SPARTAN(registered trademark)
(REGISTERED TRADEMARK)
CALIFORNIA MUNICIPAL
FUNDS
AND
FIDELITY
CALIFORNIA MUNICIPAL
MONEY MARKET FUND
ANNUAL REPORT
FEBRUARY 28, 1998
CONTENTS
<TABLE>
<CAPTION>
<S> <C> <C>
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND (FORMERLY FIDELITY
CALIFORNIA MUNICIPAL INCOME FUND)
4 PERFORMANCE
7 FUND TALK: THE MANAGER'S OVERVIEW
10 INVESTMENT CHANGES
11 INVESTMENTS
30 FINANCIAL STATEMENTS
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
34 PERFORMANCE
36 FUND TALK: THE MANAGER'S OVERVIEW
38 INVESTMENT CHANGES
39 INVESTMENTS
51 FINANCIAL STATEMENTS
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
55 PERFORMANCE
57 FUND TALK: THE MANAGER'S OVERVIEW
59 INVESTMENT CHANGES
60 INVESTMENTS
73 FINANCIAL STATEMENTS
NOTES 76 NOTES TO THE FINANCIAL STATEMENTS
REPORT OF INDEPENDENT 82 THE AUDITORS' OPINION.
ACCOUNTANTS
DISTRIBUTIONS 83
</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:
Through the first two months of 1998, investors were still trying to
discern what effects ongoing troubles in Southeast Asia might have on
global economies and markets. The U.S. stock market continued to do
well despite these ongoing uncertainties, paced by sustained corporate
profits and signs of recovery in the Asian markets. Bonds, on the
other hand, struggled somewhat in February as the pace of stock
investors' "flight to quality" slowed in the face of this positive
news, and issuers flooded the market with new debt to take advantage
of lower interest rates. Nonetheless, these lower rates, subdued
inflation and moderate growth created a generally favorable climate
for bond investors.
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.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. You should also keep money you'll need in the near future in a
more stable investment.
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 return and dividends
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
SPARTAN CA MUNI INCOME 9.89% 35.56% 112.27%
LB CALIFORNIA MUNI BOND 9.72% N/A N/A
CALIFORNIA MUNICIPAL DEBT FUNDS AVERAGE 9.37% 34.62% 110.00%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you 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 one year average represents a peer
group of 102 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 FEBRUARY 28, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
SPARTAN CA MUNI INCOME 9.89% 6.27% 7.82%
LB CALIFORNIA MUNI BOND 9.72% N/A N/A
CALIFORNIA MUNICIPAL DEBT FUNDS AVERAGE 9.37% 6.12% 7.69%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a slightly different figure than
that obtained by averaging the cumulative total returns and
annualizing the result.)
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19980228 19980311 150814 S00000000000001
Spartan CA: Muni Income LB Municipal Bond
00091 LB015
1988/02/29 10000.00 10000.00
1988/03/31 9677.14 9884.00
1988/04/30 9716.28 9959.12
1988/05/31 9755.98 9930.34
1988/06/30 9914.12 10075.62
1988/07/31 9972.35 10141.31
1988/08/31 10012.73 10150.23
1988/09/30 10230.71 10333.95
1988/10/31 10468.91 10515.83
1988/11/30 10348.79 10419.51
1988/12/31 10533.09 10526.10
1989/01/31 10679.63 10743.78
1989/02/28 10576.82 10621.19
1989/03/31 10561.29 10595.81
1989/04/30 10867.71 10847.35
1989/05/31 11097.93 11072.65
1989/06/30 11239.27 11223.02
1989/07/31 11341.11 11375.76
1989/08/31 11203.25 11264.39
1989/09/30 11217.69 11230.83
1989/10/31 11329.42 11368.18
1989/11/30 11505.57 11567.12
1989/12/31 11551.84 11661.74
1990/01/31 11471.05 11606.58
1990/02/28 11617.66 11709.88
1990/03/31 11643.37 11713.39
1990/04/30 11477.38 11628.59
1990/05/31 11753.24 11882.44
1990/06/30 11861.28 11986.89
1990/07/31 12044.56 12163.09
1990/08/31 11877.84 11986.49
1990/09/30 11924.98 11993.32
1990/10/31 12079.07 12210.88
1990/11/30 12309.07 12456.44
1990/12/31 12355.65 12510.62
1991/01/31 12467.83 12678.52
1991/02/28 12513.87 12788.82
1991/03/31 12527.58 12793.42
1991/04/30 12675.30 12963.57
1991/05/31 12801.22 13078.82
1991/06/30 12804.08 13065.87
1991/07/31 12965.48 13225.02
1991/08/31 13081.65 13399.19
1991/09/30 13221.87 13573.65
1991/10/31 13385.13 13695.81
1991/11/30 13387.13 13734.02
1991/12/31 13610.82 14028.75
1992/01/31 13684.13 14060.74
1992/02/29 13707.47 14065.24
1992/03/31 13700.00 14070.44
1992/04/30 13808.43 14195.67
1992/05/31 13980.29 14362.75
1992/06/30 14198.49 14603.76
1992/07/31 14638.21 15041.58
1992/08/31 14435.20 14894.92
1992/09/30 14508.86 14992.34
1992/10/31 14239.92 14844.96
1992/11/30 14572.09 15110.84
1992/12/31 14796.89 15265.12
1993/01/31 14973.52 15442.65
1993/02/28 15658.22 16001.21
1993/03/31 15472.53 15832.08
1993/04/30 15611.32 15991.82
1993/05/31 15702.20 16081.70
1993/06/30 15955.25 16350.10
1993/07/31 15955.23 16371.52
1993/08/31 16344.29 16712.37
1993/09/30 16550.95 16902.73
1993/10/31 16579.20 16935.35
1993/11/30 16408.02 16786.15
1993/12/31 16784.60 17140.51
1994/01/31 16974.58 17336.25
1994/02/28 16505.59 16887.24
1994/03/31 15661.53 16199.59
1994/04/30 15727.31 16336.97
1994/05/31 15835.60 16478.61
1994/06/30 15673.77 16377.92
1994/07/31 15993.22 16678.13
1994/08/31 16048.27 16735.84
1994/09/30 15802.04 16490.15
1994/10/31 15414.36 16197.29
1994/11/30 15035.77 15904.44
1994/12/31 15293.85 16254.50
1995/01/31 15841.88 16719.05
1995/02/28 16355.21 17205.24
1995/03/31 16523.18 17402.93
1995/04/30 16526.32 17423.47
1995/05/31 17081.07 17979.45
1995/06/30 16859.43 17823.03
1995/07/31 17013.60 17991.99
1995/08/31 17212.58 18220.13
1995/09/30 17365.82 18335.46
1995/10/31 17658.15 18602.06
1995/11/30 18009.35 18910.67
1995/12/31 18226.19 19092.40
1996/01/31 18337.13 19236.55
1996/02/29 18195.59 19106.70
1996/03/31 17917.75 18862.52
1996/04/30 17859.12 18809.14
1996/05/31 17846.34 18801.61
1996/06/30 18082.54 19006.36
1996/07/31 18258.86 19179.32
1996/08/31 18291.76 19174.72
1996/09/30 18544.96 19443.16
1996/10/31 18787.03 19663.07
1996/11/30 19187.96 20022.90
1996/12/31 19092.87 19938.80
1997/01/31 19127.07 19976.49
1997/02/28 19315.72 20159.87
1997/03/31 19039.13 19891.14
1997/04/30 19202.49 20057.63
1997/05/31 19517.18 20359.30
1997/06/30 19730.77 20576.12
1997/07/31 20379.46 21146.08
1997/08/31 20129.28 20947.94
1997/09/30 20395.12 21196.59
1997/10/31 20496.14 21332.89
1997/11/30 20627.39 21458.33
1997/12/31 20965.45 21771.40
1998/01/31 21219.31 21996.08
1998/02/27 21226.85 22002.68
IMATRL PRASUN SHR__CHT 19980228 19980311 150817 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Spartan California Municipal Income Fund on February 29,
1988. As the chart shows, by February 28, 1998, the value of the
investment would have grown to $21,227 - a 112.27% 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 $22,003 - a 120.03% 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
YEARS ENDED YEAR ENDED YEARS ENDED
FEBRUARY 28, FEBRUARY 29, FEBRUARY 28,
1998 1997 1996 1995 1994
DIVIDEND RETURNS 5.23% 5.37% 5.86% 5.96% 5.82%
CAPITAL APPRECIATION 4.66% 0.79% 5.39% -6.87% -0.41%
RETURNS
TOTAL RETURNS 9.89% 6.16% 11.25% -0.91% 5.41%
TOTAL RETURN COMPONENTS include both dividend returns and capital
appreciation returns. A dividend return reflects the actual dividends
paid by the fund. A capital appreciation return reflects both the
amount paid by the fund to shareholders as capital gain distributions
and changes in the fund's share price. Both returns assume the
dividends or capital gains, if any, paid by the fund are reinvested.
DIVIDENDS AND YIELD
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED FEBRUARY 28, 1998 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR
DIVIDENDS PER SHARE 4.44(CENTS) 28.85(CENTS) 58.86(CENTS)
ANNUALIZED DIVIDEND RATE 4.67% 4.76% 4.90%
30-DAY ANNUALIZED YIELD 4.17% - -
30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 7.18% - -
</TABLE>
DIVIDENDS per share show the income paid by the fund for a set period.
If you annualize this number, based on an average share price of
$12.39 over the past one month, $12.21 over the past six months and
$12.02 over the past one year, you can compare the fund's income over
these three periods. Dividends per share show the income paid by the
fund for a set period and do not reflect any tax reclassifications.
The 30-day annualized YIELD is a standard formula for all funds based
on the yields of the bonds in the fund, averaged over the past 30
days. This figure shows you the yield characteristics of the fund's
investments at the end of the period. It also helps you compare funds
from different companies on an equal basis. The tax-equivalent yield
shows what you would have to earn on a taxable investment to equal the
fund's tax-free yield, if you're in the 41.95% combined effective 1998
federal and state tax bracket but does not reflect the payment of the
federal alternative minimum tax, if applicable. If Fidelity had not
reimbursed certain fund expenses, the yield and tax equivalent yield
would have been 4.14% and 7.13%, respectively.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
With investor sentiment, shifting
supply and demand, and Federal
Reserve Board policymaking
playing integral roles, municipal
bonds performed well during the 12
months that ended February 28,
1998. During this period, the
Lehman Brothers Municipal Bond
Index - a measure of the
municipal bond market - returned
9.14%. To compare, the Lehman
Brothers Aggregate Bond Index -
a measure of the U.S.
investment-grade taxable bond
market - returned 10.37%. In the
first half of 1997, low supply and
high demand helped boost muni
bond prices. One hiccup came in
March 1997, when the Fed raised a
key short-term interest rate to try to
stave off inflation. Although
investors anticipated this move, the
market reacted negatively. From
April through mid-September,
encouraging economic data -
coupled with the Fed's reluctance
to raise rates further - eased
concerns. The supply of muni
bonds increased in the second half
of 1997 while demand varied,
leading to mixed performance.
However, volatility in Asia toward
the end of 1997 helped prop up the
muni bond market. Investors felt
that currency devaluations in that
region would translate into cheaper
prices for Asian goods and help
control the inflation that can eat into
bonds' fixed payments. In January
and February 1998, muni bond
supply increased as many issuers
took advantage of lower interest
rates to refinance their debt at
lower rates. That, combined with
softening demand, dampened the
performance of muni bonds toward
the end of the period.
An interview with Jonathan Short, Portfolio Manager of Spartan
California Municipal Income Fund
Q. HOW DID THE FUND PERFORM, JON?
A. The fund did fairly well, outpacing both its competitors and its
benchmark during the past year. For the 12-month period that ended
February 28, 1998, the fund had a total return of 9.89%. To get a
sense of how the fund did relative to its competitors, the California
municipal debt funds average returned 9.37% for the same 12-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 9.72%
for the same one-year period.
Q. WHY DID THE FUND PERFORM BETTER THAN THE AVERAGE AND ITS BENCHMARK
INDEX?
A. One reason was the fund's rather large stake in non-callable bonds
- - which can't be redeemed by their issuers before maturity. These
bonds performed well throughout the entire year, coming on
particularly strong in the final six months of 1997. When rates fall -
as they did in the final half of the year - municipal bond issuers
often refinance their older, more expensive debt at lower interest
rates, much in the same way that homeowners do with their mortgages.
When a bond is called, or redeemed by its issuer, a bond holder often
is forced to reinvest the proceeds in bonds offering current lower
interest rates. Because interest rates were on the decline, investors
sought out non-callable bonds, creating increased demand for them and,
as a result, helping them outpace callable bonds. More recently, I've
sold some of the fund's non-callable positions in order to take
advantage of the strong prices that were being bid for them.
Q. WHAT OTHER HOLDINGS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. Bonds rated Baa - which made up 12.2% of the fund's investments at
the end of the period - performed extremely well in the second half of
the period. Faced with falling interest rates, yield-hungry investors
increasingly sought out these bonds because they offered a yield
advantage over higher-quality bonds. What's more, there was a very
small supply of these bonds during the period. Strong demand pushed up
against low supply and boosted the prices of most Baa-rated bonds.
Q. WHICH HOLDINGS DETRACTED FROM THE FUND'S PERFORMANCE?
A. Housing bonds lagged the overall municipal bond market as interest
rates fell in the second half of the period. When interest rates fall,
there's typically an increase in the number of mortgage borrowers who
refinance their debt in order to lower their interest costs. While
prepayment is good for the borrower, it can be bad for housing bond
holders. That's because prepayment of mortgages potentially forces
housing bond holders to reinvest at lower interest rates.
Q. WHAT WERE SOME OTHER KEY STRATEGIES DURING THE YEAR?
A. I continued to keep the fund's duration - which measures how
sensitive it is to changes in interest rates - in line with the
California municipal market as a whole, as reflected by the Lehman
Brothers California Municipal Bond Index. I generally don't lengthen
or shorten duration based on where I think interest rates will be at
some point in time because I believe it's extremely difficult to do so
with any accuracy over an extended period. I would rather spend my
time searching for opportunities to buy bonds that may have fallen out
of investors' favor as a function of their credit quality, maturity or
other factors and, as a result, offer relatively attractive values.
Q. WHAT'S YOUR OUTLOOK?
A. There are some factors related to municipal bond supply and demand
that I view as positives. Specifically, I expect the supply of
municipals to remain relatively the same as we saw in 1997, although
it may be somewhat larger due to issuers refinancing their older debt
at today's lower interest rates. The demand for municipal bonds has
been relatively stable and has easily digested the increase in supply
that is coming from refinancings. What will drive demand for
municipals in 1998 is how attractive they are relative to other
fixed-income choices and particularly to stocks. A meaningful decline
in stock prices could ignite increased demand for municipals.
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.
JONATHAN SHORT ON HIS
OUTLOOK FOR CALIFORNIA'S
ECONOMY AND FISCAL HEALTH:
"Over the past year, California's
economy has been incredibly
strong and helped to improve the
state's fiscal situation by providing
higher tax and other revenues.
While it shows no immediate signs
of slowing down, the state's economy
could be somewhat vulnerable to
prolonged economic weakness in
Asia. Trade-related commerce with
the Far East accounts for a
significant portion of California's
gross state product and prolonged
weakness in Asia could curtail the
state's economic growth rate.
However, I believe that if Asia's
problems get no worse, the effects
on California will be minimal.
Another challenge which bears
watching is El Nio. Depending on
the duration and severity of the
effects of that weather system, the
state could face substantial
clean-up bills. Whether or not
storm-related expenditures hurt the
state's fiscal condition will ultimately
depend on how much damage is done
and how much federal aid is provided
to help offset the costs."
(solid bullet) General obligation bonds (GOs)
made up the fund's largest sector
concentration at 25.1% 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 February 28, 1998,
more than $1.2 billion
MANAGER: Jonathan Short,
since 1995; manager, various
Fidelity and Spartan municipal
income funds; joined Fidelity
in 1990
(checkmark)
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF FEBRUARY 28, 1998
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE SECTORS
6 MONTHS AGO
GENERAL OBLIGATION 25.1 26.2
ELECTRIC REVENUE 11.3 13.5
SPECIAL TAX 10.3 10.8
WATER & SEWER 8.9 13.2
LEASE REVENUE 8.7 9.6
AVERAGE YEARS TO MATURITY AS OF FEBRUARY 28, 1998
6 MONTHS AGO
YEARS 14.9 14.2
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY
DOLLAR AMOUNT.
DURATION AS OF FEBRUARY 28, 1998
6 MONTHS AGO
YEARS 7.2 7.3
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF FEBRUARY 28, 1998 AS OF AUGUST 31, 1997
AAA 53.4%
AA, A 29.7%
BAA 12.2%
NON-RATED 0.3%
SHORT-TERM
INVESTMENTS 4.4%
AAA 51.2%
AA, A 33.0%
BAA 11.2%
NON-RATED 1.7%
SHORT-TERM
INVESTMENTS 2.9%
ROW: 1, COL: 1, VALUE: 53.4
ROW: 1, COL: 2, VALUE: 29.7
ROW: 1, COL: 3, VALUE: 11.2
ROW: 1, COL: 4, VALUE: 1.0
ROW: 1, COL: 5, VALUE: 4.4
ROW: 1, COL: 1, VALUE: 3.2
ROW: 1, COL: 2, VALUE: 2.0
ROW: 1, COL: 3, VALUE: 11.2
ROW: 1, COL: 4, VALUE: 33.0
ROW: 1, COL: 5, VALUE: 50.6
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 FEBRUARY 28, 1998
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES
MUNICIPAL BONDS - 95.6%
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - 95.2%
Alameda Hsg. Auth. Multi-Family Hsg. Rev.
(Independence Apts.) Series A, 7.50%
2/20/31 (GNMA Coll.) Aaa $ 4,340 $ 4,378
Buena Park Commty. Redev. Agcy. Tax Allocation
Rfdg. (Central Business Dist. Proj.)
Series A, 7.10% 9/1/14 BBB+ 3,500 3,792
Burbank Redev. Agcy. Tax Allocation Rfdg.:
(City Ctr. Redev. Proj.) Series A,
5% 12/1/15 (FSA Insured) Aaa 4,000 3,958
Series A, 5.75% 12/1/08 Baa1 4,655 4,898
Cabrillo Unified School Dist. (Cap. Appreciation)
Series A, 0% 8/1/10 (AMBAC Insured) Aaa 2,150 1,202
California Dept. of Veteran Affairs Home
Purchase Rev. Series A, 4.90%
12/1/18 (AMBAC Insured) (d)(e) Aaa 7,500 7,538
California Dept. Wtr. Resources:
(Central Valley Proj.):
Rfdg. Series T:
5.50% 12/1/08 (d) Aa2 2,635 2,887
5% 12/1/09 (d) Aa2 5,000 5,215
Series J-1, 7% 12/1/12 Aa2 1,000 1,240
Series J-2, 5.50% 12/1/01 Aa2 500 527
Series J-3, 5.90% 12/1/05 Aa2 1,005 1,115
Series 0, 5% 12/1/22 Aa2 1,900 1,847
California Edl. Facs. Auth. Rev.:
Rfdg.:
(Chapman Univ.) 5.375% 10/1/16
(Connie Lee Insured) Aaa 2,000 2,042
(Univ. of Southern California)
Series A:
5.65% 10/1/10 Aa3 2,740 2,985
5.70% 10/1/15 Aa3 4,500 4,752
Series C, 5.125% 10/1/28 Aa3 6,500 6,477
(Pooled Facs. Prog.) 7.625% 11/1/12
(MBIA Insured) Aaa 185 190
(Stanford Univ.) Series N, 5.20% 12/1/27 Aaa 25,750 25,779
California Edl. Facs. Auth. Student Loan Rev.
(California Loan Prog.) Series A, 6% 3/1/16
(MBIA Insured) (e) Aaa 4,900 5,164
California Franchise Tax Board Ctfs. of Partn.
