciated
investment securities and $809,687 related to depreciated investment
securities.
At February 28, 1997, the fund had a capital loss carryforward of
approximately $4,673,000 which will expire on February 29, 2004.
On August 14, 21, and 28, 1997, the fund acquired substantially all of
the assets of Spartan California Municipal Income Fund, Spartan
California Intermediate Municipal Income Fund and Fidelity California
Municipal Income Fund, respectively. At the time of each merger,
Spartan California Municipal Income Fund, Spartan California
Intermediate Municipal Income Fund and Fidelity California Municipal
Income Fund had a capital loss carryforward of approximately
$6,071,000, $160,000, and $5,173,000, respectively, available to
offset future gains of the fund to the extent provided by regulations.
At August 31,1997, the fund was required to defer approximately
$4,961,000 of losses on futures contracts.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 31, 1997 (UNAUDITED)
ASSETS
INVESTMENT IN SECURITIES, AT VALUE (COST $1,121,930,506) - $ 1,185,508,459
SEE ACCOMPANYING SCHEDULE
RECEIVABLE FOR INVESTMENTS SOLD 2,182,549
INTEREST RECEIVABLE 15,125,460
OTHER RECEIVABLES 30,521
TOTAL ASSETS 1,202,846,989
LIABILITIES
PAYABLE TO CUSTODIAN BANK $ 19,653
PAYABLE FOR INVESTMENTS PURCHASED 16,430,320
REGULAR DELIVERY
DELAYED DELIVERY 4,086,936
PAYABLE FOR FUND SHARES REDEEMED 593,875
DISTRIBUTIONS PAYABLE 1,244,708
ACCRUED MANAGEMENT FEE 412,647
PAYABLE FOR DAILY VARIATION ON FUTURES CONTRACTS 13,585
OTHER PAYABLES AND ACCRUED EXPENSES 148,676
TOTAL LIABILITIES 22,950,400
NET ASSETS $ 1,179,896,589
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 1,121,811,117
ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) (5,486,079)
ON INVESTMENTS
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 63,571,551
NET ASSETS, FOR 98,288,380 SHARES OUTSTANDING $ 1,179,896,589
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE $12.00
PER SHARE ($1,179,896,589 (DIVIDED BY) 98,288,380 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED AUGUST 31, 1997 (UNAUDITED)
INTEREST INCOME $ 15,063,168
EXPENSES
MANAGEMENT FEE $ 1,046,001
TRANSFER AGENT, ACCOUNTING AND CUSTODIAN FEES AND EXPENSES 409,651
NON-INTERESTED TRUSTEES' COMPENSATION 2,334
REGISTRATION FEES 11,656
AUDIT 24,932
LEGAL 6,637
MISCELLANEOUS 200
TOTAL EXPENSES BEFORE REDUCTIONS 1,501,411
EXPENSE REDUCTIONS (35,711) 1,465,700
NET INTEREST INCOME 13,597,468
REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:
INVESTMENT SECURITIES 2,582,077
FUTURES CONTRACTS 89,254 2,671,331
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:
INVESTMENT SECURITIES 3,785,135
FUTURES CONTRACTS 11,265 3,796,400
NET GAIN (LOSS) 6,467,731
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 20,065,199
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED YEAR ENDED
AUGUST 31, 1997 FEBRUARY 28,
(UNAUDITED) 1997
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 13,597,468 $ 24,982,862
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) 2,671,331 2,416,131
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 3,796,400 1,035,365
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 20,065,199 28,434,358
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS (13,597,468) (25,083,634)
FROM NET INTEREST INCOME
FROM NET REALIZED GAIN - (127,452)
TOTAL DISTRIBUTIONS (13,597,468) (25,211,086)
SHARE TRANSACTIONS - NET INCREASE (DECREASE) (NOTE 6) 687,530,943 (15,304,565)
TOTAL INCREASE (DECREASE) IN NET ASSETS 693,998,674 (12,081,293)
NET ASSETS
BEGINNING OF PERIOD 485,897,915 497,979,208
END OF PERIOD $ 1,179,896,589 $ 485,897,915
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEARS ENDED FEBRUARY 28, TEN MONTHS
AUGUST 31, 1997 FEBRUARY 28, FEBRUARY 29, ENDED
FEBRUARY 28,
(UNAUDITED) 1997 1996 1995 1994 D 1993
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.810 $ 11.720 $ 11.120 $ 12.100 $ 12.430 $ 11.540
INCOME FROM INVESTMENT OPERATIONS .300 .599 .625 .685 .719 .611
NET INTEREST INCOME
NET REALIZED AND UNREALIZED GAIN (LOSS) .190 .096 .597 (.830) (.060) .890
TOTAL FROM INVESTMENT OPERATIONS .490 .695 1.222 (.145) .659 1.501
LESS DISTRIBUTIONS
FROM NET INTEREST INCOME (.300) (.602) (.622) (.685) (.719) (.611)
FROM NET REALIZED GAIN - (.003) - (.150) (.270) -
TOTAL DISTRIBUTIONS (.300) (.605) (.622) (.835) (.989) (.611)
NET ASSET VALUE, END OF PERIOD $ 12.000 $ 11.810 $ 11.720 $ 11.120 $ 12.100 $ 12.430
TOTAL RETURN B, C 4.21% 6.16% 11.25% (.91)% 5.41% 13.40%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000 OMITTED) $ 1,179,897 $ 485,898 $ 497,979 $ 477,044 $ 575,289 $
586,791
RATIO OF EXPENSES TO AVERAGE NET ASSETS .54% A, E .57% .58% .56% .57% .60% A
RATIO OF NET INTEREST INCOME TO AVERAGE NET ASSETS 5.02% A 5.19% 5.44% 6.16% 5.78% 6.17% A
PORTFOLIO TURNOVER RATE 28% A, F 17% 37% 29% 44% 32% A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD(S) SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
D EFFECTIVE MARCH 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET INTEREST INCOME PER SHARE MAY
REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
E FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
F THE PORTFOLIO TURNOVER RATE DOES NOT INCLUDE THE ASSETS ACQUIRED IN
THE MERGERS (SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1997 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan California Municipal Income (the fund) (formerly Fidelity
California Municipal Income) is a fund of Fidelity California
Municipal Trust (the trust) and is authorized to issue an unlimited
number of shares. The trust is registered under the Investment Company
Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust. The
financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized
matrix system and/or appraisals by a pricing service, both of which
consider market transactions and dealer-supplied valuations.
Securities for which quotations are not readily available are valued
at their fair value as determined in good faith under consistently
applied procedures under the general supervision of the Board of
Trustees. Short-term securities with remaining maturities of sixty
days or less for which quotations are not readily available are valued
at amortized cost or original cost plus accrued interest, both of
which approximate current value.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially 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.
EXPENSES. Most expenses of the 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 for futures and options transactions, and market discount.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and
may affect the per-share allocation between net investment income and
realized and unrealized gain (loss). Any taxable income or gain
remaining at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
WHEN-ISSUED SECURITIES. The fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place a month or more
after the date of the transaction. The price of the underlying
securities is fixed at the time the transaction is negotiated. The
market values of the securities purchased on a when-issued or forward
commitment basis are identified as such in the fund's schedule of
investments. The fund may receive compensation for interest forgone in
the purchase of a when-issued 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. The payables and receivables associated with the purchases
and sales of when-issued securities having the same settlement date
and broker are offset. When-issued securities that have been purchased
from and sold to different brokers are reflected as both payables and
receivables in the statement of assets and liabilities under the
caption "Delayed delivery." Losses may arise due to changes in the
market value of the underlying securities, if the counterparty does
not perform under the contract, or if the issuer does not issue the
securities due to political, economic, or other factors.
FUTURES CONTRACTS. The fund may use futures contracts to manage its
exposure to the bond markets and to fluctuations in interest rates.
Buying futures tends to increase the fund's exposure to the underlying
instrument, while selling futures tends to decrease the fund's
exposure to the underlying instrument or hedge other fund investments.
Futures contracts involve, to varying degrees, risk of loss in excess
of the futures variation margin reflected in the Statement of Assets
and Liabilities. The underlying face amount at value of any open
futures contracts at period end is shown in the schedule of
investments under the caption "Futures Contracts." This amount
reflects each contract's exposure to the underlying instrument at
period end. Losses may arise from changes in the value of the
underlying instruments or if the counterparties do not perform under
the contracts' terms. Gains (losses) are realized upon the expiration
or closing of the futures contracts. Futures contracts are valued at
the settlement price established each day by the board of trade or
exchange on which they are traded.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $98,917,887 and $67,589,355, respectively.
The market value of futures contracts opened and closed during the
period amounted to $30,429,580 and $36,411,662, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
MANAGEMENT FEE - CONTINUED
individual fund fee rate applied to the average net assets of the
fund. The group fee rate is the weighted average of a series of rates
and is based on the monthly average net assets of all the mutual funds
advised by FMR. The rates ranged from .1100% to .3700% for the period.
The annual individual fund fee rate is .25%. In the event that these
rates were lower than the contractual rates in effect during the
period, FMR voluntarily implemented the above rates, as they resulted
in the same or a lower management fee. For the period, the management
fee was equivalent to an annualized rate of .39% of average net
assets.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian and transfer and shareholder servicing agent for the fund.
