SPARTAN(REGISTERED TRADEMARK)
CALIFORNIA MUNICIPAL
FUNDS
AND
FIDELITY
CALIFORNIA MUNICIPAL
MONEY MARKET FUND
SEMIANNUAL REPORT
AUGUST 31, 1998
(FIDELITY_LOGO_GRAPHIC) (REGISTERED TRADEMARK)
CONTENTS
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<S> <C> <C>
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
4 PERFORMANCE
7 FUND TALK: THE MANAGER'S OVERVIEW
10 INVESTMENT CHANGES
11 INVESTMENTS
29 FINANCIAL STATEMENTS
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
33 PERFORMANCE
35 FUND TALK: THE MANAGER'S OVERVIEW
37 INVESTMENT CHANGES
38 INVESTMENTS
50 FINANCIAL STATEMENTS
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
54 PERFORMANCE
56 FUND TALK: THE MANAGER'S OVERVIEW
58 INVESTMENT CHANGES
59 INVESTMENTS
71 FINANCIAL STATEMENTS
NOTES 75 NOTES TO THE FINANCIAL STATEMENTS
</TABLE>
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 FUNDS. THIS REPORT IS NOT
AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE
(PHOTO_OF_EDWARD_C_JOHNSON_3D)DEAR SHAREHOLDER:
The dramatic volatility we've seen in recent months in the world's
stock and bond markets might seem at first glance to be unprecedented
in its scope and duration. In fact, however, the U.S. stock market has
declined by more than 10% 12 times just since 1970, only to recover
and go on to new highs each time. As has been the case recently,
segments of the bond market - most notably U.S. Treasuries -
frequently have thrived in such periods as investors seek a safer home
for their funds.
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
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
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 returns and dividends
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1998 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
SPARTAN CA MUNICIPAL INCOME 3.19% 8.81% 34.01% 118.75%
LB CALIFORNIA MUNICIPAL BOND 3.42% 8.91% 37.03% N/A
CALIFORNIA MUNICIPAL DEBT FUNDS AVERAGE 3.27% 8.51% 32.84% 114.27%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, past 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 107 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, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
SPARTAN CA MUNICIPAL INCOME 8.81% 6.03% 8.14%
LB CALIFORNIA MUNICIPAL BOND 8.91% 6.50% N/A
CALIFORNIA MUNICIPAL DEBT FUNDS AVERAGE 8.51% 5.83% 7.90%
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
Spartan CA Muni Income LB Municipal Bond
00091 LB015
1988/08/31 10000.00 10000.00
1988/09/30 10217.71 10181.00
1988/10/31 10455.60 10360.19
1988/11/30 10335.63 10265.29
1988/12/31 10519.70 10370.30
1989/01/31 10666.05 10584.76
1989/02/28 10563.37 10463.99
1989/03/31 10547.87 10438.98
1989/04/30 10853.89 10686.80
1989/05/31 11083.82 10908.76
1989/06/30 11224.99 11056.90
1989/07/31 11326.70 11207.39
1989/08/31 11189.01 11097.67
1989/09/30 11203.43 11064.60
1989/10/31 11315.02 11199.92
1989/11/30 11490.94 11395.92
1989/12/31 11537.16 11489.13
1990/01/31 11456.47 11434.79
1990/02/28 11602.90 11536.56
1990/03/31 11628.57 11540.02
1990/04/30 11462.80 11456.47
1990/05/31 11738.30 11706.57
1990/06/30 11846.20 11809.47
1990/07/31 12029.25 11983.07
1990/08/31 11862.74 11809.07
1990/09/30 11909.82 11815.80
1990/10/31 12063.72 12030.14
1990/11/30 12293.42 12272.07
1990/12/31 12339.94 12325.45
1991/01/31 12451.98 12490.86
1991/02/28 12497.96 12599.53
1991/03/31 12511.65 12604.07
1991/04/30 12659.19 12771.70
1991/05/31 12784.95 12885.24
1991/06/30 12787.80 12872.48
1991/07/31 12949.00 13029.27
1991/08/31 13065.02 13200.87
1991/09/30 13205.06 13372.74
1991/10/31 13368.12 13493.10
1991/11/30 13370.11 13530.74
1991/12/31 13593.52 13821.11
1992/01/31 13666.74 13852.62
1992/02/29 13690.05 13857.06
1992/03/31 13682.59 13862.18
1992/04/30 13790.88 13985.56
1992/05/31 13962.52 14150.17
1992/06/30 14180.45 14387.61
1992/07/31 14619.61 14818.95
1992/08/31 14416.85 14674.46
1992/09/30 14490.42 14770.43
1992/10/31 14221.82 14625.24
1992/11/30 14553.57 14887.18
1992/12/31 14778.08 15039.18
1993/01/31 14954.49 15214.08
1993/02/28 15638.32 15764.38
1993/03/31 15452.86 15597.75
1993/04/30 15591.48 15755.13
1993/05/31 15682.24 15843.67
1993/06/30 15934.97 16108.10
1993/07/31 15934.95 16129.20
1993/08/31 16323.52 16465.01
1993/09/30 16529.91 16652.55
1993/10/31 16558.13 16684.69
1993/11/30 16387.17 16537.70
1993/12/31 16763.27 16886.81
1994/01/31 16953.00 17079.66
1994/02/28 16484.61 16637.29
1994/03/31 15641.62 15959.82
1994/04/30 15707.32 16095.16
1994/05/31 15815.47 16234.71
1994/06/30 15653.85 16135.51
1994/07/31 15972.89 16431.28
1994/08/31 16027.87 16488.13
1994/09/30 15781.95 16246.08
1994/10/31 15394.76 15957.55
1994/11/30 15016.66 15669.04
1994/12/31 15274.41 16013.91
1995/01/31 15821.74 16471.59
1995/02/28 16334.42 16950.59
1995/03/31 16502.18 17145.35
1995/04/30 16505.32 17165.58
1995/05/31 17059.36 17713.33
1995/06/30 16838.00 17559.23
1995/07/31 16991.97 17725.69
1995/08/31 17190.70 17950.45
1995/09/30 17343.75 18064.08
1995/10/31 17635.71 18326.73
1995/11/30 17986.46 18630.77
1995/12/31 18203.02 18809.81
1996/01/31 18313.82 18951.83
1996/02/29 18172.46 18823.90
1996/03/31 17894.98 18583.33
1996/04/30 17836.42 18530.74
1996/05/31 17823.65 18523.33
1996/06/30 18059.55 18725.05
1996/07/31 18235.65 18895.44
1996/08/31 18268.51 18890.91
1996/09/30 18521.39 19155.38
1996/10/31 18763.15 19372.03
1996/11/30 19163.57 19726.54
1996/12/31 19068.60 19643.69
1997/01/31 19102.76 19680.81
1997/02/28 19291.16 19861.48
1997/03/31 19014.93 19596.73
1997/04/30 19178.08 19760.75
1997/05/31 19492.37 20057.96
1997/06/30 19705.69 20271.57
1997/07/31 20353.55 20833.10
1997/08/31 20103.69 20637.89
1997/09/30 20369.19 20882.86
1997/10/31 20470.09 21017.14
1997/11/30 20601.17 21140.72
1997/12/31 20938.80 21449.16
1998/01/31 21192.34 21670.52
1998/02/28 21199.87 21677.02
1998/03/31 21148.83 21696.09
1998/04/30 21030.62 21598.24
1998/05/31 21394.23 21940.15
1998/06/30 21443.49 22026.59
1998/07/31 21492.90 22081.88
1998/08/31 21875.19 22423.04
IMATRL PRASUN SHR__CHT 19980831 19980909 115821 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Spartan California Municipal Income Fund on August 31,
1988. As the chart shows, by August 31, 1998, the value of the
investment would have grown to $21,875 - a 118.75% 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 $22,423 - a 124.23% 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
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PAST SIX MONTHS YEARS ENDED YEAR ENDED YEARS ENDED
ENDED FEBRUARY 28, FEBRUARY 29, FEBRUARY 28,
AUGUST 31,
1998 1998 1997 1996 1995 1994
DIVIDEND RETURNS 2.42% 5.23% 5.37% 5.86% 5.96% 5.82%
CAPITAL RETURNS 0.77% 4.66% 0.79% 5.39% -6.87% -0.41%
TOTAL RETURNS 3.19% 9.89% 6.16% 11.25% -0.91% 5.41%
</TABLE>
TOTAL RETURN COMPONENTS include both dividend returns and capital
returns. A dividend return reflects the actual dividends paid by the
fund. A capital return reflects both the amount paid by the fund to
shareholders as capital gain distributions and changes in the fund's
share price. Both returns assume the dividends or capital gains, if
any, paid by the fund are reinvested.
DIVIDENDS AND YIELD
<TABLE>
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PERIODS ENDED AUGUST 31, 1998 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR
DIVIDENDS PER SHARE 4.81(CENTS) 29.24(CENTS) 58.10(CENTS)
ANNUALIZED DIVIDEND RATE 4.59% 4.73% 4.75%
30-DAY ANNUALIZED YIELD 4.23% - -
30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 7.29% - -
</TABLE>
DIVIDENDS per share show the income paid by the fund for a set period
and do not reflect any tax reclassifications. If you annualize this
number, based on an average share price of $12.33 over the past one
month, $12.27 over the past six months and $12.24 over the past one
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all 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 1998
federal and state income tax bracket but does not reflect the payment
of the federal alternative minimum tax, if applicable.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Against a backdrop of historically
high supply, vacillating consumer
demand and the strong
performance of U.S. Treasury
bonds, municipal bond performance
varied during the six-month period
that ended August 31, 1998.
During this time, the Lehman
Brothers Municipal Bond Index -
a measure of the municipal bond
market - returned 3.44%. In
contrast, the Lehman Brothers
Aggregate Bond Index - which
measures the performance of the
investment-grade taxable bond
market - posted a six-month return
of 4.58%. Much of the
underperformance relative to the
taxable market can be traced to an
imbalance in municipal bond
supply and demand. With interest
rates hovering at low levels early in
the period, issuers sought to
refinance their debt at these lower
rates. On the flip side, though, this
refinancing activity led to an
increased supply of municipal
bonds. Add to the mix a situation of
weakened demand, and muni
bond performance suffered
accordingly. As the period
progressed, issuers showed no signs
of putting on the brakes in terms of
supply. In May, for instance, the
largest single deal in municipal
bond history took place - a $3.5
billion issuance floated by the Long
Island Power Authority. While
demand picked up slightly in
August - due mostly to investors'
concerns with the volatile equity
markets - this supply/demand
scenario continued to play out
through August.
NOTE TO SHAREHOLDERS: Christine Thompson became Portfolio Manager of
Spartan California Municipal Income Fund on July 1, 1998.
Q. HOW DID THE FUND PERFORM, CHRISTINE?
A. For the six-month period that ended August 31, 1998, the fund had a
total return of 3.19%. To get a sense of how the fund did relative to
its competitors, the California municipal debt funds average returned
3.27% for the same six-month period, according to Lipper Analytical
Services. Additionally, the Lehman Brothers California Municipal Bond
Index - a broad measure of the performance of the state's municipal
bond market - returned 3.42% for the same six-month period. For the 12
months that ended August 31, 1998, the fund returned 8.81%, while the
California municipal debt funds average returned 8.51% and the Lehman
Brothers California Municipal Bond Index returned 8.91%.
Q. WHAT ROLE DOES THE LEHMAN BROTHERS CALIFORNIA MUNICIPAL BOND INDEX
PLAY IN MANAGING THE FUND?
A. The index is a representation of the overall market in which the
fund invests and includes most of the universe of California municipal
bonds. I manage the fund to have similar overall interest-rate risk to
its benchmark, but beyond that, the fund can vary significantly from
the index.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. The fund's holdings in bonds that were advance-refunded, as well as
many of its Baa-rated bonds, performed particularly well during the
past six months. Advance refundings occur when issuers refinance
outstanding debt and issue new debt at lower prevailing interest
rates. After being advance-refunded, the original bonds become backed
by U.S. Treasury securities. As a result, an advance-refunded muni
assumes Treasuries' very high credit quality - the highest available
in the nation - and usually rallies in response. During the past six
months, the fund's advance-refunded holdings in Sacramento
Co-Generation bonds were among its best performers. Baa-rated bonds,
on the other hand, benefited from the fact that there was a fairly
strong demand for them during a period when they were in short supply.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. Non-callable bonds - which can't be redeemed by their issuers
before maturity - lagged the overall California municipal bond market
recently. When a bond is called, it is redeemed by its issuer before
maturity, and callable bond holders often are faced with the
possibility of reinvesting the proceeds at lower interest rates.
That's what happened throughout much of the past year, and having a
relatively large stake in non-callable bonds was a plus for the fund's
performance. More recently, however, non-callable bonds lost a little
of their appeal as investors sold them and gravitated toward bonds
that had the potential to be advance-refunded.
Q. AS INTEREST RATES FELL AND MUNICIPAL BOND YIELDS DECLINED, WHAT
AREAS OF THE MARKET DID YOU LOOK TO FOR ATTRACTIVE YIELDS?
A. There were attractive opportunities in industrial development
bonds. Industrial development bonds are issued by municipalities on
behalf of a for-profit entity for purposes deemed in the public good.
For example, the fund owned bonds issued by the San Francisco Airport
Authority for the expansion of an airline's terminal. Because many
industrial development bonds are subject to the alternative minimum
tax (AMT), their issuers must offer relatively high bond yields in
order to attract investors. Over the past six months, that yield
advantage was about 10 to 15 basis points (0.10% to 0.15%) more than
fully tax-exempt municipal bonds.
Q. WHAT'S YOUR OUTLOOK FOR THE MUNICIPAL MARKET?
A. From historical measures, municipals are priced quite attractively
compared to their U.S. Treasury counterparts. One
indication of munis' inexpensive prices is that their yields are
roughly 90% of Treasury yields; historically, municipals yield between
65% and 80% of Treasuries. If municipal bond yields - which move in
the opposite direction of their prices - move back to their historical
relationship with Treasuries because of more favorable supply and
demand conditions, they are likely to perform relatively well.
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.
CHRISTINE THOMPSON ON THE
ASIAN TURMOIL AND ITS EFFECT
ON THE CALIFORNIA MUNICIPAL
MARKET:
"The decline in Asian demand for
semiconductors,
telecommunications equipment,
software and even agriculture
products already has curtailed
California exports to that region.
That slowdown has required an even
more watchful eye on issuers that
are exposed to importing and
exporting, primarily the state's
port authorities. They generate
revenue based on the amount of
goods that pass through them. So
far, the Asian turmoil hasn't meant
great problems for the ports. It's
true that exports from California
to Asia have fallen off dramatically.
However, imports of cheap Asian
goods to the state have mostly
offset that decline. If the Asian
problems become more protracted,
their impact on various California
municipal issuers could widen."
(solid bullet) General obligation bonds (GOs)
made up the fund's largest sector
concentration at 21.8% of
investments at the end of the
period. A GO is backed by the full
faith and credit - which includes
the taxing power - of a city, county,
state or other issuer, and is repaid
with general revenue including
taxes.
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, 1998,
more than $1.2 billion
MANAGER: Christine Thompson,
since July 1998; manager,
various Fidelity and Spartan
municipal income funds;
joined Fidelity in 1985
(checkmark)
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF AUGUST 31, 1998
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE SECTORS
6 MONTHS AGO
GENERAL OBLIGATION 21.8 25.1
ELECTRIC REVENUE 14.9 11.3
ESCROWED/PRE-REFUNDED 10.6 6.9
SPECIAL TAX 10.1 10.3
TRANSPORTATION 10.0 7.7
AVERAGE YEARS TO MATURITY AS OF AUGUST 31, 1998
6 MONTHS AGO
YEARS 14.2 14.9
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, 1998
6 MONTHS AGO
YEARS 7.2 7.2
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF AUGUST 31, 1998 AS OF FEBRUARY 28, 1998
AAA 56.7%
AA, A 26.5%
BAA 10.7%
NON-RATED 0.3%
SHORT-TERM
INVESTMENTS 5.8%
AAA 53.4%
AA, A 29.7%
BAA 12.2%
NON-RATED 0.3%
SHORT-TERM
INVESTMENTS 4.4%
ROW: 1, COL: 1, VALUE: 55.7
ROW: 1, COL: 2, VALUE: 26.5
ROW: 1, COL: 3, VALUE: 10.7
ROW: 1, COL: 4, VALUE: 1.3
ROW: 1, COL: 5, VALUE: 5.8
ROW: 1, COL: 1, VALUE: 52.4
ROW: 1, COL: 2, VALUE: 29.7
ROW: 1, COL: 3, VALUE: 12.2
ROW: 1, COL: 4, VALUE: 1.3
ROW: 1, COL: 5, VALUE: 4.4
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
AMOUNTS SHOWN ARE AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
INVESTMENTS AUGUST 31, 1998 (UNAUDITED)
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS IN SECURITIES
MUNICIPAL BONDS - 94.2%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - 93.7%
Alameda Hsg. Auth. Multi-Family Hsg. Rev.
(Independence Apts.) Series A, 7.50%
2/20/31 (GNMA Coll.) (Pre-Refunded
to 9/24/98 @102) (c) AAA $ 4,325 $ 4,412 010789AA
Buena Park Commty. Redev. Agcy. Tax
Allocation Rfdg. (Central Business Dist. Proj.)
Series A, 7.10% 9/1/14 BBB+ 3,500 3,809 119147CN
Burbank Redev. Agcy. Rfdg. Tax Allocation : 120823EQ
(City Ctr. Redev. Proj.) Series A,
5% 12/1/15 (FGIC Insured) Aaa 4,000 4,022 120823EQ
Series A, 5.75% 12/1/08 Baa1 4,655 4,949 120823DY
Cabrillo Unified School Dist. (Cap. Appreciation)
Series A, 0% 8/1/10 (AMBAC Insured) Aaa 2,150 1,252 127127FR
California Dept. Wtr. Resources Rev. (Central
Valley Proj.): 13066300 13066300
Series J-1, 7% 12/1/12 Aa2 1,000 1,256 13066300
Series J-3, 5.90% 12/1/05 Aa2 1,005 1,123 130663C9
Series T, 5.50% 12/1/08 Aa2 2,635 2,905 13066KGX
California Edl. Facs. Auth. Rev.: 130173R5
Rfdg.: 130174J2
(Chapman Univ.) 5.375% 10/1/16
(Connie Lee Insured) Aaa 2,000 2,072 130174J2
(Stanford Univ. Proj.) Series O, 5.125%
1/1/31 (d) Aaa 7,500 7,499 1301743Y
(Univ. of Southern California): 130174G2
Series A, 5.65% 10/1/10 Aa3 2,840 3,118 130174G2
Series A, 5.70% 10/1/15 Aa3 4,500 4,807 130174F6
(Pooled Facs. Prog.) Series 1987,
7.625% 11/1/12 (MBIA Insured) Aaa 185 188 130173R5
(Stanford Univ.) Series N, 5.20% 12/1/27 Aaa 25,750 26,104
130174U4
(Student Loan) (California Loan Prog.)
Series A, 6% 3/1/16 (MBIA Insured) (e) Aaa 4,900 5,183 130174Q5
(Univ. of Southern California) Series C,
5.125% 10/1/28 Aa3 7,725 7,697 130174Y7
California Franchise Tax Board Ctfs. of Partn.
Rfdg. 5.50% 10/1/06 A2 1,825 1,985 130664AT
California Gen. Oblig.: 130624GS
6.10% 11/1/01 A1 1,250 1,337 130621ZS
6.10% 2/1/02 A1 1,000 1,072 130621UH
7% 10/1/04 A1 1,000 1,160 130622QN
6.40% 2/1/05 A1 3,375 3,827 130622RV
6.90% 4/1/05 A1 2,350 2,732 130622PB
6.20% 9/1/05 A1 1,250 1,416 130622TK
6.50% 2/1/07 A1 1,000 1,165 130623ML
6.75% 4/1/07 A1 1,750 2,068 130623JV
6% 10/1/09 A1 6,850 7,833 130628PB
6.50% 9/1/10 A1 4,500 5,372 130624GS
7% 10/1/10 A1 2,500 3,103 130624FU
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Gen. Oblig.: 130624GS - continued
5.25% 10/1/13 A1 $ 1,700 $ 1,765 130628AU
5.25% 10/1/14 A1 3,000 3,103 130628AV
5.25% 10/1/17 A1 1,500 1,531 130628AY
5% 10/1/18 A1 10,000 9,975 130628H9
5% 10/1/23 A1 8,000 7,922 130628PR
California Health Facs. Fin. Auth. Rev.: 13033ACT
Rfdg.: 13033H4M
(Alexian Brothers-San Jose): 13033H4M
7.05% 1/1/09 (MBIA Insured) Aaa 4,500 4,764 13033H4M
7.125% 1/1/16 (MBIA Insured) Aaa 2,510 2,651 13033H4N
(Children's Hosp.): 13033AML
6% 7/1/03 (MBIA Insured) Aaa 1,200 1,309 13033AML
6% 7/1/06 (MBIA Insured) Aaa 1,500 1,683 13033AMP
(Sutter Health Sys.) Series C, 5.50% 8/15/07
(FSA Insured) Aaa 650 712 13033AXC
(Children's Hosp.) Series A, 6% 7/1/05
(MBIA Insured) Aaa 1,850 2,062 13033AMN
(Gould Med. Foundation) Series A,
7.30% 4/1/20 (Escrowed to Maturity) A 4,500 4,808 13033JBW
(Summit Med. Ctr.) Series A, 5.50% 5/1/05
(FSA Insured) Aaa 2,400 2,600 13033ASG
5.55% 8/15/25 (MBIA Insured) Aaa 4,720 4,841 13033ACT
California Hsg. Fin. Agcy. Rev. (Home Mtg.): 130329RG
Rfdg. 13033EQKSeries A, 5% 8/1/03 (MBIA Insured) Aaa 1,835 1,911
13033EQK
(Cap. Appreciation): 130329RG
Series A, 0% 8/1/23 (e) Aa2 1,805 268 13033CPJ
Series C, 0% 8/1/21 (e) Aa2 4,910 859 13033CTB
Series 1983 A, 0% 2/1/15 Aa2 8,187 1,741 130329QE
Series 1983 B, 0% 8/1/15 Aa2 170 31 130329RG
Series C: 13033CPZ
8.30% 8/1/19 (e) Aa2 680 695 1303296C
7.60% 8/1/30 (e) Aa2 4,905 5,093 13033CPZ
Series F, 7.875% 8/1/19 Aa2 650 664 13033CEC
Series I, 4.95% 8/1/28 (MBIA Insured) (e) Aaa 3,345 3,387
13033EH9
Series J, 4.85% 8/1/27 (MBIA Insured) (e) Aaa 3,500 3,528
13033E7G
Series L, 5.70% 8/1/25 (MBIA Insured) (e) Aaa 2,015 2,080
13066VBA
California Poll. Cont. Fin. Auth. Poll. Cont. Rev.: 130534XF
130534XF
Rfdg. (San Diego Gas & Elec.)
Series A, 5.90% 6/1/14 A2 4,000 4,482 130534XF
(General Motors Corp.) 5.50% 4/1/08 A2 1,500 1,527 130534UZ
California Pub. Cap. Impt. Fin. Auth. Rev.
(Pooled Proj.) Series B, 8.10% 3/1/18
(BIG Insured) Aaa 8,965 9,146 130552AS
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Pub. Wks. Board Lease Rev. 13068HMH
Rfdg.: 13068G5B
(California Commty. Colleges Prog.): 13068G5B
Series A, 5.875% 10/1/08 A $ 2,000 $ 2,185 13068GWQ
Series D, 5.375% 3/1/12 A 1,500 1,564 13068G5B
(Dept. of Corrections State Prison, Monterey
County Soledad II) Series D: 13068G4G
5.375% 11/1/11 A2 2,500 2,644 13068G4G
5.375% 11/1/12 A2 1,250 1,312 13068G4H
5.375% 11/1/13 A2 4,500 4,704 13068G4J
5.375% 11/1/14 A2 5,000 5,206 13068G4K
(California Commty. Colleges Prog.): 13068HMH
Series A, 5.25% 12/1/16 A2 4,450 4,533 13068HMH
Series B, 5.25% 3/1/09 A2 2,915 3,108 13068HMU
(California Science Ctr.) Series A: 13068HHX
4.60% 10/1/06 A2 1,060 1,088 13068HHX
4.80% 10/1/08 A2 1,275 1,321 13068HHZ
5% 10/1/10 A2 1,300 1,350 13068HJB
(Dept. of Corrections State Prison, Corcoran II): 13068GW6
Series A, 6% 1/1/05 (AMBAC Insured) Aaa 5,000 5,551 13068GV3
Series A, 5.50% 1/1/14 (AMBAC Insured) Aaa 3,000 3,185 13068GW6
(Dept. of Corrections State Prison, Madera): 13068GCV
13068GCV 13068GCV Series A, 7% 9/1/00 A2 1,000 1,061 13068GCV
Series E: 13068GVL
6% 6/1/07 A2 2,090 2,354 13068GVL
5.50% 6/1/15 A2 6,750 7,240 13068GVV
5.50% 6/1/19 A2 3,000 3,074 13068GVP
(Dept. of Corrections State Prison, Susanville) 13068GUA
Series D, 5.25% 6/1/15 (FSA Insured) Aaa 4,000 4,238 13068GUA
(Franchise Tax Board-PH II) Series A, 6.25%
9/1/11 (Pre-Refunded to 9/1/01 @102) (c) A2 1,150 1,251 13068GHG
(Library and Courts Annex Proj.) Series A,
5.50% 5/1/09 A2 1,290 1,403 13068HSG
(Trustees of California State Univ.) Series A,
5.50% 10/1/09 A2 2,710 2,956 13068HNF
(Various California State Univ. Proj.): 13068GRB
Series A: 13068GRB
6.50% 9/1/03 A 1,045 1,164 13068GG3
6.50% 9/1/04 A 1,090 1,230 13068GG4
6.10% 10/1/06 A2 1,210 1,350 13068GXE
6.30% 10/1/10 (Pre-Refunded to
10/1/04 @102) (c) A2 3,000 3,407 13068GXH
5.50% 6/1/14 Aa3 8,250 9,026 13068GRB
Series B: 13068GUX
6.40% 12/1/09 Aa3 3,700 4,368 13068GC4
5.55% 6/6/10 Aa3 3,195 3,513 13068GUW
5.50% 6/1/14 Aa3 2,750 2,858 13068GUX
5.50% 6/1/19 Aa3 2,000 2,049 13068GUY
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Statewide Commty. Dev. Auth. Rev.: 130909JJ
Rfdg. Ctfs. of Prtn (Hosp. Triad Healthcare): 130909CM
5.90% 8/1/01 (Escrowed to Maturity) (c) A+ $ 200 $ 212 130909CK
6.25% 8/1/06 (Escrowed to Maturity) (c) A+ 5,000 5,602 130909CM
Rfdg. Ctfs. of Prtn. (St. Joseph Health Sys.): 130909GB
5.50% 7/1/14 Aa3 4,500 4,652 130909GB
5.50% 7/1/23 Aa3 3,000 3,073 130909GH
Ctfs. of Prtn.: 130909JJ
(Cap. Appreciation) 0% 7/1/13
(MBIA Insured) INFL (f) Aaa 700 780 130909JH
(Catholic Healthcare West. Sys.):
5.476% 7/1/13 (MBIA Insured) Aaa 2,600 2,744 130909JJ
5.616% 7/1/13 (MBIA Insured) Aaa 6,000 6,356 130909JM
(Children's Hosp.) 6% 6/1/13
(MBIA Insured) Aaa 2,470 2,825 130909NE
(Odd Fellows) 5.375% 10/1/13 A+ 1,250 1,281 130907EP
(Sisters of Charity Leavenworth Sys.)
5% 12/1/14 Aa3 1,315 1,317 130909PQ
(St. Joseph Health Sys.) 5.50% 7/1/07 Aa3 1,425 1,539 13077TDG
(Villaview Commty. Hosp., Inc.)
Series A, 7% 9/1/09 A+ 1,995 2,180 130907AX
California Univ. Rev. Rfdg. (Multiple Purp. Proj.)
Series C: 914113UU
9% 9/1/02 (AMBAC Insured) Aaa 100 118 914113UE
4.75% 9/1/16 (AMBAC Insured) Aaa 5,000 4,905 914113UU
Campbell Ctfs. of Prtn. Rfdg. (Civic Ctr. Proj.)
6% 10/1/18 A2 4,965 5,232 134111BK
Carson Redev. Agcy. Redev. Proj.: 145750CZ
Area #1 Rfdg. (Tax Allocation): 145750CZ
6.375% 10/1/12 Baa1 3,965 4,256 145750CZ
6.375% 10/1/16 Baa1 2,000 2,136 145750DA
Area #2 Rfdg. (Tax Allocation): 145750DK
5.50% 10/1/02 Baa2 100 104 145750DK
5.875% 10/1/09 Baa2 2,000 2,096 145750DN
6% 10/1/13 Baa2 1,750 1,841 145750DP
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. Rfdg.
(Wtr. Sys. Impt. Proj.) Series A: 148370BK
7.25% 8/1/07 (MBIA Insured) Aaa 1,755 2,149 148370BC
7% 8/1/11 (MBIA Insured) Aaa 1,500 1,861 148370BJ
7% 8/1/12 (MBIA Insured) Aaa 1,000 1,252 148370BK
7% 8/1/13 (MBIA Insured) Aaa 4,740 5,963 148370BL
Central Valley Fin. Auth. Cogeneration Proj. Rev.
(Carson Ice Gen. Proj.): 155689AD
5.50% 7/1/01 BBB- 1,400 1,452 155689AD
6% 7/1/09 BBB- 4,800 5,107 155689AG
6.10% 7/1/13 (Pre-Refunded to
7/1/03 @ 102) (c) BBB- 2,000 2,220 155689AK
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Chino Basin Gen'l. Fin. Auth. Rev. Rfdg.
(Muni. Wtr. Dist. Swr. Sys. Proj.): 169498AL
7% 8/1/05 (AMBAC Insured) Aaa $ 1,185 $ 1,393 169498AL
7% 8/1/06 (AMBAC Insured) Aaa 1,145 1,363 169498AM
7% 8/1/09 (AMBAC Insured) Aaa 350 430 169498AQ
Clovis Unified School Dist. (Cap. Appreciation)
Series B: 189342QK
0% 8/1/02 (MBIA Insured) Aaa 300 258 189342QK
0% 8/1/03 (MBIA Insured) Aaa 3,485 2,869 189342QH
Coalinga Ctfs. of Prtn. 7% 4/1/10 BBB+ 1,655 1,732 19021CAP
Contra Costa County Ctfs. of Prtn.
(Merrithew Mem. Hosp.) (Cap. Appreciation): 21223TEJ
0% 11/1/13 (Escrowed to Maturity) (c) Aaa 6,805 3,287 21223TEJ
0% 11/1/14 (Escrowed to Maturity) (c) Aaa 3,000 1,370 21223TEK
Contra Costa Schools Fin. Auth. Rev. (Vista Unified
School Dist. School Sites) (Cap. Appreciation)
Series A, 0% 9/1/17 (AMBAC Insured)
(Pre-Refunded to 9/1/02 @ 36.34) (c) Aaa 3,420 1,062 21220EAQ
Contra Costa Trans. Auth. Sales Tax Rev.
Series A: 21221MBR
6% 3/1/03 (FGIC Insured) Aaa 2,530 2,750 21221MBR
6% 3/1/08 (FGIC Insured) Aaa 1,000 1,135 21221MCL
Desert Hosp. Dist. Hosp. Rev. Ctfs. of Prtn.
6.392% 7/28/20 (FSA Insured)
(Pre-Refunded to 7/1/02 @102) (c) Aaa 13,000 14,355 25041MAY
Duarte Ctfs. of Prtn. (City of Hope Med. Ctr.): 263584CT
6% 4/1/08 Baa1 4,930 5,218 263584CT
6.25% 4/1/23 Baa1 15,100 16,021 263584CS
East Bay Muni. Util. Dist.: 271013FS
Wastewtr. Treatment Sys. Rev. Rfdg. 6%
6/1/05 (FGIC Insured) Aaa 1,550 1,731 271013FS
Wtr. Sys. Rev. Rfdg.: 271014JC
6% 6/1/02 (FGIC Insured) Aaa 2,000 2,149 271014JC
6% 6/1/03 (FGIC Insured) Aaa 2,000 2,183 271014JD
6% 6/1/06 (FGIC Insured) Aaa 1,840 2,069 271014JG
6% 6/1/09 (AMBAC Insured) Aaa 1,000 1,081 271014FC
East Bay Reg'l. Park Dist. Series C,
6.50% 9/1/03 (FGIC Insured) Aaa 1,285 1,437 271015DW
Eastern Muni. Wtr. Dist. Wtr. & Swr. Rev.
Ctfs. of Prtn. 6.75% 7/1/12 (FGIC Insured) Aaa 3,600 4,410
276771AR
Elk Grove Unified School Dist. Spl. Tax Rfdg.
(Commty. Facs. Dist. #1) 287290DX:
6.50% 12/1/07 (AMBAC Insured) Aaa 1,340 1,579 287290DX
6.50% 12/1/24 (AMBAC Insured) Aaa 4,000 4,907 287290EH
Encintas Unified School Dist. (Cap. Appreciation): 292533DA
0% 8/1/03 (MBIA Insured) Aaa 1,750 1,441 292533DA
0% 8/1/04 (MBIA Insured) Aaa 1,750 1,377 292533DB
0% 8/1/10 (MBIA Insured) Aaa 1,000 583 292533DH
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Escondido Joint Pwrs. Fin. Auth. Lease Rev. Rfdg.
(California Ctr. for the Arts) (Cap. Appreciation)
0% 9/1/04 (AMBAC Insured) Aaa $ 570 $ 447 29634DBJ
Eureka Unified School Dist. Ctfs. of Prtn.
(Cap. Appreciation): 298522AD
Series A, 0% 9/1/27 (FSA Insured) (i) Aaa 660 720 298522AD
Series B, 0% 9/1/27 (FSA Insured) (i) Aaa 1,555 1,679 298522AE
Fairfield-Suisun Swr. Dist. Swr. Rev. Rfdg.
(Cap. Appreciation) Series A: 304730CR
0% 5/1/07 (MBIA Insured) Aaa 1,635 1,132 304730CQ
0% 5/1/08 (MBIA Insured) Aaa 2,085 1,371 304730CR
0% 5/1/09 (MBIA Insured) Aaa 2,080 1,296 304730CS
Folsom Pub. Fin. Auth. Local Agcy. Rev.
Series A, 7.25% 10/1/10 BBB+ 1,285 1,360 344392BB
Fontana Redev. Agcy. Tax Allocation Rfdg.
(Jurupa Hills Redev. Proj.) Series A,
7% 10/1/14 BBB+ 6,500 7,284 344619EP
Foothill/Eastern Trans. Corridor Agcy. Toll Rd. Rev.
(Cap. Appreciation) (Sr. Lien) Series A: 345105BM
0% 1/1/04 Baa 1,600 1,251 345105AK
0% 1/1/05 Baa 1,000 742 345105AL
0% 1/1/08 (i) Baa 2,000 1,529 345105BM
Foster City Pub. Fin. Auth. Rev. (Foster City Commty.
Dev. Proj. Loan) Series A: 350057BE
6% 9/1/06 A- 1,355 1,452 350057AN
6% 9/1/07 A- 1,440 1,540 350057AQ
5.50% 9/1/09 A- 370 392 350057BE
6% 9/1/13 A- 1,925 2,022 350057AP
5.80% 9/1/16 A- 1,000 1,055 350057BD
Fountain Valley Agcy. for Commty. Dev.
Tax Allocation (Ind. Area Redev. Proj.)
9.10% 1/1/15 BBB+ 1,745 1,775 350771BD
Fremont Unified School Dist. Alameda County
(Cap. Appreciation) Series F,
0% 8/1/09 (MBIA Insured) Aaa 1,000 616 357154R4
Inglewood Hosp. Rev. (Daniel Freeman Hosp., Inc.)
6.50% 5/1/01 (Escrowed to Maturity) (c) A+ 1,000 1,070 457098AK
Intermodal Container Transfer Facs. Joint Pwr.
Auth. Rev. Rfdg. (South Pacific Trans. Corp.)
Series A, 7.70% 11/1/14
LOC Industrial Bank of Japan A3 1,500 1,556 458925AK
Irvine Ranch Wtr. Dist. Joint Pwr. Agcy. Local
Pool Rev. Issue II, 8.25% 8/15/23
(Pre-Refunded to 9/16/98 @ 100) (c) A+ 30,540 30,592 463656BE
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Kern High School Dist. 7% 8/1/09
(Escrowed to Maturity) (c) A1 $ 1,090 $ 1,326 492246AT
King County Ctfs. of Prtn. 7.50% 7/1/04 - 2,490 2,601 494688AJ
La Quinta Redev. Agcy. Tax Allocation Rfdg.
(Redev. Proj. Area #1): 504194DY
7.30% 9/1/05 (MBIA Insured) Aaa 1,000 1,196 504194DY
7.30% 9/1/06 (MBIA Insured) Aaa 620 751 504194DZ
7.30% 9/1/11 (MBIA Insured) Aaa 555 708 504194EE
Livermore Redev. Agcy. Tax Allocation Rev.
(Livermore Redev. Proj.) Series A,
7.75% 8/1/09 - 895 910 53819TAL
Local Gov't. Fin. Auth. Rev. (Oakland Central Dist.)
(Cap. Appreciation): 539558FF
0% 9/1/08 (MBIA Insured) Aaa 3,710 2,404 539558FF
0% 9/1/09 (MBIA Insured) Aaa 3,565 2,188 539558FG
Long Beach Hbr. Rev.: 542424DG
Rfdg. 542424FK Series A: 542424FK
5.50% 5/15/08 (FGIC Insured) (e) Aaa 4,390 4,766 542424FK
6% 5/15/09 (FGIC Insured) (e) Aaa 3,000 3,383 542424FL
6% 5/15/06 (MBIA Insured) (e) Aaa 3,000 3,340 542424EA 542424FK
5.75% 5/15/07 (MBIA Insured) (e) Aaa 3,845 4,234 542424EB
5.50% 5/15/11 (MBIA Insured) (e) Aaa 700 744 542424EF
5.125% 5/15/13 (MBIA Insured) (e) Aa3 4,500 4,547 542424DG
5.50% 5/15/15 (MBIA Insured) (e) Aaa 3,710 3,848 542424EK
Los Angeles Commty. Redev. Agcy.
(Hollywood Redev. Proj.) Series C: 544389G8
5.50% 7/1/09 (MBIA Insured) Aaa 1,460 1,603 544389G8
5.50% 7/1/10 (MBIA Insured) Aaa 1,780 1,950 544389G9
Los Angeles County Ctfs. of Prtn.: 5446634Y
(Disney Parking Proj.) (Cap. Appreciation): 5446634Y
0% 3/1/10 Baa1 2,000 1,135 5446634E
0% 3/1/11 Baa1 1,950 1,047 5446634G
0% 3/1/12 Baa1 2,180 1,099 5446634J
0% 3/1/13 Baa1 6,490 3,089 5446634L
0% 3/1/18 Baa1 3,000 1,054 5446634W
0% 3/1/19 Baa1 3,175 1,057 5446634Y
0% 3/1/20 Baa1 1,000 316 5446634C
Correctional Facs. (Cap. Appreciation): 544663G7
0% 9/1/10 (MBIA Insured)
(Escrowed to Maturity) (c) Aaa 3,770 2,178 544663G7
0% 9/1/11 (MBIA Insured)
(Escrowed to Maturity) (c) Aaa 6,400 3,487 544663G8
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Los Angeles County Metropolitan Trans. Auth. 544712FC:
Sales Tax Rev. Rfdg. (Proposition A) 1st Tier Sr.
Series A, 5.25% 7/1/11 (MBIA Insured) Aaa $ 3,230 $ 3,406 544712HL
Sales Tax Rev.: 544712FC
(Proposition A) 1st Tier Sr. Series A,
5.90% 7/1/14 (MBIA Insured) Aaa 1,585 1,738 544712FC
(Proposition C) Second Series A: 544712CT
5.90% 7/1/02 (AMBAC Insured) Aaa 1,200 1,287 544712CT
5.90% 7/1/03 (AMBAC Insured) Aaa 1,655 1,802 544712CU
5.90% 7/1/04 (AMBAC Insured) Aaa 1,005 1,105 544712CV
5.90% 7/1/07 (AMBAC Insured) Aaa 1,730 1,951 544712CY
5.90% 7/1/08 (AMBAC Insured) Aaa 500 565 544712CZ
Los Angeles County Trans. Commission Sales Tax
Rev. 6% 7/1/23 (MBIA Insured)
(Pre-Refunded to 7/1/02 @ 102) (c) Aaa 20,000 21,884 545170HP
Los Angeles Ctfs. of Prtn. (California Health Facs.
Construction Loan Bay Hbr. Hosp. Inc.)
7.30% 4/1/20 A 3,000 3,183 544358GV
Los Angeles Dept. of Arpts. Rev.
(Los Angeles Int'l. Arpt.) Series D,
5.625% 5/15/12 (FGIC Insured) (e) Aaa 1,000 1,061 544435RT
Los Angeles Dept. of Wtr. & Pwr. Elec. Plant Rev.: 544508KA
Rfdg.: 544508KA
(Second Issue): 544508KA
4.75% 11/15/19 (FGIC Insured) Aaa 5,900 5,686 544508JZ
4.75% 11/15/19 (MBIA Insured) Aaa 4,000 3,855 544508KH
5.25% 11/15/26 (MBIA Insured) Aaa 17,760 17,949 544508KA
5.40% 11/15/31 (MBIA Insured) Aaa 4,000 4,078 544508JS
4.75% 8/15/12 (FGIC Insured) Aaa 6,035 6,041 544508JW
4.75% 8/15/16 (FGIC Insured) Aaa 2,700 2,633 544508KR
6.375% 2/1/20 Aa3 1,000 1,071 544508DH
Second Issue: 544509BW
9% 10/15/01 Aa3 110 127 544507JH
6.75% 10/15/04 (AMBAC Insured) Aaa 2,400 2,746 544509BW
4.75% 10/15/20 Aa3 1,800 1,722 544508GT
Los Angeles Hbr. Dept. Rev.: 544552EV
5.30% 8/1/06 (e) Aa3 2,000 2,137 544552EV
7.60% 10/1/18 (Escrowed to Maturity) (c) AAA 14,810 19,220
544552BQ
Los Angeles Unified School Dist. Ctfs. of Prtn.
Series A: 544648GY
5.25% 11/1/07 (FSA Insured) Aaa 1,435 1,548 544648GY
6% 7/1/14 (FGIC Insured) Aaa 1,200 1,381 544644BG
6% 7/1/15 (FGIC Insured) Aaa 1,000 1,146 544644BH
Los Angeles Wastewater Sys. Rev. Rfdg. Series B,
5% 6/1/02 (FGIC Insured) Aaa 2,485 2,584 544652B6
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 3,044 553751DN
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Madera County Ctfs. of Prtn. (Valley Children's
Hosp.) 6.25% 3/15/05 (MBIA Insured) Aaa $ 1,480 $ 1,664 556902BD
Manhattan Beach Unified School Dist.
(Cap. Appreciation) Series A,
0% 9/1/09 (FGIC Insured) Aaa 975 598 562785AN
592663LRMetropolitan Wtrwks Rev. Dist. of Southern California:
592663LR
5.808% 8/5/22 Aa2 2,600 2,819 592663LR
Series A, 5% 7/1/26 Aa2 6,500 6,434 592663SY
Modesto Ctfs. of Prtn.: 607715FE
(Commty. Ctr. Refing. Proj.) Series A: 607715FE
5.60% 11/1/14 (AMBAC Insured) Aaa 1,370 1,518 607715FC
5% 11/1/23 (AMBAC Insured) Aaa 2,500 2,518 607715FE 607715FF
(Golf Course Refing. Proj.) Series B,
5% 11/1/23 (FGIC Insured) Aaa 1,585 1,597 607715FF
Modesto Irrigation Dist. Ctfs. of Prtn.: 607762BL
Rfdg. & Cap. Impt. (Cap. Appreciation) Series A: 607762DC
0% 10/1/05 (MBIA Insured) Aaa 2,140 1,595 607762DC
0% 10/1/08 (MBIA Insured) Aaa 2,270 1,458 607762DF
0% 10/1/09 (MBIA Insured) Aaa 2,270 1,381 607762DG
0% 10/1/10 (MBIA Insured) Aaa 2,270 1,305 607762DH
(Geysers Geothermal Pwr. Proj.) Series 1986-A,
5% 10/1/17 A1 5,000 4,963 607762BL
Modesto Pub. Fin. Auth. Rev. (Cap. Impts. & Refing.
