SPARTAN(registered trademark) CALIFORNIA INTERMEDIATE MUNICIPAL INCOME FUND
Telephone Voting Script
Introduction
HELLO, MR./MS. (SHAREHOLDER). MY NAME IS ___________. I AM CALLING ON
BEHALF OF FIDELITY INVESTMENTS FOLLOWING UP ON A RECENT FEDERAL EXPRESS
PACKAGE THEY SENT YOU REGARDING THE SPARTAN CALIFORNIA INTERMEDIATE
MUNICIPAL INCOME FUND. I'M ASSISTING FIDELITY IN CONNECTION WITH THE PROXY
VOTE TO APPROVE AN IMPORTANT PROPOSAL THAT AFFECTS YOUR FUND. I AM
CALLING YOU TO FOLLOW UP ON THE FEDERAL EXPRESS PACKAGE.
Q. HAVE YOU RECEIVED THE FEDERAL EXPRESS PACKAGE?
If NO: Confirm shareholder's address for the purpose of sending proxy
materials.
Q: COULD I PLEASE CONFIRM YOUR ADDRESS FOR THE PURPOSE OF SENDING PROXY
MATERIALS TO YOU VIA FEDERAL EXPRESS?
(If address is incorrect, please write down correct address at end of
script under "Comments" and forward to Fidelity.)
Tell the shareholder that a new package will be overnighted to him/her.
Ask the shareholder to review the material upon receipt and reconsider
his/her vote to abstain. Fidelity will provide a Federal Express envelope
to speed the return of his/her signed proxy. The customer will need to
call Federal Express, which will pick up the envelope at his/her
location. There is no charge for either the phone call or the pick-up.
Inform the shareholder that if he/she wishes to vote by fax or by
telephone, he/she may do so. Thank the shareholder for his/her time. (End
phone call.)
I WILL HAVE A NEW PROXY PACKAGE OVERNIGHTED TO YOU VIA FEDERAL EXPRESS.
PLEASE REVIEW THE MATERIAL WHEN YOU RECEIVE IT. THE FEDERAL EXPRESS
PACKAGE INCLUDES A LETTER FROM FIDELITY THAT ASKS YOU TO RECONSIDER YOUR
VOTE TO ABSTAIN. YOU MAY NOT BE AWARE THAT A VOTE TO ABSTAIN HAS THE SAME
EFFECT AS A VOTE AGAINST A PROPOSAL. THEREFORE, FIDELITY WOULD LIKE YOU TO
RECONSIDER YOUR VOTE TO ABSTAIN AND VOTE EITHER "YES" OR "NO" FOR THE
PROPOSAL.
IF YOU WOULD LIKE TO CHANGE YOUR VOTE, THERE ARE SEVERAL OPTIONS. YOU CAN
VOTE BY TELEPHONE, BY FAX OR BY RETURNING THE FEDERAL EXPRESS ENVELOPE THAT
FIDELITY WILL PROVIDE. FEDERAL EXPRESS WILL PICK UP THE ENVELOPE AT YOUR
LOCATION. THERE IS NO CHARGE FOR EITHER THE PHONE CALL OR THE PICK-UP.
PLEASE RESPOND PROMPTLY WHEN YOU RECEIVE THE PACKAGE TO ENSURE THAT YOUR
VOTE IS RECEIVED BEFORE THE SHAREHOLDER MEETING ON AUGUST 4TH. THANK YOU
FOR YOUR TIME THIS AFTERNOON/EVENING. (End call.)
If YES: Q: HAVE YOU REVIEWED THE MATERIAL?
If NO: PLEASE REVIEW THE MATERIAL AT YOUR EARLIEST CONVENIENCE.
SPECIFICALLY, PLEASE REVIEW THE LETTER FROM FIDELITY THAT ASKS YOU TO
RECONSIDER YOUR VOTE TO ABSTAIN. YOU MAY NOT BE AWARE THAT A VOTE TO
ABSTAIN HAS THE SAME EFFECT AS A VOTE AGAINST A PROPOSAL. THEREFORE,
FIDELITY WOULD LIKE YOU TO RECONSIDER YOUR VOTE TO ABSTAIN AND VOTE EITHER
"YES" OR "NO" FOR THE PROPOSAL.
IF YOU WISH TO CHANGE YOUR VOTE, YOU MAY DO SO VIA FEDERAL EXPRESS, FAX OR
A SIMPLE PHONE CALL TO D.F.KING. PLEASE REPLY PROMPTLY SO THAT YOUR VOTE
CAN BE COUNTED IN ADVANCE OF THE SHAREHOLDER MEETING SCHEDULED FOR AUGUST
4TH.