Rfdg. 5.50% 10/1/06 A2 1,825 1,976
California Gen. Oblig.:
Rfdg. 5.50% 6/1/03 A1 8,000 8,521
6.10% 11/1/01 A1 1,250 1,341
6.10% 2/1/02 A1 1,000 1,073
6% 9/1/03 A1 10,000 10,924
7% 10/1/04 A1 1,000 1,159
6.40% 2/1/05 A1 3,375 3,814
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Gen. Oblig.: - continued
6.90% 4/1/05 A1 $ 2,350 $ 2,733
6.20% 9/1/05 A1 1,250 1,409
6.40% 2/1/06 A1 575 657
6.50% 2/1/07 A1 1,000 1,163
6.75% 4/1/07 A1 1,750 2,071
6% 10/1/08 A1 1,925 2,177
6% 10/1/09 A1 6,850 7,767
6.50% 9/1/10 A1 3,350 3,963
7% 10/1/10 A1 2,500 3,078
5.25% 10/1/13 A1 1,700 1,744
5.25% 10/1/14 A1 3,000 3,066
5.25% 10/1/17 A1 1,500 1,515
6.25% 10/1/19 A1 11,540 12,620
5.125% 10/1/27 A1 13,770 13,577
California Health Facs. Fing. Auth. Rev.:
Rfdg.:
(Alexian Brothers, San Jose):
7.05% 1/1/09 (MBIA Insured) Aaa 4,500 4,817
7.125% 1/1/16 (MBIA Insured) Aaa 2,510 2,674
(Children's Hosp.):
Series A, 6% 7/1/05 (MBIA Insured) Aaa 1,850 2,053
6% 7/1/03 (MBIA Insured) Aaa 1,200 1,308
6% 7/1/06 (MBIA Insured) Aaa 1,500 1,678
(Sutter Health Sys.):
Series C:
5% 8/15/03 (FSA Insured) Aaa 700 729
5.50% 8/15/07 (FSA Insured) Aaa 650 706
(Cap. Appreciation) (Kaiser Permanente Health
Sys.) Series A:
0% 10/1/09 A2 7,140 4,091
0% 10/1/10 A2 3,795 2,047
(Gould Med. Foundation) Series A, 7.30%
4/1/20 (Escrowed to Maturity) (c) A 4,500 4,871
(Sacramento Med. Foundation) Series F,
7.875% 6/1/18 A 1,000 1,029
(Summit Med. Ctr.) Series A,
5.50% 5/1/05 (FSA Insured) Aaa 2,400 2,577
California Hsg. Fin. Agcy. Rev.:
(Cap. Appreciation) (Home Mtg.):
Series A, 1983 0% 2/1/15 Aa2 8,187 1,660
Series A, 0% 8/1/23 (e) Aa2 3,650 521
Series B, 1983 0% 8/1/15 Aa2 170 29
Series C, 0% 8/1/21 (e) Aa2 5,200 877
(Home Mtg.):
Series A, 5% 8/1/03 (MBIA Insured) Aaa 1,930 2,009
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Hsg. Fin. Agcy. Rev.: - continued
(Home Mtg.):
Series C:
5.05% 2/1/17 (MBIA Insured) (d) Aaa $ 5,000 $ 5,057
8.30% 8/1/19 (e) Aa2 680 698
7.60% 8/1/30 (e) Aa2 5,085 5,392
Series F, 7.875% 8/1/19 Aa2 650 667
Series F-2, 7.25% 8/1/16 (e) Aa2 3,390 3,695
Series I, 4.95% 8/1/28 (MBIA Insured) (e) Aaa 3,345 3,401
Series L, 5.70% 8/1/25 (MBIA Insured) (e) Aaa 2,045 2,133
Series R, 5.25% 8/1/16 (MBIA Insured) (e) Aaa 3,915 4,024
California Poll. Cont. Fing. Auth. Poll. Cont. Rev.:
Rfdg. (San Diego Gas & Elec.) Series A,
5.90% 6/1/14 A2 3,900 4,323
(General Motors Corp.) 5.50% 4/1/08 A3 1,500 1,528
California Poll. Cont. Fing. Auth. Solid Waste
Disp. Rev. (Browning-Ferris Industries, Inc.)
Series A, 5.80% 12/1/16 (e) A3 3,400 3,553
California Pub. Cap. Impt. Fing. Auth. Rev.
(Pooled Proj.) Series B, 8.10%
3/1/18 (BIG Insured) Aaa 9,140 9,539
California Pub. Wks. Board Lease Rev.:
Rfdg.:
(California Commty. Colleges) Series D,
5.375% 3/1/12 A 1,500 1,557
(Dept. of Corrections, Monterey) Series D:
5.375% 11/1/11 A2 2,500 2,601
5.375% 11/1/12 A2 1,250 1,306
5.375% 11/1/13 A2 4,500 4,662
5.375% 11/1/14 A2 5,000 5,159
(Various California State Univ. Projs.)
Series A, 5.50% 6/1/14 Aa3 8,250 8,944
(California Science Ctr.) Series A:
4.60% 10/1/06 A2 1,060 1,080
4.80% 10/1/08 A2 1,275 1,314
5% 10/1/10 A2 1,300 1,319
(Commty. College Projs.) Series A,
5.875% 10/1/08 A 2,000 2,158
(Dept. of Corrections State Prison, Corcoran II)
Series A:
6% 1/1/05 (AMBAC Insured) Aaa 5,000 5,548
5.50% 1/1/14 (AMBAC Insured) Aaa 3,000 3,157
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Pub. Wks. Board Lease Rev.: - continued
(Dept. of Corrections, Madera):
Series A, 7% 9/1/00 A2 $ 1,000 $ 1,074
Series E:
6% 6/1/07 A2 2,090 2,344
5.50% 6/1/15 A2 6,750 7,241
5.50% 6/1/19 A2 3,000 3,060
(Dept. of Corrections State Prisons, Susanville)
Series D, 5.25% 6/1/15 (FSA Insured) Aaa 4,000 4,180
(Franchise Tax Board-PH II) Series A,
6.25% 9/1/11 A2 1,150 1,228
(Various California State Univ. Projs.):
Series A:
6.50% 9/1/03 A2 1,045 1,165
6.50% 9/1/04 A2 1,090 1,232
6% 3/1/05 (AMBAC Insured) Aaa 1,000 1,112
6.10% 10/1/06 A2 1,210 1,341
6.30% 10/1/10 A2 3,000 3,316
6.375% 10/1/19 A2 2,500 2,767
Series B:
5.25% 6/1/07 Aa3 2,965 3,172
6.40% 12/1/09 Aa3 3,700 4,316
5.55% 6/6/10 Aa3 3,195 3,488
5.50% 6/1/14 Aa3 2,750 2,844
5.50% 6/1/19 Aa3 2,000 2,048
California Statewide Commtys. Dev. Auth.
Lease Rev. (United Airlines) Series A,
5.70% 10/1/33 (e) Baa3 7,850 8,000
California Statewide Commtys. Dev. Auth. Rev.
Ctfs. of Prtn.:
Rfdg.:
(Children's Hosp.) 6% 6/1/13
(MBIA Insured) Aaa 2,470 2,785
(St. Joseph Health Sys.):
5.50% 7/1/07 Aa3 1,425 1,540
5.50% 7/1/14 Aa3 4,500 4,611
5.50% 7/1/23 Aa3 3,000 3,047
(Triad Healthcare):
5.90% 8/1/01 A+ 200 207
6.25% 8/1/06 A+ 5,000 5,418
0% 7/1/13 (MBIA Insured) INFL (f) Aaa 2,000 2,172
5.616% 7/1/13 (MBIA Insured) Aaa 6,000 6,285
5.375% 10/1/13 A+ 1,250 1,274
(Sisters of Charity Leavenworth) 5% 12/1/14 Aa3 1,315 1,299
(Villaview Commty. Hosp., Inc.) Series A,
7% 9/1/09 A+ 1,995 2,187
Campbell Ctfs. of Prtn. Rfdg. (Civic Ctr. Proj.)
6% 10/1/18 A2 4,965 5,155
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Carson Redev. Agcy. Rfdg.:
(Redev. Proj. Area #1 Tax Allocation):
6.375% 10/1/12 Baa1 $ 3,965 $ 4,255
6.375% 10/1/16 Baa1 2,000 2,138
(Redev. Proj. Area #2 Tax Allocation):
5.50% 10/1/02 Baa2 100 104
5.875% 10/1/09 Baa2 2,000 2,062
6% 10/1/13 Baa2 1,750 1,834
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. Rfdg.
(Wtr. Sys. Impt. Proj.) Series A:
7.25% 8/1/07 (MBIA Insured) Aaa 1,755 2,147
7% 8/1/11 (MBIA Insured) Aaa 1,500 1,852
7% 8/1/12 (MBIA Insured) Aaa 1,000 1,237
7% 8/1/13 (MBIA Insured) Aaa 4,740 5,890
Central Valley Fing. Auth. Cogeneration Proj.
Rev. (Carson Ice Gen. Proj.):
5.50% 7/1/01 BBB- 1,400 1,452
6% 7/1/09 BBB- 4,800 5,088
6.10% 7/1/13 BBB- 2,000 2,118
Chino Basin Reg'l. Fing. Auth. Rev. Rfdg.
(Muni. Wtr. Dist. Swr. Sys. Proj.):
7% 8/1/05 (AMBAC Insured) Aaa 1,185 1,395
7% 8/1/06 (AMBAC Insured) Aaa 1,145 1,367
7% 8/1/09 (AMBAC Insured) Aaa 350 430
Clovis Unified School Dist. (Cap. Appreciation)
Series B:
0% 8/1/02 (MBIA Insured) Aaa 300 250
0% 8/1/03 (MBIA Insured) Aaa 3,485 2,783
Coalinga Ctfs. of Prtn. 7% 4/1/10 BBB+ 1,655 1,732
Contra Costa Schools Fing. Auth. Rev.
(Vista Unified School Dist. School Sites)
(Cap. Appreciation) Series A, 0%
9/1/17 (FSA Insured)
(Pre-Refunded to 9/1/02 @ 36.34) (c) Aaa 3,420 1,033
Contra Costa County Ctfs. of Prtn. (Merrithew
Mem. Hosp.) (Cap. Appreciation):
0% 11/1/13 (Escrowed to Maturity) (c) Aaa 6,805 3,137
0% 11/1/14 (Escrowed to Maturity) (c) Aaa 3,000 1,305
Contra Costa Trans. Auth. Sales Tax Rev.
Series A:
6% 3/1/03 (FGIC Insured) Aaa 2,530 2,745
6% 3/1/08 (FGIC Insured) Aaa 1,000 1,134
Desert Hosp. Dist. Hosp. Rev. Ctfs. of Prtn.
(Kidder) 6.392% 7/28/20 (FSA Insured)
(Pre-Refunded to 7/1/02 @ 102) (c) Aaa 13,000 14,346
Duarte Ctfs. of Prtn. (City of Hope Med. Ctr.):
6% 4/1/08 Baa1 4,930 5,205
6.25% 4/1/23 Baa1 15,000 15,857
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
East Bay Muni. Util. Dist. Wtr. Sys. Rev. Rfdg.:
6% 6/1/02 (FGIC Insured) Aaa $ 2,000 $ 2,156
6% 6/1/03 (FGIC Insured) Aaa 4,450 4,857
5.75% 6/1/04 (MBIA Insured) Aaa 3,000 3,271
6% 6/1/05 (FGIC Insured) Aaa 1,550 1,724
6% 6/1/06 (FGIC Insured) Aaa 1,840 2,064
6.10% 6/1/07 A1 1,250 1,353
6% 6/1/09 (AMBAC Insured) Aaa 1,000 1,080
East Bay Regional Park Dist.:
Series B, 6.10% 9/1/06 Aa 1,300 1,379
Series C, 6.50% 9/1/03 (FGIC Insured) Aaa 1,285 1,443
Eastern Muni. Wtr. Dist. Wtr. & Swr. Rev. Ctfs.
of Prtn. 6.75% 7/1/12 (FGIC Insured) Aaa 3,600 4,337
Elk Grove Unified School Dist. Spl. Tax Rfdg.
(Commty. Facs. Dist. #1):
6.50% 12/1/07 (AMBAC Insured) Aaa 1,340 1,574
6.50% 12/1/24 (AMBAC Insured) Aaa 4,000 4,874
Encintas Unified School Dist. (Cap. Appreciation):
0% 8/1/03 (MBIA Insured) Aaa 1,750 1,398
0% 8/1/04 (MBIA Insured) Aaa 1,750 1,337
0% 8/1/10 (MBIA Insured) Aaa 1,000 559
Escondido Joint Pwrs. Fing. Auth. Lease Rev.
Rfdg. (California Ctr. for the Arts) (Cap.
Appreciation) 0% 9/1/04 (AMBAC Insured) Aaa 570 432
Eureka Unified School Dist. Ctfs. of Prtn.:
(Cap. Appreciation) Series B, 0% 9/1/27
(FSA Insured) (i) Aaa 1,555 1,622
Series A, 6.90% 9/1/27 (FSA Insured) (i) Aaa 660 723
Fairfield-Suisun Swr. Dist. Swr. Rev. Rfdg.
(Cap. Appreciation) Series A:
0% 5/1/07 (MBIA Insured) Aaa 1,635 1,088
0% 5/1/08 (MBIA Insured) Aaa 2,085 1,320
0% 5/1/09 (MBIA Insured) Aaa 2,080 1,246
Folsom Pub. Fing. Auth. Local Agcy. Rev.
Series A, 7.25% 10/1/10 BBB+ 1,285 1,359
Fontana Redev. Agcy. Tax Allocation Rfdg.
(Jurupa Hills Redev. Proj.) Series A:
7% 10/1/14 BBB+ 6,500 7,107
5.50% 10/1/27 BBB+ 3,500 3,498
Foothill/Eastern Trans. Corridor Agcy. Toll Road
Rev. (Cap. Appreciation) Series A:
0% 1/1/04 Baa 1,600 1,213
0% 1/1/05 Baa 1,000 718
0% 1/1/08 (i) Baa 2,000 1,483
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Foster City Pub. Fing. Auth. Rev. (Foster City
Commty. Dev. Proj. Loan) Series A:
6% 9/1/06 A- $ 1,355 $ 1,443
6% 9/1/07 A- 1,440 1,538
5.50% 9/1/09 A- 370 388
6% 9/1/13 A- 1,925 2,008
5.80% 9/1/16 A- 1,000 1,047
Fountain Valley Agcy. for Commty. Dev.
Tax Allocation (Ind. Area Redev. Proj.)
9.10% 1/1/15 BBB+ 1,745 1,773
Fremont Unified School Dist. Alameda County
(Cap. Appreciation) Series F:
0% 8/1/04 (MBIA Insured) Aaa 1,270 967
0% 8/1/05 (MBIA Insured) Aaa 1,395 1,015
0% 8/1/09 (MBIA Insured) Aaa 1,000 593
Inglewood Hosp. Rev. (Daniel Freeman Hosp.,
Inc.) 6.50% 5/1/01 (Escrowed to Maturity) (c) A+ 1,000 1,074
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 A2 1,500 1,574
Irvine Ranch Wtr. Dist. Joint Pwr. Agcy. Local
Pool Rev.:
Issue I, 7.875% 2/15/23
(Pre-Refunded to 3/19/98 @ 100) (c) A+ 6,740 6,752
Issue II, 8.25% 8/15/23 A+ 30,540 31,090
Kern High School Dist. 7% 8/1/09
(Escrowed to Maturity) (c) A1 1,090 1,318
King County Ctfs. of Prtn. 7.50% 7/1/04 (k) - 2,800 2,956
La Quinta Redev. Agcy. Tax Allocation Rfdg.
(Redev. Proj. Area #1):
7.30% 9/1/05 (MBIA Insured) Aaa 1,000 1,195
7.30% 9/1/06 (MBIA Insured) Aaa 620 752
7.30% 9/1/11 (MBIA Insured) Aaa 555 702
Livermore Redev. Agcy. Tax Allocation Rev.
(Livermore Redev. Proj.) Series A,
7.75% 8/1/09 - 945 960
Local Gov't. Fin. Auth. Rev. (Oakland Central
Dist.) (Cap. Appreciation):
0% 9/1/08 (MBIA Insured) Aaa 3,710 2,314
0% 9/1/09 (MBIA Insured) Aaa 3,565 2,102
Long Beach Hbr. Rev.:
Rfdg.:
Series A:
5.50% 5/15/08 (FGIC Insured) (e) Aaa 4,390 4,733
6% 5/15/09 (FGIC Insured) Aaa 3,000 3,369
6% 5/15/06 (MBIA Insured) (e) Aaa 3,000 3,341
5.75% 5/15/07 (MBIA Insured) (e) Aaa 3,845 4,208
5.50% 5/15/11 (MBIA Insured) (e) Aaa 700 737
5.50% 5/15/15 (MBIA Insured) (e) Aaa 3,710 3,838
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Los Angeles Ctfs. of Prtn. (California Health Facs.
Construction Loan Bay Harbor Hosp. Inc.)
7.30% 4/1/20 A $ 3,000 $ 3,210
Los Angeles County Ctfs. of Prtn. (Cap.
Appreciation) (Disney Parking Proj.):
0% 3/1/10 Baa1 2,000 1,083
0% 3/1/11 Baa1 1,950 997
0% 3/1/12 Baa1 2,180 1,052
0% 3/1/13 Baa1 5,585 2,539
0% 3/1/18 Baa1 3,000 1,008
0% 3/1/19 Baa1 3,175 1,013
0% 3/1/20 Baa1 1,000 303
Los Angeles County Ctfs. of Prtn. Correctional
Facs. (Cap. Appreciation):
0% 9/1/10 (MBIA Insured)
(Escrowed to Maturity) (c) Aaa 3,770 2,090
0% 9/1/11 (MBIA Insured)
(Escrowed to Maturity) (c) Aaa 6,400 3,340
Los Angeles County Metropolitan Trans. Auth.
Sales Tax Rev.:
(Proposition A) First Tier Sr. Series:
Rfdg. 5.25% 7/1/11 (MBIA Insured) Aaa 3,230 3,364
5.90% 7/1/14 (MBIA Insured) Aaa 1,585 1,717
(Proposition C) Second Series A:
5.90% 7/1/02 (AMBAC Insured) Aaa 1,200 1,293
5.90% 7/1/03 (AMBAC Insured) Aaa 1,655 1,801
5.90% 7/1/04 (AMBAC Insured) Aaa 1,005 1,105
5.90% 7/1/07 (AMBAC Insured) Aaa 1,730 1,943
5.90% 7/1/08 (AMBAC Insured) Aaa 500 565
Los Angeles Dept. of Arpts. Rev.
(Los Angeles Int'l. Arpt.) Series D,
5.625% 5/15/12 (FGIC Insured) (e) Aaa 1,000 1,053
Los Angeles Dept. of Wtr.& Pwr. Elec. Plant Rev.:
Rfdg.:
4.75% 8/15/12 (FGIC Insured) Aaa 6,035 5,910
4.75% 8/15/16 (FGIC Insured) Aaa 2,700 2,569
6.375% 2/1/20 Aa3 1,000 1,064
(Second Issue):
4.75% 11/15/19 (FGIC Insured) Aaa 5,900 5,549
4.75% 11/15/19 (MBIA Insured) Aaa 4,000 3,762
5.25% 11/15/26 (MBIA Insured) Aaa 17,760 17,803
5.40% 11/15/31 (MBIA Insured) Aaa 4,000 4,058
(Second Issue):
9% 10/15/01 Aa3 110 128
6.75% 10/15/04 (AMBAC Insured) Aaa 2,400 2,749
Los Angeles Hbr. Dept. Rev. 7.60% 10/1/18
(Escrowed to Maturity) (c) Aaa 14,810 19,082
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Los Angeles Unified School Dist. Series A:
6% 7/1/14 (FGIC Insured) Aaa $ 1,200 $ 1,363
6% 7/1/15 (FGIC Insured) Aaa 1,000 1,135
Los Angeles Wastewtr. Sys. Rev. Rfdg. Series A,
6% 2/1/04 (FGIC Insured) Aaa 3,000 3,289
M-S-R Pub. Pwr. Agcy. San Juan Proj. Rev. Rfdg.