Proj.) 5.125% 9/1/33 (AMBAC Insured) Aaa 4,000 4,003 607796AR
Moreno Valley Unified School Dist. Ctfs. of Prtn.
(Land Acquisition) (Cap. Appreciation) Series F,
0% 9/1/11 (FSA Insured) (Pre-Refunded
to 9/1/02) (c)(i) Aaa 2,350 2,609 616872CT
Northern California Pwr. Agcy. Pub. Pwr. Rev.: 664843NV
Rfdg. (Geothermal Proj. #3) Series A,
5.50% 7/1/05 (AMBAC Insured) (g) Aaa 2,250 2,448 664843TD
7.50% 7/1/23 (AMBAC Insured)
(Pre-Refunded to 7/1/21 @ 100) (c) Aaa 3,825 5,128 664843NV
Northern California Transmission Rev.
(Ore Trans. Proj.) Series A, 7% 5/1/13
(MBIA Insured) Aaa 7,100 8,867 664850BL
Oakland Bldg. Auth. Lease Rev.
(Elihu M. Harris Proj.) Series A, 5% 4/1/23
(AMBAC Insured) Aaa 5,000 4,952 672324AX
Oakland Ctfs. of Prtn. Rfdg. (Oakland Museum)
(Cap. Appreciation) Series A, 0%, 4/1/07
(AMBAC Insured) Aaa 2,750 1,903 671900AR
Oakland Redev. Agcy. Sub-Tax Allocation
(Central Dist. Redev.) 5% 9/1/21
(MBIA Insured) Aaa 1,000 1,007 672321FF
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Ontario Redev. Fin. Auth. Rev.: 68304EAU 68304EAU
Rfdg. (Ontario Redev. Proj. #1): 68304ECA
6.65% 8/1/07 (MBIA Insured) Aaa $ 1,000 $ 1,184 68304ECA
6.75% 8/1/08 (MBIA Insured) Aaa 1,065 1,278 68304ECB
6.95% 8/1/11 (MBIA Insured) Aaa 1,000 1,241 68304ECE
68304EAU (Ctr. City Cimarron Proj. #1) (Cap. Appreciation):
68304EAU
0% 8/1/08 (MBIA Insured) Aaa 3,255 2,117 68304EAU
0% 8/1/09 (MBIA Insured) Aaa 3,260 2,008 68304EAV
0% 8/1/10 (MBIA Insured) Aaa 3,255 1,896 68304EAW
Orange County Local Trans. Auth. Sales Tax Rev.
1st. Series, 6% 2/15/08 (AMBAC Insured ) Aaa 2,500 2,826 684273DD
Orange County Pub. Fin. Auth. Waste Mgmt.
Sys. Rev. Rfdg.: 68428RAP
5.75% 12/1/09 (AMBAC Insured) (e) Aaa 1,620 1,789 68428RAM
5.75% 12/1/11 (AMBAC Insured) (e) Aaa 4,000 4,422 68428RAQ
5.25% 12/1/13 (AMBAC Insured) (e) Aaa 4,000 4,197 68428RAP
Orange County Wtr. Dist. Ctfs. of Prtn. Series A,
5.50% 8/15/09 (AMBAC Insured) Aaa 1,000 1,071 684420DJ
Palomar Pomerado Health Sys. Rev. Rfdg.
(Cap. Appreciation) 0% 11/1/05
(MBIA Insured) Aaa 3,075 2,284 69753EAY
Placer County Wtr. Agcy. Middle Fork Proj. Rev.
Series A, 3.75% 7/1/12 A+ 8,830 8,038 726022DV
Pleasanton Joint Pwrs. Fin. Auth. Rev. Reassessment
Series A: 728816AS
5.70% 9/2/01 Baa3 1,170 1,221 728816AQ
5.80% 9/2/02 Baa3 5,055 5,342 728816AS
6% 9/2/05 Baa3 2,360 2,569 728816AU
6.15% 9/2/12 Baa3 12,485 13,413 728816AW
Port Oakland Port Rev.: 734897RP
Rfdg. (Cap. Appreciation) Series F: 734897RP
0% 11/1/05 (MBIA Insured) Aaa 300 224 734897RP
0% 11/1/06 (MBIA Insured) Aaa 2,890 2,052 734897RQ
0% 11/1/07 (MBIA Insured) Aaa 4,250 2,881 734897RR
Series G, 6% 11/1/07 (MBIA Insured) (e) Aaa 900 1,014 734897SE
Rancho Wtr. Dist. Fin. Auth. Rev.: 752111DQ
Rfdg.: 752111DQ
6.50% 11/1/03 (FGIC Insured) Aaa 1,300 1,459 752111DQ
6.50% 11/1/04 (FGIC Insured) Aaa 1,985 2,258 752111DR
6.50% 11/1/05 (FGIC Insured) Aaa 500 577 752111DS
6.427% 8/17/21 (AMBAC Insured)
(Pre-Refunded to 9/11/01 @ 102) (c) Aaa 6,900 7,513 752111BA
Redding Elec. Sys. Rev. Rfdg. Ctfs. of Prtn.
(Cap. Appreciation) Series A: 75728MCB
0% 6/1/06 (FGIC Insured) Aaa 1,730 1,250 75728MCB
0% 6/1/07 (FGIC Insured) Aaa 1,890 1,304 75728MCD
0% 6/1/08 (FGIC Insured) Aaa 1,300 851 75728MCF
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Richmond Redev. Agcy. Tax Allocation
(Hbr. Redev. Proj.) 7% 7/1/09 (FSA Insured) Aaa $ 105 $ 117 764472EA
Riverside County Asset Leasing Corp. Leasehold
Rev. (Riverside County Hosp. Proj.): 768903BM
Series A: 768903BM
5.75% 6/1/01 (MBIA Insured) Aaa 1,250 1,313 768903BM
6.375% 6/1/09 (MBIA Insured) Aaa 5,000 5,541 768903BP
6.50% 6/1/12 (MBIA Insured) Aaa 18,000 21,472 768903BQ
768903CF
Series B, 5.70% 6/1/16 (MBIA Insured) Aaa 1,950 2,133 768903CF
Riverside County Pub. Fin. Auth. Tax Allocation: 76912TAQ
(Redev. Proj.) Series A: 76912TAQ
4.80% 10/1/07 Baa2 1,080 1,095 76912TAK
5% 10/1/08 Baa2 1,135 1,162 76912TAL
5% 10/1/09 Baa2 1,140 1,153 76912TAM
5.10% 10/1/10 Baa2 1,245 1,264 76912TAN
5.25%10/1/12 Baa2 1,375 1,401 76912TAQ
5.50% 10/1/22 Baa2 4,500 4,567 76912TAS
Riverside County Redev. Agcy. Tax Allocation
(Redev. Proj. #4) Series A: 769123BN
7.50% 10/1/10 (Pre-Refunded to
10/1/01 @102) (c) BBB 1,000 1,125 769123BN
7.50% 10/1/26 (Pre-Refunded to
10/1/01 @102) (c) BBB 2,500 2,813 769123BP
Riverside County Trans. Commission Sales Tax
Rev. Rfdg. Series A, 5.25% 6/1/07
(AMBAC Insured) Aaa 790 853 769125CM
Riverside Unified School Dist. Ctfs. of Prtn. (Land
Acquisition Proj.) (Cap. Appreciation) Series B,
0% 9/1/26 (FSA Insured) (i) Aaa 5,485 5,744 769062AD
Rosemead Redev. Agcy. Sub. Lien Tax Allocation
Proj. Area 1 (Cap. Appreciation) 0% 10/1/98
(Escrowed to Maturity) (c) A- 1,120 1,117 777520BH
Roseville Joint Unified High School Dist. (Cap.
Appreciation) Series B, 0% 8/1/00 (FGIC Insured) Aaa 1,060 988
777849DV
Sacramento Cogeneration Auth. Cogeneration
Proj. Rev. (Procter & Gamble Proj.): 785872AE
5.70% 7/1/00 BBB- 1,200 1,237 785872AC
5.90% 7/1/02 BBB- 1,000 1,062 785872AE
6% 7/1/03 BBB- 700 754 785872AF
6.375% 7/1/10 BBB- 1,500 1,657 785872AL
6.50% 7/1/14 (Pre-Refunded to 7/1/05 @
102) (c) BBB- 1,000 1,157 785872AK
6.50% 7/1/21 (Pre-Refunded to 7/1/05 @
102) (c) BBB- 3,200 3,702 785872AM
Sacramento County Ctfs. of Prtn. Rfdg.
(Pub. Facs. Proj.): 786110HN
4.80% 10/1/10 (AMBAC Insured) Aaa 1,000 1,026 786110HN
5% 10/1/11 (AMBAC Insured) Aaa 1,625 1,680 786110HP
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Sacramento Fin. Auth. Lease Rev. Rfdg.
Series A, 5.40% 11/1/20 (AMBAC Insured) Aaa $ 2,000 $ 2,134 785846BN
Sacramento Muni. Util. Dist. Elec. Rev.: 786005AP
Rfdg. Series L, 5.125% 7/1/22 (MBIA Insured) Aaa 4,000 4,019
786005AP
5.45% 11/15/08 (FGIC Insured) (h) Aaa 17,700 18,951 7860042C
Sacramento Pwr. Auth. Cogeneration Proj. Rev.: 78605NAQ
6.50% 7/1/06 BBB- 4,500 5,085 78605NAJ
6.50% 7/1/07 BBB- 2,000 2,272 78605NAK
6.50% 7/1/08 BBB- 1,000 1,123 78605NAL
6% 7/1/22 BBB- 2,700 2,863 78605NAQ
San Bernardino County Ctfs. of Prtn.: 796815KR
Rfdg. (Med. Ctr. Fin. Proj.): 796815NW
5.25% 8/1/04 A3 915 954 796815NW
5.50% 8/1/22 A3 10,000 10,536 796815NN
(Cap. Facs. Proj.) Series B, 6.875% 8/1/24
(Escrowed to Maturity) (c) AAA 7,500 9,690 796815KR
(Med. Ctr. Fin. Proj.): 796815TL
5.50% 8/1/05 (MBIA Insured) Aaa 2,750 2,986 796815TK
5.50% 8/1/06 (MBIA Insured) Aaa 2,500 2,724 796815TL
San Bernardino County Trans. Auth. Sales Tax Rev.
Series A, 5.25% 3/1/08 (FSA Insured) Aaa 3,390 3,651 796846CH
San Diego County Cert. of Prtn. 5.25% 8/15/09
(MBIA Insured) Aaa 1,670 1,784 797391NS
San Diego County Reg'l. Trans. Commission
Sales Tax Rev. Second Sr. Series A: 797400DQ
6.25% 4/1/03 (FGIC Insured) Aaa 8,000 8,792 797400DP
6% 4/1/04 (FGIC Insured) Aaa 5,900 6,496 797400DQ
6% 4/1/05 (AMBAC Insured) Aaa 1,500 1,671 797400EY
San Diego County Wtr. Auth. Wtr. Rev. Ctfs. of
Prtn. 5.632% 4/25/07 (FGIC Insured) Aaa 5,000 5,502 797415CR
San Diego Multi-Family Hsg. Rev.
(Island Gardens Apts. Proj.) Series B,
9.50% 10/20/20 (GMNA Coll.) AAA 1,585 1,589 79729HBU
San Diego Pub. Facs. Fin. Auth. Swr. Rev.
Series B, 5.375% 5/15/15 (FGIC Insured) Aaa 1,000 1,046 79730ACN
San Diego Wtr. Util. Sys. Rev. 4.75% 8/1/28
(FGIC Insured) Aaa 7,500 7,178 797263BC
San Francisco Bay Area Rapid Trans. Dist.: 797669GE
Rfdg. Sales Tax Rev.: 797669GE 6.75% 7/1/10
(AMBAC Insured) Aaa 1,500 1,822 797669DX
Sales Tax Rev.: 797669GE
5.25% 7/1/12 Aa3 8,920 9,383 797669FW
5.25% 7/1/18 Aa3 4,500 4,602 797669GC
5% 7/1/28 (AMBAC Insured) Aaa 18,650 18,454 797669GE
San Francisco Bldg. Auth. Lease Rev.
(Dept. Gen. Svcs. Lease) Series A: 79772LAM
5% 10/1/05 A 400 420 79772LAM
5% 10/1/08 A 2,640 2,767 79772LAQ
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
San Francisco City & County Gen. Oblig.
Rfdg. Series 1, 5.50% 6/15/09
(FGIC Insured) Aaa $ 10,000 $ 10,964 797645SE
San Francisco City & County Int'l. Arpt. Commission: 797652P4
(Int'l. Arpt. Rev. Proj.): 797652P4
Rfdg. Second Series Issue 1,
6.20% 5/1/05 (AMBAC Insured) Aaa 2,300 2,511 797652FS
Issue 9A, 5.125% 5/1/07 (FGIC Insured) (e) Aaa 2,000 2,105
797652RN
Issue 15B, 4.70% 5/1/14 (MBIA Insured) Aaa 5,000 4,961 797652P4
Series 16A, 5.375% 5/1/18
(FSA Insured) (e) Aaa 5,035 5,149 797652T2
Series 18A: 7976522U
6% 5/1/05 (MBIA Insured) (e) Aaa 2,375 2,627 7976522N
5.25% 5/1/11 (MBIA Insured) (e) Aaa 3,280 3,438 7976522U
(SFO Fuel Co. LLC) Series A: 797652H3
5.125% 1/1/17 (AMBAC Insured) (e) Aaa 6,000 6,031 797652F9
5.25% 1/1/18 (AMBAC Insured) (e) Aaa 4,515 4,567 797652H3
5.25% 1/1/19 (AMBAC Insured) (e) Aaa 4,750 4,804 797652H4
San Francisco City & County Pub. Utils. Commission
Wtr. Rev. Rfdg. Series A,
6.50% 11/1/09 Aa 1,000 1,107 79765RDF
San Francisco City & County Redev. Fing. Auth.
Tax Allocation Rev. (Cap. Appreciation): 79771PDM
Rfdg. Series B, 0% 8/1/10 (MBIA Insured) Aaa 1,475 859 79771PDM
Series A: 79771PCP
0% 8/1/07 (FGIC Insured) Aaa 1,085 743 79771PCP
0% 8/1/08 (FGIC Insured) Aaa 1,085 706 79771PCQ
0% 8/1/09 (FGIC Insured) Aaa 1,085 668 79771PCR
0% 8/1/10 (FGIC Insured) Aaa 1,085 632 79771PCS
San Francisco City & County Swr. Rev.: 797654JT
Rfdg.: 797654HK
5.50% 7/1/04 A1 1,000 1,065 797707CS
5.90% 10/1/08 (AMBAC Insured) Aaa 5,000 5,425 797654HK
(Cap. Appreciation) Series B: 797654JT
0% 10/1/06 (FGIC Insured) Aaa 3,690 2,629 797654JT
0% 10/1/07 (FGIC Insured) Aaa 4,770 3,245 797654JU
0% 10/1/08 (FGIC Insured) Aaa 1,600 1,033 797654JV
San Joaquin County Ctfs. of Prtn. (Gen. Hosp. Proj.): 798085DT
5.70% 9/1/01 A3 2,250 2,339 798085DT
5.80% 9/1/02 A3 450 473 798085DU
6.25% 9/1/13 A3 2,500 2,696 798085DW
6.625% 9/1/20 A3 2,500 2,736 798085DX
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
798111CNSan Joaquin Hills Trans. Corridor Agcy. Toll Road Rev.:
798111CN
Rfdg. (Cap Appreciation) Series A: 798111CN
0% 1/15/07 (MBIA Insured) Aaa $ 3,500 $ 2,453 798111CN
0% 1/15/08 (MBIA Insured) Aaa 1,525 1,015 798111CP
0% 1/15/09 (MBIA Insured) Aaa 4,090 2,581 798111CQ
0% 1/15/10 (MBIA Insured) Aaa 2,000 1,194 798111CR
0% 1/15/11 (MBIA Insured) Aaa 5,365 3,025 798111CS
Series 1997 A, 5.25% 1/15/30
(MBIA Insured) Aaa 7,620 7,732 798111CD
San Jose Arpt. Rev. Rfdg. 5.875% 3/1/07
(FGIC Insured) Aaa 1,905 2,133 798136JC
San Jose Redev. Agcy. Tax Allocation
(Merged Area Redev. Proj.) 6% 8/1/15
(MBIA Insured) Aaa 3,000 3,440 798147LE
Santa Barbara Redev. Agcy. Tax Allocation Rfdg.
(Central City Redev. Proj.) 6% 3/1/05
(AMBAC Insured) Aaa 500 556 801311EJ
Santa Clara County Fin. Auth. Lease Rev.
(VMC Replacement Proj.) Series A: 801577AM
7.75% 11/15/08 (AMBAC Insured) Aaa 1,175 1,512 801577AM
7.75% 11/15/09 (AMBAC Insured) Aaa 3,725 4,818 801577AN
Santa Margarita/Dana Point Auth. Rev. Rfdg.
(Impt. Dists. 1&2, 2A&8) Series A: 802248AM
7.25% 8/1/06 (MBIA Insured) Aaa 1,500 1,810 802248AM
7.25% 8/1/07 (MBIA Insured) Aaa 2,200 2,693 802248AN
7.25% 8/1/08 (MBIA Insured) Aaa 1,780 2,208 802248BM
7.25% 8/1/12 (MBIA Insured) Aaa 1,865 2,382 802248BR
Santa Rosa Wastewtr. Rev. Rfdg. & Sub-Reg'l.
Wastewtr. Proj. Series A, 4.75% 9/1/16
(FGIC Insured) Aaa 900 883 802649JH
South Orange County Pub. Fin. Auth. Spl. Tax Rev.: 839100CA
Rfdg. (Sr. Lien) Series A, 7% 9/1/10
(MBIA Insured) Aaa 3,300 4,075 839100BL
(Foothill Area) Series C: 839100CA
7.50% 8/15/06 (FGIC Insured) Aaa 2,000 2,449 839100CA
7.50% 8/15/07 (FGIC Insured) Aaa 2,290 2,848 839100CB
8% 8/15/09 (FGIC Insured) Aaa 3,650 4,781 839100CF
Southern California Pub. Pwr. Auth. Pwr. Proj. Rev.: 842475RM
842475RM
Rfdg.: 842475RM
(Mead Adelanto Proj.) Series A: 842475RM
4.75% 7/1/16 (AMBAC Insured) Aaa 2,000 1,962 842475RH
4.875% 7/1/20 (AMBAC Insured) Aaa 1,000 979 842475RM
(Mead Phoenix Proj.) Series A,
4.875% 7/1/20 (AMBAC Insured) Aaa 1,300 1,273 842475SN
(Palo Verde Proj.) Series A: 842475UH
5.50% 7/1/05 (AMBAC Insured)
(Escrowed to Maturity) (c) Aaa 5,000 5,428 842475VG
6% 7/1/07 (AMBAC Insured)
(Escrowed to Maturity) (c) Aaa 1,100 1,245 842475VJ
5% 7/1/15 (AMBAC Insured)
(Escrowed to Maturity) (c) Aaa 3,000 3,007 842475UH
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Southern California Pub. Pwr. Auth. Pwr. Proj. Rev.: 842475RM
842475RM - continued
(Multiple Proj.): 842475KK
6.75% 7/1/10 A $ 1,400 $ 1,679 842475KK
6.75% 7/1/11 A 6,500 7,806 842475KL
(Palo Verde Proj.) Series A, 5% 7/1/03
(FSA Insured) (d) Aaa 14,645 15,172 842475WW
Southern California Pub. Pwr. Auth. Transmission Rev.: 842477LV
Rfdg. (Southern California Transmission Proj.)
Series A, 6% 7/1/06 (MBIA Insured) Aaa 2,000 2,251 842477LV
(Southern California Transmission Proj.)
5.50% 7/1/20 Aa3 1,000 1,009 842477JC
Stanislaus County Ctfs. of Prtn. Rfdg.
(Cap. Impt. Prog.) Series A, 5.25% 5/1/14
(MBIA Insured) Aaa 1,500 1,554 854450DW
Sulphur Springs Unified School Dist. Series A: 865480EY
0% 9/1/07 (MBIA Insured) Aaa 4,445 3,034 865480EX
0% 9/1/08 (MBIA Insured) Aaa 4,745 3,074 865480EY
0% 9/1/09 (MBIA Insured) Aaa 2,485 1,525 865480EZ
0% 9/1/12 (MBIA Insured) Aaa 2,750 1,414 865480FC
Tahoe-Truckee Joint Unified School Dist.
(Cap. Appreciation) Series A,
0% 9/1/10 (FGIC Insured) Aaa 6,625 3,845 873873EZ
Upland Ctfs. of Prtn. Rfdg. (San Antonio
Commty. Hosp.) 5.25% 1/1/08 A 3,700 3,813 915346DN
Upland Hosp. Ctfs. of Prtn. Rfdg. (San Antonio
Commty. Hosp.) 5.25% 1/1/13 A 8,500 8,597 915346DP
West Covina Ctfs. of Prtn. (Queen of
the Valley Hosp.): 952358BM
5.90% 8/15/02 (Escrowed to Maturity) (c) A2 875 939 952358BM
6% 8/15/03 (Escrowed to Maturity) (c) A2 925 1,009 952358BN
6.125% 8/15/04 (Escrowed to Maturity) (c) A2 980 1,086 952358BP
1,212,607
PUERTO RICO - 0.5%
Puerto Rico Pub. Impt. Rfdg. 5.50% 7/1/11 Baa1 5,675 6,124
745145AP
TOTAL MUNICIPAL BONDS
(Cost $1,131,657) 1,218,731
MUNICIPAL NOTES (A) - 5.8%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CALIFORNIA - 5.8%
California Econ. Dev. Fin. Auth. (California ISO
Corp. Proj.) Series 98-5, 3.15%, LOC Bank of
America Nat'l. Trust and Savings, VRDN A-1+ $ 10,600 $ 10,600
13066RAK
California Health Facs. Fin. Auth. Hosp. Rev.
(Adventist Health Sys. West.) Series 1998 B,
3.15%, LOC California Teachers Retirement Sys.,
VRDN (MBIA Insured) VMIG 1 700 700 13033AC3
California Poll. Cont. Fin. Auth. Resource Recovery
(Atlantic Richfield Co., Proj.) Series 1994 A,
3.30%, VRDN (e) VMIG 1 500 500 130535BF
California Poll. Cont. Fin. Auth. Rev.: 130534XE
Rfdg. 130534XE(Pacific Gas & Elec. Co. Proj.): 130534XE
Series C, 3.20%, LOC Bank of America
NT SA, VRDN A-1+ 11,600 11,600 130534XA
Series 1996-G, 3.25%, VRDN VMIG 1 3,400 3,400 130534XE
Series 1997 A, 3.15%, LOC Toronto-Dominion
Bank, VRDN A-1+ 2,000 2,000 130534XH
Series 1997 B, 3.25% LOC Deutsche Bank,
AG, VRDN (e) P-1 22,200 22,200 130534XL
California Poll. Cont. Fin. Auth. Solid Waste Disp.
Rev. (Shell Martinez Refining Co. Proj.): 130536DW
Series 1994-A, 3.20%, VRDN (e) VMIG 1 10,900 10,900 130536CT
Series 1996 A, 3.20%, VRDN (e) VMIG 1 3,500 3,500 130536DW
California Statewide Commty. Dev. Auth.
(Northern California Retired Officers) 3.10%,
LOC Dresdner Bank, AG, VRDN VMIG 1 1,850 1,850 13077TAG
Irvine Impt. Board Act. 1915 Limited Oblig. 3.15%,
LOC Bayerische Vereinsbank, AG,VRDN VMIG 1 1,800 1,800 463608QW
Irvine Ranch Wtr. Dist. Rev.
(Consolidated Dist.#140) Series 1989, 3%,
LOC Nat'l. Westminster Bank PLC, VRDN VMIG 1 6,475 6,475 4636323R
TOTAL MUNICIPAL NOTES
(Cost $75,525) 75,525
TOTAL INVESTMENTS IN SECURITIES - 100%
(Cost $1,207,182) $ 1,294,256
FUTURES CONTRACTS
AMOUNTS IN THOUSANDS EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
70 Treasury Bond Contracts Dec. 98 $ 8,890 $ 203
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 0.7%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(c) Security collateralized by an amount sufficient to pay interest
and principal.
(d) Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
(e) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(f) Coupon is inversely indexed to a floating interest rate. The price
may be considerably more volatile than the price of a comparable fixed
rate security. The rate shown is the rate at period end.
(g) 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 $985,000.
(h) Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date. The rate shown is the rate at
period end.
(i) Debt obligation initially issued in zero coupon form which
converts to coupon form at a specified rate and date. The rate shown
is the rate at period end.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $172,756,000 and $226,509,000, respectively (see Note 3 of
Notes to Financial Statements).
The market value of futures contracts opened and closed during the
period amounted to $75,682,000 and $117,116,000, respectively (see
Note 3 of Notes to Financial Statements).
The fund participated in the bank borrowing program. The maximum loan
and average daily balance during the period for which the loan was
outstanding amounted to $3,211,000. The weighted average interest rate
was 6.2% (see Note 5 of Notes to Financial Statements).
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 74.4% Aaa, AA, A 82.8%
Baa 6.8% BBB 6.5%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by Moody's or S&P amounted to 0.3%.
The distribution of municipal securities by revenue source, as a
percentage of total value of investment in securities, is as follows:
General Obligation 21.8%
Electric Revenue 14.9
Escrowed/Pre-Refunded 10.6
Special Tax 10.1
Transportation 10.0
Water and Sewer 7.5
Lease Revenue 7.0
Health Care 6.1
Others (individually less than 5%) 12.0
TOTAL 100.0%
INCOME TAX INFORMATION
At August 31, 1998, the aggregate cost of investment securities for
income tax purposes was $1,207,183,000. Net unrealized appreciation
aggregated $87,073,000, of which $87,165,000 related to appreciated
investment securities and $92,000 related to depreciated investment
securities.
At February 28, 1998, the fund had a capital loss carryforward of
approximately $2,634,000 of which $82,000, and $2,552,000 will expire
on February 28, 2002, and 2003, respectively. All of the loss
carryforwards were acquired in the merger and are avaliable to offset
future capital gains of the fund to the extent provided by regulations
(see Note 8 of Notes to Financial Statements).
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) AUGUST 31, 1998 (UNAUDITED)
ASSETS
INVESTMENT IN SECURITIES, AT VALUE (COST $1,207,182) - $ 1,294,256
SEE ACCOMPANYING SCHEDULE
RECEIVABLE FOR FUND SHARES SOLD 3,385
INTEREST RECEIVABLE 16,168
RECEIVABLE FOR DAILY VARIATION ON FUTURES CONTRACTS 46
OTHER RECEIVABLES 52
TOTAL ASSETS 1,313,907
LIABILITIES
PAYABLE FOR INVESTMENTS PURCHASED $ 2,141
REGULAR DELIVERY
DELAYED DELIVERY 22,199
PAYABLE FOR FUND SHARES REDEEMED 2,195
DISTRIBUTIONS PAYABLE 1,426
ACCRUED MANAGEMENT FEE 474
NOTES PAYABLE 3,211
OTHER PAYABLES AND ACCRUED EXPENSES 177
TOTAL LIABILITIES 31,823
NET ASSETS $ 1,282,084
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 1,192,349
ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON 2,458
INVESTMENTS
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 87,277
NET ASSETS, FOR 103,103 SHARES OUTSTANDING $ 1,282,084
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $12.43
SHARE ($1,282,084 (DIVIDED BY) 103,103 SHARES)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED AUGUST 31, 1998 (UNAUDITED)
INTEREST INCOME $ 32,797
EXPENSES
MANAGEMENT FEE $ 2,380
TRANSFER AGENT FEES 555
ACCOUNTING FEES AND EXPENSES 183
NON-INTERESTED TRUSTEES' COMPENSATION 1
CUSTODIAN FEES AND EXPENSES 31
REGISTRATION FEES 167
AUDIT 5
LEGAL 3
INTEREST 1
MISCELLANEOUS 7
TOTAL EXPENSES BEFORE REDUCTIONS 3,333
EXPENSE REDUCTIONS (43) 3,290
NET INTEREST INCOME 29,507
REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:
INVESTMENT SECURITIES 7,483
FUTURES CONTRACTS (572) 6,911
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:
INVESTMENT SECURITIES 3,608
FUTURES CONTRACTS 190 3,798
NET GAIN (LOSS) 10,709
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 40,216
FROM OPERATIONS
OTHER INFORMATION
EXPENSE REDUCTIONS: $ 27
FMR REIMBURSEMENT
CUSTODIAN CREDITS 7
TRANSFER AGENT CREDITS 9
$ 43
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
AUGUST 31, 1998 FEBRUARY 28,
(UNAUDITED) 1998
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 29,507 $ 42,098
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) 6,911 17,182
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 3,798 23,703
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 40,216 82,983
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS (29,507) (42,098)
FROM NET INTEREST INCOME
FROM NET REALIZED GAIN (2,414) -
TOTAL DISTRIBUTIONS (31,921) (42,098)
SHARE TRANSACTIONS 35,388 711,618
NET INCREASE (DECREASE) (NOTE 7)
TOTAL INCREASE (DECREASE) IN NET ASSETS 43,683 752,503
NET ASSETS
BEGINNING OF PERIOD 1,238,401 485,898
END OF PERIOD $ 1,282,084 $ 1,238,401
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED YEAR ENDED YEARS ENDED
AUGUST 31, 1998 FEBRUARY 28, FEBRUARY 29, FEBRUARY 28,
(UNAUDITED) 1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 12.360 $ 11.810 $ 11.720 $ 11.120 $ 12.100 $ 12.430
BEGINNING OF PERIOD
INCOME FROM INVESTMENT .292 .589 .599 .625 .685 .719
OPERATIONS
NET INTEREST INCOME
NET REALIZED AND .094 .550 .096 .597 (.830) (.060)
UNREALIZED GAIN
(LOSS)
TOTAL FROM INVESTMENT .386 1.139 .695 1.222 (.145) .659
OPERATIONS
LESS DISTRIBUTIONS
FROM NET (.292) (.589) (.602) (.622) (.685) (.719)
INTEREST INCOME
FROM NET (.024) - (.003) - (.150) (.270)
REALIZED GAIN
TOTAL DISTRIBUTIONS (.316) (.589) (.605) (.622) (.835) (.989)
NET ASSET VALUE, $ 12.430 $ 12.360 $ 11.810 $ 11.720 $ 11.120 $ 12.100
END OF PERIOD
TOTAL RETURN B, C 3.19% 9.89% 6.16% 11.25% (.91)% 5.41%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF $ 1,282 $ 1,238 $ 486 $ 498 $ 477 $ 575
PERIOD (IN MILLIONS)
RATIO OF EXPENSES TO .53% A .54% D .57% .58% .56% .57%
AVERAGE NET ASSETS
RATIO OF EXPENSES TO .53% A .53% E .57% .58% .56% .57%
AVERAGE NET ASSETS
AFTER EXPENSE
REDUCTIONS
RATIO OF NET INTEREST 4.73% A 4.85% 5.19% 5.44% 6.16% 5.78%
INCOME TO AVERAGE
NET ASSETS
PORTFOLIO TURNOVER RATE 28% A 37% F 17% 37% 29% 44%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D 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.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
F THE PORTFOLIO TURNOVER RATE DOES NOT INCLUDE THE ASSETS ACQUIRED IN
THE MERGER.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income and the effect of the fund's $5 account closeout fee
on an average-sized account. Yield measures the income paid by a fund.
Since a money market fund tries to maintain a $1 share price, yield is
an important measure of performance. If Fidelity had not reimbursed
certain fund expenses, the past five year and life of fund total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1998 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
SPARTAN CA MUNICIPAL MONEY MARKET 1.52% 3.11% 16.81% 36.26%
CALIFORNIA TAX-FREE 1.42% 2.91% 15.09% N/A
MONEY MARKET FUNDS AVERAGE
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 since the fund started on November 27, 1989. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to
the California tax-free money market funds average, which reflects the
performance of California tax-free money market funds with similar
objectives tracked by IBC Financial Data, Inc. The past six months
average represents a peer group of 55 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
SPARTAN CA MUNICIPAL MONEY MARKET 3.11% 3.16% 3.59%
CALIFORNIA TAX-FREE 2.91% 2.84% N/A
MONEY MARKET FUNDS AVERAGE
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YIELDS
8/31/98 6/1/98 3/2/98 12/1/97 9/1/97
SPARTAN CALIFORNIA 2.61% 3.30% 2.95% 3.36% 2.93%
MUNICIPAL MONEY MARKET
CALIFORNIA TAX-FREE MONEY 2.42% 3.07% 2.73% 3.11% 2.81%
MARKET FUNDS AVERAGE
SPARTAN CALIFORNIA 4.50% 5.68% 5.08% 5.79% 5.05%
MUNICIPAL MONEY MARKET -
TAX-EQUIVALENT
</TABLE>
Row: 1, Col: 1, Value: 2.61
Row: 1, Col: 2, Value: 2.42
Row: 2, Col: 1, Value: 3.3
Row: 2, Col: 2, Value: 3.07
Row: 3, Col: 1, Value: 2.95
Row: 3, Col: 2, Value: 2.73
Row: 4, Col: 1, Value: 3.36
Row: 4, Col: 2, Value: 3.11
Row: 5, Col: 1, Value: 2.93
Row: 5, Col: 2, Value: 2.81
4% -
3% -
2% -
1% -
0%
Spartan California
Municipal Money
Market
California Tax-Free
Money Market
Funds Average
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the
California tax-free money market funds average as tracked by IBC
Financial Data, Inc. Or you can look at the fund's tax-equivalent
yield, which is based on a combined effective 1998 federal and state
income tax rate of 41.95%. A portion of the funds income may be
subject to the alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields on
taxable investments. However,
a straight comparison between
the two may be misleading
because it ignores the way
taxes reduce taxable returns.
Tax-equivalent yield - the yield
you'd have to earn on a similar
taxable investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money market
fund will maintain a $1 share
price.
(checkmark)
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Diane McLaughlin, Portfolio Manager of Spartan
California Municipal Money Market Fund
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST SIX MONTHS,
DIANE?
A. The U.S. economy grew at a strong rate, with real GDP - gross
domestic product adjusted for inflation - growing at a rate of 3.6%
over the past two quarters. Historically, a growth rate of 2.5% has
been considered sustainable; in other words, growth above a 2.5% rate
generally is expected to cause inflationary pressures to build. At the
same time, the labor market in the U.S. was very tight, with
unemployment below 5% for all six months, including a drop to a
28-year low of 4.3% in April. An unemployment rate of 5% historically
has been considered "full employment." When the rate drops below that
mark, prices are expected to rise because of wage pressures caused by
employers increasing wages and salaries to attract or retain
employees, and passing on the extra cost to consumers. However,
inflation didn't emerge. In fact, the consumer price index (CPI) fell
during the six-month period as price increases generally were not
passed on to the consumer. Two of the reasons we didn't see inflation
were improvements in productivity and falling commodity prices. In
addition, financial turmoil in Asia helped subdue inflationary
pressures because currency devaluations in that region helped cause
the prices of imports into the U.S. to fall. Furthermore, a decline in
exports to Asia and other trading partners offset the strong domestic
demand that has driven the strength of the U.S. economy. The
conflicting signals of a strong domestic economy and Asian weakness
led to a great deal of uncertainty, as market participants tried to
gauge which would dominate the future course of the economy and
Federal Reserve Board monetary policy.
Q. WHAT WAS THE FED'S STANCE AS THIS TRANSPIRED?
A. The Fed sought to balance concerns about the robust domestic
economy with an increasingly fragile global economic situation. During
most of the period, members of the Fed's Open Market Committee
expressed continued concern about the inflation outlook, and
maintained a bias toward raising the rate banks charge each other for
overnight loans - the fed funds target rate - a move that would slow
the economy to head off inflation. Nevertheless, toward the end of the
period, the global economic crisis worsened, causing expectations to
shift. Many market observers began to expect that the Fed's next move
would be to lower the fed funds target rate in order to sustain
economic growth in the U.S.
Q. WHAT WAS YOUR STRATEGY?
A. Two main factors were considered in determining the fund's
strategy: economic fundamentals as well as the supply and demand of
short-term municipal securities. There was a tremendous issuance of
short-term, variable-rate demand notes (VRDNs) in the market, while
fixed-rate, one-year notes weren't as plentiful. To attract buyers,
issuers of the variable-rate paper had to offer yields that were
actually higher than those provided by longer-term, one-year notes.
Because of this situation, I maintained a significant position in
VRDNs throughout the period. Toward the end of the period,
expectations of lower short-term rates intensified. As a result, I
looked to purchase commercial paper and other fixed-rate instruments,
to lock in attractive rates and to help keep the fund's maturity from
declining too much in a falling rate environment.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on August 31, 1998, was 2.61%, compared
to 2.91% six months ago. The latest yield was the equivalent of a
4.50% taxable yield for California investors in the 41.95% combined
state and federal tax bracket. Through August 31, 1998, the fund's
six-month total return was 1.52%, compared to 1.42% for the California
tax-free money market funds average, according to IBC Financial Data,
Inc.
Q. WHAT'S YOUR OUTLOOK?
A. The global economic crisis is likely to deepen before it improves.
As a result, it is expected that the next policy move by the Federal
Reserve Board will be more in the direction of lowering the fed funds
target rate to support continued growth, as opposed to raising the
rate to keep inflation under control. In addition, a municipal bond
supply and demand imbalance could continue to be a challenge.
Uncertainty in other markets may attract investors into municipal
money market funds. At the same time, the trend of declining issuance
of short-term, fixed-rate municipal securities is expected to
continue.
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.
FUND FACTS
GOAL: high current tax-free
income for California residents
while maintaining a stable $1
share price
FUND NUMBER: 457
TRADING SYMBOL: FSPXX
START DATE: November 27, 1989
SIZE: as of August 31, 1998,
more than $1.3 billion
MANAGER: Diane McLaughlin,
since 1997; manager, various
Fidelity and Spartan municipal
money market funds; joined
Fidelity in 1992
(checkmark)
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
8/31/98 2/28/98 8/31/97
0 - 30 72 65 74
31 - 90 17 15 16
91 - 180 2 14 0
181 - 397 9 6 10
WEIGHTED AVERAGE MATURITY
8/31/98 2/28/98 8/31/97
SPARTAN CALIFORNIA MUNICIPAL 41 DAYS 44 DAYS 45 DAYS
MONEY MARKET FUND
CALIFORNIA TAX-FREE 43 DAYS 40 DAYS 46 DAYS
MONEY MARKET FUNDS AVERAGE*
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF AUGUST 31, 1998 AS OF FEBRUARY 28, 1998
Row: 1, Col: 1, Value: 1.0
Row: 1, Col: 2, Value: 13.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 63.0
Row: 1, Col: 1, Value: 2.0
Row: 1, Col: 2, Value: 17.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 18.0
Row: 1, Col: 5, Value: 61.0
Variable rate demand
notes (VRDNs) 63%
Commercial paper
(including CP mode) 20%
Tender bonds 3%
Municipal
notes 13%
Other 1%
Variable rate demand
notes (VRDNs) 61%
Commercial paper
(including CP mode) 18%
Tender bonds 2%
Municipal
notes 17%
Other 2%
*SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENTS AUGUST 31, 1998 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - 97.7%
Alameda County Ind. Dev. Auth., VRDN: 011107AE
(County of Alameda) Series 1998 A, 2.70%, LOC Wells
Fargo Bank, NA (b) $ 4,000 $ 4,000 011107AE
(Edward L. Shimmon, Inc. Proj.) Series 1996 A,
2.80%, LOC Banque Nationale de Paris (b) 2,900 2,900 011106AS
(Meskimen Family Trust Proj.) 2.80%, LOC Banque
Nationale de Paris 3,000 3,000 011107AH
Alameda County Multi-Family Hsg. Rev. (Berkeley Proj.)
Series 1998 A, 2.80%, LOC Wells Fargo Bank, NA,
VRDN (b) 3,600 3,600 011109BH
Assn. of Bay Area Govt. Fin. Auth.
(L.S. Packard Children Hosp. at Stanford Proj.)
2.60% (AMBAC Insured) (Liquidity Facility Bayerische
Hypotheken und Wechsel) VRDN 6,000 6,000 00037EBJ
Azusa Multi-Family Hsg. Rev. (Pacific Glen Apt. Proj.)
Series 1994, 3.10% (Continential Casualty Co.
Guaranteed) VRDN 4,600 4,600 055020AZ
Barstow Multi-Family Hsg. Rev. (Rimrock Village Apt. Proj.)
Series 1996, 2.60%, LOC Federal Home
Loan Bank, VRDN (b) 4,650 4,650 069035AR
California Dept. of Veterans Affairs Participating VRDN (c)130658GK
(c):
Series PA-315, 3.26% (Liquidity Facility Merrill
Lynch & Co.) (b) 3,270 3,270 130628TZ
Series FR/RI-A17, 3.65% (Liquidity Facility Nat'l.
Westminster Bank, PLC) (b) 19,000 19,000 130658GK
California Dept. of Water Resources Rev. Series 1, CP: 13099GAL
2.85% 9/3/98 1,551 1,551 13099GAL
3.25% 9/10/98 2,010 2,010 13099GAK
California Econ. Dev. Fin. Auth. Ind. Dev. Rev., VRDN: 13066PAK
(Calco, LLC Proj.) Series 1997, 3.45%, LOC Wells
Fargo Bank, NA 1,100 1,100 13066PAK
(Joseph Schmidt Proj.) Series A, 2.80%, LOC Banque
Nationale de Paris (b) 2,000 2,000 13066RAC
(KQED Inc. Proj.) 2.25%, LOC Wells Fargo Bank of
San Francisco, NA 2,650 2,650 13066RAA
(Kuhnash Properties III, LLC/Arkay Plastics, CA, LLC Proj.)
Series 1997, 2.90%, LOC PNC Bank, Ohio (b) 1,500 1,500 13066PAJ
(Mercury Air Group Proj.) 2.40%,
LOC BankBoston, NA (b) 5,000 5,000 13066RAF
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Edl. Facs. Auth. Rev.: 130174C2
Participating VRDN Series 1998, 3.65% (Liquidity
Facility Bank of New York, NA) (b)(c) $ 6,885 $ 6,885 1301744S
(Foundation for Edl. Achievement) Series 1996A, 2.60%,
LOC Banque Nationale de Paris, VRDN 2,500 2,500 130174C2
California Gen. Oblig.: 1306219G
CP: 1306219G
3.40% 10/5/98 25,500 25,500 1306209U
3.10% 10/7/98 2,300 2,300 1306219H
3.45% 10/7/98 13,800 13,800 1306209Y
3.45% 10/8/98 13,800 13,800 1306219A
3.10% 10/9/98 11,500 11,500 1306219J
3.40% 10/13/98 10,000 10,000 1306209V
3% 10/16/98 26,800 26,800 1306219G
Participating VRDN (c): 130628GN
Series 1996 L, 3.43% (Liquidity Facility Caisse des
Depots et Consignations) 16,935 16,935 130628JV
Series CR-153D, 3.31% (Liquidity Facility Citibank, NA) 1,555
1,555 130628GA
Series PA-237, 3.26% (Liquidity Facility Merrill
Lynch & Co.) 6,925 6,925 130628S5
Series SGB-7, 3.25% (Liquidity Facility Societe Generale) 2,100
2,100 130628GW
Series SGB-15, 3.25% (Liquidity Facility Societe Generale) 2,700
2,700 130628HC
130628GNSeries SG-84, 3.26% (Liquidity Facility Society Generale)
10,435 10,435 130628GN
Series SG-85, 3.26% (Liquidity Facility Society Generale) 10,500
10,500 130628GY
California Health Facs. Fin. Auth.: 13033AGP
(Catholic Healthcare West) VRDN: 13033AGP
Series 1995 B, 2.35% (MBIA Insured) (Liquidity
Facility Rabobank Nederland Coop. Central) 1,100 1,100 13033AGN
Series 1995 C, 2.35% (MBIA Insured) (Liquidity
Facility Rabobank Nederland Coop. Central) 14,100 14,100 13033AGP
(St. Francis Medical Center) Series 1995 E, 2.25% (MBIA
Insured) (LiquidityFacility Rabobank Nederland Coop.
Central) VRDN 3,600 3,600 13033AGR
California Hsg. Fin. Agcy. 13033EDZParticipating VRDN (c): 13033EDZ
Series 1994-1, 3.41% (Liquidity Facility State Street
Bank & Trust Co.) (b) 8,687 8,687 188847AA
Series 1994 E, 3.26% (Liquidity Facility Merrill
Lynch & Co.) (b) 3,590 3,590 13033ECR
Series 1994 H, 3.46% (Liquidity Facility Citibank, NA) (b) 4,800
4,800 269896Y8
Series 1996 C1, 3.36% (Liquidity Facility Bank
of America Nat'l. Trust and Savings) (b) 1,925 1,925 13033ETK
Series 1996 C2, 3.36% (Liquidity Facility Bank
of America Nat'l. Trust and Savings) (b) 4,075 4,075 13033ETM
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Hsg. Fin. Agcy. Participating VRDN (c): 13033EDZ -
continued
Series PT-14, 3.21% (Liquidity Facility
Commerzbank, Germany) $ 5,410 $ 5,410 13033CZ7
Series PT-40A, 3.26% (Liquidity Facility
Commerzbank, Germany) (b) 1,300 1,300 13033EDT
Series PT-40B, 3.26% (Liquidity Facility Bayerische
Hypotheken und Wechsel) (b) 13,545 13,545 13033EDV
Series PT-40D, 3.26% (Liquidity Facility Banque
Nationale de Paris) (BPA Merrill Lynch & Co.) (b) 9,210 9,210
13033EDZ
Series 1995 B, 3.26% (Liquidity Facility Credit
Suisse First Boston) (b) 1,060 1,060 13033EJC
Series 1995 M, 3.26% (Liquidity Facility Credit
Suisse First Boston) (b) 3,620 3,620 13033EPE
Series 1997 C, 3.21% (Liquidity Facility Merrill
Lynch & Co.) (c) 5,220 5,220 13033E5E
California Hsg. Fin. Agcy. 13033EU2Bonds: 13033EU2
Home Mtg. Rev.: 13033EU2
Series 1998 C, 3.55% 2/1/99 (FGIC Insured) (b) 3,175 3,175
13033EU2
Series 1998 E, 3.55%, tender 3/12/99 (b) 14,500 14,500 13033EU4
Single-Family Mtg. Rev. 130330EASeries 1998 B, 3.60%, tender
4/1/99 (FGIC Capital Market Services Guaranteed) (b) 8,000 8,000
130330EA
California Poll. Cont. Fin. Auth. 1309952P(Pacific Gas & Elec. Co.
Proj.): 1309952P
Bonds Series 1996 D, 2.90%, 9/25/98,
LOC United Bank of Switzerland, CP mode 4,800 4,800 1309952P
Bonds Series 1996 E: 1309952P
3.15%, 9/4/98, LOC Morgan Guaranty Trust Co., NY,
CP mode 1,500 1,500 1309952M
3.50%, 9/10/98, LOC Morgan Guaranty Trust Co., NY,
CP mode 8,200 8,200 130995YR
3.55%, 9/10/98, LOC Morgan Guaranty Trust Co., NY,
CP mode 6,000 6,000 130995YY
3.45%, 9/11/98, LOC Morgan Guaranty Trust Co., NY,
CP mode 3,000 3,000 130995YQ
3.45%, 10/14/98, LOC Morgan Guaranty Trust Co., NY,
CP mode 1,000 1,000 1309952H
3.45%, 11/12/98, LOC Morgan Guaranty Trust Co., NY,
CP mode 7,200 7,200 1309952L
VRDN: 130534XL
Series 1996 C, 3.20%, LOC Bank of America Nat'l.
Trust and Savings 1,050 1,050 130534XA
Series 1996 G, 3.25% 3,200 3,200 130534XE
Series 1997 B, 3.25%, LOC Deutsche Bank, AG (b) 6,100 6,100
130534XL
Series 1997 D, 2.60% (b) 2,500 2,500 130534XM
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Poll. Cont. Fin. Auth. Bonds (Southern California
Edison Co. Proj.) Series 1985 D, 2.95%,
9/18/98, CP mode $ 1,000 $ 1,000 1309952N
California Poll. Cont. Fin. Auth. Resource Recovery Rev., VRDN:
130535BF
(Atlantic Richfield Co.) Series 1994A, 3.30% (b) 2,600 2,600
130535BF
(Burney Forest Prod. Proj.) 3.30%, LOC Nat'l. Westminster
Bank PLC (b) 5,800 5,800 130535AT
California Poll. Cont. Fin. Auth. Solid Waste Disp. Rev., VRDN:
130536DW 130536DW
(Shell Martinez Refining Co. Proj.): 130536DW
Series 1996 A, 3.20% (b) 4,400 4,400 130536DW
Series 1996 B, 3.20% (b) 10,000 10,000 130536DV
(Santa Clara Valley Disp. Proj.)
Series 1997A, 2.40%, LOC Bank of America Nat'l.
Trust and Savings (b) 4,300 4,300 130536EJ
13068HFQCalifornia Public Works Board Lease Rfdg.
(Dept. of Corrections) Bonds: 13068HFQ
Rfdg. Series 1997 A, 4.50% 11/1/98 5,358 5,363 13068HFQ
Series 1997 B, 4.50% 9/1/98 3,000 3,000 13068HFQ
Series 1997 C, 4.50% 9/1/98 3,000 3,000 13068HFQ
California School Cash Reserve Prog. TRAN Series A,
4.50% 7/2/99 (AMBAC Insured) 42,500 42,790 130583BX
California Statewide Commty. Dev. Auth. Ind. Dev. Rev., VRDN: 13077VGS
(Aegis of Aptos Proj.) Series 1998 Y, 3.20%, LOC Key
Bank Nat'l. Assoc. 1,650 1,650 13077VGS
(American River Packaging) 2.80%, LOC California St.
Teacher Retirement Sys. (b) 1,745 1,745 130905CJ 130905BL
(Bro-Co Gen. Partnership Proj.) Series 1990, 2.75%, LOC
California St. Teacher Retirement Sys. (b) 3,640 3,640 130905BL
(Carvin Corp.) 2.75%, LOC California St. Teacher
Retirement Sys. (b) 2,230 2,230 130905CQ
(Covenant Retirement Commty., Inc.): 130909VY
Series1995, 2.65%, LOC La Salle Nat'l. Bank 7,800 7,800 130909VY
2.65%, LOC La Salle Nat'l. Bank 7,800 7,800 130907CX
(Duke, Inc. Project) Series 1996 E, 2.85%, LOC Wells
Fargo Bank, NA (b) 1,320 1,320 130905DH
(Fibrebond West Inc. Proj.) Series 1996 N, 2.75%,
LOC California St. Teacher Retirement Sys. (b) 3,300 3,300 130905DT
(Grundfos Pumps Corp. Proj.) Series 1989, 2.75%,
LOC California St. Teacher Retirement Sys. (b) 6,000 6,000 130905AG
(JDI Partners Proj.) 2.75%, LOC California St. Teacher
Retirement Sys. (b) 1,500 1,500 130905CZ
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Statewide Commty. Dev. Auth. Ind. Dev. Rev., VRDN: 13077VGS
- - continued
(Lynwood Enterprises, LLC Proj.) Series 1997 D, 2.85%,
LOC Fleet Nat'l. Bank (b) $ 2,000 $ 2,000 130905DX
(Northwest Pipe & Casing Co. Proj.) Series 1990, 2.75%,
LOC California St. Teacher Retirement Sys. (b) 3,000 3,000 130905BA
(Pasco Scientific Proj.) 2.75%, LOC California St. Teacher
Retirement Sys. (b) 2,475 2,475 130905CK
(Peets Coffee & Tea Inc.) Series 1995 E, 2.75%,
LOC California St. Teacher Retirement Sys. (b) 2,260 2,260 130905DC
(Propak-Ca. Corp. Proj.) Series 1994 B, 2.75%,
LOC California St. Teacher Retirement Sys. (b) 2,265 2,265 130905CG
(Rapelli of California Proj.) Series 1989, 2.75%,
LOC California St. Teacher Retirement Sys. (b) 2,500 2,500 130905AX
(Rix Ind. Proj.) Series 1996 I, 2.85%,
LOC Wells Fargo Bank, NA (b) 1,840 1,840 130905DM
(Setton Prop. Inc. Proj.) Series 1995 E, 2.85%,
LOC Wells Fargo Bank, NA (b) 860 860 130905CX
(St. Joseph Health System) 2.50% 12,750 12,750 130909FU
(Sunclipse, Inc.) 130905AN:
(Alhambra Proj.) Series 1989, 2.75%, LOC California
St. Teacher Retirement Sys. (b) 3,200 3,200 130905AN
(Union City Proj.) Series 1989, 2.75%, LOC California
St. Teacher Retirement Sys. (b) 2,135 2,135 130905AQ
California Statewide Commty. Multi-Family Hsg. Rev., VRDN: 13077VAA
(Canyon Creek Apt.) Series 1995 C, 2.40%
(Fannie Mae Guaranteed) (b) 2,000 2,000 13077VAA
(Oakmont of Danville, LLC) ( Sunrise of Danville Proj.)
2.70%, LOC Commerzbank, Germany (b) 6,165 6,165 13077VAW
Camarillo Multi-Family Hsg. Auth. Rev. (Hacienda de
Camarillo Proj.) Series 1996, 2.65%
(Fannie Mae Guaranteed) VRDN (b) 9,220 9,220 131785AC
Chula Vista Ind. Dev. Rev. (San Diego Gas & Elec. Co. Proj.): 17199BFN
Bonds CP mode: 17199BFN
Series C, 2.80%, 9/1/98 (b) 6,000 6,000 79729HEQ
Series C, 3.55%, 9/4/98 (b) 5,000 5,000 17199BFN
Series D, 3.70%, 9/9/98 (b) 6,500 6,500 17199BFR
Series E, 3.70%, 9/9/98 (b) 2,500 2,500 17199BFQ
Series B, 3.75%, VRDN (b) 8,900 8,900 17131HAK
Clovis Unified School Dist. TRAN 4% 6/30/99 6,000 6,013 189342RH
Covina Redev. Agcy. Multi-Family Hsg. Rev. (Shadowhills
Apt. Proj.) Series 1994 A, 3.10% (Continental
Casualty Co. Guaranteed) VRDN 500 500 223045BA
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Dublin Hsg. Auth. Multi-Family Hsg. Rev.
(Sierra Iron Horse Trail Proj.) Series 1998 A,
2.40%, LOC KBC Bank, NV, VRDN (b) $ 3,200 $ 3,200 26362TAA
East Bay Municipal Utility Dist. Rev. Series 1988, CP: 271997CG
3.50% 9/11/98 1,000 1,000 271997CC
3.05% 9/22/98 3,000 3,000 271997CH
2.80% 9/24/98 3,300 3,300 271997CG
Emeryville Redev. Agcy. Multi-Family Hsg.
(Emerybay Apt. II) 2.40%, LOC Bank of America Nat'l.
Trust and Savings, VRDN (b) 6,940 6,940 291200AA
Escondido Commty. Dev. Commission Rev. (Escondido
Promenade Proj.) 2.40%, LOC Bank of
America Nat'l. Trust and Savings, VRDN (b) 1,200 1,200 296338AA
Fairfield Ind. Dev. Auth., VRDN: 303900AE
(Meyer Cookward Ind. Proj.) 2.95%, LOC Banque
Nationale de Paris (b) 4,400 4,400 303900AE
2.90%, LOC Wells Fargo Bank, NA (b) 1,800 1,800 303900AD
Foothills Eastern Transport Corridor Agcy. Toll Road Rev.
Series 1995 D, 2.35%, LOC Morgan Guaranty Trust
Co., NY, VRDN 12,200 12,200 345105CT
Garden Grove Hsg. Auth. Multi-Family Hsg. Rev., VRDN: 365272AA
(Cal-Malabar Apt.) Series 1997 A, 2.65%
(Fannie Mae Guaranteed) 4,400 4,400 365272AA
(Valley View Sr. Villas Proj.) Series1990 A, 2.50%,
LOC Wells Fargo Bank, NA (b) 6,200 6,200 365265AB
Huntington Beach Multi-Family Hsg. (Five Point Seniors Proj.)
Series 1991 A, 3.10%, LOC Wells Fargo Bank, NA, VRDN (b) 4,400 4,400
446196AQ
Huntington Park Multi-Family Rev. (Casa Rita Apt.) Series
1994 A, 2.60%, LOC Wells Fargo Bank, NA, VRDN (b) 4,200 4,200
44667HAA
Kern County Gen. Oblig. TRAN 4.75% 10/1/98 7,200 7,205 492248AF
Lassen Muni. Util. Dist. Rev. Rfdg. Series 1996 A, 2.90% (FSA
Insured) (Liquidity Facility Credit Local de France) VRDN (b) 5,755
5,755 51808MAA
LaVerne Ind. Dev. Auth. Rev. (Paper-Pak Products, Inc. Proj.)
3.45%, LOC Nationsbank, NA, VRDN (b) 5,525 5,525 505203AA
Livermore Multi-Family Mtg. Rev. (Portola Meadows Apt.)
Series 1989 A, 2.40%, LOC Bank of America Nat'l. Trust
and Savings, VRDN (b) 4,800 4,800 537900AB
Long Beach Gen. Oblig. TRAN Series 1997-98, 4.50%
10/8/98 2,000 2,002 542399DZ
Long Beach Hbr. Rev.: 54299EBT
Participating VRDN, Series SG-73, 3.26% (Liquidity
Facility Societe Generale) (b)(c) 5,880 5,880 542424EX
Series A, CP: 54299EBT
2.75% 9/10/98 (b) 1,000 1,000 54299EBT
3.60% 10/16/98 (b) 4,900 4,900 54299EBS
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Los Angeles Commty. Redev. Agcy. Multi-Family Hsg. Rev.
(Promenade Towers) 2.60%, LOC Bank of America, VRDN $ 5,100 $ 5,100
544393AG
Los Angeles County Capital Asset Leasing Corp., CP: 54599AAS
3.10% 9/4/98, LOC Bayerische Landesbank Girozentrale,
LOC Morgan Guaranty Trust Co., NY 5,250 5,250 54599AAQ
3.10% 10/1/98, LOC Bayerische Landesbank Girozentrale,
LOC Morgan Guaranty Trust Co., NY 2,700 2,700 54599AAS
3.25% 10/7/98, LOC Bayerische Landesbank Girozentrale,
LOC Morgan Guaranty Trust Co., NY 4,300 4,300 54599AAR
Los Angeles County Gen. Oblig. TRAN Series 98-99 A,
4.50% 6/30/98 2,750 2,771 544657GP
Los Angeles County Local Edl. Agcy. Prtn. Ctfs. TRAN
Series B, 4.50% 9/30/98 1,500 1,501 544706AE
Los Angeles County Metropolitan Trans. Auth.: 5447129L
Participating VRDN (c): 54471RBB
Series SGB-2, 3.25% (Liquidity Facility Societe Generale) 12,700
12,700 54471RAZ
Series SGB-3, 3.25% (Liquidity Facility Societe Generale) 10,570
10,570 54471RBB
Series SG-46, 3.26% (Liquidity Facility Societe Generale) 3,600
3,600 544712EF
Series A, CP: 5447129L
3.15% 10/1/98, LOC Bayerische Vereinsbank, AG,
LOC Canadian Imperial Bank of Commerce 1,000 1,000 5447129M
3.60% 10/9/98, LOC Bayerische Vereinsbank, AG,
LOC Canadian Imperial Bank of Commerce 1,000 1,000 5447129L
Los Angeles County Multi-Family Hsg. Auth., VRDN: 544688GH
(Malibu Meadows Proj.) Series 1998 A, 2.55%
(Fannie Mae Guaranteed) 6,611 6,611 544688GH
(Meadowridge Apt. Proj.) Series 1994 B, 3.10%
(Continental Casualty Co. Guaranteed) 4,000 4,000 544562AN
Los Angeles Dept. of Water and Power (Elect. Plant Short
Term Rev. Certificate) 3.70% 9/15/98, LOC Bank of
Nova Scotia, LOC Toronto-Dominion Bank, CP 4,300 4,300 54499FAL
Los Angeles Gen. Oblig.: 544350L9
Bonds 4.50% 12/1/98 3,700 3,707 544358PK
TRAN Series 1998, 4.25% 6/30/99 11,800 11,865 544350L9
Los Angeles Hbr. Dept. Participating VRDN (c): 544552FS
Series FR/RI-7, 3.65% (BPA Bank of New York, NA) (b) 19,800 19,800
544552JB
Series SG-59, 3.26% (Liquidity Facility Societe Generale) (b) 8,950
8,950 544552FS
Los Angeles Multi-Family Hsg. Rev., VRDN: 544582GV
(Beverly Park Apt.) Series 1988 A, 2.35%, LOC Chase
Manhattan Bank (b) 1,300 1,300 544582GV
Series 1985 K, 2.75%, LOC Federal Home Loan
Bank 23,600 23,600 544582CD
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Los Angeles Ontario Intl. Arpt. Participating VRDN, Series SG-61,
3.26% (Liquidity Facility Societe Generale) (b) (c) $ 2,600 $ 2,600
544435UY
Los Angeles Unified School Dist. TRAN: 544644BP
4.50% 10/1/98 9,200 9,207 544644AL
3.60% 12/9/98 10,000 10,000 544644BP
Los Angeles Wastewater Sys.: 544999FC
CP: 544999FC
3.70% 9/9/98, LOC Morgan Guaranty Trust Co., NY,
LOC United Bank of Switzerland 4,300 4,300 544999FB 544652YP
3.15% 10/7/98, LOC Morgan Guaranty Trust Co., NY,
LOC United Bank of Switzerland 8,400 8,400 544999FC
544999FB Participating VRDN, Series SGA-26, 3.25% (Liquidity
Facility Societe Generale) (c) 15,970 15,970 544652YP
Los Rios Commty. College Dist. TRAN 4.75% 12/30/98 10,000 10,036
545624CB
M-S-R Pub. Pwr. Agcy. Rev. (San Juan Proj.) Series 1997E,
2.45% (MBIA Insured) (BPA Nat'l. Westminster
Bank, PLC) VRDN 5,400 5,400 553751HB
Metropolitan Water Dist. of Southern California: 59199JDA
CP: 59199JDA
Series A, 3.55% 9/4/98 1,800 1,800 59199JDA
Series B: 59199JDB
3.55% 9/4/98 2,000 2,000 59199JDB
3.70% 9/4/98 3,600 3,600 59199JDE
3.45% 9/8/98 10,000 10,000 59199JCX
3.50% 9/10/98 1,000 1,000 59199JDC
3.55% 9/10/98 3,000 3,000 59199JDD
Participating VRDN, Series PT-1011, 3.21% (Liquidity
Facility Merrill Lynch & Co.) (c) 12,750 12,750 592663TH
VRDN: 592663TL
Rfdg. Series 1996 A, 2.35% (BPA ABN-AMRO Bank, NV)
(AMBAC Insured) 7,000 7,000 592663QV
Series 1997 C, 2.35% (Liquidity Facility Bank of
America Nat'l. Trust and Savings) 16,000 16,000 592663TL
Monterey Ind. Dev. Auth. Rev.
(Slautterback Corp. Proj.) Series 1996 A, 2.60%,
LOC Bayerische Vereinsbank, VRDN (b) 3,350 3,350 61241MAA
Newark Ind. Dev. Auth. Rev. (Gas Tech Proj.) Series 1989 A,
2.95%, LOC United Bank of Switzerland, VRDN (b) 3,000 3,000 650250AA
Oceanside Multi-Family Rev. (Lakeridge Apt. Proj.)
Series 1994, 3.10% (Continental Casualty Co.
Guaranteed) VRDN 6,000 6,000 675370AD
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Orange County Apt. Dev. Rev., VRDN: 684209JW
(Foothill Oaks Apt. Proj.) Series 1989 B, 2.40%,
LOC Bank of America Nat'l. Trust and Savings (b) $ 12,390 $ 12,390
684209JW
(Hidden Hills) Series 1985 U-C, 2.85%, LOC Chase
Manhattan Bank 13,600 13,600 684209JM
(Laguna Summit Apt.) Series 1985 X, 2.85%, LOC
Chase Manhattan Bank 8,500 8,500 684209JN
(Monarch Bay Apt. Proj.) Series 1985 T, 2.25%,
LOC Bank of America 15,350 15,350 684209JT
Orange County Ind. Dev. Rev. (Control Air Conditioning Corp./
Ellis Enterprises) Series 1997, 3.45%, LOC California St.
Teacher Retirement Sys., VRDN 1,000 1,000 684091AA
Pleasant Hill Redev. Agcy. Multi-Family Hsg. Rev.
(Chateau III Proj.) Series 1996 A, 3.15%,
LOC Commerzbank, Germany, VRDN (b) 1,460 1,460 72834PAA
Rancho Muni. Wtr. Dist. Fin. Auth. Rfdg. Participating VRDN,
Series SG-72, 3.21% (Liquidity Facility Societe Generale) (c) 8,750
8,750 752111DW
Redlands Multi-Family Hsg. Rev. (Parkview Terrace Proj.)
2.40%, LOC Bank of America Nat'l. Trust and Savings, VRDN 7,200
7,200 757591AD
Riverside County Gen. Oblig. Series B, 3.05% 10/1/98,
LOC Westdeutsche Landesbank Girozentrale, CP 2,537 2,537 76912E9B
Riverside County Ind. Dev. Auth. (Merrick Engineering, Inc.)
3.45%, LOC Wells Fargo Bank, NA, VRDN (b) 1,320 1,320 76911TBD
Riverside County School Dist RAN 4.50% 10/1/98 8,755 8,762 76912HAD
Roseville Hosp. Fin. Auth. Series 1989 A, 2.40%,
LOC Toronto-Dominion Bank, VRDN 2,300 2,300 777809AA
Sacramento County Arpt. Sys. Participating VRDN (c): 786107CT
Series SG-8, 3.25% (Liquidity Facility Societe Generale) 8,685
8,685 786107CS
Series SGA-33, 3.25% (Liquidity Facility Societe Generale) 5,810
5,810 786107CT
Sacramento County Gen. Oblig. TRAN 4.50% 9/30/98 5,770 5,773
786106FM
Sacramento Hsg. Auth. Multi-Family Hsg. Rev. (Chesapeake
Commons Holdings, Inc.) Series 1997 A, 2.60%,
LOC Bank One, Arizona, NA, VRDN (b) 8,000 8,000 786111CU
San Bernadino County Ind. Dev. Auth. Rev., VRDN: 796901AP
(McClain Citrus Inc. Proj.) 2.75%, LOC California St.
Teacher Retirement Sys. (b) 2,900 2,900 796901AL
(NRI, Inc.) 2.75%, LOC California St. Teacher
Retirement Sys. (b) 1,505 1,505 796901AN
(W & H Voortman Inc. Proj.) 2.75%, LOC California St.
Teacher Retirement Sys. (b) 2,360 2,360 796901AP
San Diego County Gen. Oblig. Series B-1, 3%
10/1/98, LOC Landesbank Hessen-Thuringen, CP 6,000 6,000 79739P9C
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
San Diego Hsg. Auth. Multi-Family Hsg. Rev. Rfdg.
(Coral Pointe Apt. Proj.) Series 1993A, 3.20%,
(Continential Casualty Co. Guaranteed) VRDN $ 5,000 $ 5,000 79729HEQ
San Diego Ind. Dev. Rev. Participating VRDN, Series FR/RI-1,
3.55% (Liquidity Facility Bank of New York, NA) (c) 6,000 6,000
797284CH
San Diego Reg'l. Trans. Sales Tax Participating VRDN,
Series BTP-185, 3.26% (Liquidity Facility Bankers
Trust Corp., NY) (c) 4,920 4,920 797400EK
San Francisco City & County Int'l. Arpt. Rev., CP: 7976529Q
7976529R 7976529R 7976529R Series 1997 A, 3.45% 11/9/98, LOC
Bayerische Landesbank
Girozentrale, LOC Morgan Guaranty Trust Co., NY (b) 5,000 5,000
7976529R
7976529Q 7976529Q Series 1997 B, 3.55% 12/10/98, LOC Bayerische
Landesbank
Girozentrale 1,000 1,000 7976529Q
Series A, 3.50% 11/5/98, LOC Bayerische Landesbank
Girozentrale, LOC Morgan Guaranty Trust Co., NY (b) 4,360 4,360
7976529P
San Francisco City & County Parking Auth. Participating VRDN,
Series 1996 A, 3.21% (Liquidity Facility Bank of
America Nat'l. Trust and Savings) (c) 7,175 7,175 797700CU
San Francisco City & County Participating VRDN (c): 797645KU
Series 1996 AA2, 3.31% (Liquidity Facility Bank of
America Nat'l. Trust and Savings) 1,740 1,740 797645KU
Series 1996 AA3, 3.31% (Liquidity Facility Bank of
America Nat'l. Trust and Savings) 4,210 4,210 797645KW
Series 1996 AA4, 3.31% (Liquidity Facility Bank of
America Nat'l. Trust and Savings) 4,450 4,450 797645KY
San Francisco City & County Real Estate Dev. Agcy.
Participating VRDN 3.21% (Liquidity Facility
Commerzbank, Germany) (c) 3,180 3,180 797714FW
San Francisco City & County Redev. Prog. Participating VRDN,
Series 1997 T, 3.26% (Liquidity Facility Caisse des
Depots et Consignations) (c) 2,500 2,500 797714FY
San Francisco City & County Unified School Dist. TRAN: 79771TAN
Series 1997, 4.50% 10/30/98 5,400 5,409 79771TAM
Series 1998, 4.50% 9/22/99 6,000 6,068 79771TAN
San Jose Multi-Family Hsg. Rev. VRDN: 798165BH
(Almaden Lake Village Apt. Assoc.) Series 1997 A, 2.50%,
LOC Bank of America Nat'l. Trust and Savings (b) 4,700 4,700
798165BF
(Sienna Renaissance Apt.) Series 1996 A, 2.50%, LOC
Key Bank Nat'l. Assoc. 11,000 11,000 798165BH
(Somerset Park Apt.) Series 1987 A, 2.40%, LOC Bank of
America Nat'l. Trust and Savings (b) 3,900 3,900 798163DZ
San Jose Unified School Dist. TRAN (Santa Clara County)
4.50% 10/8/98 3,000 3,003 798186MM
San Leandro Multi-Family Hsg. Rev. (Carlton Plaza)
3.15%, LOC Commerzbank, Germany, VRDN (b) 5,000 5,000 798448AF
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Santa Barbara County TRAN Series A, 4.50% 10/1/98 $ 5,500 $ 5,505
801320AH
Santa Clara County Multi-Family Hsg. Rev. (Briarwood Apts.)
Series 1996 B, 2.55% (Fannie Mae Guaranteed) VRDN 1,000 1,000
801623AD
Santa Clara County Gen. Oblig. TRAN 4.75% 10/1/98 10,350 10,359
801546LM
Santa Rosa Multi-Family Hsg. (Quail Run Apt./Santa Rosa
Hsg. Partners) Series 1997 A, 3.55%, LOC U.S.
Bank of Washington, VRDN (b) 5,850 5,850 80262MBB
Simi Valley Multi-Family Hsg. Rev. (Lincoln Wood Ranch Apt.)
2.50%, LOC Credit Suisse First Boston, VRDN 8,200 8,200 828905BY
South Coast Local Edl. Agcy. TRAN 4.50% 6/30/99
(MBIA Insured) 27,500 27,703 837431AD
Southern California Pub. Pwr. Auth.: 842477LX
Participating VRDN, Series SG-35, 3.21% (Liquidity
Facility Societe Generale) (c) 1,000 1,000 842475UU
(Southern Transmission Proj.) 2.45% (BPA Morgan Guaranty
Trust Co., NY) (FSA Insured) VRDN 5,000 5,000 842477LX
Torrance Hospital Rev. (Little Co. of Mary Hosp. - Torrance
Mem. Med Ctr.) Series 1992, 2.70%, LOC Chase
Manhattan Bank, VRDN 10,800 10,800 891368BX
University of California Rev.: 9141149C
Gen. Oblig. Series A, 2.80% 9/4/98, CP 9,300 9,300 9141149C
Rfdg. Participating VRDN, Series 1997 G, 3.20%
(Liquidity Corestates Bank) (c) 20,000 20,000 914113G8
Vallejo Multi-Family Hsg. Rev. (Hillside Terrace Apt./Vallejo
Hillside Assoc.) Series 1997 A, 2.65% (Fannie Mae
Guaranteed) VRDN (b) 1,725 1,725 919196AL
Vista City Ind. Dev. Auth. Rev. (Desalination Sys., Inc.)
Series 1995, 3%, LOC Wells Fargo Bank, NA, VRDN (b) 5,770 5,770
928310AC
1,278,228
GUAM - 1.0%
Guam Pwr. Auth. Rev., CP: 745145FZ
2.90% 9/18/98 (AMBAC Insured) 4,800 4,800 745177AH
3% 10/9/98 (AMBAC Insured) 7,800 745145FZ 7,800 745145FZ
12,600
PUERTO RICO - 1.3%
Puerto Rico Commonwealth Gov't. Dev. Bank Rev., 2.50%
(MBIA Insured) LOC Credit Suisse First Boston, VRDN 4,000 4,000
745177AH
Puerto Rico Hwy. & Trans. Auth. Series A, 2.75%
(AMBAC Insured) (Liquidity Facility Bank of Nova Scotia)
VRDN 4,400 4,400 745190AZ
Puerto Rico Ind., Tourist, Edl., Medical & Envir. Cont. Facs.
(University of Ana G. Mendez Proj.) Series 98, 2.40%,
LOC Banco Santander, SA, VRDN 4,100 4,100 745272BJ
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
PUERTO RICO - CONTINUED
Puerto Rico Pub. Impt. Participating VRDN,
Series PT-1025, 3.16% (Liquidity Facility
Merrill Lynch & Co.) (c) $ 4,800 $ 745145FZ 4,800 745145FZ
17,300
TOTAL INVESTMENTS IN SECURITIES - 100% $ 1,308,128
Total Cost for Income Tax Purposes $ 1,308,128
SECURITY TYPE ABBREVIATIONS
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At February 28, 1998, the fund had a capital loss carryforward of
approximately $622,000 of which $582,000,and $40,000 will expire on
February 28, 2003, and 2006, respectively.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS(EXCEPT PER-SHARE AMOUNT) AUGUST 31, 1998 (UNAUDITED)
ASSETS
INVESTMENT IN SECURITIES, AT VALUE - $ 1,308,128
SEE ACCOMPANYING SCHEDULE
RECEIVABLE FOR FUND SHARES SOLD 7,199
INTEREST RECEIVABLE 7,769
TOTAL ASSETS 1,323,096
LIABILITIES
PAYABLE TO CUSTODIAN BANK $ 93
PAYABLE FOR INVESTMENTS PURCHASED 6,068
PAYABLE FOR FUND SHARES REDEEMED 6,182
DISTRIBUTIONS PAYABLE 134
ACCRUED MANAGEMENT FEE 557
OTHER PAYABLES AND ACCRUED EXPENSES 13
TOTAL LIABILITIES 13,047
NET ASSETS $ 1,310,049
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 1,310,706
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (657)
NET ASSETS, FOR 1,310,702 SHARES OUTSTANDING $ 1,310,049
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($1,310,049 (DIVIDED BY) 1,310,702 SHARES)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED AUGUST 31, 1998 (UNAUDITED)
INTEREST INCOME $ 23,247
EXPENSES
MANAGEMENT FEE $ 3,333
NON-INTERESTED TRUSTEES' COMPENSATION 3
TOTAL EXPENSES BEFORE REDUCTIONS 3,336
EXPENSE REDUCTIONS (105) 3,231
NET INTEREST INCOME 20,016
NET REALIZED GAIN (LOSS) ON INVESTMENTS (32)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 19,984
OTHER INFORMATION
EXPENSE REDUCTIONS: $ 103
CUSTODIAN CREDITS
TRANSFER AGENT CREDITS 2
$ 105
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED YEAR ENDED
AUGUST 31, 1998 FEBRUARY 28,
(UNAUDITED) 1998
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 20,016 $ 42,978
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) (32) (33)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 19,984 42,945
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (20,016) (42,978)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 726,193 1,481,851
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 19,563 42,120
COST OF SHARES REDEEMED (788,430) (1,515,041)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES (42,674) 8,930
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS (42,706) 8,897
NET ASSETS
BEGINNING OF PERIOD 1,352,755 1,343,858
END OF PERIOD $ 1,310,049 $ 1,352,755
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED YEAR ENDED YEARS ENDED
AUGUST 31, 1998 FEBRUARY 28, FEBRUARY 29, FEBRUARY 28,
(UNAUDITED) 1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD
INCOME FROM INVESTMENT .015 .032 .031 .035 .030 .024
OPERATIONS
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET (.015) (.032) (.031) (.035) (.030) (.024)
INTEREST INCOME
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD
TOTAL RETURN B, C 1.52% 3.26% 3.18% 3.60% 3.00% 2.45%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF $ 1,310 $ 1,353 $ 1,344 $ 1,307 $ 1,163 $ 1,065
PERIOD (IN MILLIONS)
RATIO OF EXPENSES TO .50% A .45% D .35% D .31% D .28% D .21% D
AVERAGE NET ASSETS
RATIO OF EXPENSES TO .48% A, E .45% .34% E .31% .28% .21%
AVERAGE NET ASSETS
AFTER EXPENSE
REDUCTIONS
RATIO OF NET INTEREST 3.00% A 3.21% 3.14% 3.55% 2.96% 2.42%
INCOME TO AVERAGE
NET ASSETS
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 6 OF NOTES TO
FINANCIAL STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D 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.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES
(SEE NOTE 6 OF NOTES TO FINANCIAL STATEMENTS).
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income. Yield measures the income paid by a fund. Since a
money market fund tries to maintain a $1 share price, yield is an
important measure of performance. If Fidelity had not reimbursed
certain fund expenses, the past 10 year total returns would have been
lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1998 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
FIDELITY CA MUNICIPAL MONEY MARKET 1.45% 2.97% 15.03% 40.83%
CALIFORNIA TAX-FREE 1.42% 2.91% 15.09% 40.92%
MONEY MARKET FUNDS AVERAGE
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. To measure how the fund's performance stacked up
against its peers, you can compare it to the California tax-free money
market funds average, which reflects the performance of California
tax-free money market funds with similar objectives tracked by IBC
Financial Data, Inc. The past six months average represents a peer
group of 55 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY CA MUNICIPAL MONEY MARKET 2.97% 2.84% 3.48%
CALIFORNIA TAX-FREE 2.91% 2.84% 3.51%
MONEY MARKET FUNDS AVERAGE
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
8/31/98 6/1/98 3/2/98 12/1/97 9/1/97
CALIFORNIA MUNICIPAL 2.52% 3.18% 2.82% 3.19% 2.77%
MONEY MARKET
CALIFORNIA TAX-FREE 2.42% 3.07% 2.73% 3.11% 2.81%
MONEY MARKET FUNDS AVERAGE
CALIFORNIA MUNICIPAL 4.34% 5.48% 4.86% 5.50% 4.77%
MONEY MARKET TAX-EQUIVALENT
Row: 1, Col: 1, Value: 2.52
Row: 1, Col: 2, Value: 2.42
Row: 2, Col: 1, Value: 3.18
Row: 2, Col: 2, Value: 3.07
Row: 3, Col: 1, Value: 2.82
Row: 3, Col: 2, Value: 2.73
Row: 4, Col: 1, Value: 3.19
Row: 4, Col: 2, Value: 3.11
Row: 5, Col: 1, Value: 2.77
Row: 5, Col: 2, Value: 2.81
4% -
3% -
2% -
1% -
0%
California Municipal
Money Market
California Tax-Free
Money Market
Funds Average
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the
California tax-free money market funds average as tracked by IBC
Financial Data, Inc. Or you can look at the fund's tax-equivalent
yield, which is based on a combined effective 1998 federal and state
income tax rate of 41.95%. A portion of the fund's income may be
subject to the alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
YIELDS ON TAX-FREE INVESTMENTS
ARE USUALLY LOWER THAN YIELDS
ON TAXABLE INVESTMENTS.
HOWEVER, A STRAIGHT
COMPARISON BETWEEN THE TWO
MAY BE MISLEADING BECAUSE IT
IGNORES THE WAY TAXES
REDUCE TAXABLE RETURNS.
TAX-EQUIVALENT YIELD - THE YIELD
YOU'D HAVE TO EARN ON A
SIMILAR TAXABLE INVESTMENT TO
MATCH THE TAX-FREE YIELD -
MAKES THE COMPARISON MORE
MEANINGFUL. KEEP IN MIND THAT
THE U.S. GOVERNMENT NEITHER
INSURES NOR GUARANTEES A
MONEY MARKET FUND. AND THERE
IS NO ASSURANCE THAT A MONEY
MARKET FUND WILL MAINTAIN A $1
SHARE PRICE.
(CHECKMARK)
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Diane McLaughlin, Portfolio Manager of Fidelity
California Municipal Money Market Fund
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST SIX MONTHS,
DIANE?
A. The U.S. economy grew at a strong rate, with real GDP - gross
domestic product adjusted for inflation - growing at a rate of 3.6%
over the past two quarters. Historically, a growth rate of 2.5% has
been considered sustainable; in other words, growth above a 2.5% rate
generally is expected to cause inflationary pressures to build. At the
same time, the labor market in the U.S. was very tight, with
unemployment below 5% for all six months, including a drop to a
28-year low of 4.3% in April. An unemployment rate of 5% historically
has been considered "full employment." When the rate drops below that
mark, prices are expected to rise because of wage pressures caused by
employers increasing wages and salaries to attract or retain
employees, and passing on the extra cost to consumers. However,
inflation didn't emerge. In fact, the consumer price index (CPI) fell
during the six-month period as price increases generally were not
passed on to the consumer. Two of the reasons we didn't see inflation
were improvements in productivity and falling commodity prices. In
addition, financial turmoil in Asia helped subdue inflationary
pressures because currency devaluations in that region helped cause
the prices of imports into the U.S. to fall. Furthermore, a decline in
exports to Asia and other trading partners offset the strong domestic
demand that has driven the strength of the U.S. economy. The
conflicting signals of a strong domestic economy and Asian weakness
led to a great deal of uncertainty, as market participants tried to
gauge which would dominate the future course of the economy and
Federal Reserve Board monetary policy.
Q. WHAT WAS THE FED'S STANCE AS THIS TRANSPIRED?
A. The Fed sought to balance concerns about the robust domestic
economy with an increasingly fragile global economic situation. During
most of the period, members of the Fed's Open Market Committee
expressed continued concern about the inflation outlook, and
maintained a bias toward raising the rate banks charge each other for
overnight loans - the fed funds target rate - a move that would slow
the economy to head off inflation. Nevertheless, toward the end of the
period, the global economic crisis worsened, causing expectations to
shift. Many market observers began to expect that the Fed's next move
would be to lower the fed funds target rate in order to sustain
economic growth in the U.S.
Q. WHAT WAS YOUR STRATEGY?
A. Two main factors were considered in determining the fund's
strategy: economic fundamentals as well as the supply and demand of
short-term municipal securities. There was a tremendous issuance of
short-term, variable-rate demand notes (VRDNs) in the market, while
fixed-rate, one-year notes weren't as plentiful. To attract buyers,
issuers of the variable-rate paper had to offer yields that were
actually higher than those provided by longer-term, one-year notes.
Because of this situation, I maintained a significant position in
VRDNs throughout the period. Toward the end of the period,
expectations of lower short-term rates intensified. As a result, I
looked to purchase commercial paper and other fixed-rate instruments,
to lock in attractive rates and to help keep the fund's maturity from
declining too much in a falling rate environment.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on August 31, 1998, was 2.52%, compared
to 2.77% six months ago. The latest yield was the equivalent of a
4.34% taxable yield for California investors in the 41.95% combined
state and federal tax bracket. Through August 31, 1998, the fund's
six-month total return was 1.45%, compared to 1.42% for the California
tax-free money market funds average, according to IBC Financial Data,
Inc.
Q. WHAT'S YOUR OUTLOOK?
A. The global economic crisis is likely to deepen before it improves.
As a result, it is expected that the next policy move by the Federal
Reserve Board will be more in the direction of lowering the fed funds
target rate to support continued growth, as opposed to raising the
rate to keep inflation under control. In addition, a municipal bond
supply and demand imbalance could continue to be a challenge.
Uncertainty in other markets may attract investors into municipal
money market funds. At the same time, the trend of declining issuance
of short-term, fixed-rate municipal securities is expected to
continue.
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.
FUND FACTS
GOAL: high current tax-free
income for California residents
while maintaining a stable
$1 share price
FUND NUMBER: 097
TRADING SYMBOL: FCFXX
START DATE: July 7, 1984
SIZE: as of August 31, 1998,
more than $1.1 billion
MANAGER: Diane McLaughlin,
since 1997; manager, various
Fidelity and Spartan municipal
money market funds; joined
Fidelity in 1992
(checkmark)
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
8/31/98 2/28/98 8/31/97
0 - 30 73 60 75
31 - 90 17 20 15
91 - 180 2 14 0
181 - 397 8 6 10
WEIGHTED AVERAGE MATURITY
8/31/98 2/28/98 8/31/97
FIDELITY CALIFORNIA MUNICIPAL
MONEY MARKET FUND 39 DAYS 46 DAYS 45 DAYS
CALIFORNIA TAX-FREE
MONEY MARKET FUNDS AVERAGE* 43 DAYS 40 DAYS 46 DAYS
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF AUGUST 31, 1998 AS OF FEBRUARY 28, 1998
Row: 1, Col: 1, Value: 63.0
Row: 1, Col: 2, Value: 21.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 12.0
Row: 1, Col: 5, Value: 1.0
Row: 1, Col: 1, Value: 55.0
Row: 1, Col: 2, Value: 24.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 17.0
Row: 1, Col: 5, Value: 2.0
Variable rate demand
notes (VRDNs) 63%
Commercial paper
(including CP mode) 21%
Tender bonds 3%
Municipal notes 12%
Other 1%
Variable rate demand
notes (VRDNs) 55%
Commercial paper
(including CP mode) 24%
Tender bonds 2%
Municipal notes 17%
Other 2%
*SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENTS AUGUST 31, 1998 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - 96.3%
Alameda County Ind. Dev. Auth. Ind. Rev., VRDN: 011106AS
Rfdg. (Longview Fibre Co.) Series 1988, 3.25%,
LOC ABN-AMRO Bank $ 1,750 $ 1,750 011106AD
(Edward L. Shimmon, Inc. Proj.) Series 1996 A, 2.80%,
LOC Banque Nationale de Paris (b) 2,100 2,100 011106AS
(Meskimen Family Trust Proj.) 2.80%, LOC Banque
Nationale de Paris 2,000 2,000 011107AH
Alameda County Multi-Family Hsg. Rev.
(Berkeley Proj.) Series 1998 A, 2.80%,
LOC Wells Fargo Bank, NA, VRDN (b) 2,400 2,400 011109BH
Anaheim Multi-Family Hsg. Rev.
(Sage Park Proj.) Series A, 2.40%, LOC Bank of
America Nat'l. Trust and Savings, VRDN (b) 1,100 1,100 032557BB
Assn. of Bay Area Govt. Fin. Auth.
(L.S. Packard Children Hosp. at Stanford Proj.), 2.60%,
(AMBAC Insured) (Liquidity Facility Bayerische
Hypotheken und Wechsel) VRDN 10,000 10,000 00037EBJ
Azusa Multi-Family Hsg. Rev. (Pacific Glen Apt. Proj.)
Series 1994, 3.10% (Continential Casualty Co.
Guaranteed) VRDN 4,300 4,300 055020AZ
California Dept. of Veterans Affairs Participating VRDN (c): 130628TZ
Series PA-315, 3.26% (Liquidity Facility Merrill
Lynch & Co. Inc.) (b) 2,100 2,100 130628TZ
Series FR/RI-A17, 3.65% (Liquidity Facility Nat'l.
Westminster Bank, PLC) (b) 14,750 14,750 130658GK
California Econ. Dev. Fin. Auth. Ind. Dev. Rev., VRDN: 13066RAA
(Joseph Schmidt Proj.) Series A, 2.80%,
LOC Banque Nationale de Paris (b) 1,500 1,500 13066RAC
(KQED Inc. Proj.) 2.25%, LOC Wells Fargo Bank, NA 2,250 2,250
13066RAA
(Kuhnash Properties III, LLC/Arkay Plastics, CA, LLC Proj.)
Series 1997, 2.90%, LOC PNC Bank, Ohio (b) 1,000 1,000 13066PAJ
(Lion Raisins Proj.) Series 1998, 2.50%, LOC Bank of
America Nat'l. Trust and Savings (b) 1,000 1,000 13066PBA
(Mercury Air Group Proj.) 2.40%, LOC BankBoston, NA (b) 4,000 4,000
13066RAF
(Volk Enterprises) Series 1996, 2.40%, LOC Harris
Trust & Savings 1,800 1,800 13066PAF
California Edl. Facs. Auth. Rev. Participating VRDN Series 1998,
3.65% (Liquidity Facility Bank of New York, NA) (c) 5,200 5,200
1301744S
California Gen. Oblig.: 1306219E
CP: 1306219E
3.15% 10/1/98 10,000 10,000 1306219F
3.10% 10/7/98 4,200 4,200 1306219H
3.45% 10/7/98 11,200 11,200 1306219B
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Gen. Oblig.: 1306219E - continued
CP: 1306219E
3.45% 10/8/98 $ 11,200 $ 11,200 1306219C
3.10% 10/9/98 10,000 10,000 1306219J
3.40% 10/13/98 7,000 7,000 1306209V
2.95% 10/16/98 12,500 12,500 1306219E
3% 10/16/98 12,700 12,700 1306219G
Participating VRDN (c): 130628GN
Series 1996 L, 3.43% (Liquidity Facility
Caisse des Depots et Consignations) 7,570 7,570 130628JV
Series PA-238, 3.26% (Liquidity Facility Merrill
Lynch & Co.) 6,525 6,525 130628P4
Series SGB-7, 3.25% (Liquidity Facility Societe Generale) 2,700
2,700 130628GW
Series SGB-15, 3.25% (Liquidity Facility Societe Generale) 1,000
1,000 130628HC
Series SG-84, 3.26% (Liquidity Facility Society Generale) 1,800
1,800 130628GN
California Hsg. Fin. Agcy. 13033EDZParticipating VRDN (c): 13033EDZ
Series 1994-1, 3.41% (Liquidity Facility State Street
Bank & Trust Co.) (b) 5,326 5,326 188847AA
Series 1994 H, 3.46% (Liquidity Facility Citibank, NA) (b) 4,000
4,000 269896Y8
Series 1994 H, 3.70% (Liquidity Facility Bayerische
Hypotheken und Wechsel) (b) 8,820 8,820 13033EU5
Series 1996 C1, 3.36% (Liquidity Facility Bank of America
Nat'l. Trust and Savings) (b) 3,225 3,225 13033ETK
Series PA-58, 3.21% (Liquidity Facility Merrill Lynch & Co.) 3,700
3,700 13033CZ9
Series PA-90, 3.26% (Liquidity Facility Merrill Lynch & Co.) (b)
1,270 1,270 13033ECR
Series PA-112, 3.26% (Liquidity Facility Merrill
Lynch & Co.) (b) 2,250 2,250 13033EPH
Series PT-14, 3.21% (Liquidity Facility Commerzbank,
Germany) 3,110 3,110 13033CZ7
Series PT-40A, 3.26% (Liquidity Facility Commerzbank,
Germany) (b) 6,700 6,700 13033EDT
Series PT-40B, 3.26% (Liquidity Facility Bayerische
Hypotheken und Wechsel) (b) 10,640 10,640 13033EDV
Series PT-40D, 3.26% (Liquidity Facility Banque Nationale
de Paris) (BPA Merrill Lynch & Co.) (b) 60 60 13033EDZ
Series PT-56, 3.26% (Liquidity Facility Credit Suisse
First Boston) (b) 825 825 13033EJC
California Hsg. Fin. Agcy. Bonds: 13033EU2
Home Mtg. Rev.:
Series 1998 C, 3.55% 2/1/99 (FGIC Insured) (b) 2,215 2,215
13033EU2
Series 1998 E, 3.55%, tender 3/12/99 (b) 10,500 10,500 13033EU4
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Hsg. Fin. Agcy. Bonds: - continued 130330EA
Single-Family Mtg. Rev. Series 1998 B, 3.60%, tender
4/1/99 (FGIC Capital Market Services Guaranteed) (b) $ 5,500 $ 5,500
130330EA
1309952PCalifornia Poll. Cont. Fin. Auth. (Pacific Gas & Elec. Co.
Proj.): 1309952P
Bonds Series 1996 D, 2.90%, 9/25/98,
LOC United Bank of Switzerland, CP mode 3,200 3,200 1309952P
Bonds Series 1996 E: 1309952L
130995YR 3.50%, 9/10/98, LOC Morgan Guaranty Trust Co.,
NY, CP mode 5,000 5,000 130995YR
3.55%, 9/10/98, LOC Morgan Guaranty Trust Co.,
NY, CP mode 6,100 6,100 130995YY
1309952L 3.45%, 11/12/98, LOC Morgan Guaranty Trust Co.,
NY, CP mode 5,900 5,900 1309952L
VRDN: 130534XL
Series 1996 A, 2.60%, LOC Swiss Bank Corp. (b) 600 600 130534WY
Series 1996 C, 3.20%, LOC Bank of America Nat'l. Trust
and Savings 13,000 13,000 130534XA
Series 1996 G, 3.25% 16,200 16,200 130534XE
Series 1997 B, 3.25%, LOC Deutsche Bank, AG (b) 9,900 9,900
130534XL
California Poll. Cont. Fin. Auth. Envir. Impt. (Browning Ferris
Ind. Proj.) Series 1997 B, 2.60%, LOC Deutsche Bank,
AG, VRDN (b) 2,500 2,500 13053RAH
California Poll. Cont. Fin. Auth. Resource Recovery Rev.
(Atlantic Richfield Co.) Series 1994 A, 3.30%, VRDN (b) 15,200
15,200 130535BF
California Poll. Cont. Fin. Auth. Solid Waste Disp. Rev.
(Shell Martinez Refining Co. Proj.) VRDN: 130536DV
Series 1994 A, 3.20% (b) 850 850 130536CT
Series 1994 B, 3.20% (b) 8,500 8,500 130536DH
Series 1996 B, 3.20% (b) 5,400 5,400 130536DV
California Public Works Board Lease Rfdg.
(Dept. of Corrections) Bonds: 13068HFQ
Rfdg. Series 1997 A, 4.50% 11/1/98 3,572 3,576 13068HFQ
Series 1997 B, 4.50% 9/1/98 2,000 2,000 13068HFQ
Series 1997 C, 4.50% 9/1/98 2,000 2,000 13068HFQ
California School Cash Reserve Prog. TRAN Series A,
4.50% 7/2/99 (AMBAC Insured) 31,500 31,717 130583BX
130905ASCalifornia Statewide Commty. Dev. Auth. Ind. Dev. Rev.,
VRDN: 130905AS
(Andercraft Prod. Inc.) Series 1989, 2.80%, LOC
California St. Teacher Retirement Sys. (b) 650 650 130905AS
(Cordeiro Vault Co., Inc. Proj.) Series 1996 M, 2.80%,
LOC California St. Teacher Retirement Sys. (b) 1,120 1,120
130905DS
(Enterprise Zone Facs. Rev. (JTF Enterprises, LLC Proj.)
Series 1996 A, 2.85%,
LOC Bank of America Nat'l. Trust and Savings (b) 3,000 3,000
130911AJ
(Eurodesign Cabinets Inc. Proj.) 2.80%, LOC
California St. Teacher Retirement Sys. (b) 800 800 130905BE
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Statewide Commty. Dev. Auth. Ind. Dev. Rev., VRDN:
130905AS - continued
(Fibrebond West Inc. Proj.) Series 1996 N, 2.75%,
LOC California St. Teacher Retirement Sys. (b) $ 2,700 $ 2,700
130905DT
(Fulton Properties Ltd, Inc.) Series 1996F, 2.85%,
LOC Wells Fargo Bank, NA (b) 3,485 3,485 130905DJ
(Lansmont Corp. Proj.) Series 1996 G 2.85%,
LOC Wells Fargo Bank, NA (b) 1,000 1,000 130905DK
(Lynwood Enterprises, LLC Proj.) Series 1997 D, 2.85%,
LOC Fleet Nat'l. Bank (b) 1,400 1,400 130905DX
(Marcel & Margrit Shurman Proj.) 2.80% (b) 1,625 1,625 130905AL
(Redline Synthetic Oil Corp.) 2.80%, LOC California St.
Teacher Retirement Sys. (b) 1,065 1,065 130905DA
(Setton Prop. Inc. Proj.) Series 1995 E, 2.85%,
LOC Wells Fargo Bank, NA (b) 2,590 2,590 130905CX
(St. Joseph Health System) 2.50% (b) 9,200 9,200 130909FU
(Sys. Engineering & Mgmt. Co.) 2.80%, LOC
California St. Teacher Retirement Sys. (b) 1,580 1,580 130905CS
(W&H Voortman Inc. Proj.) Series 1990, 2.80%,
LOC California St. Teacher Retirement Sys. (b) 1,020 1,020
130905BD
(Zarn Inc. Proj.) Series 1989, 2.80%, LOC California
Teacher Retirement Sys. (b) 455 455 130905AJ
(Zieman Manufacturing Co. Proj.) Series 1990, 2.80%,
LOC California St. Teacher Retirement Sys. (b) 420 420 130905BB
California Statewide Commty. Multi-Family Hsg. Rev., VRDN: 130905DR
(Evapco, Inc.) Series 1996 K, 2.85%, LOC
Nationsbank, NA (b) 1,415 1,415 130905DR
(Oakmont Stokton) Series 97C, 2.70%, LOC Commerzbank,
Germany (b) 5,960 5,960 13077VAU
(Sunrise of Moraga) Series 97G, 3.15%, LOC Commerzbank,
Germany (b) 1,200 1,200 13077VAY
Camarillo Multi-Family Hsg. Auth. Rev. (Hacienda de
Camarillo Proj.) Series 1996, 2.65% (Fannie Mae
Guaranteed) VRDN (b) 7,200 7,200 131785AC
Chula Vista Ind. Dev. Rev. (San Diego Gas & Elec. Co. Proj.):
17199BFN
Bonds: 17199BFN
797284CL Series C, 2.80% 9/1/98, CP mode (b) 4,000 4,000
797284CL
Series C, 3.55% 9/4/98, CP mode (b) 6,000 6,000 17199BFN
Series D, 3.70% 9/9/98, CP mode (b) 3,500 3,500 17199BFR
Series E, 3.70% 9/9/98, CP mode (b) 2,500 2,500 17199BFQ
Series B, 3.75%, VRDN (b) 7,700 7,700 17131HAK
Clovis Unified School Dist. TRAN 4% 6/30/99 4,000 4,009 189342RH
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Concord Multi-Family Mtg. Rev. (Crossroads Apt.)
Series 1988 B, 2.20% (Fannie Mae Guaranteed) VRDN $ 3,000 $ 3,000
206133AF
Covina Redev. Agcy. Multi-Family Hsg. Rev.
(Shadowhills Apt. Proj.) Series 1994 A, 3.10%
(Continental Casualty Co. Guaranteed) VRDN 500 500 223045BA
Dublin Hsg. Auth. Multi-Family Hsg. Rev.
(Sierra Iron Horse Trail Proj.) Series 1998 A, 2.40%,
LOC KBC Bank, NV, VRDN (b) 2,600 2,600 26362TAA
Escondido Commty. Dev. Commission Rev.
(Escondido Promenade Proj.) 2.40%, LOC Bank of
America Nat'l. Trust and Savings, VRDN (b) 1,000 1,000 296338AA
Fairfield Ind. Dev. Auth. (Meyer Cookward Ind. Proj.) 2.95%,
LOC Banque Nationale de Paris, VRDN (b) 4,100 4,100 303900AE
Fowler Ind. Dev. Auth. Ind. Dev. Rev. (Bee Sweet Citrus Inc. Proj.)
3.35%, LOC Bank of America Nat'l. Trust and Savings,
VRDN (b) 1,800 1,800 351131AA
Fontana Apt. Dev. Rev. Rfdg.
(Citrus Ave. Apt. Proj.) Series 1992 A, 2.40%,
LOC Bank of America Nat'l. Trust and Savings, VRDN 4,095 4,095
344603AB
Foothills Eastern Transport Corridor Agcy. Toll Road Rev., VRDN:
345105CT
Series 1995 D, 2.35%, LOC Morgan Guaranty Trust Co. 18,000 18,000
345105CT
Series 1995 D, 2.35%, LOC Morgan Guaranty Trust Co. 4,100 4,100
345105CS
Garden Grove Hsg. Auth. Multi-Family Hsg. Rev., VRDN: 365272AA
(Cal-Malabar Apt.) Series 1997 A, 2.65%
(Fannie Mae Guaranteed) 2,750 2,750 365272AA
(Valley View Sr. Villas Proj.) Series1990 A, 2.50%,
LOC Wells Fargo Bank, NA (b) 1,700 1,700 365265AB
Irvine Ranch Water Dist. (Dist. #102, #103, #105, & #106)
Series 1995, 3.15%, LOC Commerzbank, AG, VRDN 200 200 4636323Z
Kern County Gen. Oblig. TRAN 4.75% 10/1/98 6,050 6,055 492248AF
Lassen Muni. Util. Dist. Rev. Rfdg. Series 1996 A, 2.90% (FSA
Insured) (Liquidity Facility Credit Local de France) VRDN (b) 3,065
3,065 51808MAA
Livermore Ctfs. of Prtn. (Reverse Osmosis Proj.) 2.80%,
LOC Nat'l. Westminster Bank PLC, VRDN 900 900 538164EY
Long Beach Gen. Oblig. TRAN Series 1997-98,
4.50% 10/8/98 1,400 1,401 542399DZ
Long Beach Hbr. Rev.: 542424EX
Participating VRDN (c): 542424EX
Series 1998 A, 3.65% (Liquidity Facility Bayerische
Hypotheken und Wechsel Bank (b) 9,900 9,900 542424FZ
Series SG-73, 3.26% (Liquidity Facility Societe Generale) (b) 3,000
3,000 542424EX
Series A, CP: 54299EBS
3.65% 9/10/98 (b) 4,000 4,000 54299EBP
3.65% 9/10/98 (b) 1,500 1,500 54299EBQ
3.60% 10/16/98 (b) 7,600 7,600 54299EBS
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Los Angeles Commty. Redev. Agcy. Multi-Family Hsg.
Rev., VRDN: 544393AD
(Grand Promenade Proj.) Series 1985, 2.25%,
LOC Bank of America $ 1,500 $ 1,500 544393AD
(Promenade Towers) 2.60%, LOC Bank of America 6,475 6,475
544393AG
Los Angeles County Capital Asset Leasing Corp., CP: 54599AAS
3.10% 9/4/98, LOC Bayerische Landesbank Girozentrale,
LOC Morgan Guaranty Trust Co., NY 10,900 10,900 54599AAQ
3.10% 10/1/98, LOC Bayerische Landesbank Girozentrale,
LOC Morgan Guaranty Trust Co., NY 2,300 2,300 54599AAS
3.25% 10/7/98, LOC Bayerische Landesbank Girozentrale,
LOC Morgan Guaranty Trust Co., NY 4,700 4,700 54599AAR
Los Angeles County Gen. Oblig. TRAN Series 98-99 A,
4.50% 6/30/98 2,250 2,267 544657GP
Los Angeles County Local Edl. Agcy. Prtn. Ctfs. TRAN
Series B, 4.50% 9/30/98 3,500 3,502 544706AE
Los Angeles County Metropolitan Trans. Auth.: 544712EF
Participating VRDN (c): 544712EF
Series SGB-2, 3.25% (Liquidity Facility Societe Generale) 26,850
26,850 54471RAZ
Series SGB-3, 3.25% (Liquidity Facility Societe Generale) 5,400
5,400 54471RBB
Series SG-46, 3.26% (Liquidity Facility Societe Generale) 2,930
2,930 544712EF
Series SG-54, 3.26% (Liquidity Facility Societe Generale) 2,525
2,525 544712EH
Series 1993 A, 2.35% (MBIA Insured) VRDN 12,950 12,950 544712AV
Series A, 3.60% 10/9/98, LOC Bayerische Vereinsbank,
AG, LOC Canadian Imperial Bank of Commerce, CP 6,900 6,900
5447129L
Los Angeles County Multi-Family Hsg. Auth., VRDN: 544688GH
(Malibu Meadows Proj.) Series 1998 A, 2.55%
(Fannie Mae Guaranteed) 10,800 10,800 544688GH
(Meadowridge Apt. Proj.) Series 1994 B, 3.10%
(Continental Casualty Co. Guaranteed) 1,400 1,400 544562AN
Los Angeles County Pension Oblig. Rfdg. Rev.
Series 1996 A, 2.25% (BPA Nat'l. Westminster Bank, PLC)
VRDN (AMBAC Insured) 26,000 26,000 54474CDE
Los Angeles Dept. of Water and Power (Elec. Plant Short
Term Rev. Certificate) CP: 54499FAP
3.70% 9/15/98, LOC Bank of Nova Scotia,
LOC Toronto-Dominion Bank 2,900 2,900 54499FAL
2.95% 9/18/98, LOC Bank of Nova Scotia,
LOC Toronto-Dominion Bank 4,000 4,000 54499FAP
3.40% 10/16/98, LOC Bank of Nova Scotia,
LOC Toronto-Dominion Bank 3,000 3,000 54499FAN
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Los Angeles Gen. Oblig.: 544358PK
Bonds 4.50% 12/1/98 $ 2,490 $ 2,495 544358PK
TRAN Series 1998: 544350L8
4% 6/30/99 2,630 2,639 544350L8
4.25% 6/30/99 9,600 9,653 544350L9
Los Angeles Hbr. Dept. Participating VRDN (c): 544552FS
Series 1996 B, 3.65% (BPA Bank of New York, NA) (b) 11,185 11,185
544552JB
Series SG-59, 3.26% (Liquidity Facility Societe Generale) (b) 4,725
4,725 544552FS
Los Angeles Multi-Family Hsg. Rev., Series 1985 K, 2.75%,
LOC Federal Home Loan Bank of San Francisco, VRDN 12,800 12,800
544582CD
Los Angeles Ontario Intl. Arpt. Participating VRDN, Series
SG-61, 3.26% (Liquidity Facility Societe Generale) (b)(c) 3,400
3,400 544435UY
Los Angeles Unified School Dist.: 544644BP
TRAN: 544644AL
4.50% 10/1/98 7,500 7,506 544644AL
3.60% 12/9/98 15,000 15,000 544644BP
(Belmont Learning Complex) Series 1997 A, 2.50%,
LOC Commerzbank, Germany, VRDN 2,200 2,200 544648GN
Los Angeles Wastewater Sys.: 544999FC
CP: 544999FC
3.70% 9/9/98, LOC Morgan Guaranty Trust Co., NY,
LOC United Bank of Switzerland 3,200 3,200 544999FB
3.15% 10/7/98, LOC Morgan Guaranty Trust Co., NY,
LOC United Bank of Switzerland 7,500 7,500 544999FC
Participating VRDN, Series SGA-26, 3.25% (Liquidity
Facility Societe Generale) (c) 1,000 1,000 544652YP
Los Rios Commty. College Dist. TRAN 4.75% 12/30/98 6,500 6,524
545624CB
M-S-R Pub. Pwr. Agcy. Rev. (San Juan Proj.)
Series 1997E, 2.45% (MBIA Insured)
(BPA Nat'l. Westminster Bank PLC) VRDN 4,600 4,600 553751HB
Metropolitan Water Dist. of Southern California: 59199JCY
CP: 59199JCY
Series A: 59199JCY
3.55% 9/4/98 1,000 1,000 59199JDA
3.45% 9/8/98 7,200 7,200 59199JCY 59199JDA
Series B: 59199JDC
3.50% 9/10/98 1,000 1,000 59199JDC
3.10% 9/4/98 3,500 3,500 59199JDG 59199JDB
3.55% 9/4/98 4,000 4,000 59199JDB 59199JDE
3.70% 9/4/98 2,400 2,400 59199JDE
VRDN: 592663TL
Rfdg. Series 1996 A, 2.35% (BPA ABN-AMRO Bank, NV)
(AMBAC Insured) 6,500 6,500 592663QV
Series 1997 C, 2.35% (Liquidity Facility Bank of
America Nat'l. Trust and Savings) 4,000 4,000 592663TL
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Oceanside Multi-Family Rev. (Lakeridge Apt. Proj.) Series 1994,
3.10% (Continental Casualty Co. Guaranteed) VRDN $ 6,700 $ 6,700
675370AD
Ontario Ind. Dev. Auth. Rev. (Safari Land Proj.) Series 1989,
2.75%, LOC Bank of America Nat'l. Trust and Savings,
VRDN (b) 2,500 2,500 682908AA
Orange County Apt. Dev. Rev., VRDN: 684209JW
(Foothill Oaks Apt. Proj.) Series 1989 B, 2.40%,
LOC Bank of America Nat'l. Trust and Savings (b) 610 610 684209JW
(Hidden Hills) Series 1985 U-C, 2.85%, LOC Chase
Manhattan Bank 7,000 7,000 684209JM
(Lanteen Pines Proj.) 2.25%, LOC Bank of America
Nat'l. Trust and Savings 1,700 1,700 684263AA
(Monarch Bay Apt. Proj.) Series 1985 T, 2.25%,
LOC Bank of America. 11,200 11,200 684209JT
(Oasis Martinique) Issue 1 1998, 2.50%
(Fannie Mae Guaranteed) 10,000 10,000 684262AG
(Wood Canyon Villas) Issue 1991 B, 2.50%,
LOC Bank of America Nat'l. Trust and Savings (b) 4,900 4,900
684209KA
Orange County Ind. Dev. Rev. (Control Air
Conditioning Corp./Ellis Enterprises) Series 1997, 3.45%,
LOC California St. Teacher Retirement Sys., VRDN 900 900 684091AA
Orange County Local Trans. Auth. Participating VRDN
Series 1997, 3.55% (Liquidity Facility Bank of
New York, NA) (c) 5,400 5,400 684273DU
Orange County San. Dist. Rev. (#1, 2, 3, 5, 6, 7, & 11) 2.35%,
(Liquidity Facility Morgan Guaranty Trust Co., NY) VRDN 3,700 3,700
684285BL
Oxnard Redev. Agcy. Ctfs. of Prtn.
(Channel Islands Bus. Ctr. Proj.) 3.575%,
LOC Wells Fargo Bank, NA, VRDN 3,195 3,195 692018AA
Pittsburg Multi-Family Hsg. Auth. Rev. (Fountain Plaza Apt.)
3.25%, VRDN (Fannie Mae Guaranteed) 8,100 8,100 724559AC
Pleasant Hill Redev. Agcy. Multi-Family Hsg. Rev.