If shareholder sounds hostile:
Thank the shareholder for his/her time. (End call.)
THANK YOU FOR YOUR TIME THIS EVENING. (End call.)
If YES: Only answer questions using the proxy material. (See attached list
of approved Q&A). (DO NOT GUESS). If the shareholder has questions that
are account-specific or outside the scope of the proxy statement or if
he/she would like to discuss reasons for changing his/her vote, ask if
he/she would like to have a senior executive at Fidelity call to discuss
the proposal and answer any questions. Ask whether morning or afternoon is
preferable and note the issues and phone number on the log sheet.
If YES: Q. DO YOU HAVE ANY QUESTIONS?
[Are questions outside scope of proxy statement?]
If YES: ALTHOUGH I CANNOT ANSWER THAT QUESTION, WOULD YOU LIKE TO HAVE A
SENIOR EXECUTIVE AT FIDELITY CALL YOU BACK? I CAN ARRANGE TO HAVE SOMEONE
CALL YOU TO DISCUSS THE PROPOSAL AND ANSWER ANY QUESTIONS YOU MAY HAVE.
WOULD MORNING OR AFTERNOON BE A BETTER TIME FOR FIDELITY TO CONTACT YOU?
Note: If shareholder does not want to speak to Fidelity, thank shareholder
and end call.
WE APPRECIATE YOUR PARTICIPATION IN THIS IMPORTANT PROXY VOTE FOR YOUR
FUND. THANK YOU FOR YOUR TIME. (end call)
If No More Questions: If the shareholder has no more questions, ask if
he/she would like to reconsider his/her vote. Offer the shareholder the
opportunity to vote by telephone. Let the shareholder know that you will
be recording the next part of the call, to ensure accuracy in his/her vote.
Confirm the shareholder's identity by having him/her repeat his/her full
name, address and the last 4 digits of his/her social security number.
Record the shareholder's vote on the proposal.
- Inform the shareholder that a confirmation letter will be sent to
him/her, with a phone number to call if an error was
made in recording his/her vote. Thank the shareholder for his/her time,
and end the call.
Q. The letter in the Federal Express package from Fidelity asks you to
reconsider your vote to abstain. Would you like to reconsider your vote to
abstain and vote either "YES" or "NO" for the proposal?
If NO: WE APPRECIATE YOUR PARTICIPATION IN THIS IMPORTANT PROXY VOTE FOR
YOUR FUND. THANK YOU FOR YOUR TIME. (end call)
If YES: TO FACILITATE YOUR VOTING OF THE PROXY, YOU CAN VOTE BY TELEPHONE.
IF YOU WOULD LIKE TO VOTE BY TELEPHONE, THE NEXT PART OF OUR CALL WILL BE
RECORDED. THIS IS TO ENSURE ACCURACY OF YOUR VOTE. ALSO, WE WILL BE
SENDING YOU A CONFIRMATION LETTER FOR YOUR RECORDS WITH A PHONE NUMBER TO
CALL IN CASE ANY ERROR WAS MADE IN RECORDING YOUR VOTE.
Q. WOULD YOU LIKE TO VOTE BY TELEPHONE?
If NO: WE APPRECIATE YOUR PARTICIPATION IN THIS IMPORTANT PROXY VOTE FOR
YOUR FUND. THANK YOU FOR YOUR TIME. (end call)
If YES: Confirm the shareholder's identity by having him/her repeat their
full name, address and the last 4 digits of his/her social security number.
Record the shareholder's vote on the proposal.
Q. COULD I PLEASE HAVE THE LAST FOUR DIGITS OF YOUR SOCIAL SECURITY
NUMBER? (If it doesn't match, ask for the last four digits of the social
security number on the account.)
(If customer does not feel comfortable giving any part of his/her social
security number, empathize and say that we require identification through
this method to take a vote over the phone. If the customer is still
uncomfortable, explain that while you cannot take the vote over the phone,
they can vote by returning the signed proxy card by Federal Express.)
I UNDERSTAND THAT YOU MAY FEEL UNCOMFORTABLE GIVING PART OF YOUR SOCIAL
SECURITY NUMBER OVER THE PHONE. IT IS PART OF OUR REQUIRED PROCEDURES,
HOWEVER, TO ENSURE PROPER IDENTIFICATION BEFORE WE TAKE ANY VOTES OVER THE
PHONE. IS THIS OK WITH YOU? (If customer agrees, proceed with vote. If
customer doesn't agree, thank him for his/her time and end call.)
DOES NOT AGREE TO GIVE LAST FOUR DIGITS OF SSN: UNFORTUNATELY, I WILL NOT
BE ABLE TO TAKE YOUR VOTE OVER THE PHONE. AT YOUR EARLIEST CONVENIENCE,
PLEASE REVIEW THE LETTER FROM FIDELITY AND VOTE YOUR SHARES BY SIGNING,
DATING AND MAILING THE PROXY CARD IN THE FEDERAL EXPRESS ENVELOPE PROVIDED.
If NO: WE APPRECIATE YOUR PARTICIPATION IN THIS IMPORTANT PROXY VOTE FOR
YOUR FUND. THANK YOU FOR YOUR TIME. (end call)
AGREES TO GIVE LAST FOUR DIGITS OF SSN:
IF YOU WOULD LIKE TO VOTE BY TELEPHONE, I WILL READ YOU THE PROPOSAL AND
ASK YOU WHETHER YOU VOTE "FOR" OR "AGAINST" THE PROPOSAL: (Note that their
current vote is "Abstain" )
THE MERGER PROPOSAL IS: "TO APPROVE AN AGREEMENT AND PLAN OF
REORGANIZATION BETWEEN SPARTAN CALIFORNIA INTERMEDIATE MUNICIPAL INCOME
FUND AND FIDELITY CALIFORNIA MUNICIPAL INCOME FUND."
DO YOU VOTE "FOR" OR "AGAINST" ?
THANK YOU. AS I MENTIONED, I'LL BE SURE TO SEND A CONFIRMATION OF YOUR
VOTE TO YOU BY MAIL. THANKS FOR YOUR TIME THIS EVENING. (End call.)
SPARTAN(registered trademark) CALIFORNIA INTERMEDIATE MUNICIPAL INCOME FUND
FAX INSTRUCTIONS
[For customers who would like to fax their vote to the proxy tabulator:]
IF YOU WOULD LIKE, YOU CAN FAX YOUR SIGNED PROXY CARD TO THE PROXY
TABULATOR. THE FAX NUMBER IS 1-888-451-8683. IF YOU CHOOSE TO FAX, PLEASE
FAX BOTH THE FRONT AND BACK OF YOUR CARD.
SPARTAN(registered trademark) CALIFORNIA INTERMEDIATE MUNICIPAL INCOME FUND
Script for Leaving a Message on an Answering Machine
HELLO, MR./MS. (SHAREHOLDER). MY NAME IS ___________. I AM CALLING ON
BEHALF OF FIDELITY INVESTMENTS FOLLOWING UP ON A RECENT PROXY MAILING THEY
SENT YOU VIA FEDERAL EXPRESS REGARDING THE SPARTAN(registered trademark)
CALIFORNIA INTERMEDIATE MUNICIPAL INCOME FUND. WE ARE ASSISTING FIDELITY
IN CONNECTION WITH THE PROXY VOTE TO APPROVE AN IMPORTANT PROPOSAL THAT
AFFECTS YOUR FUND.
IN THE MATERIALS PROVIDED BY FIDELITY, THERE IS A LETTER THAT ASKS YOU TO
RECONSIDER YOUR VOTE TO "ABSTAIN". YOU MAY NOT BE AWARE THAT A VOTE TO
"ABSTAIN" HAS THE SAME EFFECT AS A VOTE AGAINST THE PROPOSAL. IF YOU
WOULD LIKE TO CHANGE YOUR VOTE, PLEASE SIGN, DATE AND RETURN THE PROXY CARD
IN THE FEDERAL EXPRESS ENVELOPE PROVIDED TO YOU. IF YOU HAVE ANY QUESTIONS
ABOUT THE PROPOSAL OR DID NOT RECEIVE THE FEDERAL EXPRESS PACKAGE, PLEASE
CALL D.F. KING AT 1-800-628-8538. THANK YOU FOR YOUR TIME.
SPARTAN(registered trademark) CALIFORNIA INTERMEDIATE MUNICIPAL INCOME FUND
LOG SHEET
Date__________________
DF King Rep_________________
Address Correction
Social Security No. (record from database; do not ask
shareholder)________________
Shareholder Name_______________________________________________________
Street Address _________________________________________________________
City_________________________State_____________Zip Code_________________
Materials to Be Sent
Proxy Card Only ________
Full Proxy Kit __________
Comments
Notable Shareholder Response____________________________________________
_____________________________________________________________________
_____________________________________________________________________
Issues/Best Time to
Call____________________________________________________
______________________________________________________________________
______________________________________________________________________
Was Shareholder Transferred to Fidelity Representative?
Yes_______No________
Fidelity to contact this shareholder? (List issues above)
Yes_______No________
Q&A FOR SPARTAN CA INTERMEDIATE
WHAT PROPOSALS AM I BEING ASKED TO VOTE ON?
(solid bullet) (solid bullet)As a shareholder in Spartan California
Intermediate Municipal Income Fund, you are being asked to reconsider your
vote to abstain on the proposal: To approve a merger of Spartan California
Intermediate Municipal Income Fund into Fidelity California Municipal
Income Fund. (Proposal 2)
There are also separate proposals to approve mergers of Spartan California
Municipal Income Fund into Fidelity California Municipal Income Fund and
Fidelity California Insured Municipal Income Fund into Fidelity California
Municipal Income Fund.
Shareholders of each fund vote separately on the merger proposals. It will
not be necessary for all three proposals to be approved for any one of them
to take place.
WHAT IS THE REASON FOR AND ADVANTAGES OF THESE MERGERS?
Fidelity believes it can offer you a simpler and more efficient California
product line if the funds are combined. Shareholders would benefit from
the more efficient product line through lower expenses, guaranteed for more
than two years.
I ALREADY VOTED. WHY ARE YOU CALLING ME?
Fidelity would like to ask you to reconsider your vote to abstain. You may
not be aware that a vote to abstain has the same effect as a vote against a
proposal. Therefore, Fidelity would like you to reconsider your vote to
abstain and vote either "Yes" or "No" for the proposal.
WHAT IS THE IMPACT OF A VOTE TO ABSTAIN?
You may not be aware that a vote to abstain has the same effect as a vote
against a proposal. Therefore, Fidelity would like you to reconsider your
vote to abstain and vote either "Yes" or "No" for the proposal.
(solid bullet) (solid bullet)If you vote "YES", you will be voting in favor
of the merger and expense reduction.
(solid bullet) (solid bullet)If you vote "NO" or "ABSTAIN", you will be
voting against the merger and expense reduction.
WHAT ARE THE MAIN REASONS I SHOULD CHANGE MY VOTE TO ABSTAIN?
(solid bullet) (solid bullet)The proposed merger will result in lower
expenses. If shareholders approve the merger, the combined fund will
reduce its total expenses from 0.55% to 0.53% of average net assets,
guaranteed through December 31, 1999. The Board of Trustees of Spartan CA
Intermediate believes that the proposed merger is in the best interests of
shareholders.
(solid bullet) (solid bullet)The proposed merger is part of a wider
strategy by Fidelity to reduce the number of municipal bond funds it
manages. Spartan CA Intermediate is one of the smaller municipal bond
funds we manage. Combining it into a larger fund will allow Fidelity to
concentrate on a single, broad-based investment discipline for California
investors, and deliver lower operating expenses as well. Fidelity CA
Income generally invests in securities with somewhat longer maturities than
Spartan CA Intermediate, and therefore, its share price may fluctuate more
in response to changes in interest rates.
CAN I DISCUSS THE MERGER PROPOSAL WITH SOMEONE IN FIDELITY MANAGEMENT?
Yes. We can arrange to have a senior executive at Fidelity contact you to
discuss the proposal and answer any questions you may have.
DO THE FUNDS BEING MERGED HAVE SIMILAR INVESTMENT POLICIES?
Both funds are California municipal bond funds that seek double tax-free
income for California residents. Generally speaking, Fidelity CA Income
has a broader investment mandate than Spartan CA Intermediate.
(solid bullet) (solid bullet)SPARTAN CA INTERMEDIATE maintains a shorter
average maturity and has less interest rate sensitivity than Fidelity CA
Income. Fidelity CA Income generally invests in securities with somewhat
longer maturities than Spartan CA Intermediate, and therefore, its share
price may fluctuate more in response to changes in interest rates.
WHO IS THE FUND MANAGER FOR THESE FUNDS?
Jonathan Short currently manages both funds and is expected to manage the
combined fund.
HOW DO THE EXPENSE STRUCTURES AND FEES OF THE FUNDS COMPARE?
Both funds currently have the same expenses, equal to 0.55% of their
average net assets per year.