6.75% 7/1/20 (MBIA Insured)
(Escrowed to Maturity) (c) Aaa 2,500 3,085
Madera County Ctfs. of Prtn. (Valley Children's
Hosp.) 6.25% 3/15/05 (MBIA Insured) Aaa 1,480 1,654
Manhattan Beach Unified School Dist.
(Cap. Appreciation) Series A, 0% 9/1/09
(FGIC Insured) Aaa 975 576
Metropolitan Wtr. Dist. Southern California
Wtrwks. Rev.:
Series A, 5% 7/1/26 Aa2 6,500 6,337
7.682% 8/5/22 INFL (f) Aa2 1,300 1,446
Modesto Ctfs. of Prtn.:
(Commty. Ctr. Refing. Proj.) Series A:
5.60% 11/1/14 (AMBAC Insured) Aaa 1,370 1,493
5% 11/1/23 (AMBAC Insured) Aaa 2,500 2,497
(Golf Course Refing. Proj.) Series B,
5% 11/1/23 (FGIC Insured) Aaa 1,585 1,583
Modesto Irrigation Dist. Ctfs. of Prtn.
(Geysers Geothermal Pwr. Proj.) Series
1986-A, 5% 10/1/17 A1 5,000 4,890
Modesto Irrigation Dist. Ctfs. of Prtn. Rfdg.
& Cap. Impt. (Cap. Appreciation) Series A:
0% 10/1/05 (MBIA Insured) Aaa 2,140 1,544
0% 10/1/08 (MBIA Insured) Aaa 2,270 1,411
0% 10/1/09 (MBIA Insured) Aaa 2,270 1,334
0% 10/1/10 (MBIA Insured) Aaa 2,270 1,258
Modesto Pub. Fing. Auth. Lease Rev.
(Cap. Impts. & Refing. Proj.) 5.125% 9/1/33
(AMBAC Insured) Aaa 9,000 8,794
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 @102) (c)(i) Aaa 2,350 2,546
Northern California Pwr. Agcy. Pub. Pwr. Rev.:
Rfdg. (Hydro-Elec. Proj. #1) Series A,
7.50% 7/1/23 (AMBAC Insured)
(Pre-Refunded to 7/1/21 @ 100) (c) Aaa 3,825 5,047
(Geothermal Proj. #3) Series A, 5.50%
7/1/05 (AMBAC Insured) (g) Aaa 2,250 2,427
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Northern California Transmission Rev.
(Ore Trans. Proj.) Series A, 7% 5/1/13
(MBIA Insured) Aaa $ 7,100 $ 8,750
Oakland Ctfs. of Prtn. Rfdg. (Oakland Museum)
(Cap. Appreciation) Series A, 0%, 4/1/07
(AMBAC Insured) Aaa 2,750 1,836
Oakland Redev. Agcy. Central Dist. Redev. (Sub.
Tax Allocation) 5% 9/1/21 (MBIA Insured) Aaa 1,000 999
Ontario Redev. Fing. Auth. Rev.:
Rfdg. (Ontario Redev. Proj. #1):
6.65% 8/1/07 (MBIA Insured) Aaa 1,000 1,182
6.75% 8/1/08 (MBIA Insured) Aaa 1,065 1,279
6.95% 8/1/11 (MBIA Insured) Aaa 1,000 1,235
(Ctr. City Cimarron Proj. #1) (Cap. Appreciation):
0% 8/1/08 (MBIA Insured) Aaa 3,255 2,038
0% 8/1/09 (MBIA Insured) Aaa 3,260 1,930
0% 8/1/10 (MBIA Insured) Aaa 3,255 1,818
Orange County Local Trans. Auth. Sales Tax Rev.
First Series:
6% 2/15/08 (AMBAC Insured) Aaa 2,500 2,834
6% 2/15/09 Aa3 2,000 2,247
Orange County Pub. Fing. Auth. Waste
Mgmt. Sys. Rev. Rfdg.:
5.75% 12/1/09 (AMBAC Insured) (e) Aaa 1,620 1,782
5.75% 12/1/11 (AMBAC Insured) (e) Aaa 2,000 2,204
5.25% 12/1/13 (AMBAC Insured) (e) Aaa 4,000 4,147
Orange County Wtr. Dist. Ctfs. of Prtn. Rfdg.
Series A, 5.50% 8/15/09 (AMBAC Insured) Aaa 1,000 1,060
Palomar Pomerado Health Sys. Rev. Rfdg.
(Cap. Appreciation) 0% 11/1/05
(MBIA Insured) Aaa 3,075 2,203
Placer County Wtr. Agcy. Middle Fork Proj. Rev.
Series A, 3.75% 7/1/12 A 8,830 7,813
Pleasanton Joint Pwrs. Fing. Auth. Rev.
Reassessment Series A:
5.70% 9/2/01 Baa3 1,200 1,253
5.80% 9/2/02 Baa3 5,195 5,486
6% 9/2/05 Baa3 2,430 2,631
6.15% 9/2/12 Baa3 12,980 13,936
Port Oakland Port Rev.:
Rfdg. (Cap. Appreciation) Series F:
0% 11/1/05 (MBIA Insured) Aaa 300 216
0% 11/1/06 (MBIA Insured) Aaa 2,890 1,982
0% 11/1/07 (MBIA Insured) Aaa 4,250 2,765
0% 11/1/08, (MBIA Insured) Aaa 5,270 3,263
Series G, 6% 11/1/07 (MBIA Insured) (e) Aaa 900 1,006
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Rancho Wtr. Dist. Fing. Auth. Rev. Rfdg.:
6.50% 11/1/03 (FGIC Insured) Aaa $ 1,300 $ 1,460
6.50% 11/1/04 (FGIC Insured) Aaa 1,985 2,261
6.50% 11/1/05 (FGIC Insured) Aaa 500 577
Redding Elec. Sys. Rev. Rfdg. Ctfs. of Prtn.
(Cap. Appreciation) Series A:
0% 6/1/06 (FGIC Insured) Aaa 1,730 1,208
0% 6/1/07 (FGIC Insured) Aaa 1,890 1,253
0% 6/1/08 (FGIC Insured) Aaa 1,300 820
Richmond Redev. Agcy. Tax Allocation Rfdg.
(Hbr. Redev. Proj.) 7% 7/1/09 (FSA Insured) Aaa 1,750 1,971
Riverside County Asset Leasing Corp. Leasehold
Rev. (Riverside County Hosp. Proj.):
Series A:
5.75% 6/1/01 (MBIA Insured) Aaa 1,250 1,320
6% 6/1/03 (MBIA Insured) Aaa 1,000 1,089
6.375% 6/1/09 (MBIA Insured) Aaa 5,000 5,526
6.50% 6/1/12 (MBIA Insured) Aaa 18,000 21,209
Series B, 5.70% 6/1/16 (MBIA Insured) Aaa 1,950 2,114
Riverside County Redev. Agcy. Tax Allocation
(Redev. Proj. #4) Series A:
7.50% 10/1/10
(Pre-Refunded to 10/1/01 @ 102) (c) BBB 1,000 1,132
7.50% 10/1/26
(Pre-Refunded to 10/1/01 @ 102) (c) BBB 2,500 2,829
Riverside County Trans. Commission Sales
Tax Rev. Rfdg. Series A:
5% 6/1/06 (AMBAC Insured) Aaa 2,100 2,210
5.25% 6/1/07 (AMBAC Insured) Aaa 790 844
Riverside County Pub. Fing. Auth. Tax Allocation
Rev. (Redev. Projs.) Series A:
4.80% 10/1/07 Baa2 1,080 1,086
5% 10/1/08 Baa2 1,135 1,150
5% 10/1/09 Baa2 1,140 1,146
5.10% 10/1/10 Baa2 1,245 1,251
5.25%10/1/12 Baa2 1,275 1,288
5.50%10/1/22 Baa2 4,500 4,548
Riverside Unified School Dist. Ctfs. of Prtn. (Land
Acquisition Proj.) (Cap. Appreciation) Series B,
0% 9/1/26 (FSA Insured) (i) Aaa 5,485 5,627
Rosemead Redev. Agcy. Tax Allocation
Proj. Area 1 (Cap. Appreciation) 0% 10/1/98
(Escrowed to Maturity) (c) A- 1,120 1,097
Roseville Joint Unified High School Dist.
(Cap. Appreciation) Series B, 0% 8/1/00
(FGIC Insured) Aaa 1,060 965
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Sacramento Cogeneration Auth. Cogeneration
Proj. Rev. (Proctor & Gamble Proj.):
5.40% 7/1/98 BBB- $ 2,000 $ 2,010
5.70% 7/1/00 BBB- 1,200 1,240
5.90% 7/1/02 BBB- 1,000 1,060
6% 7/1/03 BBB- 700 750
7% 7/1/05 BBB- 1,500 1,716
6.375% 7/1/10 BBB- 1,500 1,642
6.50% 7/1/14 BBB- 1,000 1,097
Sacramento County Ctfs. of Prtn. Rfdg. (Pub.
Facs. Proj.):
4.80% 10/1/10 (AMBAC Insured) Aaa 1,000 1,019
5% 10/1/11 (AMBAC Insured) Aaa 1,625 1,670
Sacramento Fing. Auth. Lease Rev. Rfdg.
Series A:
5.375% 11/1/14 (AMBAC Insured) Aaa 8,725 9,284
5.40% 11/1/20 (AMBAC Insured) Aaa 1,925 2,040
Sacramento Muni. Util. Dist. Elec. Rev.:
Rfdg. Series L, 5.125% 7/1/22
(MBIA Insured) Aaa 4,000 3,964
1.76% 11/15/08 (FGIC Insured) (h) Aaa 17,700 18,269
Sacramento Pwr. Auth. Cogeneration Proj. Rev.:
6.50% 7/1/06 BBB- 4,500 5,034
6.50% 7/1/07 BBB- 2,000 2,235
6.50% 7/1/08 BBB- 1,000 1,109
San Bernardino County Ctfs. of Prtn.:
(Cap. Facs. Proj.) Series B, 6.875% 8/1/24
(Escrowed to Maturity) (c) Aaa 5,000 6,342
(Med. Ctr. Fing. Proj.):
Rfdg.:
5.25% 8/1/04 Baa1 915 946
5.50% 8/1/22 Baa1 10,000 10,357
5.50% 8/1/05 (MBIA Insured) Aaa 2,700 2,906
5.50% 8/1/06 (MBIA Insured) Aaa 2,500 2,703
5.50% 8/1/07 (MBIA Insured) Aaa 6,000 6,511
San Bernardino County Trans. Auth. Sales Tax
Rev. Series A, 5.25% 3/1/08 (FSA Insured) Aaa 7,760 8,298
San Diego County Regional Trans. Commission
Sales Tax Rev. Second Series A:
6.25% 4/1/03 (FGIC Insured) Aaa 8,000 8,782
6% 4/1/04 (FGIC Insured) Aaa 5,900 6,486
6% 4/1/05 (AMBAC Insured) Aaa 1,500 1,670
San Diego County Wtr. Auth. Wtr. Rev. Ctfs. of
Prtn. 5.632% 4/25/07 (FGIC Insured) Aaa 5,000 5,447
San Diego Multi-Family Hsg. Rev. (Island Gardens
Apts. Proj.) Series B, 9.50% 10/20/20 Aaa 1,585 1,589
San Diego Pub. Facs. Fing. Auth. Swr. Rev.:
Series B, 5.375% 5/15/15 (FGIC Insured) Aaa 1,000 1,035
5% 5/15/20 (FGIC Insured) Aaa 6,500 6,355
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
San Francisco Bay Area Rapid Trans. Dist.
Sales Tax Rev.:
Rfdg. 6.75% 7/1/10 (AMBAC Insured) Aaa $ 1,500 $ 1,819
5.25% 7/1/12 Aa3 8,920 9,278
5.25% 7/1/18 Aa3 4,500 4,555
5% 7/1/28 (AMBAC Insured) Aaa 18,650 18,142
San Francisco Bldg. Auth. Lease Rev. (Dept. Gen.
Svcs. Lease) Series A:
5% 10/1/05 A 400 416
5% 10/1/08 A 2,640 2,718
San Francisco City & County Gen. Oblig.:
Rfdg. Series 1, 5.50% 6/15/09
(FGIC Insured) Aaa 10,000 10,943
Series 95 A & B, 6.50% 6/15/03
(FGIC Insured) Aaa 2,180 2,433
San Francisco City & County Int'l. Arpt. Commission
Rev.:
Rfdg. Second Series Issue 1,
6.20% 5/1/05 (AMBAC Insured) Aaa 2,300 2,517
Second Series Issue 9-A,
5.125% 5/1/07 (FGIC Insured) Aaa 2,000 2,086
San Francisco City & County Int'l. Arpt.
Commission Spl. Facs. Lease Rev.
(SFO Fuel Co. LLC) Series A:
5.125% 1/1/17 (AMBAC Insured) (e) Aaa 6,000 5,924
5.25% 1/1/18 (AMBAC Insured) (e) Aaa 4,515 4,521
5.25% 1/1/19 (AMBAC Insured) (e) Aaa 4,750 4,744
San Francisco City & County Pub. Utils.
Commission Wtr. Rev. Rfdg.
Series A, 6.50% 11/1/09 Aa 1,000 1,109
San Francisco City & County Redev Fing. Auth.
Tax Allocation Rev. (Cap. Appreciation):
Rfdg.(San Francisco Redev. Proj.) Series B,
0% 8/1/10 (MBIA Insured) Aaa 1,475 824
Series A:
0% 8/1/07 (FGIC Insured) Aaa 1,085 714
0% 8/1/08 (FGIC Insured) Aaa 1,085 679
0% 8/1/09 (FGIC Insured) Aaa 1,085 642
0% 8/1/10 (FGIC Insured) Aaa 1,085 606
San Francisco City & County Swr. Rev.:
Rfdg. 5.90% 10/1/08 (AMBAC Insured) Aaa 5,000 5,411
(Cap. Appreciation) Series B:
0% 10/1/06 (FGIC Insured) Aaa 3,690 2,540
0% 10/1/07 (FGIC Insured) Aaa 4,770 3,115
0% 10/1/08 (FGIC Insured) Aaa 1,600 994
San Francisco Port Commission Rev. Rfdg.
5.50% 7/1/04 A 1,000 1,050
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
San Joaquin County Ctfs. of Prtn.
(Gen. Hosp. Proj.):
5.70% 9/1/01 A3 $ 2,250 $ 2,336
5.80% 9/1/02 A3 350 367
6.25% 9/1/13 A3 2,500 2,686
6.625% 9/1/20 A3 2,500 2,731
San Joaquin Hills Trans. Corridor Agcy. Toll Road
Rev. Rfdg. (Cap Appreciation) Series A:
0% 1/15/07 (MBIA Insured) Aaa 3,500 2,359
0% 1/15/08 (MBIA Insured) Aaa 1,525 978
0% 1/15/09 (MBIA Insured) Aaa 4,090 2,482
0% 1/15/10 (MBIA Insured) Aaa 2,000 1,146
0% 1/15/11 (MBIA Insured) Aaa 5,365 2,897
San Jose Arpt. Rev. Rfdg. 5.875% 3/1/07
(FGIC Insured) Aaa 1,905 2,129
San Jose Redev. Agcy. Tax Allocation Rfdg.
(Merged Area Redev. Proj.) 6% 8/1/15
(MBIA Insured) Aaa 3,000 3,399
Santa Barbara Ctfs. of Prtn. Rfdg.:
(American Baptist Homes) 7.40% 5/15/15
(Pre-Refunded to 5/15/00 @ 102) (c) A+ 2,000 2,186
5.10% 3/1/03 A1 1,000 1,032
Santa Barbara Redev. Agcy. Tax Allocation Rfdg.
(Central City Redev. Proj.) Series A,
6% 3/1/05 (AMBAC Insured) Aaa 500 554
Santa Clara County Fing. Auth. Lease Rev.
(VMC Facs. Replacement Proj.) Series A:
7.75% 11/15/08 (AMBAC Insured) Aaa 1,175 1,510
7.75% 11/15/09 (AMBAC Insured) Aaa 3,725 4,824
Santa Margarita/Dana Point Auth. Rev. Rfdg.
(Impt. Dists. 1&2, 2A&8) Series A:
7.25% 8/1/06 (MBIA Insured) Aaa 1,500 1,817
7.25% 8/1/07 (MBIA Insured) Aaa 2,200 2,691
7.25% 8/1/08 (MBIA Insured) Aaa 1,780 2,203
7.25% 8/1/12 (MBIA Insured) Aaa 1,865 2,356
Santa Rosa Wastewtr. Rev. Rfdg. & Sub-Reg'l.
(Wastewtr. Proj.) Series A, 4.75% 9/1/16
(FGIC Insured) Aaa 900 864
Sequoia Hosp. Dist. Rev. Rfdg. 5% 8/15/03
(Escrowed to Maturity) (c) Baa 1,285 1,341
South Orange County Pub. Fing. Auth. Spl. Tax
Rev.:
Rfdg. (Sr. Lien) Series A, 7% 9/1/10
(MBIA Insured) Aaa 3,300 4,070
(Foothill Area) Series C:
7.50% 8/15/06 (FGIC Insured) Aaa 2,000 2,452
7.50% 8/15/07 (FGIC Insured) Aaa 2,290 2,837
8% 8/15/09 (FGIC Insured) Aaa 3,650 4,790
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Southern California Pub. Pwr. Auth. Pwr. Proj. Rev.:
Rfdg. Series A:
(Mead Adelanto Proj.):
4.75% 7/1/16 (AMBAC Insured) Aaa $ 2,000 $ 1,915
4.875% 7/1/20 (AMBAC Insured) Aaa 1,000 962
(Mead Phoenix Proj.) 4.875%
7/1/20 (AMBAC Insured) Aaa 1,300 1,251
(Palo Verde Proj.):
5% 7/1/04 (FSA Insured) Aaa 1,085 1,133
5.50% 7/1/05 (AMBAC Insured)
(Escrowed to Maturity) (c) Aaa 5,000 5,422
6% 7/1/07 (AMBAC Insured)
(Escrowed to Maturity) (c) Aaa 1,100 1,247
5% 7/1/15 (AMBAC Insured)
(Escrowed to Maturity) (c) Aaa 5,500 5,456
Series 11, 0% 7/1/15
(Escrowed to Maturity) (c) Aaa 300 276
(Multiple Projs.):
6.75% 7/1/10 A 1,400 1,648
6.75% 7/1/11 A 6,500 7,693
Southern California Pub. Pwr. Auth. Transmission
Rev. Rfdg. (Southern Transmission Proj.):
Series A, 6% 7/1/06 (MBIA Insured) Aaa 2,000 2,245
5.50% 7/1/20 Aa3 1,000 1,006
Stanislaus County Ctfs. of Prtn. Rfdg.
(Cap. Impt. Prog.) Series A, 5.25% 5/1/14
(MBIA Insured) Aaa 1,500 1,537
Sulphur Springs Unified School Dist. Series A:
0% 9/1/07 (MBIA Insured) Aaa 4,445 2,903
0% 9/1/08 (MBIA Insured) Aaa 4,745 2,948
0% 9/1/09 (MBIA Insured) Aaa 2,485 1,467
0% 9/1/12 (MBIA Insured) Aaa 2,750 1,356
Tahoe-Truckee Joint Unified School Dist.
(Cap. Appreciation) Series A, 0% 9/1/10
(FGIC Insured) Aaa 6,625 3,691
Univ. of California Rev. (Multiple Purp. Projs.):
Rfdg. Series C:
9% 9/1/02 (AMBAC Insured) Aaa 100 120
4.75% 9/1/16 (AMBAC Insured) Aaa 5,000 4,786
Series D, 6.10% 9/1/10 (MBIA Insured)
(Pre-Refunded to 9/1/02 @ 102) (c) Aaa 2,000 2,205
Upland Ctfs. of Prtn. Rfdg. (San Antonio
Commty. Hosp.):
5.25% 1/1/08 A 3,700 3,793
5.25% 1/1/13 A 8,500 8,532
5% 1/1/18 A 2,500 2,399
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
West Covina Ctfs. of Prtn. (Queen of
the Valley Hosp.):
5.90% 8/15/02 A2 $ 875 $ 928
6% 8/15/03 A2 925 992
6.125% 8/15/04 A2 980 1,064
6.50% 8/15/24 A2 3,200 3,476
1,233,200
PUERTO RICO - 0.4%
Puerto Rico Pub. Impt. Rfdg.
5.50% 7/1/11 Baa1 5,000 5,371
TOTAL MUNICIPAL BONDS
(Cost $1,155,105) 1,238,571
MUNICIPAL NOTES (A) - 4.4.%
CALIFORNIA - 4.4%
California Gen. Oblig. Participating VRDN:
Series FR-23, 3.90% (Liquidity Facility
Bank of New York) (j) MIG 1 16,725 16,725
Series SGB-15, 3.40% (Liquidity Facility
Societe Generale, France) (j) Aaa 2,000 2,000
California Poll. Cont. Fin. Auth. Poll. Cont. Rev.:
Rfdg. (Pacific Gas & Electric Co. Proj.):
Series B, 3.10% LOC Rabobank
Nederland (e) A+ 2,000 2,000
Series B, 1997, 3.60%
LOC Deutsche Bank, AG (e) P-1 8,200 8,200
Series C, 3.55% LOC Bank of America
Nat'l Trust & Savings, SF A-1+ 200 200
Series C, 3.65% LOC Kredietbank, NV (e) A+ 1,100 1,100
Series G, 3.65% (e) VMIG 1 1,400 1,400
(Southern California Edison Co.):
Series A, 3.90% VMIG 1 900 900
Series B, 3.90% VMIG 1 2,500 2,500
Series C, 3.90% VMIG 1 2,000 2,000
California Poll. Cont. Fin. Auth. Solid Waste
Disp. Rev.:
Rfdg. (Gilton Solid Waste Mgmt.)
Series 1995A, 3.20% LOC Bank of
America Nat'l. Trust & Savings, SF VMIG 1 900 900
(Shell Oil Co. Martinez Proj.):
Series 1994-A, 3.60% (e) VMIG 1 3,600 3,600
Series 1994-B, 3.60% (e) VMIG 1 500 500
MUNICIPAL NOTES (A) - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Statewide Commty. Dev. Auth. Ctfs. of
Prtn. (Northern California Retired Officers)
3.60% LOC Dresdner Bank, AG VMIG 1 $ 600 $ 600
Fremont Ctfs. of Prtn. (Bldg. & Equip. Fing.
Proj.) 3.80% LOC Sumitomo Bank Ltd., Japan A-2 2,000 2,000
Los Angeles Commty. Redev. Agcy. Ctfs. of Prtn.
(CMC Med. Plaza) 3.10%, LOC Bank of
America Nat'l. Trust & Savings, SF VMIG 1 500 500
Los Angeles County Metropolitan Trans. Auth.
Rev. Participating VRDN, Series SGB-1,
3.40% (FSA Insured) (j) Aaa 1,975 1,975
Los Angeles Multi-Family Hsg. Rev. (Casden Proj.)
Series K, 3.15% LOC Coast Federal Bank A+ 8,700 8,700
San Bernardino County Multi-Family Hsg. Rev.
Rfdg. (Pepperwood Apt.) Series 1993 A,
3.10% LOC Redlands Federal Bank A+ 1,100 1,100
Simi Valley Multi-Family Hsg. Rev. Rfdg.
(Creekside Village Proj.) Series 1993A,
3.10% LOC Bank of America
Nat'l. Trust & Savings, SF VMIG 1 450 450
TOTAL MUNICIPAL NOTES
(Cost $57,350) 57,350
TOTAL INVESTMENTS - 100%
(Cost $1,212,455) $ 1,295,921
FUTURES CONTRACTS
AMOUNTS IN THOUSANDS EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SOLD
50 Municipal Bond Contracts March 98 $ 6,159 $ 9
75 Municipal Bond Contracts June 98 9,143 28
282 Treasury Bond Contracts March 98 34,060 (24)
$ 13
THE FACE VALUE OF FUTURES SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 3.8%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
3. Security collateralized by an amount sufficient to pay interest and
principal.
4. Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
5. Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
6. Coupon is inversely indexed to a floating interest rate. The price
will be more volatile than the price of a comparable fixed rate
security. The rate shown is the rate at period end.
7. Security or a portion of the security was pledged to cover margin
requirements for futures contracts. At the period end, the value of
securities pledged amounted to $1,138,000.
8. 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.
9. 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.
10. Provides evidence of ownership in one or more underlying municipal
bonds.
11. Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST (000S)
King County Ctfs. of Prtn.
7.50% 7/1/04 12/15/89 $ 2,740
OTHER INFORMATION
The fund invested in securities that are not registered under the
Securities Act of 1933. These securities are subject to legal or
contractual restrictions on resale. At the end of the period,
restricted securities (excluding 144A issues) amounted to $2,956,000
or 0.24% of net assets (see Note 2 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 (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 73.7% AAA, AA, A 84.0%
Baa 8.3% BBB 6.5%
Ba 0.0% BB 0.6%
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%. FMR has
determined that unrated debt securities that are lower quality account
for 0.0% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a
percentage of total value of investment in securities, is as follows:
General Obligation 25.1%
Electric Revenue 11.3
Special Tax 10.3
Water and Sewer 8.9
Lease Revenue 8.7
Transportation 7.7
Escrowed/Pre-Refunded 6.9
Health Care 6.4
Others (individually less than 5%) 14.7
TOTAL 100.0%
INCOME TAX INFORMATION
At February 28, 1998, the aggregate cost of investment securities for
income tax purposes was $1,212,457,000. Net unrealized appreciation
aggregated $83,464,000, of which $84,052,000 related to appreciated
investment securities and $588,000 related to depreciated investment
securities.
The fund hereby designates approximately $427,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
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 available to offset
future capital gains of the fund to the extent provided by regulations
(see Note 7 of Notes to Financial Statements).
At February 28, the fund was required to defer for federal income tax
purposes approximately $4,409,000 of losses on futures contracts.
(unaudited) During fiscal year ended 1998, 100% of the fund's income
dividends was free from federal income tax, and 4.88% of the fund's
income dividends was subject to the federal alternative minimum tax.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) FEBRUARY 28, 1998
ASSETS
INVESTMENT IN SECURITIES, AT VALUE (COST $1,212,455) - $ 1,295,921
SEE ACCOMPANYING SCHEDULE
RECEIVABLE FOR INVESTMENTS SOLD 17,058
INTEREST RECEIVABLE 16,021
OTHER RECEIVABLES 31
TOTAL ASSETS 1,329,031
LIABILITIES
PAYABLE TO CUSTODIAN BANK $ 380
PAYABLE FOR INVESTMENTS PURCHASED 67,292
REGULAR DELIVERY
DELAYED DELIVERY 20,340
PAYABLE FOR FUND SHARES REDEEMED 818
DISTRIBUTIONS PAYABLE 1,152
ACCRUED MANAGEMENT FEE 362
PAYABLE FOR DAILY VARIATION ON FUTURES CONTRACTS 70
OTHER PAYABLES AND ACCRUED EXPENSES 216
TOTAL LIABILITIES 90,630
NET ASSETS $ 1,238,401
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 1,156,217
ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON (1,295)
INVESTMENTS
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 83,479
NET ASSETS, FOR 100,230 SHARES OUTSTANDING $ 1,238,401
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $12.36
SHARE ($1,238,401 (DIVIDED BY) 100,230 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED FEBRUARY 28, 1998
INTEREST INCOME $ 46,726
EXPENSES
MANAGEMENT FEE $ 3,377
TRANSFER AGENT FEES 911
ACCOUNTING FEES AND EXPENSES 302
NON-INTERESTED TRUSTEES' COMPENSATION 3
CUSTODIAN FEES AND EXPENSES 46
REGISTRATION FEES 33
AUDIT 51
LEGAL 14
TOTAL EXPENSES BEFORE REDUCTIONS 4,737
EXPENSE REDUCTIONS (109) 4,628
NET INTEREST INCOME 42,098
REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:
INVESTMENT SECURITIES 17,882
FUTURES CONTRACTS (700) 17,182
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:
INVESTMENT SECURITIES 23,672
FUTURES CONTRACTS 31 23,703
NET GAIN (LOSS) 40,885
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 82,983
OPERATIONS
OTHER INFORMATION $ 16
EXPENSE REDUCTIONS
CUSTODIAN CREDITS
TRANSFER AGENT CREDITS 9
FMR REIMBURSEMENT 84
$ 109
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
FEBRUARY 28, FEBRUARY 28,
1998 1997
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 42,098 $ 24,983
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) 17,182 2,416
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 23,703 1,035
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 82,983 28,434
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS (42,098) (25,084)
FROM NET INTEREST INCOME
FROM NET REALIZED GAIN - (127)
TOTAL DISTRIBUTIONS (42,098) (25,211)
SHARE TRANSACTIONS 711,618 (15,304)
NET INCREASE (DECREASE) (NOTE 6)
TOTAL INCREASE (DECREASE) IN NET ASSETS 752,503 (12,081)
NET ASSETS
BEGINNING OF PERIOD 485,898 497,979
END OF PERIOD $ 1,238,401 $ 485,898
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED YEAR ENDED YEARS ENDED
FEBRUARY 28, FEBRUARY 29, FEBRUARY 28,
1998 1997 1996 1995 1994
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
NET ASSET VALUE, BEGINNING $ 11.810 $ 11.720 $ 11.120 $ 12.100 $ 12.430
OF PERIOD
INCOME FROM INVESTMENT .589 .599 .625 .685 .719
OPERATIONS
NET INTEREST INCOME
NET REALIZED AND UNREALIZED .550 .096 .597 (.830) (.060)
GAIN (LOSS)
TOTAL FROM INVESTMENT 1.139 .695 1.222 (.145) .659
OPERATIONS
LESS DISTRIBUTIONS
FROM NET INTEREST INCOME (.589) (.602) (.622) (.685) (.719)
FROM NET REALIZED GAIN - (.003) - (.150) (.270)
TOTAL DISTRIBUTIONS (.589) (.605) (.622) (.835) (.989)
NET ASSET VALUE, END OF PERIOD $ 12.360 $ 11.810 $ 11.720 $ 11.120 $ 12.100
TOTAL RETURN A 9.89% 6.16% 11.25% (.91)% 5.41%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD $ 1,238 $ 486 $ 498 $ 477 $ 575
(IN MILLIONS)
RATIO OF EXPENSES TO AVERAGE .54% B .57% .58% .56% .57%
NET ASSETS
RATIO OF EXPENSES TO AVERAGE .53% C .57% .58% .56% .57%
NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET INTEREST INCOME TO 4.85% 5.19% 5.44% 6.16% 5.78%
AVERAGE NET ASSETS
PORTFOLIO TURNOVER RATE 37% D 17% 37% 29% 44%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
B FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
C 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 5 OF NOTES TO FINANCIAL STATEMENTS).
D THE PORTFOLIO TURNOVER RATE DOES NOT INCLUDE THE ASSETS ACQUIRED IN
THE MERGER (SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS).
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 total returns and dividends would have been
lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
SPARTAN CA MUNI MONEY MARKET 3.25% 16.48% 34.21%
CALIFORNIA TAX-FREE 3.01% 14.59% 29.78%
MONEY MARKET FUNDS AVERAGE
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, 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 one year
average represents a peer group of 55 money market funds. (The periods
covered by the IBC Financial Data, Inc. numbers are the closest match
to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
SPARTAN CA MUNI MONEY MARKET 3.25% 3.10% 3.63%
CALIFORNIA TAX-FREE 3.01% 2.76% 3.21%
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
3/2/98 12/1/97 9/1/97 6/2/97 3/3/97
SPARTAN CALIFORNIA 2.95% 3.36% 2.93% 3.49% 3.08%
MUNICIPAL MONEY MARKET
IF FIDELITY HAD NOT REIMBURSED 2.95% 3.36% 2.83% 3.39% 2.93%
CERTAIN FUND EXPENSES
CALIFORNIA TAX-FREE MONEY 2.73% 3.11% 2.81% 3.14% 2.74%
MARKET FUNDS AVERAGE
SPARTAN CALIFORNIA 5.08% 5.79% 5.05% 6.01% 5.31%
MUNICIPAL MONEY MARKET -
TAX-EQUIVALENT
IF FIDELITY HAD NOT REIMBURSED 5.08% 5.79% 4.88% 5.84% 5.05%
CERTAIN FUND EXPENSES
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. If the advisor had not reimbursed
certain fund expenses during the periods shown, the yields would have
been lower. You can compare these yields to the 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
NOTE TO SHAREHOLDERS: Diane McLaughlin became Portfolio Manager of
Spartan California Municipal Money Market Fund on November 1, 1997.
Q. WHAT WAS THE MARKET ENVIRONMENT LIKE DURING THE PAST 12 MONTHS?
A. Real gross domestic product - GDP adjusted for inflation - averaged
3.8% in 1997, signaling strong economic growth throughout the year. In
addition, unemployment averaged 4.9% in 1997 - a rate that
historically would have meant higher inflation due to wage pressures.
However, 1997 was different. The 1997 producer price index (PPI) - a
measure of wholesale prices - dropped 1.2%, representing the biggest
one-year drop since 1986. Similarly, the consumer price index (CPI)
finished the year up 1.7%, the slowest gain in that same 11-year time
period. Several reasons are cited for this lack of inflation. Most
notably, productivity improvements over the past few years have
reduced the risk of inflationary pressures that had previously
accompanied similar periods of low unemployment. Nevertheless, the
Federal Reserve Board did raise the rate banks charge each other for
overnight loans - known as the fed funds target rate - from 5.25% to
5.50% in March 1997. This move was seen as a preemptive strike against
future inflation that was expected to emerge along with robust
economic growth. Although economic strength persisted and the market
expected another interest-rate hike, no signs of inflation arose -
causing the Fed to hold off on raising rates further.
Q. WHAT HAPPENED AT THE END OF
THE PERIOD?
A. In October, the financial crisis in Southeast Asia took center
stage. This unusual turn of events shifted focus from growth in the
domestic economy to the possible impact the Asian crisis might have on
the economy in the U.S. and other parts of the world. The dollar
appreciated markedly against many Asian currencies, making Asian
imports to the U.S. less expensive and, consequently, suppressing
inflation. Many market observers became concerned that the U.S.
economy would slow significantly as exports to Asian countries
declined. At the end of the period, the Fed shifted to a more neutral
stance, giving itself flexibility to raise interest rates if inflation
started to surface or lower rates if the spillover from the crisis in
Asia significantly hurt the U.S. economy.
Q. WHAT WAS YOUR STRATEGY AS
THIS UNFOLDED?
A. The fund's average maturity at the beginning of the period was 40
days. During the first half of the period, the fund's investment focus
was on the short end of the money market yield curve, as increased
supply of these shorter-term securities made that part of the market
attractive. However, the fund did participate in the one-year market
during the summer when supply became more plentiful and yields
factored in future interest-rate increases. Despite purchases of these
securities, though, the fund's average maturity lengthened only
slightly to 44 days at the end of the period.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on February 28, 1998, was 2.91%,
compared to 3.09% 12 months ago. The latest yield was the equivalent
of a 5.01% taxable yield for California investors in the 41.95%
combined federal and state tax bracket. Through February 28, 1998, the
fund's 12-month total return was 3.25%, compared to 3.01% for the
California tax-free money market funds average, according to IBC
Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. Domestic growth might continue at the pace set in 1997, leading to
an even tighter labor market. In this case, I think eventual wage
increases would be passed on to the consumer - meaning inflation. The
spillover from the Asian turmoil may, however, significantly dampen
growth in the U.S. and suppress inflation. I believe the Fed is
waiting for more evidence to evaluate the extent of the Asian
situation, so I expect steady policy in the near term. The market,
however, has priced in an easing - or lowering - of rates. I expect to
keep the fund's average maturity neutral with that of its peers,
giving me the flexibility to extend the fund's maturity if this easing
outlook shifts and rates get more attractive.
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.
JONATHAN SHORT ON HIS
OUTLOOK FOR CALIFORNIA'S
ECONOMY AND FISCAL HEALTH:
"Over the past year, California's
economy has been incredibly
strong and helped to improve the
state's fiscal situation by providing
higher tax and other revenues.
While it shows no immediate signs
of slowing down, the state's economy
could be somewhat vulnerable to
prolonged economic weakness in
Asia. Trade-related commerce with
the Far East accounts for a
significant portion of California's
gross state product and prolonged
weakness in Asia could curtail the
state's economic growth rate.
However, I believe that if Asia's
problems get no worse, the effects
on California will be minimal.
Another challenge which bears
watching is El Nio. Depending on
the duration and severity of the
effects of that weather system, the
state could face substantial
clean-up bills. Whether or not
storm-related expenditures hurt the
state's fiscal condition will ultimately
depend on how much damage is done
and how much federal aid is provided
to help offset the costs."
(solid bullet) General obligation bonds (GOs)
made up the fund's largest sector
concentration at 25.1% 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 February 28, 1998,
more than $1.2 billion
MANAGER: Jonathan Short,
since 1995; manager, various
Fidelity and Spartan municipal
income funds; joined Fidelity
in 1990
(checkmark)
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
2/28/98 8/31/97 2/28/97
0 - 30 65 74 71
31 - 90 15 16 5
91 - 180 14 0 21
181 - 397 6 10 3
WEIGHTED AVERAGE MATURITY
2/28/98 8/31/97 2/28/97
SPARTAN CALIFORNIA MUNICIPAL 44 DAYS 45 DAYS 40 DAYS
MONEY MARKET FUND
ALL TAX-FREE 40 DAYS 46 DAYS 40 DAYS
MONEY MARKET FUNDS AVERAGE*
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF FEBRUARY 28, 1998 AS OF AUGUST 31, 1997
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
Row: 1, Col: 1, Value: nil
Row: 1, Col: 2, Value: 12.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 65.0
Variable rate demand
notes (VRDNs) 61%
Commercial paper 18%
Tender bonds 2%
Municipal notes 17%
Other 2%
Variable rate demand
notes (VRDNs) 65%
Commercial paper 20%
Tender bonds 3%
Municipal notes 12%
Other 0%
*SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENTS FEBRUARY 28, 1998
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - 99.0%
Azusa Multi-Family Hsg. Rev. (Pacific Glen Apt. Proj.)
Series 1994, 3.50% (Continental Casualty Co.
Guaranteed) VRDN $ 4,600 $ 4,600
Barstow Multi-Family Hsg. Rev. (Rimrock Village Apt.
Proj.) Series 1996, 3.25%, LOC Federal Home Loan
Bank, VRDN (b) 3,000 3,000
Berkeley Unified School Dist. (Alameda Co.)
TRAN 4.25% 6/30/98 5,500 5,506
California Econ. Dev. Auth. Ind. Dev. Rev., VRDN:
(Calco, LLC Proj.) Series 1997, 3.50%, LOC Wells
Fargo Bank, NA 1,200 1,200
(Joseph Schmidt Proj.) Series A, 3.40%, LOC Banque
Nationale de Paris (b) 2,000 2,000
(Kuhnash Properties III, LLC/Arkay Plastics, CA, LLC Proj.)
Series 1997, 3.35%, LOC PNC Bank, Ohio (b) 1,500 1,500
California Edl. Facs. Auth. Rev. (Foundation for Edl.
Achievement) Series 1996A, 3.25% LOC Banque
Nationale de Paris, VRDN 2,500 2,500
California Gen. Oblig.:
CP:
3.65% 3/5/98 5,300 5,300
3.65% 3/11/98 10,200 10,200
3.70% 3/11/98 8,200 8,200
3.40% 3/27/98 8,400 8,400
3.45% 3/31/98 24,500 24,500
3.45% 4/6/98 4,200 4,200
3.50% 4/6/98 3,400 3,400
3.40% 4/7/98 2,500 2,500
3.55% 4/7/98 6,400 6,400
3.40% 4/9/98 5,000 5,000
3.30% 4/16/98 18,200 18,200
3.30% 4/17/98 5,800 5,800
3.35% 4/17/98 16,000 16,000
3.25% 4/20/98 14,000 14,000
Participating VRDN (c):
Series 1996 L, 3.56% (FGIC Insured) (Liquidity Facility
Caisse des Depots et Consignations) 17,075 17,075
Series CR-153D, 3.46% (Liquidity Facility Citibank, NY) 1,555
1,555
Series FR-23, 3.90% (Liquidity Facility Bank of New York) 895 895
Series SG-84, 3.41% (Liquidity Facility Societe Generale) 4,200
4,200
Series SG-85, 3.41% (Liquidity Facility Societe Generale) 10,500
10,500
RAN Series 1997, 4.50% 6/30/98 11,245 11,271
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Hsg. Fin. Agcy.:
Participating VRDN (c):
Series 1994 H, 3.56% (AMBAC Insured)
(Liquidity Facility Citibank) (b) $ 6,700 $ 6,700
Series 1994-1, 3.56%
(Liquidity Facility State Street Bank & Trust Co.) (b) 10,642
10,642
Series 1996 C1, 3.51%
(Liquidity Facility Bank of America) (b) 1,925 1,925
Series 1996 C2, 3.51%
(Liquidity Facility Bank of America) (b) 4,075 4,075
Series PA-90, 3.41%
(Liquidity Facility Merrill Lynch & Co., Inc.) (b) 4,820 4,820
Series PT-14, 3.36%
(Liquidity Facility Commerzbank, Germany) 6,250 6,250
Series PT-40A, 3.41%
(Liquidity Facility Commerzbank, Germany) (b) 1,300 1,300
Series PT- 40B, 3.41% (Liquidity Facility Bayerische
Hypotheken Wechsel) (b) 13,805 13,805
Series PT-40C, 3.36% (Liquidity Facility Banque
Nationale de Paris) (BPA Merrill Lynch & Co., Inc.) 2,790 2,790
Series PT-40D, 3.41% (Liquidity Facility Banque
Nationale de Paris) (BPA Merrill Lynch & Co., Inc.) (b) 10,180
10,180
Series PT-56, 3.41% (BPA Merrill Lynch & Co., Inc.) (b) 1,360
1,360
Series PT-68, 3.41%
(Liquidity Facility Credit Suisse First Boston) (b) 3,780 3,780
California Hsg. Fin. Agcy. Home Mtg. Rev.:
Series 1998 C, 3.55% 2/1/99 (FGIC Insured) (b) 4,300 4,300
Series 1998 E, 3.55% tender 3/12/99 (b) 14,500 14,500
California Hsg. Fin. Agcy. Mtg. Rev. Bonds Series 1996-J,
3.95%, tender 8/3/98 (FGIC Insured) (b) 10,500 10,500
California Hsg. Fin. Agcy Multi-Family Hsg. III VRDN:
Series B, 3.50%, LOC Morgan Guaranty Trust Co.,
NY, Credit Suisse First Boston (BK) (b) 8,200 8,200
Series C, 3.50%, LOC Morgan Guaranty Trust Co.,
NY, Credit Suisse First Boston (BK) (b) 10,430 10,430
California Hsg. Fin. Agcy. Single Family Mtg. Bonds
Series 1997 B, 3.70%, tender 4/1/98 (Morgan Stanley
Flex Agreements Guaranteed) (b) 5,400 5,400
California Poll. Cont. Fin. Auth.:
(Atlantic Richfield Co.) Series 1994A, 3.70%, VRDN (b) 1,900 1,900
(Pacific Gas & Elec. Co.):
VRDN:
Series 1996 A, 3.20%, LOC Swiss Bank Corp. (b) 7,500 7,500
Series 1996 B, 3.10%, LOC Rabobank Nederland (b) 7,400 7,400
Series 1997 D, 3.35% (b) 2,500 2,500
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Poll. Cont. Fin. Auth.: - continued
(Pacific Gas & Elec. Co.):
Bonds Series 1996E, CP mode:
3.70% 3/12/98, LOC Morgan Guaranty Trust Co., NY $ 3,300 $ 3,300
3.10% 4/3/98, LOC Morgan Guaranty Trust Co., NY 8,200 8,200
3.40% 4/8/98, LOC Morgan Guaranty Trust Co., NY 6,000 6,000
(Santa Clara Valley Disp. Proj.) Series 1997A, 3.15%,
LOC Bank of America Nat'l. Trust & Savings,
San Francisco, VRDN (b) 4,300 4,300
(Taormina Ind. Inc. Proj.) Series 1996 A, 3.85%,
LOC Sanwa Bank Ltd., VRDN (b) 3,100 3,100
California Poll. Cont. Fin. Auth. Solid Waste Disp. Rev.,
VRDN:
(Athens Disp. Co. Proj.) Series 1995, 3.20%, LOC Wells
Fargo Bank of San Francisco (b) 7,745 7,745
(Browning-Ferris Ind.) Series A, 3.30%, LOC Texas
Commerce Bank NA, Houston (b) 10,000 10,000
(EDCO Disposal) Series 1996 A, 3.20%,
LOC Wells Fargo Bank, NA (b) 7,500 7,500
(Shell Oil Co. Martinez Proj.) Series 1994 A, 3.60% (b) 1,700
1,700
California Public Works Board Lease Rev. (Dept. of Corrections):
Rfdg. Series 1997 A, 4.50% 11/1/98 5,358 5,380
Series 1997 B, 4.50% 9/1/98 3,000 3,009
Series 1997 C, 4.75% 9/1/98 3,000 3,013
California School Cash Reserves Prog. TRAN Series1997,
4.75%, 7/2/98 (AMBAC Insured) 38,500 38,611
California Statewide Commty. Dev. Auth. Rev., VRDN:
(Biocol Investments) 3.65%, LOC Union Bank of California (b) 900 900
(Bro-Co Gen. Partnership Proj.) Series 1990, 3.15%,
LOC California Teachers Retirement Sys. (b) 3,640 3,640
(Covenant Retirement Commty. Inc.):
Series 1995, 3.25%, LOC LaSalle Bank 3,900 3,900
3.25%, LOC LaSalle Nat'l. Bank 7,800 7,800
(Duke, Inc. Proj.) Series 1996 E, 3.40%,
LOC Wells Fargo Bank, N.A. (b) 1,410 1,410
(Jaygee Realty Co.) Series 1992, 3.70%,
LOC Union Bank of California (b) 300 300
(K.U.M. Ltd. Proj.) Series 1992, 3.65%,
LOC Union Bank of California (b) 2,200 2,200
(Michigan Hanger Ind. Proj.) Series 1992, 3.65%,
LOC Union Bank of California (b) 600 600
(Northwest Pipe & Casing Co. Proj.) Series 1990, 3.15%,
LOC California Teachers Retirement Sys. (b) 3,250 3,250
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
California Statewide Commty. Dev. Auth. Rev., VRDN: - continued
(Rapelli of California Proj.) 3.15%,
LOC California Teachers Retirement Sys. (b) $ 2,500 $ 2,500
(Rix Ind. Proj.) Series 1996 I, 3.30%,
LOC Wells Fargo Bank N.A. (b) 1,920 1,920
(Santa Cruz-Wilson Entities Ltd Proj.) Series 1993, 3.65%,
LOC Bank of Tokyo-Mitsubishi, Ltd. (b) 1,500 1,500
(Sunclipse, Inc.):
(Alhambra Proj.) Series 1989, 3.15%,
LOC California Teachers Retirement Sys. (b) 3,200 3,200
(Union City Proj.) Series 1989, 3.15%,
LOC California Teachers Retirement Sys. (b) 2,135 2,135
(Watt Four, LLC) 4.20%, LOC Sanwa Bank Ltd., Japan (b) 900 900
California Statewide Commty. Dev. Auth. Ind. Dev. Rev.,
VRDN:
(American River Packaging) 3.20%, LOC California
Teachers Retirement Sys. (b) 1,745 1,745
(Levecke, LLC Proj.) Series 1996 H, 3.65%,
LOC Union Bank of California (b) 2,500 2,500
(Lynwood Enterprises, LLC Proj.) Series 1997 D,
3.30%, LOC Fleet National Bank (b) 2,000 2,000
(Propak-Ca. Corp. Proj.) Series 1994 B, 3.15%,
LOC California Teachers Retirement Sys. (b) 2,265 2,265
(Setton Prop. Inc. Proj.) Series 1995 E, 3.30%,
LOC Wells Fargo Bank of San Francisco (b) 860 860
California Statewide Commty. Dev. Auth. Multi-Family Hsg.
Rev., VRDN:
(Canyon Creek Apts.) Series 1995 C, 3.15%
(FNMA Guaranteed) (b) 1,300 1,300
(Sunrise of Danville Proj.) 3.50%, LOC Heller Fin., Inc.,
Commerzbank, AG (b) 6,165 6,165
California Veterans Participating VRDN,
Series PA-315, 3.41% (FSA Insured) (Liquidity Facility
Merrill Lynch & Co. Inc.) (b)(c) 3,270 3,270
Camarillo Multi-Family Hsg. Auth. Rev. (Hacienda de
Camarillo Proj.) Series 1996, 3.25%
(FNMA Guaranteed) VRDN (b) 10,520 10,520
Central Valley School Fin. Auth. TRAN Series 1997,
4.50% 8/27/98 6,100 6,118
Chula Vista Ind. Dev. Rev. (San Diego Gas & Elec. Co.):
Bonds, CP mode:
Series C, 3.60% 4/9/98 (b) 3,000 3,000
Series D, 3.50% 5/15/98 (b) 6,500 6,500
Series E, 3.50% 5/15/98 (b) 2,500 2,500
Series B, 3.30%, VRDN (b) 9,800 9,800
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Clovis Unified School Dist. TRAN (Fresno County)
4.25% 6/30/98 $ 3,100 $ 3,104
Contra Costa County Multi-Family Hsg. Rev., VRDN:
(Del Norte Place Apt.) Series 1994 A, 4%,
LOC Sumitomo Bank Ltd. (b) 3,800 3,800
(Park Regency) Series A, 4.10%,
LOC Sumitomo Bank (b) 2,800 2,800
Contra Costa County Wtr. Dist. Participating VRDN,
Series SGA-24, 3.35% (Liquidity Facility Societe
Generale, France) (c) 6,425 6,425
Covina Redev. Agcy. Multi-Family Hsg. Rev. (Shadowhills
Apt. Proj.) Series 1994 A, 3.50% (Continental Casualty
Co. Guaranteed) VRDN 500 500
East Bay Muni. Util. Dist. Series 1988, 3.40% 4/14/98
(Liquidity Facility West Deutsche Landesbank
Gironzentrale) CP 1,800 1,800
Emeryville Redev. Agcy. Multi-Family Hsg. (Emerybay Apts. II)
3.25%, LOC Bank of America NT & SA, VRDN (b) 16,940 16,940
Escondido Commty. Dev. Commission Rev. (Escondido
Promenade Proj.) 3.20%, LOC Bank of America
NT & SA, VRDN (b) 1,200 1,200
Fairfield Ind. Dev. Auth. (Meyer Cookware Ind. Proj.) 3.35%,
LOC Banque Nationale de Paris, VRDN (b) 4,400 4,400
Fairfield Ind. Dev. Auth. Ind. Dev. Rev. 3.40%,
LOC Wells Fargo Bank, N.A., VRDN (b) 1,800 1,800
Fillmore (Water Improvement Proj.) Series 1997, 3.60%,
LOC Union Bank of California, VRDN 1,545 1,545
Fremont Multi-Family Hsg. Rev. (Treetops Apts.)
Series 1996 A, 3.25% (FNMA Guaranteed) VRDN (b) 6,000 6,000
Fremont TRAN (Almeda Co.) 4.25% 7/1/98 4,205 4,210
Fresno County Gen. Oblig. TRAN 4.25% 7/1/98 9,400 9,415
Garden Grove Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
(Cal-Malabar Apts.) Series 1997 A, 3.40%
(FNMA Guaranteed) 4,400 4,400
(Valley View Sr. Villas Proj.) Series1990 A, 3.25%,
LOC Wells Fargo Bank N.A. (b) 6,200 6,200
Huntington Park Multi-Family Rev. (Casa Rita Apts.)
Series 1994 A, 3.25%, LOC Wells Fargo
Bank, NA, VRDN (b) 4,200 4,200
Kern County Gen. Oblig. TRAN 4.75% 10/1/98 4,200 4,220
Lassen Muni. Util. Dist. Rev. Rfdg. Series 1996 A,
3.35% (FSA Insured) (Liquidity Facility Credit Local
de France) VRDN (b) 6,175 6,175
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
LaVerne Ind. Dev. Auth. Rev. (Paper-Pak Products, Inc. Proj.)
3.60%, LOC Nationsbank of Texas, VRDN (b) $ 5,855 $ 5,855
Livermore Multi-Family Mtg. Rev. (Portola Meadows Apts.)
Series 1989 A, 3.20%, LOC Bank of America
NT & SA, VRDN (b) 4,800 4,800
Loma Linda Multi-Family Hsg. Rev. (Loma Linda Springs Apts.)
Series 1989, 3.10%, VRDN (b) 700 700
Long Beach Gen. Oblig. TRAN Series 1997-98,
4.50% 10/8/98 2,000 2,008
Long Beach Harbor Dept. Series A, (Liquidity Facility
Canadian Imperial Bank of Commerce) CP:
3.70% 3/6/98 (b) 4,900 4,900
3.50% 4/8/98 (b) 5,000 5,000
Long Beach Harbor Participating VRDN, Series SG-73,
3.41% (Liquidity Facility Societe Generale, France) (b)(c) 5,880
5,880
Los Angeles Commty. Redev. Agcy. Multi-Family Hsg. Rev.,
VRDN:
(Academy Village Apts. Proj.) Series 1989 A, 3.05%,
LOC Swiss Bank Corp. (b) 5,000 5,000
(Grand Promenade Proj.) Series 1985, 3.10% 3,200 3,200
(Promenade Towers) 3.05%, VRDN 2,900 2,900
Los Angeles County Capital Asset Leasing Corp.
LOC Bayerische Landesbank Gironzentrale,
Morgan Guaranty Trust Co., CP:
3.40% 4/6/98 4,300 4,300
3.40% 4/7/98 5,250 5,250
Los Angeles County Gen. Oblig. TRAN 4.50% 6/30/98 65,770 65,905
Los Angeles County Ind. Dev. Auth. (Caitac & Jae Proj.)
3.65%, LOC Union Bank of California, VRDN (b) 2,470 2,470
Los Angeles County Local Edl. Agcy. Ctfs. of Prtn. TRAN
Series B, 4.50% 9/30/98 1,500 1,508
Los Angeles County Metropolitan Trans. Auth.:
Series A, 3.45% 4/8/98, LOC Bayerische
Landesbank Gironzentrale, Canadian Imperial
Bank of Commerce, CP 1,000 1,000
Participating VRDN (c):
Series 1998E, 3.40% (Liquidity Facility Corestates Bank) 10,975
10,975
Series SGB-2, 3.40% (Liquidity Facility Societe Generale) 10,200
10,200
Series SGB-3, 3.40% (Liquidity Facility Societe Generale) 10,570
10,570
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Los Angeles County Multi-Family Hsg. Rev., VRDN:
(Malibu Meadows Proj.) Series 1991 A, 4.20%,
LOC Sumitomo Bank Ltd. $ 11,700 $ 11,700
(Malibu Meadows II Proj.) Series 1991 B, 4.20%,
LOC Sumitomo Bank Ltd. 6,200 6,200
(Meadowridge Apt. Proj.) Series 1994 B, 3.50%
(Continental Casualty Co. Guaranteed) 4,000 4,000
(Park Sierra Apt. Proj.) 2.80%,
LOC Citibank, N.A. (b) 20,200 20,200
Los Angeles Dept. of Arpts. Rev. Rfdg. (Los Angeles Int'l. Arpt.)
Series A, 4% 5/15/98 6,400 6,404
Los Angeles Dept. of Wtr. & Pwr. Elec. Plant Rev.
3.55% 4/9/98 LOC Bank of Nova Scotia,
Toronto-Dominion Bank, CP 2,800 2,800
Los Angeles Gen. Oblig. TRAN 4.50% 6/30/98 11,400 11,424
Los Angeles Hbr. Dept. Participating VRDN (c):
Series 1996 B, 3.55% (BPA Bank of New York) (b) 19,800 19,800
Series SG-59, 3.41% (Liquidity Facility Societe Generale)
(MBIA Insured) (b) 8,950 8,950
Los Angeles Ontario Int'l. Arpt. Participating VRDN,
Series SG-61, 3.41% (Liquidity Facility Societe
Generale France) (b)(c) 2,600 2,600
Los Angeles Unified School Dist. TRAN:
Series 1997-98, 4.50% 7/1/98 15,500 15,534
4.50% 10/1/98 4,500 4,522
Los Angeles Wastewtr. Rev. Participating VRDN,
Series SGA-26, 3.35% (Liquidity Facility
Societe Generale) (c) 15,970 15,970
Los Angeles Wastewtr. Sys. Rev., LOC Morgan Guaranty
Trust Co., NY, Union Bank of Switzerland, CP:
3.45% 4/8/98 8,400 8,400
3.45% 5/12/98 5,800 5,800
Los Rios Commty. College Dist. TRAN 4.75% 12/30/98 10,000 10,091
Monterey Ind. Dev. Auth. Rev. (Slautterback Corp. Proj.)
Series 1996 A, 3.25%, LOC Bayerische
Vereinsbank, VRDN (b) 2,000 2,000
Newark Ind. Dev. Auth. Rev. (Gas Tech Proj.) Series 1989 A,
3.45%, LOC Union Bank of Switzerland, VRDN (b) 3,000 3,000
Northern California Pwr. Transmission Agcy. Participating
VRDN, Series 1998 3.45% (MBIA Insured)
LOC Bank of New York, NA (c) 5,600 5,600
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Oceanside Multi-Family Hsg. Rev. (Lakeridge Apt. Proj.)
Series1994, 3.45% (Continental Casualty Co.
Guaranteed) VRDN $ 6,000 $ 6,000
Ontario Ind. Dev. Auth. Rev. (Safari Land Proj.) Series 1989,
3.15%, LOC Bank of America, VRDN (b) 3,200 3,200
Orange County Apt. Dev. Rev.:
Participating VRDN (c):
Series JT 1996 A, 3.56%, LOC Citibank (b) 10,900 10,900
Series JT 1996 B, 3.46%, LOC Citibank 12,700 12,700
VRDN:
(Alicia Viego Proj.) Series 1986 A, 3.65%,
LOC Bank of Tokyo-Mitsubishi, Ltd. (b) 3,460 3,460
(Foothill Oaks Apts. Proj.) Series 1989 B, 3.30%,
LOC Bank of America NT & SA (b) 12,400 12,400
(Frost Construction Proj.) Series 1985 B, 3.15%,
LOC Wells Fargo Bank, NA 2,000 2,000
(Hidden Hills Apts.) Series 1985 U-C, 3.30%,
LOC Chase Manhattan Bank 13,600 13,600
(Laguna Summit Apts.) Series 1985 X, 3.30%,
LOC Chase Manhattan Bank 8,500 8,500
(Monarch Bay Apt. Proj.) Series 1985 T, 3.50%,
LOC Bank of Tokyo-Mitsubishi Bank, Ltd. 14,000 14,000
(Vista Verde Apt. Proj.) Series 1988 A, 3.20%,
LOC Wells Fargo Bank, NA (b) 12,050 12,050
(Wood Canyon Villas) Series 1991 B, 3.15%,
LOC Bank of America NT & SA (b) 6,800 6,800
(Yorba Linda Assoc.) Series 1985 D, 3.75%,
LOC Bank of Tokyo-Mitsubishi, Ltd. 15,100 15,100
Orange County Hsg. Auth. Apt. Dev. Rev.
(Costa Mesa Partners) Series 1985-BB, 3.20%,
LOC Chase Manhattan Bank, VRDN 6,600 6,600
Orange County Ind. Dev. Rev. (Control Air Conditioning
Corp./Ellis Enterprises) Series 1997, 3.50%,
LOC California Teachers Retirement Sys., VRDN 1,000 1,000
Orange County Local Trans. Auth. Participating VRDN
Series 1997, 3.45% (Liquidity Facility Bank of
New York, NA) (c) 4,400 4,400
Pleasant Hill Redev. Agcy. Multi-Family Hsg. Rev.