(Chateau III Proj.) Series 1996 A, 3.15%,
LOC Commerzbank, Germany, VRDN (b) 800 800 72834PAA
Redlands Multi-Family Hsg. Rev. (Parkview Terrace Proj.)
2.40%, LOC Bank of America Nat'l. Trust and
Savings, VRDN 5,400 5,400 757591AD
Redondo Beach Redev. Agcy. Multi-Family Hsg. Rev.
(McCandless Senior Hsg. Proj.) Series 1995 A, 3.05%,
LOC Comerica Bank of Detroit, VRDN 3,500 3,500 757703AD
Riverside County Ctfs. of Participation (Aces Pub. Facs. Fin. Prog.)
Series 1985 B, 2.25%, LOC Commerzbank, Germany, VRDN 3,405 3,405
768901BP
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Riverside County Ind. Dev. Auth. (Merrick Engineering, Inc.)
3.45%, LOC Wells Fargo Bank, NA, VRDN (b) $ 985 $ 985 76911TBD
Riverside County School Dist. RAN 4.50% 10/1/98 7,000 7,005
76912HAD
Riverside Elec. Util. Participating VRDN, Series 98,
2.80% (Liquidity Facility Chase Manhattan Bank) (c) 3,400 3,400
768874MA
Sacramento County Arpt. Sys. Participating VRDN,
Series SGA-33, 3.25% (Liquidity Facility Societe Generale) (c) 3,100
3,100 786107CT
Sacramento County Multi-Family Hsg. Auth. Rev.
(California Place) Series B, 2.60%,
LOC Bank One Arizona, NA, VRDN (b) 4,500 4,500 786111CV
Sacramento County Gen. Oblig. TRAN 4.50% 9/30/98 5,600 5,603
786106FM
Sacramento Muni. Util. Dist. Participating VRDN, Series SGB-4,
3.25% (Liquidity Facility Societe Generale) (c) 4,000 4,000
7860047E
San Bernardino County Mtg. Rev. Rfdg.
(Pepperwood Apt.) Series 1993 A, 2.25%,
LOC Federal Home Loan Bank, VRDN 1,000 1,000 796900CL
San Diego County Gen. Oblig. Series B-1, 3% 10/1/98,
LOC Landesbank Hessen-Thuringen, CP 4,863 4,863 79739P9C
San Diego County Reg'l. Trans. Sales Tax Participating VRDN,
3.26% (Liquidity Facility Bankers Trust Corp., NY) (c) 3,000 3,000
797400EK
San Diego Gas & Elec. Participating VRDN (c): 797284CL 797284CL
Series FR/RI-1, 3.55% (Liquidity Facility Bank
of New York, NA) 8,000 8,000 797284CH
Series FR/RI-2, 3.55% (Liquidity Facility Bank
of New York, NA) 5,000 5,000 797284CL
San Diego Hsg. Auth. Multi-Family Hsg. Rev. Rfdg.
(Coral Pointe Apt. Proj.) Series 1993A, 3.20%
(Continential Casualty Co. Guaranteed) VRDN 3,265 3,265 79729HEQ
San Francisco City & County Int'l. Arpt. Rev. 3.45% 11/9/98,
LOC Bayerische Landesbank Girozentrale,
LOC Morgan Guaranty Trust Co., NY, CP (b) 4,000 4,000 7976529R
San Francisco City & County Int'l. Arpt. Rev., CP: 7976529P
Series 1997 B, 3.40% 11/9/98, LOC Bayerische Landesbank
Girozentrale, LOC Morgan Guaranty Trust Co., NY (b) 3,000 3,000
7976529S
Series A, 3.50% 11/5/98, LOC Bayerische Landesbank
Girozentrale, LOC Morgan Guaranty Trust Co., NY (b) 7,940 7,940
7976529P
San Francisco City & County Parking Auth. Participating VRDN,
Series 1996 A, 3.21% (Liquidity Facility Bank of
America Nat'l. Trust and Savings) (c) 2,900 2,900 797700CU
San Francisco City & County Participating VRDN (c): 797645KS
Series 1996 AA1, 3.31% (Liquidity Facility Bank
of America Nat'l. Trust and Savings) 3,775 3,775 797645KS
Series 1996 AA2, 3.31% (Liquidity Facility Bank
of America Nat'l. Trust and Savings) 2,240 2,240 797645KU
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
San Francisco City & County Redev. Prog. Participating VRDN,
Series 1997T, 3.26% (Liquidity Facility Caisse
des Depots et Consignations) (c) $ 1,405 $ 1,405 797714FY
San Francisco City & County Unified School Dist. TRAN: 79771TAN
Series 1997, 4.50% 10/30/98 1,500 1,502 79771TAM
Series 1998, 4.50% 9/22/99 5,000 5,056 79771TAN
San Joaquin Hills Trans. Corridor Agcy. Participating VRDN,
Series 1997 A, 3.21% (Liquidity Facility Commerzbank,
Germany) (c) 3,940 3,940 798111ED
San Jose Multi-Family Hsg. Rev., VRDN: 798165BL
(Almaden Lake Village Apt. Assoc.) Series 1997 A, 2.50%,
LOC Bank of America Nat'l. Trust and Savings (b) 2,800 2,800
798165BF
(Carlton Plaza) Series 98 A, 2.75%, LOC Commerzbank,
Germany (b) 4,000 4,000 798165BL
(Sienna Renaissance Apt) Series 1996 A, 2.50%,
LOC Key Bank Nat'l. Assoc. 6,000 6,000 798165BH
San Jose Redev. Agcy. Participating VRDN, Series PA-42I,
3.21% (Liquidity Facility Merrill Lynch & Co.) (c) 3,400 3,400
798147MC
San Jose Unified School Dist. TRAN (Santa Clara County)
4.50% 10/8/98 2,000 2,002 798186MM
San Leandro Multi-Family Hsg. Rev. (Carlton Plaza) 3.15%,
LOC Commerzbank, Germany, VRDN (b) 3,220 3,220 798448AF
Santa Barbara County Gen. Oblig. TRAN Series A,
4.50% 10/1/98 7,700 7,706 801320AH
Santa Clara County Gen. Oblig. TRAN 4.75% 10/1/98 7,200 7,206
801546LM
Santa Rosa Multi-Family Hsg. (Quail Run Apt./Santa Rosa
Hsg. Partners) Series 1997 A, 3.55%
LOC U.S. Bank of Washington, VRDN (b) 1,750 1,750 80262MBB
Simi Valley Multi-Family Hsg. Rev., VRDN: 828905BZ
(Creekside Village Proj.) Series 1993 A, 2.60%,
LOC Bank of America Nat'l. Trust and Savings 3,045 3,045 828905BZ
(Lincoln Wood Ranch Apt.) 2.50%, LOC Credit Suisse
First Boston 7,800 7,800 828905BY
South Coast Local Edl. Agcy. TRAN 4.50% 6/30/99
(MBIA Insured) 22,500 22,667 837431AD
Southern California Pub. Pwr. Auth.: 842475VR
Participating VRDN, Series SG-35, 3.21% (Liquidity
Facility Societe Generale) (c) 7,300 7,300 842475UU
VRDN: 842475VR
(Palo Verde Proj.) Series C, 2.25% (BPA Morgan Guaranty
Trust Co., NY) (AMBAC Insured) VRDN 6,000 6,000 842475VR
(Southern Transmission Proj.) 2.45% (BPA Morgan
Guaranty Trust Co., NY) (FSA Insured) 30,100 30,100 842477LX
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
University of California Rev.: 914113G8
Gen. Oblig. Series A, CP: 9141149C
2.80% 9/4/98 $ 6,221 $ 6,221 9141149C
3.45% 11/13/98 5,000 5,000 9141149B
Rfdg. Participating VRDN, Series 1997 G, 3.20%
(Liquidity Facility Corestates Bank) (c) 13,430 13,430 914113G8
Vallejo Multi-Family Hsg. Rev. (Hillside Terrace Apt./Vallejo
Hillside Assoc.) Series 1997 A, 2.65% (Fannie Mae
Guaranteed) VRDN (b) 3,725 3,725 919196AL
Vista City Ind. Dev. Auth. Rev. (Desalination Sys., Inc.)
Series 1995, 3%, LOC Wells Fargo Bank, NA, VRDN (b) 1,680 1,680
928310AC
1,087,156
GUAM - 0.9%
Guam Pwr Rev., CP: 745177AH
2.90% 9/18/98 (AMBAC Insured) 4,000 4,000 745177AH
2.90% 9/18/98 (AMBAC Insured) 6,300 6,300 745177AH
10,300
PUERTO RICO - 2.8%
Puerto Rico Commonwealth Gov't. Dev. Bank Rev., 2.50%
(MBIA Insured) LOC Credit Suisse First Boston, VRDN 2,300 2,300
745177AH
Puerto Rico Commonwealth Pub. Impt. Participating VRDN,
Series PT-63, 3.16%, (Liquidity Facility Bayerische
Hypotheken und Wechsel) (c) 5,600 5,600 745144X3
Puerto Rico Elec. Pwr. Auth. Participating VRDN: 745268H3
Series PA-346, 3.16% (Liquidity Facility Merrill
Lynch & Co.) (c) 3,800 3,800 745268H3
Series SGA-44, 3.18% (Liquidity Facility Societe Generale) 6,100
6,100 745268YT
Puerto Rico Hwy. & Trans. Auth.: 745181PM
Participating VRDN (c): 745181PM
Series PA-114, 3.16% (Liquidity Facility Merrill
Lynch & Co., Inc.) 8,335 8,335 745181PM
Series PA-331, 3.16% (Liquidity Facility Merrill
Lynch & Co., Inc.) 2,000 2,000 745190BB
Series SGA-44, 2.75% (AMBAC Insured) (Liquidity
Facility Bank of Nova Scotia) VRDN 3,800 3,800 745190AZ
31,935
TOTAL INVESTMENTS IN SECURITIES - 100% $ 1,129,391
Total Cost for Income Tax Purposes $ 1,129,391
SECURITY TYPE ABBREVIATIONS
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TRAN - Tax and Revenue Anticipation
Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At February 28, 1998, the fund had a capital loss carryforward of
approximately $471,000 of which $446,000, $7,000, and $18,000 will
expire on February 28, 2003, 2005 and 2006, respectively.
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS(EXCEPT PER-SHARE AMOUNT) AUGUST 31, 1998 (UNAUDITED)
ASSETS
INVESTMENT IN SECURITIES, AT VALUE - $ 1,129,391
SEE ACCOMPANYING SCHEDULE
CASH 36
RECEIVABLE FOR INVESTMENTS SOLD 5,602
RECEIVABLE FOR FUND SHARES SOLD 24,713
INTEREST RECEIVABLE 6,037
TOTAL ASSETS 1,165,779
LIABILITIES
PAYABLE FOR INVESTMENTS PURCHASED $ 5,056
PAYABLE FOR FUND SHARES REDEEMED 8,817
DISTRIBUTIONS PAYABLE 39
ACCRUED MANAGEMENT FEE 355
OTHER PAYABLES AND ACCRUED EXPENSES 235
TOTAL LIABILITIES 14,502
NET ASSETS $ 1,151,277
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 1,151,798
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (521)
NET ASSETS, FOR 1,151,819 SHARES OUTSTANDING $ 1,151,277
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($1,151,277 (DIVIDED BY) 1,151,819 SHARES)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED AUGUST 31, 1998 (UNAUDITED)
INTEREST INCOME $ 18,169
EXPENSES
MANAGEMENT FEE $ 2,002
TRANSFER AGENT FEES 901
ACCOUNTING FEES AND EXPENSES 76
NON-INTERESTED TRUSTEES' COMPENSATION 4
CUSTODIAN FEES AND EXPENSES 27
REGISTRATION FEES 66
AUDIT 17
LEGAL 6
MISCELLANEOUS 1
TOTAL EXPENSES BEFORE REDUCTIONS 3,100
EXPENSE REDUCTIONS (4) 3,096
NET INTEREST INCOME 15,073
NET REALIZED GAIN (LOSS) ON INVESTMENTS (48)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 15,025
OTHER INFORMATION
EXPENSE REDUCTIONS: $ 4
CUSTODIAN CREDITS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED YEAR ENDED
AUGUST 31, 1998 FEBRUARY 28,
(UNAUDITED) 1998
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 15,073 $ 26,074
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) (48) (15)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 15,025 26,059
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (15,073) (26,074)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 3,245,775 3,543,308
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 14,729 25,455
COST OF SHARES REDEEMED (3,084,960) (3,412,672)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 175,544 156,091
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 175,496 156,076
NET ASSETS
BEGINNING OF PERIOD 975,781 819,705
END OF PERIOD $ 1,151,277 $ 975,781
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED YEAR ENDED YEARS ENDED
AUGUST 31, 1998 FEBRUARY 28, FEBRUARY 29, FEBRUARY 28,
(UNAUDITED) 1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD
INCOME FROM INVESTMENT .014 .030 .029 .032 .026 .020
OPERATIONS
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST (.014) (.030) (.029) (.032) (.026) (.020)
INCOME
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD
TOTAL RETURN B, C 1.45% 3.07% 2.90% 3.21% 2.60% 1.97%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF $ 1,151 $ 976 $ 820 $ 733 $ 675 $ 612
PERIOD (IN MILLIONS)
RATIO OF EXPENSES TO .59% A .62% .62% .64% .62% .64%
AVERAGE NET ASSETS
RATIO OF EXPENSES TO .59% A .61% D .61% D .64% .62% .64%
AVERAGE NET ASSETS
AFTER EXPENSE
REDUCTIONS
RATIO OF NET INTEREST 2.87% A 3.02% 2.86% 3.17% 2.58% 1.95%
INCOME TO AVERAGE
NET ASSETS
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1998 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan California Municipal Income (the income fund) is a fund of
Fidelity California Municipal Trust. Spartan California Municipal
Money Market Fund and Fidelity California Municipal Money Market Fund
(the money market funds) are funds of Fidelity California Municipal
Trust II. Each trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company. Fidelity California Municipal Trust and Fidelity California
Municipal Trust II (the trusts) are organized as a Massachusetts
business trust and a Delaware business trust, respectively. Each fund
is authorized to issue an unlimited number of shares. The financial
statements have been prepared in conformity with generally accepted
accounting principles which require management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the money
market funds and the income fund:
SECURITY VALUATION.
INCOME FUND. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Securities for
which quotations are not readily available are valued at
their fair value as determined in good faith under consistently
applied procedures under the general supervision of the Board of
Trustees. Short-term securities with remaining maturities of sixty
days or less for which quotations are not readily available are valued
at amortized cost or original cost plus accrued interest, both of
which approximate current value.
MONEY MARKET FUNDS. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for the fiscal year. The schedules of investments
include information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of discount, is accrued as earned. For the money
market funds, accretion of discount represents unrealized gain until
realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
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 transactions, market discount, capital loss
carryforwards and losses deferred due to wash sales and futures. The
fund also utilized earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for
income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and
may affect the per-share allocation between net investment income and
realized and unrealized gain (loss). Accumulated undistributed net
realized gain (loss) on investments may include temporary book and tax
basis differences that will reverse in a subsequent period. Any
taxable 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. Each 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 each applicable fund's
schedule of investments. Each fund may receive compensation for
interest forgone in the purchase of a when-issued security. With
respect to purchase commitments, each fund identifies securities as
segregated in its custodial records with a value at least equal to the
amount of the commitment. Losses may arise due to changes in the
market value of the underlying securities, 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 income fund may use futures contracts to manage
its exposure to the bond market and to fluctuations in interest rates.
Buying futures tends to increase the fund's exposure to the underlying
instrument, while selling futures tends to decrease the fund's
exposure to the underlying instrument or hedge other fund investments.
Futures contracts involve, to varying degrees, risk of loss in excess
of the futures variation margin reflected in the Statement of Assets
and Liabilities. The underlying face amount at value of any open
futures contracts at period end is shown in the schedule of
2. OPERATING POLICIES -
CONTINUED
FUTURES CONTRACTS - CONTINUED
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.
Information regarding purchases and sales of securities (other than
short-term securities), and the market value of future contracts
opened and closed, is included under the caption "Other Information"
at the end of the income fund's schedule of investments.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the investment adviser for the income fund and
Fidelity California Municipal Money Market Fund, Fidelity Management &
Research Company (FMR) receives a monthly fee that is calculated on
the basis of a group fee rate plus a fixed individual fund fee rate
applied to the average net assets of 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 .38% of average net assets for the income fund
and Fidelity California Municipal Money Market Fund.
As the investment adviser for Spartan California Municipal Money
Market Fund, FMR pays all expenses, except the compensation of the
non-interested Trustees and certain exceptions such as interest,
taxes, brokerage commissions and extraordinary expenses. FMR receives
a fee that is computed daily at an annual rate of .50% of the fund's
average net assets.
FMR also bears the cost of providing shareholder services to Spartan
California Municipal Money Market Fund. To offset the cost of
providing these services, FMR or its affiliates collect certain
transaction fees from the fund's shareholders which amounted to $8,000
for the period.
SUB-ADVISER FEE. As the money market funds' investment sub-adviser,
Fidelity Investments Money Management, Inc., a wholly owned subsidiary
of FMR, receives a fee from FMR of 50% of the management fee payable
to FMR. The fees are paid prior to any voluntary expense
reimbursements which may be in effect.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian and transfer and shareholder servicing
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
agent for the income fund and Fidelity California Municipal Money
Market Fund. UMB has entered into a sub-contract with Fidelity Service
Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the
activities associated with the funds' transfer and shareholder
servicing agent and accounting functions. The funds pay account fees
and asset-based fees that vary according to account size and type of
account. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements. The accounting fee is
based on the level of average net assets for the month plus
out-of-pocket expenses.
For the period, the transfer agent fees were equivalent to an
annualized rate of .12% and .17% of average net assets for Spartan
California Municipal Income Fund and Fidelity California Municipal
Money Market Fund, respectively.
5. BANK BORROWINGS.
Each fund is permitted to have bank borrowings for temporary or
emergency purposes to fund shareholder redemptions. Each fund has
established borrowing arrangements with certain banks. Under the most
restrictive arrangement, each fund must pledge to the bank securities
having a market value in excess of 220% of the total bank borrowings.
The interest rate on the borrowings is the bank's base rate, as
revised from time to time. Information regarding a fund's
participation in the program is included under the caption "Other
Information" at the end of each applicable fund's schedule of
investments.
6. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the income fund's operating
expenses (excluding interest, taxes, brokerage commissions and
extraordinary expenses) above an annual rate of .53% of average net
assets. For the period, the reduction under this arrangement is shown
under the caption "Other Information" on the fund's Statement of
Operations.
In addition, the income fund, Fidelity California Municipal Money
Market Fund and FMR, on behalf of Spartan California Municipal Money
Market Fund, have entered into arrangements with their 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. For the
period, the reductions under these arrangements are shown under the
caption "Other Information" on the fund's Statement of Operations.
7. SHARE TRANSACTIONS.
Share transactions for the income fund were as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SHARES DOLLARS
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
AUGUST 31, FEBRUARY 28, AUGUST 31, FEBRUARY 28,
AMOUNTS IN THOUSANDS 1998 1998 1998 1998
SHARES SOLD 11,375 15,402 $ 139,573 $ 186,579
ISSUED IN EXCHANGE FOR THE - 33,067 - 398,129
NET ASSETS OF SPARTAN
CALIFORNIA MUNICIPAL
INCOME FUND
ISSUED IN EXCHANGE FOR THE - 5,773 - 69,510
NET ASSETS OF SPARTAN
CALIFORNIA INTERMEDIATE
MUNICIPAL INCOME FUND
ISSUED IN EXCHANGE FOR THE - 16,576 - 199,247
NET ASSETS OF FIDELITY
CALIFORNIA INSURED
MUNICIPAL INCOME FUND
REINVESTMENT OF DISTRIBUTIONS 1,937 2,641 23,801 31,993
SHARES REDEEMED (10,439) (14,378) (127,986) (173,840)
NET INCREASE (DECREASE) 2,873 59,081 $ 35,388 $ 711,618
</TABLE>
8. MERGER INFORMATION.
On August 14, August 21, and August 28, 1997, the income 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, the 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 33,067,000 shares of the fund for
36,796,000 shares then outstanding of Spartan California Municipal
Income Fund (each valued at $10.82). Spartan California Municipal
Income Fund's net assets, including $21,268,000 of unrealized
appreciation, were combined with the fund for total assets after the
acquisition of $925,132,000.
The fund's acquisition of Spartan California Intermediate Municipal
Income Fund was accomplished by an exchange of 5,773,000 shares of the
fund for 6,889,000 shares then outstanding of Spartan California
Intermediate Municipal Income Fund (each valued at $10.09). Spartan
California Intermediate Municipal Income Fund's net assets, including
$2,672,000 of unrealized appreciation, were combined with the fund for
total assets after the acquisition of $999,946,000.
8. MERGER INFORMATION -
CONTINUED
The fund's acquisition of Fidelity California Insured Municipal Income
Fund was accomplished by an exchange of 16,576,000 shares of the fund
for 18,868,000 shares then outstanding of Fidelity California Insured
Municipal Income Fund (each valued at $10.56). Fidelity California
Insured Municipal Income Fund's net assets, including $9,713,000 of
unrealized appreciation, were combined with the fund for total assets
after the acquisition of $1,206,722,000.
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpress(registered trademark) provides a single
toll-free number to access account balances, positions, quotes and
trading. It's easy to navigate the service, and on your first call,
the system will help you create a personal identification number (PIN)
for security.
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(COMPUTER_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at
1-800-544-7272 and we'll send you an America Online CD or disk with up
to 50 free hours of Web access.
(COMPUTER_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.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
815 East Birch Street
Brea, CA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
GEORGIA
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
One North Franklin Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
INDIANA
4729 East 82nd Street
Indianapolis, IN
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
NEW YORK
1055 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
16850 SW 72 Avenue
Tigard, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
6150 Poplar Road
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
UTAH
215 South State Street
Salt Lake City, UT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and
send you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER, MONEY MARKET FUNDS
Fidelity Investments Money
Management, Inc.
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
Boyce I. Greer, Vice President -
MONEY MARKET FUNDS
Dwight D. Churchill, Vice President -
INCOME FUND
Diane McLaughlin, Vice President -
MONEY MARKET FUNDS
Christine J. Thompson, Vice President -
INCOME FUND
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Stanley N. Griffith, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
CMS-SANN_1098 62217
1.536892.101
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress(registered trademark) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(FIDELITY_LOGO_GRAPHIC) (REGISTERED TRADEMARK)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