Although the funds' expenses are currently the same, they have different
contracts with Fidelity. SPARTAN CA INTERMEDIATE pays an "all-inclusive"
management fee to Fidelity Management & Research Company (FMR) at a rate of
0.55% of average net assets which covers substantially all fund expenses.
FIDELITY CA INCOME has an expense structure that charges separately for
management fees and other operating expenses. As of April 1, 1997, FMR has
voluntarily agreed to reimburse the fund to the extent that the total
operating expenses exceed 0.55% of average net assets.
If the merger is approved, the combined fund will retain Fidelity CA
Income's current expense structure. However, FMR has agreed to limit the
combined fund's expenses to 0.53% of average net assets through December
31, 1999. This represents an expense reduction of 0.02% of the fund's
average net assets per year. After that date, the combined fund's expenses
could increase.
WHAT WILL BE THE NAME OF THE SURVIVING FUND AFTER THE MERGERS ARE COMPLETE?
Upon approval of the Spartan CA Income merger, the combined fund's name
will be changed to Spartan California Municipal Income Fund.
WHAT HAPPENS IF THE PROPOSAL FOR MY FUND IS NOT APPROVED?
The meeting may be adjourned to permit further solicitation of proxy votes.
WHAT ARE THE FEDERAL TAX IMPLICATIONS OF THE MERGER?
The mergers will not be a taxable event (i.e., no gain or loss will be
recognized) to any of the funds or their shareholders.
WHAT WILL BE THE SIZE OF FIDELITY CA INCOME AFTER THE MERGER AND HOW HAS
THE FUND PERFORMED?
If all three merger proposals pass, the combined fund will have over $1
billion in assets. For calendar year 1995, Fidelity CA Income returned
19.17% compared with 17.45% for the Lehman Brothers Municipal Bond Index.
For calendar year 1996, Fidelity CA Income returned 4.76% compared with
4.43% for the Lehman Brothers Municipal Bond Index.
For calendar year 1996, Spartan CA Intermediate returned 4.68% compared
with 4.43% for the Lehman Brothers Municipal Bond Index.
HOW WILL YOU DETERMINE THE NUMBER OF SHARES OF FIDELITY CA INCOME THAT I
WILL RECEIVE?
As of 4 P.M. Eastern Time on the Closing Date of each merger, shareholders
will receive the number of full and fractional shares of Fidelity CA Income
that is equal in value to the aggregate net asset value of their shares on
that date. Closing Dates for each fund are listed below:
FUND MERGES INTO CLOSING DATE
Spartan CA Income Fidelity CA Income August 14, 1997
Spartan CA Intermediate Fidelity CA Income August 21, 1997
Fidelity CA Insured Fidelity CA Income August 28, 1997
The Shareholder Meeting could be adjourned, or if other circumstances
arise, the Closing Dates may be adjusted.
WHAT IMPACT WILL THE MERGER HAVE ON THE SHARE PRICE OF FIDELITY CA INCOME?
The net asset value per share of Fidelity CA Income will not be changed by
the merger.
WHAT ARE MY OTHER INVESTMENT ALTERNATIVES?
Fidelity offers Spartan California Municipal Money Market, a money market
fund that invests in high quality, short-term municipal securities and
seeks current income exempt from federal and California state personal
income tax. As a money market fund, it seeks to maintain a stable $1.00
net asset value. The total return on Spartan California Municipal Money
Market Fund for calendar 1996 was 3.19%.
Additional California municipal bond funds are available through Fidelity
by calling FundsNetwork at 1-800-544-9697.
HOW DO I VOTE MY SHARES?
To Vote by Federal Express
To facilitate receiving your voted proxy as quickly as possible, we have
enclosed a proxy card. To cast your ballot, simply record your vote on the
proxy card. You can mail your signed proxy card in the Federal Express
envelope provided.
To use this return envelope, call Federal Express at 1-800-238-5355 and
press "*" to arrange a pick-up. Federal Express will pick up the envelope
at your location. There is no charge to you for sending the overnight
package.
To Vote by Fax
Voting by fax is also quick and easy. If you would like to vote by fax, be
sure to fax both the front and back of your signed proxy card. The
toll-free fax number is 1-888-451-8683.
To Vote by Telephone
You also have the option of voting your shares by telephone. If you would
like to vote by telephone, call D.F. King toll-free at 1-800-628-8538.
After verifying your identity, D.F. King can very quickly take your vote by
telephone.