(Chateau III Proj.) Series 1996 A, 3.30%,
LOC Commerzbank, Germany, VRDN (b) 1,460 1,460
Rancho Wtr. Dist. Fin Auth. Participating VRDN,
3.38% (Liquidity Facility Societe Generale, France) (c) 8,750 8,750
Riverside County Gen. Oblig. TRAN 4.50% 6/30/98 6,200 6,211
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Riverside County Hsg. Auth. Multi-Family Hsg., VRDN:
(Polk Apt. Proj.) Series 1985 O, 2.95% $ 3,690 $ 3,690
(Tyler Village Proj.) Series 1986 A, 3.10%,
LOC Chase Manhattan Bank (b) 3,900 3,900
Riverside County Ind. Dev. Auth. (Merrick Engineering, Inc.)
3.50%, LOC Wells Fargo Bank, NA, VRDN (b) 1,320 1,320
Sacramento County Arpt. Sys. Rev. Participating VRDN (c):
Series SG-8, 3.40%
(Liquidity Facility Societe Generale, France) 8,685 8,685
Series SGA-33, 3.35%
(Liquidity Facility Societe Generale, France) 5,810 5,810
Sacramento County Gen. Oblig. TRAN 4.50% 9/30/98 5,770 5,793
Sacramento Hsg. Auth. Multi-Family Hsg. Rev. (Chesapeake
Commons Holdings, Inc.) Series 1997 A, 3.25%,
LOC Bank One, Arizona, NA, VRDN (b) 3,000 3,000
San Bernardino County Hsg. (Alta Park Apts.)
Series P, 4.10%, LOC Sumitomo Bank, Ltd., VRDN 5,100 5,100
San Bernardino County Ind. Dev. Auth. Rev., VRDN:
(McClain Citrus Inc. Proj.) 3.15%,
LOC California Teachers Retirement Sys. (b) 2,900 2,900
(N.R.I., Inc.) Series 1989, 3.15%,
LOC California Teachers Retirement Sys. (b) 1,575 1,575
(W&H Voortman Inc. Proj.) Series 1989, 3.15%,
LOC California Teachers Retirement Sys (b) 2,420 2,420
San Diego County Wtr. Auth. Series 1, 3.40% 4/9/98
(Liquidity Facility Bayerische Landesbank Girozentrale) CP 4,000
4,000
San Diego Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Coral Pointe Apt. Proj.) Series 1993A, 3.50%
(Continental Casualty Guarenteed) 5,000 5,000
(Paseo Point Apt.) Series 1994 A, 3.10%,
LOC Bank of Tokyo-Mitsubishi, Ltd. 5,950 5,950
San Diego Ind. Dev. Participating VRDN, Series 1997,
3.45% (Liquidity Facility Bank of New York, NY) (c) 12,000 12,000
San Diego Multi-Family Hsg. Rev. (University Town
Ctr. Apts.) 2.65%, LOC Bank of America, VRDN 2,000 2,000
San Diego Regional Trans. Commty. Sales Tax Rev.
Participating VRDN, Series BTP-185, 3.40%
(Liquidity Facility Bankers Trust Company, NY) (c) 4,920 4,920
San Francisco City & County Int'l Arpt. Commty. Series A, CP:
3.45% 3/6/98 LOC Bayerische Landesbank
Gironzentrale, Morgan Guaranty Trust Co., NY (b) 3,115 3,115
3.40% 5/7/98 LOC Bayerische Landesbank Girozentrale,
Morgan Guaranty Trust Co., NY (b) 3,600 3,600
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
San Francisco City & County Parking Meter Rev. Auth.
Participating VRDN, Series 1996 A, 3.36%
(Liquidity Facility Bank of America NT & SA) (c) $ 7,175 $ 7,175
San Francisco City & County Participating VRDN (c):
Series 1996 AA2, 3.46%
(Liquidity Facility Bank of America NT & SA) 1,740 1,740
Series 1996 AA3, 3.46% (FGIC Insured)
(Liquidity Facility Bank of America NT & SA) 4,210 4,210
Series 1996 AA4, 3.46%
(Liquidity Facility Bank of America NT & SA) 4,450 4,450
San Francisco City & County Redev. Agcy. Mtg. Rev.
Participating VRDN, Series PT-125, 3.36% 7/1/24
(Liquidity Facility Merrill Lynch & Co., Inc.) (c) 3,220 3,220
San Francisco City & County Redev. Prog. Participating VRDN,
Series 1997T, 3.46% (Liquidity Facility Caisse des
Depots et Consigns) (c) 2,500 2,500
San Jose Multi-Family Hsg. Rev., VRDN:
(Almaden Lake Village Apt. Assoc.) Series 1997 A, 3.20%,
LOC Bank of America (b) 4,700 4,700
(Siena at Renaissance Square) Series 1996 A, 3.20%,
LOC Bank One Arizona, N.A (b) 11,000 11,000
(Somerset Park Apts.) Series 1987 A, 3.10%,
LOC Bank of America, NT & SA (b) 3,900 3,900
San Leandro Multi-Family Hsg. Rev. (Carlton Plaza) 3.30%,
LOC Commerzbank, AG, VRDN (b) 5,000 5,000
San Luis Obispo Gen. Oblig. TRAN 4.50% 7/8/98 2,500 2,505
Santa Barbara Schools Fing. Auth. TRAN Series 1997,
4.25% 6/30/98 9,000 9,011
Santa Clara County Gen. Oblig. TRAN 4.75% 10/1/98 10,350 10,414
Santa Rosa Multi-Family Hsg. (Quail Run Apts.) Series 1997 A,
3.30%, LOC U.S. Bank of Washington, VRDN (b) 5,850 5,850
Simi Valley Multi-Family Hsg. Rev. (Lincoln Wood Ranch Apt.)
4.20% LOC Sumitomo Bank, Ltd., VRDN 3,800 3,800
Southern California Metropolitan Wtr. Dist.:
Series A, 3.30% 4/3/98, CP 1,800 1,800
Series B, CP:
3.65% 3/10/98 (Liquidity Facility Westdeutsche
Landesbank Gironzentrale) 10,000 10,000
3.30% 4/3/98 (Liquidity Facility Westdeutsche
Landesbank Gironzentrale) 2,000 2,000
3.40% 4/6/98 (Liquidity Facility Westdeutsche
Landesbank Gironzentrale) 1,000 1,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CALIFORNIA - CONTINUED
Southern California Metropolitan Wtr. Dist.: - continued
Series B, CP:
3.40% 4/8/98 (Liquidity Facility WestDeutsche
Landesbank Gironzentrale) $ 1,000 $ 1,000
3.45% 4/8/98 (Liquidity Facility WestDeutsche
Landesbank Gironzentrale) 2,000 2,000
Participating VRDN, Series PT-1011, 3.36%
(Liquidity Facility Merrill Lynch & Co., Inc.) (c) 12,750 12,750
Southern California Pub. Pwr. Auth. Participating VRDN,
Series SG-35, 3.38% (Liquidity Facility Societe
Generale, France) (c) 1,000 1,000
Torrance Hospital Rev. (Little Co. of Mary Hosp.-
Torrance Mem. Med Ctr.) Series 1992, 3.25%,
LOC Chase Manhattan Bank, VRDN 6,800 6,800
University of California Rev.:
Rfdg. Participating VRDN, Series 1997 G, 3.40%
(Liquidity Facility Corestates Bank) (c) 20,000 20,000
Series A, 3.65% 4/8/98, CP 12,500 12,500
Vallejo Multi-Family Hsg. Rev. (Hillside Terrace Apts./Vallejo
Hillside Assoc.) Series 1997 A, 3.40% (FNMA Guaranteed)
VRDN (b) 1,725 1,725
Vista Ind. Dev. Auth. Rev. (Desalination Sys., Inc.) Series 1995,
3.50%, LOC Wells Fargo Bank N.A., VRDN (b) 6,170 6,170
1,333,394
PUERTO RICO - 1.0%
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Participating
VRDN, Series SGA-43, 3.35% (Liquidity Facility Societe
Generale France) (c) 5,700 5,700
Puerto Rico Infrastructure Fin. Auth.
Participating VRDN, Series 1997 A, 3.30%
(Liquidity Facility CoreStates Bank) (c) 7,100 7,100
12,800
TOTAL INVESTMENTS - 100% $1,346,194
Total Cost for Income Tax Purposes $ 1,346,194
SECURITY TYPE ABBREVIATIONS
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
2. Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
3. 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.
(unaudited) During fiscal year ended 1998, 100% of the fund's income
dividends was free from federal income tax, and 40.49% of the fund's
income dividends was subject to the federal alternative minimum tax.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) FEBRUARY 28, 1998
ASSETS
INVESTMENT IN SECURITIES, AT VALUE - $ 1,346,194
SEE ACCOMPANYING SCHEDULE
INTEREST RECEIVABLE 11,741
TOTAL ASSETS 1,357,935
LIABILITIES
PAYABLE TO CUSTODIAN BANK $ 123
PAYABLE FOR INVESTMENTS PURCHASED 1,578
SHARE TRANSACTIONS IN PROCESS 2,868
DISTRIBUTIONS PAYABLE 75
ACCRUED MANAGEMENT FEE 521
OTHER PAYABLES AND ACCRUED EXPENSES 15
TOTAL LIABILITIES 5,180
NET ASSETS $ 1,352,755
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 1,353,380
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (625)
NET ASSETS, FOR 1,353,376 SHARES OUTSTANDING $ 1,352,755
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($1,352,755 (DIVIDED BY) 1,353,376 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED FEBRUARY 28, 1998
INTEREST INCOME $ 48,954
EXPENSES
MANAGEMENT FEE $ 6,697
NON-INTERESTED TRUSTEES' COMPENSATION 7
TOTAL EXPENSES BEFORE REDUCTIONS 6,704
EXPENSE REDUCTIONS (728) 5,976
NET INTEREST INCOME 42,978
NET REALIZED GAIN (LOSS) ON INVESTMENTS (33)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 42,945
OTHER INFORMATION $ 8
EXPENSE REDUCTIONS
CUSTODIAN CREDITS
TRANSFER AGENT CREDITS 48
FMR REIMBURSEMENT 672
$ 728
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
FEBRUARY 28, FEBRUARY 28,
1998 1997
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 42,978 $ 42,151
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) (33) 9
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 42,945 42,160
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (42,978) (42,151)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 1,481,851 1,487,179
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 42,120 41,201
COST OF SHARES REDEEMED (1,515,041) (1,491,837)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 8,930 36,543
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 8,897 36,552
NET ASSETS
BEGINNING OF PERIOD 1,343,858 1,307,306
END OF PERIOD $ 1,352,755 $ 1,343,858
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED YEAR ENDED YEARS ENDED
FEBRUARY 28, FEBRUARY 29, FEBRUARY 28,
1998 1997 1996 1995 1994
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
NET ASSET VALUE, BEGINNING $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
OF PERIOD
INCOME FROM INVESTMENT .032 .031 .035 .030 .024
OPERATIONS
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST INCOME (.032) (.031) (.035) (.030) (.024)
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A, B 3.26% 3.18% 3.60% 3.00% 2.45%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD $ 1,353 $ 1,344 $ 1,307 $ 1,163 $ 1,065
(IN MILLIONS)
RATIO OF EXPENSES TO AVERAGE .45% C .35% C .31% C .28% C .21% C
NET ASSETS
RATIO OF EXPENSES TO AVERAGE .45% .34% D .31% .28% .21%
NET ASSETS AFTER EXPENSE
REDUCTIONS
RATIO OF NET INTEREST INCOME TO 3.21% 3.14% 3.55% 2.96% 2.42%
AVERAGE NET ASSETS
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE.
C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
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.
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 FEBRUARY 28, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY CA MUNI MONEY MARKET 3.07% 14.52% 41.95%
CALIFORNIA TAX-FREE 3.01% 14.59% 42.25%
MONEY MARKET FUNDS AVERAGE
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you 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 one year average represents a peer group of 55
money market funds. (The periods covered by the IBC Financial Data,
Inc. numbers are the closest available match to those covered by the
fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY CA MUNI MONEY MARKET 3.07% 2.75% 3.57%
CALIFORNIA TAX-FREE 3.01% 2.76% 3.58%
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
3/2/98 12/1/97 9/1/97 6/2/97 3/3/97
CALIFORNIA MUNICIPAL 2.82% 3.19% 2.77% 3.23% 2.77%
MONEY MARKET
CALIFORNIA TAX-FREE 2.73% 3.11% 2.81% 3.14% 2.74%
MONEY MARKET FUNDS AVERAGE
CALIFORNIA MUNICIPAL 4.86% 5.50% 4.77% 5.56% 4.77%
MONEY MARKET TAX-EQUIVALENT
Row: 1, Col: 1, Value: 2.82
Row: 1, Col: 2, Value: 2.73
Row: 2, Col: 1, Value: 3.19
Row: 2, Col: 2, Value: 3.11
Row: 3, Col: 1, Value: 2.77
Row: 3, Col: 2, Value: 2.81
Row: 4, Col: 1, Value: 3.23
Row: 4, Col: 2, Value: 3.14
Row: 5, Col: 1, Value: 2.77
Row: 5, Col: 2, Value: 2.74
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
NOTE TO SHAREHOLDERS: Diane McLaughlin became Portfolio Manager of
Fidelity California Municipal Money Market Fund on November 1, 1997.
Q. WHAT WAS THE MARKET ENVIRONMENT LIKE DURING THE PAST 12 MONTHS?
A. Economic growth was strong throughout the year: Real gross domestic
product - GDP adjusted for inflation - averaged 3.8% in 1997. In
addition, unemployment averaged 4.9% in 1997 - a rate that
historically would have meant higher inflation due to wage pressures.
However, 1997 was different. The 1997 producer price index (PPI) - a
measure of wholesale prices - dropped 1.2%, representing the biggest
one-year drop since 1986. Similarly, the consumer price index (CPI)
finished the year up 1.7%, the slowest gain in that same 11-year time
period. Several reasons are cited for this lack of inflation. Most
notably, productivity improvements over the past few years have
reduced the risk of inflationary pressures that had previously
accompanied similar periods of low unemployment. Nevertheless, the
Federal Reserve Board did raise the rate banks charge each other for
overnight loans - known as the fed funds target rate - from 5.25% to
5.50% in March 1997. This move was seen as a preemptive strike against
future inflation that was expected to emerge along with robust
economic growth. Although economic strength persisted and the market
expected another interest-rate hike, no signs of inflation arose -
causing the Fed to hold off on raising rates further.
Q. WHAT HAPPENED AT THE END OF THE PERIOD?
A. In October, the financial crisis in Southeast Asia took center
stage. This unusual turn of events shifted focus from growth in the
domestic economy to the possible impact the Asian crisis might have on
the economy in the U.S. and other parts of the world. The dollar
appreciated markedly against many Asian currencies, making Asian
imports to the U.S. less expensive and, consequently, suppressing
inflation. Many market observers became concerned that the U.S.
economy would slow significantly as exports to Asian countries
declined. At the end of the period, the Fed shifted to a more neutral
stance, giving itself flexibility to raise interest rates if inflation
started to surface or lower rates if the spillover from the crisis in
Asia significantly hurt the U.S. economy.
Q. WHAT WAS YOUR STRATEGY AS THIS UNFOLDED?
A. At the beginning of the period, the fund's average maturity was 38
days. For most of the year, the fund's investment focus was on the
short end of the money market yield curve, as increased supply of
these shorter-term securities made that part of the market attractive.
However, the fund did participate in the one-year market during the
summer when supply became more plentiful and yields factored in future
interest-rate increases. Consequently, the fund's average maturity
lengthened to 46 days at the end of the period.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on February 28, 1998, was 2.77%,
compared to 2.76% 12 months ago. The latest yield was the equivalent
of a 4.77% taxable yield for California investors in the 41.95%
combined federal and state tax bracket. Through February 28, 1998, the
fund's 12-month total return was 3.07%, compared to 3.01% for the
California tax-free money market funds average, according to IBC
Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. I see two possible scenarios going forward. Domestic growth might
continue at the pace set in 1997, leading to an even tighter labor
market. In this case, I think eventual wage increases would be passed
on to the consumer - meaning inflation. On the other hand, the
spillover from the Asian turmoil may significantly dampen growth in
the U.S. and suppress inflation. I believe the Fed is waiting for more
evidence to evaluate the extent of the Asian situation, so I expect
steady policy in the near term. The market, however, has priced in an
easing - or lowering - of rates. I expect to keep the fund's average
maturity neutral with that of its peers, giving me the flexibility to
extend the fund's maturity if this easing outlook shifts and rates get
more attractive.
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 $1.00 share price
FUND NUMBER: 097
TRADING SYMBOL: FCFXX
START DATE: July 7, 1984
SIZE: as of February 28, 1998,
more than $975 million
MANAGER: Diane McLaughlin,
since November 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
2/28/98 8/31/97 2/28/97
0 - 30 60 75 73
31 - 90 20 15 4
91 - 180 14 0 21
181 - 397 6 10 2
WEIGHTED AVERAGE MATURITY
2/28/98 8/31/97 2/28/97
FIDELITY CALIFORNIA MUNICIPAL
MONEY MARKET FUND 46 DAYS 45 DAYS 38 DAYS
CALIFORNIA TAX-FREE
MONEY MARKET FUNDS AVERAGE* 40 DAYS 46 DAYS 40 DAYS
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF FEBRUARY 28, 1998 AS OF AUGUST 31, 1997
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: 24.0
Row: 1, Col: 5, Value: 55.0
Row: 1, Col: 1, Value: 11.0
Row: 1, Col: 2, Value: 2.0
Row: 1, Col: 3, Value: 22.0
Row: 1, Col: 4, Value: 65.0
Variable rate demand
notes (VRDNs) 55%
Commercial paper
(including commercial
paper mode) 24%
Tender bonds 2%
Municipal notes 17%
Other 2%
Variable rate demand
notes (VRDNs) 65%
Commercial paper
(including commercial
paper mode) 22%
Tender bonds 2%
Municipal notes 11%
Other 0%
*SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENTS FEBRUARY 28, 1998
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - 98.4%
Alameda County Ind. Dev. Auth. Ind. Rev. Rfdg
(Longview Fibre Co.) Series 1988, 3.40%,
LOC ABN-AMRO Bank, VRDN $ 1,750 $ 1,750
Azusa Multi-Family Hsg. Rev. (Pacific Glen Apt. Proj.)
Series 1994, 3.50%, VRDN 4,200 4,200
Barstow Multi-Family Hsg. Rev.
(Rimrock Village Apt. Proj.) Series 1996, 3.25%,
LOC Federal Home Loan Bank, VRDN (b) 1,650 1,650
Berkeley Unified School Dist. (Almeda Co.)
TRAN 4.25% 6/30/98 3,500 3,504
California Econ. Dev. Fing. Auth. Rev. Ind. Dev. Rev. VRDN:
(Joseph Schmidt Proj.) Series A, 3.40%,
LOC Banque Nationale De Paris (b) 1,500 1,500
(Kuhnash Properties III, LLC/Arkay Plastics, CA, LLC Proj.)
Series 1997, 3.35%, LOC PNC Bank, Ohio (b) 1,000 1,000
California Gen. Oblig.:
CP:
3.15% 3/4/98 4,000 4,000
3.65% 3/5/98 4,000 4,000
3.70% 3/6/98 3,000 3,000
3.65% 3/11/98 6,300 6,300
3.40% 3/27/98 5,100 5,100
3.45% 3/31/98 6,000 6,000
3.45% 4/6/98 3,200 3,200
3.50% 4/6/98 4,245 4,245
3.40% 4/7/98 6,500 6,500
3.55% 4/7/98 13,600 13,600
3.40% 4/9/98 7,000 7,000
3.30% 4/17/98 7,000 7,000
3.40% 4/17/98 16,200 16,200
3.45% 4/17/98 8,500 8,500
3.25% 4/20/98 10,000 10,000
Participating VRDN (c):
Series 1996 L, 3.56% (FGIC Insured)
(Liquidity Facility Caisse des Depots et Consignations) 7,650
7,650
Series SG-84, 3.41% (Liquidity Facility Societe Generale) 1,800
1,800
Series SGB-7, 3.40% (Liquidity Facility Societe Generale) 2,700
2,700
RAN Participating VRDN, Series FR-23, 3.90%
(Liquidity Facility Bank of New York) (c) 1,000 1,000
RAN Series 1997, 4.50% 6/30/98 9,130 9,156
California Home Fin. Agcy. Home Mtg. Rev.:
Bonds Series 1998 E, 3.55%, tender 3/12/99 (b) 10,500 10,500
Series 1998 C, 3.55% 2/1/99 (FGIC Insured) (b) 3,000 3,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Hsg. Fin. Agcy. Home Mtg. Rev. Bonds
Series 1996-J, 3.95%, tender 8/3/98 (FGIC Insured) (b) $ 6,500 $ 6,500
California Hsg. Fin. Agcy. Multi-Family Hsg. III Series B,
3.50%, LOC Morgan Guaranty Trust Co., NY, Credit
Suisse First Boston (BK) VRDN (b) 2,920 2,920
California Hsg. Fin. Agcy. Participating VRDN (c):
Series 1994 H, 3.56% (AMBAC Insured)
(Liquidity Facility Citibank) (b) 4,000 4,000
Series 1994-1, 3.56%
(Liquidity Facility State Street Bank & Trust Co.) (b) 6,525 6,525
Series 1996-C1, 3.51%
(Liquidity Facility Bank of America) (b) 3,225 3,225
Series PA-90, 3.41%
(Liquidity Facility Merrill Lynch & Co., Inc.) (b) 1,710 1,710
Series PA-112, 3.41%
(Liquidity Facility Merrill Lynch & Co. Inc) (b) 2,360 2,360
Series PT-14, 3.36%
(Liquidity Facility Commerzbank, Germany) 3,620 3,620
Series PT-40A, 3.41%
(Liquidity Facility Commerzbank, Germany) (b) 6,700 6,700
Series PT-40B, 3.41%
(Liquidity Facility Bayerische Hypotheken Wechsel) (b) 10,840
10,840
Series PT-40C, 3.36% (Liquidity Facility Banque Nationale
de Paris) (BPA Merrill Lynch & Co., Inc.) 5,575 5,575
Series PT-40D, 3.41% (Liquidity Facility Banque Nationale
de Paris) (BPA Merrill Lynch & Co., Inc.) (b) 60 60
Series PT-56, 3.41% (Liquidity Facility Credit Suisse
First Boston) (BPA Merrill Lynch & Co., Inc.) (b) 1,030 1,030
California Hsg. Fin. Agcy. Single Family Mtg. Bonds
Series 1997 B, 3.70%, tender 4/1/98
(Morgan Stanley Flex Agreements Guaranteed) (b) 3,210 3,210
California Poll. Cont. Fin. Auth. (Pacific Gas & Elec. Co.):
Bonds, CP mode:
Series 1996 D, 3.55% 5/20/98
LOC Union Bank of Switzerland 12,100 12,100
Series 1996 E, LOC Morgan Guaranty Trust Co., NY:
3.70% 3/12/98 5,000 5,000
3.10% 4/3/98 5,000 5,000
3.40% 4/8/98 6,100 6,100
VRDN:
Series 1996 A, 3.20%, LOC Swiss Bank Corp. (b) 5,400 5,400
Series 1996 B, 3.10%, LOC Rabobank Nederland (b) 3,800 3,800
Series 1997 B, 3.60%, LOC Deutsche Bank, AG (b) 5,300 5,300
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Poll. Cont. Fin. Auth. Resource Recovery Rev., VRDN:
(Atlantic Richfield Co.) Series 1994A, 3.70% (b) $ 1,100 $ 1,100
(Delano Proj.) Series 1991, 3.65%,
LOC ABN-Amro Holdings, Algemene Bank (b) 1,400 1,400
(Ultrapwr. Rocklin Proj.) Series 1988 A, 3.65%,
LOC Bank of America (b) 1,400 1,400
California Poll. Cont. Fin. Auth. Solid Waste Disp. Rev., VRDN:
(Athens Disp. Co. Proj.) Series 1995, 3.20%,
LOC Wells Fargo Bank of San Francisco (b) 1,890 1,890
(EDCO Disposal) Series 1996 A, 3.20%,
LOC Wells Fargo Bank, NA (b) 3,385 3,385
(Sanifill Inc. Proj.) Series 1995 A, 3.25%,
LOC California Teachers Retirement Sys. (b) 3,500 3,500
(Shell Oil Co. Martinez Proj.):
Series 1994 A, 3.60% (b) 1,600 1,600
Series 1994 B, 3.60% (b) 900 900
(Taormina Ind. Inc. Proj.) Series 1996 A, 3.85%,
LOC Sanwa Bank Ltd. (b) 1,650 1,650
California Public Works Board Lease Rev. (Dept. of Corrections):
Rfdg. Series 1997 A, 4.50% 11/1/98 3,572 3,586
Series 1997 B, 4.50% 9/1/98 2,000 2,006
Series 1997 C, 4.75% 9/1/98 2,000 2,008
California Statewide Commty. Dev. Auth. Enterprise Zone
Facs. Rev. (JTF Enterprises, LLC Proj.) Series 1996 A, 3.25%,
LOC Bank of America, VRDN 3,000 3,000
California Statewide Commty. Dev. Auth. Ind. Dev. Rev., VRDN:
(Carvin Corp.) 3.15%,
LOC California Teachers Retirement Sys. (b) 2,420 2,420
(Cordeiro Vault Co., Inc. Proj.) Series 1996 M, 3.20%,
LOC California Teachers Retirement Sys. (b) 1,120 1,120
(Levecke, LLC Proj.) Series 1996H, 3.65%,
LOC Union Bank of California (b) 1,500 1,500
(Lynwood Enterprises, LLC Proj.) Series 1997 D, 3.30%,
LOC Fleet National Bank (b) 1,400 1,400
(Pasco Scientific Proj.) 3.15%,
LOC California Teachers Retirement Sys. (b) 2,475 2,475
(Peets Coffee & Tea Inc.) Series 1995 E, 3.15%,
LOC California Teachers Retirement Sys. (b) 1,560 1,560
(Santa Cruz-Wilson Entities Ltd. Proj.) Series 1993, 3.65%,
LOC Bank of Tokyo-Mitsubishi, Ltd. (b) 1,210 1,210
(Setton Prop. Inc. Proj.) Series 1995 E, 3.30%,
LOC Wells Fargo Bank of San Francisco (b) 2,590 2,590
(Veriflo Corp. Proj.) Series 1996C, 3.20%,
LOC ABN-AMRO (b) 1,800 1,800
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Statewide Commty. Dev. Auth. Ind. Dev. Rev., VRDN: -
continued
(W&H Voortman Inc. Proj.) Series 1990, 3.20%,
LOC California Teachers Retirement Sys. (b) $ 1,080 $ 1,080
California Statewide Commty. Dev. Auth. Rev., VRDN:
(Andercraft Prod. Inc.) Series 1989, 3.20%,
LOC California Teachers Retirement Sys. (b) 650 650
(Biocol Investments) 3.65%,
LOC Union Bank of California (b) 600 600
(Covenant Retirement Commty. Inc.):
Series 1995, 3.25%, LOC LaSalle Nat'l. Bank 3,900 3,900
Series 1996, 3.25%, LOC LaSalle Nat'l. Bank 10,100 10,100
(Eurodesign Cabinets Inc. Proj.) 3.20%,
LOC California Teachers Retirement Sys. (b) 900 900
(Fibrebond West Inc. Proj.) Series 1996 N, 3.15%,
LOC California Teachers Retirement Sys. (b) 6,000 6,000
(Fulton Properties Ltd., Inc.) Series 1996F, 3.30%,
LOC Wells Fargo Bank (b) 3,625 3,625
(Grundfos Pumps Corp. Proj.) Series 1989, 3.15%,
LOC California Teachers Retirement Sys. (b) 6,000 6,000
(Instrument Specialties Co.) Series 1989, 3.15%,
LOC California Teachers Retirement Sys. (b) 745 745
(JDI Partners Proj.) 3.15%,
LOC California Teachers Retirement Sys. (b) 1,500 1,500
(Lansmont Corp. Proj.) Series 1996 G, 3.30%,
LOC Wells Fargo Bank (b) 1,000 1,000
(Lorber Ind. of California Proj.) Series 1992, 3.65%,
LOC Union Bank (b) 600 600
(Marcel & Margrit Shurman Proj.) 3.20%,
LOC California Teachers Retirement Sys. (b) 1,725 1,725
(Marko Prod. Inc. Proj.) Series 1992, 3.65%,
LOC Union Bank (b) 430 430
(Redline Synthetic Oil Corp.) 3.20%,
LOC California Teachers Retirement Sys. (b) 1,065 1,065
(Sys. Engineering & Mgmt. Co.) 3.20%,
LOC California Teachers Retirement Sys. (b) 1,690 1,690
(Watt Four, LLC) 4.20%,
LOC Sanwa Bank Ltd., Japan (b) 500 500
(Zarn Inc. Proj.) Series 1989, 3.20%,
LOC California Teacher Retirement Sys. (b) 815 815
(Zieman Manufacturing Co. Proj.) Series 1990, 3.20%,
LOC California Teachers Retirement Sys. (b) 455 455
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
California Statewide Commty. Dev. Auth. Multi-Family Hsg.
Rev., VRDN:
(Canyon Creek Apts.) Series 1995 C, 3.15%
(FNMA Guaranteed) (b) $ 700 $ 700
(Evapco, Inc.) Series 1996 K, 3.30%,
LOC NationsBank (b) 1,415 1,415
(Oakmont Stokton) Series 1997C, 3.50%,
LOC Heller Financial Inc. (b) 5,960 5,960
(Sunrise of Moraga) Series 1997G, 3.30%,
LOC Heller Financial Inc. (b) 1,200 1,200
California TRAN (School Cash Reserves Prog.)
4.75%, 7/2/98 (AMBAC Insured)
(LOC Ind. Bank of Japan, LTD) 26,200 26,275
California Veterans Participating VRDN,
Series PA-315, 3.41% (FSA Insured) (Liquidity Facility
Merrill Lynch & Co. Inc.) (b)(c) 2,100 2,100
Camarillo Multi-Family Hsg. Auth. Rev.
(Hacienda de Camarillo Proj.) Series 1996, 3.25%
(FNMA Guaranteed) VRDN (b) 5,900 5,900
Carlsbad Multi-Family Hsg. Rev., VRDN:
(La Costa Apt. Proj.) Series 1993 A, 2.65%,
LOC Bank of America 1,200 1,200
(Seascape Village Proj.) Series A, 3.40%
(Continental Casualty Guaranteed) 10,600 10,600
Central Valley School Fin. Auth. TRAN Series 1997,
4.50% 8/27/98 3,900 3,911
Chula Vista Ind. Dev. Rev. (San Diego Gas & Elec. Co.):
Bonds, CP mode:
Series C, 3.60% 4/9/98 (b) 5,000 5,000
Series D, 3.50% 5/15/98 (b) 3,500 3,500
Series E, 3.50% 5/15/98 (b) 2,500 2,500
Series B, VRDN :
3.30% (b) 2,000 2,000
3.95% (b) 3,700 3,700
Clovis Unified School Dist. TRAN (Fresno County)
4.25% 6/30/98 1,900 1,903
Contra Costa County Multi-Family Hsg. Rev., VRDN:
(Del Norte Place Apt.) Series 1994 A, 4%,
LOC Sumitomo Bank Ltd. (b) 2,700 2,700
(Park Regency) Series A, 4.10%, LOC Sumitomo Bank (b) 5,400 5,400
Contra Costa County TRAN Series A, 4.50% 7/1/98 6,910 6,925
Contra Costa County Wtr. Dist. Participating VRDN,
Series SGA-24, 3.35% (Liquidity Facility Societe
Generale, France) (c) 9,100 9,100
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Covina Redev. Agcy. Multi-Family Hsg. Rev.
(Shadowhills Apt. Proj.) Series 1994 A, 3.50%
(Continental Casualty Co. Guaranteed) VRDN $ 500 $ 500
Fairfield Ind. Dev. Auth. (Meyer Cookward Ind. Proj.) 3.35%,
LOC Banque Nationale de Paris, VRDN (b) 4,100 4,100
Fillmore (Water Improvement Proj.) Series 1997, 3.60%,
LOC Union Bank of California, VRDN 1,000 1,000
Fowler Ind. Dev. Auth. Ind. Dev. Rev. (Bee Sweet Citrus
Inc., Proj.) 3.50%, LOC Bank of America, VRDN (b) 1,800 1,800
Fremont Multi-Family Hsg. Rev. (Treetops Apts.) Series 1996 A,
3.25% (FNMA Guaranteed) VRDN (b) 3,300 3,300
Fremont TRAN (Almeda Co.) 4.25% 7/1/98 2,700 2,703
Fresno County Gen. Oblig. TRAN 4.25% 7/1/98 6,800 6,810
Garden Grove Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
(Cal-Malabar Apts.) Series 1997 A, 3.40%
(FNMA Guaranteed) 2,750 2,750
(Valley View Sr. Villas Proj.) Series 1990 A, 3.25%,
LOC Wells Fargo Bank N.A. (b) 1,500 1,500
Huntington Beach Multi-Family Hsg. Rev. (Five Point
Seniors Proj.) Series 1991 A, 3.15%, LOC Wells
Fargo Bank, VRDN (b) 6,400 6,400
Kern County Gen. Oblig. TRAN 4.75% 10/1/98 2,800 2,815
Lassen Muni. Util. Dist. Rev. Rfdg. Series 1996 A, 3.35%
(FSA Insured) (Liquidity Facility Credit Local
de France) VRDN (b) 3,280 3,280
Livermore Ctfs. of Prtn. (Reverse Osmosis Proj.) 3.30%,
LOC Nat'l. Westminster Bank PLC, VRDN 900 900
Long Beach Gen. Oblig. TRAN Series 1997-98,
4.50% 10/8/98 1,400 1,406
Long Beach Hbr. Dept. Series A (Liquidity Facility Canadian
Imperial Bank of Commerce) CP:
3.70% 3/6/98 (b) 6,600 6,600
3.80% 3/6/98 (b) 1,000 1,000
3.50% 4/8/98 (b) 10,550 10,550
3.50% 4/9/98 (b) 4,000 4,000
Long Beach Hbr. Rev. Participating VRDN, Series SG-73,
3.41% (Liquidity Facility Societe Generale, France) (b)(c) 3,000
3,000
Los Angeles Commty. Redev. Agcy. Multi-Family Hsg. Rev.
(Promenade Towers) 3.05%, VRDN 11,875 11,875
Los Angeles County Capital Asset Leasing Corp.
LOC WestDeutsche Landesbank, Gironzentrale,
Bayerische Landesbank, Gironzentrale, CP:
3.40% 4/6/98 4,700 4,700
3.40% 4/7/98 3,300 3,300
3.45% 4/8/98 7,600 7,600
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Los Angeles County Gen. Oblig. TRAN Series A,
4.50% 6/30/98 $ 46,045 $ 46,142
Los Angeles County Ind. Dev. Auth. (Caitac & Jae Proj.) 3.65%,
LOC Union Bank of California, VRDN (b) 1,285 1,285
Los Angeles County Local Edl. Agcy. Ctfs. of Prtn. TRAN
Series B, 4.50% 9/30/98 3,500 3,518
Los Angeles County Metropolitan Trans. Auth.:
Participating VRDN (c):
Series 1998E, 3.40% (Liquidity Facility Corestates Bank) 7,600
7,600
Series SG-54, 3.41% (Liquidity Facility Societe Generale) 1,400
1,400
Series SGB-2, 3.40% (Liquidity Facility Societe Generale) 19,350
19,350
Series SGB-3, 3.40% (Liquidity Facility Societe Generale) 5,200
5,200
Series A, 3.70% 3/6/98 LOC Bayerische
Landesbank Gironzentrale, Canadian Imperial
Bank of Commerce, CP 4,000 4,000
Los Angeles County Multi-Family Hsg. Rev., VRDN:
(Malibu Meadows Proj.) Series 1991 A, 4.20%,
LOC Sumitomo Bank Ltd. 8,511 8,511
(Malibu Meadows II Proj.) Series 1991 B, 4.20%,
LOC Sumitomo Bank Ltd. 3,800 3,800
(Meadowridge Apt. Proj.) Series 1994 B, 3.50%
(Continental Casualty Co. Guaranteed) 1,400 1,400
Los Angeles County Unified School Dist. TRAN
4.50% 10/1/98 4,500 4,522
Los Angeles Dept. of Arpt. Rev. Rfdg. (Los Angeles Int'l. Arpt.)
Series A, 4% 5/15/98 4,165 4,167
Los Angeles Gen. Oblig. TRAN 4.50% 6/30/98 11,200 11,223
Los Angeles Hbr. Dept. Participating VRDN (c):
Series 1996 B, 3.55% (BPA Bank of New York) (b) 11,185 11,185
Series SG-59, 3.41% (Liquidity Facility Societe Generale)
(MBIA Insured) (b) 4,725 4,725
Los Angeles Ontario Intl. Arpt. Participating VRDN,
Series SG-61, 3.41% (Liquidity Facility Societe
Generale France) (b)(c) 1,400 1,400
Los Angeles Unified School Dist. TRAN Series 1997-98,
4.50% 7/1/98 6,800 6,814
Los Angeles Wastewtr. Rev. Participating VRDN, Series SGA-26,
3.35% (Liquidity Facility Societe Generale) (c) 1,000 1,000
Los Angeles Wastewtr. Sys. Rev. LOC Morgan Guaranty
Trust Co., NY, Union Bank of Switzerland, CP:
3.70% 3/6/98 1,900 1,900
3.40% 4/8/98 7,500 7,500
3.45% 5/12/98 4,200 4,200
Los Rios Commty. College Dist. TRAN 4.75% 12/30/98 6,500 6,560
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Monterey Ind. Dev. Auth. Rev. (Slautterback Corp. Proj.)
Series 1996 A, 3.25%, LOC Bayerische
Vereinsbank, VRDN (b) $ 1,350 $ 1,350
Northern California Pwr. Transmission Agcy.
Participating VRDN, Series 1998 3.45%,
(MBIA Insured) LOC Bank of New York, NA (c) 4,000 4,000
Oceanside Multi-Family Hsg. Rev. (Lakeridge Apt. Proj.)
Series 1994, 3.45% (Continental Casualty Co.
Guaranteed) VRDN 6,700 6,700
Orange County Apt. Dev. Rev.:
Participating VRDN (c):
Series JT 1996 A, 3.56%, LOC Citibank (b) 6,100 6,100
Series JT 1996 B, 3.46%, LOC Citibank 6,700 6,700
VRDN:
(Alicia Viego Proj.) Series 1986 A, 3.65%,
LOC Bank of Tokyo-Mitsubishi, Ltd. (b) 1,845 1,845
(Foothill Oaks Apts. Proj.) Series 1989 B, 3.30%,
LOC Bank of America NT & SA (b) 610 610
(Hidden Hills Apts.) Series 1985 U-C, 3.30%,
LOC Chase Manhattan Bank 7,100 7,100
(Monarch Bay Apt. Proj.) Series 1985 T, 3.50%,
LOC Bank of Tokyo-Mitsubishi Bank, Ltd. 8,400 8,400
(Vista Verde Apt. Proj.) Series 1988 A, 3.20%,
LOC Wells Fargo Bank, NA (b) 4,200 4,200
(Wood Canyon Villas) Issue 1991 B, 3.15%,
LOC Bank of America NT & SA (b) 3,500 3,500
(Yorba Linda Assoc.) Series 1985 D, 3.75%,
LOC Bank of Tokyo-Mitsubishi, Ltd. 4,000 4,000
Orange County Hsg. Auth. Apt. Dev. Rev.
(Costa Mesa Partners) Series 1985-BB, 3.20%,
LOC Chase Manhattan Bank, VRDN 4,400 4,400
Orange County Ind. Dev. Rev. (Control Air
Conditioning Corp.) Series 1997, 3.50%,
LOC California Teachers Retirement Sys., VRDN 1,000 1,000
Orange County Local Trans. Auth. Participating VRDN,
Series 1997, 3.45% (Liquidity Facility Bank of
New York, NA) (c) 1,000 1,000
Oxnard Redev. Agcy. Ctfs. of Prtn. (Channel Islands Bus. Ctr. Proj.)
3.725%, LOC Wells Fargo Bank of San Francisco, VRDN 3,195 3,195
Palm Springs Ctfs. of Prtn. Commty. Redev. Agcy. Rev.
(Headquarters Hotel Proj.) Series 1984 II, 3.15%,
LOC Citibank, VRDN 1,400 1,400
Pittsburg Multi-Family Hsg. Auth. Rev. (Fountain Plaza Apt.)
3.45% (FNMA Guaranteed) VRDN 8,200 8,200
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Pleasant Hill Redev. Agcy. Multi-Family Hsg. Rev.
(Chateau III Proj.) Series 1996 A, 3.30%,
LOC Commerzbank, Germany, VRDN (b) $ 800 $ 800
Redondo Beach Redev. Agcy. Multi-Family Hsg. Rev.
(McCandless Senior Hsg. Proj.) Series 1995 A, 3.30%,
LOC Comerica Bank of Detroit, VRDN 3,500 3,500
Riverside County Gen. Oblig. TRAN 4.50% 6/30/98 3,800 3,807
Riverside County Hsg. Auth. (Polk Apt. Proj.)
Series 1985 O, 2.95%, VRDN 2,200 2,200
Riverside County Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
(Tyler Village Proj.) Series 1986 A 3.10%,
LOC Chase Manhattan Bank (b) 3,060 3,060
(Victoria Springs Apts.) Series 1989 C, 3.10%,
LOC Bank of America (b) 2,500 2,500
Riverside County Ind. Dev. Auth. (Merrick Engineering, Inc.)
3.50%, LOC Wells Fargo Bank, NA, VRDN (b) 1,000 1,000
Sacramento County Arpt. Sys. Rev. Participating VRDN,
Series SGA-33, 3.35% (Liquidity Facility Societe
Generale, France) (c) 3,100 3,100
Sacramento County Gen. Oblig. TRAN 4.50% 9/30/98 2,600 2,611
Sacramento Hsg. Auth. Multi-Family Hsg. Rev.
(Chesapeake Commons Holdings, Inc.) Series 1997 A,
3.25%, LOC Bank One, Arizona, NA, VRDN (b) 5,000 5,000
Sacramento Muni. Util. Dist. Participating VRDN, Series SGB-4,
3.40% (Liquidity Facility Societe Generale) (c) 4,000 4,000
San Bernardino County Hsg. (Alta Park Apts.) Series P, 4.10%,
LOC Sumitomo Bank, Ltd., VRDN 3,700 3,700
San Diego County Wtr. Auth. Series 1, 3.40% 4/9/98
(Liquidity Facility Bayerische Landesbank Girozentrale) CP 2,600
2,600
San Diego Gas & Elec. Participating VRDN (c):
Series 1992 A, 3.45% (Liquidity Facility Bank of New York) 5,000
5,000
Series 1997, 3.45% (Liquidity Facility Bank of New York) 2,000
2,000
San Diego Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Coral Pointe Apt. Proj.) Series 1993A, 3.50%
(Continental Casualty Guaranteed) 3,265 3,265
(Carmel Del Mar Apt. Proj.) Series 1993-E, 3.15%,
LOC Citibank 3,000 3,000
(Paseo Point Apt.) Series 1994 A, 3.10%,
LOC Bank of Tokyo-Mitsubishi, Ltd. 4,600 4,600
San Diego Ind. Dev. Rev. Rfdg. Board Bonds
(San Diego Gas & Elec. Co.) Series 1995A,
3.45% 3/6/98, CP mode 9,050 9,050
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
San Diego Regional Trans. Commty. Sales Tax Rev.
Participating VRDN, Series BTP-185, 3.40%
(Liquidity Facility Bankers Trust Company, NY) (c) $ 3,000 $ 3,000
San Francisco City & County Arpts. Commission Series 1997A,
3.55% 5/7/98 LOC Bayerische Landesbank Girozentrale,
Morgan Guaranty Trust Co., NY, CP (b) 5,000 5,000
San Francisco City & County Int'l. Arpt. Commty. Series A,
3.40% 5/7/98 LOC Bayerische Landesbank Girozentrale,
Morgan Guaranty Trust Co., NY, CP (b) 2,400 2,400
San Francisco City & County Parking Meter Rev.
Participating VRDN, Series 1996 A, 3.36%
(Liquidity Facility Bank of America NT & SA) (c) 2,900 2,900
San Francisco City & County Participating VRDN (c):
Series 1996 AA1, 3.46% (Liquidity Facility Bank of America) 3,775
3,775
Series 1996 AA2, 3.46% (Liquidity Facility Bank of America) 2,240
2,240
San Francisco City & County Redev. Prog. Participating VRDN,
Series 1997T, 3.46% (Liquidity Facility Caisse des
Depots et Consigns) (c) 1,560 1,560
San Jose Multi-Family Hsg. Rev., VRDN:
(Almaden Lake Village Apt. Assoc.) Series 1997 A, 3.20%,
LOC Bank of America (b) 2,800 2,800
(Siena At Renaissance) Series 1996 B, 3.20%,
LOC Key Bank (b) 5,000 5,000
San Jose Redev. Agcy. Participating VRDN, Series PA-42I,
3.36% (Liquidity Facility Merrill Lynch) (c) 3,400 3,400
San Leandro Multi-Family Hsg. Rev. (Carlton Plaza) 3.30%,
LOC Commerzbank, AG, VRDN (b) 3,220 3,220
San Luis Obispo Gen. Oblig. TRAN 4.50% 7/8/98 1,500 1,503
Santa Barbara Schools Fing. Auth. TRAN Series 1997,
4.25% 6/30/98 5,500 5,507
Santa Clara County Gen. Oblig. TRAN 4.75% 10/1/98 7,200 7,245
Santa Rosa Multi-Family Hsg. (Quail Run Apts.) Series 1997 A,
3.30%, LOC U.S. Bank of Washington, VRDN (b) 1,750 1,750
Simi Valley Multi-Family Hsg. Rev. (Lincoln Wood Ranch Apt.)
4.20%, LOC Sumitomo Bank, Ltd., VRDN 4,200 4,200
Southern California Metropolitan Wtr. Dist.:
Series A, 3.30% 4/3/98, CP 1,000 1,000
Series B, CP:
3.30% 4/3/98, (Liquidity Facility Westdeutsche
Landesbank Gironzentrale) 4,000 4,000
3.40% 4/6/98 (Liquidity Facility Westdeutsche
Landesbank Gironzentrale) 1,000 1,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Southern California Metropolitan Wtr. Dist.: - continued
Participating VRDN (c):
Series SG-35, 3.38% (Liquidity Facility Societe
Generale, France) $ 7,300 $ 7,300
3.10% (Liquidity Facility Morgan Guaranty Trust, NY) 4,945 4,945
Torrance Hospital Rev. (Little Co. of Mary Hosp.-
Torrance Mem. Med Ctr.) Series 1992, 3.25%,
LOC Chase Manhattan Bank, VRDN 4,000 4,000
University of California Rev.:
Rfdg. Participating VRDN, Series 1997 G, 3.40%
(Liquidity Facility Corestates Bank) (c) 13,430 13,430
Series A, 3.65% 4/8/98, CP 7,500 7,500
Vallejo Ind. Dev. Auth. Rev. (Meyer Cookware Industries)
Series 1993B, 3.80%, LOC Bank of
Tokyo-Mitsubishi, VRDN (b) 4,400 4,400
Vallejo Multi-Family Hsg. Rev. (Hillside Terrace Apts.)
Series 1997 A, 3.40% (FNMA Guaranteed) VRDN (b) 3,725 3,725
Vista Ind. Dev. Auth. Rev. (Desalination Sys., Inc.)
Series 1995, 3.50%, LOC Wells Fargo Bank, VRDN (b) 1,780 1,780
950,263
FLORIDA - 0.1%
Florida Capital Proj. Fin. Auth. (Capital Proj. Loan Prog.)
Series 1997-A, 3.35% (FSA Insured)
(BPA Credit Suisse First Boston) VRDN 1,000 1,000
PUERTO RICO - 1.5%
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.
Participating VRDN, Series SGA-43, 3.35%
(Liquidity Facility Societe Generale France) (c) 3,800 3,800
Puerto Rico Infrastructure Fin. Auth.
Participating VRDN, Series 1997 A, 3.30%
(Liquidity Facility Corestates Bank) (c) 5,000 5,000
Puerto Rico Pwr. Auth. Rev. Participating VRDN,
Series SGA-44, 3.35% (Liquidity Facility
Societe Generale France) (c) 6,100 6,100
14,900
TOTAL INVESTMENTS - 100% $ 966,163
Total Cost for Income Tax Purposes $ 966,163
SECURITY TYPE ABBREVIATIONS
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
2. Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
3. 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.
(unaudited) During fiscal year ended 1998, 100% of the fund's income
dividends was free from federal income tax, and 35.03% of the fund's
income dividends was subject to the federal alternative minimum tax.
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS(EXCEPT PER-SHARE AMOUNT) FEBRUARY 28, 1998
ASSETS
INVESTMENT IN SECURITIES, AT VALUE - $ 966,163
SEE ACCOMPANYING SCHEDULE
CASH 2,960
INTEREST RECEIVABLE 8,227
TOTAL ASSETS 977,350
LIABILITIES
PAYABLE FOR INVESTMENTS PURCHASED $ 1,005
DISTRIBUTIONS PAYABLE 23
ACCRUED MANAGEMENT FEE 309
OTHER PAYABLES AND ACCRUED EXPENSES 232
TOTAL LIABILITIES 1,569
NET ASSETS $ 975,781
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 976,254
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (473)
NET ASSETS, FOR 976,275 SHARES OUTSTANDING $ 975,781
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($975,781 (DIVIDED BY) 976,275 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED FEBRUARY 28, 1998
INTEREST INCOME $ 31,377
EXPENSES
MANAGEMENT FEE $ 3,355
TRANSFER AGENT FEES 1,598
ACCOUNTING FEES AND EXPENSES 145
NON-INTERESTED TRUSTEES' COMPENSATION 4
CUSTODIAN FEES AND EXPENSES 38
REGISTRATION FEES 75
AUDIT 45
LEGAL 20
REPORTS TO SHAREHOLDERS 29
MISCELLANEOUS 3
TOTAL EXPENSES BEFORE REDUCTIONS 5,312
EXPENSE REDUCTIONS (9) 5,303
NET INTEREST INCOME 26,074
NET REALIZED GAIN (LOSS) ON INVESTMENTS (15)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 26,059
OTHER INFORMATION $ 9
EXPENSE REDUCTIONS
CUSTODIAN CREDITS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
FEBRUARY 28, FEBRUARY 28,
1998 1997
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 26,074 $ 21,215
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) (15) (11)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 26,059 21,204
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (26,074) (21,215)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 3,543,308 2,802,873
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 25,455 20,628
COST OF SHARES REDEEMED (3,412,672) (2,736,308)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 156,091 87,193
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 156,076 87,182
NET ASSETS
BEGINNING OF PERIOD 819,705 732,523
END OF PERIOD $ 975,781 $ 819,705
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED YEAR ENDED YEARS ENDED
FEBRUARY 28, FEBRUARY 29, FEBRUARY 28,
1998 1997 1996 1995 1994
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD
INCOME FROM INVESTMENT .030 .029 .032 .026 .020
OPERATIONS
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST INCOME (.030) (.029) (.032) (.026) (.020)
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 3.07% 2.90% 3.21% 2.60% 1.97%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD $ 976 $ 820 $ 733 $ 675 $ 612
(IN MILLIONS)
RATIO OF EXPENSES TO AVERAGE .62% .62% .64% .62% .64%
NET ASSETS
RATIO OF EXPENSES TO AVERAGE .61% B .61% B .64% .62% .64%
NET ASSETS AFTER EXPENSE
REDUCTIONS
RATIO OF NET INTEREST INCOME TO 3.02% 2.86% 3.17% 2.58% 1.95%
AVERAGE NET ASSETS
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
B 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 5 OF NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1998
1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan California Municipal Income Fund (the income fund)(formerly
Fidelity California Municipal 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 permit management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the income fund and
the money market funds:
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 original issue discount, is accrued as
earned. For the money market funds, accretion of market discount
represents unrealized gain until realized at the time of a security
disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
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.
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 interest 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. The payables and receivables associated with
the purchases and sales of when-issued securities having the same
settlement date and broker are offset. When-issued securities that
have been purchased from and sold to different brokers are reflected
as both payables and receivables in the applicable statements of
assets and liabilities under the caption "Delayed delivery." Losses
may arise due to changes in the market value of the underlying
securities, if the counterparty does not perform under the contract,
or if the issuer does not issue the securities due to political,
economic, or other factors.
FUTURES CONTRACTS. The 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
2. OPERATING POLICIES - CONTINUED
FUTURES CONTRACTS - CONTINUED
contracts involve, to varying degrees, risk of loss in excess of the
futures variation margin reflected in the Statement of Assets and
Liabilities. The underlying face amount at value of any open futures
contracts at period end is shown in the schedule of investments under
the caption "Futures Contracts." This amount reflects each contract's
exposure to the underlying instrument at period end. Losses may arise
from changes in the value of the underlying instruments or if the
counterparties do not perform under the contracts' terms. Gains
(losses) are realized upon the expiration or closing of the futures
contracts. Futures contracts are valued at the settlement price
established each day by the board of trade or exchange on which they
are traded.
RESTRICTED SECURITIES. Certain funds are permitted to invest in
securities that are subject to legal or contractual restrictions on
resale. These securities generally may be resold in transactions
exempt from registration or to the public if the securities are
registered. Disposal of these securities may involve time-consuming
negotiations and expense, and prompt sale at an acceptable price may
be difficult. Information regarding restricted securities is included
under the caption "Other Information" at the end of each applicable
fund's schedule of investments.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $420,736,000 and $321,638,000, respectively.
The market value of futures contracts opened and closed during the
period amounted to $166,635,000 and $125,405,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the investment adviser for the income fund and
Fidelity California Municipal Money Market Fund, FMR receives a
monthly fee that is calculated on the basis of a group fee rate plus a
fixed individual fund fee rate applied to the average net assets of
each fund. The group fee rate is the weighted average of a series of
rates and is based on the monthly average net assets of all the mutual
funds advised by FMR. The rates ranged from .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
fees were equivalent to annual rates of .39% of average net assets for
the income fund and Fidelity California Municipal Money Market Fund.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
As the investment advisor 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
$16,000 for the period.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser,
Fidelity Investments Money Management, Inc. (formerly FMR Texas,
Inc.), a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian and transfer and shareholder servicing agent for Spartan
California Municipal 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 annual
rates of .10% and .19% of average net assets for Spartan California
Municipal Income Fund and Fidelity California Municipal Money Market
Fund, respectively.
Fidelity California Municipal Money Market Fund shareholders
participating in the Fidelity Ultra Service Account(registered
trademark) Program (the Program) paid a $5.00 monthly fee to Fidelity
Brokerage Services, Inc. (FBSI), an affiliate of FMR, for performing
services associated with the Program. For the period, fees paid to
FBSI by shareholders participating in the Program amounted to $45,000.
Effective September 1, 1997, the monthly fee was eliminated.
5. EXPENSE REDUCTIONS.
INCOME FUND. Effective April 1, 1997, FMR voluntarily agreed to
reimburse the income fund's operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above an
annual rate of .55% of average net assets. Effective August 15, 1997,
this
5. EXPENSE REDUCTIONS - CONTINUED
INCOME FUND - CONTINUED
limitation was reduced to .53% through December 31, 1999. The amount
of reimbursement during the period is included under the caption
"Other Information" on the fund's statement of operations.
MONEY MARKET FUNDS. FMR voluntarily agreed to reimburse Spartan
California Municipal Money Market Fund's operating expenses (excluding
interest, taxes, brokerage commissions and extraordinary expenses)
above a specified percentage of average net assets. During the period
this expense limitation ranged from .35% to .45% of average net
assets. The amount of reimbursement during the period is included
under the caption "Other Information" on the fund's statement of
operations. Effective August 1, 1997, the fund's expense limitation
was eliminated.
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 each applicable fund's
expenses. For the period, the reductions under these arrangements are
shown under the caption "Other Information" on each applicable fund's
Statement of Operations.
6. SHARE TRANSACTIONS.
Share transactions for the income fund were as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SHARES DOLLARS SHARES DOLLARS
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
FEBRUARY 28, FEBRUARY 28, FEBRUARY 28, FEBRUARY 28,
AMOUNTS IN THOUSANDS 1998 1998 1997 1997
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SHARES SOLD 15,402 $ 186,579 5,878 $ 68,032
ISSUED IN EXCHANGE FOR THE NET 33,067 398,129 - -
ASSETS OF SPARTAN CALIFORNIA
MUNICIPAL INCOME FUND
ISSUED IN EXCHANGE FOR THE NET 5,773 69,510 - -
ASSETS OF SPARTAN CALIFORNIA
INTERMEDIATE MUNICIPAL
INCOME FUND
ISSUED IN EXCHANGE FOR THE NET 16,576 199,247 - -
ASSETS OF FIDELITY
CALIFORNIA INSURED MUNICIPAL
INCOME FUND
REINVESTMENT OF DISTRIBUTIONS 2,641 31,993 1,542 17,867
SHARES REDEEMED (14,378) (173,840) (8,759) (101,203)
NET INCREASE (DECREASE) 59,081 $ 711,618 (1,339) $ (15,304)
</TABLE>
7. 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.
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.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity California Municipal Trust and Fidelity
California Municipal Trust II and the Shareholders of Spartan
California Municipal Income Fund (formerly Fidelity California
Municipal Income Fund), Spartan California Municipal Money Market Fund
and Fidelity California Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for Moody's and
Standard & Poor's ratings), and the related statements of operations
and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Spartan
California Municipal Income Fund (formerly Fidelity California
Municipal Income Fund) (a fund of Fidelity California Municipal Trust)
and Spartan California Municipal Money Market Fund and Fidelity
California Municipal Money Market Fund (each a fund of Fidelity
California Municipal Trust II) at February 28, 1998, the results of
their operations for the year then ended, and the changes in their net
assets and the financial highlights for the periods indicated, in
conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to
as "financial statements") are the responsibility of the Fidelity
California Municipal Trust and Fidelity California Municipal Trust
II's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of securities at February 28, 1998 by
correspondence with the custodian and the application of alternative
auditing procedures where securities purchased were not yet received
by the custodian, provide a reasonable basis for the opinion expressed
above.
Price Waterhouse LLP
Boston, Massachusetts
April 3, 1998
DISTRIBUTIONS
The Board of Trustees of Spartan California Municipal Income Fund (a
fund of Fidelity Municipal Trust) voted to pay to shareholders of
record at the opening of business on record date, the following
distributions derived from capital gains realized from sales of
portfolio securities, and dividends derived from net investment
income:
PAY DATE 4/6/98
RECORD DATE 4/3/98
DIVIDENDS -
SHORT-TERM
CAPITAL GAINS -
LONG-TERM
CAPITAL GAINS $0.024
LONG-TERM
CAPITAL GAIN BREAKDOWN:
28% rate -
20% rate 100%
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate
the service, and on your first call, the system will help you create a
personal identification number (PIN) for security.
SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
0
*
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at
1-800-544-7272 for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools... all on your desktop. Call Fidelity at
1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND,
EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS
THAT YOU MAY HAVE A GAIN
OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY
MARKET FUNDS WILL BE ABLE TO
MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND
IS NOT INSURED OR
GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY
SALES CHARGES.
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
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
4001 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
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
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
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER, MONEY MARKET FUND
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 Greer, Vice President -
MONEY MARKET FUNDS
Dwight D. Churchill, Vice President -
INCOME FUND
Diane McLaughlin, Vice President -
MONEY MARKET FUNDS
Jonathan D. Short, Vice President -
INCOME FUND
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress 1-800-544-5555
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AUTOMATED LINE FOR QUICKEST SERVICE