UMB has entered into a sub-contract with Fidelity Service Company,
Inc. (FSC), an affiliate of FMR, under which FSC performs the
activities associated with the fund's transfer and shareholder
servicing agent and accounting functions. The fund pays 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 $283,677 and $111,137,
respectively.
For the period, the transfer agent fees were equivalent to an
annualized rate of
.10% of average net assets.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding
interest, taxes, brokerage commissions and extraordinary expenses)
above a specified percentage of the funds average net assets. During
the period, this expense limitation ranged from .55% to .53% of
average net assets and the reimbursement reduced expenses by $29,254.
Through December 31, 1999, FMR has agreed to limit the fund's total
operating expenses to an annual rate of .53% of average net assets.
In addition, the fund has entered into an arrangements with its
custodian and transfer agent whereby credits realized as a result of
uninvested cash balances were used to reduce a portion of the fund's
expenses. During the period, the fund's custodian and transfer agent
fees were reduced by $3,577 and $2,880, respectively, under these
arrangements.
6. SHARE TRANSACTIONS.
Share transactions were as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SHARES DOLLARS SHARES DOLLARS
SIX MONTHS ENDED SIX MONTHS ENDED YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31, FEBRUARY 28, FEBRUARY 28,
1997 1997 1997 1997
SHARES SOLD 6,056,595 $ 72,091,710 5,877,607 $ 68,032,151
ISSUED IN EXCHANGE FOR THE 33,067,158 398,128,585 - -
NET ASSETS OF SPARTAN
CALIFORNIA MUNICIPAL
INCOME FUND
ISSUED IN EXCHANGE FOR THE 5,773,285 69,510,354 - -
NET ASSETS OF SPARTAN
CALIFORNIA INTERMEDIATE
MUNICIPAL INCOME FUND
ISSUED IN EXCHANGE FOR THE 16,576,284 199,246,936 - -
NET ASSETS OF FIDELITY
CALIFORNIA INSURED
MUNICIPAL INCOME FUND
REINVESTMENT OF DISTRIBUTIONS 922,938 10,961,709 1,542,356 17,866,882
SHARES REDEEMED
(5,256,511) (62,408,351) (8,759,027) (101,203,598)
NET INCREASE (DECREASE) 57,139,749 $ 687,530,943 (1,339,064) $ (15,304,565)
</TABLE>
7. MERGER INFORMATION.
On August 14, August 21, and August 28, 1997, the fund acquired all of
the assets and assumed all of the liabilities of Spartan California
Municipal Income Fund, Spartan California Intermediate Municipal
Income Fund and Fidelity California Insured Municipal Income Fund
(target funds), respectively. Each acquisition was approved by the
shareholders of the target funds on August 4, 1997. Based on the
opinion of fund counsel, each reorganization qualified as a tax-free
reorganization for federal income tax purposes with no gain or loss
recognized to the funds or their shareholders.
The fund's acquisition of Spartan California Municipal Income Fund was
accomplished by an exchange of 33,067,158 shares of the fund for
36,795,617 shares of Fidelity California Municipal Income on August
14, 1997(each valued at $10.82). Spartan California Municipal Income
Fund's net assets, including $21,268,440 of unrealized appreciation,
were combined with the fund for total assets after the acquisition of
$925,132,176.
The fund's acquisition of Spartan California Intermediate Municipal
Income Fund was accomplished by an exchange of 5,773,285 shares of the
fund for 6,889,034 shares of Fidelity California Municipal Income on
August 21, 1997 (each valued at $10.09). Spartan California
Intermediate Municipal Income Fund's net assets, including $2,672,432
of unrealized appreciation, were combined with the fund for total
assets after the acquisition of $999,946,418.
7. MERGER INFORMATION - CONTINUED
The fund's acquisition of Fidelity California Insured Municipal Income
Fund was accomplished by an exchange of 16,576,284 shares of the fund
for 18,868,081 shares of Fidelity California Municipal Income on
August 28, 1997 (each valued at $10.56). Fidelity California Insured
Municipal Income Fund's net assets, including $9,712,838 of unrealized
appreciation, were combined with the fund for total assets after the
acquisition of $1,206,722,425.
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate
the service, and on your first call, the system will help you create a
personal identification number (PIN) for security.
SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
0
*
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at
1-800-544-7272 for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND,
EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS
THAT YOU MAY HAVE A GAIN
OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY
MARKET FUNDS WILL BE ABLE TO
MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND
IS NOT INSURED OR
GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY
SALES CHARGES.
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
Boyce I. Greer, Vice President
Jonathan D. Short, Vice President
Arthur S. Loring, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE
